MARKET2 Cuenca, Julia S. Gan, Camille Nieveras, Drew Pan, Camille G.

Raghani, Geetangly Ulit, Janna Uy, Blanche Y. CASE 9.1 Cascade Soap Company Mike Bowers sells soap products to grocery wholesalers and large retail grocery chains. The following presentation occurred during a call he made on Bill Reese, the soap buyer for a grocery store. Salesperson: Bill, you have stated several times that the types of promotions or brands that really turn you on are ones that carry the best profit. Is that right? Customer: Yes, it is. I'm under pressure to increase my profit-per-square-foot in my department. Salesperson: Bill, I recommend that you begin carrying the king size of Cascade. Let's review the benefits and economics of this proposal. King-size Cascade would cost you 86.8 a box. The average resale in this market is 99. That means that you would make 12.2 every time you sell a box of king-size Cascade. Based on my estimated volume for your store of $40,000 per week, you would sell approximately two cases of king-size Cascade per week. That is $19.80 in new sales and $2.44 in new profits per week for your store. As you can see, the addition of Cascade 10 to your automatic dishwashing detergent department will increase your sales and, even more importantly, increase your profitsand this is what you said you wanted to do, right? Customer: Yes, I am interested in increasing profits. Salesperson: Do you want me to give this information to the head stock clerk so that she can make arrangements to put Cascade 10s on the shelf? Or would you like me to put it on the shelf on my next call? Questions 1.What sales presentation method was Mike using? Mike used the formula approach sales presentation. Since he already know something about the prospective buyer. With this, the seller will be using a less structured form of presentation. 2. Evaluate Mikes handling of this situation

Mike handled the situation with regards to the interest of the buyer. He gave consideration to what the buyer needs and then started to incorporate the profit that the product can give the buyer. Since the buyer is mainly interested in having a higher profit, the buyer is now interested in Mikes product which is why the deal was closed after. CASE 9.2 A Retail Sales Presentation A customer is looking at a display of Cross gold pens and pencils. Customer: I'm looking for a graduation gift for my brother, but I'm not necessarily looking for a pen and pencil set. Salesperson: Is your brother graduating from college or high school? Customer: He is graduating from college this spring. Salesperson: I can show you quite a few items that would be appropriate gifts. Let's start by taking a look at this elegant Cross pen and pencil set. Don't they look impressive? Customer: They look too expensive. Besides, a pen and pencil set doesn't seem like an appropriate gift for a college graduate. Salesperson: You're right, a Cross pen and pencil set does look expensive. Just imagine how impressed your brother will be when he opens your gift package and finds these beautiful writing instruments. Even though Cross pen and pencil sets look expensive, they are actually quite reasonably priced, considering the total value you are getting. Customer: How much does this set cost? Salesperson: You can buy a Cross pen and pencil set for anywhere from $15 to $300. The one I am showing you is gold-plated and costs only $28. For this modest amount you can purchase a gift for your brother that will be attractive, useful, last a lifetime, and will show him that you truly think he is deserving of the very best. Don't you think that is what a graduation gift should be? Customer: You make it sound pretty good, but frankly I hadn't intended to spend that much money. Salesperson: Naturally, I can show you something else. However, before I do that, pick up this Cross pen and write your name on this pad of paper. Notice that in addition to good looks, Cross pens offer good writing. Cross is widely acclaimed as one of the best ball-point pens on the market. It is nicely balanced, has a point that allows the ink to flow on the paper smoothly, and rides over the paper with ease.

Customer: You're right, the pen writes really well. Salesperson: Each time your brother writes with this pen, he will remember that you gave him this fine writing instrument for graduation. In addition, Cross offers prestige. Many customers tell us that Cross is one of the few pens they have used that is so outstanding that people often comment on it by brand name. Your brother will enjoy having others notice the pen he uses is high in quality. Customer: You're right. I do tend to notice when someone is using a Cross pen. Salesperson: You can't go wrong with a Cross pen and pencil set for a gift. Shall I wrap it for you? Customer: It's a hard decision. Salesperson: Your brother will be very happy with this gift. Customer: Okay. Go ahead and wrap it for me. Salesperson: Fine. Would you like me to wrap up another set for you to give yourself? Customer: No, one is enough. Maybe someone will buy one for me someday. Questions 1. Describe the selling techniques being used by the retail salesperson. The salesperson here used a memorized sales presentation wherein he assumed that either the buyers needs can be stimulated by direct exposure to the product or the needs are already stimulated because the customer has already started to look for it. In this case, the salesperson discussed his product most of the time and that the participation time of the customer is lesser. 2. Evaluate the salesperson's handling of this situation. The salesperson handled the situation by discussing his product naming the benefits, advantages and features of the product, but when the customer denied at first, the salesperson let the customer write using the pen which stimulated his need for it. Then, it resulted to a purchase of the product the salesperson is selling. CASE 9.3 Negotiating with a Friend Barney wants to buy a car. He spotted a high-quality used car on a dealer's lot over the weekend. He would buy it immediately if he had more cash. The dealer will give him

only $1,200 on a trade for his current automobile. The car Barney wants is really great, and chances are good it will be sold in short order. Barney has planned carefully and decided he can swing the deal if he can sell his present vehicle to a private party for around $2,000. This would give him $1,500 for a down payment and $500 for accessories he wishes to add. The car is in good condition except for a couple of minor dents in the fender. The snow tires for his current car won't fit the new one but can probably be sold; that will help. Barney can remove the new stereo system he installed last month and place it in the new car. Billie, one of Barney's co-workers, heard that Barney wants to sell his car and plans to talk to him about it. Her daughter is graduating from college in three months and will need a car to drive to work. Billie can only afford about $1,800 including any repairs that might be required, and she needs to reserve enough money for snow tires. Her daughter has seen the car and thinks it's sporty, especially with the stereo. Billie checked the blue book price for the model of Barney's car, and she knows the average wholesale price is $1,200 and the average retail price is $1,950.13 Questions 1. What are Barney's objectives? to buy a car to sell his current automobile at $2000 (1500 as downpayment and 500 for the accessories) 2. What are Billie's objectives? to negotiate with with Barney with regards to the car that he is planning to give her daughter 3. What are likely to be the points of conflict? Disagreement in the amount both parties are willing to give and accept 4. What power does Barney have? He has the power over his current automobile. He can change his mind to not buying the new car and instead stay with his current car and just give further enhancements and improvements to the car. 5. What power does Billie have? She has the power, which can let Barney buy the automobile he is eyeing since she offers an amount which can already help Barney pay for the downpayment and a few more for the accessories. 6. How important is time to Barney? The automobile can be sold to another person in no time. As stated in the case, the car can be sold to another person very quickly which is why time is important for him. 7. How important is time to Billie? Time is important to Billie as well since she has to talk immediately to Barney regarding her offer so that Barney wouldnt be selling the car to other party. 8. What are some possible points of compromise?

They can meet halfway by having Billie raise her offer, while Barney decreases the amount he is asking from Billie