U.S. Small Business Administration                          MT-1


               CREATIVE SELLING: THE COMPETITIVE EDGE


                         Marketing Series


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While we consider the contents of this publication to be of 
general merit, its sponsorship by the U.S. Small Business
Administration does not necessarily constitute an endorsement of
the views and opinions of the authors or the products and 
services of the companies with which they are affiliated.

All of SBA's programs and services are extended to the public on 
a nondiscriminatory basis.
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                     TABLE OF CONTENTS

INTRODUCTION

TYPES OF SALES PERSONS

CREATIVE SELLING PROCESS

ATTRIBUTES OF A CREATIVE SALESPERSON

APPENDIX: INFORMATION RESOURCES
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INTRODUCTION

An important ingredient in the successful retail or service
business is good selling.  Without it, many sales are lost -- 
sales that may mean the difference between success and failure. 
This publication tells you how you can train yourself and your
employees to become creative sales people.

To many customers, the salesperson is the business.  Therefore, 
if the sales personnel are good, the business is good.  But if 
the sales personnel are bad, then so is the firm.  Although
important to all businesses, effective sales personnel are
especially important to small businesses. Why? Because it is
difficult for a small business to compete with the big firms on
things like assortment, price, and promotion.  Selling effort, on
the other hand, is one place where the small product or service
retail business can compete with larger competitors -- and win.

Effective selling doesn't happen by accident.  The small
entrepreneur must work to achieve a high level of sales
effectiveness in his or her business.  In order to work toward 
this goal, the businessperson should be aware of the different
types of salesperson, the selling process, and the attributes of
effective salespersons. Applying such knowledge to a business
situation should result in the desired goal of effective sales
personnel -- the competitive edge.

It is important to note that retailing may involve selling 
services instead of products.  Appliance repair, beauty shop, 
lawn service, and photography studio are all examples of service
retailing.  Even though services are intangible, personal,
nonstandardized, and perishable when compared to products, they 
are sold by retailers either alone or in conjunction with 
products.  The effective selling of services has the potential to
give a business a competitive advantage.
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TYPES OF SALESPERSONS

There are three main types of sales personnel (Figure 1)
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Routine==================================================Creative
 Effort     Order-            Order-           Order-     Effort
           Handler            Taker            Getter
            Figure 1. Types of Retail Sales Personnel
             (Classified by Level of Creative Effort)
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Order Handler.  The ticket-taker at the concert, the checker at 
the food store -- these salespeople are working in a routine
selling environment.  But due to the nature of their jobs, they
will be asked numerous questions by customers as well as hear
complaints about prices and services.  A knowledgeable person 
with a pleasant personality is especially needed for this job,
because this is usually the person who is dealing with the 
customer when the customer's money (payment) is received.

Order-Taker.  As noted in Figure 1, more creativity is found in
this job as compared to the order-handler.  The counter attendant
at the fast food restaurant may take the order and then suggest
that the customer might also wish to buy a hot apple turnover. 
Pleasant personality, fast service, and suggestion selling on the
part of the order-taker can result in many additional sales.

Order-Getter.  For many businesses, the heart of the selling
process rests with the creative selling efforts of their
salespeople.  Of course, one of the greatest problems is that 
there are numerous order-handlers and order-takers in selling
positions that should have order-getters for optimum selling
effectiveness.  Clothing, furniture, jewelry, and appliances are
just some of the many items that call for order-getters (a person
who can handle a transaction, take an order and, most 
importantly, get an order). As for services, the home security
salesperson, for example, who calls on a prospect because it is
observed that the house has no dead bolt locks, is making that
special effort to be an order-getter.  Even though all selling
situations do not call for order-getters, all salespeople will be
called upon to sell creatively from time to time.  It is for this
reason that all sales personnel need to have a working knowledge 
of the creative selling process.
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CREATIVE SELLING PROCESS

As shown in Figure 2, the creative selling process consists of
eight steps, none of which is less important than any other if 
the process is to be effective.  It should be emphasized to all
employees that all steps are vital to the achievement of 
effective selling.

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1. Pre-Customer Contact.  

A smart builder would not attempt to build a house without a good
foundation.  Likewise, a businessperson should not place people 
on the sales floor or telephone until these people know the
business, merchandise, services and customers. Before any contact
is made with the customer, every salesperson should know.

Polices, Procedures, and Rules. Have these in writing for all
employees to see and to know.

Operation of Equipment.  No matter whether the register is
electronic or mechanical, the time to learn how to work it is not
after a ales while the customer waits for change.

