first 6 notes on Media Buying and Sales Negotiations
first 6 notes on Media Buying and Sales Negotiations
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CO M M U N ICATIO N STYLES BM0641 M EDIA BUYING amp SALES N EGOTIATIONS I SEM 2 AY12 13 w H 39 r AZHmmm 1w Learning Objectives Discuss communicationstyle bias and how it influences the relationship process Explain the benefits derived from an understanding of communication styles Identify the two major dimensions of the communicationstyle model Learning Objectives List and describe the four major communication styles in the communicationstyle model Learn how to identify your preferred communication style and that of your customer Communication Style Your communication style is the you that is on display every day the outer pattern of behavior that others see If your style is very different from the other person s it may be difficult for the two of you to develop a rapport CommunicationStyle Bias It is a state of mind Most frequently occurring form of bias Not commonly understood A state of mind that is difficult to explain Develops when we have contact with another Adaptive Selling 39 Adaptive Selling is defined as altering sales behaviours in order to improve communication with the customer Describes training programs that encourage salespeople to adjust their communication style to accommodate styles of their customers CommunicationStyle Principles 1 Individual Differences 2 Style as a Way of Individual differences ThiNking and BEhBVing exist and are very 39 A preferred way of using important one s abilities f Each person displays Ability how well you a individual array of verbal can do something and nonverbal Style howy l characteristics do it CommunicationStyle Principles 3 5ter Tends to Be Stable 4 There Is a Finite Number over Time of Styles Based on hereditary and Most People display one environmental factors 0f several bEhaViOFal clusters 39 Our style tends to I remain rather constant We can often quotlabel quot th rough Ilfe person S Sty le v d CommunicationStyle Principles 5 Get in Sync with Styles of Others 39 Style differences can be source of friction Develop an ability to adapt to another person s style Improving Relationship Skills 3 Goals First goal understand your own preferred communication style Second goal develop greater understanding and appreciation for different styles Third goal manage selling relationships by adaptin style styleflexing J g f39 CommunicationStyle Model High Enaciiah llii ty IE39Kwers Ema Ema Euppur ve Emotive Ema 1 LEW 39 High il m nanm f il m n nanc He en iue 39 Direntnr Law Enaciiah llii ty Dominance Continuum Low dominance High dominance 39 Cooperative Like to control Let others control 39 Initiate demands Low in assertiveness 39 More aggressive MW High drumurnarme damuman a lrllllgull l El Eliraljlil fl MW E li lillill Sociability Continuum High Express feelings Low 39 Control feelings 39 Prefer solitude 39 Preferinteraction 39 More reserved 39 More outgoing More formal More informal Emotive Style H gllhl E b 39 y Emotive MW 39 H gh j din sdl m nmc l l Ian S b m r 39 High Dominance 39 High Sociability 1 many II 111 I V m mi in h 51 i Emotive Style Traits Appears quite active Takes social initiative Encourages informality Expresses emotional opinions Directive Style High hi l iy Emotive Law dl ll ii i i l r a 39 High Dominance dl mill ll i i T w 39 Low Sociability A x W it 71 I minim I suiciahillii ty A I I Itquot 1 Director Style Traits Appears quite busy May give the impression of not listening Displays rather serious attitude Likes to maintain control Reflective Style High E i hi y Low Dominance H gh Low Sociability Emn m39e 1 Law J dammm 7 He ee iw Director A x M it 71 I minim I l El n I enac h llii ty A 1 I u 1 Reflective Style Traits Controls emotional expression Displays preference for order Tends to express measured opinions Seems difficult to get to know dam n n E hi m Supportive High Emac ah ll y Em u 39 39e Low Dominance High an I m minimum Wm 39 muquot1 11 39Hi 11quot Supportive Style Traits Appears to be quiet and reserved Listens attentively Tends to avoid use of power Makes thoughtful decisions in deliberate manner Discussion Questions Think of people you know who are Emotives Directors Reflectives Supportives How well do you currently communicate with these people How do you see your communication style playing a 39 role r Minimizing CommunicationStyle Bias Salespeople often focus too much on the content and not enough on the delivery of their sales presentation It can be a barrier to sales success One must work with people from all four quadrants Become highly adaptable Achieving Interpersonal Versatility Versatility describes one s ability to minimize communicationstyle bias Adapting to the customer s preferred style can enhance sales performance Move toward a more mature style Strengthweakness paradox Intensity zones Intensity Zones High smec ah ll y Einrsxers Elana Ema Em ntiue EEIHIH 1 Law H glhl dl m ll ll l r daminam Ii 39 j will ma a Heflen v g imninr It i I III will ruv M 73971 Law Enac ah llfnty Versatility Through Style Flexing Styleflexing the deliberate attempt to adjust one s communication style to accommodate others needs Learn about each customer s style during pre approach stage Do not become preoccupied with identifying style during sales calls Analyze ca afterward for style clues Selling to Emotives and Directors Selling to Emotives Be enthusiastic Don t be too stiff or formal Take time to establish goodwillrelationships Maintain eye contact Be good listener Selling to Directors Keep as businesslike as possible Be efficient time disciplined organized Ask questiQnmsi responses 453 quot r Lquot I 39 3 n5 Selling to Reflectives and Supportives Selling to Reflectives Selling to Supportives Use