1

MICROSOFT ALBANIA

SEMINAR ON SALES

2

Buyers behavior

3

THE MARKETING CONCEPTTHE MARKETING CONCEPT

The Purpose of SalesThe Purpose of Sales

Understanding the needsneeds and wantswants of your customers

Operating more effectivelyeffectively and efficientlyefficiently than your competitors

Creating a valuevalue by satisfying the needs and quality

4

Needs & WantsNeeds & Wants

Marketing begins with needs ,wants and Demands.

• NeedsNeeds - a situation in which we feel that we lack something ( I need to go somewhere, I feel hungry ,I want to be important ).

• WantsWants - is the personal and practical expression of how to satisfy the needsatisfy the need. I can want an expensive car to show off yet I will drink a glass of water if thirsty.

• DemandsDemands - the actualization of the wants if there is buying force behind it to support the want.( money )

5

What are customer needs and wants?

• A needA need is a basic requirement that an individual wishes to satisfy.

• People have basic needs for food, shelter, affection, esteem and self-development. Many of these needs are created from human biology and the nature of social relationships. Customer needs are, therefore, very broad.

• Whilst customer needsneeds are broad, customer wantswants are usually quite narrow.

6

WantsWants

• A want is a desire for a specific product or service to satisfy the underlying need.

Consider this example:Consider this example:• Consumers need to eat when they are hungry.

What they want to eat and in what kind of environment will vary enormously. For some, eating at McDonalds satisfies the need to meet hunger. For others a microwave ready-meal meets the need. Some consumers are never satisfied unless their food comes served with a bottle of fine Chardonnay.

• Consumer wants are shaped by social and cultural forces, the media and marketing activities of businesses.

7

customers DemandDemand

• Consumer demand is a want for a specific product supported by an ability and willingness to pay for it.

For exampleFor example;• many consumers around the globe want a

Mercedes. But relatively few are able and willing to buy one.

• Businesses therefore have not only to make products that consumers want, but they also have to make them affordable to a sufficient number to create profitable demandprofitable demand.

8

Businesses do not create Businesses do not create customer needscustomer needs

Businesses do not create customer needs or the social status in which customer needs are influenced. It is not McDonalds that makes people hungry. However, businesses do try to influence demand businesses do try to influence demand by designing products and services that are by designing products and services that are

• AttractiveAttractive• Work well• Work well• Are affordable• Are affordable• Are available• Are available

Businesses also try to communicate the relevant features of their products through advertising and other marketing promotion.

Which leads us finally to an important summary point.

A marketing orientated business is one that which has adopted the marketing concept

9

Maslow’s Hierarchy of Needs

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst, sex )

SelfSelf Actualization

(Self-development))

10

PrioritiesPriorities

• As we are short on resources , we have constantly to make decisions as to what is more important to us?

• If we choose one value we might have to

give up another: Public transport is cheaper yet it is less comfortable.

11

VALUEVALUE

• ValueValue - the psychological assessment of the consumer as to the ability of the product or service to satisfy his needs and wants.( how much are you ready to pay for air? )

• BenefitBenefit - the use the Customer/consumer is doing with the product/service,

12

customer added valuecustomer added value

and customer’s experienceand customer’s experience ¡ ±¦¦´ £¦¬� � �

²£¡¨²° ¨� �

¤²¬²° ¨� �

©̈ 

-

¤²¬´ ²³� �

£²ª� � � £³ ª ¤²¬� �

´ ¦¬�´£ ¦ ¥£«®� � �

¤²¬£́ £̈ ´�

¤²¬ « ¨�¡ ±¦¦�

Costs for Costs for customercustomer

PricePrice of productof product

TimeTime

EnergyEnergy

Psychological Psychological costcost

customer customer Added Added value 3value 3

Customer Customer benefitsbenefits

ProductProduct ValueValue

Service Service valuevalue

Personal Personal valuevalue

Image / Image / status status valuevalue

12

13

ExamplesExamples::

• Need : I am hungry • I can eat a hamburger at McDonalds, but I am on a diet

so I prefer to prepare a salad.• Yet I am tired and do not feel like starting to cook and

wash dishes, should I order a Pizza? But I have a date with my new girlfriend and I want to impress her, so perhaps we go to a fancy restaurant?

