SellingLAP 108

Decisions, Decisions, Decisions, Decisions, DecisionsDecisions

ObjectivesObjectives

Identify types of customer buying decisions.Identify types of customer buying decisions.

Facilitate customer/client buying decisions.Facilitate customer/client buying decisions.

Identify types of customerIdentify types of customerbuying decisions.buying decisions.

ObjectivObjectivee

• Nick wants to buy a digital voice Nick wants to buy a digital voice recorder:recorder:

Doesn’t know anything about themDoesn’t know anything about them

Goes to a recommended storeGoes to a recommended store

Sees a variety of different modelsSees a variety of different models

Doesn’t want to spend more than $60Doesn’t want to spend more than $60

Wants to purchase todayWants to purchase today

• Buying decisions:Buying decisions: He has already made some.He has already made some.

He still has some to make.He still has some to make.

• Nick needs the help of a skilled Nick needs the help of a skilled salesperson.salesperson.

Customer Buying DecisionsCustomer Buying Decisions

• Usually require a certain amount of Usually require a certain amount of assistance and reassurance from a assistance and reassurance from a salespersonsalesperson

• Successful salespeople are well-Successful salespeople are well-prepared to help. prepared to help.

• Customers and clients are unique:Customers and clients are unique:

At different stages in the At different stages in the decision-making processdecision-making process

Make buying decisions in no Make buying decisions in no particular orderparticular order

Types of CustomerTypes of CustomerBuying DecisionsBuying Decisions

• Need decision: Why should I buy?Need decision: Why should I buy?

Usually the first buying Usually the first buying decision a customer makesdecision a customer makes

Determining a need or want for Determining a need or want for a good or servicea good or service

Often made before coming in Often made before coming in contact with the salespersoncontact with the salesperson

Types of Customer Buying Types of Customer Buying DecisionsDecisions• Product decision: Which one Product decision: Which one

should I buy?should I buy?

BrandBrand

Type Type

ModelModel

StyleStyle

ColorColor

QualityQuality

Of all the products available, Of all the products available, which is right for the customer?which is right for the customer?

Influenced by factors such as:Influenced by factors such as: QuantityQuantity Size/shapeSize/shape

FlavorFlavor

PackagingPackaging

ReputationReputation

Customers gather product Customers gather product information from sources such as:information from sources such as: AdvertisingAdvertising

Manufacturers’ promotional Manufacturers’ promotional materialsmaterials

Trade magazinesTrade magazines

The InternetThe Internet

Friends Friends

RelativesRelatives

SalespeopleSalespeople

Brand: DodgeBrand: Dodge

Type: SUVType: SUV

Model: NitroModel: Nitro

Size: MidsizeSize: Midsize

Color: RedColor: Red

Types of Customer Buying Decisions

• Place decision: Where should I buy?Place decision: Where should I buy?

Influenced by factors such as:Influenced by factors such as: LocationLocation

Customers value Customers value convenience.convenience.

E-commerce—can E-commerce—can order almost anything order almost anything from homefrom home

Product qualityProduct quality

PromotionPromotion

AdvertisingAdvertising

Direct marketingDirect marketing

Online marketingOnline marketing

Positive publicityPositive publicity

Brand preferenceBrand preference

LoyaltyLoyalty

Customer serviceCustomer service More important for some More important for some

purchases than otherspurchases than others

Often a key factor in Often a key factor in industrial purchasesindustrial purchases

RecommendationsRecommendations

EmployeesEmployees

Types of Customer Buying Types of Customer Buying DecisionsDecisions

• Price decision: How much will I pay?Price decision: How much will I pay?

Closely related to product decision Closely related to product decision (often made at the same time)(often made at the same time)

Influenced by factors such as:Influenced by factors such as:

Product features and benefits Product features and benefits (primary consideration)(primary consideration)

Uniqueness of productUniqueness of product

WarrantyWarranty

Customer serviceCustomer service

Brand preferenceBrand preference

Types of Customer Buying Types of Customer Buying DecisionsDecisions

• Time decision: When should I buy?Time decision: When should I buy?