thoughtful well 39 Take time to build the organized approach relationship Present information in Listen carefully to their deliberate manner opinions and feelings Provide documentation Provide assura nces Never pressure for the V39EWS a quick decisions Have patiencrea g a 1 Words of Caution Do not let labels rule behavior Labels make people feel boxed in orjudged Acquire additional information Do not classify people per se classify their strengths and preferences Do not let labels justify your inflexibility In quot l cmmf mummi J Ail Questions CREATING VALUE WITH R E LATI O N S H P ST WEEKZ i BM0641 MEDIA BUYING amp SALES NEGOTIATIONS e SEM 2AY1314 u I AZHmmm Learning Objectives Explain the importance of developing a relationship strategy List the four key groups with which the salesperson needs to develop relationship strategies Discuss how selfimage forms the foundation for building longterm selling relationships 1 1 Describe the importance of a winwin rel w l A ll at I 5 539 quot I Learning Objectives Identify and describe the major nonverbal factors that shape our sales image Describe conversational strategies that help us establish relationships Explain how to establish a selfimprovement plan based on personal development strategies Emotional Intelligence Emotional intelligence is the capacity for monitoring our own feelings and those of others for motivating ourselves and for managing emotions well in ourselves and in our relationships Emotional intelligence is a predictor of success 39 It can be enhanced with selfdevelopment 397 Empathy 3W far ng 39 g Egrr39lrrlitn39ierit Interperaohal awareness Developing a Relationship Strategy H Relationships add value Partnering the highestquality selling relationship Relationship strategies focus on four key groups 9W1 Tailoring the relationship strategy 1 Relationships Add Value 39 Customers perceive that value is added when they feel comfortable with the relationship they have with a salesperson 39 Certain salesperson traits help create perception of value Honesty Accountability Sincere concern for customer welfare 2 Partnering The HighestQuality Selling Relationship Partnering strategically developed highquality longterm relationship focusing on solving customers buying problems It emphasizes building a relationship Selling must be viewed as process not an event Wilson s 3 Keys to Partnering Relationship 1 Relationship is built on shared values 2 Both commit to same vision 3 Salesperson moves from selling to supporting 3 Effective Relationship Strategies Focus on 4 Key Groups Eatlesparsnn mammary Barman M magma nt decisirl supp rt parsnmhal mitts T sta realise who the decision maker is who actually has the power to buy the item no matter who wants it couplesfamilies 4 Tailoring Relationship Strategies 39 Transactional selling 0 Buyers aware of needs focus on price 0 Relationship strategy secondary 39 Consultative selling Salesperson listens defines problem solves Impact of the relationship is important 39 Strategic alliance selling I y a x 0 Build relationship with several people Y Thought Processes to Enhance Relationship Strategy 39 SelfimageSeIfconcept is key dimension Winwin philosophy 39 Character and integrity SelflmageSelf Concept Selfimageselfconcept is shaped by the ideas attitudes feelings and thoughts you have about yourself that influence the way you relate to others 39 Feelings and behavior are consistent with the self imageselfconcept The selfimageselfconcept can be changed Developing a More Positive SelfImage Focus on future not past mistakes Er Develop expertise in selected areas Develop a positive mental attitude The WinWin Philosophy 39 Customer satisfaction is primary Adopting winwin is the first step in development of relationship strategy Both the buyer and seller come out of the sale wit their respective best interests being served h quot 39 WinWin versus WinLose Help pthere eelue their prphleme i Fia what eaueeu the prahlem i Make life a jeueue happening far ethere and themeeluee n tLearn tram the paet Iiue in the preee nt and eat ppala fer the future It Malae pp mmitmente tu themeeluee and ta uthere and Keep them bath sti eLee PepEa See a prehlem in eatery euluttpn 4 Fiat the blame quotI Let life happen te them i Liue in the peat i Make prumieee theyF neuer keep Character and Integrity 39 Character includes personal standards including honesty integrity and moral strength Integrity involves achieving congruence between what you know say and do Stompgate 39 Ms Samantha Francis 23 a content producer with citizen journalism website Stomp had uploaded a photo on Wednesday morning showing one the train doors wid 39 1 June 20 2012 I quotMy team and I would like to apologise unreservedy to SMRT for this erroneous report by one of our staff We truly regret the damage this has caused SIVIRI Aside from breaching our professional ethics what she has done goes against all the values that we stand for Mr Patrick Daniel SPH editorinchief in his letter to SMRT A SINGAPIEJRE F39FLEEE HtJLEthGE PDFETAL tSl tDHE 3 NEWS 33quot MDFDFLIlIE Stomp atall i aaokod oaot lialao MET opeo door photo r Shara i I E 39 75 i 1 m if HTWEE t Shara quot1a oa Julioo ajt Jon 5 oo to it photograph of an thT train looting with one sat of its doors open haa hoon found to ho talao a oontont orooooor ot Singaporo39a oitiaan joornaliani wohaito Stomp hao initiallyr olain39ioo that aha tool the photograph laat afoot Verbal and Nonverbal Strategies 39 First customer contact critical 39 Quick superficial judgments are made These impressions can facilitate or distract 39 The image a salesperson projects can influence customer s feelings about that salesperswr Discussion Questions Think of an instance when you first had contact with a salesperson who made a negative impression What verbal andor