Marketing Test 3.01-3.04

Feature presentation

A feature is a physical characteristic or quality of a product. It is something the customer can touch, feel, smell, see, or measure. It helps describe the product. In short, a feature answers the question, "What is it?" Sometimes, features are obvious, and clients can see them as soon as they look at a product. For example, when looking at new employee uniforms, a business customer can easily see features such as color, sleeve length, and style. Other features might not be so noticeable—they may even be hidden so that clients can't see them. Less obvious features of an employee uniform may be that it is 100% cotton and has double-stitched seams. While those are important features that impact the product's durability, the customer won't know about them unless you tell him/her.

Have you heard these messages?

Do you recognize the following promotional messages: "Imagination at work" "A diamond is forever" "Just do it" "I'm lovin' it" "Where dreams come true" "Expect more. Pay less." Chances are that you recognize most of these phrases, even if you don't automatically remember that they are used in advertisements for General Electric, De Beers, Nike, McDonald's, Disney Resorts and Parks, and Target. Promotional messages serve many purposes for marketers. They come in many different shapes and forms, and marketers use a variety of methods to deliver them to their intended audiences. Each promotional message is intended to inform, persuade, or remind customers about goods, services, ideas, images, or issues. Businesses primarily use promotional messages to encourage customers to think favorably about the company or to buy its products.

What is feature-benefit selling?

In our highly competitive market economy, customers have lots of choices. No matter what good or service they're looking for—skincare products, dog-walking services, industrial-grade steel beams—new choices are appearing on the market all the time. Why are so many choices necessary? Because not every customer has the same desires or interests. For an example, consider the many types of backpacks and backpack features that help users transport everyday items, protect traveling laptops, and accommodate hiking or sporting adventures. There are even different needs within these categories. See how day hikers' specific needs are featured in this video from REI:How to Choose a Day Hiking Pack || REI. (Links to an external site.) How can you, as a salesperson, sell to people who have unlimited options? First, you have to determine what each unique customer is looking for in a good or service. Then, you need to convince customers that your good or service has the features that will benefit them. This phase of the selling process is known as feature-benefit selling. Although feature-benefit selling can occur at any time in the selling process, it should always occur during the sales presentation as part of the sales dialogue and product demonstration. It's important to keep in mind that customers do not actually buy features. They buy benefits. In other words, they are not buying the product itself; rather, they are buying what the product can do for them. Customers do not buy treadmills—they buy the ability to work out in the privacy of their own homes. Clients don't buy a new copier—they buy the ability to print conveniently without leaving their offices. This means that you can't just point out a product's features and expect a customer to buy. The customer wants to know, "Will the features you are describing give me the desired benefits?" To complete a sale, you must be able to translate the features of your product into benefits for the individual customer or client. And to do this, you have to be an expert on your product. Learn more by reading the article "Difference Between Features and Benefits: The Key To Selling (Links to an external site.)" by Chris Taglia. When buyers are in the market for big-ticket items like equipment, appliances, or vehicles, they usually don't buy the first item they come across. Instead, they shop around. Think about the last time you made a big purchase. You probably did some research, visited different stores or websites, and compared prices and companies. That's where a skilled salesperson comes in! By explaining product features in terms of benefits, salespeople can help customers understand the differences between their products and their competitors' products. This is especially important when dealing with hidden features and benefits. Salespeople need to know the features of their own products—as well as the features of their competitors' products—so they can easily show comparisons to others.

Advantages and Disadvantages of Promotional Activities

Most promotional activities can be seen as contributing in a positive way to consumers' lives, to corporations, and to society in general. However, there are individuals and groups in our society that are critical of product and institutional promotion. What do you think about promotion? Have you ever really thought about how it affects your life? Let's consider promotional activities from both sides and examine their advantages and disadvantages.

Promotion Informs

Many companies use promotion to communicate important information about their products. Informing customers is especially important when a product is new on the market. Most customers aren't interested in buying a new product until they know more about it. Imagine the promotional efforts that were necessary to introduce innovative new technology in products such as DVD players, laptops, and smartphones. Informational promotions may also be used with older products that have new uses. A classic example of this is baking soda. After years of use for baking, its makers found a new use for it as a deodorizer for refrigerators and created new informational promotions to sell it as such. Apple frequently introduces new products to the marketplace. But how does the company inform customers about its brand new technology? This article by Mark Bergen, "A History of Apple's Product Launch Marketing (Links to an external site.)," explains how the company promoted new products like the iPhone and the iPad. Promotions that inform customers may also educate them on how to use products to their fullest advantage. For example, food manufacturers often provide customers with useful information, such as recipes on their websites, to explain the many ways that their food products can be used to prepare meals. They may also provide information about the natural or healthy qualities of their foods. Companies that manufacture car stereos, computers, and toys also use promotion to inform buyers about their products. Makers of these products often tell buyers about special features such as operating methods and money-back guarantees if their products fail to perform as promised. You might find a software company pointing out how easy its games are to use and how the games are compatible with many different gaming systems. The company would also inform customers about the price of the products and which stores will carry them. In general, the more complex a product is, the more detailed and informational promotion needs to be to educate customers. When customers want to purchase a complex product such as a new car, they want as much information as possible. In this case, companies aim to answer as many of a customer's potential questions as possible with their promotions. However, if a new product isn't that complex, the company doesn't have to be as detailed in its promotions. Burger King doesn't need to provide lots of information to customers every time it introduces a new sandwich. Other organizations use promotion to pass on information about ideas and images. Environmental groups, such as Greenpeace, are well-known for gaining support for their specific causes by making information available to the public. Political parties rely heavily on promotion to explain their viewpoints to voters during election years. Can you recall TV commercials for people running for president, senator, or governor? Even local school districts use promotion to inform residents about the need to increase taxes to fund education. Many companies use their social media platforms to inform customers about new products or let customers know how their products can be used. On its Twitter feed, McDonald's notifies customers about new and reintroduced products and tweets about the ingredients it uses in its popular menu items. How else do you think a company could use social media to promote its products?

