10.3. Closing the Sale

What is selling?

Selling can be defined as a personal communication to a customer to make a sale. This contrasts with marketing communications, such as advertising, which are not personalised.

Selling is the final link in the distribution chain and is vital for the success of a business. Market research, product development, pricing, and promotion strategies will all have been wasted if an organisation cannot 'close the sale'.

Sales communications methods

Producers of goods or services who distribute them directly to the final consumer rely heavily on the skills and efforts of their sales teams to generate sales revenues. If distribution is through an intermediary, then each organisation must rely on the sales efforts of every organisation in the channel to work towards expanding sales.

Poor sales from one organisation will feedback through a distribution channel. For example, if a retail outlet is unable to sell its stock of chocolate bars, it will reduce its order for them from the wholesaler. As stocks build up, the wholesaler will reduce its order from the manufacturer of the chocolate bar. Eventually the manufacturer may take the decision to reduce production and either switch resources to another item, or axe the product altogether.

If sales teams in each organisation involved in a channel of distribution are to be effective in making and expanding sales, they will need to be fully informed of product details, new lines, discounts offered, and the various selling techniques they can use to make a sale. The objective of various sales communications methods is to do just that: to inform and motivate sales teams to generate sales.

Sales communication methods include:

Sales campaigns: these can be used to promote an individual product or the product range of a particular manufacturer. A campaign may be agreed between the manufacturer, wholesalers, retailers, and agents in a distribution chain. The sales forces within these organisations will promote the product vigorously, offering price discounts for bulk orders, and distributing promotional materials such as posters, leaflets, or even free gifts and samples to give away. The campaign will also usually be supported by heavy advertising on TV and through other media, such as newspapers and magazines.

Sales conferences: these can either be internal to an organisation or, more likely, will involve sales staff from different organisations sharing a common interest in the promotion of a particular product. New product developments and sales techniques can be discussed in lectures and seminars.

Sales meetings: these are internal meetings of sales teams, often from different regions, used to discuss sales performance and set targets for improvement. Meetings may be confined to regional managers of sales teams who will then 'cascade' with their sales teams. Pyramid selling relies heavily on sales meetings, with outsiders often being invited in an attempt to recruit them into the sales teams.

Sales letters and memos: these can be sent out to sales teams on a regular basis to update staff on sales performance, provide product information, news of price discounts and new product lines, sales campaigns, future conferences, and meetings.

Trade fairs and exhibitions: often combined with sales conferences, these are used primarily to promote products directly to consumers -especially to industrial buyers. They are also a useful forum for sales teams from different organisations to investigate rival products and discuss selling techniques. Technical staff will be on hand to demonstrate products and gauge consumer reaction. Well-known examples include the Stitching and Knitting Show, the Motor Show, the Ideal Home Exhibition, and Confex, a trade fair to advertise the services of firms who specialise in the organisation and design of exhibitions, stands and advertising.

The role and responsibilities of sales staff

The quality of sales staff is of vital importance in the marketing mix. Despite heavy investment of time and money in product development, pricing strategies, advertising, and other promotional methods, no organisation will succeed in the marketplace if sales staff fail to carry out their duties adequately.

Sales staff in retail outlets or those involved in telesales or door-to-door selling are no longer expected simply to operate tills, telephones, or give product demonstrations. The duties and responsibilities of sales staff are expanding, and training is essential if they are to perform these well. However, training is often overlooked or poorly designed.

The main duties and responsibilities of sales staff are to provide:

Customer care. Looking after a customer while they make up their mini is important if they are not to feel rushed into a decision. This could involve helping them try on garments in a shop, giving them a cup of tea and somewhere to sit while they wait at the hairdresser's, or just giving them time to browse without interrupting. Looking after the customer in a helpful, friendly, and caring way increases the chance they will purchase from the organisation and remain loyal to it in the future.

Point-of-sale service. This can be as simple as placing shopping in carriage bags for customers, providing product information, or checking dial electrical goods work properly before they leave the shop.

