• 1. Selling Ingram, Laforge, Avila, Schwepker, and WilliamsMultimedia Presentations Steven J. Remington, Ph.D. Buena Vista University August, 2000
    • 2. Module 1 An Overview of Personal Selling
    • 3. Evolution of Personal SellingEarly Origins of Personal Selling Industrial Revolution Era (1700s Europe; 1850s US) Post-Industrial Revolution Era (1800s Europe; 1900 US) Canned Sales Presentation The War and Depression Era Professionalism: The Modern Era
    • 4. Characteristics of Sales ProfessionalismCustomer Orientation Use of Truthful and Nonmanipulative Tactics Focus on Long-Term Satisfaction of Customer and Selling Firm
    • 5. Cost/Sales Call$80-$242/ call
    • 6. Contributions of Personal Selling Salespeople and SocietySalespeople as Economic Stimuli Salespeople and Diffusion of Innovation
    • 7. Contributions of Personal Selling Salespeople and the Employing FirmSalespeople as Revenue Producers Market Research and Feedback Salespeople as Future Managers
    • 8. Contributions of Personal Selling Salespeople and the CustomerAre honest Understand general business and economic trends, as well as the buyer's business Provide guidance throughout the sales process Help the buyer to solve problems Have a pleasant personality and a good professional image Coordinate all aspects of the product and service to provide a total packageIndustrial buyers prefer to deal with salespeople who:
    • 9. Classification Of Personal Selling JobsSales Support Personnel Missionary Salespeople Detailer Technical Support Salespeople New Business Pioneers Order-gettersExisting Business Order-takers Insider Sales (non-retail) Direct-to-Consumer Sales (retail) Combination Sales Jobs
    • 10. Characteristics Of Sales CareersJob Security Advancement Opportunities Immediate Feedback Prestige Job Variety Independence Compensation Boundary-Role Effects
    • 11. Boundary-Role Effects Role StressRole Conflict Role Ambiguity Role stress must be dealt with to insure maximum sales productivity
    • 12. Qualifications And Skills Required For Success By SalespeopleEmpathy To see things as others would see them Ego Drive Determination to achieve goals Ego Strength Self-assured and self-accepting Interpersonal Communication Skills Including listening and questioning Enthusiasm In general, and for sales as a career Additional Characteristics Related to a Given Sales Job
    • 13. Managing the Sales Force(1:26)
    • 14. Module 2 Understanding Buyers
    • 15. Types of BuyersConsumer Markets Business Markets
    • 16. Distinguishing Characteristics of Business MarketsBuyers are Larger but Fewer in Number Derived Demand Higher Levels of Demand Fluctuation Purchasing Professionals Multiple Buying Influences Close Buyer-Seller Relationships Supply Chain Management
    • 17. The Buying Process (Figure 2.1)Determination of Item and Quantity NeededRecognition of the Problem or NeedInitiating the Relationship Gathering and Studying Pre-call Information Approaching and Initiating Contact Assessing the Situation and Discovering Needs
    • 18. Selection of an Order RoutineEvaluation of Proposals And Selection of SuppliersThe Buying Process (Figure 2.1)Acquisition and Analysis of ProposalsRecognitionInitiating the RelationshipDeveloping the Relationship Select Presentation Explain Features Confirm Benefits Handle Objections Earn and Gain CommitmentSearch and Qualification Of Potential SourcesDescription of Item and Quantity NeededDetermination
    • 19. The Buying Process (Figure 2.1)Recognition of the Problem or NeedDeterminationRecognitionInitiating the RelationshipDescriptionSearch and QualificationProposalsSelection of SuppliersOrder RoutineDeveloping the RelationshipEnhancing the Relationship Follow-up to Assess Customer Satisfaction Take Action to Assure Customer Satisfaction Encourage Critical Encounters Expand Collaborative Involvement Add Values and Enhance Mutual Opportunities
    • 20. Phase One Recognition of the Problem or Need: The Needs Gap (Figure 2.2)Desired State Produce 1,250 units/dayActual State Produce 1,000 units/dayThe Gap Or Need 250 units/day
    • 21. Complex Mix of Business Buyer Needs (Figure 2.3)Organizational NeedsIndividual NeedsFunctionalFunctionalPsychologicalPsychologicalKnowledgeKnowledgeSocialSocialSituationalSituational
    • 22. Phase Two Determination of Characteristics of the Item and the Quality Needed Phase Three Description of Characteristics of the Item and the Quality Needed Phase Four Search for and Qualification of Potential Sources
    • 23. Phase Five Acquisition and Analysis of Proposals Evaluating Suppliers and ProductsMulti-Attribute Model Assessment of Product or Supplier Performance (P) Assessing the Relative Importance of Each Characteristic (I)
