BUS 466: Test 2
Spotters
-AKA Bird Dogs -salespeople who will, for a fee, provide leads for a salesperson -sales reps sometimes pay the fee simply for the name of the lead, but more often pays only if the lead ends up buying the product or service -small firms attempting to secure business with large organizations are most likely to use this approach
Standard Industrial Classification (SIC)
-AKA North American Industry Classification System (NAICS) -a uniform classification for all countries in North America, when researching using secondary soureces
Approach/Opening Techniques
-Introductory -Referral -Benefit -Demonstration (product, showmanship) -Compliment -Questioning
Types of Presentations
-Standard Memorized -Outlined -Customized -No presentation style is "better" than the other; just used in different situations -each involves a different level of skill, cost, and flexibility
Referred Lead
-a lead provided by either a customer or a prospect -generally considered the most successful type of lead
How to Overcome Reluctancy to Call
-engage in sales training and role-playing activity to improve your prospecting skills -make prospecting contacts with a supporting partner or sales manager -set specific goals for all your prospecting activities -stop negatvie self-evaluation from ruling your behavior -learn and apply relaxation and stress-reducing techniques
Impression Management
-how salespeople can manage the buyer's impression of them
4 Common Business Issues ("BI")
-increase revenue, market share, and shareholder value -increase efficiency and productivity -manage costs -control quality and reliability
Extranets
-internet sites that are customized for specific target markets -usually used to build relationships with current customers, but some companies are also using these sites to generate leads -Ex: -Turner, a TimeWarner Company, owns CNN, TNT, Cartoon Network Adult Swim, and NBA on TNT -Turner set up an extranet that is accessible only to media buyers -Buyers can access programming info, cable research data, and Turner's salespeople form the site
Merchandise Markets
-places where suppliers have sales offices and buyers from resellers visit to purchase merchandise
Seeding
-sending the customer important and useful information -Ex: -a rep can constantly search newspapers, blogs, and social media postings for material that may be useful for a prospect -send to prospect "Jim, I thought you would find this article useful!"
Approach Technique: Introductory
-simply introduce yourself (handshake and intro) -most common/simple approach but may not generate interest -least effective
Assertive Characteristics
-take-charge attitude -risk taker -makes decisions quickly -lean forward -direct eye contact -expresses strong opinions
Versatility
-the effort people make to increase the productivity of a relationship by adjusting to the needs of the other party Characteristics: -broad interests -negotiates issues -unpredictable -looks at many sides of an issue
Focus of Receptivity
-the person who will listen receptively and give the seller needed valuable information -a salesperson should initially try to call on this person -person may not be the decision maker or the one who understands all of the firm's problems -may not even be from the buying center
Social Media
-the technological component of the communication, transaction, and relationship building functions of a business that leverages the network of customers and prospects to promote value co-creation
Networking
-the utilization of personal relationships by connected and cooperating individuals for the purpose of achieving goals -more effective in B2B sales as opposed to B2C
Selling Deeper
-when a customer not only provides leads but also are usually prospects for additional sales -sales to existing customers often result in more profits than do sales to new customers
Exclusive Sales Territories
-when considering "is the lead eligible to buy?" -meaning that a particular salesperson can sell only to certain prospects (such as doctors in only a three county area) and not to other prospects -most companies operate on this basis
Established Lists
-you can purchase lists of potential customers Con: -everyone else has the same lists -also the lists could be outdated
Chapter 5
Adaptive Selling For Relationship Building
Performance Feedback
-"did you achieve the goals you set for this call?"
