Marketing Chapter 5

Attention

Get the attention of your customer through advertising or prospecting

Interest

Build interest using an emotional appeal (family, friends, and boss)

Desire

Build it by highlighting product features

What does building clients do?

Building clientele reduces selling costs b/c repeat sales cost less than getting the inital sales.

Prospect

a poteintail customer. They are most common in B2B selling situations.

Characteristics of effective salesperson

!. Effective communication skills 2. effective emotional intelligence skills 3. solid computer and technical skills 4. positive attitude and self-confident 5. goal oriented 6. empathic to customer situations 7. Honest w/ employers and customers

Loss-leader pricing

a product sold at a low price (at cost or below cost) to stimulate other profitable sales. It is a kind of SALES PROMOTION, in other works MARKETING concentrating on a PRICING STRATEGY. Often a popular article. Ex: computer sold cheap but they can tell other products customer can buy

Hidden benefit

advantage of product not recognizable unless pointed out by salesperson

Obvious Benefit

advantage of product that is apparent, plain to see, easily recognizable

Follow-up

allows the salesperson to ensure that the customer is satisfied. This is accomplished by the salesperson contacting the customer and ensuring the customer is happy with the purchase.

Price Fixing

an agreement among competitors to raise, fix, or other wise maintain the price at which their goods or services are sold, price fixing is ILLEGAL. Ex: if all oil companies agreed to raise the price of oil so they can all make a higher profit

Selling

any form of direct, personal communication between a salesperson and a prospective customer

Product Benefits

basic, physical, or extended attributes of the product or purchase

Pre-sale

before the sale you want to provide ample (good amount) of product info.

Printed resources

care tags, content labels and users' manuals. Other sources may include manufacturer's trade and consumer publications

Rational buying motive

consumers have conscious, logical, well thought out reasons for making purchases. Ex: purchasing a hybrid vehicle b/c of increased gas mileag. -Product dependability -time or monetary savings -health or safety considerations -service -quality -durability

feedback

customers provide immediate feedback to the info presented by the salesperson

Action

encourage the customer to buy, ask for the sale

Duopoly

ex: Coke and Pepsi

Deceptive pricing

false advertising or deceptive advertising is the use of falser or misleading statement in advertising. Ex: steak is on special for 11.99 but you get to menu and it is 11.99 originally

Consultative selling:

finding products solutions to customers' problems. Ex: a salesperson at Circuit City might suggest that a customer purchase a wireless networking card to use on a business trip.

Anti-dumping lases

have been with us since the early decades of the 20th century. Prevents unfair trade practices.

Time:

in personal selling, it can e time consuming to reach customers.

Conviction

increase desire by sharing testimonials and proving the worth of the product

Cash Cow

is a product or a business unit that generates unusually high profit margins: so high that is responsible for a large amount of a company's operating profit

Dumping

is the practice of is any kind of PREDATORY PRICING, especially in the country at of internalional trade. Occurs when manufactures export a product to another countyr at a price either bbelow the price charged in its home market, or in qualities that cannot be explained through normal market competition Ex: foreign country dumps computer chips in the US for $2 but takes them $4 to make and forces them to go out of business giving another country control of market prices

What does preapprocah depend on?

it depends on whether the customers a new prospect or an existing customer -for new prospects the sales person must do background research to determine financial standing. For exiting customers, the salesperson must review pas notes and history about past purchasing habits.

What is predatory practice?

it is the practice of selling a product or service at a very low price, tending to drive competitors out of the market. -It is illegal Ex: superstore sold butter below cost in siler city.

What is the preapproach?

it is the retail environment. Retail associates are responsible for preparing the merchandise and work areas. -straightening, rearranging and replenishing stock -adjusting price tickets -learning the location and current availability of stock -arranging displays, Vacuuming and dusting

What is the most Basic feature of a product?

its its intended us. Ex: a customer purchases a watch to tell time

Feature-Benefit selling:

mactching the characteristics of a product to a customer's need and wasnts. Customers do not buy products, they buy what a product can do for them.Customers buy BENEFITS.

