DOCUMENT RESUME CE 067 066 ED 373 232 Selling. Unit 16. Level 2. Instructor Guide. PACE: TITLE Program for Acquiring Competence in Entrepreneurship. Third Edition. Research & Development Series No. 302-16. Ohio State Univ., Columbus. Center on Education and INSTITUTION Training for Employment. PUB DATE 94 27p.; For the complete set, i.e., 21 units, each done NOTE at three levels, see CE 067 029-092. Supported, by International Consortium for Entrepreneurship Education, the Coleman Foundation, and the Center for Entrepreneurial Leadership Inc. Center on Education and Training for Employment, 1900 AVAILABLE FROM Kenny Road, Columbus, OH 43210-1090 (order no. RD302-16 IG, instructor guide $4.50; RD302-16 M, student module, $3; student module sets, level 1--RD301M, level 2--RD302M, level 3--RD303M, $45 each; instructor guide sets, level 1--RD301G, level 2--RD302G, level 3--RD303G, $75 each; 3 levels and resource guide, RD300G, $175). Teaching Guides (For Classroom Use Glides PUB TYPE Classroom Use Guides Te.cher) (052) Instructional Materials (For Learner) (051) MF01/PCO2 Plus Postage. EDRS PRICE *Advertising; Behavioral Objectives; *Business DESCRIPTORS Education; *Competency Based Education; *Entrepreneurship; Learning Activities; *Merchandising; Postsecondary Education; Publicity; Public Relations; *Salesmanship; Secondary Education; Small Businesses; Student Evaluation; Teaching Guides *Program for Acquiring Competence Entrepreneurship IDENTIFIERS ABSTRACT This instructor guide for a unit on selling in the PACE (Program for Acquiring Competence in Entrepreneurship) curriculum includes the full text of the student module and lesson plans, instructional suggestions, and other teacher resources. The competencies that are incorporated into this module are at Level 2 of learning--planning for a business in one's future. Included in the instructor's guide are the following: unit objectives, guidelines for using PACE, lists of teaching suggestions for each unit objective/subobjective, model assessment responses, and overview of the three levels of the PACE program. The following materials are contained in the student's guide: activities to be completed in preparation for the unit, unit objectives, student reading materials, individual and group learning activities, case study, discussion questions, assessment questions, and references. Among the topics discussed in the unit are the following: the importance of selling, customer buying motives, analysis of product features to determine benefits, steps of the selling process, and different types of customers. (MN) INSTRUCTOR GUIDE UNIT 16 LEVEL 2 Unit 16 Selling Level 2 HOW TO USE PACE Use the objectives as a pretest. If a student is able to meet the objectives, ask him or her to read and respond to the assessment PACE questions in the back of the module. 'PrOgraniforAcquiring :Competence in .:,Entrepreneurship THIRD EDITION Duplicate the glossary from the Resource Guide to use as a handout. CHOI:MON EDUCATION AM TUNING FCA EMPLOYMENT COLLEGE OF EDUCATION Research & Development Series 302-IA Ti E WOO STATE MA'AM rI Use the teaching outlines provided in the Instructor Guide for assistance in focusing Abe left side of your teaching delivery. Objectives: each outline page lists objectives with the corresponding headings (margin questions) from the unit. Space is provided for you to Discuss the importance of selling. add your own suggestions. Try to increase student involvement in as many ways as possible to foster an interactive learning process. Describe customer buying motives. When your students are ready to do the Activities, assist them in selecting those Analyze product features to determine benefits. that you feel would be the most beneficial to their growth in entrepreneurship. Explain the steps of the selling process. Assess your students on the unit content when they indicate they are ready. You may choose written or verbal assessments Identify different types of customers. 'L) Model re- according to the situation. sponses are provided for each module of U S DEPARTMENT OF EDUCATION 'PERMISSION TO REPRODUCE THIS Imp, tv."nr.ni (A, n rJ F.nig at.nim While these are suggested each unit. BY EDUCATIONAL RESOURCES INFORMATION MATERIAL HAS BEEN GRANTED CENTER (ERIC) responses, others may be equally valid. d This document has been reproduced as rn,eivert from the person or organiration L originating rt El Minor changes haves been made to irnprnyo reproduction quality 2 Rome, of view or opinions slated in this TO THE EDUCATIONAL RESOURCES document do not necessarily represent INFORMATION CENTER (ERIC) Ofhcud OERI position 01 policy BEST COPY AVAILABLE Teaching Suggestions Objectives 1. DISCUSS THE IMPORTANCE OF SELLING Define selling and have students explain why it is critical for What is the importance of selling? Give the examples of John Henry Patterson business success. (NCR) and Thomas J. Watson (IBM) to illustrate the importance of effective selling strategies. 