1.

Discuss the seven (7) stages of the sales knowledge

process. (14)

1. The necessary knowledge has to be determined: ()

Amount and type will depend on the organisation, customer,
price, industry, etc. The goals of the organisation and
salesperson have to be evaluated to make it easier to seek
out specific information. ()

2. Determine the knowledge available: ()

Knowledge about the organisation can be obtained internally
through manuals and records. External data can be gathered
from outside sources like trade/industry journals, customers
and any other outside data available. ()

3. Identifying the knowledge gap: ()

The difference between the available knowledge and the
knowledge the customer requires from the salesperson. Only
the required information should be gathered. ()

4. The development of sales knowledge: ()

This requires gathering information on a primary level by
doing research on the industry or customers, asking
customers what they think about the product or service, or
by using the Internet and electronic communication. ()

5. The sharing of knowledge: ()

It’s important to transfer information between different people
involved in the sales process. Salespeople can talk to sales
people in their organisation and different departments like
the research & development department, production
department, etc. ()
 6. Knowledge utilisation: ()
The knowledge they gathered/collected must be applied and
made part of the competitive selling points in the solving of
customers’ problems. This can provide the salesperson with
a competitive advantage in the market place. ()

7. Evaluation of the sales knowledge: ()

The quality and usefulness of the knowledge should be
checked on a regular basis by checking whether the
customer is still satisfied, doing research on whether the
knowledge gained is used and by benchmarking the
knowledge against other organisations and salespeople. ()

2. List and discuss the four (4) sources of information that can
be used to obtain sales knowledge. (12)
 Sales Training: ()
Should be done on a continuous basis and must include
information like:
* the salesperson’s function/purpose in the organization,
* history and future plans of the organization
* the organisation’s current financial situation
* staff benefits ()

Specialised training includes things such as:

* the organization’s policies and procedures in selling
* credit and discounts
* how products are ordered
* basic computer skills
* information about new or modified products
 * advertising efforts ()

 Written material about products: ()

Product manuals are one of the most useful things to study
since it has all the product specifications and uses, and can
help identify the features, advantages and benefits (FAB) of
the product. ()
Industry journals can be used in the sales presentation as
proof of the quality or effectiveness of the products. ()

 Talking to people: ()

- Inside the organisation - other salespeople, the production
managers and development team can give first-hand
knowledge of the product and how it is developed. Other
salespeople can tell you what does and what does not
work in the sales situation. ()

- Outside the organisation - asking customers specific

information about the product, such as their likes and
dislikes, will provide the information needed to sell more
effectively ()

 Formal training: ()

At universities, professional bodies and training
organisations can provide additional training in certain fields
like engineering, production or manufacturing processes that
might not be covered by in-house sales training. ()
 This is done because of the speed at which technology is
changing and for financial benefits such as tax and SETA
rebates. ()

3. List and discus the ten (10) main areas/aspects of sales

knowledge (20)

 Knowing your Organisation: ()

The salesperson is the link between the customer and the
organisation, so they need to know specific information
about their organisation, and must also know what is
happening internally since this will influence the customer
directly or indirectly. ()

 Knowing your Customer ()

Obtaining information on customers is one of the most
difficult things to do. It is important that salespeople to find
out who makes the buying decisions, and this is why they
must set up a profile of the prospective customer. ()

 Knowing your Product ()

You must have confidence in what you are selling. Gain
confidence by getting all information about product to be
able to answer questions that prospects may have.
Features, Advantages and Benefits of product or service ()

 Knowing your Communication Mix ()

Other methods of promotion can have an influence on the
sales of the product. The elements in the communication mix
are often combined to improve selling efforts. Advertising
 and sales promotion creates demand for a product, making it
easier for salespeople to sell it to retailers and wholesalers.
()

 Knowing your Price and Discount ()

Salespeople must know prices and discounts to gain a
competitive advantage. Different methods can be used to
set prices. Organisations differ in their procedures and
policies of pricing, discounts, allowances, etc.
Discounts are given to tempt the prospect to buy. ()

 Knowing your Competitors ()

Knowing strengths and weaknesses of competitors can help
salespeople position their product in the market. They can
compare their products to competitors if the prospect is
curious about the specific differences. ()

 Knowing your Distribution Channels ()

Salespeople must find out how each channel member deals
with salespeople and find out their likes, dislikes, appropriate
delivery times and each prospect’s policies on how products
are delivered to them. ()

 Knowing the Economy and the Industry ()

It takes time and incentive/motivation to gain knowledge
about the newest trends which can help identify new
prospects, improve customer satisfaction and project a
professional image. Trade journals, magazines, experts, tv,
radio and newspapers can be used. ()
  Knowing about Technology ()
How to use personal computers, laptops, the internet, cell
phones, email, software programs, etc. must form part of
sales training. Technology helps salespeople manage their
time and their contact with their organisation, prospects and
customers. ()

