PRESENTATION AND THE SELLING PERSONALITY Aim …

PRESENTATION AND THE SELLING PERSONALITY

AimExplain the importance of first impressions and learn how to develop a selling personality.

PRESENTATIONFirst impressions count! Think of the last time you were approached by a salesperson/salesrepresentative who looked untidy and badly groomed. What did it say to you about the personand the product they were trying to sell you?

Your clothes, your dress and your manner, leave an instant first impression. Most people willmake their mind up about a person within the first few seconds they meet them. Questionsrunning through their mind are likely to include: “Is this person trustworthy? Do I like them?Are they like me?”

If you went to a store to buy a set of smart work clothes for example, how would you feel if theshop assistant was dressed in torn jeans, was unshaven and had a dirty and crumpled shirt?You would probably question their ability to help you select an appropriate outfit. You wouldprobably also question whether the store itself was an appropriate choice for your purchases.A salesperson who is badly dressed or groomed, tells you they have little or no respect forthemselves, or their product, or the company they represent.

Presenting yourself appropriately in a sales situation is an essential ingredient in a successfulsales career. The prospective buyer gets clues about you from your head movements, facialexpressions, voice, gestures, posture and clothing. The foundations of good presentation areset by being well groomed, appropriately dressed, having a positive confident demeanour,speaking slowly/clearly, and making good eye contact with the prospective buyer.

PERSONALITYPsychology tells us that a lot of information is gained on a person’s first impression, and theseimpressions can be hard to break, so make sure you make a good one!

The dictionary's definition of personality is "the outward character, temperament and identity ofa character". A person’s personality is the way in which an individual represents themselves toothers. Your personality will determine whether someone will like or dislike you. It is importantto remember that personality is not necessarily a reflection of your inner self. It is merely anoutward representation - your “public face”.

Psychologists have identified basic and opposing personality traits: Intuition - sensing Thinking - feeling Perceiving - judging

These personality traits are overlaid with an introverted or extroverted dimension. Introvertedpersons tend to make decisions independent of constraints or prodded by the situation,culture, people or other things around them. Persons who are extroverted are attuned toculture, people and things around them, and endeavour to make decisions congruent withdemands and expectations.

As a sales person, it is important to understand your own personality type. This is becauseyour job depends to a large extent upon the way in which you interact with and are able to

influence your prospects. By understanding your own personality type, you’ll be able tounderstand how you may appear to your prospects. It may also offer you the opportunity tochange or adapt your personality, as psychologists have said that humans can alter their livesby altering their attitude of mind.

Some personality types tend to suit a sales career better than others.A sales personality is one that builds friendship and understanding with the greatest number ofprospective buyers or customers. It is often one which is more extroverted and attuned topeople’s feeling and emotions. It is important to remember that it is possible to modify yourpersonality. The first step though, is to understand your current personality type and whether itis naturally attuned to a career in sales – a sales personality.

PERSONAL STYLE INVENTORYEvery person has differently shaped feet and toes. We all have differently "shaped"personalities. Just as no person's foot shape is "right" or "wrong"; no person's personality"shape" is right or wrong.

The purpose of this inventory is to give you a picture of the "shape" of your own personality.(NB: This is a quite different thing to mental health, or mental problems)

The following items are arranged in pairs (A & B), and each member of the pair represents apreference you may or may not hold. Rate your preference for each item by giving it a score of0 to 5 (0 meaning you really feel negative about this -or strongly about the other member ofthe pair.5 means you prefer the first alternative or do not like the other alternative)

The scores of A and B must add up to 5 (eg: 0 for A and 5 for B, 3 for A and 2 for B etc.)Do not use fractions for any score such as 2.5.

I prefer:

1a making decisions after finding out what others think.1b making decisions without consulting others.

2a being called imaginative or intuitive.2b being called factual or accurate.

3a making decisions about other people in organizations based onavailable data & systematic analysis of situations.

3b making decisions about people in organizations based on empathy,feelings and an understanding of their needs & values.

4a allowing commitments to occur if others want to make them.4b pushing for definite commitments to ensure that they are made.

5a quiet, thoughtful, time alone.5b active, energetic time with other people.

6a using methods I know well that are effective, to get the job done.6b trying to think of new methods of doing tasks when confronted

with them.

7a drawing conclusions based on unemotional logic and step by stepanalysis.

7b drawing conclusions based on what I feel and believe about life, andpeople from past experiences.

8a avoiding making deadlines8b setting a schedule & sticking to it.

9a talking a while, and then thinking to myself about a subject.9b talking freely for an extended period, and thinking to myself at a

later time.

10a thinking about possibilities10b dealing with actualities.

11a being thought of as a thinking person.11b being thought of as a feeling person.

12a considering every possible angle for a long time before andafter making a decision.

12b getting the information I need, considering it for a while,and then making a fairly quick, firm decision.

13a inner thoughts & feelings others cannot see.13b activities and occurrences in which others join.

14a the abstract or theoretical14b the concrete or real.

15a helping others explore their feelings.15b helping others make logical decisions.

16a change and keeping options open16b predictability & knowing in advance.

17a communicating little of my inner thinking & feelings.17b communicating freely my inner thinking & feelings.

18a possible views of the whole.18b the factual details available.

19a using common sense and conviction to make decisions.19b using date, analysis & reason to make decisions.

20a planning ahead based on projections.20b planning as necessities arise, just before carrying out the plans.

21a meeting new people.21b being alone with one person I know well.

22a ideas

22b facts

23a convictions23b verifiable conclusions.

24a keeping appointments and notes about commitments in notebooks orin appointment books as much as possible.

24b using appointment books and note books as little as possible.

25a discussing a new, unconsidered issue at length in a group.25b puzzling out issues in your mind, then sharing your conclusions

with another person

26a carrying out carefully laid, detailed plans, with precision.26b designing plans and structures without necessarily carrying

them out.

27a logical people27b feeling people.

28a being free to do things on the spur of the moment.28b knowing well in advance what you are expected to do.

29a being the centre of attention.29b being reserved.

30a imagining the nonexistent30b examining details of the actual

31a experiencing emotional situations, discussions, movies.31b using your ability to analyze situations

32a starting meetings at a prearranged time.32b starting meetings when everyone is comfortable & ready.

PERSONAL STYLE INVENTORY SCORING SHEETInstructions: Transfer your scores for each pair to the appropriate blanks. Be sure to doublecheck a and b scores to see they are in the right places.Then total the scores for each dimension.

Dimension I Dimension E Dimension N Dimension P

1b 1a 2a 4a

5a 5b 6b 8a

9a 9b 10a 12a

13a 13b 14a 16a

17a 17b 18a 20b

21b 21a 22a 24b

25b 25a 26b 28a

29b 29a 30a 32b

TOTAL I = TOTAL E = TOTAL N = TOTAL P =

Dimension S Dimension T Dimension F Dimension J

2b 3a 3b 4b

6a 7a 7b 8b

10b 11a 11b 12b

14b 15b 15a 16b

18b 19b 19a 20a

22b 23b 23a 24a

26a 27a 27b 28b

30b 31b 31a 32a

TOTAL S = TOTAL T = TOTAL F = TOTAL J =

INTERPRETATION OF THE PERSONAL STYLE INVENTORY

The letters on the score sheets stand for:I - introversionE - extroversionN - intuitionS - sensingT - thinkingF - feelingP - perceivingJ - judging

These eight categories go together in pairs which are opposing characteristics.1. Introversion & extroversion.2. Intuition & sensing.3. Thinking & feeling.4. Perceiving & judging.

If your score is: The likely interpretation is:

20-21 balance in strengths of the dimensions

22-24 some strengths & some weaknesses

25-29 definite strength in that dimension, definiteweakness in its opposite.

30-40 considerable strength in that dimension butweakness in its opposite.

All people have all eight characteristics (as above) to some degree, but may have strengths orextreme leanings towards some more than others

Introversion-ExtroversionPersons who are more introverted than extroverted tend to make decisions somewhatindependently of constraints or prodding by the situation, culture, people or other thingsaround them. They are quiet and diligent at working alone, and socially reserved. They maydislike being interrupted while working and may tend to forget names and faces.

Persons who are extroverted are attuned to culture, people and things around them,endeavouring to make decisions congruent with demands and expectations. The extrovert isoutgoing, socially free, interested in variety and working with people. They become impatientwith long, slow tasks and do not mind being interrupted by people.

Intuition-SensingThe intuitive person prefers possibilities, theories, gestalts, the overall, invention, and becomesbored with nitty gritty details, the concrete and actual and bored with facts which are unrelatedto the topic being dealt with at a particular time.