Diagnostic Feedback
-"let's talk about why you didn't achieve your goals" -provides information about what you're doing right and wrong instead of just whether you made a sale Ex: -"why do you think I didn't make the sale?" -"you stressed the low maintenance cost, but he wasn't interested in maintenance cost" -"what should I do next time?" -"try spending more time finding his hot button, maintenance cost isn't it"
Standard Memorized Presentation
-AKA "Canned Presentation" -a completely memorized sales talk -the salesperson presents the same selling points in the same order to all customers -ensures that the salesperson will provide complete and accurate information about the firm's product and policies -the effectiveness of this presentation method is limited because it offers no opportunity for the salesperson to tailor the presentation to the needs of the specific customer -can be delivered at a low cost by unskilled salespeople with little training Ex: some companies insist that their inside telemarketing salespeople memorize the entire presentation and deliver it word for word -there is a script; no deviation from script; use when trying to make a lot of calls (telemarketer/cold call)
Cold Calling
-AKA Canvass Method (by call we usually mean a personal visit, not a telemarketing call) -a sales representative tries to generate leads from new business by calling on totally unfamiliar organizations -can waste a salesperson's time because many companies have neither a need for a product nor the ability to pay for it -this fact stresses the importance of qualifying the lead quickly in a cold call so not to waste time -today is considered rude by many purchasing agents and other professionals
Promoters
-AKA Evangelists -your most loyal customers who not only keep buying from you but also urge their friends and associates to do the same
Webcasting
-AKA Virtual Sales Calls -variation of videoconferencing in which the meeting is broadcast over the internet
Social Style Matrix
-Created by David Merrill and Roger Reid -a popular training program that companies use to help salespeople adapt their communication styles 2 Critical Dimensions: -Assertiveness -Responsiveness 4 Categories: -Drivers -Analyticals -Amiables -Expressives
Characteristics of a Good Prospect
-Does a want or need exist? -Does the lead have the ability to pay? -Does the lead have the authority to buy? -Can the lead be approached favorably? -Is the lead eligible to buy?
Sales Letters
-First, the salesperson must consider the objective of any written communication and the audience (what action does the salesperson desire from the reader? why would the reader want to undertake the action? etc.) -the next paragraph or two considers why the reader would and would not want to take the desired actions. -benefits of taking the action should be presented clearly, without jargon, and briefly -the best presented benefits are tailored to the specific individual -the final paragraph should seek commitment to the desired course of action
Categories of Social Style Matrix: Expressives
-HIGH ASSERTIVENESS; HIGH RESPONSIVENESS -warm, approachable, intuitive, and competitive -expressives view power and politics as important factors in their quest for personal rewards and recognition -while they are interested in personal relationships, their relationships are primarily with supporters and followers recruited to assist expressives in achieving their personal goals -focus on the future, directing their time and effort toward achieving their vision (big picture) -base their decisions on their personal opinions and the opinions of others -act quickly, take risks, but tend to be impatient and change their minds easily NOTES -broad thinkers (think big); visualize the big picture; big gestures; like long-term over short -like ideas and concepts; DO NOT like facts and data; make slow decisions
Categories of Social Style Matrix: Drivers
-HIGH ASSERTIVENESS; LOW RESPONSIVENESS -slogan: "let's get it done now, and get it done my way" -learn to work with others only because they must do so to get the job done, not because they enjoy people -great desire to get ahead in their companies and careers -swift, and efficient decision makers -focus on the present and appear to have little concern with the past or future -generally base decisions on facts, take risks, and want to look at several alternatives before making a decision -while analyticals also like facts and data, drivers want to know how the facts AFFECT RESULTS (the bottom line); they are not interested in simply technical information NOTES: -like facts, data, numbers; task oriented; like to accomplish tasks -make decisions quick; bottom-line oriented (why are we here? whats in it for me?)