 Knowing Yourself ()

Salespeople must stay ahead and perform well by acquiring
knowledge about how to motivate, educate and improve
themselves. They must apply the 7 principles of self-
knowledge to improve their career. ()

I. Discuss knowing your organization as a main aspect of

sales knowledge? (***)

The salesperson is the link between the customer and the

organisation, so they need to know specific information
about their organisation, and must also know what is
happening internally since this will influence the customer
directly or indirectly.

i. List and discuss the five (5) types of organisational

knowledge you will need to be an effective/
professional salesperson? (10)
  Organisational procedures and policies ()
The organisation’s way of doing business, includes credit
policies, delivery policies, order taking and pricing methods
and the type of discounts. ()

 Organisation. ()
Management structure, history, future plans, financial
standing and the size and position in the industry. Talking
about the organisation’s achievements and growth will
improve the chances of prospects buying, and also help them
evaluate the product and reliability of the organisation. ()

 Production of the product ()

Salespeople should know each step in the production
process so they can tell the prospect exactly how the product
is made, and whether it can be modified/ customised
according to their requirements. ()

 Service facilities ()

What services are available to the customer after
purchasing? Tell customers if the organisation has an after
sales service department or if after sales training is available
to their employees. Tell customers how the after sales
service works and how they can make use of it. ()

 Promotional programs ()

The salesperson must be aware of all the other promotional
activities (Advertising, Sales promotion, Public Relations,
etc.) inside the organisation to be able to use them effectively
when selling the product. ()

II. Discuss knowing your customer as a main aspect of

sales knowledge? (***)
 Obtaining information on customers is one of the most
difficult things to do. It is important that salespeople to find
out who makes the buying decisions, and this is why they
must set up a profile of the prospective customer. ()

i. List the types of customer information a

professional salesperson has to collect?
(6)
Contact details of the customer ()
Type of customer ()
Reselling of product ()
Amount that the customer buys ()
Organisation policies and procedures ()
The customer’s past and future ()

OR

ii. Discuss the types of customer information a

professional salesperson has to collect? (12)

III. Discuss knowing your product as a main aspect of sales

knowledge? (***)
 You must have confidence in what you are selling. Gain
confidence by getting all information about product to be
able to answer questions that prospects may have.
Features, Advantages and Benefits of product or service.

i. List the types of product knowledge you will need

as a professional salesperson? (4)
 Know the features advantages and benefits of the
product so that you can differentiate your product from
the competitors. ()
 Know the performance data of the product, how it
operates and all the accessories that might be sold with
the product. ()
 Know the physical characteristics and size of the
product which includes basic information such as the
available colours and different sizes it comes in. ()
 Know how the product is selling in the marketplace. So
customers will know if they will be able to sell the
product to their own customers. ()

ii. List and discuss the ways in which evidence

about features and benefits of a product can be
given? (12)
 Expertise: ()
Refer to the opinion of an expert on the product, or attend
courses to qualify as an expert yourself. ()
 Numerical data: ()
 It can be used to prove the effectiveness of your product. Keep
up to date with the newest developments. ()
 Test: ()
If possible, test your product to find out how it works for you.
()
 Guarantee: ()
If a guarantee is given, it could be an indication of quality.
Discuss the guarantee in detail with the prospect.
 Case histories: ()
Show to the prospect how other organizations have used and
benefited from the product, to show how it can be useful to
them. ()
 Testimonials: ()
Give the prospect proof from other customers who have used
the product. The customer will be able to contact them to find
out if the product really works that well. ()

IV. Discuss knowing your communication mix as a main

aspect of sales knowledge? (***)

Other methods of promotion can have an influence on the

sales of the product. The elements in the communication mix
are often combined to improve selling efforts. Advertising
and sales promotion creates demand for a product, making it
easier for salespeople to sell it to retailers and wholesalers.
 i. Discuss the seven (7) elements of the
communication mix. (14)
Advertising: () any paid for, non personal
communication about a product or service. ()
Direct marketing: () occurs when the
organisation communicates directly with the
customer to get a response. ()
The internet: () is used for direct interactive
communication with the customer. ()
Sales promotion: () is marketing activities that
provide extra incentives to the sales force, the
distribution or the consumer, its aim being to
stimulate immediate response. ()
Publicity: () is non personal information about
the organisation, although the organisation will
probably spend money on it and it is carried out
by an identifiable sponsor. ()
Public relations: () is aimed at changing
customer attitude, and garnering understanding
and acceptance from the public. ()
Personal selling: () face-face selling to inform or
persuade the customer to purchase the product
or service. ()

V. Discuss knowing your price and discount as a main

aspect of sales knowledge? (***)
Salespeople must know prices and discounts to gain a
competitive advantage. Different methods can be used to
set prices. Organisations differ in their procedures and
policies of pricing, discounts, allowances, etc.
Discounts are given to tempt the prospect to buy.

