Product and company knowledge are important because they help reduce any risk that is present in the buyer’s mind about product purchases and decisions. A mental risk barrier exists between every sales professional and potential buyer and with every product as stated below:
A certain amount of risk exists in the buyer’s mind with every product purchase and decision.
A certain amount of risk is involved in buying every new product. Of course, the risk is small for a thirty-cent candy bar. If you purchase a candy bar that is old or not too fresh, you don’t spend much time reflecting on the poor product purchase. But, as the product increases in value or price, more risk becomes attached to the purchase decision. Items like cars, homes, and other expensive products require much time and information before finally being purchased by the customer. Because of this risk barrier that exists in every sale, it is important for the sales professional to acquire sufficient knowledge to help lead the people to buy and to handle any questions or concerns that may arise in the sales presentation. By knowing the product and industry in depth, a sales professional can work out the fears and answer the questions that are expressed by the customer.
A good background in product knowledge is very helpful in handling price and credibility questions that tend to increase the mental risk barrier. This barrier becomes thinner as the sales professional increases his product knowledge. As the sales professional gains experience and product knowledge, he can handle all concerns of the buyer during his presentation.
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The mental risk barrier becomes thinner as the sales professional increases his product knowledge.