Kinds of institutional promotion

Public servicePublic service promotions inform customers about noncontroversial issues that are in the public's best interest. For example, insurance companies sometimes promote improved health through changes in dietary and exercise habits. Many times, companies sponsor public service announcements on local television stations, highlighting issues such as community drug prevention or after-school participation in sports or arts programs. Public service promotions build goodwill for the company, especially when they depict the company as a friend of the community. Public relationsPublic relations promotions are created to deal with issues that are in the public's interest but are also related to the company or its products. These promotional activities may be either proactive (the business takes the initiative to promote itself) or reactive (the business engages in the activities in response to an external situation, such as a lawsuit). They are used to influence a company's image directly, such as improving a negative image or establishing a positive one before negative feelings arise. A negative image may be countered by confronting an issue that is controversial for the business. An example of this would be the reaction of the Ohio-based company Jeni's Splendid Ice Creams, which found Listeria bacteria in its ice cream. The company quickly issued a voluntary recall and issued press releases to let the public know what it was doing to investigate and resolve the situation. Jeni's also let customers know that it was converting destroyed product into electricity and soil fertilizer, and that it was providing health benefits and partial pay to its employees during the process. As a result, Jeni's was able to confront a negative issue and portray itself as a company that cares about its customers, community, and employees. The article "How to Do a Product Recall the Right Way (Links to an external site.)" by Bianca Male explains how companies can use public relations to help their images in the face of recalls. Celebrities often have to overcome negative images created by their actions. How many movie stars or athletes can you think of who went to the media to apologize for inappropriate or illegal behavior? Positive images can be established through public relations advertising by sponsoring nonprofit organizations or showing how the company is attempting to improve the quality of life. Office Depot, for example, contributes to local schools through the National Backpack Program and various teaching grants. In addition to being either proactive or reactive, public relations efforts may focus on any one of the business's many "publics," including the general public, customers, vendors, employees, stockholders, and even the government. Whether the information is positive or negative, the public tends to view information from the media as more credible than that found in advertising. PatronagePatronage promotions are designed to promote a firm's prestige or its features. When GE's marketers say that their company is "imagination at work," they are positioning the company as prestigious and innovative in customers' minds. Presenting information about the firm's features that will benefit the customer is another way to sell the firm for non-product reasons. For example, patronage promotions developed for a local bank might tell customers about extended hours or a new location.

Promotion Reminds

Some companies need to remind customers of their existence. Usually in this case, the promotions try to build an image of the company or organization rather than trying to sell an individual product. Examples of promotions that remind include a recognized company, like Coca-Cola, buying billboard space or commercial time or an established insurance company, such as State Farm, reminding its customers that, "like a good neighbor," it is always there for them. Reminder promotions seek to reinforce a favorable company image that is already present in customers' minds. Keep in mind that these three promotional objectives do not always exist separately. Promotions may aim to achieve one, two, or all three of the objectives at once. When marketers coordinate their promotional objectives, methods, and budgets, they can achieve success for both the product and the company.

Here's what you need to know...

So, what kind of product information is useful in selling? Because there are so many different types of products, the list could be almost endless. However, there are some major "not-to-be-missed" categories, such as: Where and how the product was made. Customers are often interested in where products come from and how they are manufactured. A Cadillac salesperson, for example, might be able to tell a customer that the Escalade s/he is considering is assembled "right down the road" in Arlington, Texas. And, a furniture salesperson would definitely want to tell customers if a particular piece has been crafted by hand. What materials, ingredients, etc., the product contains. More than ever before, it seems, customers want to know what's in the products they're buying. For instance, a sales representative for a food wholesaler may tell a restaurant owner that a certain salad dressing has no additives or preservatives. Or, a sales representative for a home builder may give prospective buyers information about the construction materials the builder uses—anything from light fixtures to shingles to drywall. It's important for salespeople to be able to let customers know what's in their products. How the product can and should be used. This may be the most significant product information a salesperson should know. It is very difficult for customers to understand how a product will benefit them if they don't know how to use it. High-end blenders, for example, make a lot more than just smoothies. They can also produce almond butter, coconut milk, applesauce, hummus, ice cream, pizza dough, and more. A salesperson should be familiar with all of these uses so that s/he can give customers all the information they need to make a buying decision. What styles, colors, models, etc., are available. It's very common for customers to ask if a product comes in another size, color, style, etc. How many times have you done so when shopping for clothes or shoes? If a salesperson doesn't have the needed product information, s/he could easily lose the sale. Any unique or interesting features the product possesses. A salesperson should know what sets his/her product apart from the crowd. Perhaps a certain bank offers its customers a debit card that pays cash back. Or, a certain brand of dryer has a steam setting that gets wrinkles out of clothes and eliminates the need for ironing. Information about the product's durability/reliability. Some products last longer or are more dependable than others, and these qualities can make them more expensive. Let's say you're a salesperson at a Lexus dealership. Your vehicles are quite a bit pricier than others, but they are also known to be the most reliable cars on the market. There's a lot of research to back up this claim, and you should be familiar with it. This is information your customers need to know! Product history. Some products, such as Apple computers, have long, colorful histories. Other products may be new to the market but are still exciting and innovative. When a salesperson knows a product's "backstory," it generates customer interest and inspires customer confidence. Complementary products. If someone purchases a printer, s/he probably needs ink cartridges and paper. If someone purchases a Keurig coffeemaker, s/he probably needs "K-Cups" to go along with it. Products that go together naturally are called complementary products. Knowing which products complement each other and being able to make appropriate suggestions to customers is all part of the product knowledge each salesperson should possess. Click here (Links to an external site.) for more on complementary products. Information about pricing, discounts, taxes, etc. Pricing information runs a close second to product uses when it comes to the most important information a salesperson should know. This is because price is often the most significant factor customers take into account when making buying decisions. Salespeople should know everything about how much a product costs, what discounts are available, how much taxes will be, etc. Distribution and delivery details. Many types of products, such as appliances or big-screen televisions, require delivery. And, many other types of products must be picked up at a later date or at a different location (e.g., preordered or custom items). In situations such as these, it's vital that the salesperson acquire and organize the correct information to keep customers in the loop! Warranty, guarantee, and repair information. Some products come with a warranty (a pledge to repair or replace the product if something happens to it) or a guarantee (a promise to refund the money if the customer isn't satisfied with the product). Warranties and guarantees are great selling features, but the fine print can be confusing at times, and salespeople should understand the terms thoroughly so that they can explain them to customers. Some products (e.g., cars, furnaces, manufacturing equipment) require a certain amount of service and repair throughout their lifetimes, which dealers or manufacturers may provide at a discounted cost. Salespeople should have all the details ready to share with customers.