The intuitive person thinks & discusses in spontaneous leaps of intuition that may leave out or

neglect details. Problem solving becomes easy for this individual, although there may be atendency to make errors when dealing with facts.

The sensing type prefers the concrete, real, factual, structured, and tangible here and now.They become impatient with theory and the abstract.The sensing type thinks in careful, detail by detail accuracy, remembering real facts, makingfew errors of fact but possibly missing the broad perception of a subject.

Feeling-ThinkingThe feeler makes judgments about things based on empathy, warmth & personal values. As aconsequence, feelers are more interested in people and feelings than in impersonal logic oranalysis. They are more interested in conciliation and harmony than in being on top. The feelergets along with most other types of people.

The thinker makes judgments about things based on logic, analysis and evidence; avoidingirrational influences. As a result, the thinker is more interested in logic, analysis and verifiableconclusions. The thinker may upset other people by not giving proper considerations to theiropinions or feelings.

Perceiving-JudgingThe perceiver is a gatherer, always wanting to know more before deciding, holding offdecisions & judgments. As a consequence, the perceiver is open, flexible, adaptive, non-judgmental, able to see and appreciate all sides of issues, always welcoming newperspectives and new information about issues. Perceivers however are always difficult to pindown and can be indecisive. They become involved in so many different tasks they nevercomplete any and cause frustration to those around them.

The judger is decisive, firm & sure, setting goals and sticking to them. The judger wants tocomplete tasks and move on. When a task is slow at being completed, the judger will move onto the next task, and come back to the earlier one when it is ready to be finalized.

STRENGTHS & WEAKNESSES OF THE DIFFERENT TYPES

Possible Strengths Possible Weaknesses

IntrovertIndependent Misunderstands the externalWorks alone AvoidsIs diligent Is secretiveReflects Loses opportunities to actIs carful if generalisations Needs quiet to workIs careful before acting Dislikes being interrupted

ExtrovertUnderstands the external Has less independenceInteracts with others Does not work without peopleIs open Needs change or varietyTakes firm action Is impulsiveIs well understood Is impatient with routine

IntuitorSees possibilities Is inattentive to detailSees gestalts Is inattentive to the practicalImagines Is impatient with tedious thingsWorks out new ideas Takes leaps in logicWorks with the complicated Looses sight of the here and nowSolves novel problems Jumps to conclusions

SenserAttends to detail Does not see possibilitiesIs practical Looses the overall in detailHas memory for details and facts Mistrusts intuitionIs patient Does not work out the newIs careful and systematic Prefers not to imagine the future

FeelerConsiders others feelings Is not guided by logicUnderstands needs and values Is not objectiveIs interested in conciliation Is less organisedDemonstrates feeling Is uncritical and overly acceptingPersuades and arouses Bases justice on feelings

ThinkerIs logical and analytical Doesn’t notice peoples feelingsIs objective Misunderstands others valuesIs organised Is not interested in conciliationHas critical ability Does not show feelingsIs just Shows less mercyStands firm Is uninterested in persuading

PerceiverCompromises Is indecisive

Sees all sides of issues Does not planIs flexible and adaptable Has no orderRemains open to change Does not control circumstancesMakes decisions based on data Is easily distracted by tasksIs not judgmental Does not finish projects

Possible Strengths Possible Weaknesses

JudgerDecides Is stubbornPlans Is inflexible and inadaptableGives orders Decides with insufficient dataMakes quick decisions Is controlled by task or plansSticks with the task at hand Will not interrupt work

SOME GENERALIZATIONS People who have the same strengths & weaknesses generally get on well together. People who have different strengths to each other frequently do not see eye to eye. People are likely to be sensitive to criticism in the areas of their weaknesses. People's values, beliefs, decisions & actions are more affected by the four stronger

dimensions (ie: extroversion, sensing, feeling & judging) A person's type cannot be changed to its opposite, but it is possible to strengthen one's

weaknesses.

IMPLICATIONS Organizations, groups etc. who have members whose strengths are mainly the one type,

should seek and listen to people with strengths which are different. People should recognize that different beliefs & attitudes are a result of differences in

personality style rather than being a case of right & wrong. When people out of necessity need to interact with certain other individuals frequently (eg.

members of the family, work mates etc.), interactions can be much more congenial if thoseinvolved recognize differences in personality types involved and adjust to the personalitiesthey are dealing with.

When dealing with other people, be careful to label values as being values and notrepresent them as hard cold facts - that can cause conflict.

THE SELLING PERSONALITYThere are a number of traits that assist in the creation of a natural seller:

CheerfulnessSalespeople who are always cheerful (or behave that way) are most appealing to buyers. No-one wants the company of complaining or depressing people. Buyers certainly don’t want tohear about a salesperson’s bad day or headache.

StrengthKnowledge and confidence give strength. Buyers instinctively know if a salesperson is strongor not. A stronger salesperson will be firm in standing by their company and will refuse toconcede to unfair demands from the buyer. A salespersons appearance and the way theycarry themselves will also contribute to their perceived strength. Always dress smartly and

never slouch. Remember that the buyer forms an impression of the salesperson in a matter ofseconds. Excellent grooming and coming across confidently are still signs of a good businessperson, and that gets the salesperson instant respect.Other factors that indicate strength are: Enthusiasm Admitting mistakes No boasting Asking for advice from competent others. (People warm to those who ask them advice). Never criticizing unless it is absolutely essential. When someone invites you to criticize,

what they are usually asking for is praise (sometimes accompanied by feedback which isdelivered in a positive way).

Judging for yourself, and not relying on others to judge for you.

FriendlinessBuyers can often sense whether friendliness is real or not. A friendly personality is not aboutcharm, but warmth. Other factors indicating friendliness are: Remembering names and pronouncing them correctly. Not trying to be funny all the time. Constantly telling jokes becomes boring, feels forced

and unreal. Tactfulness Giving praise

SincerityThis is about being genuine. Other factors indicating sincerity are: Loyalty Being a good listener Looking at the person you are conversing with. Don’t let your eyes go wandering or the

person you are talking to will know you are not genuinely listening.

Understanding human relations is one of the very best assets a salesperson can have.

COMMUNICATION AND CONVERSATIONAL SELLING

AimExplain the art of written and verbal communication in easy to understand terms.

Communication at its most basic level is the sending and receiving of ideas, thoughts orfeelings. In a verbal communication, it has to do with the use of words, but tone of voice,posture and facial expressions also play a big part in the communication process.Communication can also take the form of a written or visual presentation.

The most import thing to remember about communication is that it doesn’t occur in a vacuum.Communication is a two-way interaction. It has a sender (communicator) and a receiver.Then of course there is the message itself.

The degree to which the received message is aligned to the original intention of the senderdepends in the most part, on the communication skills of the sender.

As a sales person you need to understand that you and you customer will have differentperceptions of the communication that is taking place. This is because your customer hasdifferent experiences and perceptions than you. So you must align your message to yourcustomer.

Selling is the art of persuasion: helping people to buy what you want because they want to.The buyer must truly believe that the product they are about to buy is the best one for theirpurpose. A buyer likes to feel they are making their own decision. It makes them nervous ifthey feel there is an attempt to make them take a particular line of action.

Conversational selling is recognised as the finest form of salesmanship. It is the gentle art ofgiving other people your own way: the most effective way of one person influencing the mindof another.

Communication is not always one-on-one. Sometimes a salesperson will be required toaddress a group of people in a more formal sales situation. Making a sales presentation to agroup of people is often more difficult than a one-to-one interaction. This is because as asales person you may feel nervous when addressing a group of people, rather than just anindividual. Another important consideration is that you need to persuade not just one person,but a group of people, each with their own and differing perceptions and experiences.

Conversational selling is dependant on the understanding and practice of excellentcommunication skills.

WHAT IS COMMUNICATION?Consider the following two definitions of communication:"The process by which information is passed between individuals or organizations, by meansof previously agreed symbols"-from Communications in Business by Peter Little (Longman 1974)

"Communication is the process of detecting, assigning and organizing meanings and values. Itfrequently involves an attempt to transfer such meanings and values to other people in wayswhich will develop response and affect behaviour. It is thus, very often a relating andinteracting process."

