This document provides an overview of key topics in sales knowledge that are covered in Chapter 5, including knowing customers, products, companies, resellers, technologies, and pricing strategies. It emphasizes the importance of being an expert on all aspects of one's products and gaining knowledge from various sources like training, experience, and industry influencers. Having comprehensive knowledge builds confidence and relationships with buyers.

1. BMGT 204: SALES STRATEGIES AND TECHNIQUES
CHAPTER 5: SALES KNOWLEDGE:
CUSTOMERS, PRODUCTS,
TECHNOLOGIES

2. CHAPTER OVERVIEW: THE GOLDEN
RULE: KNOWLEDGE
• 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

3. JOB SEARCH
I M P L I C AT I O N S
• Pulse provides daily stories
from your industry
• You can follow influencers to
gain a POV
• In an interview, you should
ask more questions than they
do
• Understand their business,
their challenges, before you
even walk in the door

4. 2011 VIRTUAL WALLET INTERVIEW
M AT E R I A L S

5. SOURCES OF
SALES
KNOWLEDGE
• Sales training
• Experience
• Living and breathing your
clients brand
• MOOC’s

6. KNOWLEDGE
BUILDS
R E L AT I O N S H I P S
• 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
C O M PA N Y
• General Company
Information
• Company growth and
accomplishment
• Policies and procedures
• Production facilities
• Service facilities

9. COSTCO CEO
INTERVIEW
• http://youtu.be/
wkBGM7mkvdc

10. 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

11. 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

12. 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

13. 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

14. WHY SPEND MONEY ON
A D V E R T I S I N G ? , C O N T…
• 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

15. SALES
PROMOTION
G E N E R AT E S S A L E S
• Consumer sales promotion
• Trade sales promotion
• Point-of-purchase (POP)
displays
• Shelf positioning
• Shelf facings
• Premiums
• Sales promotion on the Internet

16. W H AT ’ S I T
WORTH? PRICING
YOUR PRODUCT
Maximum Profit
• Price refers to the value or
worth of a product that
attracts the buyer to
exchange money or
something of value for the
product
Competitive Pressure
Minimum Price to Break Even

17. PRICING IS OFTEN VERY
PSYCHOLOGICAL

18. TECHNOLOGY IS AIDING
SALESPEOPLE LIKE NEVER BEFORE
https://www.salesforce.com/form/conf/crm-salesindexpage-demo.jsp

19. B E F O R E S A L E S F O R C E : W H AT
SALESPEOPLE NEED TO BE SUCCESSFUL
• Customer/ Prospect profile.
• Lead tracking.
• Call reports.
• Sales forecasts.
• Sales data analysis
• Sales presentation.
• Time/territory management.
• Order entry.
• Travel and expense report.
• Checking inventory/shipping status.

20. KNOWLEDGE OF TECHNOLOGY ENHANCES
SALES AND CUSTOMER SERVICE
• Personal Productivity
• Contact management
• Calendar management
• Automate sales plans, tactics, and tickets
• Geographic information system
• Computer-based presentations

21. KNOWLEDGE OF TECHNOLOGY ENHANCES
S A L E S A N D C U S T O M E R S E R V I C E , C O N T…
• Communications with Customers and Employer
• Word processing
• E-mail
• Fax capabilities and support
• Customer Order Processing and Service Support
• Salespeople's mobile offices

23. H O W C A N A S A L E S P E R S O N U S E E - S A L E S , D I G I TA L M E D I A
AND SOCIAL NETWORKING TO INCREASE SALES AND
CUSTOMER SERVICE?
• E-Sales is a strategic process of such as discovering the
desires of customers, distributing, promoting, using digital
media and digital marketing
• Digital Sales uses all digital media to develop
communication and exchanges with customers and
prospects
• Social Networking to connect for getting acquainted,
keeping in touch, to build a work-related network
• LinkedIn Ok - others - probably not

24. S I M P LY A S K
• How do you prefer to be contacted?
• Useful for sales
• Useful for in a job search
• Useful in your career

25. CHAPTER 5 APPENDIX:
PRICING EXAMPLES

26. TYPES OF PRICES
• List price – standard price
• Net price – after discounts
• Zone price – based on geographical
location
• FOB (Free on Board) shipping point – buyer pays
• FOB destination – seller pays

27. DISCOUNTS
LOWER THE PRICE
• Quantity discounts
• Non-cumulative
• Cumulative
• Cash
• Trade
• Consumer

29. EXHIBIT C: EXAMPLE OF MARKUP ON SELLING
PRICE IN CHANNEL OF DISTRIBUTION

30. W H AT I S T H E P E R C E N T M A R K U P ?
$1.00 = cost to retailer!
$1.00 = dollar markup!
$2.00 = selling price

31. W H AT I S T H E P E R C E N T M A R K U P ? ,
C O N T…
• It depends on whether you use
• Selling Price, or
• Cost
• Dollar markup is divided by either selling price or cost to retailer
• Selling price = 50%
• Cost = 100%
• We use selling price in calculating the percent of markup