Fluent Essays

Subject: Sales & Customer Relationship Management Hi, I want you to write a discussion post in which first you have to reflect on the readings of the 3rd chapter (The Psychology of Selling: Why People Buy) of the textbook. “Reflect on the assigned readings for the week (3rd chapter). Identify what you thought was the most important concepts, methods, terms, and/or any other thing that you felt was worthy of your understanding”. For this I will give the instructions on how to access the online-textbook from Mc-Graw Hill website. & also, I will be attaching a Power point presentation of 3rd chapter from my professor. Read through the textbook and glance through the power point & then write a reflection of what you thought was most important concepts, methods from the chapter. Next part of the question: Also, provide a response to the following question: “Salespeople often ask themselves, “How can I convince a person to choose my product?” What are the five elements that need to be present in order for a customer to purchase a solution?” First part of the question is about writing a reflection of chapter 3 and second part of the question is to respond to the question of convincing a person to choose my product. Both the questions combined word count should be minimum of 500 words. It means for this discussion post word count is 500 words.----------------------------------------------------------------------------------------------------------------------------------------------------------------- Ok now, the instructions for accessing the textbook from Mc-Graw Hill website: Go to:https://www.mheducation.com/ Hit Sign in – on the top right corner of the website. Then, pop-up list comes up: in this list select—My bookshelf Then, enter login details: email --> abhirampatlolla45@gmail.com Password: Sales001* In the next screen, you will see the option to Access the e-book. When you hit that button, textbook will open in a new tab. For easy navigation in textbook screen on the top left corner you will see the table of contents. In which you can see list of different concepts of the chapter. So, That’s it! Those are the instructions for writing the assignment. Good Luck!! chapter_3._the_psychology_of_selling_why_people_buy.pptx Unformatted Attachment Preview Chapter 3: The Psychology of Selling: Why People Buy 3-1 ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Learning Objectives 3-1: Explain differences between consumer and organizational buying contexts. 3-2: Explain why people buy benefits rather than features or advantages. 3-3: Enumerate techniques for determining a customer’s needs. 3-4: List factors that influence the customer’s buying decision. 3-5: Show why buying is a choice decision. 3-6: Explain the differences between a feature, an advantage, and a benefit. 3-7: Be able to construct a SELL Sequence. 3-8: Know when and how to use a trial close. 3-2 ©McGraw-Hill Education. Why Understanding Buying Processes Is Important • Customers want to trust you! – They depend upon salesperson to tell the truth. • Salespeople are successful in the long term by: – Being honest – Building relationships • Use your communication and selling skills to unselfishly help a person make the correct buying decision 3-3 ©McGraw-Hill Education. Why People Buy? The Black Box Approach • We cannot see into the buyer’s mind • The internal decision process is referred to as the black box – Person internalizes/considers information and makes a buying decision • Stimulus-response model of buyer behavior Jump to Long Image Description This model assumes that prospects respond in some predictable manner to the sales presentation. Unfortunately, it does not tell us why they buy or do not buy the product. This information is concealed in the black box. ©McGraw-Hill Education. 3-4 Buying Process What’s Known About Mental Processes That Yield Buying Responses • People buy for practical (rational) and psychological (emotional) reasons • Some of a person’s thoughts can be determined • Buyers consider variety of factors in making purchase decisions 3-5 ©McGraw-Hill Education. Insert Photo Credit Here Organizational versus Consumer Buying Consumer buying: Organizational buying: • Purchasing activities of individuals and households for their personal use, consumption or to meet the collective needs of the household unit such as a family or individual • Activities of organizational members as they define a buying situation and identify, evaluate, and choose among alternative brands and suppliers • Often called B2C or business-toconsumer selling • Often called B2B or business-tobusiness selling • Selling financial services (life insurance, home security systems) • Selling Under Armour® apparel to a sporting goods distributor; healthcare technology to a hospital system • Limited number of decision makers involved • Many varied decision makers involved 3-6 ©McGraw-Hill Education. Compare The Differences: Selling To Consumers vs. Businesses Buying Characteristics Consumer Context Organizational Context Motive Purposes of