Professional Documents
Culture Documents
Retailing
Retailing
done by salesman.
Salesmanship or Personal Selling is the oldest and most common form of promotion. It involves direct selling by the manufacturer to the prospective buyer. It is a face to face and oral communication with the potential customer for the purpose of persuading the buyer to buy a particular product or service.
To introduce new product or service with personal touch. To create demand for the products such that it precedes supply. To clarify the doubts of customers personally. To create effective selling at least cost and secure repeated sales. To provide valuable feedback to the managers.
Demand filling salesman ship/ order taking salesmanship: Here buyer initiates the sale because he knows his needs and the product, which satisfied his needs. So, salesmen not require extra skills. Ex: Cheap articles and service purchase by the buyers Creative salesmanship: Here salesman initiates the sales because he not simply sells the product, but creates the urge to buy. So, salesman requires many professional skills. Ex: Industrial goods and intangible services (life insurance etc.)
He has a job A status The job gives freedom to move in a geographical area. It provides an identity in the society. He has the chance to meet several kinds of people. They get better self-motivation and so direct their energies towards their real goals. This will create a high vocational esteem to them. Paves way for a good career growth.
Communication Skills Convincing Skills Negotiation Skills Demonstration Skills Should always be active and have patience Proper grooming and etiquette Pleasing personality Basic Computer Skills Basically a Go-getter.
Definition of sales man Classify the salesmanship. Appearance of the sales man. Distinguish the benefits of becoming sales person.
PHYSICAL QUALITY
SOCIAL QUALITY
MENTAL QUALITY
MORAL QUALITY
To create first impression is the best impression, he must be attractive, cheerful and smart appearance. He must have sound health and well-pitched voice. To manage his time effectively he should be a selfstarter To clinch the order he must perseverance
A sales man is required to move in different circles and meet various customers. So, he must develop good manners like empathy, patience, friendly approach, adaptability, positive view...etc. He should not have hesitation, shy, fear and he must be master in art of conversation. He must always handle the objections enthusiastically.
A sales man must have a good power of memory and observation. He must have complete knowledge of product, customer, market and competitors. Thinking critically he foresight the problems and solve it. He must be initiative and confidence to achieve his ambitions.
Be honest in whatever he does. For doing right thing at right time he must sincere, courteous, politeness towards customer. He must be loyal to both his organization and customer.
Qualities of good salesman. Grooming of sales man How to develop the good qualities. Acquire knowledge on salesman qualities.
Learning Objective: The objective of this assessment is to understand the concept of salesmanship, and qualities of a good salesman.
Present ability:
It refers to the process of retail selling. The various steps in this process are:
1. Connect with the customers: The sales man goes beyond the technique of smiling making eye contact and small talk to build a friendly image in customers mind. He should present product information with confidence.
2. Probe need subtly: By communicating freely with the customer, striking a harmonious not and asking open question, the needs of the customers can be understand even if they are not spelt out clearly.
3. Presenting Merchandise: The merchandise has to be presented properly without loss of time. The salesperson should initiate the trial of the product by the customer and give truthful opinions.
4. Handling objections: The customers doubts ought to be clarified by the salesperson to his/her satisfaction. Sometimes the price of a product may be compared with those of competitors; a clear rational for the price, by showing trade journals and product hangtags.
5. Recognize buying signals: The salesperson must respond quickly to buying signals, which may come in the form of certain positive statements by the customers. Salesperson should sensitive to customers moods, attitude, and reactions and find when to stop talking and close the sale.
6. Selling up and selling on: Selling up means increasing the ticket size by offering the larger- value item to customers. Ex: giving two liters oilcan instead of 1-liter oil pouch. Selling on means offering related products with customers chosen products. Ex: when customer buy shirts give a suitable tie with it.
7. Closing the sales: The salesperson initiates the process of preparation of the cash memo for the customer and leads him or her to the cash counter for making payment. Closing the sale would also mean thanking the customer for the sale and for the opportunity to serve while extending an invitation to come again to the store.
Acquire knowledge of retail selling. Build the present ability. Improve the knowledge on retailing selling.
Be friendly Be helpful Be tactful Be gratitude Be sincere Be patience Show enthusiasm Dont gossip Know your self Study human nature Keep up-to-date Studying for life
Dont talk too much Stay calm Never criticize the buyer policy Always make best use of the opportunity Not be a go getter but a go giver The too most important words are you and we Perseverance mottos Pay yet another call A winner never quits, and a quitter never wins
It is for you to empathize with the prospect on meeting them and to create a favorable atmosphere for the sales interview. Meaning:
It means making initial conduct with prospects to capture their attention and interest
Prospects:
Before making a sale by the salesperson, the buyer is called as a prospect.
