n Chapter 12 Preparing for the Sale

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Marketing Essentials
n Chapter 12 Preparing for the Sale
Section 12.1 Selling
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SECTION 12.1
Selling
What You'll Learn

• The definition and goals of selling
• The various sales situations encountered in the
  business world
• The definition of feature-benefit selling
• How customers make decisions and the difference
  between rational and emotional buying decisions

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SECTION 12.1
Selling
Why It's Important
Learning how to research products and customers
is helpful when selling any type of product or
idea. Learning how to find customers is also
essential. In this chapter you will be exposed to
key selling concepts that link products to
customers.
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SECTION 12.1
Selling
Key Terms

• personal selling
• business-to-business selling
• telemarketing
• feature-benefit selling
• product feature

• customer benefit
• rational motive
• emotional motive
• extensive decision making
• limited decision making
• routine decision making

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SECTION 12.1
Selling
Knowing Your Product and Your Customer
Personal selling is direct contact between a
salesperson and a customer. Business-to-business
selling may take place in a manufacturer's or
wholesaler's showroom (inside sales) or a
customer's place of business (outside
sales). Telemarketing is the process of selling
over the telephone.
Slide 1 of 2
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SECTION 12.1
Selling
Knowing Your Product and Your Customer
The goal of selling is to help customers make
satisfying buying decisions. Salespeople
accomplish this by solving customers problems
and by understanding their needs and wants.
Slide 2 of 2
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SECTION 12.1
Selling
Feature-Benefit Selling
Matching the characteristics of a product to a
customer's needs and wants is called
feature-benefit selling.

• Example A computer is purchased to increase
  productivity.

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SECTION 12.1
Selling
Product Features

• Product features are the basic, physical, or
  extended attributes of the product
• Basic features are a products intended use.
• Physical qualities differentiate it from
  competing brands and models.
• Additional features add value and justify price
  differences between models.

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SECTION 12.1
Selling
Customer Benefits
Customer benefits are the advantages or personal
satisfaction a customer will get from a good or
service. To determine customer benefits,
salespeople need to answer two questions about
each product feature 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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SECTION 12.1
Selling
Feature-Benefit Chart
A feature-benefit chart combines a product or
extended feature with its corresponding customer
benefit to create selling points. One without the
other is not sufficient. Feature-benefit charts
help customers make buying decisions.
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SECTION 12.1
Selling
Customer Buying Motives

• Salespeople must know what motivates customers to
  buy and what decisions customers make before the
  final purchase. Customers' motives fall into the
  following categories
• rational
• emotional

Slide 1 of 2
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SECTION 12.1
Selling
Customer Buying Motives
A rational motive is a conscious, logical reason
for a purchase, such as dependability or time
savings. An emotional motive is a feeling
experienced by a customer through association
with a product, such as social approval,
recognition, power, or prestige.
Slide 2 of 2
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SECTION 12.1
Selling
Customer Decision Making

• There are three distinct types of decision
  making
• extensive
• limited
• routine
• Decisions are based on a persons previous
  buying experience and the importance and
  perceived risk of the purchase.

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SECTION 12.1
Selling
Extensive Decision Making

• Extensive decision making is used when there has
  been little or no previous experience with an
  item.
• Extensive decision making is used when there is a
  high degree of perceived risk.
• It is usually used for goods and services that
  are very expensive or have high value to the
  customer.

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SECTION 12.1
Selling
Limited Decision Making
Limited decision making is used when a person
buys goods and services that he or she has
purchased before but not regularly.

• In limited decision making, there is a moderate
  degree of perceived risk.
• When making this type of decision, the customer
  often needs some information before buying.

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SECTION 12.1
Selling
Routine Decision Making
Routine decision making is used when a person
needs little information about a product.

• In routine decision making, there is a high
  degree of prior experience.
• It is usually used for goods and services that
  have a low perceived risk (because an item is
  inexpensive, is bought frequently, or
  satisfaction with the product is high).

