n Chapter 12 Preparing for the Sale

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

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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.
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SECTION 12.1
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

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SECTION 12.1
Selling
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
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SECTION 12.1
Selling
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
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SECTION 12.1
Selling
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.

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SECTION 12.1
Selling
Product Features

• Product features are the basic, physical, or
  extended attributes of the product
• Basic features are a products intended use.
• Physical qualities differentiate it from
  competing brands and models.
• Additional features add value and justify price
  differences between models.

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SECTION 12.1
Selling
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 products performance? 2.
How does the performance information give the
customer a personal reason to buy the product?
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SECTION 12.1
Selling
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.
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SECTION 12.1
Selling
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
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SECTION 12.1
Selling
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
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SECTION 12.1
Selling
Customer Decision Making

• There are three distinct types of decision
  making
• extensive
• limited
• routine
• Decisions are based on a persons previous
  buying experience and the importance and
  perceived risk of the purchase.

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SECTION 12.1
Selling
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.

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SECTION 12.1
Selling
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.

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SECTION 12.1
Selling
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).

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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?
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ASSESSMENT
12.1
Thinking Critically
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.
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12.1
Graphic Organizer
Types of Customer Decision-Making Processes
CUSTOMER
Expensive or Highly Valued Item
No Experience with Item
Information Needed
Some Experience with Item
HighProduct Satisfaction
Much PriorExperiencewith Item
High Perceived Risk
Moderate Perceived Risk
Low Perceived Risk
Extensive Decision Making
Limited Decision Making
Routine Decision Making
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Marketing Essentials
End of Section 12.1