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54 Cards in this Set
- Front
- Back
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Product Positioning
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when you have a product or a service that you are marketing, and you want customersto see it in a certain way. When they think about your product, how you wantthem to perceive it in their mind.
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Positioning is in the eyes of the... |
Customer: your job is to influence that perception |
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Differentiation or competitive advantage |
basedon differentiation- what makes my product different from the competition aswell as holding all expectations for the customer |
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Ways to differentiate (9) |
quality price convenience salesperson customer service/support brand acceptance company reputation extended product value added |
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Quality |
definedby the customer |
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Price |
twoways of looking at price; position your product to be the least expensive- bestfor a target market with price sensitive. But then there’s target markets thatassociate price with quality, where you would want to have a high pricedproduct. |
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Convenience |
make it easy |
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Salesperson |
canbe the reason why you do business with the company |
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Customer service/support |
areyou there so your customers feel comfortable? Hotline, delivery times |
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Brand Acceptance |
differentiatethe brand |
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Company reputation |
Ex: IBM |
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Extended Product |
anythingthe product goes over and above that makes the customer buy the product ex.Quality, shipping, training, price. |
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Value Added |
cutcost, increase revenue, decrease competition |
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Two types of differentiation |
REAL: something that makes the product different and is real PERCEIVED: the customer thinks there is a differentiator, butthere actually is not |
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Principle: Reality follows perception (2) |
1)if you have a perceived differentiation, where your customers think you havesomething your competition doesn’t, make it real. 2) the customers will realizereal fast if you don’t offer what you say you are. Competitors will be thefirst ones to put it out there |
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Product Life cycle & four stages |
-the way you sell the product, and the sales message will be different ineach stage Four stages: Introduction, growth, maturity, decline then possibly reintroduction |
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Introduction |
anticipatethat sales will be slow, because customers need to get informed |
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Growth |
customersnow know the product, but this is where the competition gets you, selling willneed to be more stringent because of the competitive pressure. |
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Maturity |
sellingfocus changes because your resources to sell are taken away because sales aredropping so revenue is coming down |
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Decline |
salespeople usually don’t sell |
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Relationship between sales rep and consumerneeds (3)
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1. Sharedvalue- can we do business together?
2. Understandthe relationship- can we do business longterm together? 3. Emphasis is not on making a sale, it is about the relationship |
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Relationships that you build as a salesrep: 5 groups
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1. The Customer
2. Secondary decision makers- the buying center 3. Your own company’s team 4. Your own senior management 5. The relationship with yourself |
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Buying (2)
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1. The decision buyer changes
2. When subject managers come at you, they come at different times and in detail |
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Buyer behavior and sales
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customers buy for different reasons
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Three types of customers
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1. Consumers- inconsistent and unpredictable: a person whobuys a product or service for themselves or their family
2. Industrial- consistent andpredictable: buy products to run a business; supplies, resale 3. Government/Non-profit |
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Consumer trends (4)
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-premium/quality products
-value -customer respect -diverse buyers |
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Industrial Trends
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-quality
-customer service -price |
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Quality
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not high/medium/low product.
Quality is defined by the customer. Quality should “delight” the customer. |
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Customer service
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how do you support yourcustomers; fast response
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Price
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neutralize quality and customer service; becompetitive on quality and customer service.
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Maslow and the hierarchy of needs (5)
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physiological
security Social/acceptance esteem/recognition Self actualization |
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Influences on buying behavior (4)
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-role the customer plays
-reference groups -social class -culture and subculture |
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Role the customer plays
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what kind of a person do you seeyourself as. Ex: how you act and dress. In industrial selling, we sometimessell to the wrong person.
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Reference groups
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the people that influence you
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Social Class
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where you are in the socialclass structure is representative of the products that you use. If a lowerstructure class buy a certain product, the structures above will not buy thatproduct
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Culture and subculture
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Many different subcultures,which drive our behavior
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Listening/feedback (4)
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What is their listening behavior of thecustomer?-marginal- You’re here but you’re not really here
evaluative- When you are listening to me,and you’re thinking about it active- When you actively participate inthe conversation |
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Communication Styles (2) |
-behavior styles or social styles -not all the same |
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Communication Styles Bias |
the way you feel mostcomfortable communicating and how you react to a customer comes a you with acommunication style you aren’t familiar with |
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Communication Principles (5) |
-Differences exist -Style reflects behavior and thinking -Style remains constant -there are limited styles -you must know the customer |
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Communication styles model & Four options |
two variables to definecommunication skills; 1) High Dominance: competitive and controlling people that tendto be aggressive 2) Low Dominance: doesn’t need to be in charge, but you can’twalk all over them 3) High Sociability: people that are more open emotionally andshare their feelings 4) Low Sociability: less interaction, passive |
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Four Communication Styles |
1) Emotive: HD, HS 2) Director: HD, LS 3) Reflective: LD, LS 4) Supportive: LD, HS |
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Emotive |
dealingwith someone that is really good at interacting with you, but underneath itthey want to be in charge and maymake it seem like you’re in charge. A sales person should back off and let themthink they’re in charge. Ex: Barack Obama, Oprah Winfrey, Dave Letterman |
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Director |
Goaloriented, competitive, serious, opinionated, demanding, impatient. Don’t havetime or not interestedin sociability. Stay professional, get to the point, don’t look for any socialrelationship and make them think that they’re in charge. Ex: John McCain,Martha Stewart |
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Reflector |
They want to get work done but won’t push you,precise, specific, ask a lot of questions but are quiet. Don’t get toofriendly, be patient, don’t scare them, and there has to be no hard sell oroverly persuasive selling. Ex: Jimmy Carter |
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Supportive |
They wantto be your friend, light hearted, warm, interactive, don’t want to always justtalk about business,relaxed, compliant. Don’t come at them too hard, but you can build arelationship. |
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Options to figure out style (2) |
-social styles profile -myers briggs (16 personality types) |
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Qualifying suspects/prospects (4) |
UNIVERSEOF USERS SUSPECTS-people that can probably use your product PROSPECTS- people that shouldbe using your product CUSTOMERS |
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Three ways to gain new customers |
1) they want you to bring in more customers than theones that leave 2) improve the quality of the customer that you bringin 3) do not want to bringing new business at the expenseof current customers |
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Why Customers leave |
PROBLEMWITH YOU THEYMOVE PHYSICALLY NEW BUYERS ACQUISITIONS AND MERGERS CUSTOMER MOVE FOR OTHERREASONS COMPETITION BUYER DIES COMPANY CLOSES STOP USING YOUR PRODUCT (NOLONGER NEEDED) |
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Sources of new leads |
REFERRALS FRIENDSAND FAMILY- recommends do not sell to friends and family DIRECTORIES YELLOW PAGES TRADE PUBLICATIONS- industrypublicationsTRADE SHOWS TELEMARKETING LISTBROKERS WEBSITENETWORKING PARTIES EDUCATIONAL SEMINARS NON-SALES PEOPLE |
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Rules when going to see a potential customer (3) |
1. Never drop in unannounced on a customer: call and makean appointment 2. Anytime you go to see a customer, have an objective inmind; no “howdy” visits 3. Ask yourself: Do they need the product? |
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Portfolio model (4) |
how to prioritize looking for new business: High sales potential & high access: great customer Low sales potential & high access- will probably getthem, but not much out of them Potential high, access low- work at, take time, butworth it Potential low, access low- forget them |
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Adaptive Selling |
when the sales person tries tochange their communication style to be more in tune with the customer |