Target Market Knowledge. The better sales person knows something 
of the likes and dislikes of the firm's primary customers. The
business operator should tell all sales personnel about the
business's customers and their lifestyles. Tell the salespeople
about customer's interests and ability to buy.

Product Knowledge.  A salesperson gains confidence by knowing 
about the products and services he or she is selling.  If a 
person sells shoes, it helps to know the merchandise as well as 
how to fit them.  If a person sells building materials, the 
selling job is probably more effective if the salesperson can 
also help answer questions about home repairs. It helps the 
person who sells clothes to know something about fabrics and
current fashions.  If the person is in the lawn service business,
that person should know about lawn care. Most sales personnel 
will not take the initiative to acquire product knowledge on 
their own.  It is management's responsibility to encourage
employees to gain product and service knowledge. Management 
should make such knowledge available to them.

2. Prospecting.

Although not appropriate to every selling situation, prospecting
should be used whenever possible.  Essentially, prospecting
involves not waiting for the customer to show up at a store or to
phone about a service.  It is concerned with taking the 
initiative by going to the customer with a product or service 
idea.  Prospecting may be of two types: new or regular customer
prospecting.

New Customer Prospecting.  A salesperson sees that a person is
getting married.  Action is taken on this knowledge by contacting
the person and telling her about appropriate items (or services)
that might be of assistance to a new bride. By using newspapers 
and personal contacts, a salesperson can take the initiative to
contact and create new customers.

Regular Customer Prospecting.  A firm's best prospects are its
current customers.  A salesperson should make a practice of 
calling regular customers on a periodic basis to tell them about
products or services.  "Hello. Mrs. Anderson, I just want to tell
you about the new shipment of dresses that we received today.  As
I unpacked them, I saw several that made me think of you." 
Prospecting with regular customers works!  All salespeople should
be encouraged to prospect by phone and in-person whenever they 
see regular customers.  A word of caution must be emphasized. 
Don't go to the well too often.  Prospecting with the same 
regular customer on a frequent basis can make prospecting lose 
the special feeling that it can create in customers. Do not 
overuse it.

3. Initial Contact.

The most effective way to close a sale is to open it on a 
positive note. Unfortunately, most sales do not open this way.  
The typical initial store contact begins in this manner:

Clerk:  "May I help you?"
Customer: "No thank you. I'm just looking."

This ritual leaves much to be desired.  Why?  It is an automatic
statement that shows no creativity on the part of the 
salesperson.  Also, because the customer has heard this statement
many times, his or her response is usually given without thinking
what was said.  Every salesperson should be challenged to treat
each customer as an individual by responding differently to each
customer.

Initial contact also means responding to customers when they 
enter the sales areas even when they cannot be waited on
immediately.  Salespeople should be instructed to tell waiting
customers that, "I'll be with you in a moment."  Such actions 
will reduce the number of customers who leave without being 
served.  When the employee is free to help the waiting customer,
the initial comment should be, "Thank you, for waiting."  A
courteous, creative initial contact with the customer can go a 
long way to promote sales.

4. Presentation of Merchandise.

In presenting merchandise (or services) to the customer, the
salesperson should use product knowledge to best advantage. How?

Buy Benefits.  Although it is good to talk about the lawnmower's 
3 1/2 horsepower mower, customers may be more interested in 
hearing about how fast the lawnmower will cut the grass.  Product
knowledge is important but the salesperson must remember what 
makes the customer buy.  Clothes may be made of durable fabrics,
but it is also important to stress the implied benefit that they
will also appeal to the opposite sex.  Sell benefits!

Customer Involvement.  Product knowledge can be used to get
customer involvement.  Show the customer several features of the
digital watch and then have the customer put it on and work it.  
If the interest is there, it will be hard for the customer to 
take off the watch so that the salesperson can put it back into 
the case.  The best way to present many products is to get
involvement.  Want to sell dance lessons? Get the customer on the
dance floor and let the fun of dancing do some of the selling. 
The same is true with clothes, perfume, sports equipment, and
almost anything else.

Limit the Choices.  If during the sales presentation more than
three items are in front of the customer, the changes of a sale 
are reduced while the possibility of shoplifting is increased.  
If, for example, the salesperson continues to carry dresses into
the fitting room for the customer to try without removing any 
from consideration, the customer will likely not buy any because 
of the inability to decide from among so many choices. Also, with
so many items under study, the clerk may lose track of how many
items are in the fitting room.  It is possible that some may be 
put on under the customer's clothes while the clerk is not 
present, thereby resulting in an expensive experience for the
store.  Likewise, if a travel agency attempts to sell a customer 
a Caribbean cruise, the changes of making the sale will diminish 
if too many trip options are presented.  Unless there is a 
definite reason for an exception, the rule of three (never show
more than three choices at one time) should be followed whenever
merchandise is presented.  Limited choices have been found to
promote sales.

