The Power of Selling

1. The Power of Selling

2. Chapter 6 Why and How People Buy: The Power of Understanding the Customer

3. Video Ride-along • The video, Finding the Decision Maker, features Rachel Gordon, Account Manager, WMGK • In the video she talks about how she identifies the decision maker versus the influencer in a sales call and why it is important

4. Video Ride-along Discussion Questions • How do we identify the decision makers? • What is the major difference between an influencer and a decision maker? What role does each play in the selling process?

5. Chapter Objectives • Describe the different types of customers and why this information is important in determining customers’ needs. • Discuss the implications of Maslow’s hierarchy of needs for selling. • Learn the types of buyers and buying situations in the B2B environment. • List the steps in the buying process and describe how and why the process is evolving.

6. Chapter Objectives • Understand the role of emotions in the buying decision. • Learn how to use FAB for effective selling. • Understand how to develop your personal FAB message. • Learn how to make your FAB message memorable in an interview.

7. Inside Consumer Behavior • The science of consumer behavior describes and defines: • How you shop • Why you buy • Consumer behavior patterns • 86 percent of women look at price tags when they shop, the same applies to 72 percent of men • The average shopper doesn’t actually notice anything that’s in the entrance of a store

8. Inside Consumer Behavior • Smart retailers include a “transition zone” at the entry to their store because consumers don’t actually begin shopping until a certain point after they enter the store • The “transition zone” allows customers to get their bearings and choose their shopping paths • Understanding the customer and the buying process makes your selling efforts successful

9. Video Book Review • The video, Buy.ology – Book Brief, features Martin Lindstrom, the author of Buyology: Truths and Lies about Why We Buy • In the video he shares the discoveries of the world's largest neuromarketing study conducted by him  Source: BNET

10. Needs Versus Wants • Needs: Essentials, those products and services you literally cannot live without • Wants: Products, services, and activities that can improve your quality of life, something you don’t need to exist, but rather you desire to have because you think it will make you happy • Utilitarian needs: Objective, tangible attributes of a product or service • Hedonic needs: A subjective, emotional, or experiential requirement

11. Needs Versus Wants • The video, Needs vs Wants, features Dr. Michael R. Solomon, Professor of Marketing, Saint Joseph’s University • In the video he discuss the difference between needs and wants and the impact it has on selling Source: YouTube

12. Discussion Questions • Can you name few products, which can be categorized into both, needs and wants? • Can a salesperson convert a need of a customer into a want?

13. Figure 6.3 - Maslow’s Hierarchy of Needs Demonstrates That Humans Fill Higher Needs Only After Lower Needs are met

14. Business-to-Consumer (B2C) Buying • Consumer: The end user of a product or service • When you are the ultimate consumer of the products or services you buy, you are defined as a B2C customer

15. Business-to-Business (B2B) Buying • B2B customers are referred to as organizational or institutional markets • Organizational or institutional markets: Selling products or services to another company rather than selling directly to the ultimate consumer

16. Figure 6.4 - Types of B2B Buyers

17. Big Differences • B2C - Consumers purchase for their own consumption • B2B - Customers purchase to produce or resell the product to a company or the ultimate consumer

18. Table 6.1 - Comparison of B2C and B2B Buying Decisions

19. Figure 6.7 - Comparison of B2C and B2B Buyers

20. Business-to-Business Means Person-to-Person • A business never makes a buying decision; the decision is made by people who work for the company • B2B buying decisions are subject to the same behaviors as B2C buying decisions, but on a more challenging level because B2B buying decisions include: • Multiple decision makers • An extensive evaluation process, extended analysis • They represent a high risk on the part of the decision makers

21. Business-to-Business Means Person-to-Person • Buying center: Cross-functional team of people who make buying decisions on behalf of the company or organization

22. Business-to-Business Means Person-to-Person

23. Types of B2B Buying Situations

24. Types of B2B Buying Situations • The people who are responsible for making products, services, and supplies for the company or for the company’s customers: • Buyer, purchasing manager, materials manager, or procurement manager

25. The Traditional View of the Seven Steps of the B2B Buying Process • Recognizing the need • Defining the need • Developing the specifications • Searching for appropriate suppliers • Requesting proposals • Evaluating proposals • Making the buying decision • Postpurchase evaluation

26. The Internet Changes Everything • Buyers can research product and supplier options online, see product specifications, view demonstration videos, participate in online forums, get real-time recommendations and feedback from users on social networks • Successful salespeople truly focus on the buyers needs • They give up the sale and bring valuable feedback to their company to change the product, service, or other options that are reasons why customers might not buy from them

27. The Internet Changes Everything • Since information is no longer the exclusive domain of the salesperson, great salespeople bring value to their customers with ideas, insights, knowledge, and personal commitment that can’t be duplicated on a Web site, online forum, or on a social network • Crowdsourcing: Situation in which a company takes a job that is normally performed by an employee and puts out an “open call,” usually on the internet, for people all over the world to work on it

28. Crowdsourcing • The video, Crowdsourcing, features Jeff Howe • In the video, he explains the concept of crowdsourcing and how it has changed the photography business • He also considered the online communities as the building blocks of crowdsourcing Source: Jeff Howe

29. Emotions Dominate B2B Buying • Fear and trust • People buy when they feel comfortable with the product and the salesperson and when they believe it is the best decision they can make • Buyers have several fears • As a salesperson, understand your customer’s fear of buying and replace it with comfort, trust, and confidence—in you

30. Emotions Dominate B2B Buying • The two kinds of risks involved in B2B buying: • Organizational risk: Potential exposure, hazard or danger for a company • Personal risk: Potential exposure, hazard or danger for a person, especially the potential of losing his job

31. Table 6.2 - The Evolution of the Seven Steps of Selling

32. Table 6.2 - The Evolution of the Seven Steps of Selling

33. Buying Process Meets FAB • FAB: Feature Advantage Benefit • Feature: Physical characteristic of the product • Advantage: Performance characteristic of the product, or what the feature does • Benefit: Result the buyer will realize from the product because of the product advantage

34. Buying Process Meets FAB • Why does FAB work? • Customers want to know what a product or service will do for them—not just what it’s made of • To be able to use FAB in conversation, simply think in terms of the following: • Feature: What the product has • Advantage: What the features do • Benefits: What the features mean

35. Table 6.3 - FAB in Action

36. How to use FAB • Know your customer • Think outside your box • Get in touch with your customer’s motivation