Product knowledge. Few consumers have the ability or time to investigate the full range of products available. For example, products such as computers and camcorders are technically very complex, and many are imported from overseas where product standards may differ. Customers will often rely on sales staff, either in a shop or on the telephone direct to the manufacturer, to provide them with technical details of product performance, and to recommend best buys. They will be disappointed if staff are unable to give these details and may go to another organisation to make their purchase.

Sales information and help. This can involve providing information on product lines, how to order goods or services, and credit facilities available, or simply pointing out where customers can find the product they are looking for in a shop.

Taking payments and giving refunds. Consumers can now make payment for their purchases in an increasing number of ways. These include cash, check, credit card, store cards, direct debit cards such as SWITCH or CONNECT, by credit note issued by the organisation against a returned product, and money-off vouchers. Sales staff must know the procedure for accepting different methods of payments and processing - for example, what documentation is required, what information from a credit, debit, or store card is needed, and how the payment method is to be authorised.

After-sales service. A useful way to promote customer loyalty and repeat purchases is to follow up the purchase with after-sales care. This is especially important when the customer has received a service or personalised product, such as carpet cleaning, or double-glazing. A follow-up telephone call or personal visit can establish if the customer is satisfied, or what can be done to overcome any dissatisfaction they may have. After-sales service also extends to providing replacement items, spare parts, technical advice, or arranging repairs. Customers need to have confidence that they can find help if anything goes wrong. Organisations that fail to provide this kind of help will soon lose out to rival firms that do offer after-sales care.

Knowledge of Consumer Protection laws. A number of laws and regulations have been passed by the governments all over the world to protect the consumer from misleading claims and practices by producers. Failure to comply with these laws may involve a company in expensive legal actions. Sales staff must be aware of the requirements of these laws.

Feedback. Sales staff are often the ‘eyes and ears’ in the market for goods and services. They can provide valuable market information on changing customer wants, willingness to pay, and perceptions of products and corporate image.

Sales administration

One of the main responsibilities of sales staff is to ensure that the administration and processing of sales is quick and cost-effective. Customers will soon become dissatisfied if staff are slow to process their orders or arrange credit, and poor sales administration can lead to higher costs and lower sales.

With the increasing use of computerised administrative procedures, processing nowadays can be considerably easier and quicker, but sales staff need to have the right training. Sales procedures include:

Processing orders. This involves receiving orders for goods or services over the counter, by phone or fax; checking the order against stock; advising the customer of availability, prices, acceptable methods of payment, and delivery dates, and entering this information on computer or paper records.

Credit clearance and control. Increasingly, both organisations and private individuals are making payments on credit extended to them either by the organisation from which they are making a purchase, or from a credit card or loan company. Sales staff will be expected to administer and control the giving of credit. This will involve the following tasks:

• completing credit agreement documents;

• checking the creditworthiness of a customer with the accounts department in the organisation, credit card company, or bank;

• establishing a credit limit for each customer based on feedback from the accounts department, credit card company, or bank;

• sending out reminders for late payment;

• chasing bad debts.

Processing customer accounts. This will involve itemising purchases on credit made by individual customers, adding up their total bills, sending out accounts, and receiving payments. As many of these tasks are now computerised, sales staff must make sure that the correct details of purchases are entered into the right accounts.

Working out delivery schedules based on priorities and routes. Staff must ensure that deliveries are prompt, and that the right goods reach the right customers in good condition. Routes should be planned to minimise transport costs and travel time between different delivery addresses.

Maintaining security. This concerns keeping records of customer names, addresses, payments and accounts confidential, as well as handling money securely.

Prospecting. In many organisations, prospecting and investigating sales leads is done by telephone. Sales staff pick telephone numbers and phone potential customers to see if they are interested in purchasing a particular good or service. This is a popular method used by organisations selling advertising space in newspapers or magazines, and by double-glazing and home security firms. However, prospecting can also be undertaken by sales staff in shops. Many customers enter shops to browse, not knowing exactly what they want. A sales assistant can offer help and advice, and in so doing, promote various products to customers in the hope of making a sale. A good salesperson will learn to recognise a buying signal that suggests a customer is happy with the hard or soft 'sell'.