Customer:
After making the sale by the salesperson, the buyer is called as a customer.
Leads:
These are introductions to possible customers given to the salesperson by the existing customers / prospects or any other sources.
Identifying the potential of buyer move in the existing customers Recommendations of existing customers Winning back lost customers Attracting competitors customers Customers information request from advertisement Newspaper announcements Public records Directories like telephone, trade associations, etc, Other salesman References from friends, neighbors and business associates Cold canvassing that is going from door to door
Discuss on salesperson attitude and approach. Demonstration skills Types of approaches Differentiate between prospects and customers
To achieve logical and emotional objectives in selling, ask questions to the customer to define their problem in their own words. This gives an opportunity for the sales man to listen to customers grievances.
Types of questions: A. Direct or open question: These begins with what, why, when, where, how, who, which etc. These questions are asked when a salesman want to get more information from a customer.
Ex: How do you think this product will be benefiting you?
B. Indirect or close question: This begins with do, can, have will, etc. This question leads the customer to give response like yes or no. Ex: Can I help you? C. Reflective question: These questions repeat the last phrase of a key phrase, which said the customer. Reason for reflective question is create interest, indicate that sales man listening customer intently, make the salesman to direct the route of interview.
Listening skills are probably more important than talking skills. Listening is needed in order to recognize a persons reasons for wanting to possess, and this relates to either individual or organizational buyer behavior. the professional salesperson can understand which points of the merchandise to emphasize as part of the sales routine. Successful sales people know when to talk and when to listen
Learning Objective: Explain the different problems that sales persons encounter
The climate. Work timings or shifts The organizational climate Colleagues, and Boss Salary Distance from hometown Accommodation Food & Drinking Water Loneliness Boredom
Sale Objections Separation from family life Personal family problems Separation from friends Glass ceiling (Most of them likes to work under a lady boss hence the growth for a women can be hampered sometimes) Sexual harassments.
Learning Objective: Explain the different sales techniques that a sales person uses.
Planning
Planning is very important in any aspect and the planning is for doing the actions perfectly. Six parts of questioning are (what, why, when, where, who, how)
this is one of the major sales technique, some of the following factors which determine the size of territory.
The number of likely customers in the are concerned Extent of ground to be covered Possible of volume of sales Frequency of visits required Intensity of selling is required The time taken up by each interview Convenience of getting to one place to another including modes of transport provided or available. The rates at which the shopkeeper buys and resells Whether the article is easy or difficult to sell.
Preparation: Product: Before starting the selling job, a sales man should make a valuable investment of time and resources to know the product Customer: Know the customers (customers types, buying motives and buying process) to whom he will be selling Competitor: Know your competitors against whom, he will be selling and finally know the philosophy, policy and range of products of his company. Company: In short he should be well (Prepared) equipped with the fundamentals of selling
Prospecting
Develop sales leads from various sources. Separate the suspects from the prospects. By using MAN technique (M: - Money to spend, A: - Authority to pay, N: - A real Need)
Pre approach:
Check whether you have all materials in your hand Understand what each specific call is for and what it entails Decide on the maximum potential that can be gained from each and what is the minimum acceptable to you. Decide what the intermediate point of return between those two. Role play in your mind the likely scenario of the interview Psyche yourself up and visualize as a successful man at each interview.
Approach:
Meeting the customer with a positive set of mind To make an impact on him.
Presentation:
The sales presentation is closely related to the consumers buying process. Its purpose is to secure desire and action. Most commonly used technique is AIDA, which is acronym for Attention, Interest, Desire, and Action.
Handling Objections:
It is the last phase of the sales presentation step that the prospects start expressing doubts or raising objections whether relating to the price need for more time to think, satisfied with the existing product or supplier or product quality claims.
Negotiating:
A discussion between two sides, each with something to offer the other, on the terms and conditions of an exchange, with the objective that the resultant of the exchange is of benefit to both parties. Negotiation follows when prospective customers like what they see, but want to haggle about the price. So negotiation begins when the prospect wants to buy and salesman want to sell, but he still have a few details to thrash out regarding terms and conditions.