-from Handbook of Communication Skills by Tolmie and Tolmie (Prent.Hall)

There are some basic things we can say about communication: It never occurs in a vacuum There needs to be both someone who gives the message and someone who receives the

message. The giver and the receiver deal with personal perceptions They may perceive or interpret the same thing (this is effective communication); or... They may perceive or interpret the message to be other than what was intended (this is

ineffective communication). Items of communication never have fully developed meanings -there are an infinite number

of ways something can be communicated. The meaning will change (or develop) as a message is explained more fully utilizing more

of the ways it can be communicated. Good communication involves interaction. It is not just "A" telling "B" it should also involve

"B" responding, then "A replying to the response. (ie: There should be Feedback).

The following diagram explains the basic pathways involved in communication.

FEEDBACKResponse to

sender.

DESTINATIONReceives, interprets

and responds.

SOURCEInitiates, perceives,interprets, selects

the meaning,sends, responds to

the receiver’sresponses.

TYPES OF COMMUNICATIONCommunication works through the roles people or organizations play.

Communication can occur from: Individual to individual Group to Group Group to Individual Individual to Group

Groups and individuals can have different perceptions of each other; which might be accurateor inaccurate perceptions. An organisation is a system of roles, groups and individualsinteracting with other groups.

Communication can be verbal or non-verbal. Verbal communication involves the use of words:spoken or written. Non-verbal communication involves other signals or messages -pictures,music, body language (The way the body moves or is held).

Many communication experts assign greater importance to non-verbal communication inordinary conversation, than what they assign to verbal communication. Albert Mehrabiansuggests in his book "Communication Without Words" that the following formula is accuratefor the effect of messages in normal conversation:Impact: 7% verbal (What you say)

38% vocal (How you say it)55% facial (The way you move your eyes, raise the eyebrows, smile or frown etc).

MANY DIFFERENT METHODS ARE AVAILABLE FOR COMMUNICATINGThough it is possible to communicate with only one of the following methods, it is more normalto use a combination of two or more. Speaking (in person) Speaking (over radio/TV etc) Video, TV, Film Writing (personal letters, memos, notes etc) Writing (Computers) Writing (impersonal -through print media - books, magazines, newspapers etc) Writing (reports, documents etc) Pictures (drawings, paintings, photos, graphs, diagrams etc). Body language Voice (tone & rhythm etc)

There are of course other methods. Can you think of any?

Any Communication Needs to go Through the Following Stages: Think clearly (about what message you want to get across). Decide on what methods you will employ (to best get the message across). Arrange the message logically (Analyze it... break it into several parts). Express it clearly. Use appropriate language and other methods concisely and effectively.

SELLINGAs already mentioned, there is a big difference between taking an order and actual selling.Although selling is a form of communication, it is a specialized form of communication, soremember these rules.

Rules Be sensitive and alert. Buying can be a big decision for some people; they can be nervous

and sometimes find difficulty expressing themselves. Often all that is needed is to allowpeople time to relax, whilst offering some kind words to put them at ease. Don’t rush them.Hard selling can make a nervous person more nervous.

Describe the product's benefits, not its features. For example, don't say ”this hammerlooks lovely”. You should say “it is heavy duty and will withstand the heaviest work you cangive it”.

Be positive when confronted with opposition. (eg. If you are told your product is rubbish,don't become defensive and say it is not! You should ask "Why is it rubbish?" When youfind out more detail about the objections you might then be able to counter them.)

Maintain control of the conversation.(eg. The customer says this plant looks sick, then yousay “it does, but it's only caterpillars from which it will soon recover, but if you still want it I'llgive you 20% off the cost”.

Always be truthful –don’t lie about your products. (You should emphasize the good pointsand don't bring attention to the bad points, but don't avoid them if they are brought up bythe customer).

Always be prepared for the customer! Don't welcome the customer to demonstrate a carwhen it has no petrol. Don't bring a customer into your interview room before you havetaken the messy papers off the desk. Check that you have your product and literature instock before making an appointment to show them to a customer.

Be sensitive to buying signals. When they are nearing the point of making a decision thecustomer will say or do things which indicate their likelihood of buying. They might startlooking more closely at one product compared to others. They might say something like"this one looks good".

Once you have made the sale; shut up! Ask for the order or the money and read thecustomers’ body language.

Above all, appear interested! Countless sales are probably lost by disinterestedsalesmen/women who do not seem interested in their product or their potential customer.

SPEAKING IN PUBLICSales men/women may be selling to one individual or a group of individuals, such ascommittee. Therefore, they should be able to speak well in public.

When speaking in public, you should aim too: Overcome self-consciousness so you may give yourself to your audience, without fear. Cultivate a strong, pure, clear, speaking voice. Discipline the body to compliment the spoken word (ie: Your actions should fit with what

you say). Be logical & truthful (Check, and be sure what you say is the truth). Speak the English language, with knowledge, simplicity & force. Have something worthy to say. Be economical, not long-winded with your use of time.

Basic Principles of Public Speaking1. Self Consciousness All good speakers are keyed up before they give a speech Practice, and have a firm grip on your subject

Don't be too self-conscious; public speaking is really only talking to several people at once.

2. Voice Breathe deeply Practice voice placement Practice pitch Be relaxed Keep a good tone Inflection should be good Give each word full value.

3. Delivery and Deportment Control your body, but use it to emphasize points Do not over emphasize. Watch unnecessary movement Use your eyes Use facial expressions Have your weight on both feet. Don't lean over to one side all of the time. Use notes if

necessary(ie: Small cards that aren’t noticeable. Do not use large sheets of paper which distract). Beenthusiastic.

4. Structure of SpeechA speech should usually be structured to have three easily defined parts: Introduction -should arouse interest & lead to discussion Discussion -should present the main ideas, each idea being developed to a conclusion with

examples, comparisons, evidence, facts and quotations Conclusion -should bring the main ideas together, then appeal for either some action or

belief in the ideas put forward.

5. Use of LanguageA large vocabulary is very useful. However, be careful, it is often the people who limit theselection of words they use who are the best speakers. Remember, your audience mustunderstand your words.

6. Purpose of the SpeechThere are three main reasons why people will give a speech: To inform To entertain To persuade

If it doesn't do any of these then it isn't worth giving. Be sure you know which of these reasonsapply.

7. Preparation Prepare rough notes on your subject Select the most interesting points Decide on what your conclusion will be Decide on your opening statement Write the speech Delete the unnecessary When you give the speech, it is normally best to NOT read it word for word...use your

prepared notes as a guide. Read speeches can be boring, even if prepared very well You may be giving the same speech over and over again when selling, but you must not

sound as if you are. Try to make the speech personal to the people you are speaking to, ormention a current event, anything to make it sound like this is the first time you have saidwhat you have to say.

8. Be logical and truthful Avoid all possible ambiguity Don't make broad conclusions, don't over simplify, don't use irrelevant arguments and be

sure your reasoning is sound Be very careful of becoming emotional or using emotional words Do not use deliberate misrepresentations Avoid prejudice: self-examination should be practised.

To sell well and conversationally, a salesperson must focus on being relaxed and relaxing theprospect. The best sale is one that doesn’t feel like a sale, but a natural process. Elementsof a salesperson’s personality, their approach and focus will all impact on how natural thisprocess is.

MARKETING AND PRODUCT PRESENTATION

AimExplain how to present products to potential customers and how to motivate them to buy.Recognise the significance of marketing to selling; but also the differences between the two.

Selling is the ‘pointy stick’ end of the marketing process. It is the ultimate destination of themarketing process, but not the whole process. Marketing involves a much bigger and widerperspective, of which selling is only a part. Marketing is the process of packaging up productfeatures, pricing, promotions and distribution and presenting them to the market forconsideration. It encompasses both the pre-sale and post sale process. Selling on the otherhand is a about getting your customer across the line, and persuading them to actually buyyour product.

In earlier lessons we have discussed the importance of persuasion in the art of selling. As asalesperson, your job is to motivate (or persuade) the customer to buy your product. Thisrequires some form of communication and communication is made up of the sender, receiverand message.

The way in which you as the sender, construct; encode; and send your message; willdetermine whether the sale successful or not.

BUYER MOTIVATIONIn order to construct your message appropriately, you will need to understand the motivationsof your potential customer.

Buyers (consumers) can be divided into three categories : Thinking: Thinking buyers require facts. Feeling: Feeling buyers will respond emotionally to a sales person’s plea. Intuitive: Intuitive buyers believe that they have extra sense - some insight which allows

them to arrive at the right decision more often than others.

Within a short period, a professional salesperson can recognise which type of buyer s/he isdealing with and can vary her/his sales technique accordingly.

‘Buyer Motivation’: is it a need? Or is it the price or the quality of the product? A professionalsalesperson must understand what motivates consumers to buy.

