CHAPTER 2

THE SALES PROCESS

Learning Objectives:

At the end of the lesson, the students should be able to :

1.   Explain the steps in the selling process.
2.   Asses the different approaches in retail selling.
3.   Apply the tips for effective product presentation in a sales organization
4.   Understand the common objection in sales

Lesson Proper
Introduction

There are seven main steps to the sales process. These are also different styles and
methods for approaching customers. What type of approach is appropriate depends on the
sales situation. These elements are the foundation of the sales skills a salesperson must
consider or possess.

The Selling Process

Selling is the process of matching customer needs and wants to the features and
benefits of a product or service. Prior-sales or pre-approach to selling plays a vital role in
this process which is gathering first information about the customer, then advising the
customer about which products would best suit his or her needs that lead to a decision to
buy.

The seven steps to the selling process are:

1.   Approaching the customer – greeting the customer face-to-face.

2.   Determining needs – learning what the customer is looking for in order to decide
what products to show and which product features to present first is the next step
of the sale.

3.   Presenting the product – educating the customer about the product’s features and
benefits.

4.   Overcoming objections – learning why the customer is reluctant to buy, providing

information to remove that uncertainty and helping the customer to make a
satisfying buying decision.

5.   Closing the sale – getting the customer’s positive agreement to buy.

6.   Suggestion selling – suggesting additional merchandise or services that will save

 your customer money or help your customer enjoy the original purchase.

7.   Relationship building – creating a means of maintaining contact with the customer

after the sale is completed.
The Approach in Retail Selling

When customers are in a hurry, you should approach them quickly but when they
are undecided, encourage them to look around and ask questions. There are three
methods of approach in retail selling. These are: the service approach, the greeting
approach, and the merchandise approach. You must evaluate the selling situation
and the type of customer to determine which method is best.

With the service approach, the salesperson asks the customer if he or she needs
assistance. One way to use this method is to ask: “How may I help you?” An open-
ended question such as this one offers the customer a greater opportunity to respond
with more than “Yes” or “No” answer. In most cases, this type of question is
ineffective because it usually elicits a negative response such as “No”.

With the greeting approach, the salesperson simply welcomes the customer to the
store that lets the customer know that the salesperson is available for any question
or assistance. The greeting can be a single one such as “Good Morning”.

So when you greet the customer, it is important to use a rising intonation in your
voice. A falling tone sounds unfriendly and would start the sales process off on
the wrong note. It is extremely important that the salesperson smiles and be
friendly.

If the customers need help, they will tell you how you can assist them. If they are
just looking, they will let you know. The greeting approach establishes a positive
atmosphere and opens the lines of communication.

With the merchandise approach, the salesperson makes a comment or asks

questions about a product in which the customer shows interest. This method can
be used only if a customer stops to look at a specific item. You may open with a
statement about the product’s features and benefits.

Determining Needs

Determining customer’s needs is an early step in the sales process because it frames
the rest of the sales presentation. It is also the first step in the continuity of the sales
process as you try to match a customer’s needs with solutions found in your product
line.

In this step of the sale, your job is to uncover the customer’s problems pr reasons
for wanting to buy the goods or service. In some instances, their motives or needs
may be quite obvious, but that is not always the case. It is your job to determine
those needs so you can offer one or more solutions. Discovering your customer’s
motivation for buying will help you in the next step of the sale when you are helping
the customer select the right product.
When to Determine Need in Sales

In retail selling, the salesperson should begin to determine needs immediately

after the approach. In business-to-business selling needs can be determined in the
pre-approach. In both situations, the salesperson should continue determining the
needs throughout the sales process.

How to determine Need in Sales

There are three methods used to determine customer needs namely: observing,
listening and questioning.

Observing

When you observe a customer, you look for buying motives that are communicated
nonverbally. Nonverbal communication is expressing yourselfwithout the use of
words. Facial expressions, hand motions, eye movement, among others can give
you clues about a customer’s mood and interest in a product.

Observing how long a customer in a retail store looks at a product can give you an
initial about the level of interest.

Listening

Listening helps you pick up clues to the customer’s needs. You can uses this
information for the product presentation. Here’s an example.

One of the customer said that “I want a copier for my home business that is simple
to use and reliable. May last copier broke down often, which was a problem for me.
I usually make one or two copies at a time. However, occasionally I had to produce
50 copies at once”.

From these statements, you have learned that the customer is not looking for a top-
of-the-line copier but the size which is a factor since the copies needed is for ahome
business only.

