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

Selling SECTION 12.1 The definition and goals of selling What 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

SECTION 12.1 Selling Why 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.

Selling SECTION 12.1 personal selling business-to-business selling Key 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

Selling SECTION 12.1 Knowing Your Product and Your Customer 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. Slide 1 of 2

Selling SECTION 12.1 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

Selling SECTION 12.1 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.

Selling SECTION 12.1 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.

Selling SECTION 12.1 Customer Benefits 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?

Selling SECTION 12.1 Feature-Benefit Chart 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.

Selling SECTION 12.1 Customer Buying Motives 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 Slide 1 of 2

Selling SECTION 12.1 Customer Buying Motives 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. Slide 2 of 2

Selling SECTION 12.1 Customer Decision Making 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.

Selling SECTION 12.1 Extensive 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.

Selling SECTION 12.1 Limited Decision Making Limited decision making is used when a person buys goods and services that he or she has purchased before but not regularly. 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.

Selling SECTION 12.1 Routine Decision Making Routine decision making is used when a person needs little information about a product. 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).

Reviewing Key Terms and Concepts ASSESSMENT 12.1 Reviewing Key Terms and Concepts 1. 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?

ASSESSMENT Thinking Critically 12.1 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.

Graphic Organizer 12.1 Types of Customer Decision-Making Processes Expensive or Highly Valued Item No Experience with Item Information Needed Some Experience with Item High Product Satisfaction Much Prior Experience with Item High Perceived Risk Moderate Perceived Risk Low Perceived Risk Extensive Decision Making Limited Decision Making Routine Decision Making

Marketing Essentials End of Section 12.1