Categories of Social Style Matrix: Amiables
-LOW ASSERTIVENESS; HIGH RESPONSIVENESS -close relationships and cooperation are important -achieve their objectives by working with people, and developing an atmosphere of mutual respect rather than using power and authority -tend to make decisions slowly, building a consensus among people involved in the decision -avoid risks and change their opinions reluctantly NOTES: -like people, relish interpersonal relationships, love people, value trust and loyalty; if you violate their trust, they wont forget -trust > price; slowest decision makers; consencus decision makers
Categories of Social Style Matrix: Analyticals
-LOW ASSERTIVENESS; LOW RESPONSIVENESS -they like facts, principles, and logic -suspicious of power and personal relationships, they strive to find a way to carry out a task without resorting to these influence methods -because they are highly motivated to make the right decision, xxxxxxx make decisions slowly, in a deliberate and disciplined manner -systematically analyze the facts, using the past as an indication of future events NOTES: -professors; like facts/data, but slower decision makers; afraid to make the wrong choice -don't want to appear dumb; like the process more than the actual destination; logical thinking (a-->b-->c)
M.A.D. Prospecting
-Motivation to buy -Authority to buy -Desire to buy your product
Secondary Call Objective
-Primary Objective = sell one unit -XXXXXXXX Objective = be introduced to one other member of the buying center; have the prospect agree to send along a packet of info to an executive
Pre-Call Objectives
-S.R.M.: Specific, Realistic, Measurable; if the objectives don't fit this criteria, they suck -Time-Based (SMART): "sell X amount of products by the end of the first quarter"; otherwise nothing will get done -Tiered (multiple) Objectives: some short-term, some long-term Ex: -"I want to sell 2,000 units by the end of the month" Specific, Realistic, Time-Table, Measurable
Sources of Information
-Veterans: been in the company a long time; they know what works; seek a mentor (shows initiative) -Trade Magazines: every industry has one; read them for trends; info about competitors -Managers: seek feedback from managers (performance and diagnostic) -Self-Assessment: tend to only assess ourselves when we do well; understand WHAT went well; do it when we struggle -Sales Portals -Secretaries and Receptionists: they know everything make things happen; get to know them -Competitors = ask whats happening in their neck of the woods -The Internet
Center-Of-Influence Method
-a form of networking in which the salesperson cultivates a relationship with well-known, influential people in the territory who are willing to supply the names of leads
Prospect
-a lead that is considered a good candidate for making a sale -many leads do not become xxxxxxx
Lead
-a potential prospect that may or may not have what it takes to be a true prospect -prospecting begins with locating a xxxx (sometimes called suspect)
Outlined Presentation
-a prearranged presentation that usually includes a standard introduction, standard answers to common objectives raised by customers, and a standard method for getting the customer to place and order -can be very effective because it is well organized -it is more information and natural than the standard memorized presentation and provides more opportunity for the customer to participate in the sales interaction -also permits some flexibility in the approach used to present the key points -60% of presentation is same, 40% is adaptive; different industries which could use product differently
Blitz
-a selective type of cold calling -a large group of salespeople attempt to call on all the prospective businesses in a given geographical territory on a specified day -Ex: -an office machine firm may target a specific four-block area in Guadalajara, Mexico; bring in all the salespeople form the surround areas; and then have them, in one day, call on every business located in that four-block area
Buying Community
-a small, informal group of people in similar positions, often from several companies, who communicate regularly, both socially and professionally -a Xerox rep found that decision makers from several companies would get together from time to time -the rep found that one particular decision maker in that group, or community, would share the results of any sales call with the other members of the community -thus a call on that account had the power of seven calls
Telemarketing
-a systematic and continuous program of communicating with customers and prospects via telephone -used to sell everything from 25-cent supplies to $10 million airplanes
Customized Presentation
-a written and/or oral presentation based on a detailed analysis of the customer's needs -this type of presentations offers an opportunity to use the communication principles discussed earlier to discover the customer's needs and problems and propose the most effective solution for satisfying those needs -allows the salesperson to demonstrate empathy -cultivating this view is an important step in developing and partnering relationship -can be costly, requiring highly skilled people to analyze the customer's needs -highlight complex product (customized) which is different for each user; take much loner to make sale
Customer Value Proposition
-a written statement (usually one or two sentences) that clearly states how purchasing your product or service can help solve the customer's perceived business issue ("BI") -focuses on what an individual manager needs to address and resolve to be able to better contribute to overall company objectives
Insight Selling
-an approach to prospecting and qualifying leads -under this approach, salespeople evaluate prospects who do not necessarily have a clear understanding of what they need but are in a state of flux and have been shown to be quite agile in making changes -(that is, they are able and willing to act quickly when a compelling case is made to them) -encourages salespeople to interact with people in the buying firm who are skeptical rather than friendly information providers and then coach these skeptical decision makers how to buy the seller's solution Why this approach? -people claim that buyers today already know a great deal about the marketplace and understand many of their options and that salespeople who follow the approach are MORE SUCCESSFUL in gaining commitment
