The document provides an overview of key topics related to sales knowledge, including customers, products, technologies, and channels. It discusses the importance of being an expert on products and customers, and how knowledge builds relationships and leads to more sales. Specific areas of sales knowledge covered include the company, products, resellers, advertising, promotions, pricing, competition, technology, and financial metrics. The document emphasizes gaining a thorough understanding across many areas in order to effectively sell to customers.

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