MICROSOFT ALBANIA  SEMINAR ON SALES
Buyers behavior
THE MARKETING CONCEPT The Purpose of Sales   Creating a  value  by satisfying the needs and quality   Understanding the  n...
Needs & Wants   <ul><li>Marketing begins with needs ,wants and Demands.  </li></ul><ul><li>Needs  -  a situation in which ...
What are customer needs and wants? <ul><li>A need  is a basic requirement that an individual wishes to satisfy.  </li></ul...
Wants  <ul><li>A want is a desire for a specific product or service to satisfy the underlying need.  </li></ul><ul><li>Con...
customers  Demand  <ul><li>Consumer demand is  a want  for a  specific product  supported by an  ability and willingness t...
Businesses do not create customer needs <ul><li>Businesses do not create customer needs or the social status in which cust...
Maslow’s Hierarchy of Needs Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (secur...
Priorities  <ul><li>As we are short on resources , we have constantly to make decisions as to what is more important to us...
VALUE   <ul><li>Value  - the psychological assessment of the consumer as to the ability of the product or service to satis...
customer added value and customer’s experience   Costs for customer   Price  of product   Time Energy   Psychological cost...
Examples:   <ul><li>Need : I am hungry  </li></ul><ul><li>I can eat a hamburger at McDonalds,  but I am on a diet so I pre...
Examples :  <ul><li>I need to travel to work, my need to be mobile can be executed by walking, bicycles, train, car or don...
Priorities  <ul><li>As we are short on resources , we have constantly to make decisions as to what is more important to us...
VALUE   <ul><li>Value  - the psychological assessment of the consumer as to the ability of the product or service to satis...
WHAT SATISFIES THE NEEDS AND WANTS?   <ul><li>PRODUCTS  </li></ul><ul><li>anything that can be offered to a market for att...
<ul><li>Understanding the marketing process is one of the most important factors  </li></ul><ul><li>Why does the buyer mak...
Who are my clients?  <ul><li>Consumer clients  :  those who purchase products/ service  for their personal use. </li></ul>...
“ Customers  tick “   The  <ul><li>A businessman spends considerable time trying to understand: </li></ul><ul><li>Who buys...
How does the customer react to  my marketing mix ?   <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li>...
why is it important?  <ul><li>If sales personnel understand these customer response better than the competition , then it ...
The Consumer Buying Process Marketing Inputs Product Price Promotion Place The  client   Purchase Decisions Product Choice...
How do customers buy? <ul><li>This model is important for anyone making marketing decisions.  It forces the marketer to co...
Buyer behavior    stimulus-response model <ul><li>In the  next model, marketing and other stimuli enter the customers “bla...
THE CLIENT
Characteristics that affect customer  behaviour <ul><li>The first stage of understanding buyer behavior is to focus on the...
Factors of  consumer behavior   Customer  ( gender, age, FLC) Psychological  structure   Personal  needs & wants   Social ...
Decision-making process
STAGE 1 :  need recognition <ul><li>The buying process starts with need recognition. At this stage, the buyer recognises a...
STAGE 2 : information search   <ul><li>An “aroused” customer then needs to decide how much information (if any) is require...
Information search ( cont.)   <ul><li>A customer can obtain information from several sources: </li></ul><ul><li>Personal s...
STAGE 3 : the evaluation stage   <ul><li>The usefulness and influence of these sources of information will vary by product...
the evaluation stage ( cont. )  <ul><li>How does the customer use the information obtained? </li></ul><ul><li>An important...
Why should a marketer need to understand the customer evaluation process? <ul><li>The answer lies in the kind of informati...
<ul><li>In high-involvement decisions, the marketer needs to provide a good deal of information about the  positive conseq...
<ul><li>The buy </li></ul>
Closing the Deal 4 Easy Steps to Remember at Buying Time
4 Steps to Closing the Deal   <ul><li>Tune Your Radio To  WIFM </li></ul><ul><li>Ask For The Deal </li></ul><ul><li>Stop S...