Disadvantages of promotional activities

The disadvantages of promotional activities stem mainly from their misuse and inability to achieve certain goals. The individuals and groups critical of promotional practices think that: Some promotions are deceptive.Sometimes promotions make false or exaggerated claims about a product. While there are many laws in place to ensure "truth in advertising," misleading claims about a product's benefits are quite common. For example, drinking a sports/energy drink does not automatically mean you will become a gifted athlete, and taking certain weight-loss supplements will certainly not guarantee you a perfect body like the model in the commercial. Critical customers sometimes file lawsuits against companies whose promotions they feel are deceptive. Check out the article, "People Who Felt Tricked into Thinking Vitaminwater was a Health Drink Might Be Compensated with Cash (Links to an external site.)" by Lara O'Reilly. Are there any products that you think use deceptive promotions? Promotion manipulates consumers.Critics feel that promotion persuades people to buy goods or services that they do not want or need. While promotion cannot make people act against their will, promotion does influence purchase behaviors. Some promotion is offensive.Much promotion, especially advertising, is considered to be in bad taste, vulgar, and insulting to human intelligence. Advertisements that are sexually explicit are often considered offensive. Promotion may create and reinforce stereotypes.Promotion is believed to create and reinforce stereotypes through portrayals of women or minorities. Women are, for example, often shown as sexual objects or as always being responsible for a household's cooking and cleaning chores. Promotion plays upon people's fears. By focusing on people's insecurities and the unfavorable outcome of not buying a product, promotion can sometimes play on fears. Advertisements for personal-hygiene products are notorious for doing this. No one wants to have bad breath or body odor, and these ads attempt to convince consumers that only their companies' products will work to prevent these problems.Make up for the poor quality of a good or service. A product's reputation will develop based on the quality of the good or service, not on its promotion.Immediately achieve major success for a company or its products. Promotion is believed to achieve better long-term rather than immediate customer response to the promotional message.Substitute for salespeople who are talented and well trained. For many goods and services, promotion just cannot take the place of qualified salespeople. Product promotion is specifically criticized for not adding any value to goods or services. In other words, the product is not improved or made better in any way by the money spent on promotion. And, it is believed by some that the cost of promotion increases the price that customers pay for goods and services. Finally, institutional promotion is sometimes attacked because: Institutional promotion may be costly. Money spent on institutional promotion may take money away from product promotion. The effectiveness of institutional promotion is difficult to measure. In controversial situations, institutional promotion might stir up debates when keeping a low profile might be better.

Consider the source

Today's salespeople have access to a wide variety of product-information sources. There's no excuse for being unprepared! Sources for product information include: Practical use/Personal experience. The best source of product information is actually using the product! If possible, such as with a smartphone or a tablet computer, salespeople should own the product themselves. Some companies provide salespeople with free or discounted models. Sometimes, though, it's not practical for the salesperson to own the product—perhaps it's a luxury car or a piece of manufacturing equipment. In cases such as these, the salesperson should still attempt to gather as much "hands-on" experience with the product as possible. Product manufacturers. Most manufacturers provide a wealth of information about their products. They may offer product manuals, informational DVDs, bulletins for product updates, etc. Current technology allows manufacturers to keep in touch with sales representatives more efficiently than ever before. Most product information from manufacturers is available online or through email, making communication quick and convenient. Salespeople might also visit manufacturing facilities to take tours and meet with the people who make the product. This is a great way to acquire useful product information. Testimonials/Customer feedback. Product users are helpful sources of information as well. Let's say that Francesca, a pharmaceutical salesperson, sells a certain brand of asthma inhalers to medical practices. Her close relationships with her clients allow her to obtain feedback about how patients are using the product, how it's helping them, why doctors prefer to prescribe it, etc. This type of information would be difficult for a salesperson to generate without customer feedback. Fellow sales representatives. Most salespeople are part of a sales team. Colleagues can be useful sources of product information, particularly colleagues who have been selling the product for a longer period of time. Product sales representatives. You're selling your product to customers, of course; but, who's selling it to you? Often, your company deals with sales representatives from a wholesaler or manufacturer. If these salespeople have done their homework, they should have a great deal of helpful product information to pass on to you. Marketing literature. The manufacturer or the salesperson's own company may have created product brochures or catalogs containing useful information. Not only can the salesperson use these to acquire important product knowledge, s/he can often pass them on to customers as well. Many companies now make their marketing literature available online. Here are a few examples: Nikon cameras (Links to an external site.) Viking kitchen products (Links to an external site.) Adobe software products (Links to an external site.) Training sessions. Sales training for specific products is a common source of valuable information, especially for new products. When a company launches a new product or product line, it often offers product training (either physical or virtual), and, if possible, salespeople should take advantage of these learning opportunities! Trade exhibitions. Many industries hold trade shows or fairs on a regular basis. Examples of these include the PGA Merchandise Show, (Links to an external site.) the International Builders Show, (Links to an external site.) the International Plastics Showcase, (Links to an external site.) etc. Attending trade exhibitions is an excellent way for salespeople to acquire information about the products they sell as well as competing products. Industry publications. Many industries have trade journals filled with worthwhile information about products, trends, etc. These types of periodicals include Interior Design, (Links to an external site.) The Progressive Farmer, (Links to an external site.) and Engineering News Record. (Links to an external site.) Salespeople often keep up with their industries' publications to acquire information about new products, product updates or improvements, and more. Internal sales records. Most companies keep sales records that may contain information about how customers use products, what problems or "glitches" they've experienced, what repairs have been required, etc. In the past, going through these sales records might have been a tedious task, but now many businesses have compiled sales records electronically and made them available to salespeople through a searchable intranet (internal computer network). Wikis, blogs, and podcasts. A wiki is a website that allows its users to contribute and edit content. A product wiki might be set up by the manufacturer, another business, or perhaps even a salesperson. Anyone who makes or sells the product would be able to add or find relevant information. Software company Oracle operates a wiki for its products. (Links to an external site.) A blog is a personal website where a person can post thoughts, opinions, photos, articles, etc. A blog might be a place to find customer product reviews or information from other salespeople. Some companies may even set up a blog to post information about a specific product. Here's a product blog for Au Lit Fine Linens, (Links to an external site.) a company that sells products to help you sleep. A podcast is an audio file made available for downloading from the Internet. Podcasts are available for almost every topic imaginable, from economics to current events to sports to architecture. Some companies have set up product-specific podcasts, which can be a helpful source of information for salespeople and customers alike. Other podcasts might be of general interest to an entire industry, such as Consumer Report's "Talking Cars" podcast, which can be found here (Links to an external site.).