The following points provide an appreciation of buyer motivation: There is a motive behind every human action. There is always a prime motive and a subsidiary motive. The salesperson, whilst

concentrating on the prime motive, must never overlook the subsidiary motives. Different buyers buy similar equipment, but often for different reasons. Selective motives

should be used when applicable. There are rational and emotional buying motives, and the importance of emotional

motives should never be underestimated. The salesperson's objective should always be to try to include in his/her sales offer, the

motivational force which will impel the buyer to buy. Buyers first fulfil basic needs, but often do not recognise their real needs.

Benefits should be 'personalised'. A salesperson turns needs into wants by proving benefits to the buyer or his/her

company.

STRUCTURING AN ADVERTISEMENT OR PROMOTIONFor any promotional campaign to work well; the following points need to be achieved:

There should be a common thread (core theme) to the different messages beingpresented by promotional exercises. (eg. Perhaps....This business is uniquebecause....Each advert or promotion may give different reasons. Or perhaps.....Ourproducts are the cheapest for example)

The different promotions need to be readily identified as being the same organizations.(eg. Through use of the same type style on signs, adverts & leaflets, by the use of thesame person in promotions, such as a sports personality or celebrity, or by the use of thesame logo on literature, ads etc)

THE MARKETING MESSAGEThere are three stages in developing a strategy to a promotional campaign:

1. Message GenerationThis involves developing a number of alternative "messages" that will promote the product orservice to the desired market position. This may be achieved by... Gathering ideas from consumers, dealers, experts & competitors. Using your own ideas

Consider there are four possible types of rewards which a customer might see in a product.....

Rational Sensory Social Ego satisfaction

Consider there are three possible types of experience that the customer might have: Results of use experience Product in use experience Incidental to use experience

These 4 types of rewards can be crossed with the 3 types of experience to create 12 types ofadvertising messages, as shown by the following examples:

a/ Results in Use Experience With rational reward: eg. Gets dishes cleaner With sensory reward: eg. Makes headache subside With social reward: eg. You care enough to help With ego satisfaction: eg. For people with a discerning taste

b/ Product in Use Experience

With rational reward: eg. Paint that lasts twice as long With sensory reward: eg. A smoother taste With social reward: eg: Never have ugly pimples again With ego satisfaction: eg. The chain saw used by professionals.

c/ Incidental to Use Experience With rational reward: eg. The wine cooler that keeps wine cooler With sensory reward: eg. Power steering makes driving easier With social reward: eg. Patriotic people have flagpoles in their front yard. With ego satisfaction: eg. Nice people live in Toorak

2. Message Evaluation & SelectionConsider messages in terms of: Desirability Exclusiveness Believability

The strength of a message depends upon the strength of these three factors. If any one factoris weak, then the message looses strength. The message must always say somethingdesirable & interesting about the product or service; it must be exclusive or distinctive to theparticular product or service being sold, and it must be both believable & provable.

3. Message ExecutionThe impact of a message depends upon not only what is said, but how it is said. You mustdecide on the style, tone, words & format factors which put the message across in the mosteffective way. For example, the following different styles can be followed: Slice of Life -product shown to be used by people in their normal day to day life. Lifestyle -emphasises how the product fits into a particular lifestyle. Fantasy -creates a fantasy about/around the product (eg. A frog eats a cough lolly & turns

into a prince) Mood or Image - Builds a mood around a product such as beauty, love or serenity. Musical -showing characters singing a song or jingle Personality symbol -associates product with a character (eg: Ronald McDonald, Mr

Sheen etc) Technical Expertise -shows technical expertise behind product or service being provided. Scientific Evidence -presenting statistical, survey or scientific evidence to support

product. Testimonial -highly credible persons endorsing the product.

Tone of the advert can be varied from the serious advert which avoids humour (so as notdistract from the message), to the humorous advert which attempts to convey the messageindirectly and through subtle approaches.

COSTINGA common reason for losing a sale is not charging the right price! Think about the price youwant to market the product for.

If something is sold at a higher price than the competition, the customer is inclined to buyelsewhere. If something is sold too "cheap", the customer is inclined to think there issomething suspicious about what you are offering (ie: a hidden catch to the deal). Before anymarketing takes place, costs must be analysed to find the most appropriate figures.

It is critical that you understand exactly what it costs you to produce/offer a service or productto a customer, and to supply that product or service in a way which keeps the customer happyand does not place too much pressure on you or your business.

Costs can generally be broken down into three components:

1. MaterialsThis should account for the total cost of materials involved in supplying the service or product.Be careful to include the not so obvious things such as packaging paper (in the case ofsubmitted reports) etc.

2. Direct LabourThis involves the labour directly involved in supplying the product or service. It could involvesuch things as wages, but also sick pay, holiday pay and other such extras.In the case of a consultant providing a service, it involves the time spent travelling to and froma job as well as the time spent on the job.

In the case of a manufactured product it includes all wages paid to people involved in directlyproducing that product. This should be calculated as follows:

Start with the base weekly wage paid to the employee.

Add in additional costs for annual leave loading (normally 17.5% above the weekly wagefor 4 weeks each year); Workers Compensation, staff amenities costs (eg. providingcoffee, wash room facilities etc), supervision costs (commonly 7.5%), administration costs(commonly 2.5%), any overtime loadings, long service leave provisions etc. These extrasover and above the base wage are called "on costs". An employer will commonly have alegal obligation under the provisions of "award" systems to provide for these on costs.Many new businesses fail because they do not take into account these on costs whendetermining the cost of their work. Superannuation provision (3%).

3. OverheadsFrequently this category is not accounted for properly.Overheads can include such things as:Accountant's fees Solicitor's Fees Consultant's FeesBookkeeping Bank Charges CleaningElectricity Insurance Vehicle costsPostage Printing StationaryAdvertising Rent RatesTaxes Repairs New EquipmentOffice costs Discounts given Telephone/Fax costsTravelling costs Equipment depreciation.

These should all be calculated and built into the cost you determine.

Once you have established what it costs to provide a service or product, you must then addonto this a profit margin. This varies according to the type of business. Some businesses have

a 20% profit margin (eg. some areas of retailing), while others have 100% or more mark up onwholesale price (eg. the clothing industry).

Only very large businesses can work on lower profit margins, and because of the size of theiroperation still remain viable. Once costs have been determined, they can be factored in todevise the best marketing approach.

MARKETING - WHAT YOU NEED TO KNOW What the customer wants or needs. You may sell a customer what he or she thinks they

need, but does not really need. When the customer decides they don’t really want whatthey bought, you may lose the chance of the customer returning to buy again!

How to communicate successfully with the customer. This involves knowing where andhow to advertise; how to speak properly, how to read a person's mannerisms (voice andbody language) etc.

Potential that exists for new products or services. Changes likely to occur in demand for goods and services.

CONCEPTS IN MARKETINGThe Production ConceptThis concept holds that consumers will favour products that are available and highlyaffordable. Thus the marketer must focus on improving production and distribution efficiency.This is a useful concept when: The demand for a produce exceeds supply. When the product’s cost is too high and improved productivity is needed to bring it down.

The risks of this concept are that the company may focus too much on production – churningout an affordable but not so attractive product – and not enough on what the consumer wants(ie. something cheap and aesthetic) – and consequently fail their market.

The Product ConceptThis concept holds that consumers favour products that offer: The best quality, Performance and Innovative features.

DEFINING THE TARGET MARKETIt is hard to find potential buyers and sell, if one does not know who one is selling too.Marketing involves defining the target market and developing targeting strategies. In orderto develop a targeting strategy it is important to research your potential client base. Notunderstanding your potential market ie. who will buy your products; can lead to baddecisions, incorrect pricing, marketing strategies that don’t work and even failure of thebusiness. Demographic segmentation is the most popular base for determining customergroups mainly because customers’ needs or wants are closely related to the demographicvariables. It consists of dividing the market into segments based on these variables such asage, gender family size, income, occupation, education, religion, race and nationality.

Some questions regarding your target market that you need to answer are: How old are they? What gender are they? Where do they live?

What is their family structure (number of children, extended family, etc.)? What is their income? What do they do for a living? What is their lifestyle like? How do they like to spend their spare time? What motivates them?

When you know the answers to the above questions you can use differentiated (target)marketing techniques i.e. the needs of your customers are better understood. This has theflow on effect of creating stronger customer loyalty; creating more total sales with aconcentrated marketing effort in selected areas, thereby gaining market position withspecialized market segments. Target marketing of products or services reduces the cost ofproduction, distribution, and promotion. However this method of marketing has theassociated risk of competitors entering the market or your target market becomingsaturated.