1.  “Tune your Radio to WIFM” <ul><li>WIFM  – “ W hat’s  I n it  F or  M e?” </li></ul><ul><li>This is the favorite and  o...
2.  Ask for the Deal <ul><li>You have identified your clients needs </li></ul><ul><li>You have presented a consultative so...
3.  Stop Selling <ul><li>Your clients know what they want  </li></ul><ul><li>They asked you to provide it and you did! </l...
4.  Close the Deal <ul><li>Closing is about confidence </li></ul><ul><ul><li>If your client feels you have confidence in y...
Post-purchase evaluation - Cognitive Dissonance   <ul><li>The final stage is  the post-purchase evaluation of the decision...
Cognitive Dissonance ( cont. )  <ul><li>To manage the post-purchase stage, it is the job of the marketing team to persuade...
Are decision of purchase logical or emotional?  <ul><li>להכניס פה את המצגת של יסעור . </li></ul>
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Buyers Behaviour Albania Microsoft

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what makes your customer leave with a positive customer experience? is it only the price?

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  • Maslow’s Hierarchy of Needs Maslow suggests that lower level needs must be satisfied before individuals become motivated to satisfy higher level needs. Thus consumers will respond to lower level products and promotions until those needs are met. Only then can other marketing offers be of interest. Needs include: Physiological. Physical needs such as hunger, thirst, and bodily functions are the lowest level need and require satisfaction before other needs become important to the individual. Sometimes this helps students understand the difference between needs and wants. A thirsty person may still want an expensive car but if thirsty enough will take a drink of water. Safety. Safety needs for security and protection are the next level needs in the hierarchy. So long as physiological needs are met, safety needs will take precedence over other needs. Fear appeals for consumer products are often linked to safety needs. Social. Human beings are social, gregarious animals. We group together in part to fulfill physiological and safety needs but also because we enjoy and need the company of others. Going to malls to &amp;quot;hang out&amp;quot; fulfills social needs. Esteem. To be recognized as an individual fulfills esteem needs. Self-esteem is the value a person places on himself or herself. As lower level needs become more stable, esteem needs become more important to the individual. Self-actualization. Beyond esteem needs very successful people may still be driven to improve themselves and &amp;quot;accomplish something.&amp;quot; These people are driven to self-actualize their potential. Maslow’s Hierarchy of Needs This CTR relates to the material on p. 146-147 and corresponds to Figure 5-4.
  • Characteristics Affecting Consumer Behavior This CTR relates to Figure 5-2 on p.135 and previews the material on pp. 135-150. Influences on Consumers Cultural . Culture is the most basic influence on a person&apos;s values, priorities, and beliefs. Cultural shifts make marketing opportunities although most such changes are in secondary rather than core cultural values. Subcultures are important markets as these groups are often significantly different in their needs to warrant different marketing approaches. Social. Social class is determined by a combination of income, occupation, education, wealth and other variables. Social factors within one&apos;s class that affect consumer behavior include reference groups &amp; inspirational groups. Families also exert strong social influences. Finally, each relationship a person has with his or her group carries with it certain roles and status that may carry consumptive responsibilities. Personal . Major personal factors are age and life cycle stage, occupation, economic situation, life style and personality/self-concept. Texts vary in their treatment of the PLC stages but it is clear that singles buy different products than do young married with small children. Occupations differ in time constraints and social pressures to conform that affect consumption decisions. Lifestyles measured by AIO or VALS typologies can reveal different consumption patterns across otherwise dissimilar groups. The unique characteristics of each person that make up their personality also affect behavior. Psychological . Maslow&apos;s hierarchy reminds marketers that need states vary in their intensity or motivation. Perception is the process of organizing stimuli and is influenced by selective exposure, distortion, &amp; retention. Learning occurs in response to the presentation of information linked to relevant drives, cues, responses, and reinforcement only some of which is under the control of the marketer. Beliefs and attitudes, though shaped by cultural and social forces, may vary considerably on the individual level.
