CHAPTER 6
Sales Knowledge: Customers, Products, Technologies
LECTURE OUTLINE
I. THE GOLDEN RULE: KNOWLEDGE
II. SOURCES OF SALES KNOWLEDGE
A. Sales Training – the effort put forth by an employer to provide the opportunity
III. KNOWLEDGE BUILDS RELATIONSHIPS
A. Knowledge increases confidence in salespeople…
IV. KNOW YOUR CUSTOMERS – Ask questions to determine their needs.
V. KNOW YOUR COMPANY
A. Salespeople should be knowledgeable about their company’s policies and
procedures.
B. General company information.
1. Company growth and accomplishment – Salespeople should have
2. Policies and procedures – the salesperson should let the customer know:
a. How the order will be processed.
4. Service facilities – promise of prompt repair services can help make a
sale.
VI. KNOW YOUR PRODUCT – A salesperson’s product knowledge should include:
A. Performance data.
B. Physical size and characteristics.
VII. KNOW YOUR RESELLERS – Salespeople should learn as much as possible about
each channel member.
A. Likes and dislikes of each channel member’s customers.
B. Product lines and assortment each one carries.
VIII. ADVERTISING AIDS SALESPEOPLE
A. Types of advertising differ.
1. National advertising – reaches all users of the product across the country.
2. Retail advertising – used by retailers to reach customers within a specific
3. Cooperative (“co-op”) advertising – conducted by the retailer and paid
5. Industrial advertising – aimed at individuals and organizations that
6. Direct-mail advertising – ads, samples, and coupons mailed directly to
B. Why spend money on advertising?
1. To increase overall and individual product sales.
2. To build product and/or company recognition.
3. To give salespeople additional selling information to use in their sales
presentations.
IX. SALES PROMOTION GENERATES SALES
A. Consumer sales promotion – includes free samples, coupons, and
B. Trade sales promotion – encourages resellers to purchase and aggressively sell
C. Point-of-purchase (POP) displays – Allow a product to be easily seen and
D. Shelf positioning is important to your success.
1. Shelf positioning – refers to the physical placement of the product within
2. Shelf-facing – the number of individual products placed beside each
E. Premiums – articles of merchandise offered as an incentive to the user to take
X. WHAT’S IT WORTH? PRICING YOUR PRODUCT
A. Price – refers to the value or worth of a product that attracts the buyer to
B. It is important for salespeople to familiarize themselves with the company’s
XI. KNOW YOUR COMPETITION, INDUSTRY, AND ECONOMY
A. Successful salespeople are knowledgeable about their competitors’ products.
XII. PERSONAL COMPUTERS AND SELLING
A. PCs are a valuable tool for increasing productivity within the sales force.
B. Major reasons for using a PC:
1. More effective management of sales leads and better follow-through on
2. Improves customer relations due to more effective follow-ups. This
management.
company.
XIII. KNOWLEDGE OF TECHNOLOGY ENHANCES SALES AND CUSTOMER
SERVICE – Sales force automation (an application of technology) improves customer
service and increases sales through:
A. Personal productivity programs – assist with data storage and retrieval, time
management, and presentations.
1. Contact management – ACT! Contact Manager – the best known contact
B. Communications with Customers and Employer
1. A word processing system can make written communication more
C. Order processing and service support – shortens the sales-and-delivery cycle.
1. Automated order entries.
XIV. SALES, INTERNET, AND THE WORLD WIDE WEB – The internet provides
salespeople access to research, data, people, and vast amounts of information.
A. Internet – global network of computers.
B. World Wide Web – part of the Internet housing Web sites.
1. Page – screen of information.
C. E-Sales, Digital Media and Social Networking
1. E-Sales is the strategic process such as discovering the desires of
customers
2. A digital sale uses all digital media, including the internet and mobile
3. Social network is a web-based place.
XV. GLOBAL TECHNOLOGY PROVIDES SERVICE – Increased world-wide
XVI. TECHNOLOGY ETIQUETTE.
A. Netiquette is the term used for etiquette on the Internet.
1. E-mail do’s and don’ts
b. Respond as quickly to an E-mail as you would answer telephone
c. Avoid flaming, which is the equivalent of a verbal lashing on the
Internet.
make in person.
g. Don’t send repeat messages.
B. Cell phone guidelines:
4. Don’t engage in cell yell.
C. Voice Mail
1. Always change your outgoing message to let customers know of your
D. Faxes
1. Always remember to include a cover page with your fax number, the
2. Let the person know that the fax is coming.
E. Speakerphones and conference calls – People in a conference call should
XVII. APPENDIX: SALES ARITHMETIC AND PRICING
A. What’s it worth? – Price – the value or worth of a product that attracts the
B. Types of prices:
1. List price – standard price charged to customers.
2. Net price – price after all allowances for discounts.
C. Discounts lower the price.
1. Quantity discounts: Buy more, pay less.
a. Large quantities are produced at lower costs; the savings are
c. Cumulative quantity discounts – discounts received for buying
2. Cash discounts – discounts earned by buyers who pay their bills within a
3. Trade discounts – Reduced prices for middlemen. Serve to get
4. Consumer discounts – One-time price reductions passed on from
D. Markup represents gross profit.
1. Markup – dollar amount added to the cost of the product to calculate its
2. Gross profit – money available to cover the costs of marketing, operating
3. Net profit – money remaining after paying the costs of marketing and
4. Return on Investment (ROI) – an additional sum of money expected