Chapter 4: Purchase Behavior & Communication

MKTG. 377 February 14, 2013

HAPPY VALENTINES DAY!

Source: Advertising Age 2-14-13

Glengarry Glen Ross In-Class Review

1. What were the principal ethical predicaments which Sheldon (the Machine) Levene /(Jack Lemmon) and his cohorts faced? 2. How could Levenes extenuating circumstances justify his actions (or could they?) 3. What types of external pressures influenced the salespeoples unethical selling practices? 4. How did the sales-manager, John Williamson (Kevin Spacey) and top management (Mitch & Murray) foster these unethical practices? 5. How did Alec Baldwin, the nameless motivational speaker address the issue of ethics? 6. How does Dave Moss (Ed Harris) rationalize breaking the law?

Glengarry Glen Ross In-Class Review

7. How does George Aaronow (Alan Arkin) violate the rules of ethics? 8. What was unethical about Ricky Romas (Al Pacino) methods in prospecting and closing James Lingk (Jonathan Pryce)? 9. Why was Ricky Romas handling of Mr. Lingks cancellation unethical? 10. How would you suggest changing the sales environment of Mitch & Murrays real estate business to promote ethical selling practices without compromising overall sales performance?

According to an actual count by THE FAMILY MEDIA GUIDE,, how many F-Bombs were tossed in, GLENGARRY GLEN ROSS?

A - < 50
B - < 100 C - < 150 D - > 200 138 F-Bombs

Now The Sequels...

Glengarry Glen Girl Scout

Glengarry Glen Ross Jr.

Glengarry Glen Christmas

Glengarry Glen Ross Even Returned to Broadway Last December

With Al Pacino returning to play the Shelly Levene role instead of Ricky Roma 30 years later

Whats Alec Baldwins Newest Opportunity...

Ben & Jerrys Introduces New Schweedy Balls Flavor

Moving from Brass Balls to Schweddy Balls On Saturday Night Live

Chapter 4: Purchase Behavior & Communication:

1.

What youll learn about today

Determine the differences between individual and organizational buyers. Learn environmental influences on the purchase decision process. Find out what goes into the successful sending and receiving of a message. Examine methods for overcoming communication barriers. Understand the importance of using the voice as a communication tool. Explore the effects of body language and proxemics in selling.

2. 3.

4. 5.

6.

What do President Abe Lincoln & Gene Simmons have in common?

They both employed the KISS Method

KISS

When President Lincoln needed to communicate with his countrymen, he

K I S S

EPT T IMPLE, TUPID

Lincolns Gettysburg Address

Contained 268 words 198 were one syllable words 50 were two syllable words Only 20 words had more than two syllables

Small words really work!

Consumer Behavior Defined

Consumer behavior
is the set of actions that make up an individuals consideration, purchase & use of products and services. This includes both the purchase as well as the consumption of those products and services.

The Purchase Decision Process

Problem The Search for Internal Search External

Evaluation of The Purchase Post purchase

The 5 Step Purchase Decision Process I. Problem Recognition / Motive Arousal

May occur when the customer receives information from advertising or from conversation with friends that causes awareness of need In Relationship Selling, sometimes hinges on the Salespersons ability to uncover a need Or may occur when the consumer re-evaluates the current situation and perceives an area of void or dissatisfaction

The 5 Step Purchase Decision Process 2. The Search For Alternatives

Limited By:

Your sense of urgency Timing Your past experiences The risk involved with making this purchase The cost of the purchase

The 5 Step Purchase Decision Process 3. The Evaluation of Alternatives

All customers have specific criteria for making their decision Choice Criteria is what the Salesperson MUST identify Focus your efforts on the Prospects choice criteria

The 5 Step Purchase Decision Process 4. The Purchase Decision

Several alternatives may seem equally acceptable Can be made easier by a professional salesperson Involves a set of related criteria

Tangible features of the product Financial considerations: price, discounts, credit policies Intangible factors: reputation, past performance, or delivery dates

The 5 Step Purchase Decision Process 5. Post-Purchase Evaluation

Cognitive Dissonance is. Post-Purchase Anxiety

or Buyers Remorse The level of anxiety depends on the importance of the decision and the attractiveness of rejected alternatives

A Relationship Salesperson can reduce this by: Reinforcing the buyers belief that the right decision was made Demonstrating the capabilities and quality of the product

1 - Problem Recognition 2 - The Search for Alternatives Internal Search External Search

The Purchase Decision Process

3 - Evaluation of Alternatives 4- The Purchase Decision 5 - Post purchase

1 - Problem Recognition (Motive Arousal) 2 - The Search for Alternatives

Internal Search (Habitual, Routine)

External Search (Extensive, Limited)

3 - Evaluation of Alternatives 4- The Purchase Decision

5 - Post Purchase Evaluation

A MUSICAL INTERLUDE

Influences on the Purchase Decision Process

3 Types
1. 2. 3.

Behavioral Influences Psychological Influences Socio-cultural Influences

Influences on the Purchase Decision Process

1. 2. 3.