Institutional promotion

Unlike product promotion, institutional (or corporate) promotion does not attempt to sell a good or service. The primary goal of corporate promotion is to create a certain image of the company in the customers' eyes. This can be accomplished by informing customers about the company, its ideas, and its philosophy. Often, companies take positions on important issues, and these, too, are communicated to the public through institutional promotion. The belief is that corporate promotion can create favorable public attitudes toward the firm, which will lead to increased product sales. For example:New Balance Athletic Shoes, Inc. has been a national sponsor of the Komen Race for the Cure since 1991. The annual event raises millions of dollars to fund breast cancer research. New Balance Athletic Shoes' involvement reinforces in consumers' minds its commitment to community health issues. Institutional promotion can be used to: Change a particular attitude toward a firm or its productsThe NFL received quite a bit of bad press after several of its players were involved in domestic violence. In an effort to clean up this negative image, the NFL partnered with No More, a group that combats domestic violence, to create public service announcements starring popular players.You can read more about the NFL's strategy and see the promotion in the article, "The Team Behind the N.F.L.'s 'No More' Campaign (Links to an external site.)" by John Koblin. Inform consumers of the company's interest in social or environmental issuesCorporate giant IBM has a long-standing commitment to environmental leadership in the business world. The company has a written environmental-affairs policy and participates in many voluntary initiatives, such as membership in the Wildlife Habitat Council. Inform the public about the company's futureWhat if a company changes its name, buys another company, or dramatically changes it services? It can use promotion to let the general public know about the change. When HBO decided to offer HBO NOW, a standalone streaming service, it engaged in a promotional campaign to inform viewers. Inform consumers of the company's name and its type of businessWhen a new restaurant opens in your city, how do potential customers find out about it? The restaurant will likely run promotions to let diners know what kind of food and atmosphere it offers. Show the company's commitment to quality, technology, or researchThe world's largest research-based pharmaceutical company, Pfizer, uses institutional promotion to demonstrate to the public its commitment to using research to help people live longer, healthier, happier lives. Enhance company morale and recruit new employeesBattelle, a global science and technology corporation, holds many recruiting events and initiatives all over the country. Build or reinforce a favorable company imageMany companies donate money or products to regions affected by natural disasters in hopes of building a highly favorable company image. Coca-Cola is one company that often donates to help those affected by hurricanes, earthquakes, and tornados. You can read about some of Coca-Cola's disaster relief efforts in the article "Disaster Relief & Recovery (Links to an external site.)" on the company's website. How do these promotions affect your view of Coca-Cola?

A fact-finding mission

You might be wondering, "Do I really need to know all this information about the products I sell? When will I use it?" You never know what needs, issues, and questions will arise from your customers during a sales presentation. Every customer is unique, and so is every sales presentation. You will need appropriate product information to: Show how the product fits the specific customer's needs Compare the product to competitors' products Overcome customer objections Explain cost, delivery, etc.

Step two—Know where to get facts about product features.

You know what features to look for in your product, but where do you get this information? Here are the best places to look: The product itself. The salesperson should study and, if possible, use the product before selling it to customers or clients. For example, a salesperson isn't likely to be able to answer questions about computer software unless s/he has actually used that software. Firsthand knowledge, gained by experience, tends to give a salesperson confidence. Customers. If it is not practical for you to learn the features and benefits of your product by buying it yourself (if you are selling expensive manufacturing equipment, for example), the next best source of information could be your customers. Let's say you sell a machine that produces metal parts to a manufacturing plant. You've never used the equipment, but your customer lets you know that it performs better and doesn't break down as often as the plant's old machine. You can use this testimony in future sales presentations to demonstrate the value of your product. Manufacturer's brochures and publications. Brochures, publications, and other materials furnished by the manufacturer are usually free. You can also check out the product's website or even write to the manufacturer if you need more information. These sources are especially helpful when looking for information on construction and materials. Other sales personnel. If you don't know, ask! This is especially true if you're just starting out in sales. Take advantage of your coworkers' and supervisors' knowledge if you need information about the features of your product(s). Promotional materials. A great deal of product information is given in product bulletins, catalogs, manuals, and other promotional materials. For example, a catalog might give the following feature-benefit statements for a pair of hiking boots:"Premium, full-grain tumbled leather and an advanced arch-support system provide comfort.""Rubber outsole provides excellent traction."View "Becoming Familiar with Your Products" by SOCO Sales Training to learn some valuable ways to improve product knowledge:

Benefits package

A benefit is the personal satisfaction or advantage that a customer wants from a product. It is how a feature helps a particular buyer. For customers and clients, it answers the questions: "How will I (or my business) benefit?" "What's in it for my business and/or me?" When talking about a certain piece of equipment's 24/7 customer service feature, for example, a salesperson might say, "This means you never have to wait to get your machine fixed." There are three types of benefits that a salesperson should be able to explain to customers or clients: Obvious or apparent benefits are advantages that need little explanation by the salesperson. The customer already knows, or can easily recognize, the benefit. Let's say you are selling neutral-colored carpeting to a business. An obvious benefit of this carpeting is that your clients will not be limited in their selection of colors for their office furniture. Even though benefits such as this are obvious, you should still point them out and use them to prove the value of the product to customers. See how Honda points out a very visible benefit in the "World of Meh (Links to an external site.)" commercial for its 2019 Honda Insight. Unique or exclusive benefits are advantages that are available only from your good, service, or business. If your product has one unique or novel feature that can be translated into a benefit desirable to customers, you have a definite selling advantage over your competitors. For example, a virtual reality headset that isn't dependent on computer or phone connections offers superior mobility and convenience. Learn about the benefits of the Mirage Solo by Lenovo:Lenovo Mirage Solo - Benefits of Standalone VR. (Links to an external site.) Hidden benefits are advantages that cannot be seen or understood without the assistance of a salesperson. If a customer is buying a pair of shoes, s/he can see the shoes' color and style but won't be aware of how comfortable they are until the salesperson persuades him/her to try them on. And, if a small-business owner is buying a computer, s/he won't know about the available warranties or the 24-hour helpline unless the salesperson explains. See the hidden benefits of sunglasses promoted in this SelectSpecs video:Tag Heuer Sunglasses with Essilor Lens backside Antireflective Technology. (Links to an external site.) Pointing out the benefits of your product—whether obvious, exclusive, or hidden—will enable you to increase your sales. Remember, clients don't buy the product—they buy what the product can do for them.

