chapter 13 initiating the sale - south lake...

INTRODUCE THE CHAPTERChapter 13 introduces students to the steps of the sales process. It then explores in detail the fi rst two steps of the sales process: approaching the customer and determining needs.

BUILD BACKGROUNDHave students recall a sales situation in which the customer used limited decision making. Ask them what happened when the customer entered the store, showed interest in an item, made a purchase, and left the store. Have students compare their sales situations.

13

EXPLORE THE PHOTO

Market Talk Lead a discussion with students about fi rst impressions. Have them talk about how important fi rst impressions are in social settings and compare that to fi rst impressions in selling situations. Have students describe their impressions of the salesperson in this ad.

Quick Think Answers may include, “May I help you?” or “Hello.”

Ask students if they prefer being greeted or

left alone when they enter a retail store. Students’ preferences will probably fall somewhere between being hounded and being ignored.

REVIEW THE OBJECTIVESList the seven steps of a sale. 1. Approaching the customer. 2. Deter-mining needs. 3. Presenting the product. 4. Overcoming objections. 5. Closing the sale. 6. Suggestion selling. 7. Relation-ship building.Explain the importance and purposes of the approach in the sales process. Salespeople can make or break a sale

during the fi rst few minutes with a customer. Customers who are turned off by the approach will be diffi cult to win over later on.Demonstrate how business-to-business sales representatives conduct the initial approach. The salesperson sets up an appointment. The initial approach depends on your prior dealings with the customer or the work you did in the pre-approach.Name three methods for making the initial approach in retail sales. service approach, greeting approach, merchandise approach

Explain why determining needs is an essential step in the sales process. Discovering your customer’s motivation for buying will help you in the next step of the sale when you are helping the customer select the right product.List three methods for determining needs. observing, listening, and questioning and engaging the customer

276 UNIT 5 — SELLING

C H A P T E R 13

Chapter ObjectivesAfter reading this chapter, you should be able to:

• List the seven steps of a sale

• Explain the importance and purposes of the approach in the sales process

• Demonstrate how business-to-business sales representatives conduct the initial approach

• Name three methods for making the initial approach in retail sales

• Explain why determining needs is an essential step in the sales process

• List three methods for determining needs

Initiating the Sale

Market Talk The approach to the customer

is the critical fi rst step in the sales process.

It gives the salesperson the opportunity to

establish a relationship with the customer,

to initiate a conversation, and to focus the

customer’s attention on the product. The

approach can make or break a sale, so it is

important to make a good fi rst impression.

Quick Think What might you say to open a

conversation with a customer?

EXPLORE THE PHOTO

Somos Photography/Veer

276

For the Teacher TeacherWorks™ Plus

Teacher Resources at glencoe.com

Interactive Chalkboard ExamView® Assessment Suite Fast File Unit 5

For the StudentMarketing Essentials Online Edition

Student Activity Workbook Marketing Math Workbook Marketing Research Project Workbook School-to-Career Activity Workbook Competitive Events Workbook BusinessWeek Reader with Case Studies

Interactive Student EditionStudent Resources at glencoe.com

13

Discuss the performance indicators for the

DECA events listed, so that students understand

how to demonstrate their understanding.

The event acronyms stand for:

AAM: Apparel and Accessories Marketing

Series

ADC: Advertising Campaign Event

ASM: Automotive Services Marketing

Series

BSM: Business Services Marketing Series

EMDM: E-Commerce Management Team

Decision Making Event

FMAL: Food Marketing Series, AL

FMDM: Financial Analysis Management

Team Decision Making Event

FMML: Food Marketing Series, ML

FSRM: Full Service Restaurant Manage-

ment Series

HMDM: Hospitality Services Management

Team Decision Making Event

HRR: Hospitality and Recreation Market-

ing Research Event

MMS: Marketing Management Series

QSRM: Quick Serve Restaurant Manage-

ment Series

RFSM: Restaurant and Food Service

Management Series

RMS: Retail Merchandising Series

SEM: Sports and Entertainment Marketing

Series

SMDM: Sports and Entertainment Marketing

Management Team Decision Making

Event

TMDM: Travel and Tourism Marketing

Management Team Decision Making

Event

TSE: Technical Sales Event

Find timed DECA Prep activities correlated to the Competitive Events Workbook for students and DECA tips for teachers at the Marketing Essentials OLC through glencoe.com.

Chapter 13 — Initiating the Sale 277

ROLE PLAY Check your understanding of DECA performance indicators with the DECA activity in this chapter’s review. For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.

glencoe.com

DECA Events These acronyms represent DECA com-petitive events that involve concepts in this chapter:

AAMASMBMDM

BSMFMALFMML

QSRMRFSMRMS

Performance Indicators The performance indicators represent key skills and knowledge. Relating them to the concepts explained in this chapter is your key to success in DECA competitive events. Keep this in mind as you read, and write notes when you fi nd mate-rial that helps you master a key skill. In these DECA competitive events, you should follow these perfor-mance indicators:• Explain the selling process• Determine customer needs• Establish relationship with customerSome events include these performance indicators:AAM Determine size and fi t of children’s apparelAAM Determine size and fi t of women’s apparelAAM Determine size and fi t of men’s apparelAAM Determine size and fi t of shoesASM Explain component/accessory characteri tics of braking/ABS systemsBSM Discuss risks perceived by customers when purchasing business servicesEMDM Describe the nature of customer support for online salesFMDM Establish relationship with customerQSRM Identify ingredients of menu itemsSEM Establish relationships with sport/event clients/customers/fansSMDM Establish relationships with sport/event clients/customers/fansTMDM Identify types of destination attractionsTSE Differentiate between consumer and

organizational buying behavior

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SECTION 13.1

BELLRINGER ACTIVITY

Ask students to describe poor sales experiences they have had or witnessed. As they share their stories, write down the salespeople’s qualities on the board: pushy, stuck-up, clueless, and so on. Ask students how the salespeople can improve on every category.

Preteaching

VOCABULARYKEY TERMS Have teams of students draw vocabulary terms out of a hat or bowl and then write them on a sheet of paper. Have students guess the meaning of each word and write their guesses beside the word. Record the words and guesses on the board. Leave this list up so students can see how close their defi nitions were to the actual defi nitions as they work through the chapter.ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZER Model using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer.

