One statistics which has remained

unchangeable is this: 80% of a company’s

products or services are sold by 20% of its
salesmen. Or conversely, 20% of the
salesmen sell 80% of the firm’s output in
goods or services (Fisher, 1971).
This low level of performance among the
salesmen has been the concern of all
companies. Among the reasons identified
for their failure to measure up to the
standard of an effective salesman are the
lack of confidence and enthusiasm.
 A thorough knowledge of consumer behavior
and characteristics is as essential to a salesman as
thorough knowledge of factual information about
his company, its products, and its competitions to
represent his company, effectively.
Since the salesman’s primary job is to secure
orders from the customers, anything that enhances
his ability to perform his task should be given full
attention. The knowledge that the salesman
acquires helps him, supply the customers with the
appropriate facts, meet competitor’s claims,
develop a reputation and earn the confidence of
the customers.
 With the rapid advancement of technology, there
are many products flooding the market place that
most of the customers have no knowledge of. They
need the help of the salesman.
A salesman’s incorrect statement or information
may injure the company’s name and certainly will be
less respected by the customers. Even the inability
to supply one fact may impair the salesman’s
chances of making a sale.
 If the salesman is unable to explain
the merits or construction of the
products, or if he is unable to quote
company policy accurately, there is
always a competing salesman who is
eager and willing to supply another
product and to give the buyer all facts
pertaining to it.
 If the salesman cannot show that it is
to the buyer’s advantage to use his
company’s products or services, then the
buyer is likely to turn down his offer. The
salesman who has prepared himself with
knowledge of his company, its products
and competition does not fear
competition.
 Most of the present day customers ask many
questions about so many things before making their
purchases from company product to competition,
even the future of the company. If the salesman
cannot provide accurate information about what his
customer is asking for, he loses the confidence of
the customer. There is really nothing more important
for the salesman than to equip himself with
knowledge about the company.
 There is an old adage that says,
“Knowledge is Power”. This truism still holds
true today, not only in the field of selling but
practically in all aspects of human endeavor.
As discussed earlier, the knowledge of the
company, its product and its competition
develops reputation for the company,
develops enthusiasm among salesmen, and
a feeling of self-confidence.
The company expects the salesman to:

1. To make money
2. To work conscientiously
3. To be loyal
1. To treat them ethically
2. To help them
3. To adjust to customer complaints
 The major types of complaints can be
classified as dissatisfaction with merchandise,
with salespeople and with store policy.

• 1. Handling complaints about merchandise

• 2. Handling complaints about salespersons
• 3. Handling complaints about store policy
 A salesman should know the growth and
development of the company; its origin, when
founded, philosophy of management, among others.
A salesman who grew with the company saw the
picture of the physical planting of the small, young
venture, its financial condition, personnel, its first
products, etc. If the salesman has witnessed the
progress, growth and development, he develops in
himself that self pride of being connected with the
company. Specifically, a salesman should know the
following aspects of the company.
1. history of the 6. management
company policies
2. executive personnel 7. distribution methods
3. personnel and labor 8. organization
relations 9. research and
4. plants and branches investigations
5. financial status 10. competitive
position
1. product line
2. price
3. selling features
4. knowledge of competition
 Competition is inevitable in the
market place. This phenomenon is
recognized by those who sell and as such
has accepted it with open mind. How much
information about competition should a
salesman have? Actually, a salesman must
know as much about competition as he
knows about his own product and company.
 Proper attitude toward competition - As
mentioned earlier, products and services as
usually bought only after the customer has gone
through a process of elimination. When comparing
the company product with a competitor’s, the
salesman should paint a positive picture.. His
emphasis should be placed in presenting
information in the superior points or features of his
products or service rather than on the negative
aspects of the competitor’s product or services. A
salesman who keeps on discrediting a competitor,
who happens to be a regular supplier of products
to his prospect, will not succeed in making a sale.
 Competitive advantage grows out of
value a firm is able to create for its buyers
that exceeds the firm’s cost of creating it.
Value is what customers are willing to pay,
and superior value stems from offering
lower prices than competitors for equivalent
benefits or providing unique benefits that
more than offset a higher price. There are
two basic types of competitive advantage:
Cost leadership and differentiation.
What to Know About Competition

A salesman should bear in mind that

product competition clusters around two
basic points, product comparison and
selling activities.
• Product comparison

The first essential thing a salesman should

know is how his product stands up against
competing products. He should learn all the
strong and weak points about competitive
brands and makers. He continuously collects
all the facts he can, makes a list of every
strong point, every user-benefit, advantage
the product provides, and makes a second list
of its limitations.
• Selling activities

The salesman should know his competitors and

their style of presentations. To understand fully
competitive selling activities is to know first who the
competing salesmen or representatives are. Personal
facts about the man who represents a competitor
might include his demographic profile, his interest and
taste, his social circles. The business facts about the
competing salesman might include the length of time
he has been with the company, what his previous
experiences are his present position in the company,
how long he has been handling the product, how he
has been in his present territory and how he is paid.
Since competition is, at best, a difficult matter,
here are some mistakes which should be
avoided:

1. Do not include any reference to competition in your

sales presentation.
2. Never start the subject of competition.
3. Do not be carried away from your primary task to
explain your product.
4. Never make a statement about your competitor
before checking its accuracy.
5. Do not welcome gossip.
6. Never criticize a competitor.
How the Salesman Uses His Information

Knowledge alone is insufficient to

guarantee the success of any salesman.
While knowledge is essential, the intelligent
and skillful use of the knowledge which has
been acquired differentiates the average
from the superior salesman.
1. Organize the information
2. Use facts buyers wants or needs
3. Show how facts benefit the customer
4. Use the language of the trade
5. Be specific
6. Use positive comparison