Promotional objectives

Organizations have three major objectives when using promotion to influence customers. These objectives are to inform, to persuade, and/or to remind.

Do your homework

Acquiring product information for selling does not need to be a difficult or time-consuming task. Remember, there are many, many information sources available to you! Following these steps can help you on your way: Step One—Use the product! As you know, practical experience is the best source of product information for selling. If it's not possible to buy the product for yourself, ask your company if you can use it for at least a trial period of time. If the product is not meant for individual use (e.g., a piece of industrial equipment), visit the manufacturer or a client to get familiar with it up close. It's also a good idea to try competing products as well, so you know what you're "up against." Step Two—Read up on all available product literature. This doesn't mean that you need to pull an all-nighter reading every brochure, catalog, and product manual out there. It does mean that you intentionally keep up with the available literature for your product. Spending just an hour or two a week should do the trick! Step Three—Get connected. Participate in product training sessions. Attend trade shows. Contact your product's manufacturer to receive online updates. In today's environment of instant communication, there's no excuse for not keeping up on the latest and most valuable product information. Step Four—Talk to your customers. If possible, develop relationships with your customers. Keep in touch with them after they've purchased a product to find out how they like it, how they're using it, and what its most useful benefits are. You can also talk to customers who have used competing products to see how they compare. Step Five—If you don't know something, find out fast! No salesperson is perfect. There may be times when a customer asks a question you can't answer or has a need you're not quite sure your product will meet. When this happens, let the customer know you will find the correct product information as soon as possible. Then, do it! You'll be acquiring more helpful product information for yourself and making your customer happy at the same time.

Summary (A)-15

An important part of selling is determining what each customer is looking for in a good or a service, then proving that your good or service has the features that will benefit him/her. This is known as feature-benefit selling. A feature is a physical characteristic or quality of a product. A benefit is the personal satisfaction or advantage that a customer wants from a product. Three types of benefits are obvious or apparent benefits, unique or exclusive benefits, and hidden benefits.

Who uses promotion?

Any organization that has something to sell uses promotion at one time or another. These organizations include: Large and small businesses Government agencies Special interest groups Producers Intermediaries (middlemen) Individuals, such as political candidates Businesses that manufacture and sell tangible products, such as phones, shoes, cars, and soft drinks, rely heavily on promotion. They develop creative promotions to reach a wide audience and sell their products. Because of this intense promotion, everyone is familiar with companies such as Apple, Nike, Honda, and Pepsi. Businesses that sell services, such as hair salons, day care centers, and medical and dental offices, also use promotion. They inform target audiences about the benefits of their services to convince customers to buy from them rather than from competitors. Think about it—how many different places in your town can you go to get your hair cut? What factors contribute to your choice of one business over another? Other companies and organizations promote images or ideas rather than specific products. For example, the National Cattlemen's Beef Association uses advertising to promote the image of beef as a healthy, popular food. Some companies use promotion to maintain a prestigious corporate image, such as General Electric with its "imagination at work" promotion. Other companies use promotion to improve a tarnished image. Many fast-food restaurants have attempted to establish healthier images for themselves after being accused of contributing to the country's obesity problem. Check out the article "Fast-Food Resolution: Transform Junk Food Image (Links to an external site.)" from The Associated Press. It talks about the challenges fast-food chains like McDonald's face when trying to redefine themselves as a healthier option. Government agencies and special interest groups use promotion to communicate ideas as well. You will often see advertisements or public service announcements regarding seat belt use, drunk driving, pollution, etc. During an election campaign, you will see many promotional messages supporting or detracting from certain candidates.

Promotion Persuades

Businesses and organizations also use promotion to persuade customers to buy a product or to have certain views or opinions. Persuasive promotions are designed to stimulate some sort of action in customers. They are often used while a product is growing in popularity and competing with many similar products. Companies must persuade customers to purchase their products over all the other available choices. Right now, you may have many different choices for SAT prep courses and study materials. Each company is appealing to your desires to succeed on the test and to earn college scholarships. The company or product you ultimately choose must convince you that it offers high success rates and great value for the price. Companies often use tools such as coupons, free samples, rebates, and contests as part of their persuasive promotions. These incentives may provide the boost a customer needs to choose one product over another. Can you think of a time when such an incentive persuaded you to buy? Some companies periodically make changes in their products or images and promote those changes hoping that they will have a persuasive effect on customers. Many advertisements emphasize that the products are "new and improved," "extra strength," "vitamin enriched," or "environmentally friendly." Other promotions stress a new image for the company itself. For example, several fuel companies have begun promotions explaining their quests to find clean energy and conserve natural resources. These promotions are aimed at persuading customers to have positive opinions of these companies. In the article "Information or Persuasive Promotion in Your Marketing Plan (Links to an external site.)," Nancy Wagner explains more about these marketing objectives.

What is promotion?

Choose any product you've purchased within the past several months. What made you want to buy it? How did you hear about it? How did you know where it was available and how much it was going to cost? To let you know about this product, its marketers used promotion. Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. It is the element of the marketing mix that encourages customers to buy or to have certain views or opinions. Promotion can also be described as marketing communication because it involves sending a marketing message to a target audience. A business communicates a message to a customer who receives the message. The purpose of the message is to tell customers about certain goods, services, or ideas and persuade them to buy or to form an opinion. The customer gives feedback to the business by buying, or not buying, the good or service being promoted; or accepting, or not accepting, the promotional point of view or image. Can you think of some promotions that have caught your attention? What about some that have not been as persuasive?

Summary

Companies and organizations have three main promotional objectives. These are to inform, to persuade, and to remind. Promotions may aim to achieve one, two, or all three of these objectives.