NCLB

NCLB connects academic correlations to book content.

READING GUIDE

Have students recall ways salespeople have approached them. Ask: Which methods are the most effective?

D Develop Concepts

THE MAIN IDEAAsk a volunteer to read the main idea aloud. Have students discuss which sales styles might be appropriate

for different situations, such as a fancy jewelry store or a neighborhood comic book store.

Encourage students to be attentive to the characteristics of sales

situations they experience.

BEFORE YOU READ

B2B Selling

B2B and Retail

Retail Selling

Set up an appointment.


The Selling Process Selling is the process of matching customer needs and wants

to the features and benefits of a product or service. The sales-person plays a vital role in this process by gathering information about the customer, then advising the customer about which products would best suit his or her needs and lead to a decision to buy.

SECTION 13.1

The Sales Process

Connect Reflect on ways salespeople have approached you. How effective were their methods?

BEFORE YOU READ

THE MAIN IDEAThere are seven steps to the sales process. There are also different styles and methods for approaching customers, depending on the sales situation.

GRAPHIC ORGANIZERDraw this chart to identify the steps of a sale.

OBJECT IVES• List the seven steps of a sale

• Explain the importance and purposes of the approach in the sales process

• Demonstrate how business-to-business sales representatives conduct initial approach

• Name three methods for making the initial approach in retail sales

KEY TERMS• service approach

• greeting approach

• merchandise approach

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• establish

• item

READING GUIDE

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

ACADEMIC STANDARDSEnglish Language ArtsNCTE 3 Apply strategies to interpret texts.NCTE 12 Use language to accomplish individual purposes.

Connect Think about

selling situations in which

all seven steps of a sale

were involved. Recall

how the salesperson

incorporated each step

into the selling process.

D

NCLB

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CONTINUED

SECTION 00.00

279

SECTION 13.1

Discussion Starter

THE SELLING PROCESSAsk students: If every sales situation is different, how can there be the same steps each time? Let them know that the steps provide an effective starting point and sales strategy.

Extend Compare the seven steps of selling to the structure of a jazz song or plans to plant a garden. Remind stu-dents that there is room to improvise in all situations.

D Develop ConceptsGuided Practice

Approaching the Customer Have students consider the three purposes of the sales approach: to begin conversation, to establish a relationship with the customer, and to focus on the product. Ask students which purpose is the most important and why. Some students may argue that there can be no sale without a conversation. Others may suggest that the sale is what matters most. Long-sighted students may believe that long-term relationships are the true goal.

Explain Tell students that not every customer is expected to make a purchase. Some may simply be browsing. However, sales associates and stores may still generate future sales by making a good impression.

C Critical ThinkingDrawing ConclusionsAnalyze Ask students to describe why it might not be a good idea for a sales-person to be too familiar or joke around when fi rst approaching a customer. Answers may include that the sales person is not familiar with the customer’s mood or sense of humor.

Answer The fi rst two steps to selling are: 1)

approaching and greeting the customer face to face, and 2) learning what the customer is looking for, which helps determine the customer’s needs in order to decide what products to show and which product features to present in the fi rst step of the sale.


There are seven steps to the selling process:

1. Approaching the customer greeting the customer face-to-face

2. Determining needs learning what the cus-tomer is looking for in order to decide what products to show and which prod-uct features to present first in the next step of the sale

3. Presenting the product educating the cus-tomer about the product’s features and benefits

4. Overcoming objections learning why the customer is reluctant to buy, providing information to remove that uncertainty, and helping the customer to make a sat-isfying buying decision

5. Closing the sale getting the customer’s positive agreement to buy

6. Suggestion selling suggesting additional merchandise or services that will save your customer money or help your cus-tomer enjoy the original purchase

7. Relationship building creating a means of maintaining contact with the customer after the sale is completed

In this chapter, we will concentrate on the first two steps in the sales process: (1) the approach and (2) determining the customer’s needs. The other five steps will be examined in later chapters.

Approaching the CustomerSalespeople can make or break a sale during

their first few minutes with a customer; there-fore, the initial approach is critical. Customers who are turned off by the approach will be dif-ficult to win over later on.

The approach sets the mood or atmosphere for the other steps of the sale. It has three pur-poses: to begin conversation, to establish a relationship with the customer, and to focus on the product.

To begin conversation, you need to be alert to customers’ interests. In business-to-busi-ness selling, you can conduct research prior to the initial meeting. In retail selling, observe the customer inside the store.

To establish a relationship, treat the cus-tomer as an individual. You should not stereo-type a person because of age, sex, race, religion, appearance, or any other characteristic.

You must be perceptive about the cus-tomer’s buying style. Some customers like to do business quickly. Others prefer a more methodical, slower pace. In any case, a cus-tomer likes to feel important.

To put a customer at ease and establish a positive atmosphere you should be enthusi-astic, courteous, and respectful. Show sincere interest by maintaining good eye contact and showing genuine friendliness. Always ask business-to-business customers if it is a good time to see them. This courtesy is appreciated by busy businesspeople.

The Approach in Business-to-Business Selling

In business-to-business selling, the salesperson sets up an appointment in the pre-approach stage of the sale. Arriving early for the appoint-ment will show your customer that you are interested and give you time to organize your thoughts. Introduce yourself and your com-pany with a firm handshake and a smile. Use the customer’s name. Some salespeople may give a business card to the customer.

The initial approach depends on your prior dealings with the customer or the work you did in the pre-approach. When meeting with cus-tomers you visit frequently, you can be more personal. Comments on recent happenings in the customer’s industry or personal recollec-tions about the customer’s family, interests, or hobbies can create a smooth initial meeting. Learning what is appropriate to say regarding personal matters is critical. When personal conversation is not appropriate, you can still engage in small talk to establish a relationship with the customer.

Prior research on the prospect conducted in the pre-approach may suggest other pos-sible opening comments. You can also discuss current topics in the industry.

Recall What are the fi rst two steps in the sales process?

