4 — Mc Graw-Hill Irwin Copyright 2002 by

4 - Chapter 4 The Psychology of Selling: Why People Buy Mc. Graw-Hill/Irwin Copyright

4 -3 Chapter 4 ©Why People Buy ©Psychological Influences ©FABulous Approach to Buyer Need Satisfaction ©Determining Important Buying Needs ©The Trial Close ©SELL Sequence ©Buyer’s Perception ©Perceptions, Attitudes, and Beliefs Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -4 Chapter 4 ©Considering the Buyer’s Personality ©Adaptive Selling Based on Buyer’s Style ©Classifying Buying Situations ©Technology Provides Information ©Viewing Buyers as Decision-Makers ©Satisfied Customers ©To Buy or Not To Buy Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Why People Buy – The Black Box Approach 4 -5 © Internalization process is referred to as a black box ©Cannot see into the buyer’s mind ©Stimulus-response model Sales Presentation Buyer’s Hidden Mental Process Sale/No Sale Stimulus Black box Response Exhibit 4 -1: Stimulus-response model of buyer behavior Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

What’s Known About Mental Process 4 -6 ©People buy for practical and emotional reasons ©Some of a person’s thoughts can be determined ©Some of buyer’s purchase considerations Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -7 Psychological Influences on Buying ©Motivation to buy must be there ©Needs result from a lack of something desirable ©Wants are needs learned by the person ©Economic needs: The best value for the money ©The buyer’s need to purchase the most satisfying product for the money Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Psychological Influences on Buying cont… 4 -8 ©Awareness of needs: Some buyers are unsure ©Conscious need level ©Preconscious need level ©Unconscious need level Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

A FABulous Approach to Buyer Need Satisfaction 4 -9 © Stressing benefits is a most powerful selling techniqu © FAB selling technique emphasizes benefit selling ©Feature ©Advantage ©Benefit Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -10 The Product’s Features: So What? ©Feature--physical characteristic ©Many salespeople emphasize features ©Must discuss the product’s advantages as they relate to the buyer’s needs Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -11 The Product’s Advantages: Prove It! © Advantage--a performance characteristic © The chances of making a sale are increased by describing the product’s advantages ©How a product can be used ©How a product will help the buyer Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Product’s Benefits: What’s in it for Me? 4 -12 © Benefit--a result of advantage © People are interested in what the product will do for them © Benefits can be both practical and psychological © Benefits should be specific statements, not generalizations © Emphasizing benefits increases sales Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -13 Order Can Be Important © Standardized FAB Sequence can be used as follows © The…(feature)…means you…(advantage)…with the real benefit to you being…(benefit)…. ©Note how a benefit is emphasized Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

How to Determine Important Buying Needs—A Key to Success 4 -14 ©L-O-C-A-T-E ©Listen ©Observe ©Combine ©Ask questions ©Talk to others ©Empathize Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Trial Close—A Great Way to Uncover Needs and Sell 4 -15 © The trial close asks for an opinion, not a decision to buy. It gives feedback. © The trial close is one of the best communication techniques in the sales presentation © Trial close helps you to determine © whether the prospect likes your product’s feature, advantage, or benefit © whether you have successfully answered the objection ©whether any objections remain ©whether the prospect is ready for you to close the sale Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -16 Sell Sequence ©SELL Sequence ©S – Show feature--physical characteristic ©E – Explain advantage--performance characteristic ©L – Lead into benefit--result of advantage ©L – Let customer talk--ask opinion question Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -17 Your Buyer’s Perception © Perception--how selects, organizes, interprets information © Selective exposure--only portion of information used © Selective distortion--perceptual process may alter information © Selective retention--may remember only what supports their attitudes and beliefs Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -18 Perceptions, Attitudes, and Beliefs ©Perceptions are learned ©Learning--knowledge based on past ©Attitude--learned predispositions © Belief--trust or confidence placed in something/someone Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Buyer’s Personality Should Be Considered 4 -19 © Personality can be viewed as the individual’s distinguishing character traits, attitudes, or habits © Self-concept ©Real self ©Self-image ©Ideal self ©Looking-glass self Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Adaptive Selling Based on Buyer’s Style 4 -20 ©Personality typing ©Adapt your presentation to the buyer’s style ©Thinker style ©Intuitor style ©Feeler style ©Senser style Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -21 You Can Classify Buying Situations ©Some decisions are routine ©Some decisions are limited ©Some decisions are extensive Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -22 Technology Provides Information © Technology provides information for customer decision making and service Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -23 View Buyers as Decision-Makers ©Five basic steps in the buying decision ©Need arousal ©Collection of information ©Information evaluation ©Purchase decision ©Postpurchase: ©Satisfaction ©Dissonance Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Satisfied Customers are Easier to Sell 4 -24 © It is easier to sell to a customer than to a stranger © Building a relationship is important to a salesperson’s success Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

To Buy or Not To Buy—A Choice Decision 4 -25 ©Salesperson needs to understand ©factors that can influence the buying decision ©buyers actually examine various factors that influence these decisions ©buyers actually go through various steps in making decisions ©how to develop a sales presentation that persuades buyers to purchase Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

4 -26 Summary of Major Selling Issues ©As a salesperson, be knowledgeable © Understand the characteristics of the target market and how these characteristics relate to the buyer’s behavior © The individual goes through various steps in the three buying situations of routine decision making, limited decision making, and extensive decision making © Uncover who is involved in the buying decision and the main factors that influence the decision Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Summary of Major Selling Issues cont… 4 -27 © Psychological factors include the buyer’s motives, perceptions, learning, attitudes, beliefs, and personality © Not all prospects will buy your products due to the many factors influencing their buying decision © Need to uncover buyers’ needs, solve buyers’ problems, and provide the knowledge that allows them to develop personal attitudes toward the product Mc. Graw-Hill/Irwin Copyright © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.