    • 24. Phase Five Acquisition and Analysis of Proposals Multi-Attribute Model of Adhesives by GM Buyers
    • 25. Phase Five Acquisition and Analysis of Proposals Employing Buyer Evaluation Procedures to Enhance Selling StrategiesModify the Product Offering Being Proposed Alter the Buyer’s Beliefs about the Proposed Offering Alter the Buyer’s Beliefs about the Competitor’s Offering Alter the Importance Weights Call Attention to Neglected Attributes
    • 26. Phase Six Evaluation of Proposals and Selection of SupplierPhase Seven Selection of Order RoutinePhase Eight Performance Evaluation and Feedback
    • 27. Phase Eight Performance Evaluation and FeedbackUnderstanding Post-Purchase Evaluation and the Formation of Satisfaction
    • 28. (Figure 2.4) Complex Mix of Business Buyer Needs Buyers Level of Satisfaction63% Level of Influence On Buyers’ Satisfaction37% Level of Influence On Buyers’ Satisfaction Psychological Attributes“Delighters” Functional Attributes“Must-Haves”
    • 29. Phase Eight Performance Evaluation and FeedbackUnderstanding Post-Purchase Evaluation and the Formation of Satisfaction The Growing Importance of Salespeople in Buyer’s Post-Purchase Evaluation
    • 30. Types of Purchasing Decisions Buying SituationStraight Rebuy Buying Situation Routinized Response Behavior Modified Rebuy Buying Situation Limited Problem Solving New Task Buying Situation Extensive Problem Solving
    • 31. Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit 2.6)
    • 32. Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit 2.6)
    • 33. Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit 2.6)
    • 34. Types of Purchasing Decisions Three Types of Buying Decisions (Exhibit 2.6)
    • 35. Organizational Buyer Behavior Buying CenterInitiators Users Gatekeepers Influencers Deciders Purchasers
    • 36. Current Developments in PurchasingIncreasing Use of Information Technology Relationship Emphasis on Cooperation and Collaboration Supply Chain Management Increased Outsourcing Target Pricing Increased Importance of Knowledge and Creativity
    • 37. Module 3 Building Trust
    • 38. Buyers define trust using terms such as:Openness Dependability Candor Honesty ConfidenceSecurity Reliability Fairness Predictability
    • 39. What is Trust?Trust answers the questions: Do you know what you are talking about? Will you recommend what is best for me? Are you truthful? Can you and your company back up your promises? Will you safeguard confidential information that I share with you?
    • 40. Why is Trust Important?The shift toward relationship selling emphasizes the initiation and nurturing of long-term buyer-seller relationships based on mutual trust and value-added benefits.
    • 41. How to Earn Trust Trust Builders (Figure 3.1)TrustExpertiseDependabilityRepresentationCompetenceCompatibility/ LikeabilityCandorContributionCustomer Orientation
    • 42. Knowledge Bases Help Build Trust and Relationships (Figure 3.2)IndustryServiceProductCompetitionCompanyPrice/ PromotionTechnologyMarket/ CustomerPossible Knowledge Bases
    • 43. Sales Ethics Image of SalespeopleTelevision, movies, broadway productions, and the popular press have contributed to a negative image of salespeople portraying them as being associated with deceptive, illegal, and non-customer-oriented behavior.
    • 44. Sales Ethics Image of Salespeople Deceptive Practices When salespeople give answers when they do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer. Salespeople can create product liabilities by: Expressed Warranty Misrepresentation Negligence
    • 45. Sales Ethics Image of Salespeople Illegal ActivitiesDefraud Con Misuse Company Assets
    • 46. Sales Ethics Image of Salespeople Non-Customer-Oriented BehaviorPushy Hard Sell Fast Talking High Pressure
    • 47. Sales Ethics Image of Salespeople (Exhibit 3.8)Deceptive Practices Deceptive Deceive Hustle Scam Exaggerate Withhold BluffNon-Customer-Oriented Behavior Pushy Hard Sell Fast Talking High PressureIllegal Activities Defraud Con Misuse Company Assets
    • 48. Module 4 Communication Skills
    • 49. Sales Communication as a Collaborative ProcessRelational Sales Communication A two-way and naturally collaborative interaction Allows buyers and sellers to Develop a better understanding of the need situation Work together to best provide for the customer’s needs
    • 50. Verbal Communication: Questioning Types of Questions Classified by Amount and Specificity of Information DesiredOpen-end or Nondirective Questions – free response What happens when…? How do you feel…? Describe the… Closed-end Questions – response limited to a few words. Are you… How many… How often… Dichotomous/Multiple-Choice Questions – directive forms of questioning Which do you prefer, the ____ or the ____?