Preparing a feature-benefit chart

Customers depend on salespeople for information and advice. That's why it's so important to be completely familiar with the features of your product and be prepared to translate features into benefits for individual customers. To do this, it's helpful to create a feature-benefit chart for your product. Therefore, you must know: What features to look for in a product Where to get the information you need What to do with the information when you get it

So What?

Have you ever tried to take a test without studying? Or participate in a musical performance without practicing? Even if you haven't, you can probably imagine what the outcomes would be. A lack of preparation produces poor results! This same principle applies to sales as well. To be successful, salespeople must be well prepared. And, to be prepared, they must know as much about the products they sell as possible. Read on to learn more about what product information is important to salespeople, when they use it, and where they find it!

Summary (A)-14

Having appropriate product information benefits a salesperson by boosting enthusiasm, increasing confidence and credibility, ensuring accuracy in sales presentations, helping overcome customer objections, and increasing sales. Salespeople should know important information, such as how a product was made, how a product should be used, what discounts are available, etc. There are many different sources of product information, including personal experience, customer feedback, marketing literature, and more.

A word to the wise

Here are a few general guidelines to keep in mind when acquiring product information for use in selling: Don't rely on your selling skills alone. You might be the top salesperson in your company, someone who is able to "sell ketchup to a person wearing white gloves." But, you still need appropriate product information to be successful. Selling skills alone can't answer all of a customer's potential questions or explain how a product works. Don't forget to acquire knowledge of your industry as a whole. Product information is important, but you have to be able to put it into the proper context. For example, what's the use of knowing everything about the bank accounts you can offer customers if you don't know what is going on in the financial industry and in the overall economy? Pay attention to current trends in your line of work. Know your target customers and what's important to them. When acquiring product information, you'll want to keep your eyes open for the data that are most relevant to your target customers. Your business might, for instance, sell ceramic tile and other flooring to individual and business customers. You deal exclusively with individual customers. They need more basic product information as well as a lot of "how-to" advice. Therefore, you'll want to focus on acquiring this type of information rather than the highly technical material. Avoid "expert-itis." In other words, don't overload your customers with so much product information and jargon (industry-specific language) that they become confused. Product information is an essential selling tool, but you must be selective about what you share with each customer. The more you listen and understand the customer's needs, the better able you should be to select the right product information to provide. Remember—features tell, benefits sell. What this phrase means is that explaining features tells a customer the facts about a product, but explaining benefits provides a reason for her/him to buy it. You may know everything there is to know about a certain model of camera you sell, but if you can't translate those features into benefits for your customers, you will probably not be successful at selling. For example, you may know that the camera weighs a little under a pound, but what your customers want to know is that it's light and will be easy to carry on vacation. For more on the differences between features and benefits, read Dan Shewan's article

So What?

Imagine that you're an entrepreneur who just developed a new iPhone app. You hope that every iPhone user will buy it and make your product successful. But how will your potential customers even find out that your app exists? How will they know what your app does, how it will benefit them, where they can purchase it, and how much it costs? The answer is promotion! Promotion, which allows you to communicate information about your new app to your target audience, is essential to the success of any company or product. Good promotion can get your product into the hands (literally!) of millions of satisfied customers!

The more you know

In most careers (as well as in life!), preparation is essential. Journalists must conduct research before beginning a new article. Contractors must gather all the appropriate tools and permits before beginning a construction project. Personal chefs must have all their recipes and ingredients ready before beginning a meal. And, salespeople must be armed with product information before they attempt to sell.

Promotion benefits

Increased salesBusinesses use promotion to spread the word to customers that they offer certain products, hopefully convincing those customers to buy. If a business is managing its operations effectively, increased sales should lead to increased profits. Strong positionAs a result of promotion, businesses and organizations are perceived in certain ways by customers. Sales-oriented companies may use promotion to position themselves as more customer-friendly and harder working than their competitors. Political candidates often use promotion to position themselves as champions of certain causes, such as improved healthcare or lower taxes. Organizations advertise their positions on issues by using slogans such as "Buy American" and "Save the Whales." Increased customer loyaltyBusinesses spend billions of dollars on promotion to create specific company images. Customers identify with these images and see themselves in the roles or lifestyles shown in the promotions. For example, what is it that draws you to your favorite clothing store? It may be the store's image of style and fashion. On the other hand, let's consider discount stores. Customers are often loyal to certain discount stores, such as Walmart or Target, because of the image of quality products at reasonable prices. Increased product/company awarenessPromotion also helps customers to learn that products exist and where they are available. After seeing a promotion for the newest iPhone, for example, customers may not immediately buy the phone. However, they will be aware that the phone exists, and they will know where they can buy one. Then, the next time customers are in the market to buy a phone, they may remember the iPhone promotion and choose Apple. Better-informed, more satisfied customersCustomers are better informed when businesses promote product benefits, features, and prices. Informed customers are in a better position to choose between or among products and make buying decisions that will best satisfy their needs. Can you think of a time when promotion has helped you make a better buying decision? Increased employment opportunitiesMillions of people are employed in the field of promotion. Many companies hire staff and maintain their own in-house promotional departments. Others hire the services of professional public relations and advertising agencies.Promotion also encourages demand. When demand for a product increases, businesses must be able to produce the product in the desired quantities. Therefore, promotion helps to create a need for mass production, which in turn creates a need for more jobs. Increased media supportPromotion helps to pay for mass media—television, radio, newspapers, magazines, Internet, etc. Without promotional dollars from advertisers, mass media would probably pass along their costs to the media users—that means all of us!

Step three—Create a feature-benefit chart.

Now that you know what type of information you need and where to obtain the facts about your product, what's the next step? Preparing a feature-benefit chart for your product! Each product you sell has a number of features. List all the product's features on the chart, beginning with the obvious or apparent ones that a customer or client will see first. Then, list the less obvious or hidden features of the product. For each feature that you've identified, ask yourself, "What does this mean for the customer?" Write each benefit beside its feature. A feature can often provide more than one benefit. Take a look at the following example to see how features and benefits can be arranged on a chart: If you sell a wide variety of products, it's helpful to arrange them alphabetically. Preparing this chart will help you remember the features and benefits and should aid you in developing meaningful selling techniques.

