Bmgt 204 chapter_3


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Bmgt 204 chapter_3

  1. 1. BMGT 204: Sales Strategies and Techniques Chapter 3: The Psychology of Selling: Why People Buy
  2. 2. Why did you buy Point Park University?
  3. 3. The Golden Rule: Benefits • Communication Skills • Ability to unselfishly help a person make the correct buying decision
  4. 4. Exhibit 3.1: Why People Buy–
 The Black Box Approach • Internalization process is referred to as a 
 black box • • We cannot see into the buyer’s mind Stimulus-response model Sales Presentation Sale/No Sale Buyer’s Hidden Mental Process Stimulus Black box Exhibit 4-1: Stimulus-response model of buyer behavior Response
  5. 5. What’s Known About Mental Process • People buy for practical (rational) and psychological (emotional) reasons • Some of a person’s thoughts can be determined • Buyers consider certain factors in making purchase decisions
  6. 6. A FAB Approach to Buyer
 Need Satisfaction • Stressing benefits is a very powerful selling technique • FAB selling technique helps emphasize benefit • Feature • Advantage • Benefit
  7. 7. The Product’s Features: So What? • Feature – a physical characteristic • Many salespeople emphasize features • Examples: • Size • Color • Price • Shape
  8. 8. The Product’s Advantages: Prove It! • Advantage - a performance characteristic • The chances of making a sale are increased by describing the product’s advantages • How a product can be used • How a product will help the buyer • Examples: • Fastest-selling • Store more information • Copy on both sides of the paper
  9. 9. The Product’s Benefits: What’s in it for Me? • Benefit – a result of advantage • People are interested in what the product will do for them • Benefits can be both practical and psychological • Benefits should be specific statements, not generalizations • Emphasizing benefits increases sales
  10. 10. Example: Sporting Goods Salesperson to Customer: • “With this ball, you’ll get an extra 10 to 20 yards on your drives ( 1. ) helping to reduce your score ( 2. ) because of its new solid core ( 3).”
  11. 11. Use Your FABs • Feature – Physical Characteristic • • Advantage – Performance Characteristic • • Buyer thinks “So What?” Buyer thinks “Prove It!” Benefit – Favorable result from advantage • Benefits are what people buy! • You can have a benefit of a benefit or a FABB
  12. 12. Use the FAB Sequence • The standardized FAB Sequence can be used as follows: • The…(feature)…means you…(advantage)…with the real benefit to you being…(benefit)…. • Note how a benefit is emphasized • Pick a product. Insert a FAB of the product into the above sequence • Put in your own words • Let’s try it…….going back to Point Park University
  13. 13. FAB for Point Park University
  14. 14. Let’s Review FABs • Which of the following is a feature, advantage, or benefit? • Made of kevlar • 20% more MPG • New • Lasts twice as long • Saves time, work, and money
  15. 15. Exhibit 3.4: Match Buyer’s Needs to Product’s Benefits and Emphasize Them in the Sales Presentation Important Seller (emphasize) Important Needs Benefits Unimportant (de-emphasize) Unimportant Buyer
  16. 16. The Trial Close–a Great Way to Uncover Needs and Sell • The trial close asks for an opinion, not a decision to buy • It gives feedback • The trial close is one of the best communication techniques in the sales presentation
  17. 17. The Trial Close Helps You to Determine: • Whether the prospect likes your product’s features, advantages, or benefits • Whether you have successfully answered any objections • Whether any objections remain • Whether the prospect is ready for you to close the sale
  18. 18. In These Examples of Trial Closes, Notice They Do NOT Ask Someone to Buy Directly • “How does that sound to you?” • • ….that example of my work experience “Is this important to you?” • ……in the open role for xxxxxxxxx • “That’s great - isn’t it?” • “I notice your smile. What do you think about…?”
  19. 19. Exhibit 3.5: The SELL Sequence: Use It Throughout Your Presentation S Show feature E Explain advantage L Lead into benefit L Let customer talk
  20. 20. Industrial Salesperson to Industrial Purchasing Agent: • “This equipment is made of stainless steel 
 ( 1. ), which means it won’t rust 
 ( 2. ). The real benefit is that it reduces your replacement costs, thus saving you money ( 3. )! That’s what you’re interested in – right ( 4 )?”
  21. 21. Review: When Are the Times to Use a Trial Close? • After making a strong selling point in the presentation (FABs) • After the presentation but before the close • After answering an objection • Immediately before you move to close the sale
  22. 22. Exhibit 3.6: Examples of Features, Advantages, Benefits, and Trial Closes that Form the SELL Sequence
  23. 23. You Can Classify Buying Situations • Some decisions are routine • Some decisions are limited • Some decisions are extensive
  24. 24. View Buyers as Decision Makers • Five basic steps in the buying decision • Need arousal • Collection of information • Information evaluation • Purchase decision • Postpurchase: • Satisfaction
  25. 25. Exhibit 3.9: Personal, Psychological, and Social Forces that Influence Consumers’ Buying Behavior
  26. 26. Satisfied Customers Are Easier to Sell • It is easier to sell to a customer than to a stranger • Building a relationship is important to a salesperson’s success
  27. 27. How does this relate to a job search…. • Are employers looking for a Feature? • Are they looking for an Advantage? • Are they looking for a benefit? • What will you do to help them succeed?