Questioning

When you begin determining needs in sales, the first thing you do is to ask
general questions about the intended use of the product and any previous experience
with it. Build your questions around words like: who, what, when, where, why and
how. You might ask the following questions of someone who wants to purchase a
copier like:
 Who will be using the copier?
What type of copier is the person using at present?
How much experience has the person had with copiers?
How many copies will the person be making every week or month?

How to Refine Your Questioning

Once you have an idea of the customer’s general needs, then you can ask more
specific questions related to the product. In the case of the copier, questions could
be asked about the need to exchange or reduce the size of the copy, as well as the
need to collate and staple copies.

Open-ended questions are those that require more than a yes or no answer, such
as “What do you dislike about the copier you are presently using”. The answer to
such a question will provide valuable information about a customer’ needs. Always
bear in mind that some customer will be protective of their privacy; they may resent
even general, non-personal questions.

The following are the do’s and don’ts guidelines for questioning:

1.   Do ask open-ended questions that encourage customer to do the talking.

2.   Do ask clarifying questions to make sure you understand customer’s needs. To do

this, use opening lines such as “Let me see if I understand you”, or “Am I correct
in assuming you’re looking for a product that…?”

3.   Don’t ask too many questions in a row.

This will make customers feels as if they are being cross-examined.

4.   Don’t ask questions that might embarrass customers or put them on the defensive.
Never ask instead, ask about the intended use of the product and any past
experience that should give you enough information.

Product Presentation

The product presentation step of the sales process in where you get to share your
product knowledge with customers. To be effective, you need to first determine
customers’ needs in order to match those needs with product features and benefits.
There are a few techniques that will create an exciting and interesting presentation
for your customers.

Tips for Effective Product Presentations

Display and handle the product

 Thinking of how the product will appear to a customer is very important. For
instance, if you are selling jewelry, an attractive display case will add to the
product’s appeal. Pick up the jewelry, perhaps showing how it appears in different
lighting. Show the customer any special features of the product. When you handle
a product, always demonstrate respect to what you are selling.

You have to display creatively the product because this is the first step in on eye-
catching presentation. Diamond rings for example, look great if you display it on
a black velvet pad.

The way you physically handle a product presents an image of its quality. Handle
it with respect and use hand gestures to show the significance of certain features.

Demonstrate

Show the customer how the product works. If it is a necklace, demonstrate how the
clasp works. If you are selling a product with complicated parts of instructions, use
sales aids, such audiovisual presentations or brochures.

Demonstrating the product in use helps to build customer confidence. This is

especially true if you are showing an item that requires manipulation or operation,
such as television, camera or a computer. To demonstrate the features of a copier,
you may show how it can enlarge or reduce a document as well as organize and
staple multiple copies.

To prove selling products or claims made by the manufacturer, you may need to
demonstrate a product in more dramatic ways. To prove that a paper towelabsorbs
water, you can use it to clean up spills.

Common Objections in Sales

When you list general customer objections, you will see that they fall into certain
categories. Most objections are based on key decisions the customer must make
before buying, decisions about need, product, source, price and time. This is true
for both retail and business-to-business sales situations. The actual objections will
vary because of the difference in purchase motivation.

The following are examples of customer objections in a retail situation. They

provide a starting point for the creation of an objectives analysis sheet. Objection
analysis sheet is a document that lists common objections and possible responses
for them.

Need

Objections related to need usually occur when the customer does not have an
immediate need for the item or wants the item, but does not truly need it. For
example, the customer says “I really want to get these sandals, but I really
don’t need another pairs,” is an objection based on the conflict between a
need and a want.

Product

Objections based on the product itself are most common. They include
concerns about things such as constructions, ease of use, quality, color, size
or style. “I don’t buy 100% cotton shirt because you have to iron them” is
such an objection.

Source

Objections based on source often occur because of negative past experiences

with the firm or brand. A business-to-business customer might say, “The last
time I placed an order with your company I received it two weeks after the
promised date”.

Price

Objections based on price are more common with expensive

merchandise. Youmight hear statements like this “That’s more than I
wanted to spend.”

Time

Objections based on time reveal a hesitation to buy immediately. These

objectionsare sometimes excuses. Customers usually have a real reason for
now wanting to make a purchase on the spot. A customer might say, “I think
I’ll wait until July when you have your summer sale to buy those sandals”.

You will probably hear many different kinds of objections once you begin
selling.You should note them for future reference.