- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Core Area: AGRICULTURAL BUSINESS MANAGEMENT (CLF1550) Unit Title: SALES AND SELLING ____________________________________________________________________________ (CLF1553) Topic: DETERMINING NEEDS AND Time Year(s) WANTS OF CUSTOMERS 1 hour 3 AND 4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (*-*) - List the four groups of customers dealt with in agriculture. (*-*) - Describe the steps most people go through when making a purchase. (*-*) - Discuss what motivates people to buy. (*-*) - Select appropriate questions and methods for determining customers needs and wants. Special Materials and Equipment: none References: Ditzenberger, R., & Kidney, J. (1986). SELLING: HELPING CUSTOMERS BUY (2nd ed.). Cincinnati, OH: South-Western Publishing. Miller, Larry E. (1979). SELLING IN AGRIBUSINESS. New York: McGraw-Hill. Resources: California Agricultural Teachers Association. (1991). CATA CURRICULA CODE. Available from: Agricultural Education Program, Career-Vocational Education Unit, California Department of Public Instruction, Sacramento, CA 94244 National FFA Foundation. (1991). FFA SELLING AND FUNDRAISING GUIDE (and Transparency Set). Available from: FFA Supply Service, P.O. Box 15160, Alexandria, VA 22309-0160. University of Missouri-Columbia. (1984). AGRICULTURAL BUSINESS SALES AND MARKETING: Instructor's Guide (Unit V: Sales and Selling. Available from: Instructional Materials Laboratory, University of Missouri, 22316 Industrial Drive, Columbia, MO 65202 Evaluation: Quiz (attached) TOPIC PRESENTATION: DETERMINING NEEDS AND WANTS OF CUSTOMERS A. The main objective in sales is to supply the needs and wants of customers 1. Have a basic understanding of what motivates people to buy 2. Know how to appeal to those motives. B. Four Groups of Customers Dealt with in Agribusiness Selling 1. Prospective customers - Found primarily in retail businesses with no specific purchase in mind. 2. Customer - Someone with a fairly definite idea that he or she wants to buy someting. 3. Casual visitors - People with no purchase in mind; they may not even be shopping. 4. Customers with complaints - Found in all areas of business. a. Supervisors have definite protocols for handling customer complaints. b. New employees should discuss the steps in for handling customer complaints with supervisors. 2. There are the four commonly recognized steps that most people go through when making a purchase. They are: a. Step 1: Attention - The person's thoughts are engaged on a specific item or service. b. Step 2: Interest - The attractiveness or usefulness of the item(s) has been noticed. c. Step 3: Desire - The item is wanted by the person considering it. d. Step 4: Action - The customer makes a decision to buy or not to buy. __________________________________________________________ ACTIVITY: 1. Discuss with the class why a salesperson who is aware of the steps in making a purchase is likely to be more effective than one who is not. 2. Ask the students why they might want to buy a car; list their reasons on the board. Divide the reasons into needs and wants. After the following material has been covered, further subdivide the needs and wants into categories. __________________________________________________________ C. What Motivates People to Buy? 1. Basic Human Needs a. Refer to Maslow's "Hierarchy of Needs" (See CLF1251) 2. Wants a. Those things that are desirable but are not essential to survival. 3. Other Factors that Influence Buying a. Money 1) How much does the item or service cost? b. Priorities 1) What does the potential customer need most? 2) What does the potential customer want most? c. Self-Confidence 1) A self-confident potential customer is more likely to buy. 2) A self-confident salesperson is more likely to sell. d. Self-Expression 1) If an item or service for sale enhances a potential customer's goal's or likes he/she is more likely to buy. 2) If the item triggers a potential customer's dislikes, he/she will not buy. 4. Meeting Needs and Wants of Customers 1. People's strongest motivation is for their basic needs of food, clothing, shelter, safety. 2. Once a need is met, there is no longer drive to meet that need. 3. Satisfying one need may provide for satisfaction of other needs at the same time. 4. Needs can usually be satisfied in more than one way. 5. Although people may have a lot in common (such as the same amount of income), they fulfill their needs in different ways. 6. Some buying is based on emotions such as love or recognition. 7. Some buying is based on rational motives such as cost, quality, and service. 8. Customer needs that are not immediately apparent, can be activated by a skillful salesperson. D. Methods Used to Determine and Fill Customer Wants and Needs __________________________________________________________ ACTIVITY: Ask the students how salespeople can determine the wants and needs of potential customers. Explain that understanding what the customer's needs are assists the salesperson in meeting those needs and is an important step in becoming successful at selling. Use Handout #1 to help students understand how to relate product features to a customer's needs. __________________________________________________________ 1. Methods to Determine Needs a. Ask direct questions and give clear answers to the customer's questions. b. Observe what merchandise the customer looks at. c. Watch the customer's facial expressions for clues about his/her reactions to a sales presentation. d. Listen carefully to what the customer says. 1) The content of the comments should be addressed. 2) The manner of the comments should be noted. e. Don't hastily judge customer needs by appearance alone. 2. Methods to Fulfill Needs a. Point out product benefits that best fit the customer's needs. 1) Remember that the customer buys satisfaction. 2) What the product does is important for the customer. 3) Converts technical knowledge about the product into terms understandable to the customer. b. Points to Remember when Explaining About Product Facts 1) Convey facts in terms the customer can understand. 2) Relate facts to customer benefits. 3) Be enthusiastic and positive about the features of a product. 4) Demonstrate the features of the product. 5) Facts should not be stated solely to show off the salesperson's knowledge. 