-chapter 12 powerpoints

Chapter 12 Preparing for the Sale 1

Chapter 12 Preparing for the Sale

Section 12.1 Selling

Marketing EssentialsMarketing Essentials


SECTION 12.1SECTION 12.1

What You'll LearnWhat 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

SellingSelling


SECTION 12.1SECTION 12.1 SellingSelling

Why It's ImportantWhy 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.



Key TermsKey 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



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.

Knowing Your Product and Your Customer

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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.

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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.



Product Features

Product features are the basic, physical, or extended attributes of the product:

Basic features are a product’s intended use.

Physical qualities differentiate it from competing brands and models.

Additional features add value and justify price differences between models.



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 product’s performance?

2. How does the performance information give the customer a personal reason to buy the

product?

Customer Benefits



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.

Feature-Benefit Chart



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

Customer Buying Motives

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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.

Customer Buying Motives

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There are three distinct types of decision making:

extensive

limited

routine

Decisions are based on a person’s previous buying experience and the importance and perceived risk of the purchase.

Customer 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.

Extensive Decision Making



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

Limited Decision Making

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.



Routine decision making is used when a person needs little information about a product.

Routine Decision Making

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).


12.1 Graphic OrganizerGraphic Organizer

Types of Customer Decision-Making Processes

CUSTOMERCUSTOMER

Expensive or Highly

Valued Item

Expensive or Highly

Valued Item

No Experience

with Item

No Experience

with ItemInformation

Needed

Information Needed

Some Experience

with Item

Some Experience

with Item

HighProduct

Satisfaction

HighProduct

Satisfaction

Much PriorExperiencewith Item

Much PriorExperiencewith Item

High Perceived Risk

High Perceived Risk

Moderate Perceived Risk

Moderate Perceived Risk

Low Perceived Risk

Low Perceived Risk

Extensive Decision Making

Limited Decision Making

Routine Decision Making


End of Section 12.1



Section 12.2 Preparing for the Sale



SECTION 12.2SECTION 12.2

What You'll LearnWhat 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

Preparing for the SalePreparing for the Sale


SECTION 12.2SECTION 12.2 Preparing for the SalePreparing for the Sale

Why It's ImportantWhy 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.



Key TermsKey Terms

preapproach

prospect

referrals

endless chain method

cold canvassing



The preapproach is getting ready for the face-to-face encounter in a selling situation. Salespeople do the following to prepare for the sale:

The Preapproach

Study their products.

Keep abreast of industry trends.

Research potential customers.

Develop familiarity with their company's policies and procedures.



Product Information

Product knowledge is essential for success in selling. The following are some of the ways salespeople find product information:

Direct experience—using the product Written publications—manuals, warranties,

catalogs Other people—previous users, supervisors,

manufacturer's representatives Formal training



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.



Sources and Methods of Prospecting

A prospect, or a lead, is a potential customer. There are seven main methods for developing prospects:

employer leads

telephone directories

trade and professional directories

newspapers

commercial lists

customer referrals

cold canvassing

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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.


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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.


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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.


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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.

Preparing for the Sale in Business-to-Business Selling

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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?

Preparing for the Sale in Business-to-Business Selling

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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.

Preparing for the Sale in Retail Selling

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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.

Preparing for the Sale in Retail Selling

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End of Section 12.2


-chapter 12 powerpoints

Documents

customer decision

goal of selling

extensive decision making

customer slide

sale section

key selling concepts

end of section

corresponding customer