- - AGRICULTURAL CORE CURRICULUM - - (CLF1000) Core Area: AGRICULTURAL BUSINESS MANAGEMENT (CLF1550) Unit Title: SALES AND SELLING ____________________________________________________________________________ (CLF1554) Topic: PREPARING FOR AND Time Year(s) APPROACHING POTENTIAL 1 hour 3 or 4 CUSTOMERS ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (*-*) - Identify and explain the five stages in making a sale. (*-*) - Describe the kinds of information that a sales person needs to have available about a product or service. (*-*) - Discuss how potential customers could be approached using the three approaches: greeting, merchandise, service. (*-*) - Demonstrate two or three ways of opening a sales presentation. Special Materials and Equipment: Supplemental Handouts #1, 2, and 3. (attached) 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: PREPARING FOR AND APPROACHING POTENTIAL CUSTOMERS __________________________________________________________ ACTIVITY: Ask the students why it is important to have procedures or steps to follow. Ask them to list the stages in making a sale. (Note: A typical sale follows the steps listed below in order, but overlapping may occur.) __________________________________________________________ A. What are the five stages in making a sale? 1. Five Stages of a Sale a. Preparation b. Approach c. Demonstration d. Overcoming resistance e. Close __________________________________________________________ ACTIVITY: 1. Invite local salesperson to class to demonstrate a one-on-one sales presentation that illustrates the five stages of a sale. Ask students to observe the presentation and write key phases that illustrate each stage of the sales process. __________________________________________________________ B. Preparation Prior to Meeting the Customer. 1. Obtain the following information (See Handout #1) about any product or service: a. Selling situation b. Company c. Products to be sold d. Features of the products e. Product structure f. Warranty g. Service availability h. Demonstration of function i. Competition j. Price __________________________________________________________ ACTIVITY: 1. Select a variety of agricultural products and divide the class into groups of three. Have each group prepare a product summary using the criteria above and report the findings to the class. __________________________________________________________ 2. Sources of Information (See Handout #2) a. Inside the Agribusiness 1) On the merchandise itself (label, carton) 2) Advertisements 3) Customer's experiences 4) Manufacturer 5) Personal experience 6) Agribusiness buyer b. Outside the Agribusiness 1) Television and Radio Advertisements 2) Merchandise Testing Bureau 3) Comparative Shopping 4) Publications by U.S. Government 5) Courses offered by Institutions, Industry 6) Periodicals, journals, magazines 7) Library 8) Merchandise manuals 9) Trade organizations 10) Inspection and observation of other stores C. How do you approach potential customers? __________________________________________________________ ACTIVITY: Discuss with the students why it is important to give a favorable impression and gain the interest of a customer right at the start of a sale. Point out the importance of being ready to meet each situation. This can be helpful in developing a positive environment and in maintaining control of the conversation. __________________________________________________________ 1. Methods of Approach a. Greeting Approach 1) Greet with a pleasant salutation. 2) Use the customer's name if possible. 3) Be direct and straightforward. 4) Take control of the conversation. b. Merchandise Approach 1) First comments are about the product. 2) Point out the product's main features and advantages. 3) The merchandise approcah is the most favored sales approach. c. Service Approach 1) The salesperson asks if he/she can be of service. 2) Questions that can be answered with a simple yes or no should be avoided. D. Ways to open a Sale 1. Make a suggestion about the benefits of owning the product. 2. Demonstrate the product. 3. Offer to survey the customer's operation to determine how the product could be useful. 4. Show the customer a study or report that compares the benefits of the product or service with similar products or services offered by competitors. __________________________________________________________ ACTIVITY: 1. Practice selling approaches and techniques for opening a sale by completing Supplemental Handout #3. __________________________________________________________ SUPPLEMENTAL HANDOUT #1 - EXAMPLE PRODUCT SUMMARY 1. Salesperson: Connie Burger 2. Statement of Situation: A small-scale "backyard" farmer is interested in planting permanent pasture and has called requesting information. This visit is in response to that call. 3. Representing Company: Clyde Robin Seed Company 4. Products to be sold: Bloat-resistant Pasture Mix and General Livestock Pasture Mix 5. Features of the Products: a. Mixes were designed to succeed in a variety of soil conditions. b. Choice of mixes for different management practices. c. Blend of cool season grasses and legumes to provide a longer growing season. d. Legumes are inoculated with Celpril's Rhizco-kote to assure optimum nodulation and growth. 