    • 51. Verbal Communication: Questioning Types of Questions Classified by Strategic PurposeProbing Questions – designed to penetrate below generalized or superficial information Requesting Clarification “Can you share an example of that with me?” Encouraging Elaboration “How are you dealing with that situation now?” Verifying Information and Responses “So, if I understand you correctly… Is that right?”
    • 52. Verbal Communication: Questioning Types of Questions Classified by Strategic PurposeProbing Questions Evaluative Questions – use open- and closed-end question formats to gain confirmation and to uncover attitudes, opinions, and preferences of customer. “How do you feel about…?” “Do you se the merits of…?” “What do you think…?”
    • 53. Verbal Communication: Questioning Types of Questions Classified by Strategic PurposeProbing Questions Evaluative Questions Tactical Questions – used to shift or redirect the topic of discussion “Earlier you mentioned that…” “Could you tell me more about how that might affect…”
    • 54. Verbal Communication: Questioning Types of Questions Classified by Strategic PurposeProbing Questions Evaluative Questions Tactical Questions Reactive Questions – refer to or directly result from information previously provided by the other party. “You mentioned that … Can you give me an example of what you mean?” “That is interesting. Can you tell me how it happened?”
    • 55. Guidelines for Combining Types of Questions for Maximal Effectiveness (Exhibit 4.1)Amount of and Specificity of Information DesiredChoice from AlternativesDiscussion and InterpretationConfirmation and AgreementExplore and Dig for DetailsGain Confirmation & Discover Attitudes/OpinionsChange Topics or Direct AttentionFollow-Up Previously Elicited StatementsAmount of and Specificity of Information DesiredOpen-end Questions Designed to be Probing in NatureClosed-end Questions Designed to be Probing in NatureDichotomous or Multiple-choice Questions Designed to be Probing in NatureOpen-end Questions Designed to be Reactive in NatureClosed-end Questions Designed to be Reactive in NatureDichotomous or Multiple-choice Questions Designed to be Reactive in NatureOpen-end Questions Designed to be Tactical in NatureClosed-end Questions Designed to be Tactical in NatureDichotomous or Multiple-choice Questions Designed to be Tactical in NatureOpen-end Questions Designed to be Evaluative in NatureClosed-end Questions Designed to be Evaluative in NatureDichotomous or Multiple-choice Questions Designed to be Evaluative in Nature
    • 56. Verbal Communication: Strategic Application of QuestioningGenerate Buyer Involvement Provoke Thinking Gather Information Clarification and Emphasis Show Interest Gain Confirmation Advance the Sale
    • 57. Verbal Communication: SPIN Questioning SystemSituation Questions – solicits general background information and descriptions of the buyer’s existing situation “Who are your current suppliers?” “Do you typically purchase or lease?” “Who is involved in the purchasing decisions?”
    • 58. Verbal Communication: SPIN Questioning SystemSituation Questions Problem Questions – follow and relate to situation questions probing for specific difficulties, developing problems, and areas of dissatisfaction “How critical is this component for your production?” “What kind of problems have you encountered with your current suppliers?” “What types of reliability problems do you experience with your current system?”
    • 59. Verbal Communication: SPIN Questioning SystemSituation Questions Problem Questions Implication Questions – follow and relate to information from the problem questions assisting the buyer in understanding the potential problems of the current problem and the urgency in resolving it “How does this affect profitability?” “What impact does the slow response of your current supplier have on the productivity of your operation?” “How would a faster piece of equipment improve productivity and profits?” “What happens when the supplier is late with a shipment?”
    • 60. Verbal Communication: SPIN Questioning SystemSituation Questions Problem Questions Implication Questions Need-payoff Questions – used to propose a solution and develop commitment from the buyer, based on the implications of the problem “Would more frequent deliveries allow you to increase productivity?” “If we could provide you increased reliability, would you be interested?” “If we could improve the quality of your purchased components, how would that help you?” “Would you be interested in increasing productivity by 15 percent?”
