Chapter
5
Sales Knowledge: Customers,
Products, Technologies
McGraw-Hill/Irwin
ABC’s of Selling, 10/e
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reser
Main Topics
The Tree of Business Life: Knowledge
Sources of Sales Knowledge
Knowledge Builds Relationships
Know Your Customers
Know Your Company
Know Your Product
Know Your Resellers
Advertising Aids Salespeople
Sales Promotion Generates Sales
What’s It Worth? Pricing Your Product
Know Your Competition, Industry, and Economy
5-2
Main Topics, cont...
Personal Computers and Selling
Knowledge of Technology Enhances Sales and
Customer Service
Sales: Internet and the World Wide Web
Global Technology Provides Service
Technology Etiquette
5-3
The Tree of Business Life:
Knowledge
vic
Et
h ic
al
r
Se
T
T T
T T TT
T T T T
Builds
True
e
Relationships
T
I
C
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
5-4
Sources of Sales Knowledge
Sales training
Experience
5-5
Sources of Sales Knowledge
Sales Training – effort put forth by employer to
provide the opportunity for the salesperson to
receive job-related attitudes, concepts, rules, and
skills that result in improved performance
Education, Reading, and Word-of-mouth
5-6
Sources of Sales Knowledge
Experience – the critical source
Selling is a skill developed through experience
5-7
Knowledge Builds Relationships
Knowledge increases a salesperson’s confidence,
and,
Knowledge increases a buyer’s confidence in the
salesperson.
Thorough knowledge about your product is needed to
gain the buyer’s confidence.
More knowledge, more confidence mean more
relationships,
and…
More relationships mean more sales
5-8
Know Your …
5-9
Know Your Customers
Find out all you can
5-10
Know Your Company
General company information:
Company growth and accomplishment
Policies and procedures
5-11
Know Your Company’s
Policies & Procedures
The salesperson should let the buyer know:
How his order will be processed
How long it will take for her to receive her order
The policy on returned goods
How to open a new account
What to do if he receives the wrong shipment
Know Your Company
General company information, cont.:
Production facilities
Service facilities – promise of prompt repair services
can help make a sale
5-13
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
5-14
Know Your Resellers
Understand the channel of distribution
The Channel of Distribution
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
5-17
Advertising Aids Salespeople
Advertising Aids Salespeople
5-18
Why Spend Money on Advertising?
Main ingredient of a firm’s promotional effort
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
5-19
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 presell customers between sales
calls
5-20
Types of Advertising
Types of Advertising Differ:
National advertising
Retail advertising
Cooperative, or co-op, advertising
Trade advertising
Industrial advertising
Direct-mail advertising
Internet advertising
5-21
Types of Advertising
National
Advertising
Reaches all users of the product across the
country
Ford, GM, GE, IBM, Coca-Cola
Retail Advertising
Used by retailers to reach customers within a
geographic area
Cost for national-brand advertising paid by retailer or
shared
Types of Advertising, cont.
Cooperative
Advertising
Conducted by retailer, paid by
manufacturer or shared
Trade Advertising
Undertaken by manufacturer directed toward
the wholesaler or retailer
Trade publications
Types of Advertising, cont.
Industrial
Advertising
Aimed at individuals and organizations who
purchase products for use in manufacturing
other products
Direct-mail Advertising
Ads, samples, and coupons mailed directly
to the consumer or industrial user to expose
him to or remind him of the product
May solicit response
Types of Advertising, cont.
Internet
(Web) Advertising