6) Use facts as a tool to persuade the customer to buy. E. How Can the Type of Customer Help You Meet Their Needs? __________________________________________________________ ACTIVITY: Ask the students how knowing the type of customer would help a salesperson more effectively direct a sales effort. Remind them that being aware of certain behavior patterns is helpful in dealing with customers' needs; however, care should be taken not to jump to conclusions or to judge by appearances alone. Use Handout #2 to help students identify different types of customers and meet their needs. __________________________________________________________ 1. Methods of Dealing with Certain Types of Customers a. Talkative Customer 1) Listen attentively. 2) Direct the conversation toward the product. 3) Don't lose patience. 4) Don't show irritation. b. Indecisive Customer 1) Provide facts about the product or service. 2) Provide complete information patiently and thoroughly in order to reassure the customer. c. Know-it-all Customer 1) Let the customer confirm the facts. 2) Don't compete. 3) Don't argue. 4) Ask customer's advice, if appropriate. 5) Try to agree with the customer statements. d. Silent Customer 1) Ask intelligent questions in order to stimulate conversation. 2) Watch closely for buying clues. 3. Be patient. e. Disagreeable Customer 1) Don't show anger. 2) Be patient and polite. 3) Admit to any disadvantages of the product or service. f. Delaying Customer 1) List sound reasons why product or service should be bought. 2) Convey confidence in self and product or service. g. Decisive Customer 1) Keep the Sales presentation short. 2) Be decisive and direct. 3) Allow the customer to state his/her conclusions. h. Customer in a Hurry 1) Approach him/her immediately. 2) Determine specific needs quickly. 3) Complete the sale. F. Ways of Preventing Customer Complaints __________________________________________________________ ACTIVITY: Ask students if they have ever been dissatisfied customers. Were their complaints satisfactorly resolved. Do they have suggestions about how to prevent and/or deal with dissatisfied customers? __________________________________________________________ 1. The best way to handle a dissatisfied customer is not to create one. a. Make sure any applicable warranty is thoroughly understood. b. Avoid selling a customer goods or services that are not needed or wanted. c. Help the customer select the product that best fits his/her need or want. 2. Every business should have specific policies for handling customer complaints. New employees should become familiar with these procedures. SUPPLEMENTAL HANDOUT #1 - PRODUCT ANALYSIS SHEET Select and list at least five selling features of that product. These feature should be similar to the list below. Convert the selling features into benefits, keeping customer needs in mind. Color Feel Odor Serviceability Size Packaging Taste Durability Shape Pattern Construction Comfort Texture Design Utility Convenience Finish Price Versatility PRODUCT _______________________ Features Benefits ______________________________________________________________________________ Example: Improved Chainsaw The new anti-vibration feature will reduce operator fatigue. 1. 2. 3. 4. 5. 6. SUPPLEMENTAL HANDOUT #2 - DEALING WITH DIFFERENT TYPES OF CUSTOMERS Below are some situations in which you are to assume the salesperson's role. Based on the behavior described, determine the type of customer and state two ways to deal with the person when making a sale. 1. Tom has entered the local co-op hardware store. He goes straight to the hand tool aisle, picks up a level, and starts toward you. Type of customer _________________________ a. b. 2. Mrs. Smith is in an aisle and when you approach she immediately looks up at you and starts talking about the upcoming town rodeo. You mention that there is a special on the garden gloves in front of her, and she starts talking about how pretty her roses are. Type of customer _________________________ a. b. 3. While making rounds as a local machinery salesperson, you stop at the Miller farm. You know he needs a new tractor. He starts talking to you about the horsepower, conveniences, and features of the brand of tractor you are selling. Type of customer _________________________ a. b. SUPPLEMENTAL HANDOUT #2 - DEALING WITH DIFFICULT CUSTOMERS - INSTRUCTOR'S KEY 1. Decisive 2. Talkative 3. Know-it-all Methods for dealing with these types of customers should include points from the activity or other acceptable criteria as determined by the instructor. DETERMINING NEEDS AND WANTS OF THE CUSTOMER - QUIZ 1. Match the terms on the left with the definition that fits best by placing the appropriate letter in the blanks provided. ______ 1. Money a. Things desired but not essential ______ 2. Client b. Enhances customers likes or dislike ______ 3. Priorities c. Potential customers greatest need ______ 4. Wants d. Cost of item or service ______ 5. Self-expression e. Determines quality or quantity to be purchased 2. For each true statement below, place an "X" in the blank provided. ______ 1. Satisfying one need may fulfill another. ______ 2. A salesperson should jump to conclusions when listening to a customer. ______ 3. Using complex technical terms is a good way to describe a product. ______ 4. Watching facial expressions can help a salesperson determine needs. ______ 5. Needs that are not immediately apparent may be activated by a skillful salesperson. ______ 6. A customer is buying a product, not satisfaction. ______ 7. It is a good idea for a new employee to talk to his/her supervisor about handling customer complaints. ______ 8. It does not hurt to stretch the truth about a product in order to make a sale. ______ 9. The four steps most people go through when making a purchase are attention, interest, desire, and action (AIDA). 3. Match the descriptions on dealing with customers which best fit the type of customer on the left, by placing the appropriate letter in the blank provided. ______ 1. Talkative a. Allow them to state their conclusions. ______ 2. Silent b. List reasons why product or service should be bought. ______ 3. Delaying c. Watch closely for buying clues. ______ 4. Decisive d. Direct the conversation toward the product. DETERMINING NEEDS AND WANTS OF THE CUSTOMER - QUIZ-INSTRUCTOR KEY 1. 1. D 2. E 3. C 4. A 5. B 2. 1. X 2. 3. 4. X 5. X 6 7. X 8. 9. X 3. 1. D 2. C 3. B 4. A 12/5/91 JL/sg #%&C