nonverbal factors played a role in your assessment 39 Think of an instance when you first had contact with a salesperson who made a positive impression verbal and or nonverbal factors played a role in w a ssess m e nt i s 15MINUTE BREAK vifillquot w u Nonverbal Messages Silent messages communicated through facial expressions voice tone gestures appearance posture and other nonverbal means Nonverbal messages have than verba messages consistent Entrance and Carriage Believe and project that you have a reason to be there and something important to offer the client 39 Communicate confidence with 0 Strong stride Good posture Friendly smile Shaking Hands Proper greeting symbolizes respect Make eye contact Use firm deep grip Duration and dryness State your name when you extend your hand Facial Expressions 39 Facial expressions convey inner feelings 39 People tend to trust a smiling face Reading facial expressions fairly universal across cultures Eye Contact 39 Good eye contact says quotI m listening 39 Prolonged eye contact can send the wrong message Effect of Appearance Simplicity Appropriateness Formal Business casual Quality Visual integrity Alert Business Fashion Police All too often college students don t have the basics Of a b u Si n ess 1 n i Wa rd robe when they graduate Research the industry you wish to enter and buy accordingly Gift certificates make good graduation gift w Voice Quality and Relationships Ever hear quotIt s not just what you say but how you say it Avoid rapidfire speech 39 Vary speed of your delivery 39 Sound upbeat and energetic but not phony 39 Convey enthusiasm in your voice 39 Try to sound relaxed 39 Avoid bad speech habits Manners and Relationships Avoid temptation to start on first name basis Avoid offensive comments or jokes Recognize the importance of punctuality When dining avoid discussing business before meals are ordered unless customer initiates e When leaving voicemail messages leave a clea r concise message 4 quot Avoid cellphone contempt Conversational Strategies From Dale Carnegie Become genuinely interested in other people Be a good listener 39 Talk about interests of others From text 39 Comment on here and now observations 39 Compliment your customers when appropriate 39 Find mutual acquaintances or interests Artifacts Application 39 The selfselected objects that surround a person are called artifacts 39 What can you learn from 0 Pictures in an office Objects on a person s desk 0 The type of car customers own 39 Analyze what the office in the NEXT SLIDE communicates a SelfImprovement Strategies Set precise goals Visualize success Use positive selftalk Reward progress In quot l cmmf mummi J Ail Questions PERSONAL SELLING MARKETING CONCEPT WEEK 1 39 BM0641 MEDIA BUYING amp SALES NEGOTIATIONS Fl 5 E M 2 AV 1 3 14 a 1 l AZ H m m m r Learning Objectives 0 Contributions of personal selling to the information economy 0 The evolution of consultative selling 0 The evolution of partnering discuss how it relates to the quality improvement process Learning Objectives De ne 39 strategic selling and name four strategic areas of the strategicconsultative selling model 39 Personal selling discuss as extension of marketing concept Explain w a How valueadded strategies enhance personal 1 selling 71 y L Discussion Question When you hear the term personal selling what words images ideas or other associations come to mind 39 Which of these associations are negative and which are positive Definition of Personal Selling I Persontoperson communication with a prospect I Personal selling is a process of I Developing relationships I Discovering needs I Matching products with needs I Communicating benefits I Viewed as a process that adds value it39s evolved from back then personal selling is really important now and at this day people would buy a product and expect an aftersales service Broad Concept of Product What is the main product the following companies offer Includes Information Services Ideas Issues quotHard goods Eh l l l39lEl39lEl IE EiIE cum Personal Selling in the Information Age An evolution from the industrial economy to the information economy Began in the 19505 New emphasis is information exchange rather than producing goods Implications for personal selling one of the earliest formal statements indicate corporate interest in the marketing concept came from a General Electric Executive in the 19505 A Shift in Emphasis Industrial economy ElAdvances occur in transportation and manufacturing EIStrategic resources are capital and natural resources EIProducts and factories define the business EISales success means meeting sales quotas Information economy ElAdvances occur in information technology EIStrategic resource is information EIBusiness is defined by I c usto m e r re atio n s A 5 5 E El Sales 5 u CCE S d d 1 Egg Discussion Question 39 What is valueadding Valueadded selling a series of creative improvements within the sales process that enhances the customer experience 39 In the information age what can a salesperson do to create value for the customer 39 What can undermine that value in the customer Personal Selling as an Extension of the Marketing Concept Move from a product orientation peddling to a customer orientation partnering The Marketing Mix 39 A company must determine how a combination of these elements can result in maximum customer satisfaction Promotion Important Role of Personal Selling 39 Often the major promotional method Firms invest in personal selling 39 Personal selling has evolved to a new level of professionalism because I Products and services are more complex I Competition has greatly increased Evolution of Personal Selling I Marketing era begins early 19505 I Salespeople as a source of strategic info on productservice Consultative selling era late 1960s to early 1970s I Mass