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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES


OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND CAMPUSES
SANTA ROSA CAMPUS
City of Santa Rosa, Laguna

INSTRUCTIONAL MATERIAL FOR


PROFESSIONAL SALESMANSHIP
(MARK 30033)

COMPILED BY:

LUCILLE A. GAHOL

March, 2021

“ HE OUNTRY’S OLYTECHNIC ”
TABLE OF CONTENTS:

UNIT I - SALESMANSHIP: ITS NATURE AND REWARDS


Lesson 1 History of Salesmanship in the Philippines
Lesson 2 Distinction Between Selling and Salesmanship
Lesson 3 Selling is Servicing Your Prospect
Lesson 4 Forms of Selling
Lesson 5 The Manufacturer’s Sales People
Lesson 6 Salesmanship Not by Salesmen
Lesson 7 Advantages of Selling as a Career
Lesson 8 Disadvantages of Selling
Lesson 9 Social Reward of Selling
Lesson 10 Compensation Plans
Lesson 11 Fringe Benefits

UNIT II - THE SALESMAN’S RESPONSIBILITIES, DUTIES, AND QUALIFICATIONS


Lesson 1 Salesman’s Job
Lesson 2 Salesman as a Communicator
Lesson 3 Salesman as a Problem-solver
Lesson 4 Salesman as an Educator
Lesson 5 Salesman as Human Relations Expert
Lesson 6 Salesman’s Aim
Lesson 7 Common Duties and Responsibilities
Lesson 8 Qualifications for a Successful Sales Career
Lesson 9 Mental Characteristics of Sales People
Lesson 10 Famous Five P’s of Successful Selling
Lesson 11 Manners that a Salesman Ought to Observe
Lesson 12 Ten Commandments of Selling

UNIT III- CHARACTERISTICS AND BEHAVIOR PATTERNS OF CONSUMERS


Lesson 1 The Philippines as our Market
Lesson 2 Filipino Cultural Heritage
Lesson 3 Internal Behavior Fcators
Lesson 4 Nature of Prospect’s Information
Lesson 5 Other Sources of Prospect’s Information
Lesson 6 Characteristics of a Filipino Consumer
Lesson 7 Common Attitudes of Buyers that Salesman Usually Encounter
Lesson 8 Extroverts and Introverts
Lesson 9 Conditions which May Affect Prospect’s Attitudes

UNIT IV- CONSUMER MOTIVATION


Lesson 1 Motivation
Lesson 2 What Motivates a Buyer
Lesson 3 Reasons that Motivate the Buyer to Act
Lesson 4 Rational Buying Motives

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Lesson 5 Emotional Buying Motives
Lesson 6 Four Basic Denominators of Desire
Lesson 7 Reasons Why People Buy Industrial and Commercial Products
Lesson 8 Motives Why People Buy from a Particular Store, or Company
Lesson 9 Theories of Motivation

UNIT V- THE COMPANY: ITS PRODUCTS AND COMPETITION


Lesson 1 Customer Demands Facts
Lesson 2 Facts are Needed to Meet Competition
Lesson 3 Buyer has Confidence in a Well-Informed Salesman
Lesson 4 Knowledge Develops Personal Confidence
Lesson 5 Salesman’s Obligation to His Company and his Clientele
Lesson 6 Salesman’s Obligation to His Clientele
Lesson 7 Specific Information Important to the Salesman
Lesson 8 Facts about Company Products
Lesson 9 What to know about Competition
Lesson 10 How the Salesman Uses His Information

UNIT VI- PRICES, DISCOUNT, CREDIT POLICIES AND PRACTICES


Lesson 1 Factors to Consider in Making Pricing Decisions
Lesson 2 Factors Involved in Setting the Retail Price
Lesson 3 Types of Discounts
Lesson 4 Credits: Its Policies and Practices
Lesson 5 Four Types of Open-Charge Accounts
Lesson 6 Information about Credit Applicants

UNIT VII- PROSPECTING AND GETTING THE RIGHT START


Lesson 1 Reasons for Buying
Lesson 2 How and Where to Obtain Prospects
Lesson 3 Have an Organized Prospecting Plan
Lesson 4 Methods of Making the Appointment
Lesson 5 Planning and Delivering the Sales Presentation
Lesson 6 Types of Sales Presentation
Lesson 7 How to Deliver the Sales Presentation
Lesson 8 Getting the Customer’s Attention
Lesson 9 Dramatizing the Sales Presentation

UNIT VIII- HANDLING SALES OBJECTIONS AND CLOSING THE SALES


Lesson 1 Techniques of Handling Sales Resistance
Lesson 2 Motivating Salesman to Close a Sale
Lesson 3 When to Close a Sale
Lesson 4 Using the Trial Close
Lesson 5 The Timing of the Close
Lesson 6 How Often Should the Close Be Attempted
Lesson 7 The Fine Art of Closing the Sale
Lesson 8 Why Salesmen Have Difficulty in Closing Sales

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Lesson 9 Requisites for Successful Closing
Lesson 10 Creating Opportunities to Close
Lesson 11 Tactics and Strategies of the Close
Lesson 12 Specific Closing Strategies

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UNIT I- SALESMANSHIP: ITS NATURE AND REWARDS
OVERVIEW:

Personal Selling is a dynamic force that affects our everyday lives. Billions of pesos
worth of goods and services are sold each year through personal selling. Current trends in
development suggest that personal selling will play an even more important role in industry and
economy in the future than it does today.

What is Personal Selling? Richard T. Hise, author of Effective Salesmanship, defines,


personal selling as the employment of men and women who determine the needs of potential
buyers and attempt to persuade these prospects to satisfy their needs through the purchase of
products and services.

Salesmen are widely used by big manufacturing firms, wholesalers, and retailers in
selling their products. Even service companies such as insurance firms, stockbrokers,
advertising agencies, television, and radio stations employ salespeople.

Selling also includes advertising in its variety of forms: Print media (i.e. newspapers,
magazines), radio, television, and out-door advertising (billboards, stickers, etc.). Direct mail
selling, display and sales promotion strategies, like trading stamps, contests, raffles, discounts,
buy one take one offer also considered means of selling. All of these are called non-personal
selling devices.

The function of non-personal selling or pre-selling is to communicate a message to


groups of people; it is a one-way rather than a two-way conversation. Almost all non-personal
selling paves the way for personal selling. This is the primary purpose of advertising and
display.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Explain what Personal Selling is.


2. The History of Salesmanship in the Philippines
3. The purpose of selling.
4. Describe what Salesmanship means.
5. Identify the rewards and benefits of selling.
COURSE MATERIALS:

Lesson 1 HISTORY OF SALESMANSHIP IN THE PHILIPPINES

History says that the Philippines had trade relations with foreign countries like Japan,
Siam, Cambodia, Borneo, Sumatra, Java, and China. A Spanish document of 1586
noted that the Filipinos were “keen traders” and have traded with China for many years,
before the colonization of Spain.

“ HE OUNTRY’S OLYTECHNIC ”
Since currency was not used then as the medium of exchange, the primitive method of
trade was barter- the direct swapping of a product for another product. When Yung Lo
(1402-1424) became the emperor of China, he sent a large fleet containing sixty vessels
of merchandise to the Philippines, under the command of Admiral Cheng Ho. The
Chinese Traders were very much impressed and satisfied with the natives for their
honesty and prompt payment of their obligations. The word “cheat” is not in the
vocabulary of the ancient Filipinos. It is also interesting to note that our interaction with
China gave birth to our Tawad system, suki, tingi, and pakyaw system.

Lesson 2 DISTINCTION BETWEEN SELLING AND SALESMANSHIP

A large segment of society believes that selling and salesmanship are one and the same
time. This concept is not quite correct. While selling and salesmanship are interrelated, there is
a fine distinction between the two.

Salesmanship is the art of convincing and persuading people to buy the product, while
selling is just transferring the title in goods, service or idea with a valuable consideration. Selling
is not as complex as it seems. For example. Where a continuing relationship has been built up
between salesmen and clients, repeat orders may call for little if any persuasion. If the prospect
has been presold in any variety of ways, all that maybe necessary is some discussion of the
terms of sale before taking the order. A minimum of sales talent is required if the product or
service offered is comparatively inexpensive, when the prospect is well aware of the product’s
merits, or when the product is so well established that is purchased with a minimum of thought.

Salesmanship is the ability or skill in selling. It is the art of influencing or persuading


people to buy a commodity or service. Salesmanship is the style of determining and discovering
what motives will be aroused and what needs will be satisfied. This is where the talents of a
salesman are being harnessed to the best advantage of the company.

Lesson3 SELLING IS SERVICING YOUR PROSPECT

Selling is not a solitary activity. It is a continuous relationship between the buyer and the
seller. The salesman’s effort is useless if he is not able to make a sale. In other words he is not
able to serve his prospective client. Selling is servicing people, discovering their needs, and
helping them act to buy. The salesman provides his prospective client with the latest market
information and advice about goods and services, advertising, and merchandising problems
related to the sale of the product.

A salesman is of service to his company if:


1. He represents the company in the area entrusted to him;
2. He increases and generates more profit for the company;
3. He manages his time and improves on his weak points;
4. He submits his reports, correct and on time;
5. He adheres to company policies and methods; and
6. He works in harmony with his superiors as well as with his fellow salesmen.

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Lesson 4 FORMS OF SELLING

Selling may take many forms, but all these will fall under two classifications:

Personal Selling or Direct Selling- is a direct face to face interaction between the buyer
and the seller. It is an oral presentation through conversation with the buyers with aim of making
a sale. Nowadays personal selling is also known as “hard selling” or “pressure selling”. It is an
aggressive and direct approach to buyers.

PREPARATION PROMOTION PRE-APPROACH

PRESENTATION POST SALE ACTIVITIES

“AIDA”
FIGURE 1.1 5P’s of Selling
Attention
Interest
Desire
Action

Non-Personal Selling- This is selling through the aid of some forms of media like
advertising, window displays, samplings, and other forms of promotion. This type of selling is
also known as “soft selling”. No sales effort is required on the part of the salesman only gentle
and subtle persuasion using the different promotion techniques.

Lesson 5 THE MANUFACTURER’S SALES PEOPLE

They are sales people who may sell to wholesalers, retailers, or other middlemen. A
factory owner may solve his sales problems by making arrangements to dispose of his entire
product to some individuals, or to some companies that will be responsible in marketing it.

