CHAPTER
13 INTRODUCE THE CHAPTER Chapter 13 introduces students to the steps of the sales process. It then explores in detail the first two steps of the sales process: approaching the customer and determining needs.
BUILD BACKGROUND Have students recall a sales situation in which the customer used limited decision making. Ask them what happened when the customer entered the store, showed interest in an item, made a purchase, and left the store. Have students compare their sales situations.
EXPLORE THE PHOTO Market Talk Lead a discussion with students about first impressions. Have them talk about how important first impressions are in social settings and compare that to first impressions in selling situations. Have students describe their impressions of the salesperson in this ad. Quick Think Answers may include, “May I help you?” or “Hello.” Ask students if they prefer being greeted or left alone when they enter a retail store. Students’ preferences will probably fall somewhere between being hounded and being ignored.
REVIEW THE OBJECTIVES List the seven steps of a sale. 1. Approaching the customer. 2. Determining needs. 3. Presenting the product. 4. Overcoming objections. 5. Closing the sale. 6. Suggestion selling. 7. Relationship building. Explain the importance and purposes of the approach in the sales process. Salespeople can make or break a sale
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Chapter Objectives After reading this chapter, you should be able to: • List the seven steps of a sale • Explain the importance and purposes of the approach in the sales process • Demonstrate how business-to-business sales representatives conduct the initial approach • Name three methods for making the initial approach in retail sales • Explain why determining needs is an essential step in the sales process • List three methods for determining needs
EXPLORE THE PHOTO
Market Talk The approach to the customer is the critical first step in the sales process. It gives the salesperson the opportunity to establish a relationship with the customer, to initiate a conversation, and to focus the customer’s attention on the product. The approach can make or break a sale, so it is important to make a good first impression. Quick Think What might you say to open a conversation with a customer?
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during the first few minutes with a customer. Customers who are turned off by the approach will be difficult to win over later on. Demonstrate how business-to-business sales representatives conduct the initial approach. The salesperson sets up an appointment. The initial approach depends on your prior dealings with the customer or the work you did in the pre-approach. Name three methods for making the initial approach in retail sales. service approach, greeting approach, merchandise approach
Explain why determining needs is an essential step in the sales process. Discovering your customer’s motivation for buying will help you in the next step of the sale when you are helping the customer select the right product. List three methods for determining needs. observing, listening, and questioning and engaging the customer
DECA Events These acronyms represent DECA competitive events that involve concepts in this chapter: AAM BSM QSRM ASM FMAL RFSM BMDM FMML RMS Performance Indicators The performance indicators represent key skills and knowledge. Relating them to the concepts explained in this chapter is your key to success in DECA competitive events. Keep this in mind as you read, and write notes when you find material that helps you master a key skill. In these DECA competitive events, you should follow these performance indicators: • Explain the selling process • Determine customer needs • Establish relationship with customer Some events include these performance indicators: AAM Determine size and fit of children’s apparel AAM Determine size and fit of women’s apparel AAM Determine size and fit of men’s apparel AAM Determine size and fit of shoes ASM Explain component/accessory characteri tics of braking/ABS systems BSM Discuss risks perceived by customers when purchasing business services EMDM Describe the nature of customer support for online sales FMDM Establish relationship with customer QSRM Identify ingredients of menu items SEM Establish relationships with sport/event clients/customers/fans SMDM Establish relationships with sport/event clients/customers/fans TMDM Identify types of destination attractions TSE Differentiate between consumer and organizational buying behavior
ROLE PLAY Check your understanding of DECA performance indicators with the DECA activity in this chapter’s review. For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.
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13 For the Teacher TeacherWorks™ Plus Teacher Resources at glencoe.com Interactive Chalkboard ExamView ® Assessment Suite Fast File Unit 5
For the Student Marketing Essentials Online Edition Student Activity Workbook Marketing Math Workbook Marketing Research Project Workbook School-to-Career Activity Workbook Competitive Events Workbook BusinessWeek Reader with Case Studies Interactive Student Edition Student Resources at glencoe.com
Discuss the performance indicators for the DECA events listed, so that students understand how to demonstrate their understanding. The event acronyms stand for: AAM: Apparel and Accessories Marketing Series ADC: Advertising Campaign Event ASM: Automotive Services Marketing Series BSM: Business Services Marketing Series EMDM: E-Commerce Management Team Decision Making Event FMAL: Food Marketing Series, AL FMDM: Financial Analysis Management Team Decision Making Event FMML: Food Marketing Series, ML FSRM: Full Service Restaurant Management Series HMDM: Hospitality Services Management Team Decision Making Event HRR: Hospitality and Recreation Marketing Research Event MMS: Marketing Management Series QSRM: Quick Serve Restaurant Management Series RFSM: Restaurant and Food Service Management Series RMS: Retail Merchandising Series SEM: Sports and Entertainment Marketing Series SMDM: Sports and Entertainment Marketing Management Team Decision Making Event TMDM: Travel and Tourism Marketing Management Team Decision Making Event TSE: Technical Sales Event
Find timed DECA Prep activities correlated to the Competitive Events Workbook for students and DECA tips for teachers at the Marketing Essentials OLC through glencoe.com. 277
SECTION 13.1
SECTION 13.1
The Sales Process READING GUIDE
BELLRINGER ACTIVITY Ask students to describe poor sales experiences they have had or witnessed. As they share their stories, write down the salespeople’s qualities on the board: pushy, stuckup, clueless, and so on. Ask students how the salespeople can improve on every category.
BEFORE YOU READ Connect Reflect on ways salespeople have approached you. How effective were their methods?
OBJECT IVES
T HE MAIN IDEA
• List the seven steps of a sale D • Explain the importance and purposes of the approach in the sales process • Demonstrate how business-tobusiness sales representatives conduct initial approach • Name three methods for making the initial approach in retail sales
There are seven steps to the sales process. There are also different styles and methods for approaching customers, depending on the sales situation.