It involves direct and personal contact of the seller or his representative with the perspective buyer. It is face-to-face and oral communication with the potential customers for the purpose of persuading them to buy certain goods and services.
Pre-sale preparation Prospecting Approaching Presentation Demonstration Handling objections Choosing the sale Post sales follow up
What is glass ceiling? What are problems related to working hours for women? What are problems related to physical strain?
Direct selling: Selling through sales force ex. Door to door, shop-to-shop etc. Indirect selling: Selling through advertising, promotion and publicity. These are done to creating awareness about the product and help to make a good sale. Personal selling: It is done by human interaction (oral representation in conversation) thereby providing instant feedback ex. Telemarketing, door to door Non-personal selling: Absence of human interaction ex. Selling through internet (e-commerce)
Product selling: selling products to costumers through a sales person ex. FMCG selling. Concept selling: selling an idea to bring awareness in public about the product. Ex. Space selling in news magazines, T.V. slots Institutional selling: selling a brand name. ex. Company shares, APTECH & NIIT courses.
Meaning of benefit: A benefit is the value of the feature to the customer A feature is a distinct part of a product or service. Meaning of selling benefits: many feature of a product or service are of advantage, and the sales person should always translate these into terms of benefit for his/her selling.
E Efficiency used
N Novelty - the quality of being new S Safety - the state of being "safe" C Convenience - anything that saves or simplifies work, adds
to one's ease or comfort
A Appearance - the way that someone or something looks. D Durability - staying strong and in good condition over a long
period of time
Product: an item that ideally satisfies a market's want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.
Marketers have traditionally classified products on the basis of characteristics like Durability, tangibility and use (consumer and industrial) those are as follows.
Product
Consumer
Industrial
FMCG
Durable
Non Durable
Electronic
Non Electronic
Brown
White
PRICE: It is the exchange value of the product or service expressed in money. Price involves around two elements of utility and value. Influencing factors of pricing: The two types of factors influencing on price are internal and external factors Internal factors:
Objective of the business Cost of the product Distribution channel policy Product stage its life cycle Product Differentiation
External factors:
Competitors price Buying patterns of Customer Economic Environment Government policy Social and ethical considerations.
The price of the product includes the cost of the raw materials, overhead costs, employee salary, transportation costs, taxes, and other profits of the intermediaries. Pricing Methods:
Cost based: (This will depend on the product cost) This is again divided into four types (Markup price, absorption price, BEP, Marginal Price) Demand based: This will depend on the product demand. This is also divided into 3 types (Skimming the cream, penetration, moderate) Competition based: This will depend on competitors effectiveness on the product. This is also divided into 3 types (Premium price, discounted, parity)
Absorption price : TVC + TFC + Profit Q BEP: No Profit No Loss Marginal Price: the premises of recovering the marginal cost. This method work in a market is already dominated by firm.
Skimming the cream: New Product, high Cost Penetration: Low cost, same Product Moderate: According to market
Premium price: More than Competitor Price Discounted: Less than Competitor Price Parity: Equal to Competitor Price
Session Objective: Explain how the product is reaching the doors of the customer
They gather information about potential and current customers, competitors, and other sources in the marketing environment. Assist in sales promotion and merchandising. They facilitate the sales process by being physically close to customers. Aid in the new product introduction in the market. Break the bulk and cater to the small size requirements of buyers. They bridge the makers and users efficiently and economically
Questions to be covered in written examination: Explain the classification of product? What is Price? What is the pricing strategy followed by BATA? Explain about importance of classification of product? Explain the pricing methods of different products What factors influence on price? Explain the Distribution channels.
Zero-level channel: It is also called a direct channel. It consists of a manufacture selling directly to the customer. Ex: door-to-door, mail order, Tele-marketing etc. One-level channel: It contains one selling intermediary, such as a retailer. This channel is often used for the distribution of consumer durables and products of high value. Ex: Super markets, departmental stores. Ex: Reliance Fresh, Subhiksha etc.
Two-level channel: It contains two intermediaries. In consumer markets there are typically a wholesaler and a retailer. This is the traditional or normal channel for distribution of consumer goods.
The study of the storage of goods in commercial building for meeting the gap between demand and supply. Every company has to store the finished goods until they are disposed in the market. The storage function helps to smoothen discrepancies between production and demands. The stocks should be located near the market place, so that they can be easily made available to the customer whenever the need occurs. Warehousing facilities are provided by public warehouses, private warehouses and bonded warehouses.
