Relationship selling through service mkt 173 chap 3

Main Topics  You Can Classify Buying Situations  Technology Provides Information  View Buyers as Decision Makers  Satisfied Customers Are Easier to Sell to  To Buy or Not To Buy–a C

Main Topics

 The Tree of Business Life: Benefits

 Why People Buy–The Black Box Approach

 Psychological Influences on Buying

 A FABulous Approach to Buyer Need Satisfaction

 How to Determine Important Buying Needs–a Key to Success

 Your Buyer’s Perception

 Perceptions, Attitudes, and Beliefs

 The Buyer’s Personality Should Be Considered

 Adaptive Selling Based on Buyer’s Style

Main Topics

 You Can Classify Buying Situations

 Technology Provides Information

 View Buyers as Decision Makers

 Satisfied Customers Are Easier to Sell to

 To Buy or Not To Buy–a Choice Decision

Guided by The Golden The Golden

Rule, emphasize benefits

to improve your:

 Communication Skills

 Ability to unselfishly help a person make the correct buying decision

Exhibit 3-1: Stimulus-response model of buyer behavior

Stimulus Black box Response

Sales Presentation

Buyer’s Hidden Mental Process Sale/No Sale

What’s Known About Mental Process

 People buy for practical and emotional

Psychological Influences on Buying

 Motivation to buy must be there

 Needs result from a lack of something desirable

 Wants are needs learned by the person

 Have practical needs

 Have psychological needs

 Economic needs: The best value for the

money

 The buyer’s need to purchase the most satisfying product for the money

Psychological Influences on Buying, cont…

 Awareness of needs: Some buyers are unsure

Conscious need level –fully known

Preconscious need level – may not be fully aware

Unconscious need level – have needs but do not know what they are

A FABulous Approach to Buyer

Need Satisfaction

BENEFIT SELLING

 Stressing benefits is a very

powerful selling technique

The Product’s Features: So What?

 Feature – a physical characteristic

 Many salespeople emphasize features

The Product’s Advantages: Prove It!

 The chances of making a sale are increased

by describing the product’s advantages

How a product can be used

How a product will help the buyer

Examples:

 Fastest-selling

 Stores more information

 Copies on both sides of the paper

The Product’s Benefits: What’s in it for Me?

 Benefit – a favorable result of advantage

 People are interested in what the product will

People Buy the Product’s Benefits, Such

as:

 Diamond ring – images of success,

investment, to please a loved one

 Camera film – memories of places, friends,

and family

 STP motor oil – engine protection, car

investment, or peace of mind

 Baseball tickets – entertainment, escape from reality, or relaxation

People Buy Benefits

 Not a product’s features

 Not a product’s advantages

People Buy Benefits, cont…

 Notice national television commercials

 They stress benefits

 Advertisers know this helps sell products

People Buy Benefits, cont…

 High performing salespeople stress benefits

 They know this increases their chances of making the sale and helping someone

What’s In It For Me?

 Stressing benefits in the sales presentation answers the prospect’s question, “What’s in it for me?”

Cannot Leave Out Features and

Advantages

 In the sales presentation, it is also important

to mention features and advantages

 Following is an example of how to stress a benefit while including a feature and an

advantage

Let’s Review FABs

 “With this ball, you’ll get an extra 10 to 20

yards on your drives ( ) helping to reduce your score ( ) because of its new solid core ( ).” feature

benefit

advantage

FABs Can Be Awkward at First

 New salespeople are frequently not

accustomed to using feature, advantage, and benefit phrases

 They may seem awkward at first

Use Your FABs

 Feature – Physical Characteristic

Buyer thinks “So What?”

 Advantage – Performance Characteristic

Buyer thinks “Prove It!”

Benefits are what people buy!

 You can also have a benefit of a benefit – a

FABB

Use the FAB Sequence

 The standardized FAB Sequence can be

used as follows:

 The…(feature)…means you…(advantage)…with the real benefit to you being…(benefit)….

 Note how a benefit is emphasized

 Pick a product and insert a FAB of the

product into the above sequence

 Put it in your own words

 Try it – it works!