Preteaching
K EY T ERMS
VOCABULARY
AC ADEMIC VOC ABUL ARY
KEY TERMS Have teams of students
You will find these words in your reading and on your tests. Make sure you know their meanings. • establish • item N
draw vocabulary terms out of a hat or bowl and then write them on a sheet of paper. Have students guess the meaning of each word and write their guesses beside the word. Record the words and guesses on the board. Leave this list up so students can see how close their definitions were to the actual definitions as they work through the chapter. ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.
GRAPHIC ORGANIZER Model using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer. N C L B
NCLB connects academic correlations to book content.
GRAPHIC OR GANIZER Draw this chart to identify the steps of a sale. B2B Selling
Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.
ACADEMIC STANDARDS
C L B
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Set up an appointment.
• service approach • greeting approach • merchandise approach
Connect Think about selling situations in which all seven steps of a sale were involved. Recall how the salesperson incorporated each step into the selling process.
B2B and Retail
English Language Arts NCTE 3 Apply strategies to interpret texts. NCTE 12 Use language to accomplish individual purposes.
The Selling Process Selling is the process of matching customer needs and wants to the features and benefits of a product or service. The salesperson plays a vital role in this process by gathering information about the customer, then advising the customer about which products would best suit his or her needs and lead to a decision to buy.
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READING GUIDE BEFORE YOU READ
Have students recall ways salespeople have approached them. Ask: Which methods are the most effective?
D Develop Concepts THE MAIN IDEA Ask a volunteer to read the main idea aloud. Have students discuss which sales styles might be appropriate for different situations, such as a fancy jewelry store or a neighborhood comic book store. Encourage students to be attentive to the characteristics of sales situations they experience. 278
There are seven steps to the selling process: 1. Approaching the customer greeting the customer face-to-face 2. Determining needs learning what the customer is looking for in order to decide what products to show and which product features to present first in the next step of the sale 3. Presenting the product educating the customer about the product’s features and benefits 4. Overcoming objections learning why the customer is reluctant to buy, providing information to remove that uncertainty, and helping the customer to make a satisfying buying decision 5. Closing the sale getting the customer’s positive agreement to buy 6. Suggestion selling suggesting additional merchandise or services that will save your customer money or help your customer enjoy the original purchase 7. Relationship building creating a means of maintaining contact with the customer after the sale is completed In this chapter, we will concentrate on the first two steps in the sales process: (1) the approach and (2) determining the customer’s needs. The other five steps will be examined in later chapters.
Approaching the Customer Salespeople can make or break a sale during their first few minutes with a customer; therefore, the initial approach is critical. Customers who are turned off by the approach will be difficult to win over later on. The approach sets the mood or atmosphere D for the other steps of the sale. It has three purposes: to begin conversation, to establish a relationship with the customer, and to focus on the product. To begin conversation, you need to be alert to customers’ interests. In business-to-business selling, you can conduct research prior to the initial meeting. In retail selling, observe the customer inside the store.
To establish a relationship, treat the customer as an individual. You should not stereotype a person because of age, sex, race, religion, appearance, or any other characteristic. You must be perceptive about the customer’s buying style. Some customers like to do business quickly. Others prefer a more methodical, slower pace. In any case, a customer likes to feel important. To put a customer at ease and establish a positive atmosphere you should be enthusiastic, courteous, and respectful. Show sincere interest by maintaining good eye contact and showing genuine friendliness. Always ask business-to-business customers if it is a good time to see them. This courtesy is appreciated by busy businesspeople.
SECTION SECTION00.00 13.1 CONTINUED C
Recall What are the first two steps in the sales process?
The Approach in Business-to-Business Selling In business-to-business selling, the salesperson sets up an appointment in the pre-approach stage of the sale. Arriving early for the appointment will show your customer that you are interested and give you time to organize your thoughts. Introduce yourself and your company with a firm handshake and a smile. Use the customer’s name. Some salespeople may give a business card to the customer. The initial approach depends on your prior dealings with the customer or the work you did in the pre-approach. When meeting with customers you visit frequently, you can be more personal. Comments on recent happenings in the customer’s industry or personal recollections about the customer’s family, interests, or hobbies can create a smooth initial meeting. Learning what is appropriate to say regarding personal matters is critical. When personal conversation is not appropriate, you can still engage in small talk to establish a relationship with the customer. Prior research on the prospect conducted in the pre-approach may suggest other possible opening comments. You can also discuss current topics in the industry. Chapter 13 — Initiating the Sale
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Answer The first two steps to selling are: 1) approaching and greeting the customer face to face, and 2) learning what the customer is looking for, which helps determine the customer’s needs in order to decide what products to show and which product features to present in the first step of the sale.
Discussion Starter THE SELLING PROCESS Ask students: If every sales situation is different, how can there be the same steps each time? Let them know that the steps provide an effective starting point and sales strategy. Extend Compare the seven steps of selling to the structure of a jazz song or plans to plant a garden. Remind students that there is room to improvise in all situations.
D Develop Concepts Guided Practice Approaching the Customer Have students consider the three purposes of the sales approach: to begin conversation, to establish a relationship with the customer, and to focus on the product. Ask students which purpose is the most important and why. Some students may argue that there can be no sale without a conversation. Others may suggest that the sale is what matters most. Long-sighted students may believe that long-term relationships are the true goal. Explain Tell students that not every customer is expected to make a purchase. Some may simply be browsing. However, sales associates and stores may still generate future sales by making a good impression.
C Critical Thinking Drawing Conclusions Analyze Ask students to describe why it might not be a good idea for a salesperson to be too familiar or joke around when first approaching a customer. Answers may include that the salesperson is not familiar with the customer’s mood or sense of humor.
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SECTION 13.1 Beware of Bias Wanting to take a pro-active approach with his team, Harry Bradford, a regional sales VP with GlaxoSmithKline turned to Orlando-Ward Associates, a San Diegobased workplace training organization that specializes in live-action drama to address diversity and other interpersonal workplace issues. Here is an example of a vignette used in such training: You are making your first sales call to Dr. Lee’s office in the Chinatown section of San Francisco. Approaching a young Asian woman behind the desk, you say who you are and ask to speak with Dr. Lee for a moment. After a brief pause, the woman looks up from her paperwork and deadpans, “You’re speaking with Dr. Lee right now.” Whoops! After you apologize profusely, Dr. Lee says that she would be happy to meet with you—about a year from now.
