Marketing chapter 5a sales knowledge customers,products,technologies

Main Topics The Tree of Business Life: Knowledge  Sources of Sales Knowledge  Knowledge Builds Relationships  Know Your Customers  Know Your Company  Know Your Product  Know Your

Sales Knowledge: Customers,

Main Topics

 The Tree of Business Life: Knowledge

 Sources of Sales Knowledge

 Knowledge Builds Relationships

 Know Your Customers

 Know Your Company

 Know Your Product

 Know Your Resellers

 Advertising Aids Salespeople

 Sales Promotion Generates Sales

 What’s It Worth? Pricing Your Product

 Know Your Competition, Industry, and Economy

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Main Topics, cont

 Personal Computers and Selling

 Knowledge of Technology Enhances Sales and

 Customer Service

 Sales: Internet and the World Wide Web

 Global Technology Provides Service

 Technology Etiquette

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The Tree of Business Life:

on you to truthfully provide knowledge and wisdom

care how much you know until they know how much you care

Sources of Sales Knowledge

 Sales training

 Experience

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Sources of Sales Knowledge

 Sales Training – effort put forth by employer to provide the opportunity for the salesperson to

receive job-related attitudes, concepts, rules, and skills that result in improved performance

 Education, Reading, and Word-of-mouth

Sources of Sales Knowledge

 Experience – the critical source

 Selling is a skill developed through experience

Knowledge Builds Relationships

Knowledge increases a salesperson’s confidence,

and, Knowledge increases a buyer’s confidence in the

salesperson.

Thorough knowledge about your product is needed to

gain the buyer’s confidence.

More knowledge, more confidence mean more

relationships,

and…

More relationships mean more sales

Know Your …

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Know Your Customers

 Find out all you can

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Know Your Company

 General company information:

 Company growth and accomplishment

 Policies and procedures

Know Your Company’s

Policies & Procedures

 The salesperson should let the buyer know:

 How his order will be processed

 How long it will take for her to receive her order

 The policy on returned goods

 How to open a new account

 What to do if he receives the wrong shipment

Know Your Company

 General company information, cont.:

 Production facilities

 Service facilities – promise of prompt repair services can help make a sale

Know Your Product

 Product knowledge may include:

 Performance data

 Physical size and characteristics

 How the product operates

 Specific features, advantages, and benefits of the

product

 How well the product is selling in the marketplace

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Know Your Resellers

Understand the channel of distribution

The Channel of Distribution

Know Your Resellers

 Understand the channel of distribution

 Know as much about each channel member as

possible

 Likes and dislikes of each channel member’s customers

 Product lines and the assortment each one carries

 When each member sees salespeople

 Distribution, promotion, and pricing policies

 What quantity of which product each channel member

has purchased in the past

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Advertising Aids Salespeople

Advertising Aids Salespeople

Why Spend Money on Advertising?

 Main ingredient of a firm’s promotional effort

 Companies advertise because they hope to:

 Increase overall sales and sales of a specific product

 Give salespeople additional selling information for sales presentations

 Develop leads for salespeople through mail-ins and ad response

 Increase cooperation from channel members through

co-op advertising and promotional campaigns

 Educate the customer about the company’s product

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Why Spend Money on Advertising?,

cont…

 Inform prospects that a product is on the market

and where to buy it

 Reduce cognitive dissonance over the purchase

 Create sales or presell customers between sales

calls

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Types of Advertising, cont.

Types of Advertising, cont.

Industrial Advertising

 Aimed at individuals and organizations who purchase products for use in manufacturing other products

 Direct-mail Advertising

 Ads, samples, and coupons mailed directly

to the consumer or industrial user to expose him to or remind him of the product

Types of Advertising, cont.

Internet (Web) Advertising

Sales Promotion

 Promotional tool that simulates consumer

purchasing and dealer interest by means of

Sales Promotion Generates Sales

 Consumer sales promotion

 Business sales promotion

Sales Promotion Techniques

Premiums

Premium

 Article of merchandise offered as an

incentive to the user to take some action

product

Sales Promotion Generates Sales

 Premiums

 Sweepstakes and contests

 Consumer premiums

 Dealer premiums

Sales Promotion Generates Sales

 Sales promotion on the Internet

Exhibit 5-2: Advertising and Sales Promotion Information the Salesperson Provides the Buyer

Exhibit 5-2: Advertising and Sales Promotion Information the Salesperson Provides the Buyer

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What’s It Worth?