D

C

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SECTION 13.1

S Skill PracticeThe Approach in Retail Selling Let students know that there are professional journals meant to help salespeople excel. Ask students to look up issues of Per-sonal Selling Power, Sales & Marketing Management, and other publications for articles about the approach in retail selling. Have them present their fi ndings to the class.

Extend Ask students: Can salespeople who are in totally different industries use the same journals about selling? Answers will vary, but most will say that the selling process is similar, even if the products—such as homemade candy and industrial chemicals—are not.

Beware of Bias

Discussion Have students read the Case Study and then discuss the importance of sales training. Let them know that such training can be costly, but that it can save money by eliminating problems in the long run.

Answer: Live-action drama and role playing are effective sales training methods because they force participants to think on their feet. Also, many people learn more through participatory action and experience than they do from books, lectures, and other forms of education.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.

280 UNIT 5 — SELLING glencoe.com

The Approach in Retail SellingWhen customers are in an obvious hurry,

you should approach them quickly. When customers seem undecided, encourage them to look around and ask questions.

The Three Methods of Approach in Retail Selling

There are three methods you can use in the initial approach to retail customers: the ser-vice approach, the greeting approach, and the

merchandise approach. You must evaluate the selling situation and the type of customer to determine which method is best.

Service Approach With the service approach, the sales-

person asks the customer if he or she needs assistance. One way to use this method is to ask, “How may I help you?” An open-ended question such as this one offers the customer a greater opportunity to respond with more

Beware of Bias

Wanting to take a pro-active approach with his team, Harry Bradford, a regional sales VP with GlaxoSmithKline turned to Orlando-Ward Associates, a San Diego-based workplace training organization that specializes in live-action drama to address diversity and other interpersonal workplace issues.

Here is an example of a vignette used in such training: You are making your first sales call to Dr. Lee’s office in the Chinatown section of San Francisco. Approaching a young Asian woman behind the desk, you say who you are and ask to speak with Dr. Lee for a moment. After a brief pause, the woman looks up from her paperwork and deadpans, “You’re speaking with Dr. Lee right now.” Whoops! After you apologize profusely, Dr. Lee says that she would be happy to meet with you—about a year from now.

Role Play as Training

After each vignette was presented during the half-day program, the producing director led a discussion with the reps to identify the mistakes made and to brainstorm about more thoughtful approaches. Next, reps were invited to participate in replays, in which the scene is re-enacted but, this time, with a program participant playing the role of the sales rep. The rep’s task is to handle the situation more effectively, without making errors based on cultural or gender stereotypes.

Go to the Marketing Essentials OLC through glencoe.com to find a research project on avoiding stereotyping.

Why are live-action drama and role playing good sales training methods?

Jon Feingersh/CORBIS

S

280




SECTION 13.1

CONCEPTSAsk students to recall the salesperson’s role in the selling process. To gather information about the customer, advise the customer about which products best suit his or her needs, and lead to a decision to buy.

KEY TERMS Have students review key terms and role play examples of each approach.

INDEPENDENT REVIEW

L1 Assign and review Chapter 13 activities in the Student Activity Workbook.

L2 Assign and review Chapter 13 activities in the Marketing Math Workbook.

L3 Assign and review Chapter 13 activities in the BusinessWeek Reader with Case Studies.

PHOTO GUIDE

THE MERCHANDISE APPROACHDiscussion Discuss with students how to tell if a customer is interested in an item. Indicators may include him or her studying it, picking it up, returning to it several times, or asking about it.

Caption Answer The salesperson might point out features such as insoles or wheels or ask if the customer has ever used rollerblades.

Pick an item in the class-room and ask students to sell it with a merchandise approach. For example, they might point out the throwback borders on the globe or the decorations on someone’s backpack. Have students enact their approaches in class.

Business E-Mail

Discussion After students have read Net Marketing, lead a discussion about the effects of spam. Discuss not only the memory taken up and viruses that are transmitted through spam but also the work time spent sorting through an e-mail inbox.

Answer: Responses should demonstrate an understanding of spam and antivirus software and employ a business-to-business selling approach.


Chapter 13 — Initiating the Sale 281glencoe.com

than “yes” or “no.” It is acceptable when the customer is obviously in a hurry or if you are an order-taker for routine purchases. In most other sales situations, this type of question is ineffective because it usually elicits a negative response, such as “No, I’m just looking.” In this case, you lose control of the sales situa-tion. If such a situation occurs, take a moment to remind the customer to ask any questions that he or she may have later on.

Greeting Approach With the greeting approach, the sales-

person simply welcomes the customer to the store. This lets the customer know that the salesperson is available for any questions or assistance. The greeting can be a simple one, such as “Good morning.”

When you greet the customer, it is impor-tant to use a rising tone in your voice. A fall-ing tone sounds unfriendly and would start the sales process off on the wrong note. It is extremely important that the salesperson smile and be friendly.

• THE MERCHANDISE APPROACH The merchandise approach can be used only when a customer demonstrates interest in a product.

What might you say to this customer to demonstrate the merchandise approach?

Business E-Mail

Once considered merely a nuisance, spamand other unwanted e-mail have become acostly burden for enterprises. E-mail can spread destructive computer viruses to millions of users in a matter of hours.

An Expensive Problem Ferris Research predicted that the cost of spam to businesses worldwide in 2007 would be $100 billion in lost productivity. Of that, $35 billion would be lost by U.S. businesses, up from $17 billion in 2005. Postini, a leader in e-mail security and compliance solutions, reported that e-mail spam made up 93 percent of all e-mail traffic processed in 2006.

Go to the Marketing Essentials OLC through glencoe.com to find a project on e-mail security.

Assume you work for a company that sells software and services to block spam and provide antivirus protection. Write an attention-getting statement that you could use in conjunction with your greeting and initial approach in a business-to-business selling situation.

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CULMINATING ACTIVITYAsk students to answer the following questions:

• What are the fi rst two steps of the sales process? the approach and determining the customer’s needs

• What are the three methods of approaching retail customers? the service, greeting, and merchandise approaches

• What are some characteristics of the sales approach in business-to- business situations? having an appoint ment, meeting at the customer’s place of work, and knowing the sale is being made for business purposes

SECTION 13.1

NCLB

NCLB Activity correlated to Mathematics and English Language Arts Standards

Key Terms and Concepts

1. All seven steps do not have to be followed in every sale. Some customers are pre-sold and know exactly what they want. Also, the salesperson may do such a good job matching products with a customer’s needs that there are no objections.