A. The Pioneer-Products Sales People- These are individuals whose function is to


secure outlets for a new product to wholesalers, distributors, and dealers. To
attain success in this particular field of selling, one must be self-reliant, self-
generating, aggressive, and imaginative.
B. The Dealer-Servicing Sales People- Sales people of this type need not be as
aggressive or imaginative as the first type. They contact retailers or wholesalers
at frequent intervals, offer whatever goods they have, thus preventing his

“ HE OUNTRY’S OLYTECHNIC ”
established group of outlets from an “out-of-stock” situation. Persistence,
enthusiasm, warmth and friendliness are necessary traits for this type of
salesman.
C. The Merchandising Sales People- They differ from the pioneer-products man
and the dealer-servicing man in such a way that their chief duty is to promote
sales. They are sometimes called “sales promoter” because they gather latest
information about their target market, give advice and counselling to middlemen
and try to favorably influence sales volume.
D. The Wholesalers Sales People- This refers to an individual who acts as the
intermediary between the manufacturer and the retailers or industrial users and
carry thousands of unrelated lines of merchandise in a warehouse where they
are quickly available to dealers.
E. The Retailer’s Sales People- They are considered important links in the
marketing channel because they are both marketers and consumers. They
execute many marketing activities like buying, selling, grading, risk taking, sales
people are customers of producers and wholesalers.
F. The Specialty Sales People- They carry only one complete line of merchandise.
The merchandise they sell are usually higher in prices and call for personal
selection by customer.
Consumer Goods Specialties- This type of sales people handles
products such as vacuum cleaners, refrigerators, encyclopaedias,
brushes, cosmetics, greeting cards, books, or pots and pans.
Industrial Goods Specialties- They sell products like cash registers,
office machines, industrial machines and they are trained to render
service as well as to make sales.

Lesson 6 Salesmanship Not by Salesmen

Selling is not only confined to people who are called salesmen. Selling or salesmanship
also involves:

1. Politicians- A politician sells himself. He persuades his constituents to vote for him.
2. Priest, Ministers- They convince the whole congregation for a continued financial
support and persuades people to join the congregation, like Ernest Angley, Pat
Robertson and many others.
3. Doctors, lawyers, teachers, secretaries- They sell their expertise.
4. A job applicant seeks employment with his expertise as his weapon and commitment to
his prospective employers.
5. A lover offering his love and affection to his sweetheart.
6. Organizations for a cause: Philippine National Red Cross. Philippine Cancer Society,
Community Chest.

Lesson 7 ADVANTAGES OF SELLING AS A CAREER

As the saying goes, “Every man is the architect of his own fortune.” We acknowledge the
fact that the choice of a right career leads to success and satisfaction in one’s work. Managing
that career follows and this includes one’s entire life, both during and outside of working hours.

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1. Relatively high income.
2. Travelling
3. Satisfaction of rendering service
4. Chance for advancement

Lesson 8 DISADVANTAGES OF SELLING AS A CAREER

It is true that the advantages of selling as a career are many. However, there are
corresponding disadvantages. Selling is more than just a matter of talking, having contracts, or
mastering the products.

Long hours of work: No specific hours of work for a salesman. Sometimes he works from
10 to 12 hours a day, or 60 to 70 hours per week. They have to be away from home for
extended period of time, which may cause family problems or personal tensions especially for
salesmen who have children.

Compensation is not on a regular basis: Irregular income is difficult to budget. This


explains why wives of salesmen force their husbands to look for other jobs with steady income.

Lesson 9 SOCIAL REWARD OF SELLING

Professional selling must be to the mutual satisfaction of both buyer and the seller.
Under this situation a good business relationship is established. Selling eats up all the waking
hours of a salesman. He is always talking to people, convincing them to buy his products.

In selling you meet a lot of people. The salesman must therefore be sociable. There is
no other job aside from selling that can give opportunity for unlimited financial rewards.
Moreover, salesmen get to meet interesting personalities. Salesmen do not remain static; they
have continuous interaction with people.

Lesson 10 COMPENSATION PLANS

Sales people would like regular income reward for above average performance, and fair
compensation for experience and longevity. In order to motivate the salesman to sell more, he
must be compensated on the basis of profit contribution rather than on just sales volume.

The computation of compensation varies from company to company depending on the


responsibilities sales people exercise with respect to pricing and discounts, customer credit,
product mix, use of available time and selection of promotion and advertising media.

Compensation plan should be flexible in order to meet the ever-changing activities of our
business environment like territory variations, sales person’s ability and maturity, product
changes, price changes, special sales, inventory adjustments, return privileges, and other
resulting from environmental influences and on-the-spot decisions.

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Three Basic Compensation Plans
1. Straight Salary Plan
2. Straight commission Plan
3. Combination of salary and incentive plan

Lesson 11 FRINGE BENEFITS

Fringe benefits do not have any bearing or direct relationship to job performance. They
range from 25 to 40 percent of the total sales compensation package. Big companies furnish
salesmen special bonus as an incentive for them to be aware of other companies product and to
remain loyal to the company.

Fringe benefits like financial rewards are considered motivating factors. They satisfy the
security needs of the salesman. It helps to lessen job dissatisfaction and serves as an
inspiration for the salesmen to sell more. As provided by law, fringe benefits include medical,
disability and death benefits, pensions, insurance, retirement benefits.

WATCH:

 Personal Selling
(https://www.youtube.com/watch?v=xuMFep7qd9s)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:
1. What is Salesmanship? How does it differ with selling?
2. What are the important requisites of salesmanship?
3. When do we apply salesmanship?
4. What is the importance of salesmanship in our economy today?
5. What is the key to professional selling?

UNIT II - THE SALESMAN’S RESPONSIBILITIES, DUTIES AND


QUALIFICATIONS
OVERVIEW:

To be successful as a Salesperson you must have excellent communication skills. A good


Salesperson meets sales objectives while remaining polite and helpful to customers.

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Salesperson Responsibilities:

 Greet customers.
 Help customers find items in the store.
 Check for stock at other branches or order requested stock for customers.
 Provide customers with information about items.
 Ring up purchases.
 Elevate complaints to management.
 Keep track of inventory.

Salesperson Requirements:

 A degree in Sales, marketing, commerce or a related field would be advantageous.


 Excellent communication skills.
 Flexible work hours.
 Basic mathematic skills.
 Prior experience in retail.
 Excellent customer service skills.
 Motivation to work through busy shifts.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Determine what salesman’s responsibilities, duties and qualifications.


2. Identify salesman’s job.
3. Characteristics and abilities of a salesman.

COURSE MATERIALS:

Lesson 1 SALESMAN’S JOB

The job of a salesman is to get an order. Money, time and effort spent by a salesman will
prove to be useless if at the end of the day he is not able to make a sale. Getting an order is the
complete realization of the selling process, but actually its real objective is to provide “service”.
The salesman is the important link between the consumer and the producer. He is in a position
to interpret the people’s needs and selling to them goods and services which they are willing to
buy. He serves people by selling goods considered to be tangibles, and the services,
intangibles.

Lesson 2 SALESMAN AS A COMMUNICATOR

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The sales presentation is a method of informing prospects or customers about the
product, service, or idea. The salesman must be an expert in communicating to his prospects
the good side of his proposition. He must correlate his ideas with the particular needs and wants
of the customers, making his job easier. Most salesman believe that the sales presentation is
not a monologue in which they do all the talking.

Lesson 3 SALESMAN AS PROBLEM-SOLVER

A large segment of our population have come to regard the salesman as a high pressure
persuader whose sole aim is to convince the buyer to purchase something which he does not
need or want. The salesman is there to be of service to the public.

The salesman as problem-solver must take into consideration the following factors
before helping a buyer arrive at the best decision. The salesman must look into:

1. The need to be satisfied


2. The product to satisfy the need
3. The source of the product
4. The price to be paid
5. The time to buy

Lesson 4 SALESMAN AS AN EDUCATOR

Patience plays a very important role in the life of a salesman. He must realize that is it
not easy to convince a prospect. He must be ready to point out, to explain, to discover and to
show to his prospects the advantages of buying the product. This can be done through the skill
and intelligence of a salesman.

Lesson 5 SALESMAN AS A HUMAN RELATIONS EXPERT

The human factor is important in selling. The salesman must be aware of his own
personality, with the people he comes in contact, with. He must fully understand the role of
personality in the process of making buying decisions. Knowing consumer behavior and buying
attitudes, will greatly help him sell more.

The salesman must not only have a genuine liking for people but he must also think and
act with the prospect’s interest in mind. This way, the prospect develops trust and confidence in
the salesman leading the way to a sale of the product.

Lesson 6 SALESMAN’S AIM

Since all salesmen deal with the sale of products, services and ideas, certain goals must
be achieved. The aims of a salesman should be:

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1. To sell himself: as the reliable trusted man with whom consumers will do business; a
person who understand and use the general principles of selling; a good person who will
treat his prospects with courtesy and respect.
2. To sell the company: a firm who will help in satisfying the needs and wants of the
prospects; progressive company who has fair dealings and responsibilities to its
prospects.
3. To sell the product: a product that promises to satisfy the needs and wants of
consumers; a product that has undergone a great deal of concentrated study, extensive
research, and observation which will serve the customers at the lowest possible cost.

Lesson 7 COMMON DUTIES AND RESPONSIBILITIES

People in the selling business usually have some specific duties to perform depending
upon the type of selling they perform. They may sell tangible or an intangible product. They may
prefer to sell direct to consumers or to sell to a middleman.

Direct Selling: Promoting company goodwill. The salesman is the company’s


representative to its customers. This may require the cultivation of the appropriate outlets and
the entertaining of selected accounts.

Advising and Counselling: This activity involves the supplying of information to help
solve the customer’s merchandising, marketing or management problems.

Handling complaints: This activity requires the salesman to make the adjustment himself
or to recommend a settlement, to the home office for its consideration.

Attending sales meeting: Theses meetings may be held periodically to inform and
instruct the salesman on new products or policies, or to stimulate sales activities.

Lesson 8 QUALIFICATIONS FOR A SUCCESSFUL SALES CAREER

What criteria does an individual have to meet to be considered a successful salesman?


Rate yourself under the following qualifications and get an idea whether selling is the right
career for you.