CONTINUED
S Skill Practice The Approach in Retail Selling Let students know that there are professional journals meant to help salespeople excel. Ask students to look up issues of Personal Selling Power, Sales & Marketing Management, and other publications for articles about the approach in retail selling. Have them present their findings to the class.
Role Play as Training After each vignette was presented during the half-day program, the producing director led a discussion with the reps to identify the mistakes made and to brainstorm about more thoughtful approaches. Next, reps were invited to participate in replays, in which the scene is re-enacted but, this time, with a program participant playing the role of the sales rep. The rep’s task is to handle the situation more effectively, without making errors based on cultural or gender stereotypes.
Extend Ask students: Can salespeople who are in totally different industries use the same journals about selling? Answers will vary, but most will say that the selling process is similar, even if the products—such as homemade candy and industrial chemicals—are not.
Why are live-action drama and role playing good sales training methods?
Go to the Marketing Essentials OLC through glencoe.com to find a research project on avoiding stereotyping.
The Approach in Retail Selling
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When customers are in an obvious hurry, you should approach them quickly. When customers seem undecided, encourage them to look around and ask questions. The Three Methods of Approach in Retail Selling There are three methods you can use in the initial approach to retail customers: the service approach, the greeting approach, and the 280
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merchandise approach. You must evaluate the selling situation and the type of customer to determine which method is best. Service Approach With the service approach, the salesperson asks the customer if he or she needs assistance. One way to use this method is to ask, “How may I help you?” An open-ended question such as this one offers the customer a greater opportunity to respond with more glencoe.com
Jon Feingersh/CORBIS
Beware of Bias Discussion Have students read the Case Study and then discuss the importance of sales training. Let them know that such training can be costly, but that it can save money by eliminating problems in the long run. Answer: Live-action drama and role playing are effective sales training methods because they force participants to think on their feet. Also, many people learn more through participatory action and experience than they do from books, lectures, and other forms of education. For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com. 280
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than “yes” or “no.” It is acceptable when the customer is obviously in a hurry or if you are an order-taker for routine purchases. In most other sales situations, this type of question is ineffective because it usually elicits a negative response, such as “No, I’m just looking.” In this case, you lose control of the sales situation. If such a situation occurs, take a moment to remind the customer to ask any questions that he or she may have later on. Greeting Approach With the greeting approach, the salesperson simply welcomes the customer to the store. This lets the customer know that the salesperson is available for any questions or assistance. The greeting can be a simple one, such as “Good morning.” When you greet the customer, it is important to use a rising tone in your voice. A falling tone sounds unfriendly and would start the sales process off on the wrong note. It is extremely important that the salesperson smile and be friendly.
SECTION 13.1
CONCEPTS Ask students to recall the salesperson’s role in the selling process. To gather information about the customer, advise the customer about which products best suit his or her needs, and lead to a decision to buy. •THE MERCHANDISE APPROACH The
KEY TERMS
merchandise approach can be used only when a customer demonstrates interest in a product. What might you say to this customer to demonstrate the merchandise approach?
Have students review key terms and role play examples of each approach.
INDEPENDENT REVIEW L1 Assign and review Chapter 13 activities in the Student Activity Workbook.
Business E-Mail Once considered merely a nuisance, spam and other unwanted e-mail have become a costly burden for enterprises. E-mail can spread destructive computer viruses to millions of users in a matter of hours.
An Expensive Problem Ferris Research predicted that the cost of spam to businesses worldwide in 2007 would be $100 billion in lost productivity. Of that, $35 billion would be lost by U.S. businesses, up from $17 billion in 2005. Postini, a leader in e-mail security and compliance solutions, reported that e-mail spam made up 93 percent of all e-mail traffic processed in 2006.
L3 Assign and review Chapter 13 activities in the BusinessWeek Reader with Case Studies.
PHOTO GUIDE Go to the Marketing Essentials OLC through glencoe.com to find a project on e-mail security.
Chapter 13 — Initiating the Sale
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L2 Assign and review Chapter 13 activities in the Marketing Math Workbook.
Assume you work for a company that sells software and services to block spam and provide antivirus protection. Write an attention-getting statement that you could use in conjunction with your greeting and initial approach in a business-to-business selling situation.
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Business E-Mail Discussion After students have read Net Marketing, lead a discussion about the effects of spam. Discuss not only the memory taken up and viruses that are transmitted through spam but also the work time spent sorting through an e-mail inbox. Answer: Responses should demonstrate an understanding of spam and antivirus software and employ a business-to-business selling approach.
THE MERCHANDISE APPROACH Discussion Discuss with students how to tell if a customer is interested in an item. Indicators may include him or her studying it, picking it up, returning to it several times, or asking about it. Caption Answer The salesperson might point out features such as insoles or wheels or ask if the customer has ever used rollerblades. Pick an item in the classroom and ask students to sell it with a merchandise approach. For example, they might point out the throwback borders on the globe or the decorations on someone’s backpack. Have students enact their approaches in class.
For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com. 281
SECTION 13.1
AFTER YOU READ Have students complete the Section 13.1 After You Read section review.
ONLINE STUDY TOOLS Have students go to the Marketing Essentials OLC through glencoe.com for the Section 13.1 practice test.
If the customers need help, they will tell you how you can assist them. If they are just looking, they will let you know. The greeting approach establishes a positive atmosphere and opens the lines of communication.
Notice what interests the customer and make that the focus of your conversation. If a customer is looking at a label, you might say, “That shirt is made of a cotton and polyester blend, so it’s machine washable.” If a customer is simply looking at an item and you have no indication of the exact interest, you can talk about the item’s popularity, its unusual features, or its special values. You can also ask a question about the item, such as “Is that the size you need?” or “Were you looking for a comfortable children’s jacket?” The merchandise approach is usually the most effective initial approach in retail sales because it immediately focuses attention on the product. It also gives you an opportunity to tell the customer something about the features and benefits of the merchandise. Customers may not see the desired style, size, or color on the selling floor. The merchandise approach can clear up confusion, let the customer know what is available, and open a dialogue with the customer.