2. In retail selling, the customers arrive in the store location. In business-to-business

selling, salespeople go to the customer’s place of business to make a presentation. Also, a business-to-business meeting is usually made by appointment.

3. The merchandise approach immediately focuses attention on the product and gives the salesperson an opportunity to tell the customer about its features and benefi ts.

Academic Skills

4. $5.33; $15.99 � 6 � $2.665 � 2 � $5.33

5. Answers may include merchandise approaches should point out the features of the product being sold.

Find answers at the Marketing Essentials OLC through glencoe.com.

13.1 AFTER YOU READ

AFTER YOU READHave students complete the Section 13.1 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 13.1 practice test.

Numbers and Operations:Computation Compute fluently and make reasonable estimates. 1. To solve this problem, divide the

cost of six pairs of socks by 6 to de-termine how much each pair costs.

2. Multiply the cost of one pair of socks by two to determine the costs of two pairs.

For help, go to the Math Appendix located at the back of this book.


If the customers need help, they will tell you how you can assist them. If they are just looking, they will let you know. The greeting approach establishes a positive atmosphere and opens the lines of communication.

Merchandise Approach Method With the merchandise approach, the

salesperson makes a comment or asks ques-tions about a product in which the customer shows interest. This method can be used only if a customer stops to look at a specific item. You may talk about its features and benefits.

Using Conversation SkillsIn the merchandise approach, the sales person

walks up to the customer and starts talkingabout the merchandise without asking whetherthe customer wants assistance. The opening comment used in the merchandise approach should be appropriate to the situation. Ideally, it should give the customer some information that is not immediately apparent to the eye.

Notice what interests the customer and make that the focus of your conversation. If a customer is looking at a label, you might say, “That shirt is made of a cotton and polyester blend, so it’s machine washable.” If a customer is simply looking at an item and you have no indication of the exact interest, you can talk about the item’s popularity, its unusual fea-tures, or its special values. You can also ask a question about the item, such as “Is that the size you need?” or “Were you looking for a comfortable children’s jacket?”

The merchandise approach is usually the most effective initial approach in retail sales because it immediately focuses attention on the product. It also gives you an opportunity to tell the customer something about the fea-tures and benefits of the merchandise.

Customers may not see the desired style, size, or color on the selling floor. The mer-chandise approach can clear up confusion, let the customer know what is available, and open a dialogue with the customer.

13.1 AFTER YOU READ

Key Terms and Concepts 1. Do you think all seven steps of a sale are followed in every sale?

Why or why not? 2. Why is the initial approach in business-to-business selling different

from a retail approach? 3. What are the advantages of the merchandise

approach?

Academic SkillsMath

4. Assuming there is no sales tax on clothing, how much would you charge a customer who needs only two pairs of socks when the sign indicates six pairs are $15.99?

English Language Arts

5. Write two merchandise approaches for a product of your choice.

Check your answers at the Marketing Essentials OLC through glencoe.com.

NCLB

282





SECTION 13.2

BELLRINGER ACTIVITY

To prepare for reading this section, have students work in groups to describe different types of customers. They may include the person who is in a hurry, someone who has to buy a gift but has no idea what to buy, or someone who has time to waste. Ask: How can they identify the types of customers? Answers may include observing nonverbal communication, listening to their conversations or comments, and asking questions.

Ask students to role-play customers and salespeople in different situations.

Preteaching

VOCABULARYKEY TERMS Read the key terms aloud, or ask a volunteer to read them and predict their meanings.ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.

GRAPHIC ORGANIZERModel using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer.

NCLB

NCLB connects academic correlations to book content.

Online ActivityDetermining Needs OnlineHave students research what methods online stores use to ascertain the needs of its customers. Students might suggest offering options is similar to questioning.

READING GUIDE

Lead students in listing ways to determine a customer’s needs: observing, listening, questioning.

D Develop Concepts

THE MAIN IDEAAsk a volunteer to read the main idea aloud and ask another student to rephrase it in his or her own words.

Students’ experiences should refl ect observing, listening, or questioning.

BEFORE YOU READ

Determining NeedsIn this step of the sale, your job is to uncover the customer’s

problems or reasons for wanting to buy. In some instances, their motives or needs may be quite obvious, but that is not always the case. It is your job to determine those needs so you can offer alternative solutions. Discovering your customer’s motiva-tion for buying will help you in the next step of the sale when you are helping the customer select the right product.

Connect Has a

salesperson ever

helped you make a

choice? What questions

were asked?


HowWhen

Determining Needs

READING GUIDE

OBJECT IVES• Explain why determining needs

is an essential step in the sales process

• List three methods for determining needs

KEY TERMS• nonverbal communication

• open-ended questions

ACADEMIC VOCABULARYYou will find these words in your reading and on your tests. Make sure you know their meanings.• alternative

• seek

Predict Name three ways you might determine a customer’s needs.

SECTION 13.2

BEFORE YOU READ

Determining Needs in Sales

THE MAIN IDEADetermining needs is an early step in the sales process because it frames the rest of the sales presentation. It is also the one step that continues throughout the sales process.

GRAPHIC ORGANIZERDraw this chart to review when and how to determine needs in the sales process.

Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.

ACADEMIC STANDARDSScienceNSTA Content Standard C Life Science: behavior of organisms

Social StudiesNCSS 4 Individual Development and Identity: concepts drawn from psychology, social psychology, sociology, and anthropology as they apply to individuals, societies, and cultures

D

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SECTION 00.00SECTION 13.2

Discussion Starter

IMPORTANCE OF DETERMINING NEEDSAsk students to consider the following scenario: A couple enters a gift store just before closing time and begins to leisurely look through books and T-shirts. If they buy something, the salesperson doesn’t mind staying open late. If they are merely browsing, she would like to close the store. Ask students how the salesperson should approach and handle this situation.Tell students that they can observe the customers’ actions, listen to their comments, or ask them if they might like to buy something.