Qualities Needed for Successful Selling


Source: Effective Salesmanship by Richard T. Hise

EDUCATION PERSONAL
CHARACTERISTICS
SUCCESSFUL
SELLING C
WORK HABITS
& EXPERIENCES
PERSONALITY

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LESSON 9 MENTAL CHARACTERISTICS OF SALES PEOPLE

In evaluating people, we identify differences in mental as well as physical characteristics.


It is therefore necessary to explore some of the differences in mental characteristics as they
apply to selling.

1. Honesty 9. Ambition
2. Responsibility 10. Adaptability
3. Courage 11. Industry
4. Loyalty 12. Observation
5. Resourcefulness 13. Enthusiasm
6. Confidence 14. Courtesy
7. Imagination 15. Tact
8. Showmanship 16. Dominance

LESSON 10 FAMOUS FIVE P’S SUCCESSFUL SELLING

1. Product: The salesman must have a thorough knowledge of his product.


Determine if the product will solve the problems of the prospect and eventually
satisfy their needs and wants.
2. Personality: Adapt yourself to different personalities you meet. The salesman is
the mirror of his company, so he must possess a personality that will have a
strong appeal to the consumers.
3. Perseverance: Selling starts when the customer says “NO”. It is like when the
girl you are courting says “NO”. There is still actually some hope.
4. Prospect: Get acquainted with your prospect and don’t waste your time with
“china eggs”. Go on the next one. Never judge your buyers by his personal
appearance or his home.
5. Picturesque Presentation: Use your imagination while you are trying to
describe something to the clients. Whether the sales representative is selling a
tangible or an intangible product he must impart a mental picture of the product
as it exist in reality.

LESSON 11 MANNERS THAT A SALESMAN OUGHT TO OBSERVE

1. Look pleasant and neat


2. Wear simple clothes
3. Good voice and diction
4. Have a firm handshake
5. Avoid tapping the desk with the fingers or a pencil
6. Buttoning and unbuttoning one’s coat, and annoying physical movements such as
crossing and uncrossing one’s legs or nervous tapping on the floor with one’s foot.
7. Avoid the repetitions of such phrases as “see what I mean” and “you know”, or starting
every sentence with “Now” or “And”.
8. Remember the names and surnames of individuals you deal with. If you are careless in
this matter then people now will suspect that they aren’t important to you, except fro
what you get out of them.

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9. Do not argue with the customer
10. Avoid stepping on sentences

LESSON 12 TEN COMMANDMENTS OF SELLING

1. Speak to people
2. Smile at people
3. Call people by name
4. Be friendly and helpful
5. Be cordial
6. Be genuinely interested in people
7. Be generous with praise
8. Be considerate of the feelings of others
9. Be thoughtful of the opinions of others
10. Be alert to give service
11. Keep your promises
12. Smile
13. Keep physically fit

WATCH:

 Functions, Duties and Responsibilities of a Salesman


(https://www.youtube.com/watch?v=g9mgMh27YnY)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. Is mutuality of interest necessary in selling? Why?


2. What are the different factors that a salesman must look into before approaching the
prospect?
3. Has a salesman completed his obligation to his customers if he makes sure that they
always get their money’s worth?
4. What are some of the difficulties involved with selling a service that are not encountered
in selling a product?
5. Is experience really necessary in selling? Why?
6. Do a Reaction Paper on this topic.

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UNIT III- CHARACTERISTICS AND BEHAVIOR PATTERNS OF
CONSUMERS

OVERVIEW:

The consumer market includes all the individuals and the entire households who buy or
acquire goods and services for personal consumption and resale. Manufacturers are trying their
best to develop products and services that will cater to the needs and wants of the consumer
market. When developing markets, purchasing power or the ability to pay for the goods and
services. A complete knowledge of how people derive satisfaction from the product or service is
a deciding factor for manufacturers in deciding the scope of their product or service in our
complex economy.

They spend so much money, time, and effort in studying consumers’ behaviour in order
to learn:
Who buys?
How do they sell?
When do they buy?
Where do they buy?
Why do they buy?
What motivates them to buy?
Where can I find my prospects?

The salesman who really understands how his prospects will respond to different
product features, prices, appeals, etc. will have an edge over his competitors.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Identify the characteristics and behavior of the consumers


2. Determine the Filipino culture.
3. Identify the reference group influence.
4. Describe the characteristics of the Filipino.

COURSE MATERIALS:

Lesson 1 THE PHILIPPINES AS OUR MARKET

The Philippines is a huge archipelago. Said to be the largest archipelago in the world, it
is composed of 7,100 islands of which 800 are inhabited. There are 52 provinces with a town
center (poblacion) for every municipality and the surrounding areas divided into villages
(barrios). The Philippines is said to be a chain of islands south of Formosa and north of
Indonesia, with palm-lined shores, paddy fields and carabaos, forest, beautiful lakes, breath
taking volcanoes, and hospitable people. The people enjoy a warm climate the whole year

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round. The Philippines is an agricultural country which provides livelihood for about 2/3 of the
population notwithstanding that only one fifth of the land area is under cultivation.

There are three official languages: Pilipino, English and Spanish with 80 different and
distinct dialects. Inspite of the differences in languages, the people are united in mind and spirit.
The Salesman must study the Filipino consumer well in order to avoid difficulties in his
presentation.

Lesson 2 FILIPINO CULTURAL HERITAGE

The Filipino of today shows the traces of many cultures principally Malay, Chinese,
Arabic, Indian, Spanish, Japanese, and American. The physical features, the language, attire
and food habits of the Filipino bear marks of these cultures.

The Filipino, as a people can be studied in three different parts:

1. His Foundation
2. His Heart.
3. His Mind.

Lesson 3 INTERNAL BEHAVIOR FACTORS

Studying the buying behaviour of Filipinos usually involves complicated series of


processes, for we all know that Filipinos as a people are quite unique as compared to other
people in the world. Filipino buyers prefer to buy an assortment of goods and services that
provides current and future satisfaction. Most often they prefer to buy goods whenever their
need arises.

Regardless of what type of buying decisions they may use, Filipino buying behavior is
affected by a number of factors such as internal and social influences.

The internal behavioral factors that influence the buying behavior of Filipinos are:
1. Perception
2. Motives
3. Learning
4. Attitudes
5. Personality

Lesson 4 NATURE OF PROSPECT’S INFORMATION

Almost all people in the selling business require at least two types of information about
their prospects; personal and business. A sales representatives may find it easy for using little
or no business information in selling to housewives. Other sales representatives may encounter
difficulties in qualifying his prospects.

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Personal information includes the important facts about the individual whom the
salesman gets in contact with. These individuals maybe the end user of the product, the
purchasing agent, or the buying representative of a company.

Business information refers to facts about the company, or firm or institution with which
the buyer is connected. The sales representative will have an effective sales presentation if he
is quite prepared about all the business facts of the company. He can focus his presentation
based exclusively upon the facts or data gathered.

Lesson 5 OTHERS SOURCES OF PROSPECT’S INFORMATION

1. Salesman’s personal observation. Personal observation is perhaps the most reliable


source of prospect’s information. This is usually done by the salesman before the sales
interview.
2. Asking questions. Reactions to questions asked may give a clue whether the prospect
has the need for the product, his ability to pay and his authority to buy.
3. Use company records. When the company hires salesmen, it usually provides them
with list of customers within the territory assigned.
4. Sales manuals and training materials. At the very outset, companies provide their
salesmen with sales manuals which describe the different types of customers and
clients.
5. Making contacts with company employees. The new salesman can expand his
territory by having probable contacts with the employees of the company. The salesman
can benefit much by taking advantage of his predecessor’s experiences and knowledge.
6. Contact other salesmen. Salesmen of non-competing companies will gladly give the
information desired especially if the salesman securing the information will use a lot of
public relations.
7. Through experience. A salesman devotes time in studying customers’ behavior. He
likes to serve people.

Lesson 6 CHARACTERISTICS OF A FILIPINO CONSUMER

The Filipino as a consumer possesses certain typical characteristics different from


consumers of other nationalities.

1. Personalism. A trait among Filipinos which gives more emphasis or importance to the
user rather than to the product or service.
2. Authoritarianism. Filipino consumers regard with high esteem individuals in authority,
like the chief, boss, or manager.
3. Small-group centeredness. Filipino consumers are well identified with small groups.
“Status symbol and his peers influence his buying process”.

“ HE OUNTRY’S OLYTECHNIC ”
Lesson 7 COMMON ATTITUDES OF BUYERS THAT SALESMEN USUALLY
ENCOUNTER

Big companies do provide their salesmen a classification of customers for the purpose of
orienting them with the various personality types which they may come in contact with in their
selling activities.

When the salesman finds out that some of his prospective customers do not fall within
the exclusive personality classification, he should pinpoint prospect’s attitudes, moods, or
frames of mind.

There are four common attitudes of buyers usually encountered by the salesman. These
are:

1. Attitude of dependency. Exemplified by the buyer’s timid manner are the shyness,
frequent questions, lack of response, nervous mannerism, desire to listen or inability to
make the decision.
2. Attitude of skepticism or suspicion. This is manifested by the buyer’s tone of voice,
by his tendency toward ridicule, by his statement of past experiences with some
companies salesmen, by his desire to put everything in writing, by his attempts to secure
extra discounts or rebates or by his demands for proofs.
3. Friendly attitude. This clearly indicates the buyer’s talkativeness, interest in discussing
irrelevant facts to the sales presentation, agreeableness, willingness to spend time
listening and ease in side-stepping answers to the salesman’s questions.
4. Businesslike attitude. This attitude id evidenced by the prospect’s intelligent questions
and willingness to purchase the product based on the value or merits of the product or
service.

Lesson 8 EXTROVERTS AND INTROVERTS

These are certain norms of behavior that a salesman must not ignore but this does not
imply that a salesman can employ this method of measurement. There are certain clues or tips
to a man’s personality which must be given consideration.

Big companies educate their salesmen to “size up” their buyers on the extrovert-
introvert scale. The following are the characteristics commonly found in an extrovert buyer:

 He laughs frequently and readily.


 He usually likes to talk.
 He may be a rather fluent talker.
 He is cordial and pleasant in manner.
 He enjoys being called by his first name.

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On the other hand end of the scale is the introvert prospect. His characteristics are listed as
follows:
 He is reserved.
 He seldom laughs
 He questions the salesman’s motives
 He wants reasons, facts, and details.
 He speaks infrequently of social activities.