markets break into target markets Strategic selling era early 19805 I Product positioning vital Partnering era 1990 to present r r H I Customer not product as driving force quot quot I Emphasis on strategies that create custg 39 quot Evolution of Consultative Selling Transactional selling 0 Process that serves the buyer primarily interested in price and convenience Consultative selling 0 Process that developed from the marketing concept emphasizing need identification gt t I there are 5 strategies Evolution of Consultative Selling Features of consultative selling include 1 Customer is a person to be served not a prospect to be sold Twoway communication identifies diagnoses customer s needs no highpressure sales presentation Emphasis on information giving problem and negotiation rather than manipulation i Emphasis on service after the sale Evolution of Strategic Selling A Strategic Market Plan Outlines necessary methods and resources Considers areas to be coordinated Finance 0 Personnel 39 Production 0 Marketing Influences the sale of products I Serves as guide for strategic selling pl n Strategy and Tactics Tactics 0 Specific techniques practices and methods used in customer interaction 39 Strategy 0 Carefully conceived plan needed to accomplish sales objectives 0 A prerequisite to tactical success 5 39 STRATEGICCONSULTATIVE SELLING MODEL Step 1 Develop Personal Selling Philosophy 3921 Adopt a marketing concept a Value personal selling 392 Assume the role of a problem solverpa rt 399 1 i 5 erg Step 2 Develop a Relationship Strategy Q Adopt a winwin philosophy I Project a professional image I 9 Maintain high ethical standards Step 3 Develop a Product Strategy 9 Become a product expert 9 Sell benefits not features Q Configure valueadded solutions Step 4 Develop a Customer Strategy Q Understand the buying process Q Understand buyer behavior 392 Develop prospect base Step 5 Develop a m Prepare objectives I Develop a presentation plan Provide outstanding service Personal Selling Philosophy there are 5 strategies e a The major strategies Emmmsmp 39 I f Strategic Consultative Selling Model are by independent of one another Evolution of Partnering Buzzword of 90s became business reality in 2000s quotStrategically developed longterm relationship that solves the customer s problems Relationship selling relies on a customized approach to each client Enhanced with high ethical standards and CRIVI Strategic Alliances Formed by companies that have and thus Theis to achieve a marketplace advantage by teaming up with another firm Highest form of consultative selling required to build winwin alliances A gt K 1 39 if 39 l a Can you cite some current examples of 1 strategic alliances a I v Value Creation 39 Valueadded selling creative improvements that enhance customer experience The information economy rewards salespeople who add value at each step When customer is not aware of value added by salespeople the focus may shift to price quot Value Creation Creating amp Delivering Customer Value Model 99quot Understanding Customer s Value Needs Creating the Value Proposition Communicating the Value Proposition Delivering the Value Proposition ValueAdded Selling Example Hybrid Cars A mix of gasoline power and electric power Value of the product is still the same It moves a person from point A to point B The value add can be seen in several different ways fuel savings less time at the gas station cars pollute the air less than a normal combustion engine In quot l cmmf mummi J Ail Questions PRODUCT SELLING ST RAT EG I ES BM0641 MEDIA BUYING amp SALES NEGOTIATIONS 1 AZHARmmm Learning Objectives Describe positioning as a productselling strategy Discuss product differentiation in personal selling Explain how today s customer is redefining products Describe how to sell products at various stages of the product life cycle Learning Objectives Explain how to sell your product with a price strategy Explain how to sell your product with a valueadded strategy List and describe the four dimensions of the total product concept W Positioning and Differentiation Positioning involves those decisions and activities intended to create and maintain a certain concept of the firm s product in the customer s mind 39 It s how you want your customer to think and feel about your brand about you and your competition Starbucks vs Koufu What s in the Koufu coffee Water coffee powder milk cream 550 What s in the Starbucks coffee Water coffee powder milk cream 070 Starbucks vs Koufu 39 So what is the Starbucks brand Memories Friends Relax Quality 39 Starbucks market brands Koufu sells drinks Brand Framework 5mm go from givingselling products to giving meaning to Starbucks PffJEUQ ES can be copied Positioning and Differentiation Differentiation refers to your ability to separate yourself and your product from that of your competitors It is the key to building and maintaining a competitive advantage Discussion Questions 39 What are some companies that you feel are positioned well 39 What reputations have these companies established with their customers Value Proposition 39 The set of benefits and values the company promises to deliver to customers to satisfy their needs A wellinformed customer will usually choose the product that offers the most value KissQZFM A newjewel is in town for the modern and savvy women Singapore39s first radio station targeting women aged 30 50 years old is another quality radio station by SPH UnionWorks Named quotKiss 92quot the station on the brand new 920fm frequency is a femalecentric station with music specifically tailored to the target audience39s taste with familiar tunes and the best new music Kiss 92 will also see experts share their knowledge both On Air and Online on a range of topics including travel foo relationships and family matters