Marketing Dynamics Marketing PREPARING FOR THE SALE Copyright © Texas Education Agency, 2014. All rights reserved Copyright Agency and will be required to enter into a license agreement that may involve the payment Copyright © Texas Education Agency. 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Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education t of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2014. All rights reserved Goals The student can differentiate among a feature, an advantage, and a benefit. The student can compare and contrast between consumer, organizational buying behavior The student can determine customer needs and wants The student can classifying buying motives The student can analyze how customers and organizations apply the decision-making process. The student can identify major influences on buying behavior The student can acquire information about customer needs Copyright © Texas Education Agency, 2014. All rights reserved Terms Personal Selling Business-to-Business Product feature Customer benefit Feature-benefit selling Rational motive Emotional motive Extensive decision making Limited decision making Routine decision making Copyright © Texas Education Agency, 2014. All rights reserved Types of Sales Personal Selling involves any form of direct contact between a salesperson and a customer. Personal Selling can be involved in different type of sales situations. Business-to-business selling Also called B2B Manufacturer or wholesaler selling to another business. Copyright © Texas Education Agency, 2014. All rights reserved Feature Benefit Selling Feature Benefit Selling – a good salesperson can translate the products features into how they will benefit the customer. Product Features Basic, physical or extended attributes of the product. Example: Digital Image Stabilization (D.I.S.) Customer Benefits How that feature helps the product How does the feature give a customer a reason to buy. Example: D.I.S. helps to reduce the camera shaking so you can take a better picture from further away. Copyright © Texas Education Agency, 2014. All rights reserved Customer Buying Motives Rational motive – a conscious, logical reason to make a purchase. Dependable product Cost savings Better health Safety considerations Quality of product Copyright © Texas Education Agency, 2014. All rights reserved Customer Buying Motives Emotional motives that involve feelings that a customer has that are associated with the product. Social approval Recognition Power Love prestige Copyright © Texas Education Agency, 2014. All rights reserved Customer Decision Making Factors that affect decision making Previous experience with a product or company How often the product is purchased The amount of information necessary to make a decision. The importance of the decision to the consumer. The perceived risk involved in the purchase The time allotted to make the decision. Copyright © Texas Education Agency, 2014. All rights reserved Customer Decision Making Extensive Decision Making Little or no prior experience with the product. High degree of perceived risk or Very expensive product Examples are (B2B) Expensive machinery (B2B) Land or buildings First cars First homes Copyright © Texas Education Agency, 2014. All rights reserved Customer Decision Making Limited Decision Making Person has already purchased product before but not regularly Moderate degree of perceived risk Customer requires information before making purchase. Examples (B2B) Accounting services (B2B) Advertising agency services Second car Appliances Vacations Copyright © Texas Education Agency, 2014. All rights reserved Customer Decision Making Routine Decision Making Customer needs little information about product High degree of prior experience with product Low risk Examples: (B2B) reorder goods (B2B) office supplies Groceries Dry-cleaning Hairdressing services Copyright © Texas Education Agency, 2014. All rights reserved What makes a good salesperson? Good communication skills Good interpersonal skills Solid technical skills Positive attitude and self-confidence Goal oriented Empathy Honesty Enthusiasm Copyright © Texas Education Agency, 2014. All rights reserved Determining Needs Determine needs as soon as possible. Ask questions Don’t assume Copyright © Texas Education Agency, 2014. All rights reserved Determining Needs Observing – observe customer to look for buying motives Look for nonverbal clues. Study facial expressions, hand motions, eye movement etc. to determine customers interest or mood. How long they hold the product. In B2B sales look for clues in office for personal interests. In retail sales walk through store and observe customers, items carried and prices. Copyright © Texas Education Agency, 2014. All rights reserved Determining Needs Listening – helps you pick up clues to customers needs and for use in product presentation. listening skills Maintain good eye contact Provide verbal and nonverbal feedback Give customers your undivided attention Do not interrupt Copyright © Texas Education Agency, 2014. All rights reserved Determining Needs Questioning – in order to listen you must get them talking. Begin with general questions about intended use or product and pervious experience with product. Build your questions around words like who, what, when, where, how and why. Then begin asking more detailed questions, like size, color or features. Copyright © Texas Education Agency, 2014. All rights reserved Determining Needs Do’s and Don'ts for asking questions: Do ask open-ended questions to encourage talking. Do ask qualifying questions to make sure you understand customer needs. Don’t ask too many questions in a row. Don’t ask questions that might embarrass customer or put them on defensive. Copyright © Texas Education Agency, 2014. All rights reserved