FIGURE 3.2 A FRAMEWORK FOR UNDERSTANDING BUYING BEHAVIOR

SOCIAL FACTORS
ROLES
FAMILY INFLUENCES
REFERENCE GROUPS
SOCIAL CLASS
CULTURE
BUYER DECISION MAKING
NO PURCHASE

ROUTINE EXTENSIVE
INTERNAL FACTORS PURCHASE
PERCEPTION
MOTIVES SATISFACTION
LEARNING
ATTITUDES
DIS- SATISFACTION
PERSONALITY

Lesson 9 CONDITIONS WHICH MAY AFFECT PROSPECT’S ATTITUDE

Consumers behavior differently, rationally or irrationally. To different or even under the


same condition. A salesman should take note of all of these factors so that he can fit himself
better to the situation and have a well-rounded understanding of his consumers. Conditions
such as these may cause a person to react differently at various times:

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1. Physical environmental factors such as temperature, humidity. Altitude, ventilation,
illumination, distraction, or other stimuli.
2. General organic states such as fatigue, hunger, sleepiness, moodiness, comfort, or
discomfort, anger, anxiety, frustration, and triumph.
3. Specific conditions induced by chemicals such as alcohol, tobacco, caffeine, morphine,
and medicine taken for pain or cold.
4. Incentives and motives such as praise, reproof, rivalry, reward and punishment.

WATCH:

 Factors Influencing Consumer Behavior


(https://www.youtube.com/watch?v=UL6imegssbQ)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. What are the different cultures imbedded in the personality of a Filipino?


2. How do the Chinese and Spaniards affect our economic and social life?
3. How will you describe the Filipino as a consumer
4. What benefit does it give to the salesman when he asks questions to his prospect?
5. Why it is necessary for the salesman to study the characteristics and behavior patterns
of consumers?
6. Short Quiz

UNIT IV- CONSUMER MOTIVATION


OVERVIEW:

Selling requires motivation. Most sane behavior is motivated. Why do people act the way
they do? Though we cannot easily detect the motives behind human behavior, we can say that
people do have reasons for their actions. When an individual consumer buys something, his
action is a motivated behavior: people do not just buy things without reasons. A good salesman
tries to discover what really motivates his prospects and then base his presentations around it.

A good salesman who intends to make a sale, must understand his prospect’s personal,
emotional, and social behavior through asking questions, listening, and observing: He can
adjust his presentations based upon the prospect’s mental-emotional tempo.

“ HE OUNTRY’S OLYTECHNIC ”
The study of human behavior, which includes buying behavior, involves a complicated
series of stimulus and response reactions to many factors or motives. These motives maybe
expressed or unexpressed, which are based upon deep-rooted needs or more openly felt wants.
(Allan Reid. Modern Applied Salesmanship. 1975.)

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Determine what motivates a consumer.


2. Describe reasons that motivate a buyer.
3. Identify the consumer behavior.
4. Describe theories of motivation.

COURSE MATERIALS:

Lesson 1 MOTIVATION

Walker, Churchill, and Ford, in their article on motivating industrial salespeople, defined
motivation as:
… The amount of effort the salesman desired to expend on each of the activities or tasks
associated with his job, such as calling on potential new accounts, planning sales presentations
and filling out reports.
The motivational process maybe illustrated as below:

Need Goal-Directed Goal Reduced


(Tension) Behavior Achievement Tension

According to behavioural scientist there are three factors involved in the motivational
process: (1) behavior of men or women is neither rational nor random- it is goal oriented. If
sales manages would like to understand the behavior patterns of why people behave the way
they do, they must understand their employees goals. Motivation starts with the individual needs
or wants. (2) the processes by which people satisfy their needs are learned- very few are
instinctive. (3) most people are socially inclined- other individuals and social groups are
responsible for other people’s behavior and the way they satisfy their needs.

Lesson 2 WHY THE NEED TO MOTIVATE

Salesmen constantly experience rejection and frustration in their job. Sometimes prospects
do not grant appointments or do not show up during the appointed time. Through some will be
accommodating during sales presentations, many others will not be interested at all.

And of course, there are other problems such as: orders are not delivered on time, incorrect
merchandise is shipped, merchandise is short-shipped, quality does not conform to the
standard, credit is turned down by his company, etc. the salesman needs the support and
cooperation of his manager in order to minimize these problems.

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The morale of a sales staff is directly related to the satisfaction and enjoyment they
obtain from their jobs. Morale is elevated to a certain degree if the salesman’s job is okay;
customers enjoy buying the product and there is a harmonious relationship existing among the
salespeople.

Lesson 3 WHAT MOTIVATES A BUYER

The big problem that confronts a salesman is to determine what motivates a buyer to
buy. Asking your prospect is not enough because most buyers do not know what really
motivates them. Sometimes, they give a rational answer when the real motive might be a deep-
seated, highly irrational desire. Buyers have to reasons for buying or not buying- a stated
reason and the real reason.

In selling, there are several factors that may influence the buyer’s decision. It could be
that he does not like to spend his money. It could be that he does not like the face of the
salesman. Perhaps, he does not like to be pushed into buying.

Lesson 4 REASONS THAT MOTIVATE A BUYER TO ACT

We know that a buyer is highly motivated when he automatically buys the product. The
question is “what makes the buyer buy the product at once?” Buyers are motivated to buy by
external and internal forces. These includes rational and emotional motivations.

External Forces
External forces are the sum of total of an individual’s social environment. These includes
one’s nationality, the geographical area of residence, his race, religion, occupation, income, the
products being sold, price, and advertising.

Social classes also determine one’s status in society. Reference groups also affect an
individual’s self-concepts. Every individual belongs to several sociological groups. The family is
also considered important in the formation of attitudes and behavior patterns of an individual.

Internal Forces
Internal forces are classified into two groups:
1. Rational Buying Motives. They are motives that involve conscious reasoning about a
course of action. Reason or intelligence is involved in the purchase decision. The
salesman ought to present valid reasons for purchase.

Rational buying motives are classified into:


1. Economy- people buy the product because they want to economize. They want to get
their money’s worth in whatever they purchase.
2. Desire for quality- people buy the product primarily because of quality,
notwithstanding its price.
3. Convenience- there are buyers whose primarily consideration is convenience. Price
and quality are not as important to this kind of consumers.

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2. Emotional Buying Motives. These are irrational motives which prompt the buyers to
buy a certain product. These motives may be caused by suggestions, description or
association of ideas. This is sometimes known as “impulse buying”.

 Ease and convenience


 Profit and thrift
 Safety and protection
 Play and relaxation
 Pride and prestige
 Love and affection
 Sex and romance
 Adventure and excitement

Lesson 5 FOUR BASIC DENOMINATORS OF DESIRE

According to the research made on motivation by behavioral scientists, there are four
common denominators of desire upon which most needs and wants are based.

1. Physiological or Biological Needs. These are the inborn needs of man. They are also
called biogenic needs of man. Some examples are: the need for food, clothing, shelter,
warmth, sex and money to buy all these things. These needs must be satisfied first
before you go to the next level of need.
2. Self-fulfillment Needs. It represents one’s ultimate desire to contribute something to
society, to do something worthwhile, and to enjoy the better things in life.
3. Psychological Needs. These refer to the need for stability or consistency in ideas and
beliefs and the desire for an orderly environment. This calls for job security, pensions,
and insurance, bank deposits, memorial plans and other investments.

Lesson 6 REASONS WHY PEOPLE BUY INDUSTRIAL AND COMMERCIAL


PRODUCTS

1. Profit- the purpose of a business enterprise is to earn profit. Profit is the justification of a
company’s existence. As a salesman, you must be aware of the ultimate aim of a
business enterprise.
2. Economy- most retail stores and purchasing agents base their purchases on economy.
They are interested in products that may help the company lower down the production
costs, lessen interruption in production.
3. Uniformity or Output- this is the concern of manufacturers of brand products who have
to produce products of uniform sizes, quality or color.
4. Flexibility- this correlates with the economy motive. Business establishments buy
products which can adjusted and adapted as the situation demands, such as a
mimeograph machine which can be adjusted and adapted to produce printed post cards,
bulletins, or color posters as well as letters.
5. Salability- any buyer of commercial of industrial products takes into consideration their
salability. The company will consider to buy a product if such will contribute to the beauty
and appeal of his finished goods.

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6. Protection- other buy the product because of some features of the product that will give
extra protection to a company’s plant and equipments or its employees.
7. Utility- refers to the use of the product. The product must have the following features:
strength, durability and serviceable. Purchasing agents and store operators usually
provide specifications on the qualities and characteristics of the product they have in
mind, and the salesperson must be able to meet them.

Lesson 7 MOTIVES WHY PEOPLE BUY FROM A PARTICULAR STORE OR


COMPANY

The urge that makes people buy or make purchases on a regular basis are called
patronage motives. A person may shop at a specific store because of several factors that
motivate him to shop.

To capitalize on patronage motives, the salesman must know why regular customers
visit or patronize his store and then emphasize these features in the different displays of the
product. Some of the important reasons (patronage buying motives) why consumers patronize a
certain store are:

1. Convenience of location- good location attracts customers. Buyers prefer stores which
are ideally or strategically located.
2. Price- some companies make a “low price” appeal of the items that they are selling. For
most people, price is the primary consideration in buying an article.
3. Assortment of merchandise- stores engage in large scale merchandising like
department stores and supermarkets offer a wide array of merchandise to the public.
4. Sales personnel- the sales personnel in a business establishment also determines the
number of customers coming inside and outside the store. Friendly, smiling, well
dressed, neat and clean looking salesclerks attract more customers.
5. Reciprocity- “you scratch my back and I’ll scratch yours.” Industrial and manufacturing
companies are engaged in reciprocal buying and selling activities. This arrangement
saves money and time for both parties concerned.
6. Quality- people in the upper bracket of society give more emphasis on the quality of the
product they intend to buy. Only reliable stores usually sell goods of good quality.

Lesson 8 THEORIES OF MOTIVATION

There are five major theories of motivation, they are:


1. Need Hierarchy Theory- This particular theory was advocated by A.H. Maslow, a
clinical physiologist, and was considered the most widely referred theory of motivation.

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2. Achievement Motivation Theory- this is also known as Need Achievement Theory
which states “that a major portion of an individual’s will to perform can be explained by
the intensity of his or her need for achievement.”

This particular theory was advocated by Henry A. Murray and his associate, David C.
McClelland and was adopted to the sales and business environment.