i. Discuss the types of discounts that can be used

by the organization? (10)

1. Cash discounts ()

A deduction in price if customer pays in cash or
within a certain time period (usually 30 days) ()

2. Quantity discounts ()

When customer buys in large volumes. For a
certain amount they get a discount ()

3. Functional discounts ()

Given to channel members in return for services
such as selling or storing the products ()

4. Seasonal discounts ()

Given at certain times of the year when demand
for a product is low. ()

5. Allowances ()
If customer returns an old version of the product
to get a new one, they get some money back. ()
VI. Discuss knowing your competitors as a main aspect of
sales knowledge? (***)
Knowing strengths and weaknesses of competitors can help
salespeople position their product in the market. They can
compare their products to competitors if the prospect is
curious about the specific differences.

i. List the guidelines that can be used in dealing

with competitors in a sales presentation? (3)
 Never refer to or talk about the competition in your
sales presentation. This will only place focus on
your competitors. ()
 Don’t discuss the competition unless you have
accurate details. Incorrect claims can harm your
credibility. ()
 Don’t criticise the competition. If you get emotional
the customer might become suspicious. ()

VII. Discuss knowing your distribution channels as a main

aspect of sales knowledge? (2 or 3)

Salespeople must find out how each channel member deals

with salespeople and find out their likes, dislikes, appropriate
delivery times and each prospect’s policies on how products
are delivered to them.
VIII. Discuss knowing the economy and industry as a main
aspect of sales knowledge? (2 or 3)

It takes time and incentive/motivation to gain knowledge

about the newest trends which can help identify new
prospects, improve customer satisfaction and project a
professional image. Trade journals, magazines, experts, tv,
radio and newspapers can be used.

IX. Discuss knowledge about technology as a main aspect

of sales knowledge? (2 or 3)

How to use personal computers, laptops, the internet, cell

phones, email, software programs, etc. must form part of
sales training. Technology helps salespeople manage their
time and their contact with their organisation, prospects and
customers.

X. Discuss knowing yourself as a main aspect of sales

knowledge? (***)

Sales is the lifeblood of any organisation, so salespeople

must stay ahead and perform well by acquiring knowledge
about how to motivate, educate and improve themselves.
They must apply the 7 principles of self-knowledge to
improve their career.
i. Discuss the seven (7) principals of self-
knowledge? (14)
 For your sales knowledge to improve you need to
improve. ():
Salespeople will have to make sure that they grow
in their jobs and constantly acquire sales
knowledge. It is advisable to take courses to
improve your overall knowledge. ()

 It does not matter what your past sales experience

is, all that matters is your future sales. ():
Salespeople tend to become discourage if moved
from one organisation or industry to another or
when they had a few unsuccessful sales pitches.
They should never let past experiences influence
future sales. ()

 There is no failure only feedback. ():

A good place to gain sales knowledge is in
unsuccessful sales calls. Salespeople should study
unsuccessful sales calls to see where there is room
for improvement and how to prevent making the
same mistakes again. ()

 You are only as free as your options. ():

Good salespeople get knowledge from other
sources to get a broader view of the product they
are selling and how it fits into the marketplace.
Knowledge leads to confidence; which will lead to
trust between the salesperson and the consumer.
()
  In every “unsuccessful” sale there is a greater or
equal benefit. ():
The salesperson will receive the benefit of knowing
what still need to be learned if they fail in a sale. ()

 You can learn anything you need to learn to get

what you want. ():
In any industry there are salespeople that have
succeeded before and it is possible for you. Sales
knowledge is available in books or you can ask
other salespeople in your industry for advice. ()

 Your mind creates the limits to your sales. ():

If there is one place that salespeople must build
self-knowledge, it is running their own minds. If the
salesperson has no control over their thinking, they
will allow their outside environment to run it for
them. They must ask themselves: What would my
sales be like if my mind was full of courage,
determination, flexibility and confidence. ()

4. Discuss the SEAHORSE technique to aid in remembering

what you know?

 Senses are the first important things that sales people must
use to remember information. To make information that is
boring more interesting the salesperson must be fully involved
in the learning process. ()
 Exaggeration of the product’s functions will make it easy to
remember what the functions are. ()
 Action. The salesperson should try and imagine how the
product works or that they are in a sales situation
demonstrating it to the client. ()
 Humour. Do not take the learning process too seriously. That
will make you tense and limit your capability to take in
information. ()
 Order your information so as not to mix up different ideas or
concepts. In many cases a salesperson will have to sell
products that are closely related. Keep your facts in order and
do not to mix them up. ()
 Rehearse the different ways that you can demonstrate the
product and how you will use the information in your sales
presentation. ()
 Specify the advantages, features and benefits of your product.
If the salesperson only remembers the main points of these
three aspects, it will already limit the amount of information that
they need to be remembered. ()
 Enjoy the process of gaining sales knowledge and know that
what you have learnt will enable you to become a better sales
person. ()