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12.1
Graphic Organizer
Types of Customer Decision-Making Processes
CUSTOMER
Expensive or Highly Valued Item
No Experience with Item
Information Needed
Some Experience with Item
HighProduct Satisfaction
Much PriorExperiencewith Item
High Perceived Risk
Moderate Perceived Risk
Low Perceived Risk
Extensive Decision Making
Limited Decision Making
Routine Decision Making
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Marketing Essentials
End of Section 12.1
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Marketing Essentials
Section 12.2 Preparing for the Sale
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SECTION 12.2
Preparing for the Sale
What You'll Learn

• Sources for developing product information
• Prospecting sources and methods
• How leads are developed
• Preparation for the sale in business-to-business
  selling and retail selling

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SECTION 12.2
Preparing for the Sale
Why It's Important
As a salesperson, you will need to prepare for
the sale by learning about the industry and the
products you will be selling. In specific sales
situations, you may also need to find customers.
The tools and techniques for accomplishing these
tasks are covered in this section.
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SECTION 12.2
Preparing for the Sale
Key Terms

• preapproach
• prospect
• referrals
• endless chain method
• cold canvassing

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SECTION 12.2
Preparing for the Sale
The Preapproach
The preapproach is getting ready for the
face-to-face encounter in a selling situation.
Salespeople do the following to prepare for the
sale

• Study their products.
• Keep abreast of industry trends.
• Research potential customers.
• Develop familiarity with their company's policies
  and procedures.

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SECTION 12.2
Preparing for the Sale
Product Information
Product knowledge is essential for success in
selling. The following are some of the ways
salespeople find product information

• Direct experienceusing the product
• Written publicationsmanuals, warranties,
  catalogs
• Other peopleprevious users, supervisors,
  manufacturer's representatives
• Formal training

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SECTION 12.2
Preparing for the Sale
Industry Trends
Sales representatives read periodicals related to
their trade to gain insight into the industry.
All industries have trade publications related to
their industry.
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
A prospect, or a lead, is a potential customer.
There are seven main methods for developing
prospects

• newspapers
• commercial lists
• customer referrals
• cold canvassing

• employer leads
• telephone directories
• trade and professional directories

Slide 1 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Employer Leads Most businesses try to generate
prospects but also rely on salespeople to find
new customers. Telephone Directories The White
Pages is a list of names and phone numbers of
potential customers. The Yellow Pages can be
useful for B2B prospecting.
Slide 2 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Trade and Professional Directories These can
help B2B salespeople locate customers by
industry. Newspapers Birth announcements provide
leads for insurance salesmen. Notices of mergers
and new businesses provide leads for B2B
salespeople. Commercial Lists Some companies
specialize in providing lists of potential
customers categorized by education, income, etc.
Slide 3 of 4
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SECTION 12.2
Preparing for the Sale
Sources and Methods of Prospecting
Customer Referrals Satisfied customers refer
their friends and relatives. This is called the
endless chain method. Cold Canvassing Potential
customers are selected at random, such as by
going door-to-door or through the phone book.
Slide 4 of 4
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Business-to-Business
Selling
If the sales call is with an existing customer,
the salesperson analyzes past sales records and
reviews notes about the customer's personality,
family, and interests.
Slide 1 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Business-to-Business
Selling

• If the sales call is with a new customer, the
  salesperson must research answers to the
  following questions, usually through a phone call
  to the customer
• Does the prospect need this product or service?
• Does the prospect have the financial resources
  to pay?
• Does the prospect have the authority to buy?

Slide 2 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Retail Selling

• Since the customer comes to you, retail
  preparation includes
• Straightening, rearranging, and replenishing the
  stock.
• Adjusting price tickets before and after special
  sales.
• Learning where stock is located and how much is
  available.

Slide 1 of 2
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SECTION 12.2
Preparing for the Sale
Preparing for the Sale in Retail Selling

• Taking inventory.
• Arranging displays.
• Vacuuming the floor, dusting the shelves, and
  keeping the selling area neat and clean.
• These activities keep you familiar with the
  merchandise and makes it easier to find things
  for customers.

Slide 2 of 2
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Marketing Essentials
End of Section 12.2