3. Motivation Hygiene Theory- is also known as the two factor theory and the dual factor
theory. This theory is closely associated with the factors affecting work motivation which
was researched by Frederick Herzberg and his associates in the mid 1950’s.

According to this theory, the factors involves in producing job satisfaction and motivation
are quite different from the factors involved in producing job dissatisfaction. Job
satisfaction is not the opposite of job dissatisfaction. An individual is either satisfied or
not satisfied.

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4. Expectancy/ Valence Theory- the first motivational theories give more emphasis on the
proper identification of specific needs and how it affects the behavior of an individual.
The expectancy/ valence theory is more concentrated in understanding the processes or
dynamic relationships among the variables as they affect the individual behavior.

WATCH:

 Consumer Behavior Motivation


(https://www.youtube.com/watch?v=wEY1hHpIN1I)

 Theories of Motivation
(https://www.youtube.com/watch?v=YV_LBx3t6pA)

“ HE OUNTRY’S OLYTECHNIC ”
READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. What is the meaning of motivation?


2. How will you distinguish need from want?
3. As a general manager, what would you do to motivate your salesman?
4. Whom do you think are easier to motivate, younger or older people? Why?
5. Explain a situation favourable to the use of the reinforcement theory of motivation.
6. Class Debate (Topic: Theory of Motivation).

UNIT V- THE COMPANY: ITS PRODUCTS AND COMPETITION


OVERVIEW:

This low level of performance among the salesmen has been concern of all companies.
Among the reasons identified for their failure to measure up to the standard of an effective
salesman are the lack of confidence and enthusiasm.

The desirable traits of confidence and enthusiasm are developed among salesmen if
they have a complete and working knowledge about the company they represent. These days a
salesman cannot just rely upon fast talking, a pumped-up personality, and a bag of tricks to
produce a large volume and profitable sales.

A thorough knowledge of consumer behavior and characteristics is as essential to a


salesman as through knowledge of factual information about his company, its products, and its
competitions to represent his company, effectively.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Describe and distinguish the customer demands.


2. Identify the facts needed for a competition.
3. Define knowledge and characteristics on how to develop personal confidence.
4. Describe the salesman’s obligations to his clients.

COURSE MATERIALS:

Lesson 1 CUSTOMER DEMANDS FACTS

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With the rapid advancement of technology, there are many products flooding the market
place that most of the customers have no knowledge of. They certainly need the help of the
salesman. In most cases the good salesman’s advise and counsel are requested by the
customers and his statements are interpreted as those of an expert and authority. A salesman’s
incorrect statement or information may injure the company’s name and certainly will be less
respected by the customers.

Lesson 2 FACTS ARE NEEDED TO MEET COMPETITION

If the salesman is unable to explain the merits or construction of his products, or if he is


unable to quote company policy accurately, there is always a competing salesman who is eager
and willing to supply another product and to give the buyer all facts pertaining it. Most buyers
know they have a choice when they plan to buy. They are eager to get information on hoe one’s
products or services compare with other’s products. The salesman who has prepared himself
with full knowledge of his company, its products and competition does not fear competition.

Lesson 3 BUYER HAS CONFIDENCE IN A WELL-INFORMED SALESMAN

Most of the present day customer ask many questions about so many things before
making their purchases from company product to competition, even the future of the company. If
the salesman provide an accurate information about what his customer is asking for, he loses
the confidence of the customer. There is really nothing more important for the salesman than to
equip himself with knowledge about the company.

Lesson 4 KNOWLEDGE DEVELOPS PERSONAL CONFIDENCE

There is an old adage that says. “Knowledge is Power”. This truism still holds true today,
not only in the field of selling but practically in all aspects of human endeavor. As discussed
earlier, the knowledge of the company, its products and its competition develops a reputation for
the company, develops enthusiasm among salesmen, and a feeling of self-confidence.

Lesson 5 SALESMAN’S OBLIGATION TO HIS COMPANY AND ITS CLIENTELE

When a salesman joins a company, he enters into that relationship of working out
satisfactorily for both himself and the company. The company expects that the salesman will be
loyal to the firm, he will present himself as a good man with whom to do business, he will project
the image of the company as a fair dealing. Actually, the company expects the salesman:

1. To make money. Once the salesman is hired, the long range duty is turn in a profit. The
firm wants to continue in business and its expects the salesman to help in carrying out
this objective. Since the customer is considered the life-blood of business, a salesman is
required to render satisfactory services to the company’s clientele.
2. To work conscientiously. When the company hires a salesman, it assumes the
burden involved in adding a new employee. The company spends for his training, and of

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course, for his compensation. This is in turn should be reciprocated in terms of industry,
hard work, and intense desire to make a sale, thus adding profit to the company.
3. To be loyal. The salesman who works with the company of his choice should
demonstrate unquestionable loyalty. Loyalty to the company is shown in various ways.
The loyal salesman acts in the way the best represents his company.

Lesson 6 SALESMAN’S OBLIGATIONS TO HIS CLIENTELE

1. To treat them ethically.


2. To help them
3. To adjust customer complaints.

STORES POLICIES ON VARIOUS TYPES OF COMPLAINTS

The major types of complaints can be classified as dissatisfaction with merchandise,


with salespeople and with store policy.

Handling complaints about merchandise. When the retailers products do not meet a
customer’s expectations, the customer will often return them to the store. Handling merchandise
returns efficiently is only fair to customers and can be easily administered by the retailers.

Handling complaints about salespersons. Sometimes salespersons make unrealistic


promises, oversell an item, or are not courteous or downright rude. These kind of behaviors
naturally produce unhappy customers. Retailers can avoid or minimize complaints about their
salespeople through effective recruiting, training, and compensation policies.

Handling complaints about store policy. There are stores that have their invoice. “The
customer is always right”. But when goods are returned, they do not accept.

Lesson 7 SPECIFIC INFORMATION IMPORTANT TO THE SALESMAN

Knowledge of the company. A salesman should know the growth and development of
the company; its origin, when founded, size of early plant, philosophy of management, financing
and growth of the firm. The salesman should be acquainted with the early period of the
company, the period when the struggle was bitter and the outcome uncertain. Specifically, a
salesman should know the following aspects of the company:

1. History of the company


2. Executive personnels
3. Personnel and labor relations
4. Plants and branches
5. Financial status
6. Management policies
7. Distribution methods
8. Organization
9. Research and investigations

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10. Competitive position

Lesson 8 FACTS ABOUT COMPANY PRODUCTS

Product knowledge is a must because the job of selling requires first and foremost a
thorough knowledge of what he is selling. A salesman should know the product history. He must
know the manufacturing processes and the standard of the product. Knowledge about this
phase of the product gives him more confidence in himself and his merchandise, supplies him
with more selling points, invites the prospect to be more confident and enables him to supply all
the answers to the questions that may be asked by the prospects. He can benefit by knowing
what designs are being tried or being experimented on, what designs are being discarded
before other designs may be created.

1. Product line. Another important product knowledge is on its product line. Many
companies have diversified their product line.
2. Price. Price is the value of goods and services expressed in terms of money. Price level
is the correct word for a single product, and the salesman will find that his price will
either be above the market or below the market price.
3. Selling features. The salesman must be able to enumerate the basic selling points of
the products he handles. It is known for its economy, flexibility, always in style, the
lowest price with highest quality, its saving features and its varied uses? Due to research
conducted by most companies, many of their products are multi-purpose.
4. Knowledge of competition. Competition means two or more companies are vying for
market share and profits. Shortages and inflation tend to intensify the level of
competition.

Competitive advantage grows out of value a firm is able to create for its buyers that exceeds
the firm’s cost of creating it. Value is what customers are willing to pay, and superior value
stems from offering lower prices than competitors for equivalent benefits or providing unique
benefits that more than offset a higher price.

Lesson 9 WHAT TO KNOW ABOUT COMPETITION

A salesman should bear in mind that product competition clusters around two basic
points, product comparison and selling activities.

Product comparison. The first essential thing a salesman should know is how his product
stands up against competing products. He should lean all the strong and weak points about
competitive brands and makers.

Selling activities. The salesman should know his competitors and their style of
presentations. To understand fully competitive selling activities is to know first who the
competing salesmen or representatives are.

Lesson 10 HOW THE SALESMAN USES HIS INFORMATION

“ HE OUNTRY’S OLYTECHNIC ”
Knowledge alone is insufficient to guarantee the success of any salesman. While
knowledge is essential, the intelligent and skillful use of the knowledge which has been acquired
differentiates the average from the superior salesman.

1. Organize the information. The salesman should organize his information so that it may
be used effectively in actual selling situations.
2. Use facts buyer wants or needs. Many customers are unable to recognize the merits
of the product without some help.
3. Show how facts benefit the customer. The customer is interested in facts about the
product or company only to the extent to which these facts have a bearing on the
solution of his wants and needs.
4. Use the language of the trade. The use of correct terminology implies that the
salesman is well versed with the product.
5. Be specific. Defined statements lend authority to the presentation. Words must be
chosen carefully to secure the greatest descriptive power and impact.
6. Use positive comparisons. When comparing the company product with a competitor,
the salesman should paint a positive picture.

WATCH:

 Traits of a Good and Bad Salesman


(https://www.youtube.com/watch?v=PB95WE6N5U8)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. Long Quiz
2. How can a salesman develop confidence in himself?
3. What knowledge should a salesman have about his company and its competitors?
4. What errors in presentation should the salesman avoid?
5. How should competition be handled?
6. Do a Reaction Paper for this Topic.

UNIT VI- PRICES, DISCOUNT, CREDIT POLICIES AND PRACTICES


OVERVIEW:

Every business enterprise aims to get the highest possible volume of sales and of
course, profit. These objectives guide and influence many marketing and non-marketing

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decisions, because selling of more units can bring both short-term and long-term benefits to a
firm. These objectives could be realized through the proper balance of all the components of
the marketing mix namely good product design, attractive packaging, effective advertising, and
impressive selling system among others.

Price is the value of a thing or service expressed in terms of money. However,


economists dealing with the relations of price to different forms of economic activity and with
their own interrelations find that they must take pains if they are to keep their conceptions of
price clearly defined and consistent.

Commodity prices are not the only prices with which marketers should be concerned of.
Securities such as bonds or debentures, stocks or shares and bills or notes have their prices.
Foreign exchange rates express the price of current funds in one market in terms of current
funds in another market.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Discuss the factors in making prices decisions.


