SELLINGSELLINGChapter 12Chapter 12

Learning ObjectivesLearning Objectives

Define selling and different types of Define selling and different types of selling situationsselling situations

Explain the purpose and goals of sellingExplain the purpose and goals of selling Define consultative sellingDefine consultative selling Differentiate between rational and Differentiate between rational and

emotional buying motivesemotional buying motives List the 3 levels of customer decision List the 3 levels of customer decision

makingmaking

SellingSelling Selling is the function of marketing that Selling is the function of marketing that

involves involves one-on-one contactone-on-one contact with with customers. customers.

To be effective in sales, a salesperson To be effective in sales, a salesperson must possess must possess product knowledgeproduct knowledge, as , as well as an understanding of well as an understanding of customers’ customers’ motivesmotives for buying and of the decision- for buying and of the decision-making process.making process.

Tell me….Tell me…. Think about the last time you shopped. Think about the last time you shopped.

What What motivesmotives did you have for your did you have for your purchase, and what product purchase, and what product information was important to information was important to youyou??

When was the last time your purchased When was the last time your purchased something with the something with the helphelp of a of a salespersonsalesperson? ? HowHow did they help you? did they help you?

Personal SellingPersonal Selling Personal selling is any form of Personal selling is any form of

direct contactdirect contact between a between a salesperson and a customer.salesperson and a customer.

TWO-WAY communicationTWO-WAY communication between between the seller and buyer: retail, the seller and buyer: retail, business-to-business, or business-to-business, or telemarketing.telemarketing.

SELLINGSELLING Retail- is unique because the customer Retail- is unique because the customer

comescomes to the store. to the store. Business-to-business- may take place in a Business-to-business- may take place in a

manufacturer’s showroom (manufacturer’s showroom (insideinside salessales) or ) or a customer’s place of business (a customer’s place of business (outside outside salessales).).

Telemarketing- the oh so annoying phone Telemarketing- the oh so annoying phone call you get when you call you get when you sitsit

down for down for dinnerdinner!!!!!!!!

Goals of SellingGoals of SellingI I know it may be obvious, but here it know it may be obvious, but here it

goes:goes:Help customers make Help customers make satisfying buying satisfying buying

decisions.decisions.Create ongoing, Create ongoing, profitableprofitable relationships relationships

between buyer and seller.between buyer and seller.REPEAT BUSINESSREPEAT BUSINESS IS CRUCIAL TO IS CRUCIAL TO

THE SUCCESS OF A COMPANY!!THE SUCCESS OF A COMPANY!!

Consultative SellingConsultative Selling

Providing Providing solutionssolutions to customers’ to customers’ problems by finding products that problems by finding products that meetmeet their needs.their needs.

ANALYSISANALYSIS of customer needs. of customer needs. PRODUCT KNOWLEDGE!PRODUCT KNOWLEDGE! Word of mouthWord of mouth from positive experiences from positive experiences

with the product.with the product.

Feature-benefit SellingFeature-benefit Selling

Matching the Matching the characteristicscharacteristics of a of a product to a customer’s needs and product to a customer’s needs and wants.wants.

The thought is “The thought is “people do not buy people do not buy products; rather, they buy what the products; rather, they buy what the products will do for themproducts will do for them.”.”

Who wants to earn brownie points and Who wants to earn brownie points and explainexplain what this statement means? what this statement means?

Product FeaturesProduct Features May be May be basic, physical, or extendedbasic, physical, or extended

attributesattributes of the product or purchase. of the product or purchase. BasicBasic- its intended use. A person buys a car - its intended use. A person buys a car

for transportation.for transportation. Physical features-Physical features- this is what differentiates this is what differentiates

competing brands and models. Hmmm- competing brands and models. Hmmm- Yugo vs. Mercedes.Yugo vs. Mercedes.

Additional features-Additional features- add more value to a add more value to a product and added cost.product and added cost.

Customer BenefitsCustomer Benefits

The advantages or The advantages or personal satisfactionpersonal satisfaction a a customer will get from a good or service.customer will get from a good or service.

A salesperson will need to answer:A salesperson will need to answer: 1) 1) HowHow does the feature help the product’s does the feature help the product’s

performance?performance? 2) How does the performance information 2) How does the performance information

give the customer a give the customer a personal reason to buypersonal reason to buy the product?the product?

““Trust me….”Trust me….”

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

Take a look at your peers. What are Take a look at your peers. What are they wearing? Did anyone pay too they wearing? Did anyone pay too much for a shirt, jeans, expensive much for a shirt, jeans, expensive sneakers? sneakers? WhyWhy did you pay more? did you pay more?

Customer Buying MotivesCustomer Buying Motives

Motives may be Motives may be rationalrational or or emotionalemotional.. Rational Motives-Rational Motives- a conscious, a conscious, logicallogical

reason for a purchase. Rational motives reason for a purchase. Rational motives include dependability, time or monetary include dependability, time or monetary savings, health or safety considerations, savings, health or safety considerations, service, and quality.service, and quality.

Emotional Motives-Emotional Motives- a a feelingfeeling experienced by experienced by a customer through association with a a customer through association with a product. Social approval, recognition, power, product. Social approval, recognition, power, love, or prestige.love, or prestige.

Success:Success: SuccessfulSuccessful salespeople determine salespeople determine

customers’ rational and emotional customers’ rational and emotional motivesmotives in a potential buying in a potential buying situation. Then they situation. Then they suggestsuggest the the features and benefits of the features and benefits of the product that product that best matchesbest matches those those motives.motives.

Customer Decision Customer Decision MakingMaking

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

How a person makes a How a person makes a decision is affected by:decision is affected by:

Previous Previous experienceexperience with the product and with the product and company.company.

How How oftenoften the product is purchased. the product is purchased.The amount of The amount of information necessaryinformation necessary to make a to make a

wise buying decision.wise buying decision.The The importanceimportance of the purchase to the customer. of the purchase to the customer.The perceived The perceived riskrisk involved. involved.The The timetime available to make the decision. available to make the decision.

Decision MakingDecision Making

Extensive Decision MakingExtensive Decision Making: when : when there is little or there is little or no previous no previous experienceexperience with an item. High with an item. High degree of “perceived risk” or high degree of “perceived risk” or high cost. Example: buying first house.cost. Example: buying first house.

Decision MakingDecision Making

Limited Decision Making: Limited Decision Making: used when a used when a person buys goods and services that he person buys goods and services that he has purchased before but not regularly. has purchased before but not regularly. May need “May need “somesome” information before ” information before buying and buying and moderate perceived riskmoderate perceived risk. . Example: second car, furniture, Example: second car, furniture, household appliances.household appliances.

Decision MakingDecision Making

Routine Decision Making: Routine Decision Making: used when a used when a person needs person needs little informationlittle information about a about a product. Perceived risk is low and the product. Perceived risk is low and the product is bought product is bought frequentlyfrequently. Example: . Example: grocery items, newspapers, dry cleaning grocery items, newspapers, dry cleaning services.services.