SELLING

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SELLING

• Chapter 12

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Learning Objectives

• Define selling and different types of selling
  situations
• Explain the purpose and goals of selling
• Define consultative selling
• Differentiate between rational and emotional
  buying motives
• List the 3 levels of customer decision making

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Selling

• Selling is the function of marketing that
  involves one-on-one contact with customers.
• 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.

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Tell me.

• Think about the last time you shopped. What
  motives did you have for your purchase, and what
  product information was important to you?
• When was the last time your purchased something
  with the help of a salesperson? How did they
  help you?

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Personal Selling

• Personal selling is any form of direct contact
  between a salesperson and a customer.
• TWO-WAY communication between the seller and
  buyer retail, business-to-business, or
  telemarketing.

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SELLING

• Retail- is unique because the customer comes to
  the store.
• Business-to-business- may take place in a
  manufacturers showroom (inside sales) or a
  customers place of business (outside sales).
• Telemarketing- the oh so annoying phone call you
  get when you sit
• down for dinner!!!!

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Goals of Selling

• I know it may be obvious, but here it goes
• Help customers make satisfying buying decisions.
• Create ongoing, profitable relationships between
  buyer and seller.
• REPEAT BUSINESS IS CRUCIAL TO THE SUCCESS OF A
  COMPANY!!

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Consultative Selling

• Providing solutions to customers problems by
  finding products that meet their needs.
• ANALYSIS of customer needs.
• PRODUCT KNOWLEDGE!
• Word of mouth from positive experiences with the
  product.

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Feature-benefit Selling

• Matching the characteristics of a product to a
  customers needs and wants.
• The thought is people do not buy products
  rather, they buy what the products will do for
  them.
• Who wants to earn brownie points and explain what
  this statement means?

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Product Features

• May be basic, physical, or extended attributes
  of the product or purchase.
• Basic- its intended use. A person buys a car for
  transportation.
• Physical features- this is what differentiates
  competing brands and models. Hmmm- Yugo vs.
  Mercedes.
• Additional features- add more value to a product
  and added cost.

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Customer Benefits

• The advantages or personal satisfaction a
  customer will get from a good or service.
• A salesperson will need to answer
• 1) How does the feature help the products
  performance?
• 2) How does the performance information give
  the customer a personal reason to buy the product?

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Trust me.

• PEOPLE WILL PAY MORE IF YOU CAN PROVIDE A
  VALID CUSTOMER BENEFIT!
• 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?

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Customer Buying Motives

• Motives may be rational or emotional.
• Rational Motives- a conscious, logical reason for
  a purchase. Rational motives include
  dependability, time or monetary savings, health
  or safety considerations, service, and quality.
• Emotional Motives- a feeling experienced by a
  customer through association with a product.
  Social approval, recognition, power, love, or
  prestige.

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Success

• 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.

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Customer Decision Making

• Some customers need no help from salespeople
  while others require significant time and effort.

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How a person makes a decision is affected by

• Previous experience with the product and company.
• How often the product is purchased.
• The amount of information necessary to make a
  wise buying decision.
• The importance of the purchase to the customer.
• The perceived risk involved.
• The time available to make the decision.

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Decision Making

• 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.

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Decision Making

• 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.

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Decision Making

• 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.