Transportation is any device used to move an item from one location to another. Common forms of transportation include planes, trains, automobiles, and other two-wheel devices such as bikes or motorcycles. It also refers to the process of shipping or moving an item from point A to point B.
Learning Objective: The objective of this assessment is to better understand the Distribution channels, warehousing, Inventory & transportation, promotion and sales promotion.
Meaning: Sales promotion consists of all promotional activities other than advertising, personal selling and publicity that helps increase sales through non respective and one time communication.
It will attract the new customers Sales promotions often attract the brand switchers Sales promotion are unlikely to turn then into loyal users It will improve the market share
Coupons Free Samples Cash refund Point of purchase Discounts Premiums Exhibitions Free trails Clearance sale
The term advertising originates from the Latin word adverto it means to turn around Advertising thus denotes the means employed to draw attention to any object or purpose. Definition: As any paid form of non-personal presentation and promotion of ideas, goods and services, by an identified sponsor it includes newspapers, magazines, and other media.
Announcing a special reason for buying now Building a familiarity in the minds of customers Easy recognition of the package or trade mark Building up a morale of sales force Creating Brand knowledge Building up an image
I. Benefits to Producers:
It helps in increasing sales volume It also helps establish direct contact between the manufacturers and customers It will create the good will to the firm
Print Media: Newspapers, magazines and journals. Audio/visual/Media: Radio, Television. Direct mail advertising Out door advertising Through internet Windows display and wall writings etc.
Brand is a name, term, sign, symbol or design, or a combination of them intended to identify goods or services. Types of brands
Symbol brands Heritage Brands Exclusive Brands Belonging Brands Legendary Brands
It refers to creating, filling, wrapping and it is known as the 5th P by packaging the goods protect themselves from spoilage, breakage and leakage. It is also called as a silent salesman.
Labels or identification marks or originality code, i.e. in weight, size, price, date of manufacture and expiry. It is classifieds into three types.
Brand label: it gives information about product. Grade label: It deals quality and grade of the product. Descriptive illustrative label: It gives information about date of manufacture, expiry and quantity, contents, necessary instructions about price.
Public relations :involve a variety of programs designed to promote or protect a companys image or its individual products. Public relation is one of the element of promotion mix, it spend time counseling top management to adapt positive programs like. Press coverage: Giving perfect information about the organization. Product publicity: Sponsoring efforts to publicize specific products. Corporate communication: Development of organization through internal and external communication. Lobby: Dealing with legislations and government officials to promote or defeat legislation and regulation. Counseling: advising management about public issues and company positions and images during good times and arises.
Customer is one who buys the product and the consumer is a person who actually uses it. E.g. A father (customer) buys a chocolate but his daughter (consumer) eats it.
Time waster: He is a person who has entered a shop just to forget his worries or spend the time. He has no specific motive to buy. It is better to leave them alone, discourtesy to be avoided because he may visit the shop again and book his sales. Silent customer: He keeps silent and thinks that silences shield him from buying commitment so a sales man induced him by asking questions like do you agree, sir? Can I write the order, sir? Shy customer: He is not bold to express his views about product. So, the salesman treats him with friendly approach. Talkative customer: He goes on talking which not relevant to the product under sale. So, sales man politely invites his attention to the main subject.
Impatient customer: He does not like the long arguments and bargaining, so, sales man gives quick attention and prompt services to him.
Suspicious customers: He doubts every word of the sales man. So, salesman pertinently strives to show concrete proof to him and dispel his doubts. Argumentative customer: Raising some issue for argument and tries to show that he is better informed. So, the sales man skill fully pickup logical arguments and answer them courteously. Rude and ill-mannered customer: He talks curtly, shouts and laughs unnecessarily, mishandle the demo products. So, salesman with liberal view attends them promptly with patience and without prejudice. Conceited customer: suffers from superiority complex that he knows everything. So, salesman should stress on the sophisticated nature of goods to the customer sense of pride and prestige.
Purchase decision:
Buying motives: Buying motives can be defined as all the impulses, desires and considerations of the buyer, which induce a buyer to purchase a given product. Basically buying motives are two kinds. Product Motives: These impulses, desires and considerations that make people buy certain products are called product motives. It divides into two types Emotional product motives are those impulses which persuade a consumer to buy a certain product without evaluating the plus and minus points of the action Rational product motives on the other hand involve a logical analysis of the intended purchase Patronage motives: The influences that explain why they buy from particular firms and shops are called patronage motives.