D Develop ConceptsGuided PracticeDetermine Needs Review with stu-dents the fi ve listening skills to use when talking to customers: maintaining good eye contact, providing verbal and nonver-bal feedback, giving undivided attention, listening with empathy and an open mind, and not interrupting. Ask students to visit local stores and write two- to three-paragraph reports on how well the clerks demonstrated good listening skills.

Role Play Have conversations with students as if you were a shopper and they were salespeople. As you explain your needs, have them practice the fi ve listening skills.

Skateboarding in BrazilDiscussion Let students know that the success of Bob Burnquist, Lincoln Ueda, and other Brazilian pro skateboarders in America help fuel the sport’s popularity in their home country. Lead a discussion on how this can impact marketing.

Answer: Such knowledge can help a salesperson in determining customer needs because the salesperson can then form a basis upon which to ask appropriate questions.

For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com

glencoe.com284 UNIT 5 — SELLING

When to Determine NeedsThe salesperson’s focus should be to deter-

mine the customer’s needs as early in the sales process as possible. Here is an example of what can happen when a salesperson does not determine needs early on.

Salesperson: “This is one of our most popular tennis rackets. It’s perfect for you—the grip is the correct size and the large sweet spot can improve your game.”

Customer: “That’s very interesting; but, I’m not buying the racket for myself. It’s actually a gift for my nine-year-old daughter.”

After the initial approach, the salesperson could have asked, “Are you interested in a racket for yourself?”

The answer to that simple question could have guided the salesperson into additional questions about the person for

whom the racket was being purchased. It could have helped the salesperson decide which racket to show the customer and features to emphasize.

In retail selling, the salesperson should begin to determine needs immediately after the approach. In business-to-business selling, needs can be determined in the pre-approach. In both situations, the salesperson should con-tinue determining needs throughout the sales process to find what the customer seeks.

How to Determine NeedsThere are three methods used to determine

customer needs: observing, listening, and questioning. (See Figure 13.1 on page 286.)

Observing When you observe a customer, you look

for buying motives that are communicated nonverbally. Nonverbal communication is

Skateboarding in BrazilSkateboarding might seem like an all-American sport, but it is also very popular and competitive around the world. Brazil has a thriving skateboarding market. Brazilian skaters started out by making their own skateboards with roller skate trucks and wheels, inspired by American products they often could not afford. However, what started as tinkering has now become a national industry.

Homegrown Success Brazil’s government is protective of small firms and trademarks and offers incentives to promote internal commerce. Skateboard products are sold mostly through specialty stores. With imports heavily taxed, domestic brands sell far better than U.S. competitors. Government policies and taxation were determining factors in the creation of domestic skateboard brands and in the growth of the Brazilian skateboard market. Skateboarding shoes, accessories, and clothing are now also manufactured in Brazil for Brazilian brands. The largest board brands are Son, Formigao, Perfect Line, and Stage. Truck brands are Crail, Tracker, and Crazy. The largest wheel manufacturer is Moska. Some of these companies have now expanded into exporting their goods throughout South America and to the United States.

How does knowledge regarding a customer’s motivation and value system help in determining needs?

Go to the Marketing Essentials OLC through glencoe.com to find a research project on customer motivation.

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CONTINUED

SECTION 13.2

S Skill PracticeIndependent PracticeGive students the following scenario: they are salespeople at a tennis store during a one-day sale offering special discounts and no sales tax. During the sale, 30 percent will be taken off the price of all rackets except for children’s rackets, which are half off.

L1 Ask students: If a customer has a coupon for an extra 10 percent off all adult purchases, how much will he or she save on a purchase of $255? $102; $255 � .60 � $153; $255 � $153 � $102

L2 Have students calculate the cost of one adult racquet priced at $180 and one child’s racquet priced at $75. $163.50; ($180 � .70) � ($75 � .50) � $126 � $37.50 � $163.50

L3 Tell students that a customer returns a child’s racquet bought on sale for $37.50 for a higher performance one priced at $120, even though there will be no discount on it. How much will he owe the store if sales tax is 6.25 percent? $87.66; $120 � $37.50 � $82.50; $82.50 � 1.0625 � $87.66

D Develop ConceptsQuestioning To practice questioning, have students write 10 questions that might be used to fi nd out what type of athletic shoe a customer wants to buy. Suggest they begin by discussing experi-ence with shoe models, intended use, and the functions the customer is looking for.

Role Play Role play as if you were shopping for a product either for home or for school, such as paper or vegetables. Have students use their questions to determine your needs and suggest models.

AD GUIDE • DETERMINING CUSTOMER NEEDS

Discussion Lead a discussion about the importance of listening. Suggest that an effective salesperson is one with good listening and observational skills because he or she can best determine the needs of a customer.

Caption Answer Possible answers might include that the company listens more than it talks and places its customers’ needs fi rst.

Point out to students that one fi gure in the ad is going down on the escalator while the others are going up. Ask: What does this suggest about his fi nancial situation?


expressing yourself without the use of words. Facial expressions, hand motions, eye move-ment, and other forms of nonverbal commu-nication can give you clues about a customer’s mood and interest in a product.

Observing how long a customer in a retail store looks at a product can give you an initial idea about the level of interest.

In a business-to-business selling situation, you can generally get ideas about a buyer’s interests by looking around his or her office.

Listening Listening helps you pick up clues to the

customer’s needs. You can use this informa-tion for the product presentation. Here’s an example.

Customer: “I want a copier for my home busi-ness that is simple to use and reliable. My last copier broke down often, which was a

problem. I usually make one or two copies at a time. However, occasionally I may make up to 50 copies at once.”

From these statements, you have learned that the customer is not looking for a top-of-the-line copier. Since the copier is for a home business, size is a factor.

Questioning and Engaging the CustomerWhen you begin determining needs, first

ask general questions about the intended use of the product and any previous experience with it. Build your questions around words like who, what, when, where, why, and how. You might ask the following questions of someone who wants to purchase a copier:

• Who will be using the copier? • What type of copier is the person

presently using?

• DETERMINING CUSTOMER NEEDS The sales step of determining customer needs helps a salesperson match those needs with products or services.

