Sales Management: Products and Services. Dr Jae K Shim
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clear up common misunderstandings and answer objections. Furthermore, the salesperson should be informed on current product research and advertising. Such material can be shown and/or distributed to prospective buyers and serves as an effective tool for selling. In addition, the salesperson should know about operating and servicing her product, as well as the guarantees and warranties that are offered.
Information on competition
Being informed about her own company and product is not enough; the salesperson must also be well informed about the products or services offered by her competitors. Prospective buyers will frequently refer to competitors’ products or ask specific questions about them. The salesperson should, therefore, know the advantages and drawbacks of each competitive product and be prepared to explain and prove the particular merits of her product in comparison with specific competitor products. Furthermore, she should have some idea about the sales volume and market share of each competitor and know their basic policies and procedures as related to prices, discounts, credit, and service. Rather than directly criticizing the products of her competitors, the salesperson should emphasize the advantages of her own product.
Advertising and selling
Advertising is addressed to the masses, while personal salesmanship is geared to specific individuals. Advertising is also designed to presell the product or service, and personal salesmanship is used to follow up with more detailed information and to close the sale. Effective advertising and personal salesmanship work together to achieve the same objective -- namely, to stimulate sales. Each is important, and these two functions must operate together as a coordinated effort.
It is the salesperson’s responsibility to keep abreast of all current advertising conducted by her company. She must know the content of each ad and when it appeared. She should be able to explain to dealers the uses and advantages of advertising and show them how it can help them move the product off their shelves after she has sold it to them. The following are some common points she can mention: (1) advertising increases demand for the product or service. A dealer can sell advertised products more quickly than unadvertised ones because the consumer is presold to a certain extent and is already aware and informed about the product; (2) advertising creates faster turnover of inventories, and faster turnover means lower operating expenses and greater profits; (3) through advertising and branding, consumers can identify quality products that they wish to buy again. Such identification also helps to establish a good reputation for the dealer who handles the product; (4) advertising not only helps the customer to identify products, but also provides her with valuable information about their quality and performance.
Advertising also helps the salesperson in many ways:
1.It develops customer interest and helps to presell products and services.
2.The salesperson can use advertising to emphasize and reinforce sales points she mentions in her presentations.
3.Advertising reaches the masses and serves as a means for securing new leads and contacts. Thus, it often reaches some people whom the salesperson, because of distance or other circumstances, is unable to contact.
4.Sometimes the salesperson is unable to call on all her customers as often as she would like, and advertising helps her sell between calls.
5.The presentation of new ideas and information through advertising stimulates interest and increases motivation in the salesman herself.
To use company advertising effectively, the salesperson should carry copies of current advertisements to show to prospective buyers. She should also be well informed on her company’s total advertising program and be able to explain its uses and benefits to the buyer. Sometimes a buyer will ask questions on how she can tie her efforts in more effectively with the advertising campaigns, and the salesperson should be able to give the buyer appropriate suggestions. It is also the salesperson’s responsibility to get the buyer to use any direct mail, point-of-purchase, or cooperative space advertising her company provides. Finally, she should obtain the buyer’s reaction to, and suggestions concerning, her company’s advertising in order to make it more effective.
It is recognized that the salesperson’s knowledge of her company, her product, competitive products, and current advertising will vary with her experience and training. It sometimes takes months and even years to prepare for a particular sales position. Furthermore, it is a continuing process, for markets and products are constantly changing. To keep abreast of these changes is an important responsibility of the salesperson, which will greatly determine her success or failure.
1.The salesperson serves as a personal representative of the company and should be well informed about its history, growth, and development.
2.It is enough that a salesperson thoroughly understands her company and its products in order to be successful.
3.Once a salesperson learns all about her company’s products, she can concentrate on other problems and not study her own products any further.
4.Advertising is an aid to the salesperson, and she should carry copies of current advertisements to show to prospective buyers.
Answer
1.True. A salesperson should know all about her company, especially its pricing policies, discounts, delivery, credit, and other services.
2.False. Being informed about her own company and products is not enough for a salesperson. She must also be well informed about the products or services offered by competitors in order to discuss the relative advantages and disadvantages.
3.False. Most products are periodically changed and improved, and keeping up to date on product knowledge is a never-ending process.
4.True. Advertising helps the salesperson by increasing demand for products, establishing a good company image, providing consumer information, reaching people the salesperson cannot, and stimulating and motivating the salesperson herself. The salesperson should use these ads to support her presentation. The salesperson should also provide feedback from the customer to make future ads more effective.
CHAPTER 6
Credit, Pricing and Discounts
Credit and collection
The three C’s of credit. Many products or services are purchased on a credit basis, and the salesperson should be familiar with the policies and procedures for granting it. Credit is permission to buy a product immediately and to pay for it later. Moreover, credit is a privilege, not a right, which means that the buyer is morally and legally responsible to pay for the products or services he receives.
In opening a personal credit account for the buyer the salesperson must answer the following three questions: Can the buyer pay for what she purchases? Will she pay? What amount of credit should be given?
To answer their questions the salesperson must have information about the buyer’s capital, capacity, and character, commonly referred to as the “three C’s of credit.” Capital relates to the buyer’s financial position. We need to have a picture of her assets, liabilities, and net worth. Capacity pertains to the buyer’s weekly or monthly income. And character applies to the buyer’s personal integrity, honesty, and past dependability in paying her bills. All three of these factors must be carefully analyzed to determine the buyer’s ability and willingness to pay, as well as the amount of credit she will receive.