1. Knowing Your Product and Your Customer
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
The difference between rational and emotional buying decisions

2. SELLING IS: Sometimes called Consultative Selling
1-- Communicating how product features match customer needs and wants; and
2-- Helping customers make satisfying buying decisions.

3. SELLING BENEFITS OUR NATION BY...
Creating jobs for people;
Helping to maintain our high standard of living;
Satisfying customer needs and wants; and
Identifying needed products and services.
Why is it so important for custoemrs to be pleased with their purchases?
REPEAT BUSINESS

4. Selling Personal Selling
Direct contact between a salesperson and customer
Two-way communication
Can occur in several different settings
Retail
Business-to-business
Over the telephone

5. Retail Selling Customers come to the store
Non-personal selling techniques such as advertising and displays are used to create store traffic
Salesperson offers customer service and answers questions about products and features

6. Business-to-Business Selling
Inside Sales
Occurs in manufacturer’s or wholesaler’s showroom
Outside Sales
Occurs at a customer’s place of business
Salesperson makes an appointment OR makes a “cold call”

7. Telemarketing Selling over the phone Common Consumer Products:
Magazine or newspaper subscriptions
Service contracts
Long distance service
Common Business Products:
Stationery
Cleaning Supplies
Office Supplies

8. Goals of Selling Help customers satisfy their needs
Create on-going, profitable relationships
Establish Repeat business
Create References and Recommendations

9. Feature-Benefit Selling
Matching the characteristics of a product to a customer’s needs and wants
“People do not buy products; rather they buy what the products will do for them”

10. Product Features
May be basic, physical or extended attributes of the product or service.
Most basic feature is a product’s intended use:
Automobile – Transportation
Additional Features add more value
Automobile – color, automatic, car stereo, engine
Extended Features
Automobile – warranty, service policy, financing and reputation of company

11. Customer Benefits
Features are developed into customer benefits to become selling points
Advantages or personal satisfaction a customer will get from a good or service
Sales people need to answer two questions for each product feature:
How does the feature help the product’s performance?
How does the performance information give the customer a personal reason to buy the product?

12. Feature-Benefit Chart
Chart with each product feature and it corresponding customer benefits
Feature
Benefits
Air Pockets in heel of running shoe
Cushions impact on pavement
Provides more comfort when running
Helps to protect the foot from injury

13. Customer Buying Motives
To develop consumer benefits, salesperson must have knowledge of customer
What motivates customer to buy?
Rational Motive – Logical Reason for Purchase
Emotional Motive – Feelings such as social approval, recognition, power, love or prestige
Combination of rational and emotional
What decisions does a customer make before the final purchase?

14. Customer Decision Making
Extensive
Little previous experience buying an item
High degree of perceived risk
Very expensive or high value to customer
Limited
Goods purchase before, but not regularly
Moderate degree of perceived risk
Customer needs some information before buying

15. Customer Decision Making
Routine Decision Making
Person needs little information about product
High degree of prior experience
Low perceived risk
Item is inexpensive, bought regularly or customer has high satisfaction/brand loyalty

16. Topic Quiz Answer questions in full sentences: What is a “cold call”?
What is the difference between a feature and a benefit?

17. Topic Quiz - Answers Answer questions in full sentences:
What is a “cold call”?
Sales call without an appointment
What is the difference between a feature and a benefit?
Feature – is a basic, physical or extended attribute or characteristic of a product
Benefit – is advantages or personal satisfaction a customer will get from a product or service

18. Topic Quiz Answer questions in full sentences:
3. What type of buying motive is it?
You buy a red sweater because you love the color red.
You purchase a used, economy car because you need transportation.
4. What type of decision making?
You are purchasing a can of favorite kind of pop.
You are buying your first car.

19. Topic Quiz - Answers Answer questions in full sentences:
What type of buying motive is it?
You buy a red sweater because you love the color red. EMOTIONAL
You purchase a used, economy car because you need transportation. RATIONAL
What type of decision making?
You are purchasing a can of favorite kind of pop.
ROUTINE
You are buying your first car. EXTENSIVE