2. Identify the types of discounts.
3. Describe and determine the credit policies and practices.

COURSE MATERIALS:

Lesson 1 FACTORS TO CONSIDER IN MAKING PRICING DECISIONS

The extensive exercise of sound judgement is a requisite before a retailer or any


businessman can make an effective pricing decision.

Duncan, 1972, presented some points which are worth considering in pricing:

1. Consistency. Prices of commodities or services should be consistent with the rest of the
operations of the establishment.
2. Long-run point of view. What businessman should maintain is the long-run point of
view in pricing.
3. Price-level and maximum profits. Higher prices do not always bring about maximum
profits and conversely lower prices do not ensure loss.
4. Pricing as an art. Setting price should also be artistic in its own right. Price policies
provide a basis for price decisions, but the use of judgement, intuition, and trial and error
to adjust the set-prices would be deemed advisable.
5. Basic pricing decisions. Retailers make a number of fundamental decisions about their
general pricing policies and practices.
6. Competitors’ prices. Normally businessmen set their prices at almost the same level as
their major rival (e.g. a sari-sari store owner considers the nearby sari-sari stores, rather
than bigger grocery stores, as his competitors whose prices he has to meet).

“ HE OUNTRY’S OLYTECHNIC ”
7. One-Price policy. In the Philippines, one-price policy, or fixed price which is charging
the same price for everyone who buys the same items has been practiced long time ago.
8. Variable-Price Policy. The price paid by a customer at a given time for a certain item is
determined by bargaining process between the customer and the salesperson.
9. Leader-Pricing. Some retailers price certain products (called “leader”) just above their
delivered cost price. A “loss” leader is an article that is actually sold for less than its cost,
including its delivery.
10. Unit-Pricing. Is a relatively new concept in retailing. It applies to items that are sold or
liquid measure.
11. Price-Lining. Customers continuously crave for a wide-assortment goods when buying.
In line with this price-lining which consists of selecting certain prices and carrying
assortments of merchandise only at these prices was introduced.
12. Discounts. In general business usage, a discount is a deductions from the price of an
article or service offered to the buyer for a) paying cash, b) buying in large quantities,
and/ or c) for some other reasons (e.g. some stores extend discounts courtesy to their
employees and to certain type of customers to keep their trade).

Lesson 2 FACTORS INVOLVED IN SETTING THE RETAIL PRICE

A retailer should understand that these factors are important in price setting:

1. Customary price- Through the years customers have made up their own mind that they
are willing to pay a certain amount for a particular item.
2. Appearance of the goods- Another equally important factor in price setting is the
appearance of the goods.
3. Competition- Is another factor to be considered in pricing. It provides important
influence is setting retail prices.
4. Season of the year- The season of the year dictates the price of some items. When a
product is in season and there is an abundant supply, the tendency for the price is to go
down.
5. Price lines of the store- Many stores have predetermined prices established for various
kinds of goods. Establishments of certain prices reduces the amount of stock to carry in
order to maintain proper assortment.
6. Mark-up needed to make profit- The mark-up is needed to ensure the viability of the
business. Mark-up is basically the difference between the cost price and the retail price
of the good. There are five types of mark-ups:
 Individual mark-up
 Inventory mark-up
 Initial mark-up
 Another variation of mark-up
 Another type of mark-up or it’s called Additional mark-up

Lesson 3 TYPES OF DISCOUNTS

Retail stores offer prices to end users of the products in the same way that
manufacturers and other suppliers offer several types of discounts to stores to stimulate
business and encourage payment of bills.

“ HE OUNTRY’S OLYTECHNIC ”
1. Cash Discount. Is the amount that the seller allows the buyer to deduct from a bill if
paid within a certain time.
2. Seasonal Discount. Is a reduction in price given to those who buy before the usual
selling season.
3. Trade Discount. Is a reduction in price given to a certain class of buyers. It can also be
called as functional discount because it is given to a class of buyers to cover the cost of
performing their part or function in the distribution process.
4. Quantity Discount. Is a reduction in price given to retailers who buy in large quantities.
The larger the quantity the buyer has bought the larger the discount he can get.

Lesson 4 CREDITS: ITS POLICIES AND PRACTICES

Credit is the extension and acceptance of a promise to pay in the future. It is granted in
exchange for goods, services, money, or another debt given in the present. Credit supplements
money in the economy, and makes possible the sale of goods or services without immediate
payment of money by the buyers.

There are two kind of credit that are vital to retailers, namely: the Commercial or Trade
Credit, which is extended by manufacturers and wholesalers to the merchants who buy from
them, and the consumer credit which is used by an individual customer to obtain merchandise
or services for which he agrees to pay at a later time.

Why consumers use credit. Credit has become popular because it appeals to the
consumers for several reasons:

 Convenience
 Immediate use of high-priced items
 Possible savings
 Preservation of saving
 Income tax purposes
 Reasons why retailers offer credit

Lesson 5 FOUR TYPES OF OPEN-CHARGE ACCOUNTS

Regular Accounts, or 30 day account- requires the customer to pay the full balance of
the account at the end of the month or within 30 days. However, the account remains open for
future purchases.
90 Day charge accounts- is offered for large purchases such as appliances, furniture or to some
extent clothing. The purchaser need to pay the full amount at one time.

Revolving charge account- enables customers to charge all purchases up to the credit limit and
pay only part of the total amount due at the end of the month. Once the limit has been reached,
no more can be charged until a payment is made.

Credit cards- is a card usually made up of plastic or metal that can be inserted into a machine to
print the owners name and an identification number on a sales check.

“ HE OUNTRY’S OLYTECHNIC ”
Lesson 6 INFORMATION ABOUT CREDIT APPLICANTS

The three C’s of credit. The following are basic bases to judge whether an applicant
should be given credit or not.

Character- is the most important of the three C’s. It has to do with the individual’s sense of
responsibility in meeting his financial obligations.

Capacity- usually refers to the person’s ability to earn money. He must be capable to meet his
financial obligations.

Capital- refers to the wealth of the applicant. This means the physical and financial assets he
possesses. If a person owns property or has savings or other investments that can be put up as
security for an indebtedness, his credit potential is usually good.

WATCH:

 Discount Pricing Methods


(https://www.youtube.com/watch?v=sCphuZsHG1A)
 Credit Policy
(https://www.youtube.com/watch?v=7vq5BtmBkbE)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. What is meant by price, discount, and credit?


2. What factors should be considered in pricing?
3. Why do some customers prefer to buy on credit?
4. Explain the three C’s in credit granting. Which do you think is more important?
5. Do a Reaction Paper for this topic.

UNIT VII- PROSPECTING AND GETTING THE RIGHT START

OVERVIEW:

Once of the most important tasks of a salesman is to look for prospects. Success stories
of salesmen always begin with the right start of being prospect-minded as well as sales-minded.
What is meant by prospect? Prospect means the potential customer of a salesman’s product. A
salesman has already identified the ability of the person to buy the product.

“ HE OUNTRY’S OLYTECHNIC ”
Finding new prospects and obtaining interviews with them is one of the most important
phases of a salesman’s work. Unless a salesman has an effective plan for prospecting, he will
soon find his sales volume shipping.

Before a salesman can work out an effective prospecting plan, he has to be acquainted
with the different theories and practices surrounding the consumers’ buying behavior.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Identify the reason for buying of your target customers.


2. Determine and distinguish your target prospects.
3. Describe the Sales presentations.

COURSE MATERIALS:

Lesson 1 REASONS FOR BUYING

All individuals crave for something. This something is an assortment of many things.
Oftentimes, people have more desires than what can afford. So they try to evaluate consciously
or unconsciously the degree of satisfaction they derive from their purchases.

It has been proved that before buying anything, people must make five buying decisions:
1. The need for the product or service
2. The thing to fill the need
3. The source from which to buy
4. The price they are willing to pay
5. The time to buy

To understand why people buy, the salesman must know the motives behind every
purchase made by the customer. A buying motive is an urge or influence which prompts an
individual to spend his money for a particular product or service.

Universally, people are motivated by one or more of the following reasons:


1. Profit and gain
2. Saving and economy
3. Safety
4. Happiness
5. Pride
6. Fear
7. Imitation

Culture simply means the social heritage of a given group of people. The social heritage is not a
“thing” that is handed down intact, like a hope chest, from generation to generation.

“ HE OUNTRY’S OLYTECHNIC ”
 Subcultures- when people are no longer able to maintain face to face relationships
with more than a small proportion of other members of a culture, smaller units or
subcultures develop which help to satisfy the individual’s needs for more specific
identity.
 Social class- society becomes stratified socially on the basis of wealth, skill, and
power. Social classes develop when the members emphasize with others sharing
with them similar values and economic circumstances.
 Reference group- many young people identify themselves with reference group.
 Face to face group- this group has the most immediate influence on a person’s
tastes and opinions.
 The person- social influence determines to a great extent the behavior of an
individual; however, two individuals subjected to the same influences are not likely
to have identical attitudes.

Lesson 2 HOW AND WHERE TO OBTAIN PROSPECTS

After a salesman has gained knowledge about the theories and practices surrounding
his prospects’ behavior, he now is ready to start to look for prospects. Prospecting methods and
sources vary for different types of selling. A salesman of commercial chemicals like the product
of “Good Housekeeping” uses a different system of prospecting than that used by the real
estate, appliances, insurance, and memorial plans.

Some of the most commonly used methods of prospecting are as follows:


1. The cold-canvass method- in this method of prospecting, the salesman may call on
every individual or company belonging to a certain group of people.
2. The use of lists- some individual salesmen may develop prospect lists of their own by
referring to such sources, as public records, classified telephone directory, chamber of
commerce directories, trade association membership and religious membership lists.
3. Leads from sales managers- there are some fields of selling where the salesman
make regular calls on customers. Usually the sales manager provide the new salesmen
with lists of their predecessors’ active and inactive customers.
4. Leads from company advertising- most companies receive a steady supply of sales
leads from their advertising.
5. Friends and acquaintances- in many fields of selling both consumer and industrial
goods, the salesman’s friends and acquaintances serve as the nucleus of his source of
prospects.
6. The endless-chain method- when a salesman uses this method of obtaining prospect,
he attempts to obtain at least one additional prospect, from each person whom he
interviews.
7. The center of influence method- in this method the salesman cultivates a number of
persons in the territories who are either his friends, acquaintances, and customers and
who are willing to supply him with prospecting information.
8. Group prospecting- many companies which sell products such as Tupperware,
aluminium ware, encyclopedia, etc. rely so much on group prospecting as a means of
stimulating sales.