• Perhaps I go to this nice small un expensive restaurant in front of the sea and order grilled fish and salad?

• A customer will eventually choose the product or A customer will eventually choose the product or service that will give him the best satisfaction and service that will give him the best satisfaction and the best ratio of cost/benefit.the best ratio of cost/benefit.

14

Examples :

• I need to travel to work, my need to be mobile can be executed by walking, bicycles, train, car or donkey. I shall use the best method that will give me the best valuevalue ( saving time, status, cost/benefit etc)

• I need to get dressed. my need will change in accordance to place ( work, sports, dinner, sleep ) to fashion ( short, Long ,modern , traditional) and to what I want to project ( sexy, modest, well dressed) all these factors will dictate my Demand. Demand.

15

PrioritiesPriorities

• As we are short on resources , we have constantly to make decisions as to what is more important to us?

• If we choose one value we might have to

give up another: Public transport is cheaper yet it is less comfortable than a car.

16

VALUEVALUE

• ValueValue - the psychological assessment of the consumer as to the ability of the product or service to satisfy his needs and wants.

• BenefitBenefit - the use the consumer is doing with the product/service,

17

WHAT SATISFIES THE NEEDS AND WHAT SATISFIES THE NEEDS AND WANTSWANTS??

PRODUCTSPRODUCTS • anything that can be

offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.

SERVICESSERVICES • activities or benefits

offered for sale that are essentially intangible and don’t result in the ownership of anything.

18

• Understanding the marketing process is one of the most important factors

• Why does the buyer make a purchase?

• Without this knowledge a business find it hard to respond to customers need and wants.

19

Who are my clients ?

• Consumer clients Consumer clients :: those who purchase products/ service for their personal use.

• Industrial buyers : Industrial buyers : those who purchase items on behalf of their business or organizations.

20

“Customers tick “ The

A businessman spends considerable time trying to understand:

Who buys?

How do they buy?

When do they buy?

Where do they buy?

Why do they buy?

21

How does the customer react toHow does the customer react to my marketing mixmy marketing mix? ?

• Product

• Price

• Place

• Promotion

• People

• Physical evidence

• Process

22

why is it important ?

• If sales personnel understand these customer response better than the competition , then it is a potentially significant source of competitive advantage.

23

The Consumer Buying ProcessMarketing Inputs

ProductProductPricePrice

PromotionPromotionPlacePlace

The client client

Purchase Decisions

Product ChoiceProduct Choice

Location ChoiceLocation Choice

Brand ChoiceBrand Choice

Other ChoicesOther Choices

Psychological InputsPsychological Inputs

CultureCulture

AttitudeAttitude

LearningLearning

PerceptionPerception

24

How do customers buy?

• This model is important for anyone making marketing decisions. It forces the marketer to It forces the marketer to consider the whole buying process rather consider the whole buying process rather than just the purchase decisionthan just the purchase decision (when it may be too late for a business to influence the choice!)

• The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages.

25

Buyer behavior stimulus-response model

• In the next model, marketing and other stimuli enter the customers “black box” and produce certain responses.

• Marketing management must try to work out what goes on the in the mind of the customer – the “black box” ( BRAIN )

• The Buyer’s characteristics influence how he or she perceives the stimuli;

• the decision-making process determines what buying behavior is undertaken.

26

THE CLIENTTHE CLIENT

27

Characteristics that affect customer behaviourbehaviour

• The first stage of understanding buyer behavior is to focus on the factors that determine he “buyer characteristics” in the “black box”.