shopping and entertainment fashion and beauty financial 51 933539 Redefining Products in the Age of Information 39 Products are problemsolving tools 39 People buy products if they fulfill a problemsolving need 39 Today s better educated and more demanding customers are seeking a cluster of satisfactions ProductSelling Model I Today s product I Meets and exceeds expectations I Better quality larger selection I Today s salesperson I Acts as partner I More trustworthy knowledgeable I Today s company I Acts as team to provide I Delivery training credit service ProductSelling Model Tnds s seles ersen huts e perlruer I39Ilre eurtenus end tmstwrth39gr quot39 Here Enewledgeshle Hre understandln g f eustemers Fresh service after the sale L Q quot TDUE Acts as a 1mm in presld elhrerjr and lnstallstlen rln tetlen and trelnln ulelr rpen tlrrI Eredlt uptlnns Busten39ler service Competitive Analysis Effective selling is based on a comprehensive analysis of the competitive situation Table 71 on the next slide provides a template for competitive product analysis Assiueeedee preduet selling strategy enhsnsed w en selespeeple analyse predueti means sits selespersen attributes ei tte sempetitien in reletiri tn the Benefits they r This inierm stin helps the selespersen sreete melee 39ili iii39iil39l the sales press In IIIHF EDMFEI39ITEH EDMFEI39ITDH C o m p it i Analysis Fielise i its Periermsnse Worksheet Brsntl eeim et smtes Eesegensy A ates Fieputetien Iriiil ustry39 leadership Facilities Ease ei sling tiusiness iistiinutien ehsnnels rdering snsenierise Fitsturns sree itsi etsi MEWTEHH tinmsledgefespertise Fies pins iseriess Pricing suiheritir Esstemer eris ntet39n Hnestgsilrrtsgrity Fellmsihreugh Premrrtetien skills Bales and F39r l il Product Life Cycle Stages in Decline In lr ducllEin Ermw lh ME39lLJ Ififr Product Positioning Options 1 Position new versus established products 2 Position with price strategies 3 Position with value added 1 Selling New vs Mature Products I Nature and extent of each stage in product life cycle determined by I Product s perceived advantage over available substitutes I Product s benefits and importance of needs met f by product W I Full spectrum of competitive activity I Changes in technology fashion ando demographics ProductSelling Strategies for Positioning Hw an min in unis Faaafstarsa aasg samas assist masr lsssls at smsatatims Ehangs habits Establish new standards uilti assirs inr arnaust a Fnsus an wasting nsw maritats Ti rns Matur and wall Faasfstatasa aaag siaaasa Emphasize Israna supsrinrityr Emphasiss atinitiamr stasrisritgtur Paint aut uniaus isatur ss Pr nsids sutstanding sustarnsr ssnsiss Fsms an sustaining saisting nantat snars 2 Selling Products with a Price Strategy Lowprice emphasis 39 Consequences of low price tactics Ecommerce impact on pricing Various Forms of Discounts Quantity lower price for high quantity or dollar amount Seasonal price adjusted by time of year Promotional allowance give special price linked to special promotion or advertising campaign Tradefunctional discounts given to wholesalers fo special services r Consequences of Low Price Tactics I Highlow involvement buyers I High emotional involvement with brand I Lowinvolvement buyers focus on price I Importance of quality I Role of price quality relationship in sale I Importance of service I Many buyers particularly businesstoer iii 7 Ha rank service above absolute price 9 O 39 Ti r r l w 1 SI a is i Eh I gt I I gt 39 I d r W 3 5 V a I gt V V I V Ecommerce and Price Transaction orientation online sales persons mostly transactionoriented little value added Buyers often well informed onine buyers visit a number of Websites Adding value again adding value is very important 3 ValueAdded Selling Progressive marketers add value with intangibles I Increased service and courtesy I Prompt deliveries more innovations 39 Valueadded approaches yield unique niche and competitive edge WHAT IS LEXUS Lexus is Engineering sophistication ahl manufacturing quality N Lexus is Luxury ancl perfrmance N I u e Lexus is An image and an expectation of excellence Lexus is Valuing the customer as an d important individual Lexus is Treating customers the way TlHEY want to be treated 5 Lexus is A total experience that reflects professionalism and a sincere commitment to satisfaction Lexus is Doing it right the first time Lexus is Caring on a personal level Lexus is Exceeding customer expectations And In the eyes of the customer I AM LEXUS lll sentinel The Total Product Concept Patentialpmm w An understanding I of the 4 possible 39 I products IS helpful Expected when the w w salesperson minim develops a presentation fo g o speCIfIc ty es w e 1 salesp m g 7 F v 5 F l nuwle g l v v Gusto a I t I Ff ld i Four Product Dimensions 1 Generic Product 39 Generic product basic product you are selling describes product category such as hotels MP3 players or insurance Example Every Hotel 81 offers guest rooms meeting rooms and other basic hotel services Four Product Dimensions 2 Expected Product Expected product Everything that meets the customer s minimal expectations beyond generic product Example Every Hotel 81 offers not only guest rooms but the rooms are very clean and spacious Four Product Dimensions 3 ValueAdded Product 39 Valueadded product Salesperson offers customers more than they expect Example Every Hotel 81 recalls your newspaper preference wakeup time and that you require wireless Internet access Four Product Dimensions 4 Potential Product 39 Potential product What remains to be done what is possible anticipating customers future needs Example Every Hotel 81 plans to offer complete office support services Discussion Questions For a website company what could be the 39 Generic product Expected product 39 Valueadded product Potential product Value Creation