“ HE OUNTRY’S OLYTECHNIC ”
9. Use of junior salesman or spotters- there are companies which employ a junior
salesman who make canvass or survey to determine the needs of prospects.
10. The use of sales associates- in selling automobiles, sales associates work. The
associates provide the salesman with information concerning potential prospects, and if
the salesman makes a sale, the associate is given a share in the commission as a
compensation for his efforts.
11. Public exhibit and demonstration- this method of prospecting is a very effective one
especially when the product is new in the market. Many new products are sold after a
public exhibition and demonstration have been made.
12. Personal observation- a salesman can make his own personal observation as to needs
of a particular community or individual.

Lesson 3 HAVE AN ORGANIZED PROSPECTING PLAN

As mentioned earlier, a salesman should plan his activities before presenting himself to
his prospective clientele. Most prospects are busy and they are irritated when a salesman who
does not have an orderly plan to follow approaches them. An organized plan will require a
certain set of records and activities. This may include the following:

1. Keep good records- a salesman should keep an accurate and up-to-date record of his
clientele. The probable number of prospective customers in a definite territory should be
kept.
2. Set quotas- most effective prospecting plans include weekly and monthly quota this
giving the salesman a target everytime he goes out.
3. Evaluate results- all organized activities should be evaluated in terms of output. Usually
there are sets of objectives to be met.
4. Experiment with new methods- an aggressive and innovative salesman does not find
satisfaction in doing routine methods or approaches.
5. Follow through- this stage in prospecting is very important because unless a sale is
made all the prospecting efforts are wasted. If a salesman has already spotted, he
should follow through in order to convert him into a customer.

Lesson 4 METHODS OF MAKING THE APPOINTMENT

A part of an organized prospecting plan is how to make an appointment. Here are some
the most commonly used methods:

1. Personal call- the salesman makes a personal call to his prospect.


2. Telephone appointment- this is the easiest way of making an appointment.
3. Use of cards and letters- the most common method is the use of a letter.
4. Use of third parties- this procedure is similar to the referral method wherein the
salesman requests the friend of the prospect to make an appointment for him.
5. Use of samples- the approach is usually used by the door-to-door salesman.
6. Use of gifts- this practice is similar to the one used by other companies wherein they
give gifts to those who can provide leads to the salesman or to those who host a party
where the former can demonstrate his product.

“ HE OUNTRY’S OLYTECHNIC ”
Lesson 5 PLANNING AND DELIVERING THE SALES PRESENTATION

There is a great temptation for a salesman to call upon the prospect without giving a
serious thought to the planning of what to say and how to say it. Some salesmen are so
confident of themselves that they will just depend on the spur-of-the moment thinking when they
come face to face with the prospect.

The salesman should always beat in mind that sales presentation is the core of
salesmanship. It includes everything that the salesman wishes to achieve that advance planning
and preparation of sales interview are absolutely essential to success in selling.

Saves time of buyer and seller- one large company estimates that each of its industrial
salesman calls upon 500 regular customers during a year.

Aids beginning salesman- a well-planned sales presentation will help to relieve the
nervous strain in most beginning salesmen.

Insures effective presentation- planning the sales presentation in advance serves as


insurance against ineffective interviews and excessive number of lost sales.

Increases sales volume- careful advance planning of what price line to show first will
afford the salesman the opportunity to “trade up” to the higher-priced items during the sales
interview.

Lesson 6 TYPES OF SALES PRESENTATION

There are standard types of sales presentation. The three basic types of sales
presentation are the standard memorized presentation, the outlined presentation and the
programmed presentation.

The standard memorized- presentation is a carefully prepared sales story which


includes all the key selling points arranged in the most logical and effective order. The sales
presentation package is memorized by the salesman before he conducts an interview with the
prospect.

The outline presentation- this type of presentation differs from the standard memorized
presentation in that it is more flexible and need not be memorized. It consists of an outline of the
most important sales point arranged in a systematic order.

The programmed presentation- consist of a complete written or illustrated presentation


which is developed from a detached and comprehensive analysis or survey of the prospect’s or
customers’ needs.

Lesson 7 HOW TO DELIVER THE SALES PRESENTATION

“ HE OUNTRY’S OLYTECHNIC ”
The ability to communicate effectively is a necessity for all salesmen. Sales
appointments are made either by written communication or through the telephone. If it is poorly
done, the salesman has no chance of getting an interview with the prospect. Before a salesman
attempts to deliver his sales presentation, he should review his skills to give him better chances
of sales success. There are some pointers in oral communication which a salesman should
consider:

1. Prepare the outline of your presentation ahead of time.


2. Review and rehearse your presentation.
3. During the sales presentation, be alert for the reaction of your customers.
4. Take the point of view of your customer.
5. At the outset, make known the purpose of your visit and the topics to be discussed.
6. Make use of visual aids to augment graphically the spoken word.

Lesson 8 GETTING THE CUSTOMERS’ ATTENTION

There are many ways of setting the prospects attention:

1. Picture what your products will do for the customer. The first method for gaining the
customers’ attention or winning the interview is to give the customer a curiosity-
appealing, concise, clear-cut picture of how he will benefit from the use of the product.
2. Organize inside influence- the second method of winning the interview is organizing
inside influences so that they will work in your favor with the prospect who refuses the
interview.
3. Getting in by being unusual- the third method of winning the interview is being unusual
or using some unusual method. People pay no attention to common things or methods.
It is the out-of-the ordinary, the unusual that gains their attention.
4. Getting in gradually- the fourth method is winning the interview is to first secure the
customers’ favorable attention on the minor points. Gradual presentation is often good
strategy in getting the full line of products into an account as is indicated by the following
report.
5. Make an appointment with the prospect on friendly or neutral ground- make an
appointment with the customer at a time when he is not busy. The place is also an
important factor.
6. Put the customer under obligation to you- by doing him some favor. This is illustrated
by the following account of a housewife regarding a salesman who knows how to get an
interview.
7. Show your merchandise- another method of winning an interview is to show your
merchandise at once and transfer the customer’s attention from you to it.
8. Appeal to buying motives- the six most important buying motives: desire for money
gain; to save time, for health to save from worry, to gain respect or adminiration of
others, for self-improvement.

“ HE OUNTRY’S OLYTECHNIC ”
Lesson 9 DRAMATIZING THE SALES PRESENTATION

Dramatizing the sales message ensures maximum effectiveness because it is the best
way of communicating the idea. The presentation should be done with life and vigor. Sufficient
impact must be created to cause the prospect to believe the message, understand, and
remember it. The sales message must be sufficiently exciting and convincing to motivate the
prospect to a course of action.

There are five good reasons why a salesman should learn to dramatize his sales
presentation:

1. Dramatizing maintains buyer interest- a touch of showmanship aids in securing the


attention and maintaining the interest of the customer. Salesmen who solicit orders for
package-food goods from store buyers know that the way to sell soups and chicken
dramatically is to appeal to all five of the buyer’s sense.
2. Dramatizing convinces the prospect- buyers who convinced that the salesman’s
product satisfies their needs, and who are really prospects, usually buy. Dramatization is
convincing when answering objections and when closing sales- phases of selling
wherein buyer conviction is necessary if a sale is to be made.
3. Dramatizing facilitates understanding- many buyers are visual-minded and actually
lack the power to form clear images from the written or spoken word. Their
understanding can be reached best through the sense of sight.
4. Dramatizing creates a lasting impression- when a particular feature of a product is
dramatized vividly by the salesman, a strong impression is created. The customer may
actually almost experience the benefits claimed; he remembers the claims longer, and
he is more likely to tell his friends about the product.
5. Dramatizing aids the salesman- salesman finds that a good dramatic presentation also
builds up their own confidence in their abilities and in their products. Successful
dramatization requires the salesman to plan and to rehearse.

Some of the selling aids and techniques used to dramatize the presentation are:

 Charts and graphs


 Photograph, pictures and advertisement
 Manuals and portfolios
 Models, samples and gifts
 Films and slides
 Testimonials
 Words

WATCH:

 Sales Prospecting
(https://www.youtube.com/watch?v=554iUA81fu4)
 How to give Effective Sales Presentations

“ HE OUNTRY’S OLYTECHNIC ”
(https://www.youtube.com/watch?v=8eo01Wlkd4o)

READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. Short Quiz
2. What is meant by prospecting?
3. Give and explain some of the methods of prospecting.
4. Why should a salesman organize his prospecting plan?
5. How can a salesman get the attention of his prospects?
6. Explain the benefits of dramatization and sales presentations.

UNIT VIII- HANDLING SALES OBJECTIONS AND CLOSING THE


SALES
OVERVIEW:

Sales objections are resistance to sales. There are varied reasons why a prospect may
turn down an offer or refuse to buy certain product.

Handling objections and closing the sales constitute the very heart of selling.
Experiences salesmen and sales managers believe that selling has not really begun until the
prospect registers his objections. Sales managers think that a potential salesman may not prove
effective until he encounters objections from his customers.

As an experienced salesman knows that skill in handling objections is just as necessary


as skill in making appointments, in conducting interviews, in demonstrating or in closing sales.
Among the most commonly identified reasons for objections are as follows:

1. Negative psychological factors- it seems to be natural for human being to harbour


some degree of resistance to anything presented to him.
2. To get rid of salesman- some prospects voice numerous objections in an attempt to
dismiss the salesman.
3. Lack of money- persons who have no money to buy have been classified as “suspect”.
4. Product or service not needed- this is also another valid objection.
5. Need not recognized- the salesman may encounter objections such as “my business is
different” or “I have no use for your service”.
6. Desire for more information- some buyers offer objections in an attempt to secure
more information from the salesman.

“ HE OUNTRY’S OLYTECHNIC ”
7. Habit or custom- buyer’s objections are not limited to objections which are legitimate
and which cannot be overcome.
8. Value not equal to sacrifice- most buyers must sacrifice in order to buy.

LEARNING OUTCOMES: After successful completion of this module, you should be able to:

1. Identify on how salesman handle objections to its clients.


2. Determine on how a salesman close a sale.
3. Discuss the techniques and motivating factors that can help a salesman.
4. Distinguish and explain the opportunities and proper closing of a sale.