    • 61. Funneling Sequence of ADAPT Techniques for Needs Discovery (Figure 4.1) Broad bases and general facts describing situation Non-threatening as no interpretation is requested Open-end questions for maximum informationAssessment Questions Questions probing information gained in assessment Seeking to uncover problems or dissatisfactions that could lead to suggested buyer needs Open-end questions for maximum informationDiscovery Questions Show the negative impact of a problem discovered in the discovery sequence Designed to activate buyer’s interest in and desire to solve the problem.Activation Questions Projects what life would be like without the problems Buyer establishes the value of finding and implementing a solutionProjection Questions Confirms interest in solving the problem Transitions to presentation of solutionTransition Questions
    • 62. Verbal Communication: Listening (Figure 4.2)Effective Active ListeningPay AttentionMonitor Non-VerbalsParaphrase and RepeatMake No AssumptionsEncourage Buyer to TalkVisualize
    • 63. Verbal Communication: Using Different Types of ListeningSocial Listening Serious Listening Active Listening Concentration Cognition
    • 64. Verbal Communication: SIER Hierarchy Active Listening (Figure 4.3)SensingInterpretingEvaluatingResponding
    • 65. Verbal Communication: Giving InformationUnderstanding the Superiority of Pictures over Words Impact of Grammar and Logical Sequencing
    • 66. Nonverbal CommunicationFacial Expressions Eye Movements Placement and Movements of Hands, Arms, Head, and Legs Body Posture and Orientation Proxemics Variation in Voice Characteristics Speaking Rate and Pause Duration Pitch or Frequency Intensity and Loudness
    • 67. Common Nonverbal Clusters (Exhibit 4.8)Cluster NameCluster MeaningBody Posture & OrientationMovement of Hands, Arms, & LegsEyes & Facial ExpressionOpennessOpenness, flexibility and sincerity Moving closer Leaning forward Open hands Removing coat Unbutton collar Uncrossed arms & legs Slight smile Good eye contactDefensivenessDefensiveness, skepticism, and apprehension Rigid body Crossed arms & legs Minimal eye contact Glancing sideways Pursed lips Tilted headEvaluationEvaluation and consideration of message Leaning forward Hand on cheek Stroking chin Chin in palm of hand Dropping glasses to lower nose DeceptionDishonesty and secretiveness Patterns of rocking Fidgeting with objects Increased leg movement Increased eye movement Frequent gazes elsewhere Forced smileReadinessDedication or commitment Sitting forward Hands on hips Legs uncrossed Feet flat on floor Increased eye contactBoredomLack of interest and impatience Head in palm of hands Slouching Drumming fingers Swinging a foot Brushing & picking at items Tapping feet Poor eye contact Glancing at watch Blank stare
    • 68. Written Communication: Sales Proposals The Seven Deadly Mistakes of Proposal WritingNot writing a proposal. Not fully understanding the customer’s business. Missing the buyer’s deadline. Producing a proposal with little “drive-up” appeal. Not saying anything that really makes a difference. Using a standardized boilerplate approach. No one owning the responsibility or having the authority to create quality and effective proposals.
    • 69. Written Communication: Sales Proposals 5 Common Parts of a ProposalExecutive Summary Needs and Benefits Analysis Company Description Pricing and Sales Agreement Suggested Action and Timetable
    • 70. Module 5 Self-Leadership and Teamwork Skills
    • 71. Five Sequential Stages of Self-Leadership (Figure 5.1)Setting Goals & ObjectiveTerritory Analysis & Account ClassificationDevelopment & Implementation Of Strategies & PlansTapping Technology & AutomationAssessment & EvaluationStage 1Stage 2Stage 3Stage 4Stage 5
    • 72. Effective Self-Leadership Stage One: Setting Goals and ObjectivesWhat makes a good goal? Realistic, yet Challenging Specific and Quantifiable Time Specific Working with different levels and types of goals Personal Goal Territory Goal Account Goal Sales Call Goal
    • 73. Effective Self-Leadership Stage Two: Territory Analysis and Account ClassificationTerritory Analysis Who are prospective buyers? Where are they located? What and why do they buy? Who has the authority to buy, who influences the buying decision? What is the probability of selling this account? What is the potential share of account that might be gained?