for I Transactional buyers I Involves emphasis on eliminating costs avoiding delays I Consultative buyers I Involves customtailored solutions to deliver mor real benefits I Strategic alliance buyers I Requires leveraging the full assets of the 39 o 1 gt company Investments go well beyond force In quot l cmmf mummi J Ail Questions BUYING PROCESS BUYER BEIIAVIOR WEEK 6 BM0641 MEDIA BUYING amp SALES NEGOTIATIONS SEM 2 AY1314 AZHARmmm Learning Objectives Discuss the meaning of a customer strategy Explain the difference between consumer and organizational buyers List and describe the steps in the typical buying process Discuss the buying process of the transactional consultative and strategic buyer Learning Objectives 39 Understand the importance of alignment between the selling process and the customer s buying process Discuss the social and psychological influences that shape customer buying decisions Customer Strategy Defined quotA customer strategy is a that results in One major dimension of this strategy is to achieve a better understanding of the customer s buying needs and motives Strategic Consultative Selling Model STHMEEIWGDHEULTMWE EELLINE M EL Stare Inng a rep eyelet a Peraenal Selling Ptttteaeghy eyelet a Helatienahig Strategy eyelet a Pr eauet Strategy eyellag a Strataraer Strategy tie re eaeat Marketing Seneeat Value F39eraenal Selling Seeeme a Pretrlent SelyertFartner eaeatWineWin Phileaeghy Prejeet Prefeaaienal Image Maintain High Ethieal Standarata Seeeme a Predaet Eagert Sellll Sene te Sentigare yalueeaaaea Salutiena D Underatiantt the laying Freeeaa D Underatiantt Sayer lSet rayier D Deaelleg Preegeet aae Complex Nature of Customer Behavior Individual customers perceive the product in their own terms The customer is a person not a statistic Companies that fully accept this basic truth are likely to adopt a onetoone marketing strategy Share a Coke campaign in Australia did this Consumer vs Organizational Buyers 39 Consumer buyer behavior refers to the buying behavior of individuals and households who buy goods and services for personal consumption THE STRAITS TIMES ha FEE idem 1 1 I M V 7 Em I l39 r V Sr 13 Iquot gt p a quot1 r I j 1 T 5quot fum r 11 ET 553 89 11 mum J 11 M E HBEMEWF Lga allIf my v mm quot iquot H will F J gsI1 j ljhi Jdmh himII IME in liedIii quot u 39n 9 H 39I quothush1n Tm H 7 1 39na39 an II unrlmurri iii Li flyEa m mil 5 THE STRI l anz leads BEDS tn girl s harm y in suitcase r I K 2 V in a A 77 L 1 W V 5 L r 11F mi 2 m as 1 7 39 i 7 I A I quot A I u E 139 39 I quot 1 x 1 3 s r i 7 VHF1717 I V I quotnu5 1 quotIVE 39 1 V a if L 17 l t i39 a quotAf m W H W n g u u r V M 53910 4 TIMES Poor Ad Placement Selling suitcases next to a murder case of body stuffed in suitcase Oct 2013 quot21 s quotA I In me mm A 1 III I a Consumer vs Organizational Buyers Business organizational buyer behavior refers to the organizations that buy goods and services for use in the production of other products and services that are sold rented or supplied to others Between Consumer and Organizational Buyers Camaamaaar a Pur ahaaaa far indiriual ar hauaahald aanaumplin a aaiaiana aauallfglr ma a by incliaiula a Purahaaaa aftan ma a haaarl an brand r aaulalian ar paraanal raaammanaatiana with littla ar na manual aaaarliaa a Purah baaarl primarin an amatinal raaaanaaa ta pracluat r pmtiana a Indiaidual purahaaara mayr malaa quiala aaiaiana I Praaluataanaun1argaarla anal far indiaialual uaa L etween Consumer and Organizational Buyers laggreareaeea eaeaf e erehaeee matle far ean39le ueee ether than persnal neumien eeieiene tregeentlgr ma g liar eeaeral pE plg e erehaeee n1atle aeeeraing ta greeiee teehnieal egeeifieatien haeetl en gr eaeet eagertiee e Perehaaee haeea an grinnarilgr ratianal eriteria e Purehaeere mayr engage in lengthyr eeieian graeeee e Puate hen eannglea elaeeifiea gm ed n h w erganiaalienal euetennere uee them upes of Organizational Buying Situations I Newtask buy I Salespeople rely on consultative selling skills I Straight rebuy I Salespeople constantly monitor satisfaction I Modified rebuy I Salespeople can provide serviceanticipate changes DEFINITION AGAIN ltltltltltltltlt Types of Consumer Buying Situations 1 buying situations where consumer involvement CI is none eg shampoo stationery 2 ouying situations where CI is low eg cookies we don t know how good it is 3 ouying situations where CI is high eg highprice ite risky eg buying a car laptop i w i r Achieving Alignment 39 The buying process is a systematic series of actions or a series of defined repeatable steps intended to achieve a result 39 Salespeople need to be clear on how decisions are being made Acquire specific information rather than make generalizations about the buyer s decisionma king process 39 V 7 I J 1 r 1 1 x r A J k r l I T J L J r A I A L I Evaiuahn 1f mr Ell tllll Plum VI VJ A L H Iiu j r lams 1 Need awareness I Salespeople can create value by determining problems and identifying solutions 2 Evaluation of solutions I Salespeople can create value by providing useful info rm atio n 3 Resolution of problems I This stage is where the customer has d o s o m et h i n g i 4 Purchase I Salespeople create value by arranging financing or supervising delivery and installation 5 Implementation I Value creation involves timely delivery superior installation accurate invoicing or followup contacts by the salesperson Understanding Buying Processes Transactional buyers Salespeople can eliminate any unnecessary costs or delays 39 Consultative buyers Salespeople focus attention on needs awarenesshelp customer evaluate solutions 39 Strategic Alliance buyers M0 impc rtanquot 5 the Study of the mags quot partner There is a need to explore my a Buyer Resolution Theory Why should I buy need What should I buy product Where should I buy source What is a