the consumer/household Purposes of the organization People Typically an individual Group of people (e.g. buying center) Expertise Decision-maker(s) not expected to possess expertise Decision-maker(s) expected to possess expertise Process Process often impacted by individual’s emotions and formal guidelines not necessarily followed Rationality often recommended as a goal and decision making process may involve formal rules and guidelines Complexity Decision tasks more routine in nature and relatively less complex Decision tasks often complex and significant Time Relatively quick decision making Time-consuming process 3-7 ©McGraw-Hill Education. You Can Classify Buying Situations • Some decisions are routine • Some decisions are limited • Some decisions are extensive 3-8 ©McGraw-Hill Education. Insert Photo Credit Here The Three Classes of Buying Situations Low Involvement Moderate Involvement High Involvement Routine Decision Making Limited Decision Making Extensive Decision Making • Routine decision making: Products are purchased repeatedly. People give little thought or time to the routine purchase. • Limited decision making: When buyers are unfamiliar with a particular product brand, they seek more information when making a purchase decision. • Extensive decision making: Buyers believe much more is at stake relative to other buying decisions. 3-9 ©McGraw-Hill Education. View Buyers as Decision Makers • Five basic steps in the buying decision 1. Need arousal 2. Collection of information 3. Information evaluation 4. Purchase decision 5. Postpurchase: • Satisfaction • Dissonance 3-10 ©McGraw-Hill Education. Consumer Buying Decision Process • Consumer buying decision involves five basic steps – Consumers recognize a need – Collect information through internal and external sources – Evaluate that information – Decide to buy – After the purchase, determine whether they are satisfied. • In addition, other forces influence a consumer’s buying behavior (i.e. psychological, personal, social factors) 3-12 ©McGraw-Hill Education. Consumer Buying Decision Process • Consumer buying decision involves five basic steps – Consumers recognize a need – Collect information through internal and external sources – Evaluate that information – Decide to buy – After the purchase, determine whether they are satisfied. Jump to Long Image Description 3-14 ©McGraw-Hill Education. Consumer Buying Decision Process Jump to Long Image Description ©McGraw-Hill Education. 3-13 Organizational Buying Process • More formal rules, guidelines, and steps. • Describes problem-solving procedure firm uses to meet its goals and objectives, as it relates to making purchases • Buying process involves many individuals, multiple goals, and potentially conflicting decision criteria 3-15 ©McGraw-Hill Education. Organizational Buying Process • Firms use a five-step process when making a buying decision. – 1. Define the problem. – 2. Establish the decision criteria. – 3. Identify alternatives. – 4. Evaluate alternatives. – 5. Select appropriate solution. 3-15 ©McGraw-Hill Education. Organizational Buying Process • Describes problem-solving procedure firm uses to meet its goals and objectives, as it relates to making purchases • Firms use a five-step process when making a buying decision. 1. Define the problem. 2. Establish the decision criteria. 3. Identify alternatives. 4. Evaluate alternatives. 5. Select appropriate solution. 3-16 ©McGraw-Hill Education. Organizational Buying May Require Salesperson to Ask Distinct Questions • What are the steps in the buying process for your firm (or for this project)? • Who are the members of the buying team? What are their specific roles and responsibilities? • What current challenges are your firm experiencing in this area? • What are the goals for this project (or product or solution)? 3-17 ©McGraw-Hill Education. Organizational Buying May Require Salesperson to Ask Distinct Questions (cont.) • Can you describe for me your timeline for this project (or decision)? • What budgets or other resources have been identified for this project? • What have previous partners (or vendors or other companies) accomplished for you that made them a valued partner? • What are your expectations of the company that you chose to work with on this project? ©McGraw-Hill Education. 