MARK 3337 Exam 2

Product

-buyer believes that one product is superior to others -preference for specific brands, quality, price, design/engineering

Need payoff questions

-questions that gain the commitment to move the selling process forward -summarize the needs agreed upon by the client and ask for commitment to work together toward solution -buyer responding negatively means the salesperson has not identified a serious need

Price Strategy

1. Maximize profit 2. Maximize market share 3. Maximize product trial

Maslow's Needs

1. physiological- primary/basic needs (food, water, sleep shelter) 2. security- free from danger (gun, health insurance, alarm for home) 3. social- need to belong (clothes we buy, social media) 4. esteem- feel worthy in the eyes of others (college degree) 5. self actualization- self fulfillment, tapping into full potential

The difference between Consumer vs. Organizational Buyers

Consumer: Habitual (something bought regularly but not brand loyal), Variety Seeking (looking for a specific brand), Complex buying (higher price point that you need help with ex: cars) Organizational: New-task buy (first time a business will be purchasing item), Straight rebuy (rebuy from same seller), Modified rebuy (buying upgraded model)

Video Interview - Dell #1 & #1

Kristin Powell, UH alumni, works at Dell EMC

Walmart

Positioning: Low cost, convenience Differentiation: Save money, live better

Product Strategy

a well-conceived plan that emphasizes becoming a product expert, selling specific benefits, and configuring value-added solutions

Buying Motives

and aroused need drive or desire that stimulates behavior to satisfy the aroused need. helpful to discover the dominant buying motive

Customer Strategy

carefully conceived plan that results in understanding the customer's perceptions and maximizing customer satisfactions and responsiveness

Cost Benefit Analysis

determines the actual cost of the purchase and savings that the buyer can anticipate from the investment.

Selling New Products

develop new expectations, change habits, establish new standards, build product desire, create new markets

price strategy drawback

excessive focus on low price and generous discounts: -High emotional involvement with brand -Low-involvement buyers focus on price -Role of price-quality relationship in sale -Many buyers, particularly business-to-business, rank service above absolute price

How to effectively build rapport and meet a prospect

first impressions: people make judgements on you based on what they see, hear, and sense introductions: dress for the client, be on time, unplug and engage, research leads to great impressions, be confident, curious, and communicate your value

Portfolio Model for Classifying Prospects

forecasts potential sales into 4 categories and how much effort will be exerted. -strategic accounts- attractive accounts which need to be protected form competition (most effort) -problem accounts- attractive if competitive weakness can be overcome (moderate coverage) -hold accounts- if current sales can be maintained with minimal effort(not quite enough money, moderate coverage) -drag accounts- accounts not really worth personal selling

cultural

group with common language, environment and subcultures.

Prospect Base

made up of current customers and potential customers

steps in the buying process model

needs awareness, evaluation of solutions, resolution of problems, purchase, implementation

Group Influences

people around us influence our buying decisions. these are: ~role influences ~reference groups ~social class ~culture and subculture

Qualifying Prospects

process of identifying prospects who appear to have a need for your product and should be contacted

Girard's Ferris Wheel - how to prospect

shows the relationship between prospecting and loss of customers due to attrition -how to prospect: ~referrals ~centers of influence ~directories ~trade publications/shows ~telemarketing ~direct mail ~email and ads ~web sites and computerized databases ~cold calling ~networking

Product Life Cycle Stages

stages of a product from the time it is first introduced to the market, including the stages of: ~introduction ~growth ~maturity ~decline

Organizational Buyers (B2B)

~buy goods and services for use in the production of other production of other products and services that are sold, rented or supplied to others, not for personal consumption ~decisions made by many, made to meet precise technical specs ~purchase is rational ~decision may be slow and complex

Consumer Buyers (B2C)

~buying behavior of individuals and households who buy goods and services for personal consumption ~decisions made by one ~purchase based on brand reputation, personal recommendation, on emotion ~may have little product behavior

reference group

~categories of people you see yourself belonging to ~buy things associated with that group ~ex: UH student buys clothes with the UH logo

Patronage

~cause the prospect to buy products from one particular business ~past experience was positive ~relevant elements: superior service, product selection, competent sales staff ~ex: only going to academy to buy nike

Attrition

~every salesperson must cope with customer attrition ~customer may have a one time need ~customer may move outside of the salesperson's territory ~firm may go out of business or merge ~loyal buyer or purchasing agent may leave the position ~sales may be lost to the competition

Total Product Concept

~generic product ~expected product ~value-added product ~potential product ~example is education at UH

social class

~group with similar values, interests, or lifestyles who we identify with in a large sector socially ~ex: age group, religion, LGBT

Competition - Understanding it and knowing how to address it

~must acquire facts about competing products before sales presentation ~be able to discuss your strengths and weaknesses relative to the competition ~do not refer to competition directly during sales presentation ~only discuss competition if you know your facts ~never criticize the competition ~be prepared to add value

Product Selling Model - three parts, how to they relate

- Clusters of satisfactions 1. Product (quality, large selection, new product improvement) 2. Salesperson (acts as a partner, knowledgeable, trustworthy, provides service after sake) 3. Company (delivery, orientation and training, quick response time, and customer service) -All meet the needs of these customers

Parts to becoming a product expert

- product development and quality improvement processes - performance data and specification - maintenance and service contracts -price and delivery

Buyer Profile - who you are, what you are selling, who you are selling to

-Account Executive at Dell EMC -PowerProtect DP Series, an appliance that will back up and restore organizations' mission-critical application data -Shanon Berry, IT director at UH