    • 74. Effective Self-Leadership Stage Two: Account Classification Class of AccountSchema One: InquisLogic, Inc.Schema Two: Web Resource Associates, LLCSchema Three: Federal Metal Products “A” AccountsAccounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 24Accounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 52High volume current customers (20% of accts; 80% of sales) Annual # of calls = 48 “B” AccountsMedium potential accounts (80% of accts; 20% of sales) Annual # of calls = 12Accounts with moderate sales potential, but who are regular/reliable customers Annual # of calls = 24Accounts with high potential, but who are not current customers Annual # of calls = 12 “C” AccountsAccounts with least sales potential Annual # of calls = 4Lower sales potential accounts Annual # of calls = 8Medium potential accounts that are current customers Annual # of calls = 12 “D” AccountsNone – This schema uses only 3 classes of accountsAccounts that cost more than they produce in sales or profits Annual # of calls = 0Accounts with medium potential, but who are not current customers Annual # of calls = 6Exhibit 5.4 – Different Single Factor Account Schema
    • 75. Effective Self-Leadership Stage Two: Account Classification (Exhibit 5.5)Portfolio Model Segments and StrategiesCompetitive PositionSegment 1 Level of Attractiveness Selling Effort StrategySegment 2 Level of Attractiveness Selling Effort StrategySegment 4 Level of Attractiveness Selling Effort StrategySegment 3 Level of Attractiveness Selling Effort StrategyStrongWeakLowHighAccount Opportunity
    • 76. Effective Self-Leadership Stage Three: Developing and Implementation of Strategies and PlansEstablishing and Implementing Selling Task and Activity Plans Do them, and do them in writing Keep it current and flexible Establishing Territory Route Plans Straight-Line Route Pattern Cloverleaf Route Pattern Circular Route Pattern Leapfrog Route Pattern Major-City Route Pattern
    • 77. Effective Self-Leadership Stage Four: Tapping Technology and AutomationComputers Siebel Systems Proximity Internet and World Wide Web Internet Intranets and Extranets Pagers and Cell Phones Voice Mail High-Tech Sales Support Offices
    • 78. Effective Self-Leadership Stage Five: Assessment of Performance and Goal Attainment
    • 79. Increasing Customer Value through TeamworkInternal Partnerships and Teams Sales Partnerships Marketing Partnerships Administrative Support Partnerships Shipping and Transportation Partnerships Customer Service Partnerships
    • 80. Building Teamwork SkillsUnderstanding the Other Individuals Attending to the Little Things Keeping Commitments Clarifying Expectations Showing Personal Integrity Apologizing Sincerely When a Mistake Is Made
    • 81. Relationship of Optimized Solutions, Trust, and Cooperation (Figure 5.7)LowHighMutual CooperationLowHighMutual TrustCompetitive and Defensive Outcomes (Win/Lose or Lose/WinOptimized and Synergistic Solutions (Win/Win)Compromise Solutions
    • 82. Module 6 Personal Selling: Approaches and Process
    • 83. Classification of Personal Selling Approaches Stimulus-Response Selling (Figure 6.1)Salesperson Provides StimuliBuyer Responses SoughtContinue Process until Purchase Decision
    • 84. Classification of Personal Selling Approaches Mental-States SellingAttention Interest Desire ActionConviction
    • 85. Classification of Personal Selling Approaches Need-Satisfaction Selling (Figure 6.2)Uncover and Confirm Buyer NeedsPresent Offering to Satisfy Buyer NeedsContinue Selling until Purchase Decision
    • 86. Classification of Personal Selling Approaches Problem Solving Selling (Figure 6.3)Define ProblemGenerate Alternative SolutionsContinue Selling until Purchase DecisionEvaluate Alternative Solutions
    • 87. Classification of Personal Selling Approaches Consultative SellingStrategic Orchestrator Business Consultant Long-term AllyThe process of helping customers reach their strategic goals by using the products, service, and expertise of the selling organization.Three Primary Roles:
    • 88. Sales Planning(1:39)
    • 89. Sales Process Model (Figure 6.4)Salesperson AttributesSelling StrategyInitiating Customer RelationshipsDeveloping Customer RelationshipsEnhancing Customer Relationships
    • 90. Initiating Customer Relationships Prospecting Methods (Exhibit 6.3)External Sources: Referral Approach Community Contact Contact Organizations Introduction Approach Noncompeting Salespeople Cultivate Visible Accounts Internal Sources: Examine Records Inquiries to Advertising Phone/Mail Inquiries Personal Contact: Personal Observation Cold Canvassing Miscellaneous: Hold/Attend Trade Shows Bird Dogs Sales Seminar
    • 91. Compatibility Accessibility Eligibility Authority ProfitabilityInitiating Customer Relationships Screening Criteria
    • 92. Initiating Customer Relationships Prospecting IssuesWhich method works best? Cold-call reluctance Using technology to complete the basic tasks of prospecting Tele-prospecting
    • 93. Initiating Customer Relationships Pre-call PlanningPreapproach; customer related research Gathering information about the prospect that will be used to formulate the sales presentation Sales Presentation Planning; increased importance in recent years Salesperson must begin with an objective(s)