  • Buyers Behaviour Albania Microsoft

    1. 1. MICROSOFT ALBANIA SEMINAR ON SALES
    2. 2. Buyers behavior
    3. 3. THE MARKETING CONCEPT The Purpose of Sales Creating a value by satisfying the needs and quality Understanding the needs and wants of your customers Operating more effectively and efficiently than your competitors
    4. 4. Needs & Wants <ul><li>Marketing begins with needs ,wants and Demands. </li></ul><ul><li>Needs - a situation in which we feel that we lack something ( I need to go somewhere, I feel hungry ,I want to be important ). </li></ul><ul><li>Wants - is the personal and practical expression of how to satisfy the need . I can want an expensive car to show off yet I will drink a glass of water if thirsty. </li></ul><ul><li>Demands - the actualization of the wants if there is buying force behind it to support the want.( money ) </li></ul>
    5. 5. What are customer needs and wants? <ul><li>A need is a basic requirement that an individual wishes to satisfy. </li></ul><ul><li>People have basic needs for food, shelter, affection, esteem and self-development. Many of these needs are created from human biology and the nature of social relationships. Customer needs are, therefore, very broad. </li></ul><ul><li>Whilst customer needs are broad, customer wants are usually quite narrow. </li></ul>
    6. 6. Wants <ul><li>A want is a desire for a specific product or service to satisfy the underlying need. </li></ul><ul><li>Consider this example: </li></ul><ul><li>Consumers need to eat when they are hungry. What they want to eat and in what kind of environment will vary enormously. For some, eating at McDonalds satisfies the need to meet hunger. For others a microwave ready-meal meets the need. Some consumers are never satisfied unless their food comes served with a bottle of fine Chardonnay. </li></ul><ul><li>Consumer wants are shaped by social and cultural forces, the media and marketing activities of businesses. </li></ul>
    7. 7. customers Demand <ul><li>Consumer demand is a want for a specific product supported by an ability and willingness to pay for it. </li></ul><ul><li>For example ; </li></ul><ul><li>many consumers around the globe want a Mercedes. But relatively few are able and willing to buy one. </li></ul><ul><li>Businesses therefore have not only to make products that consumers want, but they also have to make them affordable to a sufficient number to create profitable demand . </li></ul>
    8. 8. Businesses do not create customer needs <ul><li>Businesses do not create customer needs or the social status in which customer needs are influenced. It is not McDonalds that makes people hungry. However, businesses do try to influence demand by designing products and services that are </li></ul><ul><li>Attractive • Work well • Are affordable • Are available </li></ul><ul><li>Businesses also try to communicate the relevant features of their products through advertising and other marketing promotion. </li></ul><ul><li>Which leads us finally to an important summary point. </li></ul><ul><li>A marketing orientated business is one that which has adopted the marketing concept </li></ul>
    9. 9. Maslow’s Hierarchy of Needs Esteem Needs (self-esteem, status) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological Needs (hunger, thirst, sex ) Self Actualization (Self-development )
    10. 10. Priorities <ul><li>As we are short on resources , we have constantly to make decisions as to what is more important to us? </li></ul><ul><li>If we choose one value we might have to </li></ul><ul><li>give up another: Public transport is cheaper yet it is less comfortable. </li></ul>
    11. 11. VALUE <ul><li>Value - the psychological assessment of the consumer as to the ability of the product or service to satisfy his needs and wants.( how much are you ready to pay for air? ) </li></ul><ul><li>Benefit - the use the Customer/consumer is doing with the product/service, </li></ul>
    12. 12. customer added value and customer’s experience Costs for customer Price of product Time Energy Psychological cost customer Added value 3 Customer benefits Product Value Service value Personal value Image / status value 1 2
