Customers to Choose Right Products (vocational course Retail management- 10+1 class

 Customers to Choose Right Products

Content:- 

•        Methods   of  Selling

•        Meaning of arrangement of products for sale  in-store

•        Procedure for arranging the products

•        Identifying products responsible for the sale

•        Sales  Promotional  activities

•        Sales promotion techniques

•        Dealing with customers

•        Closing with a customer

•        Factors influencing  the successful closing

•        Techniques of closing a sale

Customers to Choose Right Products

In the retail business, products are highlighted in demand as per customer needs.  Products are kept on the display after analyzing the demand and to help customers select the required product.

Methods   of Selling

Sale is the act of selling a product in return for money. It is the beginning of a relationship between customer and vendor or an extension of that relationship.

Retail selling methods

(c) Agency-based: It refers to the direct personal demonstration and sale of products and services to the consumer.

(b) Proforma sales: The term ‘proforma’ is used to describe a document that provides a courtesy or satisfies a minimum requirement, conforms to a  norm or is decisive, and tends to be performed as a  formality.

(c) Agency-based: It is a contractual arrangement, in which the agent has the right to negotiate the sale of the principal’s goods and services.

•        sales agents

•         Telemarketing or telesales

•        Retail sales

(d) Travelling salesman: They are a representative of a  firm who visits shops and other businesses to show samples and gain orders.

(e) Auction sale:  It is a public sale. Customers who are willing can participate in an auction. Goods are sold to the highest bidder, i.e., one who has quoted the highest price.

(f)  Business-to-business (B2B) sales:  It refers to sales made by another businessman rather than an individual customer. 

Meaning of arrangement of products for sale in-store

 

The products from different manufacturers are displayed in retail stores.  These products are arranged in a systematic manner on shelves based on the space provided in the stores.

•        Need for arranging products

•        Repeat customers: The basic reason for companies to rearrange products is to give their stores a fresh look. This keeps current customers coming back to the store.

•        Sales promotion:  Retailers rearrange products for sales promotion.  Rearrangement of the stock increases customers.

•        Brand image: Some retailers rearrange products routinely to maintain their brand image. Monthly rearranging of products and changing of color schemes is essential in building new and fresh styles of product arrangements.

•         Seasonal:  Retailers display products in one area.  The retailers rearrange to display seasonal products.

Procedure for arranging the products:-

•        The process of arranging products in a retail store compels activity.

•        Straight floor plan: In this floor plan, a retailer arranges products in a straight line. It is the most commonly used floor plan in the Indian retail industry and is economical as well.

•        Diagonal floor plan: This type of floor plan has more visibility for the store staff and customers. It requires a small space for arranging the products.

•        Geometric floor plan: In this floor plan, a retailer uses racks and other fixtures to create a different style of floor plan.

 

Identifying products responsible for the sale

Customer service associates (CSA) in a retail store are responsible for identifying the products that are to be sold.

1. He or she must have full information about the retail store and the products that are being sold.
2.  The  CSA  must follow the instructions given by the store manager or supervisor regarding the stock that is to be received from different manufacturers.
3. The store manager or supervisor allocates the product sections to the CSA.

Sales Promotional activities

Sales promotion is the fastest growing area of marketing activities.  It is a  major component of promotion that helps the retailer in improving sales and generating higher profits.

1.  Stimulate (प्रोत्साहित करना) inquiries from consumers, asking for detailed information about a product

2.  Increase the product trials in the expectation that the trial would lead to customer satisfaction

3.  Encourage repurchase of goods; develop loyalty in a customer’s mind

4.  Initiate inventory building by retailers to help the consumers with a ready supply

5.  Get the promotional assistance of dealers by co-coordinating with personal selling.

Objectives of sales promotion

Sales promotion techniques

(a) Vendor originated:  Vendor-originated sales promotion techniques are classified as in-store activities, point of display, trade incentives, direct promotion to customers, and pack design.

    (i)          In-store activities:  These activities of sales promotion are targeted to give cash or kind advantage to customers.

  (ii)          Point-of-sale display material:  These are the material provided by vendors for placing products the customers often buy.

 (iii)          Trade incentives: These are trade-offs or cash incentives directly provided by the vendors to the retailers.

(iv)          Direct promotion to customers:  The vendor manufacturer may make use of direct promotion at the consumer’s doorsteps.

  (v)          Pack design: It is one of the most important techniques of promotion for the retailer. The retailer may decide to accept a package design over its contents.

 

(b) Retailer originated:  All those measures which normally motivate the customers to buy more, and thus, increase the sale of the product are retailer-originated promotion techniques.

    (i)          Window display: A window display in a shop is for displaying items for sale or otherwise designed to attract customers to the store.

  (ii)          In-store  display:  In-store  display  includes many  promotion  techniques,  such  as mass  display,  multiple  product promotions, demonstrations, store loyalty cards, free gifts, point-of-sale  display, etc.,

Ways   to influence customer buying

1.  Identify the prospective customer and take initiative for a dialogue in a friendly manner.

2.  Collect as much relevant information as possible about the product’s sale presentation.

3.  Enlighten the product’s features and advantages in comparison with the competitor’s product.

4.  Present or demonstrate the product with patience in an interesting manner to the prospective customer.

5. Objections raised, if any, should be attended to immediately and the issues should be resolved.

6.  Enlighten the product’s warranty period and assure other sales services, if needed.

7.  Maintain continuous relations with the customers to get their feedback on product satisfaction.

 

Dealing with customers:

The sales associate must analyze the situation and answer accordingly. This will satisfy the customer and he or she will have a positive attitude towards the person, as well as, the service provider.

 

When an item is not available

•With positive language: The sales associate may say that the product will be available next month and I will place an order for you if needed.

•Without positive language: The sales associate may tell the customer that the product required is unavailable.

Closing with a customer:

 

The sales associate must always aim to ‘close’ a conversation.  This does not refer to closing the sale.

(a) Care must be taken about getting what the customer requires

(b) If the customer needs information or has a query to be answered, the sales associate must provide the right information.

(c) The customer determines what is needed and that the need is met in the right way.

Dealing with angry customers

    (i)          Apologise sincerely:  “I  am sorry”  is a  mandatory response in such situations.

  (ii)          Sympathise:

(iii)          Accept responsibility:  The sales associate must accept responsibility for a customer’s unhappiness.  Many a time, angry customers need to be empathized with.

Factors       influencing the     successful    closing:

Sales associates are, generally, evaluated by their ability to close the sales.

•Salesperson’s personality:  The personality of the sales associate influences the closing of a sale. It refers to the sum total of everything about a salesperson that influences the prospects favorably.

•Awareness of company policies:  The sales associate must have the basic knowledge of the company when he or she intends to close the sale with prospective customers.

•Product information:  Product knowledge is necessary for the sales associate. He or she gives every possible information to the customer about the product to get orders.

•Need of customer:  In order to close the sale, sales associates should have the knowledge of prospective customers.

 

Techniques of closing a sale

•Natural close:  It is also called as ‘ask for it’ close. The sales associate has to be sure that the customer does not sense that he or she is using a special formula to close a sale.

•The order form close:  It is different from the natural close technique, i.e., the questions asked are not in direct reference to the purchase. For example, ‘‘Sir, shall I make the invoice or bill?’’

•The summary close: Here, the sales associate summarises the list of benefits that the customer receives if a  product is purchased from the store.

 

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