Explosion of Product Options - Example given in class

-Domestic and global markets overflowing ->30,000 consumer products produced each year -Good news: buyers have choices -Bad news: more choices makes buying process more complicated -ex: Nissan GTR options

Price strategy kinds and benefits

-Each stage of the life cycle -Setting price can be a complex process -Some firms set prices to maximize profits (porsche) -Others set a market share objective (walmart) -Pricing strategies reflect a product's position in the marketplace

Features and benefits - Bridge Statements

-Features: include data, facts, and characteristics of product or service -Benefits: include whatever gain is provided to the customer (general and specific) -Bridge Statements: transitional phrase that connects a statement of features with a statement of benefits, connect features of products to benefits they receive, use the word "because"

Product positioning options

-Position as new or mature -Position based on price -Position based on value-added

Emotional buying motives

-acts due to passion or sentiment -emotional appeals common -if 2 products are identical the salesperson who "connects" has the advantage

The purpose of asking the SPIN questions

-to create a customized proposal -once the main needs are identified, ask the client to prioritize -match features and benefits of the company/service/product that best meets the needs -custom approach to selling based on individual situation. -to find the need beyond then need

Implication questions

-used to help the prospect to see how your business, service, or product is the solution to their problem -questions take the need further and have the prospect think about the ramifications of the situation -conducted only after need is identified, pain or gain -help the buyer realize the costs of doing nothing outweigh the cost of the solution

4 Strategies to researching a prospect

1. Learn about the company 2. Do a background check 3. Hypothesize pain points 4. Be curious to know more

4 areas total product concept

1. product (general): basic, substantive product you are selling ~ex: higher education 2. expected products: customer's perceptions, everything that represents the customer's minimal expectations ~ex: good teachers, parking, classroom, place to study 3. value-added product: sales person's knowledge, exists when sales people offer customer more than they expect -ex: what UH knows they can provide, getting into games for free, the UC, the rec center 4. potential product: mutually discovered possibilities, salesperson should conceptualize the product into new possibilities, refers to what may remain to be done, what is possible ~ex: UH is tier 1 making your degree worth more

Ways to Collect and organize prospect information

- Referrals - prospect recommended by current satisfied customer or one familiar with product or service. Can be an endless chain. They are the centers of influence - Directories - hundreds of business and industrial directories available - Trade Shows/ Publications - Different trade shows and conventions, trade publications and trade associations - Telemarketing - Identify buyers, generate contact lists, qualify prospects, conduct follow ups - Direct Response and Sale Letters - Often features inquiry cards or info via telephone; send letters to decision makers then follow up - Websites - provide a cost-effective way for sales professionals to project personal image, provide additional info, generate leads from visitors, show products, form email lists. - Computer Databases - can be costly, although some "pull" better than others. - Cold Calling - Simply calling prospects without referrals -Networking - Making and profiting from personal connections --Three Types: Networking within your organization, within your industry, and outside your industry.

Rational buying motives

-Acts on reason or judgement -Relatively free of emotion -Salesperson gather, interpret, and disseminate customer-specific information

The 'need behind the need' - dr. analogy

-Ask questions to assess the situation -gain full understanding of what is important -know their issues -probe for understanding -allows for accurate assessment to suggest correct products and solutions -ex: need -> need behind the need -> need behind the need

Positioning and Differentiation

-Positioning: involves those decisions and activities intended to create and maintain a certain concept of the product in the customer's mind -Differentiation: refers to the ability to separate the product from that of the competition in a way that builds a comeptitive advantage

Value Proposition

-The set of benefits and values the company promises to deliver to customers to satisfy their needs -a well informed customer will usually choose the product that offers the most value

Sources of product information

-Web-based sources, catalogs, and marketing-related sales support information -Plant tours -Internal sales and sales support team members -Use the products -Read and study publications

How do you provide value to customer's through SPIN

-by diagnosing what they want to purchase and why -asking the proper questions builds perceived value -understanding the real need allows salespeople to provide the right solution

Selling Mature Products

-emphasize brand superiority, emphasize company superiority, point out unique features, provide quality customer service, sustain existing market share

Situation questions

-general data gathering designed to help you find out basic information -gather as much information on business before sales call -translate what you know into getting more detailed information -ex: i know ______ , can you tell me more about _____ ?

Problem questions

-help assess the needs or problems your client/prospect might have -provide the necessary answers to how you can be the solution -ex: what are your current challenges with your current situation?

Parts 1-3 of Semester Sales Project

1: ChatGPT Intro Email 2: SPIN roleplay 3: Spin Self-Assessment

Prospecting and Sales Forecast Plans

Collect sales data and organize into Customer Relationship Management (CRM) Systems, also the salesperson should have sales intelligence info and manage the account analysis.

Sales Project Company Representatives & Company Information

Company: Dell EMC, a global organization that provides an entire portfolio of data center infrastructure that includes servers, storage, data protection and cloud integration services.

Target

Positioning: Quality, higher-end Differentiation: Expect more, pay less

Pepsi

Positioning: Unique Differentiation: Stand out- celebrities'

Coke

Positioning: Universal Differentiation: Inclusive for everyone

The four kinds of questions

S= Situation questions P= Problem questions I= Implication questions N= Need payoff questions

Customer strategy model

basic need and group influences affect the formulation of customer perceptions and buying motives - emotional or rational and product or patronage - that affect buying decisions

Sales Funnel Model

classifies prospects on where they are in the sales process , and is the total set of accounts being pursued at any given time 6 steps - prospect, qualified, needs analysis, presentation, negotiations, closed/service -multiplying total sale by likelihood of sale, and predictable sales over time -balanced funnel- to see how much sales revenue is needed at each stage to meet sales quotas and projections