Use Showmanship.  In presenting merchandise to the customer,
encourage all personnel to be creative.  Be enthusiastic about 
the merchandise.  Hold the necklace up for the customer to see 
it.  Make the portable baby crib "look" easy to work.  Lay the
different pieces of the cookware set before the customer in an
attractive easy-to-see everything manner. Ask your salespeople to
think like a customer.  If I were a customer, what would I like 
to see?

Message Adaptation.  A knowledgeable salesperson should know 
about the products being sold.  Message adaptation involves
deciding what information is needed to sell a particular customer
and how that information should be presented to that customer. 
Canned sales presentations do not allow for adaptation.  The
effective sales person will make an effort to adjust the
presentation to the customer. If the customer knows about gardens
and lawns, the person selling a lawn service should adapt the 
sales presentation to the level of the customer's expertise.  
Don't bore the customer with known facts.  It could lose a sale.

5. Handling Objections.

Remember, if objections are present, progress is probably being
made on the sale. Most salespeople are afraid of objections. 
Stress to all employees that objections are a natural part of the
selling process.  They do not mean that the sale is lost.  In 
most cases, all that is required to overcome an objection is more
selling on the part of the salesperson.

Common types of customer objections that are faced by a 
salesperson are:

Product: "That dress looks out-of-date."
Store: "You never have the right merchandise."
Service: "If I believe what I hear, I can't get good service from
you."
Price: :It is just too expensive."
Salesperson: "Are you sure these shoes fit right?"

These and other objections can be met by the salesperson in 
several ways. Using the above product objection as an example,
these methods include:

Yet-But: "Yes, it does look out-of-date, but it is the latest."
This approach beings on a positive note by agreeing with the
customer and then moves on to answer the objection.

Counterquestion.  "Why do you feel it's out-of-date?" The
counterquestion puts the ball back in the customer's court.  By
asking "Why?" the real reason for the objection may become known.

Restate Objection. "You feel that the dress looks out-of-date." 
By restating the objection, the customer may respond by saying,
"No, I mean it just doesn't look right on me," or something of a
similar nature.  This approach tends to reduce the magnitude of 
the objection in the eyes of the customer.

Direct Response. "The dress you have on was first shown at the
market this season  It is the latest thing." Although offensive 
to some, this approach may be necessary if the customer is  not
going to buy unless the untruth can be corrected.  Tact is
important when using this approach.

These four approaches for handling objections are not meant to be
all-inclusive. These and other approaches do point out, however,
that objections should and can be answered by the salesperson. 
Unless objections are overcome to the satisfaction of the 
customer, it is questionable the sale will be made.

6. Closing the Sale.

In various ways, the salesperson can assist the customer by 
helping him or her to make the buying decision.  Closing 
techniques that can aid in this effort include:

Offer a Service. "Let us deliver it to you this afternoon."  A
"Yes" implies purchase.

Give a Choice: "Do you want the five-piece or eight-piece cooking
set? Either choice implies purchase.  Note that "No" was not one 
of the choices.

Offer an Incentive. "If you buy now, you get 10 percent off the
already low price." If you wait, you don't get the 10 percent
discount.

Better Not Wait. "If you want this refrigerator, butter get it 
now.  It's the last one in stock." Note it pays to be honest.  If
the customer buys and then comes by the store the next day and 
sees that the store did have another one, this closing technique
may have made the sale, but it could lose the customer.

7. Suggestion Selling.

The customer has made a purchase.  Now what? Encourage your sales
personnel to make a definite suggestion for a possible additional
sale. For many businesses, sales can be increased by 25 percent
through positive suggestion selling.  Please note that statements
such as: "Will there be something else?" or"Can I get you 
something else?" are not suggestion selling.  They do not make a
positive suggestion.  When the customer buys a lamp, what about a
light bulb to go in it?   IF a picture is purchased, what about 
the necessary hardware to hang it properly?  If a suit is bought,
what about a new blouse or shirt that goes well with the color? 
Where appropriate, the creative sales person will actually get 
the suggested item and show it to the customer.  Or if a person
brings in a watch to be repaired, why not also clean it while it 
is taken apart?  This type of initiative usually results in more
sales. It should be emphasized that most customers like to 
receive a valid suggestion.  In some cases, suggestions may even
permit the customer to avoid another shopping trip to pick up 
that needed item that they had not thought about.  Good 
suggestion selling makes sales and builds confidence in the 
firm's business.