What does this ad say about the company’s policy of listening to customers’ needs?

S

D

285

SECTION 13.2

CONCEPTSAsk students to describe open-ended questions and how they are used in sales. Open-ended questions require more than a yes or no answer and provide informa-tion about a customer’s needs.

KEY TERMSHave students review key terms and rephrase their defi nitions in their own words.

INDEPENDENT REVIEW

L1 Assign and review Chapter 13 activities in the Student Activity Workbook.

L2 Assign and review Chapter 13 activities in the Marketing Math Workbook.

L3 Assign and review Chapter 13 activities in the BusinessWeek Reader with Case Studies.

AFTER YOU READHave students complete the Section 13.2 After You Read section review.

ONLINE STUDY TOOLSHave students go to the Marketing Essentials OLC through glencoe.com for the Section 13.2 practice test. 13.1 Ways to Determine Customer Needs

Discussion After students read Figure 13.1, discuss the ways to determine a customer’s needs, such as observing, listening, or questioning. Let them know that they are not mutually exclusive; a combination of ways can be used.

Caption Answer Most students should agree that a combination of the three methods (observing, listening, and questioning) would usually work best.


glencoe.com286 UNIT 5 — SELLING

Ways to Determine Customer Needs13.1

Observing Customers provide many

nonverbal cues about their product

interests. By carefully observing a customer,

a salesperson can learn a lot about the

customer’s interests. The salesperson

can then use that information to guide the

customer to products that might result in a

decision to buy.

Listening When a customer is ready

to talk, the salesperson should give the

customer his or her undivided attention

and maintain eye contact. Other guidelines

that help to make the salesperson a

good listener are not interrupting until the

customer has finished, providing feedback,

and listening with an open mind.

Questioning Questions can encourage a

customer to talk. When asking questions,

salespeople should begin with general questions,

such as those beginning with who, what, when,where, why, and how. For instance, this

salesperson might ask what color of shoe the

woman is shopping for. Salespeople must be

careful not to ask a question that is too personal

or unintentionally offends the customer. That

might quickly put an end to the sale.

Go to the Marketing Essentials OLC through glencoe.com to find a project on determining customer needs.

• Observe, Listen, Question Selling is based on matching a customer’s needs or wants with the features and benefits

of a product. In the step of the sales process known as determining needs, the salesperson gathers information in

order to match the customer’s needs and wants with a product. There are three ways to do that.

Is there one best way to determine customer needs?

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286





SECTION 13.2

CULMINATING ACTIVITIES1. Tell students they are working as salespeople at a nursery that specializes in orchids, a type of fl ower that is very dif-fi cult to grow. It is often unclear whether a customer has experience raising such delicate plants. Ask students to create tactful questions that can be asked to fi nd out whether a customer knows what he or she is buying. Break students into groups of three or more and have them write scripts for a role play between a salesperson and a customer. Ask teams to act out the role plays in class.

2. Ask students to provide answers to the following questions:

• What are some examples of nonverbal communication? Answers may include tone, facial expressions, and eye movement.

• When determining a customer’s needs, around what three words should you base your questions? The three words are what, when, and where.

NCLB

NCLB Activity correlated to Mathematics and English Language Arts Standards

Key Terms and Concepts

1. Determining needs is used to build the entire sales presentation and is the basis for consultative selling.

2. Asking open-ended questions allows the customer to talk about his or her needs.

3. Do not directly ask about his or her price range. Instead, ask about the rug’s intended use to gain clues of how much he or she expects to pay.

Academic Skills

4. $400; $1,500 � 4 � $375; $375 � $25 � $400

5. Answers will vary depending on the product used and should be in appropriate question format.

Find answers at the Marketing Essentials OLC through glencoe.com.

13.2 AFTER YOU READ


• How much experience has the person had with copiers?

• How many copies will the person be making every week or month?

How to Refine Your QuestioningOnce you have an idea of the customer’s

general needs, then you can ask more specific questions relating to the product. In the case of the copier, you could ask about the need to enlarge or reduce the size of the copy, and the need to collate and staple copies.

Open-ended questions are those that require more than a yes or no answer, such as “What do you dislike about your current copier?” The answer to such a question will provide valuable information about a custom-er’s needs. Keep in mind that some customers will be protective of their privacy; they may resent some nonpersonal questions.

Here are some other dos and don’ts guide-lines for questioning:

1. Do ask open-ended questions that encour-age customers to do the talking.

2. Do ask clarifying questions to make sure you understand customers’ needs. To do this, use opening lines such as “Let me see if I understand you” or “Are you look-ing for a product that can . . .?”

3. Do not ask too many questions in a row. This will make customers feel as if they are being cross-examined.

4. Do not ask questions that might embar-rass customers or put them on the defen-sive. Never ask, “How much do you want to spend?” Instead, ask about the intended use of the product and any past experience. That should give you enough information to determine the correct price range on your own.

13.2 AFTER YOU READ

Key Terms and Concepts 1. Why is determining needs an essential step in the sales process? 2. How can you use open-ended questions to encourage customers to talk?3. You are a salesperson in a rug store that carries inexpensive, medium-priced,

and very expensive handmade area rugs. How would you determine your customer’s price range?

Algebra: Using Symbols You can use algebraic symbols to rep-resent unknown quantities and write equations to solve problems. 1. To solve this problem, let q repre-

sent the quarterly payment. Use it to write an equation to fit the situation described in the word problem.

2. The equation should show that q equals the yearly premium divided by 4 to determine the quarterly premium, plus the $25 surcharge.

Academic SkillsMath

4. Based on your analysis of the customer’s needs, a premium of $1,500 per year is required for long-term health care insurance for your client. You want to offer a quarterly payment sched-ule. There is a surcharge of $25 per quarter for this service. What are the quarterly payments?

English Language Arts/Writing

5. Use the product you used at the end of the last section to write five to ten questions that could help determine a customer’s needs in the sale of that product.


Check your answers at the Marketing Essentials OLC through glencoe.com.

NCLB

287




Training and classes other than college include trade schools, workshops, and internships.