Reasons for customer delay often Reasons for customer delay often include:include:

Need for additional informationNeed for additional information

FinancesFinances

Salespeople can help by explaining:Salespeople can help by explaining:

Advantages of purchasing nowAdvantages of purchasing now

DiscountsDiscounts

Free shippingFree shipping

RebatesRebates

Extra productsExtra products

Disadvantages of waiting to Disadvantages of waiting to purchasepurchase

Missing out on a saleMissing out on a sale

Limited product availabilityLimited product availability

The availability and advantages The availability and advantages of creditof credit

Facilitate customer/clientFacilitate customer/clientbuying decisions.buying decisions.

ObjectivObjectivee

Assisting CustomersAssisting Customerswith Buying Decisionswith Buying Decisions

• Step one—Determine if the Step one—Determine if the customer needs help. customer needs help.

Question the customer.Question the customer.

Listen to responses.Listen to responses.

Rely on your experience, Rely on your experience, or learn from a mentor.or learn from a mentor.

Assisting CustomersAssisting Customerswith Buying Decisionswith Buying Decisions

• Step two—Gain the Step two—Gain the customer’s confidence.customer’s confidence. Be a good listener.Be a good listener. Display self-confidence.Display self-confidence. Demonstrate expertise on:Demonstrate expertise on:

ProductsProducts CompanyCompany IndustryIndustry Market conditionsMarket conditions

and trendsand trends

Make only promises you Make only promises you can keep. can keep.

Demonstrate Demonstrate confidentiality.confidentiality.

Demonstrate friendliness Demonstrate friendliness and build rapport.and build rapport.

• Step three—Be honest and sincere Step three—Be honest and sincere with the customer.with the customer.

• Step four—Show genuine interest Step four—Show genuine interest in helping the customer.in helping the customer.

Don’t act as if you’re rushed.Don’t act as if you’re rushed.

Answer all questions.Answer all questions.

Take notes.Take notes.

Assure customers you will help Assure customers you will help them make the best decision.them make the best decision.

Assisting CustomersAssisting Customerswith Buying Decisionswith Buying Decisions

Assisting CustomersAssisting Customerswith Buying Decisionswith Buying Decisions

• Step five—Demonstrate product Step five—Demonstrate product knowledge.knowledge.

For your products as well For your products as well as your competitors’as your competitors’

If you can’t answer a If you can’t answer a question, find out from question, find out from another employee.another employee.

• Step six—Relate features and Step six—Relate features and benefits to the customer.benefits to the customer.

Assure the customer that Assure the customer that the quality of the product is the quality of the product is worth its price.worth its price.

Use specific rather than Use specific rather than general terms. general terms.

• Jake is under pressure to make sales:

Feels he’s convincing customers to buy products they don’t need and might not be able to afford

His boss says that’s not Jake’s problem.

• What do you think?

Yes, the priceof this laptop is more than

you wanted to spend, but we have financing available.

MarkED

Acknowledgments

Original DevelopersChristopher C. Burke,

Sarah Bartlett Borich, MarkED

Version 1.0

Copyright © 2008MarkED Resource Center

Digital-based photography sources:

Brand X PicturesStudio 14; E-CommerceObj. A: BXP30985Photos © Brand X Pictures8755 Washington Blvd., Culver City, CA, 90232 www.studiofourteen.com

DIGITAL VISION;Business Communication Obj. A: #079023AConsumers Obj. B: #267152CPhotos copyright Digital Vision Ltd., all rights reserved. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada T2P 3T5

Digital-based photography sources:

PHOTODISC, INC.Business & Occupations Vol. 7Obj. A: #7327Photos copyright PhotoDisc, Inc. 2013 Fourth Ave., Seattle, WA 98121

Copyright:

All photographic digital images on this CD are owned by the aforementioned photographic resources or their licensors and are protected by the United States copyright laws, international treaty provisions, and applicable laws. No title to or intellectual property rights to the images on this CD are transferred to you. These sources retain all rights and are not to be used, digitally copied, transferred, or manipulated in any way. To do so is a violation of federal copyright laws.