Determining Market SegmentationGeographicThis refers to regions within countries, countries, cities or towns categorised by size, densityof population, and also climate. Marketing programs including advertising, product choiceand promotions are determined by and aimed at the individual needs of each geographicarea.

Mass MarketingThis is also called undifferentiated marketing: the market is treated as one homogenousgroup, the marketing is the same for all customers irrelevant of any of the variablesmentioned earlier. This type of marketing works when there is an economy of scale i.e.products are mass produced, mass communicated and mass distributed. The needs ofindividual groups are not taken into account and may cause the establishment of nichemarkets when other players realise that there is scope for potential sales to those customerswhose needs are not being met through mass marketing.

Niche Marketing:When a business concentrates on selling to a small market (sometimes products arespecialised for that market). Niche markets can be lucrative for small business as thismarket is often ignored by large multinationals the danger is that the market is small andcould change quickly.

PsychographicThis approach places people into groups according to their lifestyle. The segment can bedetermined by using surveys that are based on activities, interest, opinions, attitudes andvalues of targeted groups.

BehaviouralisticThis is a direct form of segmentation based on the way customers behave towardsproducts: such as the benefits they seek from a product, the amount of times they use aproduct, brand loyalty, whether the user is a first time, regular or potential buyer, whetherthey are ready to buy or whether they are occasional buyers ie. do certain events (weddings,holidays etc) stimulate a purchase?

After defining the target market and determining market segmentation, the salesperson haslaid the foundations for gaining the largest possible potential customer base.

PRODUCT DISPLAYProduct display is a part of marketing. If products are displayed well, they sell well. Thisapplies whether a salesperson is demonstrating at a buyer’s office or in a retail store.However, in a retail store there are many more opportunities in the area of product display.

The best selling products should always be displayed in the most prominent positions. Theprominent positions are "point of sale" positions, and are where things will sell from mostreadily.

What sells best:1. Products at point of sale locationsExamples of point of sale positions are: The main counter beside the till. The ends of rows. Islands in open parts of a showroom floor Points close to entry & exit. Window displays.

2. Products placed at eye level tend to sell better than those below or above eye level.

3. Products displayed in mass. Twenty of the same toy cars together will create impact. One mixed amongst other toys may go unnoticed.

4. Products with large signs which highlight their selling points. eg. If the thing you think willsell it is its discounted price, then you need a large sign with the product saying "discount"

5. Colourful displays attract

6. Well lit areas attract. Dull areas repel the customer. When lighting: Be aware of shadows Be aware of artificial light distorting colours Be aware of creating glare from unshaded light globes Light fixtures must fit the decor Point of sale locations should be highlighted with extra lighting

KNOW YOUR PRODUCT

AimExplain the importance of product knowledge and the planning involved to gain it.

A salesperson must know what they are actually selling, in order to sell it. Knowing thefeatures and specifications of a product is the first step in product sales.

During a recent sporting event I was speaking to the Sales Manager of Adidas sporting goods.He expects his new Sales Representatives to know the following within one month of startingtheir new career:

a) Make, model and purpose of the different types of sporting equipment available to thepublic through Adidas.

b) The manufacture of the equipment, materials used and how it is made.c) Wholesale/retail prices and also a thorough understanding of guarantees etc.

As you can see, there is a lot to learn about the products that salespeople have to sell.Finding out about a specific product requires pre-planning and research. While mostcompanies will provide their sales staff with manuals and brochures about their products, thisis just a very basic foundation which needs to be built upon. Researching the companyproduct, competitors and the industry is an important part of building the foundation forexcellent salesmanship.

MARKET RESEARCHSuccessful marketing depends upon knowing: the people/groups you are marketing too, whatthey want, how they are likely to react to your product, what they will spend money on etc.

When the market place is understood, you can then follow the steps below to achievesuccessful marketing:1. Set realistic marketing goals2. Provide structures for reaching those goals3. Assess the results of marketing efforts and modify your approaches accordingly.

Market research involves all those activities which help management reach marketingdecisions. Market research attempts to make unknown things known; and in most instances,largely succeeds.

Steps Involved in Market Research Define the problem. What information is required? (eg. How can I increase sales by

10%.or should I change the way I distribute my product?) Conduct an investigation. Examine past records which relate to the problem. Speak with

people in the know, who might help with this problem. Try to find any relevant informationwhich has been published (eg. In trade magazines, bureau of statistics etc).

If more information is required, you may decide to survey the customers (or potentialcustomers).Note - this involves significantly more cost.

If the problem is still beyond you, you may employ a professional market research firm to

handle it.

Types of Market ResearchMarket ResearchDetermining needs & wants of prospective customers, assessing the potential of specificmarket areas, studying the competition etc.

Product ResearchLooking into new product development, testing prices to determine if they are too high or lowetc.

Promotions ResearchChecking effectiveness of displays or advertising, comparing cost-effectiveness of differentpublications by looking at advertising costs, types & numbers of readers etc.

Sales ResearchEvaluating sales techniques of staff, looking at cost of selling, analysis of salesterritory/distribution, etc.

Company ResearchDetermining industry trends, determining the companies "image" in the market place, studyingemployee morale or location of facilities.

TYPES OF DATAThere are two categories of information which might be researched: "Primary Information" – data which has been collected or which is being collected for the

specific purpose at hand. Primary data may not yet exist, and the researcher may have togather it.

"Secondary Information" - this involves data which already exists, but was collected for adifferent purpose to the one at hand.

Secondary DataAlways keep in mind: reliability of your source possibility of bias information can be dated how applicable information is to a specific problem (it may have originally been gathered for some other reason)

Sources might include: Company records Government statistics Trade Associations, institutes etc. Libraries Research organizations (semi government) Trade/Industry publications Encyclopaedias

Primary DataThere are three main ways of gathering this data: Asking People. (ie: The Survey Method) Watching People. (ie: The Observation Method)

Experimental Method (used less often)

WAYS OF GATHERING DATASurvey Method Surveys are relatively inexpensive & adaptable to a wide variety of situations Questions are asked through personal interviews, mail questionnaires, telephone interviews

etc. Mail & telephone surveys are less expensive Telephone surveys produce quickest results Personal interview is most accurate.

Observation Methods Involves observing reactions when something is presented to people Cameras or tape recorders can be used to record reactions Can make observations of customers at point of sale Can make observations of public when exposed to demonstrations Main disadvantage is observations may not be accurate.

Experimental MethodsInvolves setting up a deliberate experiment (eg. The same item is temporarily sold at differentprices in different outlets, to determine what price achieves the best combination of quantityturnover and profit margin).

COMMONLY RESEARCHED FACTORSIn any business, success is determined by a combination of many factors. Market researchconsiders different things in different situations, however, the following are commonlyresearched factors: Progressive or backward Helpful & courteous to customers....or not Service is quick & efficient....or not Good or poor after sales service Poorly or well advertised/promoted Inexpensive or expensive.

LISTEN TO THE CUSTOMERCall on customers, ask if they are using the product, how they are using it and the benefits ofusage. This kind of knowledge can be used to advise potential customers of product successand additional usages of the product. It gives a salesperson a new product benefit to sell andincreases market penetration.

THE IMPORTANCE OF PRODUCT KNOWLEDGEA sales person should know exactly what they are selling(including how it is made, what it ismade of etc), to be able to maximise selling methods, skills and sales, gaining an edge overthe competition. Strong product knowledge not only builds staff confidence and salespotential, but also builds customer confidence.

A good sales person will analyse product features, question everything about the product, andstudy what they have in front of them to sell. Compiling a detailed list of all the productfeatures (both good and poor) is a good place to start. Don’t forget to include:

Research and development Market studies Image Economy Delivery Quality Technological advances Variety of colours, shapes, sizes Efficiency Accuracy Capacity Durability Strength Economy Price (reasonable or not) Manufacture process Sanitation(if relevant) Design and information on product designers Include all product weaknesses and benefits Customer testimonials

It is also wise to do an analysis of competitors’ products and compare them. This way, asalesperson can clearly point out the advantages of their own products over the competition.

Product knowledge is the foundation of all sales.

THE ABC OF SELLING

AimExplain the procedure involved in selling.

How can we find the best way to sell to every type of prospective buyer, whether they aremale/female, store manager, factory manager, managing director, office manager, nurseryowner or agricultural farmer? Although buyers vary in shapes, sizes, moods, customs etc.,they all buy for the same basic reason: Because it benefits them or their company to do so. Inthis lesson we spell out basic facts about selling.

