Chapter 12 Preparing for the Sale 1 Section 12.1 Selling Marketing Essentials

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

Slide 1 of 2



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



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

Slide 1 of 2



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



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 ASSESSMENTASSESSMENT

Reviewing Key Terms and Concepts1. What is personal selling?

2. Name three settings where personal selling may occur.

3. What are the goals of selling?

4. Explain the concept of feature-benefit selling.

5. What are the three levels of decision making that customers may use when purchasing goods or services?


12.1 ASSESSMENTASSESSMENT

Thinking Critically

Think of a purchase you or your family recently made that required at least limited decision making. Use that product to explain the meaning of this statement:

Customers do not buy products, rather they buy what the products will do for them.


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

Marketing EssentialsMarketing Essentials

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Chapter 12 Preparing for the Sale 1 Section 12.1 Selling Marketing Essentials