Chapter 11
Sales Management (and Personal Selling)

*   Sales manager

*   Sales training

*   Sales meetings

*   Caravans

*   Contests and incentives

*   Personal selling

Sales Manager

*   Producing

*   Advantages

*   Confidence in the manager knowing the business

*   Can attract a better manager

*   Disadvantages

*   Time available to monitor other associates

*   Jealousy

*   Non-producing

Sales Training

*   In-house

*   Sales techniques

*   Listing techniques

*   Telephone techniques

*   Negotiation techniques

*   Concurrent upgrading of skills and new knowledge

*   Seminars and schools

*   Costs

Sales Meetings

*   Function

*   Community building of associates

Contests and Incentives

*   Competition against other individuals

*   Competition against other groups

*   Teams within office

*   Competition against self

*   Prospect management

*   Personnel activity reports

Marketing Management

Prospecting for Listings

*   Farming

*   Techniques

*   Size of farm

*   Networking

*   Church affiliations

*   Civic club affiliations

*   School affiliations

*   FSBO's (For Sale By Owner)

*   Expired listings

*   "Free" market analysis

Listing Management Procedures

*   Documentation

*   Data Entry

*   Home warranty

*   Follow-up on unsuccessful listing presentations

*   By listing agent

*   By broker

Servicing

*   Advertising

*   Construction of advertizing

*   Sharing ad and informing owner of the cost

*   Sign

*   Open houses

*   Satisfy owner

*   Good source of prospects

*   Usually not too successful in selling the property

*   Allowing cooperating brokers to show the property

*   Key policy

*   Insuring security

*   Property showing follow-up

*   Ask for attractive aspects of property

*   Ask for negatives

Essentials of Communication

*   It must be heard.

*   Speaking clearly and loud enough

*   It must be understood

*   Speaking slow enough

*   Using slang regional terms. (pop, lift)

*   Using jargon

*   Using proper grammar

*   It must be accepted

*   The other party must want to hear what you are saying

*   Agreement is not necessary

*   It must be acted upon (dialogue)

Bad Listening Habits

*   Faking attention

*   Listening to only the facts and not the feelings.

*   Avoid difficult listening (too tired, bladder timeouts)

*   Failing to listen to uninteresting conversation

*   Failing to listen because of prejudices about the person's appearance, age, or delivery

*   Failing to listen because of distractions

*   Traffic

*   Animals

*   Children

*   TV, radio

Good Listening

*   Talking to avoid listening

*   Place your prospect at ease

*   Act interested

*   Control environment--avoid distractions

*   Be patient with the speaker

*   Ask revealing questions

*   Avoid argument and criticism

*   Learn to be an active listener--listen to the feeling behind the communication

*   Try to discover the hidden agendas

Modes of Interpersonal Communication

*   Verbal

*   Nonverbal

Joharry Window

Evidence of Effective Communication

*   Nonverbal

*   Eye contact

*   Body position

*   Verbal--Defenses suggest problems

*   Defenses that protect personal standards and values

*   Defenses against control by others

*   Defenses against being manipulated or tricked

*   Buyer defenses against the clinical, coldly detached salesperson.

*   Defenses against superior "experts"

*   Defenses against dogmatic persons

Voice Patterns

*   Voice pitch, resonance, volume, rate, and rhythm

*   Laughing, coughing, throat clearing, and sighing

*   Momentary variations in voice pitch and volume

*   Interrupters

*   Silent pauses

*   Extraneous speech habits--"ahs", "ers", "ums"

Questioning Techniques

MACK Principles

*   Make questions brief

*   Avoid yes and no answers

*   Confine questions to single topic

*   Keep to simple words

Types of Questions:
Open Questions

*   Do you need to move from your present apartment?

*   What do you like about your present apartment?

*   What do you look for in a neighborhood?

Probing Questions

*   What advantages to you appreciate in your present location?

*   What features did you like most in that home?

*   Do you have any hobbies which might influence your housing choice?

Mirror Questions (Reflective)

*   Leading questions

*   Isn't it true ...?

*   ..., haven't you?

*   ..., don't you?

Common Objections

*   The payments are too high.

*   Look at equity build-up

*   Look at after-tax costs.

*   A newer property is better than an older one.

*   Lower out of pocket expenses. (Basic landscaping already done)

*   Mature landscaping

*   Mature neighborhood

Common Objections (Continued)

*   The moving costs are too high.

*   Offer moving allowance

*   Cost to business of not moving

*   The house is too far from the job.

*   Examine the extra time per day.

*   Examine the benefits--recreation, less crime.

*   Show best route to work.