Merchandise Approach Method With the merchandise approach, the salesperson makes a comment or asks questions about a product in which the customer shows interest. This method can be used only if a customer stops to look at a specific item. You may talk about its features and benefits. Using Conversation Skills In the merchandise approach, the salesperson walks up to the customer and starts talking about the merchandise without asking whether the customer wants assistance. The opening comment used in the merchandise approach should be appropriate to the situation. Ideally, it should give the customer some information that is not immediately apparent to the eye.
CULMINATING ACTIVITY Ask students to answer the following questions: • What are the first two steps of the sales process? the approach and determining the customer’s needs • What are the three methods of approaching retail customers? the service, greeting, and merchandise approaches • What are some characteristics of the sales approach in business-tobusiness situations? having an appointment, meeting at the customer’s place of work, and knowing the sale is being made for business purposes N C L B
NCLB Activity correlated to Mathematics and English Language Arts Standards
13.1 AFTER YOU READ Key Terms and Concepts 1. Do you think all seven steps of a sale are followed in every sale? Why or why not? 2. Why is the initial approach in business-to-business selling different from a retail approach? 3. What are the advantages of the merchandise Numbers and Operations: approach?
Computation Compute fluently and
Academic Skills Math 4. Assuming there is no sales tax on clothing, how much would you charge a customer N who needs only two pairs of socks when the C sign indicates six pairs are $15.99? L
B English Language Arts
5. Write two merchandise approaches for a product of your choice.
make reasonable estimates. 1. To solve this problem, divide the cost of six pairs of socks by 6 to determine how much each pair costs. 2. Multiply the cost of one pair of socks by two to determine the costs of two pairs. For help, go to the Math Appendix located at the back of this book.
Check your answers at the Marketing Essentials OLC through glencoe.com.
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13.1 AFTER YOU READ Key Terms and Concepts 1. All seven steps do not have to be followed in every sale. Some customers are pre-sold and know exactly what they want. Also, the salesperson may do such a good job matching products with a customer’s needs that there are no objections. 2. In retail selling, the customers arrive in the store location. In business-to-business
selling, salespeople go to the customer’s place of business to make a presentation. Also, a business-to-business meeting is usually made by appointment. 3. The merchandise approach immediately focuses attention on the product and gives the salesperson an opportunity to tell the customer about its features and benefits.
Find answers at the Marketing Essentials OLC through glencoe.com. 282
Academic Skills 4. $5.33; $15.99 ⫼ 6 ⫽ $2.665 ⫻ 2 ⫽ $5.33 5. Answers may include merchandise approaches should point out the features of the product being sold.
SECTION 13.2
SECTION 13.2
Determining Needs in Sales READING GUIDE
BELLRINGER ACTIVITY
BEFORE YOU READ Predict Name three ways you might determine a customer’s needs.
THE MAI N I D EA
O B JE C TI V E S
• Explain why determining needsD Determining needs is an early step in the sales process because it is an essential step in the frames the rest of the sales presentation. It is also the one step that sales process continues throughout the sales process. • List three methods for GRAP HI C ORGANI ZER determining needs Draw this chart to review when and how to determine needs in the KEY TERMS sales process. • nonverbal communication • open-ended questions Determining Needs
A C A DE M IC V O C ABULARY You will find these words in your reading and on your tests. Make sure you know their meanings. • alternative • seek
When
How
To prepare for reading this section, have students work in groups to describe different types of customers. They may include the person who is in a hurry, someone who has to buy a gift but has no idea what to buy, or someone who has time to waste. Ask: How can they identify the types of customers? Answers may include observing nonverbal communication, listening to their conversations or comments, and asking questions. Ask students to role-play customers and salespeople in different situations.
Go to the OLC through glencoe.com for printable graphic organizers, Academic Vocabulary definitions, and more.
ACAD EMI C STAND AR DS N C L B
Science NSTA Content Standard C Life Science: behavior of organisms Social Studies NCSS 4 Individual Development and Identity: concepts drawn from psychology, social psychology, sociology, and anthropology as they apply to individuals, societies, and cultures
Preteaching VOCABULARY KEY TERMS Read the key terms
Determining Needs In this step of the sale, your job is to uncover the customer’s problems or reasons for wanting to buy. In some instances, their motives or needs may be quite obvious, but that is not always the case. It is your job to determine those needs so you can offer alternative solutions. Discovering your customer’s motivation for buying will help you in the next step of the sale when you are helping the customer select the right product.
Connect Has a salesperson ever helped you make a choice? What questions were asked?
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READING GUIDE
aloud, or ask a volunteer to read them and predict their meanings. ACADEMIC VOCABULARY Refer students to the OLC through glencoe.com for the Academic Vocabulary Glossary before they read the section.
GRAPHIC ORGANIZER Model using the graphic organizer for students. Tell students to go to the OLC through glencoe.com for a printable graphic organizer. N C L B
BEFORE YOU READ
NCLB connects academic correlations to book content.
Lead students in listing ways to determine a customer’s needs: observing, listening, questioning.
D Develop Concepts THE MAIN IDEA Ask a volunteer to read the main idea aloud and ask another student to rephrase it in his or her own words. Students’ experiences should reflect observing, listening, or questioning.
Online Activity Determining Needs Online Have students research what methods online stores use to ascertain the needs of its customers. Students might suggest offering options is similar to questioning.
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13.2 SECTION 00.00 Skateboarding in Brazil Skateboarding might seem like an all-American sport, but it is also very popular and competitive around the world. Brazil has a thriving skateboarding market. Brazilian skaters started out by making their own skateboards with roller skate trucks and wheels, inspired by American products they often could not afford. However, what started as tinkering has now become a national industry.
Discussion Star ter
Homegrown Success Brazil’s government is protective of small firms and trademarks and offers incentives to promote internal commerce. Skateboard products are sold mostly through specialty stores. With imports heavily taxed, domestic brands sell far better than U.S. competitors. Government policies and taxation were determining factors in the creation of domestic skateboard brands and in the growth of the Brazilian skateboard market. Skateboarding shoes, accessories, and clothing are now also manufactured in Brazil for Brazilian brands. The largest board brands are Son, Formigao, Perfect Line, and Stage. Truck brands are Crail, Tracker, and Crazy. The largest wheel manufacturer is Moska. Some of these companies have now expanded into exporting their goods throughout South America and to the United States.