2. DESCRIBE CUSTOMER BUYING MOTIVES Begin the discussion by asking students why people buy certain What are customer buying mo- products. As students list these reasons, classify them using the tives? concepts of basic and learned needs. Define the concept of itch cycle to help students understand the psychology of buying be- havior. Divide a chalkboard or transparency into eight sections, labeling What are the factors which affect each section according to the factors that affect buying motive., buying motives? (culture, subculture, social class, reference groups, family mem- bers, roles and status, personal factors, psychological factors). Choose different products to show how these factors influence the buyer's decision to buy that particular product. Include this information in the appropriate section on the chalkboard or over- head. Example: When buying a car, a buyer is influenced by personal factors (family size and needs, age, occupation, finan- cial situation, lifestyle, personality, etc.), psychological factors (the red color fits the buyer's personality and desire), reference neighbors, groups (the brand was recommended by coworkers, church members, etc.) . . . Use a chalkboard or an overhead to show the five stages of a How does the buyer make a deci- buying decision (problem recognition, information search, eval- sion to buy? uation of alternatives, purchase decision, and post-purchase Create a buying situation to illustrate each of the behavior). stages. (Example. The prospect decides to buy the refrigerator (e.g., the size of his/her family in- because he/she needs it creased). This is the first stepproblem recognition . . . 3. ANALYZE PRODUCT FEATURES TO DETERMINE BENEFITS Preparation, by way of product knowledge, is critical to a suc- How important is product knowl- Illustrate this fact with role plays. cessful selling process. edge? Allow one group time to study a selected product, then present its' features and benefits to the class. The second group should at'.:mpt to make the presentation "cold" without the benefit of product knowledge. 3 Teaching Suggestions Objectives It is important that the students understand the difference be- What is feature/benefit selling? tween selling features and selling benefits. Use a chalkboard or Next to the overhead to list various products on one column. product column, have students complete a second column listing the features, followed by the benefits of each product. Refer to the examples presented in the unit. 4. EXPLAIN THE STEPS OF THE SELLING PROCESS Define retail and industrial selling. Ask students to give exam- What is the difference between re- ple of products which apply to each one. tail and industrial selling? What types of approaches are Help students understand how industrial selling differs from re- tail selling. Have students role play retail and industrial selling. there? To help students role play effectively, choose simple products/ services and allow them to determine features and benefits of these products. Create a chart showing the steps of the selling process. Have What are the steps of the selling Each step should students write the information on note cards. process? be represented on an individual card and should be accompanied It is not important that by information explaining the step. Rather, they students memorize the information on the cards. should focus on understanding the logic of the steps in the sell- ing process. Have stu- Define suggestive selling and give some examples. What is suggestion selling? dents give additional examples of both product and service sug- gestive selling. 5. IDENTIFY DIFFERENT TYPES OF CUSTOMERS Use the chart presented in this unit to identify the six types of Are there different types of cus- customers. Using examples, help students define the profile of tomers? each type of customer. 4 MODEL ASSESSMENT RESPONSES There are two types of selling approaches: (1) industrial approach, and (2) retailing approach. 