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5.01 RETAILSELLING

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sSelling as a marketing

function

Personal selling: A function of marketing that involves personalized, **two-way communication between the salesperson and the customer in the process of exchanging merchandise for money or credit.

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sCustomer-oriented selling: meeting and exceeding customer expectations while making customers feel important, identifying their needs, and finding solutions to best fulfill those needs.

**example - Nordstrom

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sTypes of Salespeople

1. Sales clerk: An “Order-taker”:• ***stand behind the counter • ***ring up a sale • usually employed by stores that sell

lower-priced merchandise.

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s2. Sales associate: • Skillful retail employee• uses creative selling

skills • influence customers’

purchasing decisions• usually in high-service

retail department and specialty stores.

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s 3. Personal shopper:

• **Assists customers with individualized attention and service beyond what a retail sales associate would offer.

• **May help customers pull together an entire season’s wardrobe

• **Usually provides service by appointment

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sThe Importance of Salespeople

• Develop professional relationships with customers.

• **Primary store contact for most customers.• Create higher sales, thus more profit, while

***helping customers solve problems.• Create happy, ***repeat customers and

whose word-of-mouth endorsements gain the business of new customers.

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sHow To Motivate Salespeople

• 1. **Organizational climate: The feeling that employees have about their opportunities, value, and rewards for good performance within the business.

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sMethods Used To

Motivate Salespeople (cont.)

• 2. Compensation: Payment and benefits for work accomplished.***– Wage: Payment based on a set rate per hour for

the number of hours worked.

– Salary: Payment based on a fixed dollar amount for a specified period.

– Commission: ***Payment based on a percentage of the dollar amount of sales made by a salesperson.

– Hourly wage or salary plus a commission

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s– Sales quota: The projected volume of sales

assigned to a department or person for a time period.

• ***Such as: you must sell $500 each night in December

• Compensation is often tied to meeting the sales quota.

– Incentives: Contests, prizes, rewards, honors, merchandise and cash bonus awards, days off, trips, used to motivate salespeople. ***ex: a make-up company awards the highest sales rep with a beach trip

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s***Non-Selling Duties and

Responsibilities

• Basic stockkeeping duties/tasks– Stockkeeping– Receiving merchandise– Preparing merchandise

for sale• Maintaining product

information

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sStockkeeping: Receiving, preparing, and protecting merchandise against damage or theft, and participating in

maintaining store or department inventory.

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sReceiving: The actual exchange of goods between the vendor’s transporting agent and the retailer.

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sReceiving Merchandise• Inspect for damage.

• Verify that merchandise received is as ordered.

• Record goods on the receiving record.

• Process necessary returns to vendors.

– Returns to Vendors: Goods that are shipped back to a supplier by a store.

– May be necessary because of mistakes in filling the order, unacceptable substitutions, late delivery, or defective merchandise

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Preparing merchandise for sale

• Sort and arrange merchandise by color, size, and/or classification.

• Ticket and price merchandise if necessary.

• Transfer merchandise between store branches.

• Set up and clean merchandise fixtures.• More . . . . .

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s • Use appropriate hangers or shelf arrangements for displays.

• Put out goods to maintain stock levels.• Straighten merchandise during slow traffic

periods.

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sMaintaining product

information

•Product knowledge allows the salesperson to tailor the sales message to meet the specific needs of each customer. **benefits of certain fibers

•Types of information needed

−Product use

−Product care

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sSources Of

Product Information

• Personal use/experience• Promotional circulars and flyers• Consumer publications • Trade publications• Store buyers (**how to display

seasonal merchandise)• Manufacturer’s literature

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sLabels: ***Small pieces of ribbon or

cloth that are permanently attached to the insides of garments to provide product information.

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sLabels… (cont.)

• Must include information required by law– all fibers used in garment and

percentage of each fiber used– Identification of producer or distributor– Item’s country of origin– Care requirements

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sHangtags: Removable cardboard or

heavy paper “signs” that are attached to the outsides of garments with strings, plastic bands, pins, staples, or adhesives.

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sHangtags… (cont.)

• Information may include– Brand name/trademark– Size– **Suggested price– **Style number– Special features such as fabric

finishes, reversibility, etc.– Symbols and logos to identify designers,

manufacturers, or sellers

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sPackaging: ***The covering,

wrapper, or container in which some items are placed.

• If information that is required by law on labels cannot be seen through packaging, it must be repeated on the package.