SALES FORMULASRigid traditional sales formula’s have many limitations. Being able to customize a salesapproach and tailor it to each specific client and situation will bring the greatest benefits. Butto customize a sales formula, a salesperson must first understand the steps to obtain an orderand put them into a form that works. That may involve different openings and approaches, butultimately however, there are only 3 basic steps that really matter in selling.

STEPS TO THE ORDERThe most common traditional steps taken to obtain a sales order were: Attention Interest Desire Action

But how does a salesperson get the buyers attention without first creating interest? It wouldseem logical to combine these steps and form a new set of steps: Approach Creating interest Creating Confidence Selling the Product Benefits Creating Desire Close

There are many variations to these steps. But most of them can be broken down into 3 crucialsteps named the ABC of selling:

THE ABC OF SELLING Attention Benefits Close

These are the 3 most important steps a salesperson must remember and practice to begin onthe path to success. Explaining the benefits of the product to a buyer will not work unless youhave gained their attention in the first place. A salesperson cannot close the sale until theyhave sold the benefits of the product. Therefore there is a specific order that a salespersonmust follow in order to be successful.

Many salespeople overestimate the value of friendship in sales. A friendship will give asalesperson a free pass to getting the buyers attention and showing the benefits of the salesoffer, however, that’s where it ends. Research has shown that buyers will not buy based onfriendship alone. Unless the buyer believes the offer will genuinely benefit them over all otheroffers, the friendship will not influence a sale.

A brochure alone, no matter how beautiful, will not close a deal. Buyers need an explanation,they need the words of the salesperson to really understand the benefits of the offer. A buyerwants to object, ask questions and receive instant customised answers. A brochure cannottake the place of salespersons words. If brochures were successful in selling themselves,companies would not be paying a salesperson. Salespeople are paid to talk (to sell), they liveby the words they use. This is why the use of positive words is so important. Consider thefollowing:

I wonder I think I hope Possibly

Do these words sound like those coming from a positive confident person who knows exactlywhat they are talking about? Do buyers want to purchase from someone who is only‘guessing’, ‘hoping’ about their product/service?

Now consider these next few words: I am sure that I know I am certain It will

Is this salesperson confident? Do they know their product and industry? Would the buyer feelcomfortable in buying from them? This second set of words has a lot more power andcreates a sense of certainty. The buyer can feel confident. These are positive words that canbe used to create compelling sentences. A salesperson who does not feel confident usingwords with such certainty should not be selling. Knowing your product/service and industryinside out is an essential part of sales.

Putting words into a logical pattern strengthens their effect and enables the buyer to recall thebenefits of the sales offer more easily. A logical sequence consists of a beginning, middleand an end. Using key sentences is another method to ensure words have maximum effect.For example, a salesperson selling Yellow Super Glue might say “it spreads like butter andgrips like iron”. Not only does the sentence explain all the benefits of the product, but it ismemorable as well.

No matter what method of selling a salesperson uses, who they are selling too, or what theyare selling, the ABC’s of Selling will always apply.

QUALIFY AND ASSESS PROSPECTSEach individual has the same amount of hours available to them in a single year. It comesdown to how well a salesperson manages those hours that determines their success. That iswhy is it important not to waste time on prospects that require a lot of selling time and areunlikely to buy anyway. So each prospective buyer must be assessed to determine how

much time it is worth spending on them.

Don’t exhaust your entire sales pitch, using every tool in the book to sell to a prospect whoreally wants another product in the first place. Give your shortest pitch you have, and if theydon’t show clear signs of interest, then move on. For example, if you specialise in selling flatwater, and the buyer has made it clear they only want sparkling water, then don’t pussyfootaround the issue. Be upfront and let them know you only sell flat water, summarise thebenefits, and if they are not showing clear interest, then don’t persist wasting time with the restof your pitch. Why? Consider the following scenarios: First scenario: Jim is selling crates of pencils. His goal is to make a sale an hour that day.

His most basic sales pitch takes 5 minutes, and his longest takes 45 minutes. His firstcustomer makes it clear from the outset that her company has always used pens andalways will use pens; and doesn’t like pencils. Jim sticks with the buyer, determined toconvert her and her company into avid pencil users. He spends an hour doing his entiresales pitch. The customer finds Jim’s company pleasant and is happy to sit there beingentertained. But at the end of the pitch, she reminds Jim again that her company doesn’twant or need pencils. Jim doesn’t get the sale.Jim finally moves on to the next customer and launches into his full 45 minute sales pitch.At the end of the first hour he is just part way into his second full sales pitch and has

achieved zerosales for the first hour.

Second scenario: Jim is selling crates of pencils. His goal is to make a sale an hour thatday. His most basic sales pitch takes 5 minutes, and his longest takes 45 minutes. Hisfirst buyer makes it clear from the outset that her company has always used pens andalways will use pens; and doesn’t like pencils. Jim spends five minutes explaining thebenefits of pencils. The buyer reminds Jim again that her company uses pens and doesn’tlike pencils. Jim advises her that his company only sells pencils, wishes the buyer well andmoves on. The second customer actually uses pencils. Jim notes this, sees someinterest and decides to launch into his full 45 minute sales pitch. The customer places anorder. Jim has achieved his target of one sale in his first hour.

In the first scenario, Jim visited 1 customer and was still in the process of trying to sell to thesecond customer, and within the first hour had achieved zero sales; under target.

In the second scenario, Jim visited 2 customers and achieved 1 sale in one hour; right ontarget.

By assessing the prospects and qualifying them first, Jim was able to more accurately predictthe likelihood of a sale, and spend his time more efficiently. In this sense, ‘qualifying’ wasabout the salesperson deciding: What will the prospect buy? When will the prospect buy? How will the prospect buy? Under what conditions will the prospect buy?

This is a traditional qualifying approach where the salesperson makes a decision based onwhat can be gained from the prospect. Some salespeople however, prefer to qualify byconsidering what the prospect can gain out of them. This is merely a different approach butwith similar results. From many aspects, it is a more modern customer focussed approach.Using this method of qualifying, the salesperson would ask: What does the prospect want to get out of the exchange? What will I (as the salesperson) put into the exchange? What value can I (as the salesperson) demonstrate to this prospect?

What does the prospect value?

The traditional approach considers the salespersons time, and what 'is' a waste of thesalespersons time. The more modern customer focussed approach considers the buyers timeand if the buyer will or won’t be wasting time by talking to the salesperson.

Both approaches are simply different ways of ‘qualifying’, and both work. How they comparein terms of results all depends on which approach a salesperson feels more comfortable with.Choice of method may impact a salespersons ability to sell depending on individual values andpersonality. Using the more modern customer focussed approach ensures a salesperson isconstantly considering the buyers needs, which is a very positive aspect of this approach.

DIFFERENT WAYS TO SELLSelling can be implemented the following ways:

Sales Representative to BuyerA single sales person talks to a single buyer or several buyers (such as a husband & wifebuying a new TV).

Sales Representative to Buyer GroupA single sales person presents a product or service to a formal group of persons responsiblefor buying (eg. a committee of a large company).

Sales Team to Buyer GroupA group of representatives from one company which supplies a product or service, presentstheir case to a group representing a company which is a prospective customer.

Conference SellingA sales representative brings resource (perhaps technical) persons from his company to meetwith a group of potential buyers. The technical/resource personnel may conduct ademonstration & answer questions, the sales staff will present terms and conditions of thesale.

Seminar SellingTechnical or resource people from a company conduct an educational seminar about aproduct or service....the aim to build customer knowledge & loyalty rather than directly makingsales.

TYPES OF CUSTOMERSIn retailing (at least), shoppers can be categorised into the following four groups:

Economic Shoppers Most interested in prices, value, product quality & economic factors. Not so interested in treatment by staff, decor of the store, location etc.

Personalising Shoppers Enjoy the interaction with sales staff, preferring to shop with sales staff they know & like.

Ethical Shoppers

Avoid large chain stores or companies which tend towards monopolies or deal withproducts which are judged unethical.

Don't shop at big supermarkets because "they are putting the small man out of business" Prefer to buy food from the biodynamic/organic shop because it hasn't been treated with

chemicals. Etc

Apathetic Shoppers Don't like shopping, go to the most convenient supplier because they must.