1. The industrial approach is used to sell products/services to businesses rather than individual customers. For example, a salesperson who works for a medical equipment wholesale company is more likely to sell products to hospitals, private medical clinics, research laboratories, etc. The retailing approach (or the merchandising approach) is common in retail selling. Salespersons in an apparel or a grocery store sell merchandise directly to the customer. Six kinds of customers types can be identified based on type of personality: (1) browsing, (2) talkative, 2. (3) silent, (4) undecided, (5) decided, and (6) hurried/impatient. (1) The browsing customers usually will state that they are just looking when approached by a salesperson. They move slowly, finger merchandise, and usually move away when approached. A salesperson should (2) The talkative customer is friendly, be pleasant with these customers and invite them back to store. jovial, and likes to talk even about personal matters. He/she will generally hold up other customers. The salesperson should listen, be patient, and bring the discussion back to the topic of merchandise. (3) Silent customers are usually unfriendly and not positive in nature. Salespersons should limit dialogue with these customers, watch their actions, demonstrate the merchandise, be patient, and ask questions with "yes" or "no" answers. (4) Undecided customers change their minds continually; they are afraid of not getting their money's worth, and will usually go home to "think about it." A salesperson could help these customers to decide by being firm and convincing, looking for signs of interest, and demonstrating a variety of mer- chandise. (5) Decided customers know what they want, are business-like in nature, direct, and ask for spe- cific items. Salespersons should show merchandise quickly, give selling points in a business-like manner, (6) Hurried, nervous customers are let customers lead discussion, and suggest substitutes very carefully. quick, abrupt, and nervous. They are impatient and demand quick attention. The salesperson should serve them promptly, show sympathy, be alert, and use caution when suggesting substitutes. (1) basic needs and (2) secondary needs. Buying motives can be classified in two broad categories: 3. Basic needs include the need for food, drink, shelter, comfort, good health, social approval, and security. For example, a pair of gloves have to be warm and comfortable to satisfy a basic need for comfort during cold weather. Secondary needs are learned desires such as need for convenience, efficiency, cleanliness, desire for a bar- gain, and dependability in products/services. The product's style, design, beauty and packaging are also Durability, reliability and cost of a product are considered rational motives, related to learned desires. whereas status, pride, adventure and self-image are emotional motives. It is extremely important to identify buyers' motives because buying decisions are determined by both basic and secondary needs. Purchasing decisions are often made as a result of an itch cycle. Knowing the length of various itch cycles and specific buying motives can help a salesperson track, identify as well as understand the buyer's motivation. Factors which affect buying motives are culture, social class, reference groups, family members, acquain- tances and friends, social role and status, personal factors, as well as psychological factors. The consumers choice is the result of multiple and complex forces related to the environment they live and work in, to their own character, family, friends and acquaintances' personalities and opinions, as well as to changes and transformations which affect the market. 5 in order to effectively communicate It is the responsibility of every salesperson to develop product expertise 4. able to provide adequate information. with customers. Customers ask questions and the salesperson must be product knowledge keeps the This helps the customer make a wise buying decision. In addition, thorough the market. The more complex and salesperson abreast of continuous changes affecting the product and it. expensive your product, the more knowledgeable the salesperson should be about buyers. This includes locating prospects and In industrial selling, the process is preced-M by prospecting 5. You should then follow up with presale preparation. The first call you make should be product-oriented. in order to tailor your product/service more to the com- a second call to learn more about the company pany's needs and wants. begin with a cordial handshake and In order to approach the client effectively, the selling session should which should feature the benefits of your product/service. This an opening statement. A brief introduction the customer's needs is followed by also presents a good opportunity for presenting referrals. Determining Handling objections is critical because, if handled properly, can lead to a the sales presentation itself. successful close. followed with an introductory statement or In retail selling, you should begin by greeting the customer, After approaching the customer, you should assess his/her question about the merchandise of interest. tailored to the customer's The sales presentation should focus on the product/service's benefits needs. The close is the point when needs. You should listen to objections carefully and handle them properly. the order is actually secured. Basically, list of customers. Prospecting is the process of adding new sales contacts to a salesperson's 