8. Sales Follow-Up

Although not apparent to many salespeople, follow-up is a part of
every sale.  The closing statement, "Thank you for shopping at
(name of store," is a form of sales follow-up if done with
enthusiasm.  Unfortunately, just making the statement in an
automatic manner is about as effective as that other worn out
phrase, "May I help you?" If done correctly, however, it allows 
the customer to leave on a positive note, thereby increasing the
changes of repeat business by the customer.

Follow-up may also concern itself with checking on anything that
was promised the customer after the sale.  If delivery is 
supposed to take place on Friday, the salesperson will check to
make sure that the promise will be met and, if not, will notify 
the customer of the problem.  Good sales follow-up will prevent 
the type of situation that occurs so often when the customer 
calls on Friday asking, "Where is the delivery truck?" A business
with a reputation for sales follow-up is going to obtain 
additional business because of its concern after the sale.  
Sincere sales follow-up is good business.  Imagine the impact 
that can be had on a customer when the carpet cleaning service
telephones the customer 48 hours after cleaning her carpets to be
sure that everything is satisfactory.  Sales follow-up buildings
good will and repeat business.
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Attributes of a Creative Salesperson.

In addition to having personnel who understand and apply the
creative selling process, an organization should try to have
salespeople who possess certain attributes that can make them 
more effective in their jobs.  These attributes, which can be
grouped into mental and physical categories, merit further
discussion.

Judgment.  Common sense, maturity, intelligence -- these and 
other terms are used interchangeably with judgment.  A 
salesperson knows that it does not pay to argue with a customer. 
The salesperson also knows that the firm should never be "cut" in
front of customers.  These situations reflect the use of good
judgment on the part of the employee.  Please note that the term
maturity is sometimes used in place of judgment but that it is 
not necessarily a function of age.

Tact.  If an employee has a keen sense of what to say and do, 
many problems can be overcome before they are created. Many
employees give little thought to the impact of their actions.  A
child playing with toys in the toy store is told in a blunt 
manner to "quit playing with the toys and go find your mother."
While all this is going on, the mother is standing behind the
salesperson.  Was a confrontation with the child necessary? No. 
Could it have been handled differently? Yes.  How does the child
and mother feel about the store?  The feeling is not good. This
salesperson lacked the ability to know what to do and say in 
order to maintain good customer relations.  Be tactful.

Attitude.  A good salesperson will have a positive attitude 
toward customers, merchandise, services and the business.  A good
attitude means that an employee is willing to accept suggestions,
to learn and to apply the steps in the creative selling process,
and to not be afraid of work.  A salesperson with a bad attitude
can create unnecessary problems.  A bad attitude is contagious. 
If any employee is otherwise competent, management should work 
with the employee to develop a positive attitude. Positive
attitudes can result in sales.

Selected Physical Attributes.  To be a success, the salesperson
must physically belong in the firm's particular environment. 
Personal appearance and personal hygiene are important in the
selling environment.  IN terms of personal appearance, a slim
salesperson would be more appropriate than a larger person in a
sales position at a health spa.  Equally important in terms of
personal appearance is a clothing salesman who e\wears last 
year's clothing. He will have difficulty in selling the latest
fashions to his customers.  Personal appearance does count in the
selling equation.

As for personal hygiene -- body odor, bad breath, dirty hair,
soiled clothes, scuffed shoes, and unkept hands are all reasons 
why a sale may be lost. Obviously, be tactful when handling
problems of personal hygiene.  An observant owner manager should
keep a watchful eye out for hygiene, problems among the staff 
and, when necessary, counsel the offending employee in private
about improving his or her appearance.  If you don't feel 
physical attributes are important, ask yourself if you would like
to buy low-calorie health foods from an overweight salesperson 
with body odor.  Sound funny?  It isn't! Your customers will
usually react unfavorably to this and similar inappropriate 
selling situations.

Word of Caution. Mental and physical attributes of salespersons 
are important. Management must continue to observe sales 
personnel in regard to the desired traits.  Either mental or
physical attributes of individuals may change over time relative 
to desired attributes. Management must be aware of this 
possibility and attempt to correct any deviations from desired
norms before problems are created.

A business can greatly enhance its probability of success by
stressing the creative selling process, giving special attention 
to the desired mental and physical attributes of a creative sales
person.  Good creative selling can provide the competitive edge.

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APPENDIX: INFORMATION RESOURCES

U.S. Small Business Administration (SBA)

The SBA offers an extensive selection of information on most
business management topics, from how to start a business to
exporting your products.