“Made of pure vinyl”

“Gives 20% more miles to the gallon”

“New”

“Lasts twice as long”

“Saves, time, work, and money”

Let’s Review FABs, cont…

Let’s Review FABs

 “Blade changing is quick ( ) and easy ( ) with this saw because it has a push button blade release ( ).” feature

benefit

advantage

Let’s Review FABs, cont…

 “The king size ( ) will bring you

additional profits ( ) because it is the fastest growing ( ) and a more economical size ( ).” feature

feature

benefit

advantage

Let’s Review FABs, cont…

 “For long wear ( ) and savings on your clothing costs ( ), you can’t beat

these slacks All the seams are double

stitched ( ) and the material is 100% Dacron ( ).” feature

feature

benefit

advantage

The Salesperson Needs to be a Detective

 Given that people make a buying decision based on whether they believe a product’s benefits will satisfy their needs, how can you uncover a buyer’s needs?

Exhibit 3-4: Match Buyer’s Needs to Product’s Benefits

and Emphasize Them in the Sales Presentation

Benefits

Unimportant (de-emphasize) Unimportant Important (emphasize) Important

How to Determine Important Buying

Needs–A Key to Success

 L-O-C-A-T-E

isten bserve ombine

sk questions alk to others mpathize

The Trial Close–a Great Way to Uncover

Needs and Sell

 The trial close asks for an opinion, not a

decision to buy

 It gives feedback

 The trial close is one of the best

communication techniques in the sales

presentation

The Trial Close Helps You to Determine:

 Whether the prospect likes your product’s

features, advantages, or benefits

 Whether you have successfully answered any objections

 Whether any objections remain

 Whether the prospect is ready for you to close the sale

In These Examples of Trial Closes, Notice They

Do NOT Ask Someone to Buy Directly

 “How does that sound to you?”

 “Is this important to you?”

 “That’s great – isn’t it?”

 “I notice your smile What do you think

about…?”

Do You See How the Trial Close Asks for the Person’s

Opinion Concerning What Has Just Been Said?

 For example:

“Does that answer your concern?”

“Am I on the right track with this

proposal?”

To Help You Properly Use the FAB Selling

Technique and the Trial Close

 Incorporate the SELL Sequence into your

presentation

- Lead into benefit

- Let customer talk

Exhibit 3-5: The SELL Sequence: Use It

Throughout Your Presentation

Let’s Review FABs, cont…

 “This equipment is made of stainless steel ( ), which means it won’t rust

( ) The real benefit is that it

reduces your replacement costs, thus saving you money ( )! That’s what you’re

interested in – right ( )?”

Skip video

advantage

trial close feature

benefit

 Two-way communication

 Participation from the other person

The Trial Close Is a Powerful Communication Technique To Produce*

A Challenge! Use the Trial Close in Your

Normal Conversation To:*

 See if it helps your communication

 See if it gets the other person to participate in the conversation

 All you do is occasionally ask the person an opinion type question such as:

“Is that a good place to eat?”

“What did you think about the movie?”

“How does that sound to you?”

3 After answering an objection

4 Immediately before you move to close

the sale

Let’s Review! What Does the Trial Close

Allow You to Determine?

product’s FAB – the strong selling point

2 Whether you have successfully

answered the objection

3 Whether any objections remain

4 Whether the prospect is ready for you to

close the sale

5 Five percent interest on

money in bank checking

NOW account

6 Golf club head made of

aerodynamically designed

titanium steel

1 Will sell more product

2 Uses less electricity

3 Will not rust

4 Can store more information and retrieve

it rapidly by supervising

up to 24 grocery check-out scanners and terminals and look up prices on up

management

5 Gives you one extra bag of groceries each month

6 Lower scores

1 What do you think?

2 Is that important to you?

3 How does that sound to you?

4 That’s great–isn’t it?

5 Do you want to earn extra money?

6 And that’s what counts– right?

It Helps to Construct Four Columns when Creating Your SELL Sequence, Exhibit 3-6

Your Buyer’s Perception

 Perception – how buyer selects, organizes,

Your Buyer’s Perception

 Selective exposure – only portion of

information used

 Selective distortion – perceptual process

may alter information to reinforce one’s beliefs

 Selective retention – may remember only

what supports their attitudes and beliefs

Perceptions, Attitudes, and Beliefs

Learning – knowledge or behavior based on past experiences

Attitude – learned predispositions toward

something

Buyer’s attitude must be converted into a belief

Belief – trust or confidence placed in

something/someone

Perceptions, Attitudes, and Beliefs

The salesperson provides the buyer with product knowledge that allows him to develop favorable personal attitudes toward the product