Perfect competition

many buyers and many sellers all dealing in ann identical product. Neither producer nor user has any market power and both must accept the prevailing market price

Sales person

must line up to their promise and always make sure to satisfy the customer even if it means losing a sale.

Limited

occurs when a customer has purchased a product before, though, not on a regular basis. Ex: a family takes a vacation every year however this year they decide to travel somewhere else

Monopoly

one seller who dominates many buyers

Preapproach

preparing for face-to-face customer interaction. Salespeople gain product knowledge, study trends, competitors and identify potential customers

What people think?

prices ending in odd numbers communicate a bargain and prices ending in even #'s communicate quality

Disadvantages: Cost per customer

relates to the expenses incurred to reach potential customers

Skill

requires a variety of skills and product knowledge. Salespeople often work long hours, and the ability to work with people is requirement.

BEst time to change price is technology can tell you this

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Oligopoly

where are relatively few competitive companies dominate the market which each large firm as the ability to influence market pries the unpredictable reaction from the other giant makes the final industry price in determinate. Ex: at &t, Verizon, T-moblie, Sprint control 89% of the cell phone service market

a complex pricing structures is questionable

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Bait and switch advertising

Customers are "baited" by advertising for a product or service at low price: then the customers discover that the advertised good is not avaliable or the sales perosn criticized teh advertised item and teh custoemrss are "switched" to a more expensive product

Tthical behavior

Effective salespeople should build trust w/ customer by being honest and responsible

Unique Benefit

Exclusive, the only one of its kind; a benefit competitor's good service does not posses

Emotional buying motive

Feelings experienced by the customer through association w/ a product Ex: buying a loved one a valentines gift -social approval -recognition -power -love -prestige

What are the 2 ?'s that a salesperson has to answer about a product?

How does the feature help the product's performance? Ex: air pockets in the heel of an athletic shoe help to cushion impact How does the performance information give the customer a personal reason to buy the product? ex: air pockets in the heel of athletic shoe help to cushion impact thus protecting the foot from injury

Price discrimination

Price differention exist when sales of identical goods or service are transacted at different prices from the same provider. Ex: when a game company sales video games for 440 to a supermarket and $45 in a local 30 away

What are most consumer buying motives a combo of?

Rational and emotional buying motives.

Control

Salesperson are responsible for what a is said during the sales presentations, managers have minimal control.

What do features do?

They help to provide the reasons for price differences among products. Ex: a car with satellite radio will cost more than the same car w/ a basic AM/FM radio

People

Those who have previous experience w/ your product are valuable source of info. Ask customers about their previous experiences and how the product compares to competitors.

barcodes

What makes it eaiser to change prices?

Endless chain method

salespeople ask previous customers for names of poteintail customers.

Cold Canvassing

salespeople attempt to locate as many potential customers as possible w/o checking out leads before hand. Sales people may go door-to-door or may select names from a telephone directory.

Flexibility

salespeople can tailor presentations based on verbal and nonverbal customer cues.

The product itself

salespeople may give samples of the products to try.

Persuasion

salesperson an us the wants and need of the customer to the highlight the superiority of a product

Information

salesperson are able to convey more information during the time spent with the customer

The internet

search using keywords or search engines such as Google or Yahoo

On your own

some organizations do not provide training. in this case, an associate must learn on their own. The more knowledgeable a salesperson is successful sales will result. Top salespeople continue to learn about products on their own.

Informal Training

takes place on the sales floor in retail operations. A new associate may be paired w/ an experienced associate who will descirbe the merchandise and selling techniques.

Extensive

taking place when a customer has had no previous experience w/ the item. Most likely for goods that involve high risk, are expensive, or have a high value for the customer. Ex: a customer who wants to buy a luxury automobile

Customer Benefits

the advantages or personal satisfaction a customer will get from a good or service -the benefit should be a value to the customer

What is the purpose and goal of selling?

the purpose and goal is to help customers make satisfying buying decisions and to establish ongoing, profitable relationships.

What does the sales person do?

they must analyze the product features from the customer's point of view to determine the benefits. They must answer 2 ?'s about each product feature

Training

to for by instruction, disipline or drill

Formal Training

training provided by the company in a class or workshop setting. This type of training most often takes place in B2B selling.