Answer in your notes… Describe the difference between features and benefits. Describe the difference between obvious features and hidden benefits. What are five common places salespeople can look to find information on product features? What are the 5 parts of the Promotional Mix?

Objectives Describe feature-benefit selling Prepare for feature-benefit selling

Personal Selling What do you think? Personal Selling any form of direct contact between a salesperson and a customer two-way communication between a customer and salesperson sets personal selling apart from other forms of promotion forms of personal selling: retail selling business-to-business selling telemarketing What do you think? Think back to the last major purchase you made. What was your interaction with the salesperson like?

Forms of Personal Selling Retail Selling customer comes to store; store traffic created through advertising and in-store displays Business-to-Business Selling one business selling within its warehouse showroom or at another place of business (ex: copy machines, HR consulting) Telemarketing selling products by telephone commonly sold products using telemarketing: service contracts for newly purchased products subscriptions phone services

Understanding Customer Needs A good salesperson should be alert to a customer’s needs and offer product suggestions Feature-Benefit Selling matching a customer’s needs and wants with characteristics of a certain product

Feature-Benefit Selling Do customers buy a product or buy the features a product will provide? this is a fundamental question of feature-benefit selling Product Features important to know how a product’s features will benefit the customer product features can be physical, basic or extended; most basic feature is the product’s use additional features can be the reason for a product’s higher price extended features can include warranties, guarantees, service policies, additional financing, etc. Answers the question, “What is it?”

Feature-Benefit Selling Customer Benefits personal satisfaction or advantages customers wants from buying a product when product features develop into customer benefits they are referred to as selling points salespeople must look at a product’s features from a customer’s point-of-view to figure the customer benefits two questions to answer: “How will I (or my business) benefit?” “What’s in it for my business and/or me?”

3 Types of benefits Obvious or apparent benefits Advantages that need little explanation Ex: auto shut-off on a curling iron Unique or exclusive benefits Advantages that are available only from your good, service or business Ex: car stereo system that syncs with phone to talk hands-free Hidden benefits Advantages that cannot be seen or understood without the assistance of a salesperson Ex: shoe salesperson persuading you to try on the shoes

Feature-Benefit Chart A feature-benefit chart is developed once you have identified the product’s features and benefits 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 two-column chart with the product features on one side and the corresponding benefits on the other

Step One Find your product’s features 4. Durability 1. Construction and materials What is this material? Who makes it? What’s the difference between these two items? 2. Appearance and style Aesthetic features (beauty/attractiveness of the design) 3. Unique or novel features Free delivery 4. Durability How many miles will I get from these tires? 5. Product uses What will the product do and how it can be used 6. Service and warranty Appliances, electronics and vehicles

Step Two Know where to get facts about product features The product itself firsthand knowledge, gained by experience Customers Testimony to use for future sales presentations Brochures and publications Product’s website Other sales personnel

Step Three Create a Feature-Benefit Chart Product: iPhone 6 Features (What are they?) Benefits (What do they mean?) Flash on the front of the phone The new iPhone illuminates the screen when you're taking a selfie in a dark setting. MORE SELFIES!! Faster Wifi Research can be done quicker so you get your homework done faster! (watch Netflix without buffering ) Strongest cover glass used in any smartphone Screen won’t crack when you drop it for the millionth time (parents will only replace your phone so many times….)

Customer Buying Motives It is important to understand what motivates customers to buy Rational Motives customers make buying decisions based on conscious, logical reasons such as: time or monetary savings health or safety considerations product dependability

Customer Buying Motives Emotional Motives customers make buying decisions solely based on emotional feelings feelings of power, love, social approval, etc. Most buying decisions are influenced by a combination of both of these motives: tackling all five senses Marketers position their products to appeal to consumers’ rational and emotional senses – but what of the five physical senses? It is becoming popular for companies to use color, sound, taste, smell and touch to make their products appealing. Why do you see so many fast food restaurants with warm, vibrant colors? Because psychologists have found these colors encourage activity and excitement, whereas cool colors are more soothing and relaxing. Can you think of different ways the other senses can be integrated into selling products?

Consumer Decision Making Customers have different styles of decision making – some need minimal help or time in making buying decisions, others require significant amounts of time and effort Three styles of consumer decision making: Extensive Decision Making includes much prior research and thinking Limited Decision Making includes some prior research and thinking Routine Decision Making includes little or no prior research and thinking

Consumer Decision Making Extensive Decision Making consumers use this form of decision making when there has been little or no previous experience with a product includes items: perceived as having a high degree of risk are very expensive have a high value to the customer such items could be: a house land for business or personal reasons expensive machinery for manufacturing or production purposes

Consumer Decision Making Limited Decision Making consumers use this form of decision making to buy products they have purchased before, but not on a regular basis perceived risk is moderate product information is usually essential to the customer before he/she makes a buying decision items usually bought using limited decision making: special occasion clothes household appliances vacation packages furniture

Consumer Decision Making Routine Decision Making consumers use this form of decision making when little information is needed to purchase a product, usually because of either: a low perceived risk low-cost items, frequently bought items cosmetics, grocery items, magazines familiarity with the product consumers who develop brand loyalty will use routine decision making, no matter the cost or type of product automobiles, computers, electronics