Lifelong Learning

CAREER INFORMATION Have students go to the Marketing Essentials OLC through glencoe.com

and fi nd the Chapter 13 Careers page and click on the link for the American Marketing Association’s Careers Strate-gies and Tips. Ask students to select one article, read it, and summarize it in three short paragraphs.

INITIATING THE SALEEntrepreneurs have to sell. Their livelihood is based on their ability to determine the needs of clients and offer their skills and services as a solution. Customer research and feedback, as well as market trends, may help entrepreneurs in determining needs. The ability to determine needs quickly and accurately is a necessary skill for any entrepreneur.

PrimarySourceAsk students to go to the Marketing Essentials OLC through glencoe.com and fi nd Chapter 13 Resources. Ask them to click on the link for the American Marketing Association’s marketing dictionary and read the defi nitions of the terms they fi nd that are related to initiating the sale.

Test-Taking StrategiesBreak the class into four teams. List key terms on the board and have volunteers defi ne and discuss them. Give a point to each team that gives the correct answer. This quiz format allows students an interactive forum for review.


MELISSA MCINTOSH, MJEFOUNDER1214 ENTERPRISES, INC.

What do you do at work?

For my corporate clients in law, real estate, medicine, engineering, architecture, and construction, I can provide a full spectrum of design and print-brokering services so that they have one contact for all their marketing collateral needs. A big part of my job is focused on service: handholding a brochure all the

way through the print process with an outside commercial printer, making 900 tweaks to a corporate logo to get it “just right,” and making sure that I pay attention to all the small details.

What skills are most important to you?

The ability to be fl exible. Being able to keep from getting frustrated and to move between being a marketing consultant, tech support guru, and graphic artist. Having a background where I’ve worked with computers since the mid-80s and have learned a lot in the trial and error department has really helped.

What is your key to success?

Very simple: hard, hard work. In any of the jobs I’ve had, either in education or business, and in owning my own company now, I have never bragged that I’m the smartest, most creative, most cutting edge, or whatever. But how I have always had an edge over the competition is that I’m willing to out-work them. If the “what does it take” requires evenings and weekends to get the job done just a bit better than the other guy, fi ne.

Courses Marketing, communication, computer science

Degrees BA, MBA

Before starting their own companies, many entre-preneurs train at companies that do the work they want to do. To eventually run a marketing consulting fi rm, the best career track is to work in marketing, sales, and communications departments.

Growth to increase faster than average for the next ten years

Source: Occupational Outlook Handbook

Computer skills, sales and communication skills, versatility, an eagerness to learn and gain new experiences

Go to the Marketing Essentials OLC through glencoe.com for a career-related activity.

Other than college, what kind of training and classes might be worth pursuing?

288






CHAPTER 13 REVIEW

2. The seven steps are approach, needs determined, product presentation, overcoming objections, closing the sale, suggestion selling, and relationship building.

3. The main purposes of the approach are to begin a conversation, estab-lish a relationship with the customer, and focus on the product.

4. Answers will vary but may include an introduction, a fi rm handshake, and a smile. The greeting may resemble, “Hi, I am ______ from the XYZ Copier Company. I am here to show you a way to reduce your expenses and improve your employees’ productivity.”

5. Determining needs helps match customers’ needs with product features that solve their problems.

6. Three methods for determining customer needs are observing, listening, and questioning.

7. Questions about intended use and experience should be asked fi rst.

8. Needs should be determined immediately after the approach.

9. Look for buying motives that are communicated nonverbally, or expressed without words. Facial expressions, hand motions, and eye movement provide clues about a customer’s mood and interest in a product.

10. Listening helps you pick up clues to the customer’s needs, which can also be used for the product presentation.

11. An open-ended question requires more than a yes or no answer, and provides valuable information about a customer’s needs.See the Glossary at the back of this book

for defi nitions of Key Terms, Academic Vocabulary defi nitions are on the book’s OLC.

1. A sample answer might read: Key Terms Nonverbal communication is expressing yourself without the use of words.Academic Vocabulary An item is an object of attention, concern or interest.

Ask volunteers to read the summaries aloud and rephrase them in their own words. Have interested students enact the three retail sales approaches.ELL Have students translate the key con-cepts into their own language fi rst, then in English.


C H A P T E R 13 R E V I E W

SECTION 13.1• Seven steps in the sales process are approach, determining needs, product

presentation, overcoming objections, closing the sale, suggestion selling, and

relationship building.

• Relationship building is important to create loyal customers.

• The approach step of the sale can make or break the sale.

• The three purposes of the approach are to begin a conversation, build a relationship, and

focus on the product.

• The three retail sales approaches are service, greeting, and merchandise.

SECTION 13.2• Determining needs is a step in the sales process that should begin as soon as possible

and continue throughout the process.

• Three methods to determine needs are observing, listening, and asking questions.

Key Terms• service approach (p. 280)• greeting approach (p. 281)• merchandise approach

(p. 282)

• nonverbal communication (p. 284)

• open-ended question (p. 287)

Academic Vocabulary• establish (p. 279)• item (p. 282)• alternative (p. 283)• seek (p. 284)

1. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence.

2. What are the seven steps of a sale? (13.1)

3. What are the main purposes of the approach

step in the sales process? (13.1)

4. Describe an initial business-to-business

sales approach by a sales representative

from the XYZ Copier Company meeting a new

prospect. (13.1)

5. Why is determining needs an essential step

in the sales process? (13.2)

6. List three methods for determining needs.

(13.2)

7. What types of questions should be asked to

determine customer needs? (13.2)

8. When should a salesperson determine

needs? (13.2)

9. What do you look for when observing a

customer? (13.2)

10. Why is listening important in sales? (13.2)

11. What is an open-ended question? (13.2)

289

12. Workplace Skills Students should introduce them-

selves as sales representatives from the XYZ Corporation while using the appropriate greeting for each country: Japan: handshake and slight bow; Germany: fi rm, short handshake; Brazil: light handshake that lasts a long time; Singapore: slide palms together and bow.

13. Technology Applications Reports might indicate whether the

car dealer’s vehicles use metric or English tools as well as tools used for typical problems.