THE SALES PERSON SHOULD KNOW: Details of what the product or service they are selling is - its attributes, its competition, its

negative points (and how to counteract these) Where & how to find the product/brochures/catalogues/order forms, or anything else

relating to the sale. The prices to charge and terms of sale. Procedure for making a sale (incl. Using cash register, filling out order book, writing receipt

etc). Company policies (on returns, damaged goods etc) How to package or deliver goods or services (eg. wrapping, directing other staff to deliver

service or good etc). How to keep records in order. How to maintain order & tidiness in sales area/equipment etc. Industry and product details

A good sales person should possess the following characteristics: A good appearance. A pleasant personality. Courtesy & tact. Enjoy selling. A basic understanding of human nature

(practical not theoretical -ability to read people's body language etc) Good attitude (be able to manage and handle rejection/failure, and learn from it)

A successful salesperson will: Be organized and pay attention to details Create short and long term goals Have excellent time management skills – do the most productive thing possible at any

given point. Network to expand existing client base Have confidence (if they don’t have to begin with, they act as though they do, and become

it) Be flexible enough to understand and act on the concept that anything is possible Be persistent (even when they feel they cannot continue, they continue). Develop a good rapport with clients (respect them and give them more service than

expected which leads to more referrals). Stay focused and keep positive Be disciplined Avoid procrastination by adopting a ‘do it now’ attitude. Go the extra mile to give clients recognition and thanks. Have integrity and be trustworthy, so clients will trust you and listen to you. Practice understanding and empathy toward clients Have mentors

Be knowledgeable about products and the industry and utilise the power it brings. Keep themselves healthy and in a good physical, emotional and mental state. Be enthusiastic enough to sell themselves

KEY RULES EVERY SALESPERSON SHOULD FOLLOW Research your customer and product first. (You need to know both the customer & the product before you attempt to sell) Get your customer's full shopping list before you start. Highlight the benefits of a product...rather than the features. (Tell the customer what it can do for them personally. But don't tell them what is great &

unique about the product if it is not relevant to them in particular). If there are objections, play it cool and try to determine, very specifically what they

are...once you narrow down the objection, put it into perspective by showing somethingabout the product which compensates that objection (eg. Yes it is expensive -but it will domore things). Don't make it seem as if you have won a point.

Always keep control of the conversation...don't let yourself get into a defensive position.This is done by asking questions when the customer starts to take the offensive.

Do not talk while giving a demonstration. Show them, then stop & talk, stop talking whileyou show them again...etc.

Handle products with respect. Get the customer to try out the product. If you need to, use the phone or calculator to buy thinking time. Try to close the sale -ask for an order at the appropriate time, when the customer seems to

be in a state of mind where he/she is likely to buy. Fulfilling the customer's needs is more important than improving your own knowledge or

sales technique. Remember that the customer is always right -without him/her you are not going to remain

in business.

ETHICS IN SALESTry to remember the last sales person that you feel treated you unethically. What do yousay about that experienced? How many people have you told about it? How likely are you togo back to that person for to buy a product or service? How likely are you to recommendthat business, product or service to others? Your answers to these questions probably tellyou that whatever the immediate benefits of deceiving, lying to, or being unfair to acustomer, that customer’s unhappiness will cost you far more than one lost customer. Anunhappy customer tells around 8 people of his or her experience, and if they also pass onthe word, before you know it, your business loses dozens of potential customers.

The fact is that ethics is part of responsible part of being in business as a salesperson. Intime, unethical behaviour will reflect negatively on a business person’s reputation, and inturn, can damage the reputation of the company they represent. Responsible business,therefore, relies not only on careful planning and decisions, but it also relies on establishinga philosophy of “service and mutual gain” for all parties involved.

The ethical salesperson is one who understands that it is in his or her best interest to seekmutual benefit in every sale. Benefits to the salesperson and business are, clearly, income,profit, and good public image. Benefits to the customer can include a quality product, valuefor money, met needs, and also, positive feelings about the sales experience and its

aftermath. The poor reputation of sales people in many areas, however, shows that many ofthem do not understand or follow this principle.

CLOSING A SALE

AimExplain how to close a sale.

In the car trade when a salesperson has reached a stage where the sale is about to becompleted, it is called the "crunch". In other words, it is the crucial moment when the sale isabout to be "closed". Closing a sale is not a skill easily learnt. In this lesson you are shownthe right way to finally close a sale, whether it is a house, car, vacuum cleaner or a featherduster. Basically, to close a sale, you are encouraging a customer to “make a decision” to buyyour product or service. A good sale will generally close itself, but this is not always the case.

SALES STOPPERSBe aware of factors that can prevent a successful close. Salespeople often aren’t able toclose successfully due to four main factors: Talking when the buyer is ready to buy Not listening: when a salesperson is intent on selling and doesn’t adequately respond to a

buyer’s questions or comments, the buyer may switch off. Not giving proof: A salesperson should use facts and brochures to prove

benefits/advantages of a product. Buyers are usually polite enough not to ask for proof,but they will be thinking about it, and a successful close may depend on it.

Not getting agreement step by step: Every step of the way, the salesperson should begetting a ‘yes’ response from the buyer by constantly asking the buyer if they agree. Eg.“You agreed Mr Brown, that this carpet is suitable for your needs?” By getting a buyersagreement all the way through the sale, a successful close becomes more automatic.

SIGNALS THAT THE BUYER IS INTENDING TO MAKE A PURCHASEThere are many different signals that a buyer is intending to make a purchase:

When the buyer says the following: “Are spare parts available now and in the future?” “I need to check the size again.” “What was that additional discount?” “I need to be certain that the servicing for our customers will be quick”.

“I’m not sure about that colour, can you do it in ….this colour?” “Are you sure it won’t…?”

When the buyer: Checks the colour range for the second time. Carefully reads the agreement and order form. Uses/demonstrates the unit again, or checks the sample again. Looks at the place where the unit would go. Takes time to look over the brochures properly, Calls in another colleague to discuss the unit in a positive light.

ASKING FOR THE ORDEROnce a salesperson has made their offer and interpreted the buyers signal, one of three thingswill occur:

The buyer says he/she will take it The buyer hesitates, waiting for the salesperson to ask for a decision. If the salesperson

also hesitates, the buyer is more likely to avoid making a purchase in that moment The salesperson asks for the order.

Many salespeople are too scared to ‘ask’ for the order directly. But unless they overcome thisfear, they risk losing the sale. Remember this: buyers know and understand that asalesperson is there to ‘sell’ to them. So there is never any reason not to ask for the order. Ifthe customer hasn’t instantly offered to purchase, a salesperson must not hesitate in askingfor the order. ‘Asking’ every time is the difference between a successful salesperson and anaverage salesperson.

CLOSING TECHNIQUESIf the buyer doesn’t jump right in and say he/she will ‘take’ the product and wants to order,then the salesperson needs to give some gentle encouragement.

The Alternative CloseIf the buyer is unsure, and there is no clear buying signal, the salesperson may risk losing thesale by directly asking for the order at this point. Give the buyer some alternatives first. Forexample: Do you prefer the colour to be black or silver? The unit can be installed anywhere you like. Which location do you prefer? Would you prefer to collect the unit from our depot or do you want us to deliver it to you? Do you want any product accessories, or just the product itself? Would you take advantage of our discount for 5 units or would you prefer to start with one

unit?

Once the buyer states a preference, the salesperson can accept this response as a positivebuying signal and ask for the order.

The Summary ClosePeople cannot remember everything that is said. Give the buyer a summary of theproduct/service benefits that have been mentioned throughout the offer. Then givealternatives or ask for the order.

The Fear CloseMany buyers may not like the fear close, so it should only be used when absolutelynecessary. It can be very useful when a product is in short supply (particularly safetyproducts). Real estate agents are notorious for using the fear approach when they say ‘youmust decide quickly as we have 3 other buyers who want this property’.

The Isolation CloseIf the buyer is hesitating, there is usually one major reason for that. The salesperson mustidentify and isolate that reason before they can provide an answer. One way to identify thereason is to ask the buyer outright. The salesperson should then reiterate the reason backto the buyer to confirm, and then give ways to overcome the issue and take immediateaction if necessary.For example, if the buyer is concerned about getting sufficient credit from the supplier, thesalesperson could say “so the only problem is enough credit. Okay, let me phone ourfinance department now and get that organised for you.”

Verbal-Proof Story CloseSave at least one good verbal proof story for the close. It is a final tool in your box which, ifused at the right time can often secure a sale. The story should be about another customerwho succeeded with this product. It must be a story the buyer can clearly relate to andwhich is likely to influence the buyer.