Characteristics of effective promotion

Persuasive.Successful promotion convinces potential customers that the product being offered for sale can satisfy their specific needs. For example, Android phones and iPhones are popular smartphone choices. The companies that produce these phones want to appeal to customers and promote their products as being easy to use, technologically advanced, and affordable. They want customers to automatically consider their phone as the best choice. They create many persuasive promotions to achieve this goal. Relevant.Promotional messages should be relevant to the target audience. Businesses must develop their promotions so that they will be of interest to the people who receive them. If a company wants to sell nutritious snacks, it should make sure that its message appeals to potential customers who care about living a healthy lifestyle. Appropriate.The way that the promotional message is communicated should be appropriate for the product, image, or idea. Some forms of communication are better suited for use with certain products and their markets than others.Reebok, for example, wouldn't try to sell its shoes and other athletic gear by limiting promotion to a local area. The company develops national and international promotions to reach as many potential customers as possible. A local clothing boutique, on the other hand, would plan its promotion on a much smaller scale. Factual.Any message that a business communicates should be honest and truthful. It can be creatively presented, but it must be based on facts. The message should not mislead the consumer who receives the communication. Honda is known for its long-lasting vehicles, so it might use that strength as the foundation for a promotion, but it would be dishonest for the company to promote its cars as running for 300,000 miles with no problems! Repetitive.The communication conveyed in promotions should be repeated over and over. Many customers would not remember the message if they heard it only once. Even the most memorable messages need to be repeated.Repetitive messages create sustained interest in products or ideas. Although everyone has heard of Pepsi, the company continues to promote its products in a variety of different ways to make sure that customers don't forget. Coordinated.There are many different ways that companies or organizations can convey promotional messages. They may use advertising, utilize social media, offer coupons, have a feature article written about them in a magazine, etc. To achieve success, these promotional messages should be coordinated and in sync with each other. Each method should support the objectives the company is trying to achieve by engaging in promotion.

Summary (B)-14

Product information is necessary during a sales presentation—to show how the product meets customer needs, to answer customer questions, to explain pricing and discounts, etc. To be successful, salespeople shouldn't rely on selling skills alone. Rather, they should acquire knowledge of their industries as a whole, know their target customers' needs, avoid "expert-itis," and remember that customers are looking for benefits, not features. To acquire product information, a salesperson should use the product, read up on product literature, get connected to various sources of product information and training, talk to customers, and commit to finding out anything they don't know!

Step one—Find your product's features.

Products may have many different features. Some of the most common ones are: Construction and materials. Customers or clients often ask questions such as:What is this material?Who makes it?How is it made?What's the difference between these two items? For example, imagine a client is purchasing office furniture for his/her business. S/He wants to know what sort of wood the desks are made out of, how they are constructed, and how each model of desk is different. Knowing the details of construction and materials will help you show the quality of your product. Appearance and style. Construction and materials may be important, but what about appearance? Customers consider style in everything they buy—clothing, appliances, vehicles, and more. Think back to the office furniture example. Of course the client is interested in what each desk is made out of, but s/he wants to make sure it looks good, too. A smart salesperson will point out the aesthetic features of the product by highlighting the beauty of the wood or the attractiveness of the design. Unique or novel features. You have a definite selling advantage if your product has desirable features that your competitor's does not. For example, if you offer free delivery but your competitors don't, you have a unique feature to point out to your customers. Durability. How long a product will last and give dependable service is essential information that you must be prepared to give your customers or clients. Again, a thorough knowledge of your product is necessary to answer questions such as, "How many miles can I expect to get from these tires?" or "How many pages will this ink cartridge print before it needs to be replaced?" Product uses. The customer wants to know what the product will do and how it can be used. If it is not possible to demonstrate the product, the salesperson should explain its uses to the customer. For example, if a restaurant is in the market to buy an appliance that functions as a food processor, mixer, and blender, the salesperson must be familiar with all of its features in order to explain its uses. Service and warranty. In some cases, whether or not a customer buys depends on the service your company offers and/or the warranty on the product. This is especially important when selling products such as appliances, electronics, and vehicles. If your company also services its own products, you have a definite benefit to offer your customers. When selling a copier, you might say to your client, "All our machines are guaranteed for three years. This means that we will replace any parts and make all repairs without any charge to you."

Advantages of promotional activities

Promotion contributes to economic growth and business activity by encouraging consumers to purchase and use new and improved products. Society also benefits from promotional activities because of the money these activities add to our economy and the jobs they create. The mass communication media—radio, television, newspapers, and magazines—are either partially or completely supported by promotional dollars. Without this money, financial support of the media would probably be passed along to customers. The companies that use promotion benefit directly from their efforts. These activities create awareness of the company and its products. As a result, customers may become interested in a good or service and ultimately make a purchase. Corporate promotion can also help to develop or enhance a company's image. And as you now know, this is believed to influence sales positively. Customers benefit from promotional activities that encourage a higher standard of living. Promotion raises our standard of living by making us aware of the goods and services available to meet our needs. Promotional activities also make us better educated customers, and better educated customers make more intelligent purchases.

Summary

Promotion is a marketing function needed to communicate information about goods, services, images, and/or ideas to achieve a desired outcome. It is a marketing communication that involves sending a marketing message to a target audience. Any organization that has something to sell uses promotion at one time or another. Effective promotions are persuasive, relevant, appropriate, factual, repetitive, and coordinated. Promotion benefits companies, customers, and the economy by creating increased sales; strong position; increased customer loyalty; increased product/company awareness; better informed, more satisfied customers; increased employment opportunities; and increased media support.

Summary

Promotional messages encourage customers to think favorably about the company or to buy its products. Two distinct types of promotional messages are product promotion and institutional promotion. Product promotion persuades customers to buy a particular good or service. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. Institutional promotion creates a certain image of the company in the eyes of the customer. There are three kinds of institutional promotion—public service, public relations, and patronage.

Summary (B)-15

The first step in preparing a feature-benefit chart is finding your product's features. Look for construction and materials, appearance and style, unique or novel features, durability, product uses, and service and warranty. The second step is looking for product information in the right places—the product itself, customers, manufacturer's brochures and publications, other sales personnel, and promotional materials. The last step is to create a feature-benefit chart, listing the product, its features, and the benefits those features provide to customers.

