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Chp 6 Sales Knowledge ppt

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  • 1. 6- McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Sales Knowledge: Customers, Products, Technologies Chapter 6
  • 3. Chapter 6 6-
  • 4. The Tree of Business Life: Knowledge
    • Guided by The Golden Rule :
      • Be an expert on everything associated with your product(s)
      • Use wisdom when applying knowledge
      • Remember, customers rely on you to truthfully provide knowledge and wisdom
      • Realize that people do not care how much you know until they know how much you care
    I T C Ethical Service Builds T r u e Relationships T T T T T T T T T T T
  • 5. Sources of Sales Knowledge
    • Sales training
    • Experience
  • 6. Knowledge Builds Relationships
    • Knowledge increases a salesperson’s confidence
    • Knowledge increases a buyer’s confidence in salesperson
    • More knowledge leads to more sales and more relationships
  • 7. Know Your Customers
    • Find out all you can
  • 8. Know Your Company
    • General Company Information
      • Company growth and accomplishment
      • Policies and procedures
      • Production facilities
      • Service facilities
  • 9. 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
  • 10. 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
  • 11. Advertising Aids Salespeople
    • Main ingredients of a firm’s promotional effort
    • Types of Advertising Differ
      • National advertising
      • Retail advertising
      • Cooperative, or co-op, advertising
      • Trade advertising
      • Industrial advertising
      • Direct-mail advertising
      • Internet advertising
  • 12. Why Spend Money on Advertising?
    • 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
  • 13. 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 pre-sell customers between sales calls
  • 14. Sales Promotion Generates Sales
    • Consumer sales promotion
    • Trade sales promotion
    • Point-of-purchase (POP) displays
    • Shelf positioning
    • Shelf facings
    • Premiums
    • Sales promotion on the Internet
  • 15. 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
  • 16. Exhibit 6.4: Examples of Prices and Discounts Salespeople Discuss in Their Sales Presentations
  • 17. Know Your Competition, Industry, and Economy
    • Understand competitors’ products, policies, and practices
  • 18. Personal Computers and Selling
    • The top 10 PC applications include:
      • Customer/prospect profile
      • Lead tracking
      • Call reports
      • Sales forecasts
      • Sales data analysis
      • Sales presentation
      • Time/territory management
      • Order entry
      • Travel and expense reports
      • Checking inventory/shipping status
  • 19. Technology Etiquette
    • Netiquette – etiquette on the internet
      • Cell Phones
      • Texting
      • Instant Messaging
      • Email
      • Speakerphones and Conference Calls
  • 20. Price Sheets
    • Prices
      • List Price—standard price
      • Net Price—w/discounts
      • Zone Price
      • FOB Shipping Price
      • FOB Destination
  • 21. Discounts
    • Discounts
      • Noncumulative: one-time reduction
      • Cumulative: discount over a period of time
      • Cash discounts: pay bills w/in stated period
        • i.e. 3/10 net 30 on $10,000
  • 22. Discounts Cont.
    • Discounts
      • Trade discounts: reduce prices to channel members (% off the list retail price)
      • Consumer: one-time price reductions manufacturer passes on to retailer or consumer (cents off labels)
  • 23. Markups
    • Markup: dollar amount added to the product to determine the selling price
    • Gross Profit: money available to cover costs of marketing
    • Net Profit: money remaining after the costs of marketing and operations
  • 24. Markups Cont.
    • Percentage Markup on Selling Price
    • Amount added to cost = $2.00 = 40%
    • Selling Price $5.00
    • Percentage Markup on Cost = Amount added to cost = $2.00 = 66.6% Cost = $3.00
  • 25. ROI-- Return on Investment
    • $70,440 = total gross sales -55,260 = total investment $15,180 = total gross profit
    • 27.5% ROI ($15,180/$55,260)
  • 26. Value Analysis
    • Determines the best product for the money
    • High-priced product may be better value than a lower-priced product
      • How does your product’s features/benefits/advantages compare?
      • Can your product do the same job as the competitor’s?
  • 27. Value Analysis
    • Three types:
      • Product Cost to True Value
        • Never discuss costs until you demonstrate the value of a product –Exhibit G
      • Units Costs Break down price
        • Computer sells for 1K, processes 50K in transactions
        • Unit cost is 2 cents per transaction
      • ROI = Gross sales - Total Investment = Gross Profit
        • Gross Profit /Total Investment = ROI
  • 28. Case 6A.1—Claire Cosmetics
      • Cost for a dozen of each product
      • Cost for a floor stand and counter display
      • Profit on a floor stand and counter display
      • What are discounts—dozen of each product/floor stand/counter display
      • Determine markups for individual unit
      • Determine ROI on a floor stand and counter display
  • 29. Product Sales Pitch
      • Selling to buyer at Target
      • Pitch the product
      • 5 minute time-frame (approx)
      • Be aware of verbal and nonverbal cues and be prepared to use a different tactic/strategy to get my attention
  • 30. Product Sales Pitch Cont.
      • Target is in need of new product for the Health & Beauty Dept.
      • You are the salesperson trying to get me to purchase product to put on my shelves
      • Know the product features/benefits/advantage
      • You can provide me literature/testimony/product demo
      • Know the product pricing—retail price (make up cost if need be)
      • Know the competition
  • 31. Product Sales Pitch Cont.
      • Identify the problem
      • Build interest and excitement
      • Give a testimony
      • Validate my objections/concerns
      • Create a decision/move the buyer to act/on the deal