IMPORTANCE OF DETERMINING NEEDS Ask students to consider the following scenario: A couple enters a gift store just before closing time and begins to leisurely look through books and T-shirts. If they buy something, the salesperson doesn’t mind staying open late. If they are merely browsing, she would like to close the store. Ask students how the salesperson should approach and handle this situation. Tell students that they can observe the customers’ actions, listen to their comments, or ask them if they might like to buy something.
D Develop Concepts
How does knowledge regarding a customer’s motivation and value system help in determining needs?
When to Determine Needs The salesperson’s focus should be to determine the customer’s needs as early in the sales process as possible. Here is an example of what can happen when a salesperson does not determine needs early on.
Guided Practice
Salesperson: “This is one of our most popular
Determine Needs Review with students the five listening skills to use when talking to customers: maintaining good eye contact, providing verbal and nonverbal feedback, giving undivided attention, listening with empathy and an open mind, and not interrupting. Ask students to visit local stores and write two- to threeparagraph reports on how well the clerks demonstrated good listening skills.
tennis rackets. It’s perfect for you—the grip is the correct size and the large sweet spot can improve your game.”
Role Play Have conversations with students as if you were a shopper and they were salespeople. As you explain your needs, have them practice the five listening skills.
Go to the Marketing Essentials OLC through glencoe.com to find a research project on customer motivation.
whom the racket was being purchased. It could have helped the salesperson decide which racket to show the customer and features to emphasize. In retail selling, the salesperson should begin to determine needs immediately after the approach. In business-to-business selling, needs can be determined in the pre-approach. In both situations, the salesperson should continue determining needs throughout the sales process to find what the customer seeks.
Customer: “That’s very interesting; but, I’m not
buying the racket for myself. It’s actually a gift for my nine-year-old daughter.” After the initial approach, the salesperson could have asked, “Are you interested in a racket for yourself?” The answer to that simple question could have guided the salesperson into additional questions about the person for 284
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How to Determine Needs There are three methods used to determine customer needs: observing, listening, and questioning. (See Figure 13.1 on page 286.) Observing When you observe a customer, you look for buying motives that are communicated nonverbally. Nonverbal communication is glencoe.com
Skateboarding in Brazil Discussion Let students know that the success of Bob Burnquist, Lincoln Ueda, and other Brazilian pro skateboarders in America help fuel the sport’s popularity in their home country. Lead a discussion on how this can impact marketing. Answer: Such knowledge can help a salesperson in determining customer needs because the salesperson can then form a basis upon which to ask appropriate questions. For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com 284
D
expressing yourself without the use of words. Facial expressions, hand motions, eye movement, and other forms of nonverbal communication can give you clues about a customer’s mood and interest in a product. Observing how long a customer in a retail store looks at a product can give you an initial idea about the level of interest. In a business-to-business selling situation, you can generally get ideas about a buyer’s interests by looking around his or her office.
S
Listening Listening helps you pick up clues to the customer’s needs. You can use this information for the product presentation. Here’s an example. Customer: “I want a copier for my home business that is simple to use and reliable. My last copier broke down often, which was a
problem. I usually make one or two copies at a time. However, occasionally I may make up to 50 copies at once.” From these statements, you have learned that the customer is not looking for a top-ofthe-line copier. Since the copier is for a home business, size is a factor. Questioning and Engaging the Customer When you begin determining needs, first ask general questions about the intended use of the product and any previous experience with it. Build your questions around words like who, what, when, where, why, and how. You D might ask the following questions of someone who wants to purchase a copier: • Who will be using the copier? • What type of copier is the person presently using?
SECTION 13.2 CONTINUED
S Skill Practice Independent Practice Give students the following scenario: they are salespeople at a tennis store during a one-day sale offering special discounts and no sales tax. During the sale, 30 percent will be taken off the price of all rackets except for children’s rackets, which are half off. L1 Ask students: If a customer has a coupon for an extra 10 percent off all adult purchases, how much will he or she save on a purchase of $255? $102; $255 ⫻ .60 ⫽ $153; $255 ⫺ $153 ⫽ $102 L2 Have students calculate the cost of one adult racquet priced at $180 and one child’s racquet priced at $75. $163.50; ($180 ⫻ .70) ⫹ ($75 ⫻ .50) ⫽ $126 ⫹ $37.50 ⫽ $163.50
•DETERMINING CUSTOMER NEEDS The sales step of determining customer needs helps a salesperson match those needs with products or services.
D Develop Concepts
What does this ad say about the company’s policy of listening to customers’ needs? Chapter 13 — Initiating the Sale
AD GUIDE
L3 Tell students that a customer returns a child’s racquet bought on sale for $37.50 for a higher performance one priced at $120, even though there will be no discount on it. How much will he owe the store if sales tax is 6.25 percent? $87.66; $120 ⫺ $37.50 ⫽ $82.50; $82.50 ⫻ 1.0625 ⫽ $87.66
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• DETERMINING CUSTOMER NEEDS
Discussion Lead a discussion about the importance of listening. Suggest that an effective salesperson is one with good listening and observational skills because he or she can best determine the needs of a customer. Caption Answer Possible answers might include that the company listens more than it talks and places its customers’ needs first. Point out to students that one figure in the ad is going down on the escalator while the others are going up. Ask: What does this suggest about his financial situation?
Questioning To practice questioning, have students write 10 questions that might be used to find out what type of athletic shoe a customer wants to buy. Suggest they begin by discussing experience with shoe models, intended use, and the functions the customer is looking for. Role Play Role play as if you were shopping for a product either for home or for school, such as paper or vegetables. Have students use their questions to determine your needs and suggest models.
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13.1
Ways to Determine Customer Needs
•Observe, Listen, Question Selling is based on matching a customer’s needs or wants with the features and benefits of a product. In the step of the sales process known as determining needs, the salesperson gathers information in order to match the customer’s needs and wants with a product. There are three ways to do that. Is there one best way to determine customer needs?