3-18 Factors Influencing Organizational Buying Process • Organizational buying process impacted by factors: • Individual influences: People in buying center and their personality characteristics, their roles and responsibilities, and their beliefs and attitudes. • Social influences: Interpersonal relationships and interactions among and between the members of the buying center • Organization’s climate, its goals, and its working environment: Firm’s culture, its expectations of its employees, firm’s financial objectives 3-19 ©McGraw-Hill Education. How Do Salespeople Communicate Their Product’s Benefits To Customers? • Feature • Advantage • Benefit • Stressing benefits is a very powerful selling technique • FAB selling technique helps emphasize benefit 3-20 ©McGraw-Hill Education. Use Your FABs To Create Value For Buyer • Feature – Physical Characteristic – Buyer thinks “So What?” • Advantage – Performance Characteristic – Buyer thinks “Prove It!” • Benefit – Favorable result from advantage – Benefits are what people buy! • You can have a benefit of a benefit or a FABB 3-21 ©McGraw-Hill Education. The Product’s Features: So What? • Feature – a physical characteristic • Many salespeople emphasize features • Examples: – Size – Color – Price – Shape 3-22 ©McGraw-Hill Education. The Product’s Advantages: Prove It! • Advantage - a performance characteristic • 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 – How does the feature enable the benefit – Examples: • Fastest-selling • Store more information • Copy on both sides of the paper 3-23 ©McGraw-Hill Education. The Product’s Benefits: What’s in it for Me? • Benefit – a result of advantage • People are interested in what the product will do for them • Benefits can be both practical and psychological • Benefits should be specific statements, not generalizations • Emphasizing benefits increases sales 3-24 ©McGraw-Hill Education. People Buy Benefit(s): The Salesperson Must Stress Benefits • High performing salespeople stress benefits • They know this increases their chances of making the sale and helping someone 3-25 ©McGraw-Hill Education. Why Does Someone Buy These Items? • Diamond ring • Camera film • STP motor oil • Baseball tickets • What truly is the benefit that the buyer is attaining? 3-26 ©McGraw-Hill Education. 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)…. – Or The...(feature)....enables or allows your firm to...(advantage) which means the value to you is...(benefits). – Or The...(feature)....creates/generates _____for your firm...(advantage) thereby creating value to your firm by _____...(benefits). • Note how a benefit is emphasized • Pick a product. Insert a FAB of the product into the above sequence – Put in your own words – Try it. It works! 3-27 ©McGraw-Hill Education. Let’s Review FABs • “For long life, these LED light bulbs – (feature) • provide an opportunity to reduce your maintenance costs – (advantage), • In fact, you can expect a 10\% savings this year. – (benefit) 3-28 ©McGraw-Hill Education. Let’s Review FABs Which Of The Following is a Feature, Advantage, or Benefit? • “Double layers of protective coating” – Feature, advantage or benefit? • “Generates awareness” – Feature, advantage or benefit? • “Made of pure vinyl” – Feature, advantage or benefit? • “Save you 20\% more electricity per hour” – Feature, advantage or benefit? 3-29 ©McGraw-Hill Education. FAB Example • Salesperson selling LED lights and sensors: – “I would like to introduce you to our new LED sensors. The sensors are fully customizable and detect each unique individual in your lab areas (feature). The sensors provide you with an ability to customize your lighting requirements based on the needs of the user. – This reduces the need for your employees to adjust the lighting (advantage). – Hence, your firm will increase its efficiency by reducing the time and labor needed to operate the lighting across your 500 lab settings (benefit). 3-30 ©McGraw-Hill Education. Match Buyer’s Needs to Product’s Benefits and Emphasize Them in the Sales Presentation • While the salesperson has broad range of understanding and product benefits… – Goal is to focus on the benefits that are most relevant to the buyer • Your buyer is the target market – Their perception of important needs should be targeted 3-31 ©McGraw-Hill Education. 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 • A great communication technique in the sales presentation • Often, trial closes are open-ended questions 3-32 ©McGraw-Hill Education. The Trial Close Helps You to Determine: • Whether 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 3-33 ©McGraw-Hill Education. In These Examples of Trial Closes, Notice They Do NOT Ask Someone to Buy Directly • “What are your thoughts on this?” • “Would you be willing to share your thoughts on this?” • “How important would you say something like this is to your business ?” • “I notice your smile. What do you think about…?” 3-34 ©McGraw-Hill Education. Let’s Review! When Are the Times to Use a Trial Close? 1. After making strong selling point in presentation (FABs) 2. After presentation but before the close 3. After answering an objection 4. Immediately before you move to close the sale 3-35 ©McGraw-Hill Education. The SELL Sequence: Use It Throughout Your Presentation S E L L Show Feature Explain Advantage Lead into Benefit Let Customer Talk • The SELL Sequence is similar to the FAB – However it also includes the trial close after the benefit statement – Show the Feature: Physical Characteristic – Explain the Advantage: Performance Characteristic – Lead into the Benefit: Result of Advantage – Let customer talk: Trial Close (Question) 3-36 ©McGraw-Hill Education. Identify The Elements of SELL Sequence • Industrial Salesperson to Industrial Purchasing Professional • This equipment is made of stainless steel – (?) • which means it won’t rust – (?) • The real benefit is that it reduces your replacement costs by approximately 12\% each year – (?) • What are your thoughts – (?) 