Sales Management: Products and Services. Dr Jae K Shim

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       CHAPTER 5

       Information on the Company, the Product, Competition and Advertising

      “An ounce of prevention is worth a pound of cure” and how carefully a salesperson prepares for a sale will greatly determine how successful she will be. It is, therefore, important for the salesperson to know certain things about her company, her product, her competition, and current advertising before approaching the prospective buyer.

Company information

      The salesperson serves as a personal representative of her company and should be well informed about its history, growth, and development. How has it grown since its beginning? What are its particular policies which distinguish it from its competitors? What is its present size and sales volume? What is the present price of its stock? What new product lines and improvements have been made, and what are its future plans and objectives? What are its attitudes and practices relating to current social issues such as pollution and civil rights? The salesperson should also be familiar with central and regional operations of the company, where they are located, plus the name of major executives and some background information on each of them. More importantly, the salesperson should know the company’s policies and procedures as related to prices, discounts, delivery, credit, and service.

Product information

      It is the salesperson’s responsibility to be well informed on her product. She should know how her product is made and be fully informed on its different styles, models, sizes, and prices. Markets are constantly changing and most products are periodically redesigned and improved; keeping up to date on product knowledge is, therefore, a never-ending process. The sources for obtaining current information on her product are many. They include company manuals and brochures, training programs, advertisements, magazine and newspaper articles, discussions with other salespeople, trade and association reports, and other related sources.

      A salesperson should also know the major selling points and disadvantages of her product or service and specifically how it differs from other products or services. For instance, how can it fulfill varying needs and problems of prospective buyers and what are its limitations? Every product or service has some limitations, and the salesperson should know what they are and be prepared to clear up common misunderstandings and answer objections. Furthermore, the salesperson should be informed on current product research and advertising. Such material can be shown and/or distributed to prospective buyers and serves as an effective tool for selling. In addition, the salesperson should know about operating and servicing her product, as well as the guarantees and warranties that are offered.

Information on competition

      Being informed about her own company and product is not enough; the salesperson must also be well informed about the products or services offered by her competitors. Prospective buyers will frequently refer to competitors’ products or ask specific questions about them. The salesperson should, therefore, know the advantages and drawbacks of each competitive product and be prepared to explain and prove the particular merits of her product in comparison with specific competitor products. Furthermore, she should have some idea about the sales volume and market share of each competitor and know their basic policies and procedures as related to prices, discounts, credit, and service. Rather than directly criticizing the products of her competitors, the salesperson should emphasize the advantages of her own product.

Advertising and selling

      Advertising is addressed to the masses, while personal salesmanship is geared to specific individuals. Advertising is also designed to presell the product or service, and personal salesmanship is used to follow up with more detailed information and to close the sale. Effective advertising and personal salesmanship work together to achieve the same objective -- namely, to stimulate sales. Each is important, and these two functions must operate together as a coordinated effort.

      It is the salesperson’s responsibility to keep abreast of all current advertising conducted by her company. She must know the content of each ad and when it appeared. She should be able to explain to dealers the uses and advantages of advertising and show them how it can help them move the product off their shelves after she has sold it to them. The following are some common points she can mention: (1) advertising increases demand for the product or service. A dealer can sell advertised products more quickly than unadvertised ones because the consumer is presold to a certain extent and is already aware and informed about the product; (2) advertising creates faster turnover of inventories, and faster turnover means lower operating expenses and greater profits; (3) through advertising and branding, consumers can identify quality products that they wish to buy again. Such identification also helps to establish a good reputation for the dealer who handles the product; (4) advertising not only helps the customer to identify products, but also provides her with valuable information about their quality and performance.

      Advertising also helps the salesperson in many ways:

      1.It develops customer interest and helps to presell products and services.

      2.The salesperson can use advertising to emphasize and reinforce sales points she mentions in her presentations.

      3.Advertising reaches the masses and serves as a means for securing new leads and contacts. Thus, it often reaches some people whom the salesperson, because of distance or other circumstances, is unable to contact.

      4.Sometimes the salesperson is unable to call on all her customers as often as she would like, and advertising helps her sell between calls.

      5.The presentation of new ideas and information through advertising stimulates interest and increases motivation in the salesman herself.

      To use company advertising effectively, the salesperson should carry copies of current advertisements to show to prospective buyers. She should also be well informed on her company’s total advertising program and be able to explain its uses and benefits to the buyer. Sometimes a buyer will ask questions on how she can tie her efforts in more effectively with the advertising campaigns, and the salesperson should be able to give the buyer appropriate suggestions. It is also the salesperson’s responsibility to get the buyer to use any direct mail, point-of-purchase, or cooperative space advertising her company provides. Finally, she should obtain the buyer’s reaction to, and suggestions concerning, her company’s advertising in order to make it more effective.

      It is recognized that the salesperson’s knowledge of her company, her product, competitive products, and current advertising will vary with her experience and training. It sometimes takes months and even years to prepare for a particular sales position. Furthermore, it is a continuing process, for markets and products are constantly changing. To keep abreast of these changes is an important responsibility of the salesperson, which will greatly determine her success or failure.