‘Influencing the Mind’ CloseThis close should be used where a sale cannot be fully closed because of the nature of theindustry. For example: where a salesperson’s product is medical products which can onlybe supplied to customers upon a prescription from a doctor. The salesperson mustinfluence the mind of the doctor to prescribe this particular drug. The ‘influencing the mind’close, might end with the salesperson telling the doctor “this drug is so good, you will beprescribing a lot of it, so I shall call the chemist and ensure they have sufficient supplies”.

The Concession CloseIf a salesperson has the right to make special concessions for customers, this informationshould be saved and used to help close the deal. For example; if the salesperson is allowedto give extended credit to customers who purchase over 5000 units, then the salespersonshould wait till the buyer has indicated the purchase required is likely to be around thisfigure. So if the buyer is undecided after hearing the offer, then this final concession mayjust be the final tool to assist in closing the order.

Using a Minor Point to CloseWhen a buyer agrees on a minor point, the salesperson either offers alternatives or takesthe order. It is almost like a test. This option gives the chance to try closing again later, ifthe minor point doesn’t work. It is almost like a trial close.

GET THE BUYER DECISION – CLOSE!Use a combination of closing techniques in a positive manner, ask for the order and you arelikely to successfully get buyer decisions and close many more sales than you otherwisewould.

Remember to be persistent and question the buyer if a ‘no’ response is received. Nevertake the first ‘no’ as an answer. The buyer may simply still be deliberating, or perhaps haveunanswered questions.

Finally, make sure you have a quote with you so you can both deliver and sell.

MAKING A DECISIONDecisions are not 100% predictable. We can only predict possible decisions, then attempt tounderstand the things that may influence a person to select one product, rather than another.If we can understand those influences, we may be able to strengthen exposure to selectedinfluences, and weaken exposure to others, in order to affect a desirable consumer outcome.(ie. Once we understand the things that cause a person to buy one thing rather than another;we can create situations where that influence becomes increasingly prominent).

Most decisions we make are not fully conscious decisions. The process of day to day livinginvolves making a continuous parade of decisions (eg. whether to eat the vegetables or themeat first; whether to drink water or coffee, what to wear, etc). It is rare that we actually stop

and think, “I’ve got to make a decision”; and after that, systematically and consciously considerthe pros and cons of the alternatives. This may happen occasionally for big decisions (eg.Changing job, getting married, buying a house, having a child etc). Even big decisions thoughare, for many people, made without a conscious process of evaluation.

Some types of people will stop and evaluate a greater number of decisions. It may be in theirpersonality to do this. This type of person is in the minority though.There can certainly be a degree of consciousness to many people’s decision making: but if westopped and undertook a comprehensive evaluation each time we purchased a different item,there simply would be not enough time.

Rational DecisionsPeople believe they make rational decisions about what they buy.When asked, most people will say that they make objective, non-prejudiced choices, basedupon sound logic. They believe that they have weighed up the economic and othercharacteristics of the product or service, and made a good choice based upon seriousinformed consideration of the options.In reality, some decisions are made this way, but most are not. Most decisions are based upon “incomplete information”. Most decisions are not fully conscious

Heuristic Procedures in Decision Making

A heuristic is a method by which we solve a problem: a pattern or way of coming to a decisionthat sits in our brain and is applied (perhaps automatically, perhaps with some degree ofconsciousness), when the need arises.A heuristic might be thought of as a “rule of thumb” or a “standard approach” to dealing with aparticular type of situation. There are three types of heuristics:

Representative HeuristicWe choose one characteristic to represent something; and then make decisions based uponthat one representative characteristic. The classic representative heuristic application is tomake purchasing decisions based upon price.With raised environmental awareness in modern society, there is a group of consumers whowill base decisions upon a product branded as environmentally friendly.Purchasing based upon “brand names” is another example of a representative heuristic.

Attitude HeuristicA person’s attitude toward something can form the basis of purchasing decisions.A person who likes the colour purple may tend to purchase the product in purple packaging (ifno other more influential heuristics are in play). A person who is extra health conscious maytend to make purchasing decisions based upon what they perceive as being supportive of theirstate of health.

Availability HeuristicA decision can be based upon the prominence of a product. If it is seen more on TV, and inshop displays, it is perceived to be a better choice.When information is more readily available, and the product is discussed more often both inthe media, and between consumers; it is perceived to be a better choice.

Comparing the different types of heuristics:

Representative Attitude AvailabilityAn easy to see Products or services that Information and Discussion

characteristic (eg. Price)provides a very fast way ofdistinguishing betweenproducts to reach adecision.

are “attractive” inappearance, or any otherrespect, are more readilypurchased thanunattractive ones.

is more obvious orfrequent. It is easy todecide to purchasesomething we have greaterawareness of.

UNDERSTANDING THE DECISION MAKING PROCESS

Various models have been developed to help us understand the decision making processwhich a consumer goes through each time they make a purchase. The following is one suchmodel, which is widely accepted by psychologists.Stage 1. Recognising a ProblemStage 2. Seeking InformationStage 3. Evaluating alternativesStage 4. Purchase ProcessesStage 5 Post Purchase Processes

Stage 1 Recognising a ProblemA consumer perceives a need, considers whether that need is significantly important to actupon, and whether he/she has the ability to act on it. If a consumer feels they need a new car,but can make do with the old one: the problem is not sufficiently significant to move to stage 2.

If the consumer perceives a need for a new car, but is financially incapable of buying one; thenagain, the situation will not go any further.

There are various reasons why the problem may attain greater significance: A change in the situation (eg. Finances change, needs change, wants change) Depletion in stock (eg. Petrol strike resulting in lower supply of petrol) can cause a decision

to purchase. Dissatisfaction with stock can arise when we perceive that there may be a change in a

product (and we prefer the old one –or the old price); and as a result, we decide topurchase sooner rather than later.

Marketing Influences such as advertising, packaging or other promotional activities caninfluence problem recognition. New products or inventions, for example, may not beperceived as important at all, if it were not for marketing efforts.

The purchase of one product can stimulate a perception that other products are needed.“Add on products” may include:Fertilizer purchased to use with a plant you just boughtDVD’s to use on a new DVD playerKnee pads to use with a new skateboard

Once the problem is identified, the decision making process has begun

Stage 2 Seeking InformationInformation must be gathered to base a decision upon. It may be gathered either internally(from past experience and knowledge) or externally. The internal search for information maybe either undirected (ie. information which was not specific to this particular problem); ordirected (ie. information we deliberately retrieved because it is specific to this problem). Anexternal search is fully directed, involving seeking information specific to the need of solvingthis problem. People seek information in order to reduce their perceived risk in buying. Thefollowing are examples of opinions that a marketer might seek to promote in order to reduceperceived risk: All brands are essentially the same

Local suppliers give better service Heavier advertised products are better Products used by larger numbers of people are better Older organisations are more sound and provide better service

Stage 3 Evaluating alternativesEvaluation involves: 1st Determining Criteria upon which to base evaluation (eg. Price, quality, longevity,

ongoing costs, etc) 2nd Determine the Options: The options may vary depending on the consumer. For one

consumer, everything outside a particular price range might not even be included on thislist.

3rd Assess the Options 4th Select a Decision Making Rule

The culmination of this process: is deciding what criteria are most important, and upon whatbasis the final decision will be made.

Stage 4 Purchase ProcessesOnce a decision has been made of what to buy; it must then be decided how to buy it (eg. nowor later; on credit or cash; with or without any extras). Purchasing may be either in-store or at-home. These are two very different psychological experiences. Both are undertaken in orderto acquire things which are seen to be needed; however this is only one of many reasons forshopping. In-store shopping may be undertaken for many reasons, including: To visit different environments (beyond the home or workplace) To obtain information about what is available For entertainment or recreation To socialize (interact with friends or even strangers) To obtain sensory stimulation (different smells, sights, sounds etc) To raise one’s sense of worth (because you are contributing toward the needs of your

household; being treated as important by sales staff) To provide physical exercise To exercise cognitive skills (eg. Searching, finding, bargaining etc). Choosing a Shop

Choosing a ShopPeople choose to go into in shop rather than another on the basis of four main things: Location Layout Merchandising Service

Purchasing at HomeThis can involve such things as: Buying mail order through magazine or newspaper ads; or mail order catalogues Door to door selling Party Plans (eg. Amway) Telecommunications (eg. Interactive TV shopping channels; videocassettes, on line

Internet shopping)

Stage 5 Post Purchase ProcessesAfter purchasing, there is always a process of evaluating what has been done; and decidingwhether the purchase was satisfactory or not.