So What?-12

The first thing Allie wanted when she woke up this morning was a nice, hot cup of coffee. So, she threw on jeans and a sweatshirt and went down to the corner coffee shop, where she presented the cashier with her 50-cents-off coupon. On the way home, she spotted a billboard for a new shoe store opening downtown. "I could use a new pair of running shoes," she thought to herself, so she headed that way. At the store, Allie received help from a salesperson. He was very knowledgeable about all the running shoes and helped her decide on the perfect pair. On the way home, Allie flipped on the radio and heard a news story about how the shoe store was helping to revitalize its particular district of downtown. On this typical morning, Allie was surrounded by promotional messages. Like her, we are also surrounded by these messages every day. Promotion is an important part of the marketing mix that communicates information about goods, services, images, or ideas to customers. Promotion can accomplish a number of objectives—building awareness, increasing demand, differentiating a product from its competitors, highlighting a product's value, and changing or reinforcing customer attitudes. Read on to learn more about the different types of promotion!

Product promotion

The specific goal of product promotion is to persuade customers to buy a particular good or service. Examples of product promotions include: Advertisements for Verizon wireless phone plans, Red Bull energy drink, or Wrigley's gum Cents-off coupons for the purchase of Doritos, Burger King Whoppers, or Revlon lipstick Salespeople's efforts to convince consumers to buy a diamond bracelet, an iPhone, or a Honda Civic Television interviews in which a movie star encourages viewers to see his/her latest film Product promotion, therefore, is used to stimulate purchases of goods or services. Specifically, product promotional activities can: Create awareness of a good or service Inform customers about product features Encourage interest in and inquiries about a good or service Inform customers where a product can be purchased Build a reputation for a product Create excitement and motivate retailers and salespeople

Adding it all up

There are many different methods of promotion that companies can use. While some are free or nearly free, such as issuing a press release or creating a social media profile, many are costly. Advertising fees, costs for sales promotions and contests, salaries for promotional and sales staff—they can add up. When marketers plan promotions, they know there are costs associated with each task involved. Considering these costs ahead of time helps marketers to create reasonable promotional budgets for each promotional effort.

Summary (B)-12

There are several advantages of promotional activities. They contribute to economic growth and business activity, and they support the mass communication media. Companies benefit directly because these activities create awareness of the company and its products. Customers benefit because these activities raise our standard of living and make us better educated customers who are able to make more intelligent purchases. Critics list many disadvantages of promotion as well. Promotions can be deceptive, manipulative, and play on consumers' fears. They can be offensive and reinforce stereotypes. Also, they have limited abilities. Product promotion does not add value to goods and services. Institutional promotion can be costly and difficult to measure.

Kinds of promotional tools

There are several kinds of promotional tools that marketers use to communicate with customers. You are probably familiar with some of these tools, which include: Advertising Publicity Personal selling Sales promotion These tools can be employed in all promotional efforts. When using these tools to communicate, businesses generally create two distinct types of promotional messages—product promotion and institutional (or corporate) promotion.

Kinds of product promotion

There are two kinds of product promotion—primary and secondary. Primary product promotion aims to stimulate demand, or desire, for an entire class of goods or services. The emphasis is on the product and its uses, rather than on a particular brand. For example:When you see television advertisements for beef or pork, you are probably receiving promotional messages from either the Cattlemen's Beef Board or the National Pork Board. Each organization wants you to choose its product to put on your dinner table. However, the advertisements aren't pushing a particular brand of beef or pork; rather, the competition is between the two different industries. Primary product promotion is especially useful and necessary for introducing a new concept or a totally new product. Secondary, or selective, product promotion is used to stimulate demand for a specific brand of a product. Once the product class is already established, efforts can be focused on promoting a brand and its features or benefits. For example:A company that makes dairy products would use advertising to promote its brand of milk, on the assumption that the American Dairy Association and Dairy Council promotion is stimulating primary demand for milk. Essentially, a business or industry uses primary product promotion to compete against other industries, such as soft drinks versus fruit juices. Secondary product promotion is used to compete against other makers of the same type of product, such as Coca-Cola versus Pepsi.

So What?-15

Think back to the last major purchase you made. Maybe it was a tablet computer, a new pair of running shoes, or a brand-name handbag. What was your interaction with the salesperson like? You may not have known it, but chances are good that s/he used feature-benefit selling in the sales presentation. If you bought a tablet, for example, the salesperson might have pointed out that it's much smaller and lighter than a laptop computer. To you, the size might mean more convenience in taking it from place to place. Did you know that the tablet's size and weight are features, while its convenience is a benefit? You can see examples of feature-benefit selling everywhere, if you know what you're looking for. It's an important phase of the selling process that you should be familiar with if you plan to pursue a career in sales or marketing. Read on to learn more about features, benefits, and how to create a feature-benefit chart.

Why it's important

When a salesperson is thoroughly knowledgeable about her/his products, it results in big benefits. Having the right product information: Boosts a salesperson's enthusiasm. One of the best tools a salesperson possesses is his/her personal belief that the product is a truly worthwhile product. However, it's difficult to get excited about a product that you don't really know that much about! That's why having enough product information is so important. For more on the importance of believing in your product, read Kevin Harrington's article "One Thing You Must Have To Sell More of Anything." (Links to an external site.) Increases a salesperson's confidence and credibility. As a salesperson, it's nerve-wracking to go into a sales presentation without having all the product information. How will you answer the customer's questions? How will you help the customer understand how the product meets her/his needs? On the other hand, if you enter a sales presentation prepared with thorough product knowledge, you'll feel confident and will impress the customer with your credibility. This makes it much easier to close the sale! Ensures accuracy in sales presentations. Giving false information during a sales presentation—whether it's intentional or accidental—does not reflect well on any salesperson! Knowing your products inside and out helps guard against the potential pitfall of giving your customers the wrong ideas about what they're buying. Getting all your product facts straight protects your customers, your company, and you! Helps a salesperson overcome customer objections. Overcoming customer objections may be the most difficult part of an entire sales presentation. It is nearly impossible to do so effectively without sufficient product information. For instance, what might you say if a customer complains, "This computer doesn't have enough memory to store all the pictures I take for my amateur photography business"? Of course, you would want to counter with facts about the computer to prove that it meets the customer's needs—or perhaps suggest another product that works better. And, you can't do that if you don't know what you're talking about. Increases sales. Because of all the reasons discussed above, having appropriate product information increases sales. It just makes sense that an enthusiastic, confident, credible salesperson who presents facts accurately and is equipped to address customer objections is going to be successful at selling. This is the best benefit of all!