6. Product Structure: The pasture mixes are a combination of orchard grass, rye grass, clovers, and trefoil mixed to provide a superior blend of legumes and palatable grasses. 7. Warranty: As with all seed, the warranty is limited to replacement of seed that does not germinate as labeled. 8. Service Availability: A local representative is available to help the grower select and produce Clyde Robin products to assure maximum return. 9. Demonstration of Function: Summarize test data that reveals the advantages of Bloat-Resistant and General Livestock mixes. The salesperson will apply these findings to the customers needs. 10. Competitors and Pertinent Information: Handout describing percentages of ingredients in the mixes. 11. Price: Price is $1.50 per pound with a 10 cent per pound break after purchasing 1000 pounds of seed. 12. Closing statement or method: To develop a pasture with a long growing season at a reasonable price that will increase your profits you should plant one of the Clyde Robin's pasture mixes. Which pasture mix do you prefer and when can I deliver it to you. SUPPLEMENTAL HANDOUT #2 - WHERE TO LOCATE INFORMATION ON PRODUCTS AND SERVICES Information may be gotten from the following sources: 1. Merchandise itself - labels, cartons 2. Advertisements 3. Customer's experiences with product 4. Manufacturer's information 5. Personal experience with product 6. Journals and magazines 7. Department of store buyer 8. Television and radio advertisements 9. Merchandise testing bureau 10. Comparative shopping 11. Publications by U.S. government 12. Courses offered by institutions, manufacturers 13. Libraries 14. Trade organizations 15. Inspection and observation of other stores and how they handle the product SUPPLEMENTAL HANOUT #3 - SELLING APPROACHES "Remember Me?" "I'm the fellow who goes into the local machinery dealer and waits at the counter while the parts salesperson does everything but take my order. I'm the fellow who goes into a feed store and stands quietly while the salespeople finish their little chitchat. I'm the farmer who drives up to the local co- op and never blows the horn, but waits patiently while the attendant finishes his comic book." "Yes, you might say, I'm a good guy. But do you know who else I am? I am the fellow who never comes back, and it amuses me to see you spending thousands of dollars every year to get me back to your agribusiness when I was there in the first place; all you had to do to keep me was to give me a little service, show me a little courtesy." 1. For each product or service write statements that demonstrate your understanding of the following customer approaches: Greeting, Merchandise and Service. Also, include a technique for opening a sale for the following products or services. a. Lawn Mower 1. 2. 3. 4. b. Application of fertilizer and pesticide by airplane. 1. 2. 3. 4. c. Landscape Tree 1. 2. 3. 4. d. Corn Seed 1. 2. 3. 4. Source: Distributive Education II, CIMC, 1976, Department of Vocational and Technical Education, Stillwater, OK QUIZ - PREPARING AND APPROACHING POTENTIAL CUSTOMERS 1. List the five stages of a sale in order from the beginning to the end of the sale: a. b. c. d. e. 2. Select from the list below the kinds of information needed by a good salesperson before the start of a sale. Place an "X" in the correct blanks. _____ a. Advantages of product or service _____ b. The customer's income _____ c. How the product is made _____ d. Advantages and disadvantages of any competitor's products _____ e. Whether the sale will be cash or charge _____ f. What color the customer wants _____ g. When the product or service is needed _____ h. Safety features of the product 3. List five sources of information about products that are available from outside and from inside the agribusiness. a. b. c. d. e. 4. Place an "X" in the blanks in front of the true statements about sales approaches. _____ a. Making a suggestion about the benefit of owning the product is a good approach. _____ b. A friendly greeting is not a good approach. _____ c. Saying something about a product right away is called the merchandise approach. _____ d. The service approach can be used effectively. _____ e. The most favored sales approach is the merchandise approach. 5. List four ways to open a sale. a. b. c. d. QUIZ - PREPARING AND APPROACHING POTENTIAL CUSTOMERS - INSTRUCTOR KEY The performance checklist located at the end of lesson 8 should be used as the evaluation instrument for this lesson. Answers to the optional written evaluation are as follows: 1. a. Preparation b. Approach c. Demonstration d. Overcoming resistance e. Close 2. a. X b. c. X d. X e. f. g. h. X 3. 1. X 2. 3. X 4. X 5. X 5. Any four from study question four of the discussion or others as determined by instructor. 12/5/91 JL/sg #%&C