CHAPTER 13 REVIEW

14. Math Practice 5 miles � 10 miles/hour � 30

minutes; 8:00 A.M. � 30 minutes � 8:30 A.M. Students might suggest letting the customer know that you are going to be late or allowing for a longer commute time to prevent the situation from happening again.

15. English Language Arts Accept all reasonable answers. For

example, under The Approach in Business-to-Business Selling on page 279 compares the initial approach with the pre-approach.

16. Why Does the Approach

Used in Business-to-

Business Selling Differ

From the Retail Approach? During an appointment with a

gardening supply store, the busi-ness relationship is already present, an appointment has probably been made, and business can be attended to with less greeting and more listen-ing and questioning.

Formative AssessmentFormative assessment is an essential component of classroom work. This type of assessment provides information that is then used as feedback to modify teaching and meet student needs.

L1 Have students list the three methods of determining customer needs.

L2 Have students describe the methods of determining needs in the form of a story.L3 Have students write plays in which they act out the methods of determining customer needs in both business-to-business and retail settings.

If the results of this formative assessment seem low, consider the following activity:

Read each of the key terms aloud. Have students defi ne the key terms and use them in a sentence. Clear up any confusion students may have.



12. Workplace Skills Human Relations Use the Internet to

research different ways of greeting people.

Conduct a role play with classmates to

demonstrate the proper way to greet

customers who are from Japan, Germany,

Brazil, and Singapore in a business-to-

business setting. Assume you are employed

by the XYZ Corporation.

13. Technology ApplicationsResearch During Pre-approach Imagine

that you are a sales representative

for a tool distributor such as Grainger and

you have a meeting with a car dealer who

repairs cars on the lot. Using the Internet,

research the car dealerships and repair shops

to determine the needs that might be met by

items in your product line. Prepare a short,

one-page report on your fi ndings.

14. Math Practice Budgeting Your Time You are stuck in

traffi c, and you are going to be late for your

fi rst meeting with a potential customer. You

are traveling at ten miles an hour and have fi ve

miles to go. If it is 8:00 a.m., at what time can

you expect to arrive if you keep traveling at that

speed? What should you do? How could you

prevent this situation from happening again?

Measurement: Using Formulas

Rate (r), time (t), and distance (d) are related

according to the formula rt = d. If you know

two of the quantities, you can fi nd the third

using this formula.


15. English Language Arts Compare and Contrast Skim the chapter

and reread longer paragraphs that include

several sentences. Find an example of a

paragraph that compares and contrasts two

things. Write a few sentences identifying

the paragraph, describing the two things

compared or contrasted, and explaining

the similarities or differences.

16. Why Does the Approach Used in Business-to-Business Selling Differ From the Retail Approach?

Imagine that you are a salesperson selling

seeds to garden supply stores. Think of how

you would approach the sale using a retail sales approach. Do you think that would be an

effective approach? Why or why not?

17. Approaching and Determining Needs Role-play the approach and determining needs

steps of a sale with a classmate by using a

personal product, such as a jacket, calculator,

or purse. Assume you work for a retailer.

Activity Make a list of guidelines for

listening, observing, and asking questions.

At the conclusion of the role play, provide

the salesperson with constructive criticism.

Change the product and switch roles with your

partner to repeat the assignment.

290

17. Approaching and

Determining Needs Role plays and lists will vary; all

students should demonstrate communication skills such as ob-serving, listening, and questioning.

18. Selling on the Internet Customers’ questions will depend

on the online company selected; all questions should refl ect intended use and experience.

MINI-QUIZRead these sentences to the students and have them volunteer the missing word(s):

1. Always ask ________ customers if it is a good time to see them. (business-to-business)

2. With ________ approach, the salesperson asks the customer if he or she needs assistance. (service)

3. ________ approach is usually the most effective initial approach in retail sales. (merchandise)

For an expanded chapter quiz, go to Chapter 13 in the TeacherWorks™ Plus DVD and to Chapter 13 in the ExamView® Assessment Suite.

CHAPTER 13 REVIEW

STANDARDIZED TEST PRACTICE

ANSWERS

1. B 2. T

TEST-TAKING TIPSWhen your students have a standardized test coming up, these last-minute tips and strate-gies will help students relax and do their best.

Test Format Help your students become familiar with the format of the specifi c test they are going to take by practicing with test items that imitate the actual test items.

Test Timing Have your students take one or more timed practice tests so that they become comfortable with the test format.

Students should be evaluated according to the performance standards noted in the role play. For another DECA role play, go to the Competitive Events Workbook or the Student Activity Workbook, or go to the Marketing Essentials OLC through glencoe.com.


DECA Advisors CornerSelect any of DECA’s series events to reinforce the lessons in this chapter. The role-play situations dealing with sales and the sales process will give your students opportunities to master initiating the sales process and view it from both sides.

Test-Taking Tip


18. Selling on the Internet Select a company that sells its products on the

Internet, such as Dell or Gateway computers.

Assume the role of a customer and research

the questions you should ask in order to

decide on the best buy for your needs.

Role PlayAssistant Manager, Kitchen StoreSituation Assume the role of assistant

manager of a kitchen supply store. The store

carries cooking-related small appliances,

cookbooks, gadgets, and cookware. Your

duties include training new employees. A newly

hired employee (judge) began work last week.

Each day you review an aspect of sales training

with the new employee (judge). Later today you

will review the approach to the sale.

Activity You are to prepare your presentation

to the new employee (judge). You are to include

an explanation of the three types of retail sales

approach. You are to also provide an example

of each that applies to your store.

Evaluation You will be evaluated on how well

you meet the following performance indicators:

• Explain the selling process.

• Establish relationship with customer.

• Recommend specifi c product.

• Orient new

employees.

• Foster positive

working

relationships.

For more information and DECA Prep practice, go to the Marketing Essentials

OLC through glencoe.com.


STANDARDIZED TEST PRACTICE

1. Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.

If you travel 210 miles in 3.5 hours, what is your average speed?

A 70 mph B 60 mph C 65 mph D 80 mph

2. Directions Choose either True or False as the answer. Write the letter for the answer on a separate piece of paper.

Open-ended questions require more than a yes or no answer.

T

F

Read and consider all of the answer choices before you choose the one that best answers the question.

Test-Taking Tip

291





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