SELLING Chapter 12 Learning Objectives


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SELLING Chapter 12 Learning Objectives

  1. 1. SELLING Chapter 12
  2. 2. Learning Objectives <ul><li>Define selling and different types of selling situations </li></ul><ul><li>Explain the purpose and goals of selling </li></ul><ul><li>Define consultative selling </li></ul><ul><li>Differentiate between rational and emotional buying motives </li></ul><ul><li>List the 3 levels of customer decision making </li></ul>
  3. 3. Selling <ul><li>Selling is the function of marketing that involves one-on-one contact with customers. </li></ul><ul><li>To be effective in sales, a salesperson must possess product knowledge , as well as an understanding of customers’ motives for buying and of the decision-making process. </li></ul>
  4. 4. Tell me…. <ul><li>Think about the last time you shopped. What motives did you have for your purchase, and what product information was important to you ? </li></ul><ul><li>When was the last time your purchased something with the help of a salesperson ? How did they help you? </li></ul>
  5. 5. Personal Selling <ul><li>Personal selling is any form of direct contact between a salesperson and a customer. </li></ul><ul><li>TWO-WAY communication between the seller and buyer: retail, business-to-business, or telemarketing. </li></ul>
  6. 6. SELLING <ul><li>Retail- is unique because the customer comes to the store. </li></ul><ul><li>Business-to-business- may take place in a manufacturer’s showroom ( inside sales ) or a customer’s place of business ( outside sales ). </li></ul><ul><li>Telemarketing- the oh so annoying phone call you get when you sit </li></ul><ul><li>down for dinner !!!! </li></ul>
  7. 7. Goals of Selling <ul><li>I know it may be obvious, but here it goes: </li></ul><ul><li>Help customers make satisfying buying decisions. </li></ul><ul><li>Create ongoing, profitable relationships between buyer and seller. </li></ul><ul><li>REPEAT BUSINESS IS CRUCIAL TO THE SUCCESS OF A COMPANY!! </li></ul>
  8. 8. Consultative Selling <ul><li>Providing solutions to customers’ problems by finding products that meet their needs. </li></ul><ul><li>ANALYSIS of customer needs. </li></ul><ul><li>PRODUCT KNOWLEDGE! </li></ul><ul><li>Word of mouth from positive experiences with the product. </li></ul>
  9. 9. Feature-benefit Selling <ul><li>Matching the characteristics of a product to a customer’s needs and wants. </li></ul><ul><li>The thought is “ people do not buy products; rather, they buy what the products will do for them .” </li></ul><ul><li>Who wants to earn brownie points and explain what this statement means? </li></ul>
  10. 10. Product Features <ul><li>May be basic, physical, or extended attributes of the product or purchase. </li></ul><ul><li>Basic - its intended use. A person buys a car for transportation. </li></ul><ul><li>Physical features- this is what differentiates competing brands and models. Hmmm- Yugo vs. Mercedes. </li></ul><ul><li>Additional features- add more value to a product and added cost. </li></ul>
  11. 11. Customer Benefits <ul><li>The advantages or personal satisfaction a customer will get from a good or service. </li></ul><ul><li>A salesperson will need to answer: </li></ul><ul><li>1) How does the feature help the product’s performance? </li></ul><ul><li>2) How does the performance information give the customer a personal reason to buy the product? </li></ul>
  12. 12. “ Trust me….” <ul><li>PEOPLE WILL PAY MORE IF YOU CAN PROVIDE A VALID CUSTOMER BENEFIT! </li></ul><ul><li>Take a look at your peers. What are they wearing? Did anyone pay too much for a shirt, jeans, expensive sneakers? Why did you pay more? </li></ul>
  13. 13. Customer Buying Motives <ul><li>Motives may be rational or emotional . </li></ul><ul><li>Rational Motives- a conscious, logical reason for a purchase. Rational motives include dependability, time or monetary savings, health or safety considerations, service, and quality. </li></ul><ul><li>Emotional Motives- a feeling experienced by a customer through association with a product. Social approval, recognition, power, love, or prestige. </li></ul>
  14. 14. Success: <ul><li>Successful salespeople determine customers’ rational and emotional motives in a potential buying situation. Then they suggest the features and benefits of the product that best matches those motives. </li></ul>
  15. 15. Customer Decision Making <ul><li>Some customers need no help from salespeople while others require significant time and effort. </li></ul>
  16. 16. How a person makes a decision is affected by: <ul><li>Previous experience with the product and company. </li></ul><ul><li>How often the product is purchased. </li></ul><ul><li>The amount of information necessary to make a wise buying decision. </li></ul><ul><li>The importance of the purchase to the customer. </li></ul><ul><li>The perceived risk involved. </li></ul><ul><li>The time available to make the decision. </li></ul>
  17. 17. Decision Making <ul><li>Extensive Decision Making : when there is little or no previous experience with an item. High degree of “perceived risk” or high cost. Example: buying first house. </li></ul>
  18. 18. Decision Making <ul><li>Limited Decision Making: used when a person buys goods and services that he has purchased before but not regularly. May need “ some ” information before buying and moderate perceived risk . Example: second car, furniture, household appliances. </li></ul>
  19. 19. Decision Making <ul><li>Routine Decision Making: used when a person needs little information about a product. Perceived risk is low and the product is bought frequently . Example: grocery items, newspapers, dry cleaning services. </li></ul>