Psychological Influences:
Perception Mood of the Moment Attitude Attitudes are habitual patterns of response to previous experiences A negative attitude must be overcome before a sale can be made Attitudes are the minds paintbrush

They can color or affect any situation

Psychological Influences 4. Self-Image

In communicating with a Prospect, what they believe is true is often more important, than what is true Self image is an individuals unique and personal self-appraisal at any given moment in time. Self-image impacts the problem recognition phase of consumer behavior Many of our permanent beliefs about our self-image are developed in our childhood

Socio-cultural Influences

Culture is an influence that is a completely learned and handed-down way of life

1. 2. 3. 4.

Culture Global / MNC business considerations Physical Environment Social Class

Impacts the information search phase of consumer behavior Advertising campaigns must differ in their attempts to reach the various social classes

Socio-cultural: Doing Business in China

The Business Meeting

Always show up on time If you are running late, call Chinese tend to call to let you know they arrived Handle Business Cards with two hands Never write on the card Use honorifics / titles (drop the vice from Pres.)

Guanxi (Gift-giving)

Essential part of building connections Call ahead to ensure that both parties are giving gifts Personal touch is nice but status labels are nicer Large gifts being given usually mean big favors

Socio-cultural: Doing Business in China

Wining & Dining

Usually involves several meals, because relationships take time to nurture Thoughtfulness and patience Remember details including proper pronunciation of Chinese names, schooling Minimize your drinking (or else delay negotiations)

Karaoke

Hostesses are part of the experience Chinese take Karaoke very seriously After they sing, praise them

Organizational Buying Versus Consumer Buying - Key Differences

Organizational Buyers

Decision Maker - usually a buying center Buying Criteria - more complex Strategic Business Alliances - longer lasting Buying Motivation - rational, economic or emotional

Characteristics

Fewer in number Purchases usually involve larger dollar volume Less freedom of decision

Consumer Buying Motives

1. 2. 3. 4. 5.

Organizational Buying Motives

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Profit Economy Flexibility Uniformity of output Salability Protection Utility Guarantees Delivery Quality

Increase wealth Alleviate fear Secure social approval Satisfy bodily needs Experience happiness or pleasure Gaining an advantage Imitating Dominating others Recreation Improving health

6. 7. 8. 9. 10.

Multiple Buying Influences

Several people involved directly or indirectly in the decision making process The Buying Center
1. 2. 3. 4. 5.

Users Buyers Influencers Gatekeepers Decision Makers

Organizational Buying Motives

For Organizational Buyers, most of their purchase decisions are based on rational buying motives rather than emotional motives Decisions are usually made after extensive research and analysis concerning the product and the selling company prior to purchase

The Communications Agenda

The Channels Which Communications Must Flow Through:

1 - Source The sender of the message 2 - Encoding the message Achieved through the use of symbols 3 - The message itself 4 - Evaluating the prospects decoding of the message Did they get it?

The Communication Model for Verbal and Nonverbal Messages

Verbal/Nonverbal (Noise)

Source

Encoding (Implications)

Message (Actions)

Decoding (Inferences)

Receiver

Verbal Skills (Clarify Meaning)

Nonverbal Skills (Read)

Verbal Skills Noise Reduction

Communication Barriers
1. 2. 3. 4. 5.

Choice of Words Possible Distractions Timing of Meeting Interruptions Info Overload

Verbal Skills: Using Your Voice as a Sales Tool

1. 2. 3. 4. 5.

Clarity or Articulation Volume Silence Rhythm Rate of Speech

The Ability to Manage Communication Dimensions

38% % of Total Impact Tone of Voice

55% Visual

7% Words

Ability to Control Medium

Low

High

Non-Verbal Skills: Selling Without Words

Visual communication expresses the majority of a persons feelings and emotions Body Language Includes facial expressions, shifts in posture and stance, and movement of body limbs Understand the Body Language of Gestures Body Signals Hand Movements

Warning Signals
Watch for these signs that the prospect is either not understanding or not accepting the message:
Rubbing the nose Resting the head in the hands with elbows on the desk Finger under collar or rubbing back of neck

Proxemics: The physical distance individuals prefer to maintain

Successful salespeople move closer to a client when closing It is best to carefully test for a prospects comfort zone Comfort zones tend to change with sex, status, or age Four to twelve feet could be a good distance in which to begin a sales interview The intimate zone should be entered only by invitation or during a handshake

For Tuesday, February 19th

Read Chapter 5 - FINDING YOUR SELLING STYLE

Type a one paragraph summary on what your own Primary & Secondary Selling Styles are and why. Ill collect at the end of class

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