28

29

Factors of Factors of consumer behaviorconsumer behavior

Customer Customer ( gender, age, FLC)( gender, age, FLC)

PsychologicalPsychological structurestructure

PersonalPersonal needs & wantsneeds & wants

Social Social needsneeds

CultureCulture assetsassets

30

Decision-making process

31

STAGE 1 : need recognition

• The buying process starts with need recognition. At this stage, the buyer recognises a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins).

32

STAGE 2 : information search

• An “aroused” customer then needs to decide how much information (if any) is required.

• If the need is strongIf the need is strong and there is a product or service that meets the need close to hand, and the risk is not too high , then a purchase decision is likely to be made there and then.

• If not, then the process of information search begins.

33

Information search ( cont.)

A customer can obtain information from several sources:

• Personal sourcesPersonal sources: family, friends, neighbours etc• Commercial sourcesCommercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays• Public sourcesPublic sources: newspapers, radio, television, consumer organisations; specialist magazines• Experiential sourcesExperiential sources: handling, examining, using the product

34

STAGE 3 : the evaluation stage

• The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers Research suggests that customers value and respect personal sources more value and respect personal sources more than commercial sources (the influence of than commercial sources (the influence of “word of mouth”).“word of mouth”). The challenge for the marketing team is to identify which information sources are most influential in their target markets.

• In the evaluation stage, the customer must choose between the alternative brands, products and services.

35

the evaluation stage ( cont. ) How does the customer use the information obtained?• An important determinant of the extent of evaluation is

whether the customer feels “involved” in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice.

• Where a purchase is “highly involving”,“highly involving”, the customer is likely to carry out extensive evaluation.

• High-involvement purchases include those involving high expenditure or personal risk or emotional involvement – for example buying a house, a car or making investments.

• Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes.

36

Why should a marketer need to understand the customer

evaluation process?

• The answer lies in the kind of information that the marketing team needs to provide customers in different buying situations.

37

• In high-involvement decisions, the marketer needs to provide a good deal of information about the positive positive consequences of buyingconsequences of buying. The sales force may need to stress the important stress the important attributes of the product, the attributes of the product, the advantages compared with the advantages compared with the competitioncompetition; and maybe even encourage encourage “trial” or “sampling” of the product in “trial” or “sampling” of the product in the hope of securing the sale.the hope of securing the sale.

38

The buy

39

Closing the Deal

4 Easy Steps to Rememberat Buying Time

40

4 Steps to Closing the Deal

1. Tune Your Radio To WIFM

1. Ask For The Deal

1. Stop Selling

1. Closing the deal with confidence

41

1“ .Tune your Radio to WIFM”

o WIFM – “What’s In it For Me?”

o This is the favorite and only station your client listens toKnow why they are buying

Remind them why they are buying

Only talk to them about how this deal will help them!

42

2 .Ask for the Deal

o You have identified your clients needs

o You have presented a consultative solution to their needs

o You have earned the right to ask them to buy your recommended solution…So Ask!

43

3 .Stop Selling

o Your clients know what they want o They asked you to provide it and you did!o The more you talk the more they think

you are not done providing the solutiono Stop talking and let them decide to decide

44

4 .Close the Deal

o Closing is about confidenceIf your client feels you have confidence in your solutionsolution, they will have confidence in your

solution.

ConfidenceConfidence comes from preparation

Role playRole play your final presentation and prepare answers to objections

45

Post-purchase evaluation - Cognitive Dissonance

• The final stage is the post-purchase evaluation the post-purchase evaluation of the decisionof the decision. It is common for customers to experience concerns after making a purchase decision.

• This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable.

• In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time.

46

Cognitive Dissonance ( cont. )

• To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs.

• Then after having made a purchase, the customer should be encouraged that he or she has made the right decision

• Always suggest a way out or service for this stage to minimize hesitance/ objections.

47

Are decision of purchase logical or emotional ?

להכניס פה את המצגת של יסעור.•