SBA has offices throughout the country. Consult the U.S. 
Government section in your telephone directory for the office
nearest you. SBA offers a number of programs and services,
including training and educational programs, counseling services,
financial programs and contract assistance. Ask about

     *     SCORE: Counselors to Americas Small Business, a 
           national organization sponsored by SBA of over 11,000
           volunteer business executives who provide free
           counseling, workshops and seminars to prospective and
           existing small business people.  Free online counseling
           and training at www.score.org. 

     *     Small Business Development Centers (SBDCs), sponsored
           by the SBA in partnership with state governments, the
           educational community and the private sector. They
           provide assistance, counseling and training to 
           prospective and existing business people.

     *     Womens Business Centers (WBCs), sponsored by the SBA  
           in partnership with local non-government organizations
           across the nation. Centers are geared specifically to 
           provide training for women in finance, management,
           marketing, procurement and the Internet.

For more information about SBA business development programs and
services call the SBA Small Business Answer Desk at 1-800-U-ASK-
SBA (827-5722) or visit our website, www.sba.gov. 

Other U.S. Government Resources

Many publications on business management and other related topics
are available from the Government Printing Office (GPO). GPO
bookstores are located in 24 major cities and are listed in the
Yellow Pages under the bookstore heading. Find a Catalog of
Government Publications at http://catalog.gpo.gov/F 

Many federal agencies offer Websites and publications of interest 
to small businesses. There is a nominal fee for some, but most 
are free. Below is a selected list of government agencies that 
provide publications and other services targeted to small 
businesses. To get their publications, contact the regional 
offices listed in the telephone directory or write to the 
addresses below:

Federal Citizen Information Center (FCIC)
Http://www.pueblo.gsa.gov 
1-800-333-4636
The CIO offers a consumer information catalog of federal
publications.

Consumer Product Safety Commission (CPSC)
Publications Request
Washington, DC 20207
http://www.cpsc.gov/cpscpub/pubs/pub_idx.html 
The CPSC offers guidelines for product safety requirements.

U.S. Department of Agriculture (USDA)
12th Street and Independence Avenue, SW
Washington, DC 20250
http://www.usda.gov 
The USDA offers publications on selling to the USDA. Publications
and programs on entrepreneurship are also available through 
county extension offices nationwide.

U.S. Department of Commerce (DOC)
Office of Business Liaison
14th Street and Constitution Avenue, NW
Washington, DC 20230
http://www.osec.doc.gov/obl/ 
DOC's Business Liaison Center provides listings of business
opportunities available in the federal government. This service
also will refer businesses to different programs and services in
the DOC and other federal agencies.

U.S. Department of Health and Human Services (HHS)
Substance Abuse and Mental Health Services Administration
1 Choke Cherry Road
Rockville, MD 20857
http://www.workplace.samhsa.gov 
Helpline: 1-800-workplace. Provides information on Employee
Assistance Programs Drug, Alcohol and other Substance Abuse.

U.S. Department of Labor (DOL)
Employment Standards Administration
200 Constitution Avenue, NW
Washington, DC 20210
The DOL offers publications on compliance with labor laws.

U.S. Department of Treasury
Internal Revenue Service (IRS)
1500 Pennsylvania Avenue NW
Washington DC 20230
http://www.irs.gov/business/index.html 
The IRS offers information on tax requirements for small
businesses.

U.S. Environmental Protection Agency (EPA)
Small Business Ombudsman
1200 Pennsylvania Avenue NW
Washington, DC 20480
http://epa.gov/sbo
Hotline: 1-800-368-5888
The EPA offers more than 100 publications designed to help small
businesses understand how they can comply with EPA regulations.

U.S. Food and Drug Administration (FDA)
5600 Fishers Lane
Rockville MD 20857-0001
http://www.fda.gov
Hotline: 1-888-463-6332
The FDA offers information on packaging and labeling requirements
for food and food-related products.

For More Information

A librarian can help you locate the specific information you need
in reference books. Most libraries have a variety of directories,
indexes and encyclopedias that cover many business topics. They
also have other resources, such as

     *     Trade association information
           Ask the librarian to show you a directory of trade
           associations. Associations provide a valuable network
           of resources to their members through publications 
           and services such as newsletters, conferences and
           seminars.

     *     Books
           Many guidebooks, textbooks and manuals on small
           business are published annually. To find the names of
           books not in your local library check Books In Print,
           a directory of books currently available from
           publishers.

     *     Magazine and newspaper articles
           Business and professional magazines provide 
           information that is more current than that found in
           books and textbooks. There are a number of indexes to
           help you find specific articles in periodicals.

      *    Internet Search Engines

In addition to books and magazines, many libraries offer free
workshops, free access to computers and the Internet, lend skill-building tapes and have catalogues and brochures describing continuing education opportunities.
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