CONCEPTS Ask students to describe open-ended questions and how they are used in sales. Open-ended questions require more than a yes or no answer and provide information about a customer’s needs.
Observing Customers provide many nonverbal cues about their product interests. By carefully observing a customer, a salesperson can learn a lot about the customer’s interests. The salesperson can then use that information to guide the customer to products that might result in a decision to buy.
KEY TERMS Have students review key terms and rephrase their definitions in their own words.
Listening When a customer is ready to talk, the salesperson should give the customer his or her undivided attention and maintain eye contact. Other guidelines that help to make the salesperson a good listener are not interrupting until the customer has finished, providing feedback, and listening with an open mind.
INDEPENDENT REVIEW L1 Assign and review Chapter 13 activities in the Student Activity Workbook. L2 Assign and review Chapter 13 activities in the Marketing Math Workbook. L3 Assign and review Chapter 13 activities in the BusinessWeek Reader with Case Studies.
AFTER YOU READ Have students complete the Section 13.2 After You Read section review.
Questioning Questions can encourage a customer to talk. When asking questions, salespeople should begin with general questions, such as those beginning with who, what, when, where, why, and how. For instance, this salesperson might ask what color of shoe the woman is shopping for. Salespeople must be careful not to ask a question that is too personal or unintentionally offends the customer. That might quickly put an end to the sale.
Go to the Marketing Essentials OLC through glencoe.com to find a project on determining customer needs.
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ONLINE STUDY TOOLS Have students go to the Marketing Essentials OLC through glencoe.com for the Section 13.2 practice test.
13.1
Ways to Determine Customer Needs
Discussion After students read Figure 13.1, discuss the ways to determine a customer’s needs, such as observing, listening, or questioning. Let them know that they are not mutually exclusive; a combination of ways can be used. Caption Answer Most students should agree that a combination of the three methods (observing, listening, and questioning) would usually work best. For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.
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(tr) Royalty-free/Getty Images, (cl) Rachel Epstein/PhotoEdit, (br) Bob Daemmrich Photography
SECTION 13.2
• How much experience has the person had with copiers? • How many copies will the person be making every week or month? How to Refine Your Questioning Once you have an idea of the customer’s general needs, then you can ask more specific questions relating to the product. In the case of the copier, you could ask about the need to enlarge or reduce the size of the copy, and the need to collate and staple copies. Open-ended questions are those that require more than a yes or no answer, such as “What do you dislike about your current copier?” The answer to such a question will provide valuable information about a customer’s needs. Keep in mind that some customers will be protective of their privacy; they may resent some nonpersonal questions.
Here are some other dos and don’ts guidelines for questioning: 1. Do ask open-ended questions that encourage customers to do the talking. 2. Do ask clarifying questions to make sure you understand customers’ needs. To do this, use opening lines such as “Let me see if I understand you” or “Are you looking for a product that can . . .?” 3. Do not ask too many questions in a row. This will make customers feel as if they are being cross-examined. 4. Do not ask questions that might embarrass customers or put them on the defensive. Never ask, “How much do you want to spend?” Instead, ask about the intended use of the product and any past experience. That should give you enough information to determine the correct price range on your own.
13.2 AFTER YOU READ Key Terms and Concepts 1. Why is determining needs an essential step in the sales process? 2. How can you use open-ended questions to encourage customers to talk? 3. You are a salesperson in a rug store that carries inexpensive, medium-priced, and very expensive handmade area rugs. How would you determine your customer’s price range?
Algebra: Using Symbols
Academic Skills Math 4. Based on your analysis of the customer’s needs, a premium of $1,500 per year is required for long-term health care insurance for your client. You want to offer a quarterly payment schedN ule. There is a surcharge of $25 per quarter for C L this service. What are the quarterly payments?
B English Language Arts/Writing
5. Use the product you used at the end of the last section to write five to ten questions that could help determine a customer’s needs in the sale of that product.
You can use algebraic symbols to represent unknown quantities and write equations to solve problems. 1. To solve this problem, let q represent the quarterly payment. Use it to write an equation to fit the situation described in the word problem. 2. The equation should show that q equals the yearly premium divided by 4 to determine the quarterly premium, plus the $25 surcharge. For help, go to the Math Appendix located at the back of this book.
SECTION 13.2
CULMINATING ACTIVITIES 1. Tell students they are working as salespeople at a nursery that specializes in orchids, a type of flower that is very difficult to grow. It is often unclear whether a customer has experience raising such delicate plants. Ask students to create tactful questions that can be asked to find out whether a customer knows what he or she is buying. Break students into groups of three or more and have them write scripts for a role play between a salesperson and a customer. Ask teams to act out the role plays in class. 2. Ask students to provide answers to the following questions: • What are some examples of nonverbal communication? Answers may include tone, facial expressions, and eye movement. • When determining a customer’s needs, around what three words should you base your questions? The three words are what, when, and where. N C L B
NCLB Activity correlated to Mathematics and English Language Arts Standards
Check your answers at the Marketing Essentials OLC through glencoe.com.
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13.2 AFTER YOU READ Key Terms and Concepts 1. Determining needs is used to build the entire sales presentation and is the basis for consultative selling. 2. Asking open-ended questions allows the customer to talk about his or her needs.
3. Do not directly ask about his or her price range. Instead, ask about the rug’s intended use to gain clues of how much he or she expects to pay.
Academic Skills 4. $400; $1,500 ⫼ 4 ⫽ $375; $375 ⫹ $25 ⫽ $400 5. Answers will vary depending on the product used and should be in appropriate question format.
Find answers at the Marketing Essentials OLC through glencoe.com. 287
Lifelong Learning
MELISSA MCINTOSH, MJE FOUNDER 1214 ENTERPRISES, INC.
CAREER INFORMATION
What do you do at work? For my corporate clients in law, real estate, medicine, engineering, architecture, and construction, I can provide a full spectrum of design and print-brokering services so that they have one contact for all their marketing collateral needs. A big part of my job is focused on service: handholding a brochure all the way through the print process with an outside commercial printer, making 900 tweaks to a corporate logo to get it “just right,” and making sure that I pay attention to all the small details.
