4.01 Explain the importance and types of selling.
Selling is… • …is planned communication with prospective customers to assess and satisfy their needs and wants while making a profit • …is the exchange of appropriate goods and services from producers to consumers for a price
Selling • Businesses and sponsors might purchase incentives, media time, naming rights, pre-/post-game entertainment, signage, tickets (group or season), and products designed for the corporation's target market.
Selling Continued . . . • Fans may purchase food/beverages; merchandise; pre/post game entertainment and tickets (group or season). • Sales of sponsored products should increase as a result of advertisement at an event. • Sponsors pay a rights fee for media time to a sports or entertainment organization for the opportunity to provide broadcasts.
Data-based marketing • Data-based marketing involves the collection or information about past, current, and potential consumers. • In sports marketing, a database is needed to generate leads or sources of new customers.
Data-based marketing continued . . . • One common way to generate leads is through telemarketing. Telemarketing is communicating with customers via the telephone. Ex: Sales rep. from Nike call customers who recently purchased the new Jordan shoes to offer them a 2nd pair at 25 discount
Personal Selling • Personal selling is a two-way communication between a representative of the company and the customer. • Ex: A sales associate at the Carolina Hurricanes team store, The Eye, selling an authentic team jersey to a fan.
Business to Business Selling • B2B selling takes place in a manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business (outside sales). • Ex: Good Year Tire Corporation making a sales presentation at Hendrick Motor Sports
Direct Mail • Direct mail is personal and received in the mailbox. • Used to initiate the sales process. • Ex: Carolina Panthers mail information introducing their new Fan Rewards program.
Internet Selling • Internet Selling (www) is executed using the Internet. • Ex: A Monsters, Inc. fan purchasing the DVD, or a customer purchasing stuffed toys from www.disney.com
Customer vs. Consumer • The customer is the person who buys the product or service • The consumer is the person who uses the product or service • Ex: Mary selected season tickets to the Carolina Hurricanes for her husband’s 40th birthday. Mary purchased 2 tickets so her husband could take a friend. Mary is the customer, while her husband and his friend are the consumers.
Need vs. Want • A need is anything necessary or required to live. EX: We all need food to survive. • A want is an unfulfilled desire. EX: Tickets to a Carolina Panthers football game. • It is crucial that sports and entertainment businesses help customers recognize the value and need of the products.
Selling and Full-Menu Marketing • Selling helps customers make informed buying decisions, which results in customer satisfaction and repeat business. • Full-menu marketing is having products or services that meet virtually any customer's needs and/or wants.
Feature-Benefit Selling • Product features are the basic, physical, and extended characteristics of an item. Ex: Purchasing front row seats at the Emmy Awards • Involves matching the characteristics of a products to a customer’s needs and wants. EX: A company leases a suite at the Emmy Awards to host their preferred clientele.
Feature-Benefit Selling Continued . . . • Customer benefits are the advantages or personal satisfaction a customer will get from a good or service. Ex: The benefit of being on the front row at the Emmy Awards results in better viewing of the awards and presentations.
Customer Buying Motives • Buying motives are the motives for to purchase a product. • Rational motives • Emotional motives • Patronage motives
Rational Motives • Based on conscious, logical thinking and decision making. • Product dependability, time or monetary savings, quality, and price are rational motives for buying or purchasing a products or service. • Ex: A mother purchases lawn seats for a Britney Spears concert instead of the more expensive stadium seats.
Emotional Motives • Based on feelings • Social approval, recognition, power, love, and prestige are emotional motives for buying or purchasing a product • Ex: A parent camping out overnight to get front row seats to the JayZ concert for her daughter’s 13th birthday.
Patronage Motives- • Based on loyalty • Low prices, high quality, friendly staff, great customer service, merchandise assortment, and/or convenience of location are patronage motives for buying or purchasing a product. • Ex: Alyssa only purchases her son’s cross country shoes at the Run for Your Life athletic shoe store because of their excellent customer services and close proximity to her home.
Decision Making Process • Customers go through a decision-making process in order to determine what products they will buy.
Extensive Decision-Making • Occurs when there is a high level or perceived risk, a product or service is very expensive or has a high value to the customer. • A customer will conduct research and evaluate product alternatives before making a decision • Ex: The Buffalo Bills equipment manager decides whether equipment should be purchased from All-star Athletics or Winners Incorporated.
Limited Decision Making • Occurs when a customer buys products that he or she has purchased before but not regularly. • Ex: The Carolina Little League Team decides whether to advertise in the local paper this season or continue with the same billboard as they had last year.
Routine Decision Making • Occurs when little info. is needed about the product being purchased • Ex: Mountainview High School baseball coach always purchases the teams chewing gum from the local wholesale store.
Activities that take Place During the Preapproach • Product information • Reviewing current trade periodicals • Sources and methods of prospecting
Product Information • Knowing how to use and care for a product is essential when educating consumers and demonstrating a product. EX: Demonstrating to a customer the proper way to oil a baseball glove. • Four sources of product information are direct experience, written publications, other people, and formal training. Ex: Debbi is a sales associate for Foot Locker. She attends an Adidas clinic on the proper way to fit children for shoes.
Reviewing Current Trade Periodicals • It is crucial to stay abreast of current trends and industry information. • The sales manager for the Carolina Hurricanes subscribes to Street & Smith’s Sports Business Journal
Sources and Methods of Prospecting • A prospect is a potential customer. • Ex. Employer leads, telephone directories, trade and professional directories, commercial lists, customer referrals and cold canvassing. • Ex. The Miami Heat purchases the mailing list of the top 50 Fortune 500 companies