Marketing Ch 13 What is Selling?

Knowing your product and your customer Selling – Helping customers make satisfying buying decisions – Do this by communicating how products and their features match customers needs and wants

Why do we want customer satisfaction We want repeat customers

Goal of selling 1.Help customers decide on purchase 2.Ensure customers are satisfied and become return customers

Feature-Benefit Selling Process of matching the features of each product to a customer’s wants and needs Two types 1.Product Features 2.Customer Benefits

Product Features Salesperson needs to learn how a product features will benefit the customer. Product Feature – Physical characteristics or quality of a good or service that explains what it is. Most basic feature is its intended use

Tangible Product Features Certain qualities in the product that differentiates competing brands and models Physical characteristics of the product – Examples in a car Color Automatic Transmission Stereo Anti-lock breaks

Tangible Product Features Additional features add value to a product Physical features help provide the reason for price difference among product models

Extended product features Not always physical part of the product but they are important to the purchase decision Example: – Warranties – Service Policy – Available financing – Reputation of Company

Customer Benefits Advantages or personal satisfaction a customer will get from a good or service A salesperson will 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? What value is it to the customer

Product Information Product knowledge is essential for success in selling. Knowing about product helps explain why one product is better than another Know how to use (demonstrating) and care for a product is essential when educating consumers

Customer Buying Motives What motivates people to buy a product Is their motive Rational or Emotional

Rational Motive Conscious, factual reason for buying – Include: Product Dependability Time or Monetary Savings Convenience Comfort Health or Safety Considerations Recreational Value Service Quality

Emotional Motive Feeling experienced through association with a product – Social approval – Recognition – Power – Love – Affection – Prestige

Motives Both rational and emotional motives can present in the same purchase

Customer Decision Making Three distinct types of decision making 1.Extensive 2.Limited 3.Routine

Extensive Decision Making Used when there has been little or no previous experience with the item because it is infrequently purchased High degree of risk and very expensive Examples – Expensive Machinery – Land for a new building site – First home

Limited Decision Making Used when a person buys goods and services that he or she has purchased before but not on a regular basis. Moderate degree of risk Examples: – Second car – Furniture – Vacation – Household appliances

Routine Decision Making Used when a person needs little information about a product because of a high degree of prior experience Low degree of risk Customer have develop brand loyalty

Is Selling the Career for You? Type of Sales positions – Retail Sales Sales Associates – Know their products and how to sell Salesclerks – Simply order takers or cashiers Sales Representatives – Extensive Training and product knowledge

Is Selling the Career for You? Type of Sales positions – Retail Sales Sales Associates Salesclerks Sales Representatives Telemarketing

Sales Associate Expected to know their product and how to sell

Salesclerk Simply order taker or cashier

Sales Representative Requires extensive training and product knowledge Often requires college degree Command high salaries and commission

Telemarketing Process of selling over the telephone Items sold over the phone: – Magazine subscriptions – Service contracts

Characteristics of Effective Salespeople Good Communication skills – Excellent listening and speaking skills – Read between the line when listening – Know proper grammar and pleasant speaking voice

Characteristics of Effective Salespeople Good Interpersonal skills – Know how to get along with different people – Be able to handle customers who are demanding as well as those who are reserved – Know what to say and how to say it

Characteristics of Effective Salespeople Solid Technical Skills – Good math and computer skills and product knowledge – Be an expert in your field – Read trade magazines/papers to keep up with the trends – Study company products and competitors

Characteristics of Effective Salespeople Positive Attitude and Self-Confidence – Involves learning from your mistakes and looking for something useful in all situations – Be secure enough to accept rejections

Characteristics of Effective Salespeople Goal Orientation – Keeps effective salespeople focused and striving for success – Persistence is needed – Do not give up on a customer

Characteristics of Effective Salespeople Empathy – The essence of customer-oriented selling – Be able to see things from a customer’s point of view and be sensitive to their problem – Learn the says “I can understand why you feel that way. I would feel the same way.” – Have the customers best interest at heart

Characteristics of Effective Salespeople Honesty – Salespeople are honest because they know integrity is the cornerstone of professional selling – Salespeople want repeat sales and customer relationships

Characteristics of Effective Salespeople Enthusiasm – Be excited about the products you sell – Believe in the products – Lack of enthusiasm will come through

Fact and Idea Review Complete and Fact and Idea Review on page 184 And Critical Thinking