COURSE MATERIALS:

Lesson 1 TECHNIQUES OF HANDLING SALES RESISTANCE

After knowing some of the principles involved in handling objections, there are also
specific techniques that can be used in handling objections. The following are some of the many
techniques which have been used by successful salesmen:

1. Ignore- when the salesman can sense that the objection is not genuine, it is better for
him to ignore it.
2. Product comparison- if the prospect is mentally comparing his product with the
salesman’s product, the salesman himself should present a complete comparison of the
two.
3. Case history- a salesman describes the experience of another prospect who is like the
buyer to whom he is talking. He probably starts with the first registered resistance of that
prospect, then the prospect will later on discover that the situation described is the same
as his.
4. Demonstration- a product demonstration is a terrific convincing answer to a product
objection.
5. Guarantee- giving a guarantee to the prospect that he cannot lose will always make him
react favorably.
6. Questioning- one of the salesman’s job is to separate the excuses from the genuine
objections.
7. Show what delay costs- the prospect usually delays the decision to act or to buy the
product.
8. Admit and counter balance- the prospect sometimes enumerates the disadvantages of
the product.
9. Friendly listening- it is a good practice to listen to the prospect. Once the buyer has
talked himself out by unburdening what he has in mind, he is usually easy to handle.
10. Point-blank-denial- it is a habit among people to resent being contradicted.
11. Yes-but- the salesman makes a concession to the buyer, then he commands before
making the correction. The salesman agrees before he disagrees.
12. Admit Ignorance- frankness and honesty get attention from the prospect. But there
must be too many answers in admitting ignorance.
13. Trial- this is good technique to convince the prospect of the product’s benefits.

“ HE OUNTRY’S OLYTECHNIC ”
14. Boomerang- once in a while the salesman can take the prospect’s reason for not buying
and convert them into a reason for buying.

Lesson 2 MOTIVATING SALESMAN TO CLOSE A SALE

Someone once remarked, money is not the only form of motivation, but it may be far
ahead of whatever it is that is in the second place. The salesman increases his income by trying
a little harder to close a sale.

Basic rules- there are three basic rules which must be considered in setting up sales
incentives and compensations:

1. Make incentive payments frequently enough to be effective. The mid-year and year-end
bonuses may be substantial, but it may come too late or at least so far in the future that
it has little effect.
2. Be-up-to-date. Traditionally, the sales manager has considered the minimum effective to
be 15% of the basic. But with the inflation and devaluation of the peso, the value has
diminished the after-tax value of the incentives. Management is in a better position to
determine the effective sales incentive for their particular company.
3. Stimulate sales selectively. An incentive keyed merely to stimulate closing just to
increase the sales volumes may not always be a good practice because the salesman is
paid just for making the sales. But the trend is rather definitely toward stimulating sales
selectively- meaning selling whatever is more profitable for the salesman.

Lesson 3 WHEN TO CLOSE A SALE

The right time to attempt to close a sale is when the buyer appears to be ready to buy.
There is one psychological moment in the sales presentation which affords the best opportunity
to close that is if this opportunity to close is bypassed, the salesman may find it difficult to
secure the order. When the salesman believes that the prospect understands the proposition
and may be ready to buy, the “right” time has arrived. This moment usually occurs several times
in any interview.

There are also some signals that a salesman should look for, like the facial expression,
the physical actions or by the comments of the prospects. These indications are no guarantee
that the salesman can close the sale. He should interpret them as an opportunity to close.

In very simple forms of consumer selling, the salesman can try to close as soon as the
customer knows what he is selling, sometimes even before the customer knows the price. In
more complicated sales, especially to professional buyers, the salesman usually must not try to
close until the buyer has enough information upon which to make a decision.

Lesson 4 USING THE TRIAL CLOSE

A trial close is a question designed to elicit the prospect’s reaction without forcing him to
make a “yes” or “no” buying decision. An example of this: Where would you install this air

“ HE OUNTRY’S OLYTECHNIC ”
conditioning unit? Which size would you prefer? The questions carry the implied statement that
the customer has already made a decision to buy.

Trial closes then give the salesman the chance to gauge the prospect’s temperament. If
this response indicates that he likes the proposition, then the salesman can move toward a
definite close. If his answer indicates something he does not like, the salesman can learn the
reason without putting him on the defensive.

Lesson 5 THE TIMING OF THE CLOSE

Years ago people used to think that there was one magic psychological moment at
which the salesman had to move in with a well-timed close or forever lose the sale. Today the
salesman realizes that the typical sales conversation includes many points at which it is
perfectly logical for the salesman to seek a favorable decision.

An alert and intelligent salesman can spot closing opportunities that arise
spontaneously, or he can deliberately create opportunities for closing. The salesman can use
either of the methods- a trial closing question or a actual closing question when he spots any of
these opportunities:

1. When the prospect agrees with the value of a benefit described by the salesman.
2. When the prospect accepts the salesman’s answers to his objections.
3. When the prospect shows some signals that he is already sold on the product.
4. When there is a permanent pause. The salesman has asked all the questions that occur
to him. For a couple of seconds the salesman and the prospect just sit there and look at
each other close!

Lesson 6 HOW OFTEN SHOULD THE CLOSE BE ATTEMPTED

As the salesman spots a closing signal, he may attempt to do so. This opportune time
may occur in each of the stages in the sale presentation such as:

1. At the beginning of the interview


2. Early in the presentation
3. After a demonstration
4. After an objection is answered
5. After a series of commitments
6. After the first complete presentations
7. After the 2nd, 3rd or 4th alternate
8. After several calls.

Lesson 7 THE FINE ART OF CLOSING THE SALES

The field of marketing is expanding and increasingly becoming complexed. However, it


is still focused on only one target- the close. All the efforts of the salesman is wasted if he
cannot close the sales. For the salesman, closing the sale may mean two important things to

“ HE OUNTRY’S OLYTECHNIC ”
him. It may test his ability to sell and at the same time the income he receives is based upon
closed sales.

Test of his selling ability- the true test of the selling of the salesman is- can he secure orders?
Sales constitute the final yardstick by which the salesman will be measured.
The close is the climax of the sales presentation. It is the point at which the buyer agrees to
purchase products or service. This meeting of the minds of the buyer and the salesman
determines that he builds values to a point which is much higher than the price asked; and he
climaxes his presentation by securing the order.

Lesson 8 WHY SALESMEN HAVE DIFFICULTY IN CLOSING SALES

Some salesmen find it difficult to close a sale because their negative attitude and bad
mannerism. If they have built a great fear that the close is going to be difficult, this fear may be
impossible to hide. A salesman’s eagerness to close a sale may be a handicap. Eagerness may
be interpreted by the buyer as evidence that the salesman knows little about his product, that
there is some doubts about his product.

Inadequate presentation is another cause of difficulty on closing the sales. Another


reason is the poorly developed habits and skills- that is the habit of talking too much often
causes otherwise good presentations to fail.

Lesson 9 REQUISITES FOR SUCCESSFUL CLOSING

Here are some of the requisites in closing which a salesman must observe.

1. Maintain a positive attitude.


2. Maintain control of the interview.
3. Allow the customer to set the pace.
4. Give the customer an opportunity to buy.
5. Keep some selling points in reserve.
6. Sell the right items in the right amount.

Lesson 10 CREATING OPPORTUNITIES TO CLOSE

The salesman should take the initiative in creating opportunities to close. Here are some
of the suggested ways on how to create these opportunities:

1. Summarizing the benefits and getting the buyer’s agreement. Recapitulate them so the
buyer can see the overall merits of the products presented.
2. Ask the buyer if there is any further information he wants to know. If the buyer says no
more, then that is an opportune time to close.
3. Using a pave –the-way question- The salesman is aware of all the reasons of the
prospect for not deciding to buy. This is not a closing question in itself, but it is a
question that tells the salesman how to close.

Lesson 11 TACTICS AND STRATEGIES OF THE CLOSE

“ HE OUNTRY’S OLYTECHNIC ”
Generally speaking, all the strategies and tactics employed by the salesmen are directed
toward the close. Specifically, the close may be defined as the tactic used by the salesman to
induce purchase or acceptance of the proposition.

Books on selling use the term “trial close” and define it as an attempt to determine whether the
other person is ready to a full-scale close. This term has little or no tactical utility.

Another term that is widely used in selling is the psychological moment, implying that there is
one optimum time during the call to ask for the order. Other conditions needed for a close would
include minimizing or eliminating sales resistance and making sufficient points for the prospect
to understand the proposition and to anticipate satisfaction with the purchase.

Lesson 12 SPECIFIC CLOSING STRATEGIES

There are specific closing strategies which have been tried by many successful
salesmen. These strategies have been found rewarding by good salesman.

1. Direct- the salesman asks the prospect to buy, prescribe, recommend or use his product
as appropriate.
2. Summative- in this procedure, the salesman recapitulates the points of agreement
previously reached and thereby induces the buying decisions.
3. Assumptive- with this strategy, the salesman assumes an agreement has been
reached. For instance, he tells a purchasing agent, “I will help your secretary to write up
the order”.
4. Demonstration- the old adage that “seeing is believing” still holds true today in selling.
5. Positive choice- this method falls between the direct and assumptive methods.
6. Minor decision- the salesman should try to build up a series of yes answers as a basis
for the close.
7. Challenge- with the dominant, self-confident, innovative person, the salesman may
close by offering the prospect the opportunity to score at first.
8. Scare- sometimes this is referred to as a negative close.
9. The Contingent Method- people are inclined to want something that they cannot easily
acquire. The use of the contingent method is based upon the fact that uncertainty exists.
10. Standing- Room- Only (SRO)- this ,method is effective when the products are rapidly
consumed and the supply is limited.
11. Two-man-close and the T.O- this method of closing use two salesmen “team up” in an
attempt to get an order.

WATCH:

 Easy Closing Sales Tips


(https://www.youtube.com/watch?v=5mJkKGqj-rU)
 Handling Objections
(https://www.youtube.com/watch?v=CzGR3gGSPds)

“ HE OUNTRY’S OLYTECHNIC ”
READ:

 Salesmanship by Lilia B. Arante & Julita R. Gomez, 2006

ACTIVITIES/ ASSESSMENTS:

1. Long Quiz
2. What is meant by closing a sale?
3. What are the prospect’s reasons for objections?
4. How can a salesman distinguish a genuine objection from a false one?
5. Why closing the sale very important to a salesman?

“ HE OUNTRY’S OLYTECHNIC ”

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