Closing the Sale

Reasons for Failure to Close

*   Personal lack of confidence

*   Personal guilt feelings

*   Poor selling tactics

Clues indicating Closing the Sale May be Appropriate

*   Non-verbal clues

*   Frequent eye contact between parties making the decision (husband and wife)

*   Facial expressions indicating approval

*   Physical clues

*   Prospects asking to return to a property

*   Prospects returning to key rooms

*   Prospects undergoing detailed inspection

Verbal Indications

*   "We always wanted ..."

*   "This is really a great ..."

*   "I really like the floor plan."

*   "What would the payment be?"

*   "When could we move in?"

*   "Our ___________ would go well here."

*   "What are the neighbors like?"

*   "Do the neighbors have any children?"

*   "How far is the school?"

Closing Techniques

*   Trial closings--"Shall we draw up the contract?"

*   The assumptive close

*   "Would you like to ask for possession by the 15th of next month?"

*   "Would you like to include the draperies in the contract?"

*   "If the seller would be willing to take a second mortgage for $_______, would you be willing to put down $_______?

Closing Techniques
Summarizing Advantages

*   Summarizing in logical sequence order of presentation--schools, neighborhood, lot, construction, rooms, etc.

*   Summarizing the points of common agreement--work from the most certain to the least certain.

*   Finish with asking for the earnest money amount.

Closing Techniques (Continued)

*   The direct close--"This is the property for you. Tell me what you want to include in the contract."

*   The balance sheet approach (Ben Franklin approach)

*   List the advantages on one side, the disadvantages on the other.

*   "On balance, the advantages seem to outweigh the disadvantages. This seems to be good, don't you think?"

Closing Techniques (Continued)

*   Closing on a single objection--"If we could solve this problem, would you be ready to buy?"

*   Closing on minor details--keep the prospect answering "yes"

*   Scare technique

Postponing the Close

*   Reading too much nervousness

*   Don't allow too much time to pass (avoid waiting more than one day.)

Types of Advertising

*   Firm

*   Property

Goals of Company Advertising

*   Creating a positive community service image of the firm

*   Creating an image which the community identifies with achieving positive results

*   Creating an image of the firm which positively separates the firm from its competition.

*   To identify the firms business activities

Goals of Property Advertising

*   To attract interest in the property

*   To attract interest in the firm

*   To attract interest of prospective purchasers

*   To attract interest in prospective sellers

*   To satisfy the property owner

General Rules for Advertising

*   Make adds positive; avoid negatives and stereotyped phrases

*   Emphasize the leading amenities or benefits

*   Be truthful in your adds

*   Use adequate descriptions

*   Make it easy to respond to the ad

*   Keep records

Advertising the Company

*   Company name

*   Logo

*   Business cards, stationary, contracts, and forms

*   Welcome wagon

*   Career nights

Media Advertising

*   Radio

*   Talk show radio

*   Television

*   Real estate columns in the local newspaper

Printed Advertising

*   Mail

*   Invitations to list ("free market analysis")

*   Invitations to buy--apartment buildings

*   Flyers

*   Neighborhood newsletter

*   Magazine

*   Newspaper

Signs

*   Outdoor

*   Billboards

*   Taxi signs

*   Bus signs

*   Blimps

*   Airplane signs

*   Airport signs

Give-a-ways

*   Pens and pencils

*   Pads

*   Key chains

*   Door knockers

*   Local maps

*   Garage sale signs

Sponsorships

*   Public radio and TV

*   Little league

*   Bowling

*   Community events

Property Advertising

*   Point of sale sign

*   Mail

*   Flyers

*   In neighborhood

*   In targeted buyer populations

*   Neighborhood employer parking lots

*   Neighborhood shopping centers

*   Neighborhood recreation centers

Newspaper

*   Regular classified

*   Classified display

*   Most effective adds contain:

*   Location of property (at least neighborhood)

*   Number of rooms (especially bedrooms)

*   Price and terms

*   Housing design

*   Age of house

*   Present condition of house

*   How the house is heated and cooled.

Parts of the Ad

*   The heading--attention getter; should focus upon consumer benefits.

*   The body of the ad

*   Provide as much information as possible

*   Avoid too much abbreviation

*   Should support headline

*   The closing--firms name, agents name, and telephone

*   Use of white space

Media Advertising

*   Television

*   Radio

*   Public

*   Private point of sale (Some firms use low power AM or FM radio stations placed on the property to promote the property's features. A sign on the street instructs those who are interested to tune their radio to a specified frequency.)

Advertising Budgets

*   Some firms allocate a fixed percentage of sales (5-10%)

*   Advertising policy

*   Advanced planning and capital budgeting

*   Record keeping

*   Coordination of adds

*   Allocating the advertising dollar