The Psychology of Selling: Why People Buy McGraw-Hill/Irwin 3-2 Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter 3-3 Chapter Main Topics 3-4 The Tree of Business Life: Benefits Why People Buy–The Black Box Approach Psychological Influences on Buying A FABulous Approach to Buyer Need Satisfaction How to Determine Important Buying Needs–a Key to Success Chapter Main Topics The Trial Close–a Great Way to Uncover Needs and 3-5 SELL SELL Sequence Your Buyer’s Perception Perceptions, Attitudes, and Beliefs The Buyer’s Personality Should Be Considered Adaptive Selling Based on Buyer’s Style Chapter Main Topics 3-6 You Can Classify Buying Situations Technology Provides Information View Buyers as Decision Makers Satisfied Customers Are Easier to Sell to To Buy or Not To Buy–a Choice Decision Chapter The Tree of Business Life: Benefits vic Et h ic al r Se T T T T T TT T T T T Builds True e Relationships T I C Guided by The Golden Rule, Rule emphasize benefits to improve your: Communication Skills Ability to unselfishly help a person make the correct buying decision Exhibit 3-1: Stimulus-Response Model of Buyer Behavior Internalization process is referred to as a black box We cannot see into the buyer’s mind Stimulus-response model Sales Presentation Buyer’s Hidden Mental Process Sale/No Sale Stimulus Black box Response Exhibit 3-1: Stimulus-response model of buyer behavior What’s Known About Mental Process People buy for practical and emotional reasons Some of a person’s thoughts can be determined Buyers consider certain factors in making purchase decisions Psychological Influences on Buying Motivation to buy must be there Needs result from a lack of something desirable Wants are needs learned by the person Have practical needs Have psychological needs Economic needs: The best value for the money The buyer’s need to purchase the most satisfying product for the money View Buyers as Decision-Makers Five basic steps in the buying decision: 1.Need arousal 2.Collection of information 3.Information evaluation 4.Purchase decision 5.Postpurchase: Satisfaction Dissonance View Buyers as Decision-Makers Five basic steps in the buying decision: Need arousal Help customer realize needs Collection of information Customer may choose to collect information from variety of companies View Buyers as Decision-Makers Five basic steps in the buying decision: Information Evaluation Customer matches information with his needs, attitudes and beliefs You need to know: What product attributes are important in buying decision – Price? Quality? Service? What are the most important attributes? What are prospects attitudes toward: Your products? Your competitor’s products? What level of satisfaction is expected from buying this product? View Buyers as Decision-Makers Five basic steps in the buying decision: Information Evaluation, cont You must be prepared to: Alter beliefs about: Your products Your competitor’s products Alter importance of attribute Quality and service are more important than price Bring out unnoticed attributes Change person’s search for the “ideal” product into a search for a more “realistic” product View Buyers as Decision-Makers Five basic steps in the buying decision: Purchase - buyer’s decision to purchase can be altered by four basic factors: The attitude of others The “perceived risk” of buying the product – “Will I receive my money’s worth?” Uncontrollable factors – insufficient financing Salesperson’s action after decision has been reached View Buyers as Decision-Makers Five basic steps in the buying decision: Postpurchase – After the purchase, the buyer may experience: Satisfaction – the difference between what was expected to be received from the product and what was actually received Dissonance – tension over whether the right decision was made in buying the product Show buyer how to properly use the product Be realistic in your claims of the product Reinforce buyer’s decision Follow-up after sale to determine if problem exists Exhibit 3-12: Personal, Psychological, and Social Forces that Influence Consumers’ Buying Behavior Consumer buying decision process Satisfied Customers Are Easier to Sell To It is easier to sell to a customer than to a stranger Building a relationship is important to a salesperson’s success To Buy or Not to Buy–a Choice Decision A salesperson needs to understand: Factors that can influence the buying decision That buyers actually examine various factors that influence these decisions That buyers actually go through various steps in making decisions To Buy or Not to Buy–a Choice Decision A salesperson should consider the following questions before developing a sales presentation: What type of product is desired? What type of buying situation is it? How will the product be placed? How will the product be used? Who is involved in the buying decision? What practical factors may influence the buying decision? To Buy or Not to Buy–a Choice Decision, cont What psychological factors may influence the buying decision? What are the buyer’s important buying needs? To Buy or Not to Buy–a Choice Decision People will buy if: They perceive a need or a problem They desire to fulfill a need or solve a problem They decide there is a high probability that your product will fulfill their needs or solve their problem They believe they should buy from you They have the resources and authority to buy Summary of Major Selling Issues As a salesperson, be knowledgeable Understand the characteristics of the target market and how these characteristics relate to the buyer’s behavior The individual goes through various steps in the three buying situations of routine decision making, limited decision making, and extensive decision making Uncover who is involved in the buying decision and the main factors that influence the decision Summary of Major Selling Issues, cont… Psychological factors include the buyer’s motives, perceptions, learning, attitudes, beliefs, and personality Not all prospects will buy your products due to the many factors influencing their buying decision You will need to uncover buyer’s needs, solve buyer’s problems, and provide the knowledge that allows them to develop personal attitudes toward the product End of Chapter McGraw-Hill/Irwin 3-78 Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter ...The Psychology of Selling: Why People Buy McGraw-Hill/Irwin 3- 2 Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter 3- 3 Chapter Main Topics 3- 4 The Tree of Business... and Beliefs The Buyer’s Personality Should Be Considered Adaptive Selling Based on Buyer’s Style Chapter Main Topics 3- 6 You Can Classify Buying Situations Technology Provides Information... Approach to Buyer Need Satisfaction BENEFIT SELLING A FABulous Approach to Buyer Need Satisfaction Stressing benefits is a very powerful selling technique FAB selling technique helps emphasize benefits