    • 94. Sales-Presentation Planning Sales Presentation Format Canned Sales PresentationPros Logical Complete Minimizes sales resistance by anticipating prospect’s objections Can be used by an inexperienced salespersonCons Unable to tailor message to the prospect Does not handle interruptions well Hard to use with broad product line May alienate buyers
    • 95. Organizes the key points into a planned sequence that allows for adaptive behavior Feedback from buyer is encouraged Con Requires a salesperson with more product knowledge and selling experienceSales-Presentation Planning Sales Presentation Format Organized Sales Presentation
    • 96. Used in competitive bidding situations and when dollar value of sale is large Pros Written word is usually accepted as being more credible Technical information, pricing data, and perhaps a timetable are available for reviewSales-Presentation Planning Sales Presentation Format Sales Proposal
    • 97. Sales Mix Model (Figure 6.5)Presentation PacePresentation ScopeDepth of InquiryUse of Visual AidsTwo-Way CommunicationProspect
    • 98. Approaching the CustomerGetting the appointment Starting the sales call Establish harmonious atmosphere Observe rules of common courtesy Ascertain customer needs Ask questions and listen Focus on benefits to the customer
    • 99. Developing Customer Relationships Sales Presentation Delivery Building Credibility Personal Behavior Sales Techniques Conservative Claims Third-party Evidence Testimonials Guarantees and Warranties Achieving Clarity Addressing Customer Concerns
    • 100. Gaining Customer CommitmentAvoid high-pressure sales techniques Seek commitment if prospect has voiced no concerns Seek commitment if prospect concerns have been adequately addressed Avoid “early and often” mentality Suggest a specific course of action
    • 101. Relationship Enhancement Activities Entering orders Expediting orders Installing the product or service Training customer personnel Resolving complaints Correcting billing errors
    • 102. Module 7 Initiating the Relationship
    • 103. The Challenges of Prospecting5% of unplanned cold calls result in a sale… Roughly 25-30% of preplanned calls produce a sale
    • 104. The Challenges of Prospecting Buyers will not take the time to see a salesperson because:They may have never heard of the salesperson’s firm. They may have no need; they just bought the product category. The buyer may have their own deadlines on other issues. Buyers are constantly getting calls from salespeople and do not have the time to see them all. Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.
    • 105. The Challenges of Prospecting Strategic Prospecting (Figure 7.1)Sales LeadQualified ProspectProspectSalespeople must develop leads into prospects -Salesperson must do homework on company… “Will it be a profitable account?” “Does the buyer have genuine interest in our offering?”
    • 106. The Challenges of Prospecting Locating ProspectsExternal Sources Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts Internal Sources Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide WebPersonal Contact Observation Cold Canvassing Trade Shows Bird Dogs (Spotters)
    • 107. The Challenges of Prospecting Qualifying Prospects Can benefit from the sales offering. Have the financial wherewithal to make the purchase. Play an important role in the purchase decision process. Are eligible to buy based on a fit within the selling strategy. Are reasonably accessible and willing to consider the sales offering. Can be added to the customer base at an acceptable level of profitabilityAt a minimum, qualified prospects are those who:
    • 108. Obtaining Precall Information on the Buyer (Exhibit 7.4)Information NeededHow to Collect InformationThe prospect’s name and title Correct spelling and pronunciationCan be gathered by asking the receptionist or secretary or gatekeeper to verify information.Is this prospect willing to take risks? Are they confident with their decision making?May have to ask the prospectIs the buyer involved in their community? Do they belong to clubs or professional organizations?Observe club or organizational honors displayed in the office.Does the prospect have hobbies or interests they are proud of?Observation of office. What is the prospect’s personality type? Easy going? All business?Observation and experience with buyer. Where did this prospect grow up? Where were they educated?Look for diplomas. Ask.
    • 109. Gathering Information on the Prospect’s Organization (Exhibit 7.5)Information NeededHow to Collect InformationWhat type of business are we dealing with?Can be gathered from a directory.To what market does the company sell? Who are its primary competitors? What does the company make and sell?Annual reports.Who does the prospect presently buy from? Do they buy from a single vendor? Multiple vendors? How long have they purchased from their suppliers? What problems does the company face? What volume does the company buy? What is the organization’s financial position?Salesperson may have to ask for this information.
    • 110. Determining Other Buyer’s Influences(2:45)
    • 111. Planning the Initial Sales Call Establishing Presentation ObjectivesGetting the order is the ultimate objective. To introduce the salesperson and his/her company. To obtain personal and business information. To provide company literature. To conduct a needs assessment. To demonstrate a new product offering. To provide postsale service.