These attitudes will result in positive beliefs that your product will fulfill her needs

You will spend much time creating or changing people’s learned attitudes and beliefs about your product

The Buyer’s Personality Should Be

Considered

 Personality can be viewed as the individual’s

distinguishing character traits, attitudes, or

habits

Real self – people as they actually are

Self-image – how they see themselves

Ideal self – what they would like to be

Looking-glass self – how they think others see

them

 Personality typing – method used to uncover aspects of the prospect’s personality that might influence a buying decision

 Adapt your presentation to the buyer’s

Adaptive Selling Based on

Buyer’s Style

1 Thinker – logical, systematic inquiry, over (preplan, be precise, facts & supporting data)

think-it-2 Intuitor – innovation, conceptual, theoretical, long-range thinking (give buyer the “big

picture”)

3 Feeler – people oriented, (keep on a

personal note with small talk; impact on

people)

4 Senser – action oriented (be brief and to the point; verbal communication more effective than written)

Exhibit 3-8: Guidelines to Identifying

Personality Style

 How would you describe this person?

 What is her time orientation – past, present, future?

Exhibit 3-9: Watch for Clues to Someone’s

 Be observant of buyer’s environment to

determine that person’s personality style

Exhibit 3-9: Watch for Clues to Someone’s

Personality Type

Determining Style Can Be Difficult

 What is the person’s primary style?

 What is the person’s secondary style?

 Does the person’s style comprise all four types?

First Know Your Style

 This helps you to adapt to the other person’s style

 Which leads to better communication

 Knowing your style helps you identify a

person’s style, especially if your styles are the same (It takes one to know one)

You Can Classify Buying Situations

 Some decisions are routine – products

purchased by habit

 Some decisions are limited – customers not familiar with particular brand will seek more information

 Some decisions are extensive – most large purchase decisions are made after buyer

carefully reviews all information

Exhibit 3-10: The Three Classes of Buying

Situations

Technology Provides Information

 Technology provides information for customer decision making and service

 Salespeople are able to serve customers

better and faster

View Buyers as Decision-Makers

View Buyers as Decision-Makers

information from variety of companies

View Buyers as Decision-Makers

and beliefs

decision – Price? Quality? Service?

product?

View Buyers as Decision-Makers

Information Evaluation, cont.

search for a more “realistic” product

View Buyers as Decision-Makers

altered by four basic factors:

receive my money’s worth?”

View Buyers as Decision-Makers

experience:

expected to be received from the product and what was actually received

was made in buying the product

Exhibit 3-12: Personal, Psychological, and Social Forces that Influence Consumers’ Buying Behavior

Satisfied Customers Are Easier to Sell To

 It is easier to sell to a customer than to a

stranger

 Building a relationship is important to a

salesperson’s success

To Buy or Not to Buy–a Choice Decision

 A salesperson needs to understand:

Factors that can influence the buying decision

That buyers actually examine various factors that influence these decisions

That buyers actually go through various steps in making decisions

To Buy or Not to Buy–a Choice Decision

questions before developing a sales presentation:

What type of product is desired?

What type of buying situation is it?

How will the product be placed?

How will the product be used?

Who is involved in the buying decision?

What practical factors may influence the buying decision?

To Buy or Not to Buy–a Choice Decision

They perceive a need or a problem.

They desire to fulfill a need or solve a problem.

They decide there is a high probability that your product will fulfill their needs or solve their problem.

They believe they should buy from you.

They have the resources and authority to buy.

Summary of Major Selling Issues

market and how these characteristics relate to the buyer’s behavior.

three buying situations of routine decision

making, limited decision making, and extensive decision making.

and the main factors that influence the decision.

Summary of Major Selling Issues, cont…

perceptions, learning, attitudes, beliefs, and

personality.

many factors influencing their buying decision.

buyer’s problems, and provide the knowledge that allows them to develop personal attitudes toward the product.