Pricing Your Product

 Price refers to the value or worth of a product that attracts the buyer to exchange money or

something of value for the product

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Exhibit 5-4: Examples of Prices and Discounts

Salespeople Discuss in Their Sales Presentations

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Know Your Competition, Industry, and Economy

 Understand competitors’ products,

policies, and practices

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Personal Computers and Selling

 The top 10 PC applications include:

 Travel and expense reports

 Checking inventory/shipping status

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Knowledge of Technology Enhances

Sales and Customer Service,

Three Areas of Sales Force Automation

1 Personal Productivity

2 Communications with Customers and Employer

3 Customer Order Processing and Service Support

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Knowledge of Technology Enhances

Sales and Customer Service

 Personal Productivity

 Contact management

 Calendar management

 Automated sales plans, tactics, and ticklers

 Geographic information systems

 Computer-based presentations

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Knowledge of Technology Enhances

Sales and Customer Service, cont…

 Communications with Customers and Employer

 Word processing

 E-mail

 Fax capabilities and support

 Customer Order Processing and Service Support

 Salespeople's mobile offices

 GPS and PDA

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Exhibit 5-8: Salespeople Rely on Mobile Technology to Serve Their Customers

GPS Device

Cell Phone

PDA

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Sales: Internet and the World Wide Web

Exhibit 5-9: Web Sites Can Provide

Valuable Information to Salespeople

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Global Technology Provides Service

 Increased worldwide interaction

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Summary of Major Selling Issues

 Company knowledge includes information on a

Summary of Major Selling Issues,

cont…

 To reduce conflicts and aid channel members in

selling products, manufacturers offer assistance in:

 Advertising

 Sales promotion aids

 Pricing allowances

 National, retail, trade, industrial, and direct-mail

advertising create demand for products and are

powerful selling tools in sales presentations

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 Salespeople should be able to confidently discuss price, discounts, and credit policies with customers

 Success in sales requires knowledge of the many technologies used to sell and service customers

Summary of Major Selling Issues,

cont…

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Chapter 5 Appendix

Sales Arithmetic

and Pricing

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Types of Prices

 List price – standard price charged to customers

 Net price – after allowance for all discounts

 Zone price – based on geographical

location

 FOB shipping point – buyer pays transportation

charges – title transfers

 FOB destination – seller pays all shipping costs

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Discounts Lower the Price

 Quantity discounts

 Noncumulative – one-time

 Cumulative

 Cash – ex 2/10 Net 30

 Trade – Wholesaler / Retailer

 Consumer

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Exhibit B: Types and

Examples of Discounts

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Resellers: Markup and Profit

What Is the Percent Markup?

$1.00 = cost to retailer

$1.00 = dollar markup

$2.00 = selling price

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What Is the Percent Markup?, cont…

 It depends on whether you use

What Is the Percent Markup?, cont…

Exhibit C: Example of Markup on

Selling Price in Channel of Distribution

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Exhibit E: Profit Forecaster for Granola

Bars Shown to Buyer

3-Day Special 2-Week Special Normal

Total gross sales

Total gross profit

Return on investment (ROI)

100 June 1 – June 30

$21.60

- 6.36

$15.24 1.39

500a

$7,620b

$8,340c $720d9.0%e

100

$21.60

- 6.36

$15.24 1.39 1,000

$15,240

$22,680 $7,440 49%

100

$21.60

$21.60 2.19f1,500

$32,400

$39,420 $7,020 22%g

a 5 cases per store d $8,340 - $7,620 = $720

b 500 x 15.24 = $7,620 e $720 ÷ $7,620 = 9.0%

c 500 x 12 = 6,000; 6000x $1.39 = $8,340 f $21.60 ÷ 12 @ case = $1.80 (regular cost)

g $7,020 ÷ $32,400 = 22%

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Organizations: Value and ROI