Bmgt 204 chapter_3
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This chapter discusses the psychology of selling and why people buy. It introduces the concepts of features, advantages, and benefits (FABs) that are important for understanding customer motivations and needs. The FAB approach emphasizes the benefits to the customer over just features. Sellers should understand buyer behavior and decision processes. Using techniques like trial closes and focusing presentations around key benefits can help determine customer interests and objections and improve sales.
Bmgt 204 chapter_3
- 1. BMGT 204: Sales Strategies and Techniques Chapter 3: The Psychology of Selling: Why People Buy
- 2. Why did you buy Point Park University?
- 3. The Golden Rule: Benefits • Communication Skills • Ability to unselfishly help a person make the correct buying decision
- 4. Exhibit 3.1: Why People Buy– The Black Box Approach • Internalization process is referred to as a black box • • We cannot see into the buyer’s mind Stimulus-response model Sales Presentation Sale/No Sale Buyer’s Hidden Mental Process Stimulus Black box Exhibit 4-1: Stimulus-response model of buyer behavior Response
- 5. What’s Known About Mental Process • People buy for practical (rational) and psychological (emotional) reasons • Some of a person’s thoughts can be determined • Buyers consider certain factors in making purchase decisions
- 6. A FAB Approach to Buyer Need Satisfaction • Stressing benefits is a very powerful selling technique • FAB selling technique helps emphasize benefit • Feature • Advantage • Benefit
- 7. The Product’s Features: So What? • Feature – a physical characteristic • Many salespeople emphasize features • Examples: • Size • Color • Price • Shape
- 8. 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 • Examples: • Fastest-selling • Store more information • Copy on both sides of the paper
- 9. The Product’s Benefits: What’s in it for Me? • 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
- 11. Example: Sporting Goods Salesperson to Customer: • “With this ball, you’ll get an extra 10 to 20 yards on your drives ( 1. ) helping to reduce your score ( 2. ) because of its new solid core ( 3).”
- 12. Use Your FABs • Feature – Physical Characteristic • • Advantage – Performance Characteristic • • Buyer thinks “So What?” Buyer thinks “Prove It!” Benefit – Favorable result from advantage • Benefits are what people buy! • You can have a benefit of a benefit or a FABB
- 13. Use the FAB Sequence • The 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 • Pick a product. Insert a FAB of the product into the above sequence • Put in your own words • Let’s try it…….going back to Point Park University
- 14. FAB for Point Park University
- 15. Let’s Review FABs • Which of the following is a feature, advantage, or benefit? • Made of kevlar • 20% more MPG • New • Lasts twice as long • Saves time, work, and money
- 16. Exhibit 3.4: Match Buyer’s Needs to Product’s Benefits and Emphasize Them in the Sales Presentation Important Seller (emphasize) Important Needs Benefits Unimportant (de-emphasize) Unimportant Buyer
- 17. The Trial Close–a Great Way to Uncover Needs and Sell • 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
- 18. The Trial Close Helps You to Determine: • Whether the prospect likes your product’s features, advantages, or benefits • Whether you have successfully answered any objections • Whether any objections remain • Whether the prospect is ready for you to close the sale
- 19. In These Examples of Trial Closes, Notice They Do NOT Ask Someone to Buy Directly • “How does that sound to you?” • • ….that example of my work experience “Is this important to you?” • ……in the open role for xxxxxxxxx • “That’s great - isn’t it?” • “I notice your smile. What do you think about…?”
- 20. Exhibit 3.5: The SELL Sequence: Use It Throughout Your Presentation S Show feature E Explain advantage L Lead into benefit L Let customer talk
- 21. Industrial Salesperson to Industrial Purchasing Agent: • “This equipment is made of stainless steel ( 1. ), which means it won’t rust ( 2. ). The real benefit is that it reduces your replacement costs, thus saving you money ( 3. )! That’s what you’re interested in – right ( 4 )?”
- 22. Review: When Are the Times to Use a Trial Close? • After making a strong selling point in the presentation (FABs) • After the presentation but before the close • After answering an objection • Immediately before you move to close the sale
- 23. Exhibit 3.6: Examples of Features, Advantages, Benefits, and Trial Closes that Form the SELL Sequence
- 24. You Can Classify Buying Situations • Some decisions are routine • Some decisions are limited • Some decisions are extensive
- 25. View Buyers as Decision Makers • Five basic steps in the buying decision • Need arousal • Collection of information • Information evaluation • Purchase decision • Postpurchase: • Satisfaction
- 26. Exhibit 3.9: Personal, Psychological, and Social Forces that Influence Consumers’ Buying Behavior
- 27. Satisfied Customers Are Easier to Sell • It is easier to sell to a customer than to a stranger • Building a relationship is important to a salesperson’s success
- 28. How does this relate to a job search…. • Are employers looking for a Feature? • Are they looking for an Advantage? • Are they looking for a benefit? • What will you do to help them succeed?