    13. 13. Examples: <ul><li>Need : I am hungry </li></ul><ul><li>I can eat a hamburger at McDonalds, but I am on a diet so I prefer to prepare a salad. </li></ul><ul><li>Yet I am tired and do not feel like starting to cook and wash dishes, should I order a Pizza? But I have a date with my new girlfriend and I want to impress her, so perhaps we go to a fancy restaurant? </li></ul><ul><li>Perhaps I go to this nice small un expensive restaurant in front of the sea and order grilled fish and salad? </li></ul><ul><li>A customer will eventually choose the product or service that will give him the best satisfaction and the best ratio of cost/benefit. </li></ul>
    14. 14. Examples : <ul><li>I need to travel to work, my need to be mobile can be executed by walking, bicycles, train, car or donkey. I shall use the best method that will give me the best value ( saving time, status, cost/benefit etc) </li></ul><ul><li>I need to get dressed. my need will change in accordance to place ( work, sports, dinner, sleep ) to fashion ( short, Long ,modern , traditional) and to what I want to project ( sexy, modest, well dressed) all these factors will dictate my Demand. </li></ul>
    15. 15. Priorities <ul><li>As we are short on resources , we have constantly to make decisions as to what is more important to us? </li></ul><ul><li>If we choose one value we might have to </li></ul><ul><li>give up another: Public transport is cheaper yet it is less comfortable than a car. </li></ul>
    16. 16. VALUE <ul><li>Value - the psychological assessment of the consumer as to the ability of the product or service to satisfy his needs and wants. </li></ul><ul><li>Benefit - the use the consumer is doing with the product/service, </li></ul>
    17. 17. WHAT SATISFIES THE NEEDS AND WANTS? <ul><li>PRODUCTS </li></ul><ul><li>anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want. </li></ul><ul><li>SERVICES </li></ul><ul><li>activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything. </li></ul>
    18. 18. <ul><li>Understanding the marketing process is one of the most important factors </li></ul><ul><li>Why does the buyer make a purchase? </li></ul><ul><li>Without this knowledge a business find it hard to respond to customers need and wants. </li></ul>
    19. 19. Who are my clients? <ul><li>Consumer clients : those who purchase products/ service for their personal use. </li></ul><ul><li>Industrial buyers : those who purchase items on behalf of their business or organizations. </li></ul>
    20. 20. “ Customers tick “ The <ul><li>A businessman spends considerable time trying to understand: </li></ul><ul><li>Who buys? </li></ul><ul><li>How do they buy? </li></ul><ul><li>When do they buy? </li></ul><ul><li>Where do they buy? </li></ul><ul><li>Why do they buy? </li></ul>
    21. 21. How does the customer react to my marketing mix ? <ul><li>Product </li></ul><ul><li>Price </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul><ul><li>People </li></ul><ul><li>Physical evidence </li></ul><ul><li>Process </li></ul>
    22. 22. why is it important? <ul><li>If sales personnel understand these customer response better than the competition , then it is a potentially significant source of competitive advantage. </li></ul>
    23. 23. The Consumer Buying Process Marketing Inputs Product Price Promotion Place The client Purchase Decisions Product Choice Location Choice Brand Choice Other Choices Psychological Inputs Culture Attitude Learning Perception
    24. 24. How do customers buy? <ul><li>This model is important for anyone making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice!) </li></ul><ul><li>The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. </li></ul>
    25. 25. Buyer behavior stimulus-response model <ul><li>In the next model, marketing and other stimuli enter the customers “black box” and produce certain responses. </li></ul><ul><li>Marketing management must try to work out what goes on the in the mind of the customer – the “black box” ( BRAIN ) </li></ul><ul><li>The Buyer’s characteristics influence how he or she perceives the stimuli; </li></ul><ul><li>the decision-making process determines what buying behavior is undertaken. </li></ul>
    26. 26. THE CLIENT
    27. 27. Characteristics that affect customer behaviour <ul><li>The first stage of understanding buyer behavior is to focus on the factors that determine he “buyer characteristics” in the “black box”. </li></ul>
    28. 28.