    • 112. Planning the Initial Sales Call Approaching and Initiating Contact Introduction Approach Productivity Approach Benefit Approach Question Approach Referral Approach Compliment Approach Survey Approach
    • 113. Assessing the Situation and Discovering Needs through Questioning SkillsAssessment QuestionsDiscovery QuestionsActivation QuestionsProjection QuestionsTransition QuestionsFigure 4.1 – The Adapt Process
    • 114. Questioning and Listening… the key element of good communication
    • 115. Module 8 Developing the Relationship
    • 116. Steps in Developing the RelationshipApproachDetermine NeedsSelect PresentationPresentationHandle ObjectionsEarn CommitmentFollow-Up
    • 117. Steps in Developing the RelationshipApproach
    • 118. Steps in Developing the RelationshipApproach(1:28)
    • 119. Steps in Developing the RelationshipApproachDetermine Needs
    • 120. Selecting Appropriate Customer Offerings by Assessing NeedsNeeds result from the a discrepancy between an actual and desired state of being. Needs may be classified as: Unrecognized – customer is unaware or has dismissed as trivial Potential – customer statements of general problems, difficulties, and dissatisfactions Confirmed – customer states that they are ready to take action The emphasis is on determining customer needs and then creating or selecting customer-fitted solutions to satisfy those needs.
    • 121. Selecting Appropriate Customer Offerings by Assessing MotivesFunctional Motives Driven by price, quality, and service a salesperson can supply Psychological Motives A buyer’s habits, emotional stress, and confidence
    • 122. Selecting Appropriate Customer Offerings by Assessing Competitive SituationUnderstanding a competitor’s strengths/weaknesses allows the salesperson to put the best solution forward.
    • 123. Steps in Developing the RelationshipDetermine Needs(1:28)
    • 124. Steps in Developing the RelationshipApproachDetermine NeedsSelect Presentation
    • 125. Types of Sales PresentationsCanned Presentations Organized Presentations
    • 126. The Trust-based Selling Process: A Needs-Satisfaction Consultative Model (Figure 8.3)Information GatheringApproachPresentationHandling ResistanceEarn CommitmentFollow-up100%Relative Participation RateNeed DevelopmentNeed AwarenessNeed FulfillmentADAPTAssessmentDiscoveryActivationProjectionTransitionSelect FeatureExplain AdvantageLead to BenefitsLet Customer TalkSELL% Time “The Salesperson” Talks/Participates% Time “The Customer” Talks/Participates
    • 127. Types of Sales PresentationsCanned Presentations Organized Presentations Sales Proposals
    • 128. Steps in Developing the RelationshipApproachDetermine NeedsSelect PresentationPresentation
    • 129. Sequence of the Sales Presentation ConclusionFollowing an introduction, questions, careful listening, and confirmation statements should be used to assess the customer’s needs Benefits should be presented in order of customer’s needs, should be repeated during the presentation and at the end of the presentation Continuation of prior sales calls should start with a summary of earlier calls Pricing issues should not be focused on until the customer’s needs have been defined and addressedA few general rules:
    • 130. Using Visual Aids to Customize and Dramatize the PresentationCharts and Graphs Photographs and Advertisements Catalogs and Brochures Electronic Media Computer-based Presentation Videos Slides Overhead Transparencies Sales Portfolios
    • 131. Concluding the Customized Presentation Linking Solutions to NeedFeaturesPotential BenefitsConfirmed Benefits/UnconfirmedNatural surface cohesiveness of ultramid, a high tech plastic golf clubBetter launch angleGolf Pro doe not see this as true benefit-not comfirmed Golf Pro has easy time selling longer distance-confirmed benefitBell shaped nozzle on vacuum cleanerOptimum air flow improves cleaning ability.Hard for most consumer’s to understand how bell shape improves cleaning-not confirmedDaily delivery of Frito-Lay potato chipsRetailer can reduce inventory costs Product freshness leads to customer satisfactionNot a serious issue for this retailer-not confirmed Store manager puts huge emphasis on product freshness-confirmed benefitTechnical Support personnel for a computer systemAssistance in installation, maintenance, and expansionSupport is needed-confirmed benefit
    • 132. Steps in Developing the RelationshipApproachDetermine NeedsSelect PresentationPresentationHandle Objections
    • 133. Anticipating and Negotiating Concerns and Resistance Reasons Why Prospects Raise Objections The prospect wants to avoid the sales interview. The salesperson has failed to prospect and qualify properly. Objecting is a matter of custom. The prospect resists change. The prospect fails to recognize a need. Prospect lacks information.