Have students go to the Marketing Essentials OLC through glencoe.com and find the Chapter 13 Careers page and click on the link for the American Marketing Association’s Careers Strategies and Tips. Ask students to select one article, read it, and summarize it in three short paragraphs.
INITIATING THE SALE Entrepreneurs have to sell. Their livelihood is based on their ability to determine the needs of clients and offer their skills and services as a solution. Customer research and feedback, as well as market trends, may help entrepreneurs in determining needs. The ability to determine needs quickly and accurately is a necessary skill for any entrepreneur.
What skills are most important to you? The ability to be flexible. Being able to keep from getting frustrated and to move between being a marketing consultant, tech support guru, and graphic artist. Having a background where I’ve worked with computers since the mid-80s and have learned a lot in the trial and error department has really helped.
Primary Source
Other than college, what kind of training and classes might be worth pursuing?
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Test-Taking Strategies For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.
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Courses Marketing, communication, computer science Degrees BA, MBA
Before starting their own companies, many entrepreneurs train at companies that do the work they want to do. To eventually run a marketing consulting firm, the best career track is to work in marketing, sales, and communications departments.
Growth to increase faster than average for the next ten years
Source: Occupational Outlook What is your key to success? Handbook Very simple: hard, hard work. In any of the jobs I’ve had, either in education or business, and in owning my own company now, I have never bragged that I’m the smartest, most creative, most cutting edge, or whatever. But how I have always had an edge over the competition is that I’m willing to out-work them. If the “what does it take” requires evenings and weekends to get the job done just a bit better than the other guy, fine.
Ask students to go to the Marketing Essentials OLC through glencoe.com and find Chapter 13 Resources. Ask them to click on the link for the American Marketing Association’s marketing dictionary and read the definitions of the terms they find that are related to initiating the sale.
Training and classes other than college include trade schools, workshops, and internships.
Computer skills, sales and communication skills, versatility, an eagerness to learn and gain new experiences
Break the class into four teams. List key terms on the board and have volunteers define and discuss them. Give a point to each team that gives the correct answer. This quiz format allows students an interactive forum for review.
Go to the Marketing Essentials OLC through glencoe.com for a career-related activity.
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CHAPTER
13 R E V I E W
CHAPTER 13 REVIEW
SECTION 13.1 • Seven steps in the sales process are approach, determining needs, product
presentation, overcoming objections, closing the sale, suggestion selling, and relationship building. • Relationship building is important to create loyal customers. • The approach step of the sale can make or break the sale. • The three purposes of the approach are to begin a conversation, build a relationship, and
focus on the product. • The three retail sales approaches are service, greeting, and merchandise.
SECTION 13.2 • Determining needs is a step in the sales process that should begin as soon as possible
and continue throughout the process. • Three methods to determine needs are observing, listening, and asking questions.
1. On a sheet of paper, use each of these key terms and academic vocabulary words in a written sentence. Key Terms Academic Vocabulary • • •
service approach (p. 280) greeting approach (p. 281) merchandise approach (p. 282)
• •
nonverbal communication (p. 284) open-ended question (p. 287)
2. What are the seven steps of a sale? (13.1) 3. What are the main purposes of the approach step in the sales process? (13.1)
• • • •
establish (p. 279) item (p. 282) alternative (p. 283) seek (p. 284)
7. What types of questions should be asked to determine customer needs? (13.2)
8. When should a salesperson determine needs? (13.2)
4. Describe an initial business-to-business sales approach by a sales representative from the XYZ Copier Company meeting a new prospect. (13.1)
10. Why is listening important in sales? (13.2)
5. Why is determining needs an essential step
11. What is an open-ended question? (13.2)
9. What do you look for when observing a customer? (13.2)
in the sales process? (13.2)
6. List three methods for determining needs. (13.2) Chapter 13 — Initiating the Sale
Ask volunteers to read the summaries aloud and rephrase them in their own words. Have interested students enact the three retail sales approaches. ELL Have students translate the key concepts into their own language first, then in English.
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See the Glossary at the back of this book for definitions of Key Terms, Academic Vocabulary definitions are on the book’s OLC. 1. A sample answer might read: Key Terms Nonverbal communication is expressing yourself without the use of words. Academic Vocabulary An item is an object of attention, concern or interest.
2. The seven steps are approach, needs determined, product presentation, overcoming objections, closing the sale, suggestion selling, and relationship building. 3. The main purposes of the approach are to begin a conversation, establish a relationship with the customer, and focus on the product. 4. Answers will vary but may include an introduction, a firm handshake, and a smile. The greeting may resemble, “Hi, I am ______ from the XYZ Copier Company. I am here to show you a way to reduce your expenses and improve your employees’ productivity.” 5. Determining needs helps match customers’ needs with product features that solve their problems. 6. Three methods for determining customer needs are observing, listening, and questioning. 7. Questions about intended use and experience should be asked first. 8. Needs should be determined immediately after the approach. 9. Look for buying motives that are communicated nonverbally, or expressed without words. Facial expressions, hand motions, and eye movement provide clues about a customer’s mood and interest in a product. 10. Listening helps you pick up clues to the customer’s needs, which can also be used for the product presentation. 11. An open-ended question requires more than a yes or no answer, and provides valuable information about a customer’s needs.
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CHAPTER
CHAPTER 13 REVIEW
12. Workplace Skills Students should introduce themselves as sales representatives from the XYZ Corporation while using the appropriate greeting for each country: Japan: handshake and slight bow; Germany: firm, short handshake; Brazil: light handshake that lasts a long time; Singapore: slide palms together and bow.
12.
13.
13 R E V I E W
Workplace Skills
14.
Budgeting Your Time You are stuck in
research different ways of greeting people. Conduct a role play with classmates to demonstrate the proper way to greet customers who are from Japan, Germany, Brazil, and Singapore in a business-tobusiness setting. Assume you are employed by the XYZ Corporation.
traffic, and you are going to be late for your first meeting with a potential customer. You are traveling at ten miles an hour and have five miles to go. If it is 8:00 a.m., at what time can you expect to arrive if you keep traveling at that speed? What should you do? How could you prevent this situation from happening again?