Importance of customer behavior: Consumer behavior is helpful in understanding the purchase behavior and performances of different customers. Customers differ in terms of sex, age, educations, occupation, and income, family set up, religion, nationality and social status.
Cultural factors: Cultural factors exert the broadest deepest influence those are like culture, subculture and social classes. Social factors: In addition to culture factors, a consumers behavior is influenced by such social factors as reference groups, family, roles and status. Personnel factors: A buyer decisions are also influenced by personal characteristics like age and stage in the life cycle, occupation, economic circumstances, life style, personality and selfconcept. Psychology factors: A persons buying choices are influenced by psychological factors like motivation by others, perception, learning, beliefs and attitudes.
It refers to increasing the customer loyalty towards a product / brand / company by maintain a relation with the existing customers.
For any organization/store to be successful, its important to know and understand the client, their requirements and fulfill their expectations to create a Wow. Benefits of Record keeping:
1) You are aware of the customer needs 2) You wish the customer and call him by his last name, he becomes happy & delighted 3) At the time of promotion/sale/discounts, the customers can be sent mass messages to attract them to the store
Take all the objections as opportunities and try to convert negatives objections and convert them to positive sale.
Similar to a Group it is a number of people BUT the necessary qualities of the Team are as follows:
Complementary Skills Common Purpose Mutual accountability Common Goal
Effective teams have a clear vision and mission, brought in by members There are defined values set in place All members are involved even when not participating directly. Each member has a role to play. Goals are set, measurable and are made known to all Clear Action Plans are drawn up to achieve goals Effective teams communicate well, both formally and informally Both formal and social culture is open, and is based on mutual trust. Team members give and share credit Conflict resolution mechanisms are clearly established
The definition of ambience is atmosphere or mood created around in and the store is ambience of the store. Ambience should create positive image of the store. Customer by the name of the store itself should be able to visualize the store. For e.g. Pizza Hut, the moment you think about it you visualize an image of a fine dining restaurant with excellent services, good food, with smiling faces around. Similarly while speaking of Mc Donalds picture of very fast service with young, energetic and smiling people around comes to our minds. Ambience should encourage customer to spend long time in store and should be always conducive for shopping.
It is an art of endowing services making the customer feel at home. Ambience, the quality of staff service, presentation, and warmth all contribute to comfort factor. Personal Hygiene and grooming salesperson:
Hair should be cut close. The uniform should be spotless and well ironed. A tight or oversized uniform gives a sloppy appearance. Shoes should always be polished and of a conservative style. Bad breath could be nauseating to a guest since the waiter speaks to the guest at close proximity, so keep a check on this.
Learning Objective: Explain the concept of Safety and its importance in the Retail Store.
General office safety, which includes proper spacing, storing, moving and actions in the office premises. While office work may not be considered as a high-risk activity, unsafe work systems and layout may result in injury or illness. The components for a safe working environment are: Spacing:
Adequate office space is allocated for the working personnel. All furniture, fittings and equipment shall be arranged so that staff can move about without collision with sharp corners of desks etc. Ensure that enough room is available for opening filing cabinets. Only one drawer of a filing cabinet shall be opened at any one time. All drawers should be closed after use.
Movements:
Chairs desks or drawer should never be used to access higher areas. Stepladders shall be used. Electric or telephone cables shall not trail unprotected across the floor.
Storing:
Dangerous waste e.g. broken glass shall be carefully disposed off. All items stored above head level shall be stored properly to prevent falling. All damaged floor covering, furniture equipment or machinery shall be reported, replaced or repaired.
Tell General:
1. Electricial Safety 2. Triping, Faling, Slipping 3. Florr Safety 4. Accident Reporting 5. First Aid 6. Fire Exits & Emergency Evacuation
How to overcome:
Ensure to follow Store Opening and Closing Procedures All Lights, Electricity to be switched off before store closes
Company Policy and procedures to be followed in case of the following or get in touch with the Duty Manager to avoid any inconvenience:
Billed But Product Not Given To Customer Indecent Behaviour By The Staff Member Customer wrongly accused for fraud Goods fallen on the customer Minor/MajorAccident in the Store. Customer Disputing the Price Customers Return the Product. Valuables belonging to customers are missing Indecent behavior by customer Drunken customer Power failure in store General fire handling procedures Armed Robbery