fair price price When should I buy time Customer Strategy Model 39 I 39I L EEHE E Basic Needs Maslow Physiological food marshmallow 5ample shelter air water actualizaliml Security free from danger 55mm quot Social identification a with social groups friendship Esteem desire to feel worthy in eyes of others Selfactualization need for mastery selffulfillment Social Role expectations associated with position Reference groups categories of people you see yourself belonging to Social class group with similar values interests lifestyle Culture influences of group with common language environment also subcultures culture and subculture people who behave a certain way Perception Customer Need Formation quotFacts are negotiable Perception is rocksolid Selective attention We tend to screen out certain messages information overload Buyers conditioned by socialcultural background and need to use various selective processes Salespersons should encourage client to discuss perceptions of products Buying Motives A buying motive is an aroused need drive or desire that stimulates behavior to satisfy the aroused need 39 It s helpful to discover the quotdominant buying motive or DBM 39 Four basic motive types emotional rational patronage and product Emotional and Rational Motives Emotional 39 Acts due to passion or sentiment 39 Emotional appeals common 39 If two products are identical the salesperson who connects has the advantage Rational Acts on reason or judgment Relatively free of emotion Salespeople gather interpret and a v a y L I 1 I I jg 39 4 i quotl 439 V g l I g E L 39 r Patronage and Product Motives Patronage Product Buy from a particular Buyer believes one firm product is superior to 39 Past experience positive Others Relevant elements 39 Preferences for specifi superior service brands quality price product selection deSign engineering competent sales staff In quot l cmmf mummi J Ail Questions CREATING PRDUCT SOLUTIONS BM0641 MEDIA BUYING amp SALES NEGOTIATIONS 1 SEM 2 AY1314 x AZHARmmm Learning Objectives Explain the importance of developing a product strategy Describe product configuration Identify reasons why salespeople and customers benefit from thorough product knowledge Discuss the most important kinds of product and company information that salespeople usein a creating product solutions f Learning Objectives Describe how knowledge of competition improves personal selling List major sources of product information Explain the difference between product features and buyer benefits Demonstrate how to translate product features buyer benefits e quotThe product strategy is a wellconceived plan that emphasizes becoming a product expert selling benefits and configuring valueadded solutions i A Nike Product Strategy Focuses on ego focused branding This advertising strategy is fully centred on building the customer s ego and positioning the brand as one for those who achieve great things strategy isn t to make you think you need Nike gear to succeed but that you want it because succeed Nike brand strategy uses their 39 true formula to boost the ego of their uh 39 39 Fm d Yo u r G re at n e s s l I i MacDonald s Product Strategy i m lovin it In the 1990s McD transformed its corporate image by launching the quotFast and Convenient campaign that involved the radical adjustment of the company s product portfolio the refurbishment of restaurants to achieve an updated amp natural dining environment The fast and convenient elements of the McDonald s concept were supplemented by the healthy and more natural element by adding salads fruits and carrot sticks to the menu l a i by offering high quality coffee and healthyy39 it 39 Its model has become the norm for otherf organizations 39 Starbucks Product Strategy Starbucks created an quotaffordable luxury people could share and enjoy a cuppa with friends and colleagues away from work and home 1 Right market segmentation The company has stayed with the upperscale of the coffee market competing on comfort rather than convenience which is the case with its closest competitors w 2 Execution Focuses on its original prodauctw 1 w it 7 39 39 Ii Starbucks Product Strategy 39 3 Continues to come up with innovative products to expand the company s product portfolio leads Starbucks 4 China expansion There is a strong demand for Starbucks as a quotthird place Last year Starbucks opened 500 new stores in China StrategicConsultative Selling Model STHM39EEIIEICDNSULT TWE SELLING MDDEL he tegie see PFES E FiP time dep t Marketing Eeneep t Vlue Pereenel Selling if Beeeme e Preblem Seleen F e ner Deeelep e Pereenl Selling Phll phy Develep e Flele tienehip Str tegy Meet WinWin Phileeephy Prejee t Prefeeeienel Image Maintain High Ethieel Sindr de Jeweler a Pr du Strategy D eeeme e Predue t Expert El Sell Speeifie Benefite El Cenfigure Valueended Selu tiene 1 Are mutually shared answers to recognized customer problems 2 Are more encompassing than specific products 3 Provide measurable results 4 Require a greater effort to define and diagnose the customer s problems gtadd valueadded approachbenefit mimble ALSO ADDING VALUE ADDED SOLUTIONSBENEFITS Explosion of Product Options 39 More than 30000 consumer products are turned out each year The good news is greater consumer choice The bad news is with more choice buying process is more complicated Product Configuration Product Configuration refers to the product selection process Shows how different parts of your product mix can combine to solve the customer s problem Product configuration software I Incorporates customer selection criteria A I Identifies options pricing delivery scheule w 39 Can Integrate WIth contact managemel l Written Proposals Many clients ask for written proposals and some provide detailed guidelines Most written proposals include 1 Budget and overview