Technology Applications
Measurement: Using Formulas Rate (r), time (t), and distance (d) are related according to the formula rt = d. If you know two of the quantities, you can find the third using this formula.
Research During Pre-approach Imagine that you are a sales representative for a tool distributor such as Grainger and you have a meeting with a car dealer who repairs cars on the lot. Using the Internet, research the car dealerships and repair shops to determine the needs that might be met by items in your product line. Prepare a short, one-page report on your findings.
13. Technology Applications Reports might indicate whether the car dealer’s vehicles use metric or English tools as well as tools used for typical problems.
For help, go to the Math Appendix located at the back of this book.
15.
and reread longer paragraphs that include several sentences. Find an example of a paragraph that compares and contrasts two things. Write a few sentences identifying the paragraph, describing the two things compared or contrasted, and explaining the similarities or differences.
16.
Why Does the Approach Used in Business-to-Business Selling Differ From the Retail Approach? Imagine that you are a salesperson selling seeds to garden supply stores. Think of how you would approach the sale using a retail sales approach. Do you think that would be an effective approach? Why or why not?
16. Why Does the Approach
Used in Business-toBusiness Selling Differ From the Retail Approach? During an appointment with a gardening supply store, the business relationship is already present, an appointment has probably been made, and business can be attended to with less greeting and more listening and questioning.
17. Approaching and
Determining Needs Role plays and lists will vary; all students should demonstrate communication skills such as observing, listening, and questioning. 290
English Language Arts Compare and Contrast Skim the chapter
14. Math Practice 5 miles ⫼ 10 miles/hour ⫽ 30 minutes; 8:00 A.M. ⫹ 30 minutes ⫽ 8:30 A.M. Students might suggest letting the customer know that you are going to be late or allowing for a longer commute time to prevent the situation from happening again. 15. English Language Arts Accept all reasonable answers. For example, under The Approach in Business-to-Business Selling on page 279 compares the initial approach with the pre-approach.
Math Practice
Human Relations Use the Internet to
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17.
Approaching and Determining Needs Role-play the approach and determining needs steps of a sale with a classmate by using a personal product, such as a jacket, calculator, or purse. Assume you work for a retailer.
Activity Make a list of guidelines for listening, observing, and asking questions. At the conclusion of the role play, provide the salesperson with constructive criticism. Change the product and switch roles with your partner to repeat the assignment.
UNIT 5 — SELLING
Formative Assessment Formative assessment is an essential component of classroom work. This type of assessment provides information that is then used as feedback to modify teaching and meet student needs. L1 Have students list the three methods of determining customer needs. L2 Have students describe the methods of determining needs in the form of a story. L3 Have students write plays in which they act out the methods of determining customer needs in both business-to-business and retail settings. If the results of this formative assessment seem low, consider the following activity: Read each of the key terms aloud. Have students define the key terms and use them in a sentence. Clear up any confusion students may have.
CHAPTER
18.
CHAPTER 13 REVIEW
Selling on the Internet Select a company that sells its products on the Internet, such as Dell or Gateway computers. Assume the role of a customer and research the questions you should ask in order to decide on the best buy for your needs.
STANDARDIZED TEST PRACTICE 1.
13 R E V I E W
Directions Choose the letter of the best answer. Write the letter for the answer on a separate piece of paper.
If you travel 210 miles in 3.5 hours, what is your average speed? A 70 mph B 60 mph C 65 mph D 80 mph 2. Directions Choose either True or False as the answer. Write the letter for the answer on a separate piece of paper. Open-ended questions require more than a yes or no answer. T F
Role Play Assistant Manager, Kitchen Store Situation Assume the role of assistant manager of a kitchen supply store. The store carries cooking-related small appliances, cookbooks, gadgets, and cookware. Your duties include training new employees. A newly hired employee (judge) began work last week. Each day you review an aspect of sales training with the new employee (judge). Later today you will review the approach to the sale. Activity You are to prepare your presentation to the new employee (judge). You are to include an explanation of the three types of retail sales approach. You are to also provide an example of each that applies to your store. Evaluation You will be evaluated on how well you meet the following performance indicators: • Explain the selling process. • Establish relationship with customer. • Recommend specific product. • Orient new
Test-Taking Tip
employees.
Test-Taking Tip
• Foster positive
Read and consider all of the answer choices before you choose the one that best answers the question.
18. Selling on the Internet Customers’ questions will depend on the online company selected; all questions should reflect intended use and experience.
working relationships.
Chapter 13 — Initiating the Sale
ANSWERS 1. B 2. T TEST-TAKING TIPS When your students have a standardized test coming up, these last-minute tips and strategies will help students relax and do their best. Test Format Help your students become familiar with the format of the specific test they are going to take by practicing with test items that imitate the actual test items. Test Timing Have your students take one or more timed practice tests so that they become comfortable with the test format.
MINI-QUIZ
For more information and DECA Prep practice, go to the Marketing Essentials OLC through glencoe.com.
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STANDARDIZED TEST PRACTICE
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Read these sentences to the students and have them volunteer the missing word(s): 1. Always ask ________ customers if it is a good time to see them. (business-to-business) 2. With ________ approach, the salesperson asks the customer if he or she needs assistance. (service) 3. ________ approach is usually the most effective initial approach in retail sales. (merchandise) For an expanded chapter quiz, go to Chapter 13 in the TeacherWorks™ Plus DVD and to Chapter 13 in the ExamView® Assessment Suite.
Students should be evaluated according to the performance standards noted in the role play. For another DECA role play, go to the Competitive Events Workbook or the Student Activity Workbook, or go to the Marketing Essentials OLC through glencoe.com. For instructions, ideas, and answer guide, go to the Teacher Center at the Marketing Essentials OLC through glencoe.com.
DECA Advisors Corner Select any of DECA’s series events to reinforce the lessons in this chapter. The role-play situations dealing with sales and the sales process will give your students opportunities to master initiating the sales process and view it from both sides. 291