-chapter 12 powerpoints
TRANSCRIPT
Chapter 12 Preparing for the Sale 1
Chapter 12 Preparing for the Sale
Section 12.1 Selling
Marketing EssentialsMarketing Essentials
Chapter 12 Preparing for the Sale 2
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
Chapter 12 Preparing for the Sale 3
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.
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SECTION 12.1SECTION 12.1 SellingSelling
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
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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.
Slide 2 of 2
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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.
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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.
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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
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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
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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
Slide 1 of 2
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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
Slide 2 of 2
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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
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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
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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.
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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).
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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
Chapter 12 Preparing for the Sale 18
End of Section 12.1
Marketing EssentialsMarketing Essentials
Chapter 12 Preparing for the Sale 19
Section 12.2 Preparing for the Sale
Marketing EssentialsMarketing Essentials
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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
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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.
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Key TermsKey Terms
preapproach
prospect
referrals
endless chain method
cold canvassing
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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.
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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
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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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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
Slide 1 of 4
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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.
Sources and Methods of Prospecting
Slide 2 of 4
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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.
Sources and Methods of Prospecting
Slide 3 of 4
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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.
Sources and Methods of Prospecting
Slide 4 of 4
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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
Slide 2 of 2
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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
Slide 2 of 2
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End of Section 12.2
Marketing EssentialsMarketing Essentials