Understanding B2B vs B2C Sales: Key Concepts and Strategies

1. Present sales concepts and analysis. a. Describe the differences in selling characteristics between B2B and B2C selling. A business that sells to another business for distribution to the consumer is referred to as B2B sales. Generally, B2C sales occur when the customer or consumer receives the product directly from the business. The B2B market is often used in conjunction with a product that is being used in another product, such as chemicals or supplies, to produce a final product that is sold directly to the consumer by another company. One major difference between B2B and B2C sales is that B2B deals with selling to other businesses rather than consumers. It typically takes longer to process a B2B sale because there is usually more product, or the order is more costly. Due to the fact that it's a business that makes the purchase or the sheer quantity of product purchased, there can be a greater number of people involved in the transaction. Due to the fact that relatively few people are involved in B2C sales, and the product is usually available, B2C sales are usually fairly quick. b. Identify the three types of B2B buyers and differentiate between B2C and B2B buying decisions. Buyers from B2B are divided into three types: producers, organizations, and resellers. The ultimate determinant of this is what the business does with the products and services acquired. A producer uses the goods and services purchased in a B2B sale to create a new product. Chemical cleaning companies could do this by buying different chemicals from one company and mixing

them to make their products. B2B sales are transactions in which a government agency or nonprofit purchases a product or service for its constituents or to serve as a marketing tool. The first description of the cleaning products was purchased by Target or Walmart for resale to consumers. A resale B2B sale is when a company purchase completed products to resell to consumers. Compared to consumer sales, B2B sales are more complex and have a much higher risk, affecting both consumers and other businesses. If a bad B2B sale occurs, there is a greater risk of consumer safety or profit margins being affected. B2C sales have a much lower risk and can usually be considered impulse purchases since they are easily accessible. As opposed to a B2B sale where much thought has to be put into making sure the purchase is right. When it comes to a B2C sale, only the consumer is affected, so there is a much lower risk involved. Outline the six types of closes or methods for obtaining commitment. For each method, share an example of what you would say. In order to close a sale, there are six types: Direct Request, Benefit Summary, Assumptive, Compliment, or Alternative Choice, and Combination. As part of the Direct Method closure, you ask directly, "Do you want 10 or 20?". Following that is the Benefit Summary method where the salesperson reiterates the advantages of the purchase to the buyer to help move the sale forward. In an assumption-

based method, the salesperson assumes that the sale will happen based on the assumption that they have everything they need, such as "you already have everything so is it cash or credit cards?". In a complement or vanity method, the salesperson compliments the buyer, such as "Thank you for the opportunity to speak with you. If I can be of further assistance, please let me know." Alternative choice method is where you offer the purchaser multiple choices in your close such as would you like the red truck or black truck". Alternatively, you can use the combination method, which is also known as the complement and assumption method, at the same time, like "It was a pleasure talking to you today, please let me know when you are ready to sign the documents." 2. Use the selling process to effectively adapt to a sales situation a. Explain how the buying and selling processes are evolving. Buying and selling processes change as the years pass and things change. Buying and selling processes have evolved over time. Before social, cultural, and technological advancements created a new way to buy and sell, the process was viewed as streamlined and controlled. The online influence of a new group led to new decisions being made. Younger decades of millennials and generation Xers are taking over leadership roles as baby boomers retire and millennials and generation Xers move into the generational gap. It makes sense for these two groups to utilize this resource since they are more tech inclined. The decisionmakers rely on

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reviews and emotions to make their decisions now, and they use this as a source of information. Describe four strategies to handle objections and discuss how you would handle each one. There are four ways of handling objections, the first of which is to think of them as questions, such as "I'm not sure I need that.". The seller should answer that question as a question, such as "are you sure it is better to be safe than sorry?" to make the customer reconsider their decision. Next, you can respond to an objection by asking a question, such as "What is it that you are looking for?" when a client says "No, I'm fine.". It is important to get the client involved by asking questions to determine how to meet the client's needs. The third step is to take a break. You show the customer you are actively listening by taking a pause after they have spoken and by acknowledging their concerns and needs. When a customer express concerns, you could wait a few seconds before replying, "So all the features meet your expectations, are you just worried if you can get it on time?" Finally, you could explain the benefits by using testimonials. It is possible to respond to a customer's objection by providing information from past sales and testimonials from other users of the product or service if the customer replies "I haven't heard of that brand". As an example, you can say, "I sold a similar one two weeks ago and the buyer was in love with it and said it was perfect for them."

C. Outline the four stages of SPIN selling and provide an example question for each stage. Using SPIN selling, sales reps organize their calls around four categories to create a consultative relationship with their customers. There are four categories of need-payoff: situation, problem, implication, and need-payoff. Using this process, you can offer customized solutions to a customer's problems based on the idea that successful sales are customer-centered. In SPIN Selling, the four stages are Opening, Investigating, Demonstrating Capability, and Obtaining Commitment. Good openings create a good impression on the customer. In the beginning, you should try to put the customer at ease with no sales questions by asking them how their day is going and then slowly moving onto Situation questions to see what they need. In order to understand more about the customer, their business, and the needs they have, you need to Investigate. In order to be prepared for future opportunities and challenges, you must also be aware of those that may arise. In this case, one might ask things like "where are you based? ", or "what time zone are you in?". Following that, Demonstrating Capability means introducing your products and services and how they can help. How are you different from others? What can you do that others cannot? How do you differentiate yourself from your competitors? Why should people choose your product or service? For example, "We guarantee timely delivery with our trucking service, since we use two drivers for every truck.” Finally, we obtain a commitment, which sets us up for the next step in the sale, for example, another phone call or email with the decision makers like "So I will send you a copy of all

the information we discussed, and I will call you back in a week to discuss details with your team. Is that okay?" 3. Choose one of the following products and describe at least two ways in which the product is sold differently to businesses vs. consumers. As an example, I will look at the Apple iPhone, which can be sold to businesses in a business-to-business sale or directly to consumers in a business-to-consumer sale. Apple sells its products to B2B companies like AT&T, Verizon, T-Mobile, and many other service companies for resale to consumers. Also, Apple sells its products directly to consumers through a B2C model. It's important to note that Apple offers a warranty on all of its products, which means they're responsible regardless of the situation. Businesses purchasing products from B2B companies are responsible for that process, as well as how they sell them.

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Final exam MKT270 (1)

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