Objective Strategy Schedule Rationale P 39gtPUI As a Salesperson You Need to Know if Your products if Your company and its policies if Your competition and industry BECOMING A PRODUCT EXPE T Product Information Categories Product development and quality improvement processes Performance data and specifications Maintenance and service contracts Price and delivery 1 Product Development and Quality Improvement Development Quality Be familiar with product 39 Quality control involves history measuring against Know stages of product Standards testing Extensive salesforce Link key features and training is key elem vv CU sto m e r n eed S of q u a ity co i 2 Performance Data amp Specifications 39 Most clients interested in product performance and specifications 39 Salespeople must be prepared to answer performancerelated questions 39 Data often critical when customer compares various products 3 Maintenance amp Service Contracts Provide servicerelated information in proposal andor at the time of sale 39 Understand customer s service and maintenance requirements 39 Customized service agreements add value 4 Price and Delivery 39 Clients expect salespeople to be well versed in price and delivery policies 39 Giving salespeople price and delivery decision power yields strong position Price objections often common barrier to closing thi sale Know Your Company 39 Salespeople sell their company as much or more than they sell a product 39 Organizational culture is a collection of beliefs behaviors and work patterns common to a firm s employees influences customer orientation of salespeople 39 Many prospects use a firm s past performance as index for current productsservices 39 Heme res ENGSrg g Sheng Siong Premetiehe Stare Leeater l Beheerate l quoti Latest News 3 Events Enheng Eieng Erurup39i ai39inner sf th e Mast Transpa rent Ills mpa n1 award 3112quot Hej Elf eial Elpzening sf Exheng Eisng Erlrup s Iiisrpsrate Headquarters s Eistrieutien Centre New Etere Elpzening in EIedek rJsrth Heme Gergerate Abeettis We are erre etSirrgapere s largest retailers with ever SEETIEA mitiierr irr reeerree W ii and we are prirreiplatltljrr errgaged irr eperatirrg the Sherrg Sierrg Greeeries Ehairr irre edirrg 25 steres ai aeress Siegapere as at the Latest Praetieahtle Date mt steres are primarilyr Ieeated irr retai Ieeatierrs iii the hearttlarrds etEirrgapere arid desigrred te preside eer eestemers with beth wet arid dry sheppirrg eptierrs irre edirrg a wide assertmerrt et Hire fresh and ehitltled predeee seeh as seateed meat and vegetah es irr additierr te preeessed paelraged arrdt39er preserved predeets as wetltl as gerrerai mereharrdise seeh as teitletries arid esserrtiail heeseheid predeets We have aise deeetleped a setleetierr et heese hrarrds te ether eer eestemers quaiiiy atlterrratiues te rratierrai brarrds at sehstarrtiai sarirrgs As at the Latest Fraetieah e Date we e er e39uer EIEIIEI predeets errder eer it heese brarrds Te seppert eer retaitl eperatierrs we aise have arr emterrsiare distributierr hetwerlr mmmmxessihg39taei ihes arid wareheusirrgtaeitlities hr t39lu iajrr E i i we eemp eted eerrstreetierr et eer rrew eerperate headquarters and wareheesirrg arid distributierr eerrtre at hiarrdai tirrlr at arr estimated eest et ep te SE55 mittierr lIIIIIur Mi i l l We strive te eiier eemmulrrities irr mhieh we eperate eliiaiitjrr predeets at reaserrab e Friees tegether with seeiee irr erder te ereate raiee te eer eestemers lIIIIIur 39h39isien IDer risierr is te he the preterred retaitler iii the market startirrg39trem Siegapere arid therr hurther ashere Know Your Competition Acquiring knowledge of the competition is an important step Knowing strengths and weaknesses of competing products allows you to emphasize your benefits 39 Prospects d0 raise questions about competition be Prepared to answer COKE VS PEPSI 1 5 F5 E Discussion Questions How would you respond if a customer asks you about a competitor s service which you know from all accounts is horrible 39 What would you tell a customer who has just said quotI think that salesperson from your competition is unethical What do you think Handling Competition Avoid referring to the competition during sales presentations Never discuss the competition unless you have your facts straight Avoid criticizing the competition Be prepared to neutralize competitor proposals by adding value to yours Be an Industry Expert 39 Salespeople need to become an expert in industry they represent 39 Need to move beyond product specialist to business analyst Knowledge of industry must be both current and detailed Sources of Product Information Product literature catalogs Websites Plant tours Internal sales and sales support team Customers The product itself Trade publications Features and Benefits A feature is data facts or characteristics of your product or service A benefit is whatever provides the customer with a personal advantage or gain I General benefits I Specific benefits Bridge Statements Transitional phrases linking a feature statement to a benefit statement 39 Sample bridge I This product is nationally advertised which means you will benefit from more presold customers Best method for presenting benefits to customers Bridge Statement Application For each of the following cell phone features write down a benefit for the customer then use a bridge statement to link them Features I Small and lightweight I Has voicecommand capability I Has wireless Internet capability a I Can store MP3 files comes with ea rbuds39 3 Benefits Not Features quotI don t think that we understood our real goal when we first started Federal Express We thought that we were selling the transportation of goods in fact we were selling peace of mind In quot l cmmf mummi J Ail Questions
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