    29. 29. Factors of consumer behavior Customer ( gender, age, FLC) Psychological structure Personal needs & wants Social needs Culture assets
    30. 30. Decision-making process
    31. 31. STAGE 1 : need recognition <ul><li>The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). </li></ul>
    32. 32. STAGE 2 : information search <ul><li>An “aroused” customer then needs to decide how much information (if any) is required. </li></ul><ul><li>If the need is strong and there is a product or service that meets the need close to hand, and the risk is not too high , then a purchase decision is likely to be made there and then. </li></ul><ul><li>If not, then the process of information search begins. </li></ul>
    33. 33. Information search ( cont.) <ul><li>A customer can obtain information from several sources: </li></ul><ul><li>Personal sources : family, friends, neighbours etc • Commercial sources : advertising; salespeople; retailers; dealers; packaging; point-of-sale displays • Public sources : newspapers, radio, television, consumer organisations; specialist magazines • Experiential sources : handling, examining, using the product </li></ul>
    34. 34. STAGE 3 : the evaluation stage <ul><li>The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of “word of mouth”). The challenge for the marketing team is to identify which information sources are most influential in their target markets. </li></ul><ul><li>In the evaluation stage, the customer must choose between the alternative brands, products and services. </li></ul>
    35. 35. the evaluation stage ( cont. ) <ul><li>How does the customer use the information obtained? </li></ul><ul><li>An important determinant of the extent of evaluation is whether the customer feels “involved” in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. </li></ul><ul><li>Where a purchase is “highly involving”, the customer is likely to carry out extensive evaluation. </li></ul><ul><li>High-involvement purchases include those involving high expenditure or personal risk or emotional involvement – for example buying a house, a car or making investments. </li></ul><ul><li>Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes. </li></ul>
    36. 36. Why should a marketer need to understand the customer evaluation process? <ul><li>The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations. </li></ul>
    37. 37. <ul><li>In high-involvement decisions, the marketer needs to provide a good deal of information about the positive consequences of buying . The sales force may need to stress the important attributes of the product, the advantages compared with the competition ; and maybe even encourage “trial” or “sampling” of the product in the hope of securing the sale. </li></ul>
    38. 38. <ul><li>The buy </li></ul>
    39. 39. Closing the Deal 4 Easy Steps to Remember at Buying Time
    40. 40. 4 Steps to Closing the Deal <ul><li>Tune Your Radio To WIFM </li></ul><ul><li>Ask For The Deal </li></ul><ul><li>Stop Selling </li></ul><ul><li>Closing the deal with confidence </li></ul>
    41. 41. 1. “Tune your Radio to WIFM” <ul><li>WIFM – “ W hat’s I n it F or M e?” </li></ul><ul><li>This is the favorite and only station your client listens to </li></ul><ul><ul><li>Know why they are buying </li></ul></ul><ul><ul><li>Remind them why they are buying </li></ul></ul><ul><ul><li>Only talk to them about how this deal will help them! </li></ul></ul>
    42. 42. 2. Ask for the Deal <ul><li>You have identified your clients needs </li></ul><ul><li>You have presented a consultative solution to their needs </li></ul><ul><li>You have earned the right to ask them to buy your recommended solution…So Ask! </li></ul>
    43. 43. 3. Stop Selling <ul><li>Your clients know what they want </li></ul><ul><li>They asked you to provide it and you did! </li></ul><ul><li>The more you talk the more they think you are not done providing the solution </li></ul><ul><li>Stop talking and let them decide to decide </li></ul>
    44. 44. 4. Close the Deal <ul><li>Closing is about confidence </li></ul><ul><ul><li>If your client feels you have confidence in your solution , they will have confidence in your solution. </li></ul></ul><ul><ul><li>Confidence comes from preparation </li></ul></ul><ul><ul><li>Role play your final presentation and prepare answers to objections </li></ul></ul>
    45. 45. Post-purchase evaluation - Cognitive Dissonance <ul><li>The final stage is the post-purchase evaluation of the decision . It is common for customers to experience concerns after making a purchase decision. </li></ul><ul><li>This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. </li></ul><ul><li>In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. </li></ul>
    46. 46. Cognitive Dissonance ( cont. ) <ul><li>To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. </li></ul><ul><li>Then after having made a purchase, the customer should be encouraged that he or she has made the right decision </li></ul><ul><li>Always suggest a way out or service for this stage to minimize hesitance/ objections. </li></ul>
    47. 47. Are decision of purchase logical or emotional? <ul><li>להכניס פה את המצגת של יסעור . </li></ul>

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