    • 134. Anticipating and Negotiating Concerns and Resistance Types of ObjectivesForestalling Price is Too High Product Objection Company Objection No Need
    • 135. Anticipating and Negotiating Concerns and ResistanceListen Acknowledge Assess Respond Confirm
    • 136. Steps in Developing the RelationshipHandle Objections5:36
    • 137. Steps in Developing the RelationshipApproachDetermine NeedsSelect PresentationPresentationHandle ObjectionsEarn Commitment
    • 138. Securing Commitment and Closing Guidelines for Earning Commitment “Green Light” statements include: I like that size. That will get the job done. The price is lower than I thought it would be. I didn’t realize you delivered every day. Trial Commitments An effort to elicit how far along the prospect is in his/her decision making. “Red Light” statements include: I’m not sure that will work. The price is higher than I thought it would be. Your delivery schedule does not work for us. I don’t see the advantage of going with your proposal. Closing early and often and having a closing quota for each sales call are not liked by buyers.
    • 139. Securing Commitment and Closing Techniques to Earn Commitment Ask for the Order/Direct Commitment Legitimate Choice/Alternative Choice Summary Close/Summary Commitment T-Account or Balance Sheet Commitment Success Story Commitment
    • 140. Steps in Developing the Relationship6:15Earn Commitment
    • 141. Sales Presentation Checklist (Exhibit 8.10)Prospect Information Key Person Information Other Influences on the Purchase Decision Needs and/or Opportunity Analysis Statement of prospect’s problem and/or opportunity as related to sales offering Brief description of product or service that will meet the prospect’s problem/opportunity Prospect’s Buying MotivesCompetitive Situation Sales Presentation Objectives Sales Presentation Planning Specific Features/Benefits Information to Support Claims Reinforcing Verbal Content First Few Minutes The ADAPT Method Questions and Objections Prospect Commitment Follow-up Action
    • 142. Steps in Developing the RelationshipApproachDetermine NeedsSelect PresentationPresentationHandle ObjectionsEarn CommitmentFollow-Up
    • 143. Even the Best Planned Calls May Not Result in a Sale4:09
    • 144. Module 9 Expanding Customer Relationships
    • 145. Relationship (Exhibit 9.1)EnhancersDetractorsFocus on Long-Term Deliver more than Promised Call Regularly Add Value Keep Communications Lines Open Take Responsibility for ProblemsFocus on Short-Term Over Promise-Underdeliver Call Sporadically Show Up for Another Order Can Never Reach Salesperson Lie, Exaggerate, Blame Someone Else
    • 146. Harness Technology to Enhance Follow-up and Buyer-Seller Relationships3. Know2. Connect4. Relate1. InterestThe Four Sequential Components of Effective Follow-up
    • 147. Relationship Enhancement Taking Action to Assure Customer Satisfaction (Exhibit 9.2) Preferably before they happen Ask customer how s/he wants complaint resolvedResolve Complaints Set up a regular call schedule Let customer know you’ll be backContinue to Call on the Customers Regularly Go Over All Orders Correct problem before customer recognizes itCorrect Billing Errors Train even when contract does not call for itTrain Customer Personnel Track Orders Status Informs on Delays Help with InstallationExpedite Orders/Monitoring Installation Relevant Timely High QualityProvide Useful InformationSalesperson ResponsibilityPartnership Enhancement Activities
    • 148. A Procedure to Handle ComplaintsBuild the relationship to the point you customers are comfortable complaining Listen carefully and get the whole story Ask the customer what s/he would like you to do Gain agreement on a solution Take action; educate the customer Follow through on all promises—add value
    • 149. Providing Quality Customer Service“Service is advertised… Service is talked about… But the only time service really counts… Is when it is delivered… And We promise your experience with us will be outstanding.”A sign in a small-town business reads,
    • 150. Customer ExpectationsWarmth and Friendliness Reliability Helpfulness/Assistance Speed or Promptness Assurance Follow-through Empathy Resolution of Complaints, Mistakes, or Defects Tangibles
    • 151. Checklist for Developing a Service StrategyWhat is our business? Who are our customers? What do our customers want and what is important to them? How are our customers’ needs and perceptions changing? How are social, economic, and political factors affecting current and future customer needs and our ability to respond to them? How are competitors responding to these factors? How do the customers rate us in terms of their expectations? What are we best known for? What do we do best? What can we do better? How can we position ourselves in the market to differentiate our services?
    • 152. Customer Service DimensionsCommunication, communication, communication… Resilience…the salesperson’s ability to keep going, even when times are tough Salesperson’s motivation to service his/her customers