3-37 ©McGraw-Hill Education. SELL Sequence Example • Salesperson selling LED lights and sensors: – “I would like to introduce you to our new LED sensors. The sensors are fully customizable and detect each unique individual in your lab areas (feature). The sensors provide you with an ability to customize your lighting requirements based on the needs of the user. – This reduces the need for your employees to adjust the lighting (advantage). – Hence, your firm will increase its efficiency by reducing the time and labor needed to operate the lighting across your 500 lab settings (benefit). – How do you think your employees would feel about using the sensors (trial close)?” 3-38 ©McGraw-Hill Education. Examples of Features, Advantages, Benefits, and Trial Closes that Form the SELL Sequence Feature Advantage Benefit Trial Close Product made of stainless steel Will not rust or deteriorate thereby allowing a greater lifespan Reduces your replacement cost and total cost of ownership How does that sound to you? Supermarket computer system with the IBM 3651 Store Controller Can store more information and retrieve it rapidly by supervising up to 24 grocery checkout scanners and terminals and look up prices on up to 22,000 items Provides greater accuracy, register balancing, store ordering, and inventory management How does this solution align with your objectives Five percent interest on money in bank checking NOW account Earns interest that would not normally be received The extra money is equivalent to one extra bag of groceries each month Would you like to earn extra money on your savings? 3-39 ©McGraw-Hill Education. Can You Answer? 1. What is a need and how does it differ from a want? Why is it important for a salesperson to understand the buyer’s needs? 2. What are common economic needs and what are common psychological needs? Why might a buyer possess multiple economic and psychological needs? 3. What are the three categories (i.e. classifications) of buying situations? In what major ways are they different from one another? 3-40 ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Can You Answer? 4. What are the five steps in the buying process? How could a salesperson assist the buyer in each of these steps? 5. Salespeople often ask themselves, “How can I convince a person to choose my product?” What are the five elements that need to be present in order for a customer to purchase a solution? 6. What are the elements of a FAB and SELL Sequence? Why are they valuable? 7. What is the value of a trial close? 3-41 ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Stimulus-response model of buyer behavior Alt-Description This graphic is a sequence of three boxes with arrows in between each box. Each box represents a stage of the stimulus response model of buyer behavior. Above each box is a description of the model as applied to a sales scenario. The first stage is the stimulus. Within the sales context this would be the sales presentation. The second box is the black box. Within the sales context this would be the buyer’s hidden mental processes. The third box is the response. This would be the sale or no sale choice by the buyer. Return to the image on the slide ©McGraw-Hill Education. Consumer Buying Decision Process Alt Description This graphic reflects the consumer decision process. It is a sequence comprised of five steps. The steps are displayed as boxes with arrows between the box, intended to demonstrate the sequence in the process. The first step is need arousal. The second step is collection of information, The third step is information evaluation. The fourth step is purchase decision. The firth step is postpurchase behavior Return to the image on the slide ©McGraw-Hill Education. Three Influences On Consumer Buying Decision Process Alt Description This graphic reflects the three major influences on the consumer decision process. The three categories of influences are displayed as three boxes. The boxes have arrows pointing downward to the entire consumer decision process. The consumer decision process is a sequence comprised of five steps. The first category of influences is personal influences. This includes income, age, gender, situation. The second category of influences is psychological influences. It includes past experiences, personality, attitudes and beliefs, and perception. The third category is social influences. This includes culture, social class, family and friends. The consumer buying decision process steps are displayed as boxes with arrows between the box, intended to demonstrate the sequence in the process. The first step is need arousal. The second step is collection of information, The third step is information evaluation. The fourth step is purchase decision. The firth step is postpurchase behavior Return to the image on the slide ©McGraw-Hill Education. ... Purchase answer to see full attachment