6. for finding new prospects prospecting includes locating and classifying potential buyers. Sources available business with the type of customers include joining organizations, establishing contacts with people who do from current customers through referrals, surveying public you are interested in, getting additional prosnP,Is directories and trade registers. references, door-to-door and phone solicitatiui., as well as reviewing small business at three levels of learning, with experiences and Incorporates the needed competencies for creating and operating a outcomes becoming progressively more advanced. Understanding the creation and operation of a business. Level 1 Planning for a business in your future. Level 2 Starting and managing your own business. Level 3 supporting the objectives, complete content in form of answers Self-contained Student Modules include: specific objectives, questions include the full text activities, group activities, module assessment references. Instructor Guides to the questions, case studies, individual and other resources. PACE,Third Edition, Resource Guide includes of each student module and lesson plans, instructional suggestions, of entrepreneurship assistance organizations. teaching strategies, references, glossary of terms, and a directory Department at the For information on PACE or to order, contact the Publications Road, Columbus, Ohio 43210-1090 Center on Education and Training for Employment, 1900 Kenny (614) 292-4353, (800) 848-4815. Support for PACE, Third Edition provided in whole or in part by: The Coleman Foundation International Consortium for Entrepreneurship Education and Center for Entrepreneurial Leadership Inc. International Enterprise Academy Ewing Marion Kauffman Foundation Center on on Education and Training for Employment The Ohio State University UNIT 16 Selling LEVEL 2 Your Potential Nature of Business The Global Markets as an Small Business Opportunities Business Plan Entrepreneur Help for Types of Marketing Pricing Financing Location the Analysis Ownership Strategy the Business Entrepreneur Human Business Legal Promotion Resources Management Issues Risk Customer Financial Record Operations Management Analysis Credit Keeping Mme. ° -c_quirlia.g orn g , ` 4T , 'Entreprenturo CENTER ON EDUCATION AND TRAINING FOR EMPLOYMENT COLLEGE OF EDUCATION Research & Development Series 302-16 THE OHIO STATE UNIVERSITY SELLING BEFORE YOU BEGIN . . . if this is your first PACE unit. Consult the Resource Guide for instructions 1. If you think the following page. Read What are the Objectives for this Unit on 2. objectives now, consult your instructor. you can meet these These objectives were met in Level 1: 3. Discuss the concept of selling. Examine the role of selling in small business. Describe the selling process. salesperson. Identify the characteristics of a successful If you need help with the unit. Look for these business terms as you read t;-.c 4. PACE Glossary contained in the meanings, ask your instructor for a copy of the Resource Guide. Reference g:oup Adoption process Retail Demand creation Retailing approach Industrial approach Wants Itch cycle Wholesale Needs Product knowledge 9 3 SELLING WHAT ARE THE OBJECTIVES FOR THIS UNIT? Upon completion of this unit you will be able to discuss the importance of selling, describe customer buying motives, analyze product features to determine benefits, explain the steps of the selling process, and identify different types of customers. WHAT IS THIS UNIT AP ;UT? reduces the per unit costs. This is achieved by spreading the overhead (costs related to production) over the greater number of units produced. Selling, the effort to influence and convince others is as old as the world itself. Virtually The modem salesperson has shed much of all of us engage in the art of persuasion the unfavorable image that is attached to the every day and throughout our lives. A free Today's professional profession of selling. enterprise system involves and requires an knows the value of empathy, product knowl- intricate and dynamic marketing process. edge, and service after the sale. These fac- This creates the demand for the wide range tors, and of course, a quality product, are the of goods and services that are made avail- keys to successful selling. able by high levels of productivity. The sales function, although indispensable, is WHAT IS THE IMPORTANCE a costly one. The costs of hiring, training, OF SELLING? retraining, and supporting an active, creative, sales team are high. To put these costs into perspective, think of selling as demand crea- Modern selling techniques were refined by tion. Increasing the demand for the product or service will expand the scale of the busi- John Henry Patterson, widely regarded as the This expansion actually ness operation. father of modern sales technique. His