Dimensions of Social Styles: Responsiveness
-based on how emotional people tend to get in social situations -readily express joy, anger, and sorrow -appear to be more concerned with other and are informal and casual in social situations -unresponsive people devote more effort toward controlling their emotions, and are described as cautious, intellectual, serious, formal, and businesslike
Screens/Barriers
-busy executives often have one or more subordinates who plan and schedule interviews for them -these xxxxx often make seeing the boss difficult -these xxxxx can also take on the role of gatekeepers for the buying center Can go: -Through = convince gatekeeper it's in the boss' best interest -Over = name drop higher up people to scare gatekeeper -Under = trying to make contact with the prospect before or after the gatekeeper gets to work
Analysis Paralysis
-can occur if you prefer to spend practically all your time analyzing situations and finding information instead of making sales calls
Identifying Customer's Social Styles
-concentrate on the customer's behavior and disregard how you feel about the behavior -avoid assuming that specific jobs or functions are associated with a social style ("he must be an analytical because he is an engineer" -test your assessments -create, join, and participate in social media groups to learn more about the social style of the buyer
Direct Mail/Email
-easy to dismiss; but you reach a lot of people in a cheap manner
Style Flexing
-figuring out which of the four types of the social matrix your customer is. -then adjusting your behavior to mirror or match that of your customer -this adaptation is called xxxx xxxxxx
Focus of Power
-finally, the focus of dissatisfaction leads to the xxxxx xx xxxxx -the person who can approve, prevent, and/or influence action -getting to this person too quickly can lead to disaster because the seller has not yet built a relationship and does not really know the buyer's needs -"there's a superstition in selling that the sooner you can get to the decision maker the better. Effective selling, so it's said, is going straight to the focus of power. That's a questionable belief" - Neil Rackham
Selling Center
-for important sales, you may well be working with a sales team that interacts with a prospect -this team is sometimes called a xxxxx xxxxx, and consists of all the people in the selling organizaiton who participate in a selling opportunity
Information Salespeople Learn about the Customer: Relationships
-formal reporting relationships -important reference groups and group norms -bonds that the prospect has already formed with other salespeople
Referral Events
-gatherings designed to allow current customers to introduce prospects to the salesperson -Ex: -Merrill Lynch financial advisor might invite a group of current clients to a ski resort for a weekend -the skiing weekend is free for clients who bring one or more prospects
Tips for Social Media
-go to the prospects website -go to LinkedIn and search for the company or person -follow the prospect on Twitter -search or special interest groups they belong to -start a group page for your product on Facebook -create a blog -follow competitiors
Presenting to Groups
-increased presentation structure: be able to adapt; be prepared for any questions -increased audience diversity: business/function (HR, Sales, etc.) -increased preparation time
House Accounts
-large customers or potential customers that are handled exclusively by corporate headquarters -salespeople should avoid targeting leads already covered by their corporate headquarters -Ex: if Marriott Hotels considered Ingersoll Rand a house account, a Marriott Hotel salesperson (who sets up events and conventions at the hotel) located in NYC should not try to solicit business from one of Ingersoll RAnd's divisions located in NYC -instead all Ingersoll Rand business would be handled by Marriott executive at Marriott corporate headquarters
Videoconferencing
-meetings in which people are not physically present in one location but are connected via voice and video -growing in usage
Endless-Chain Method
-method in which sales representatives attempt to get at least one additional lead from each person they interview -works best when the source is a satisfied customer and partner, however, it may also be used even when a prospect does not buy
Sales Funnel
-moving from 1000 leads ---> -200 prospects ---> -15 customers
Information Salespeople Learn about the Customer: Personal
-name (including pronunciation) -family status -education -aspirations -interests (hobbies) and disinterests -social style (driver, amiable, etc.)
B2B Sales Calls
-no surprises (make an appointment) -don't cold call for B2B -be prepared to face opposition (be persistent) -secretaries rule the world
Sales Portals
-online databases that include many sources of information in one place -information can include items like account data, competitors intelligence, and news about the company, the industry, and the economy -used by firms to keep the field sales force well informed -Ex: -Delta Airlines salespeople can log into their company's portal and quickly and easily access key insights about their business cusotmers
Lead Qualification System
-process developed for qualifying leads -must ensure that their leads meet the five basic criteria of a prospect -many systems assign points to a prospect, rather than simply designating them as hot or cold, offering the salesperson more insight into the lead's value
Information Salespeople Learn about the Customer: Evaluation of Products/Services
-product attributes that are important -product evaluation process
Customer Profiling
-profile the person before you try to sell to them -and profile the company they work for (use CRM)
Feedback
-salespeople create knowledge by getting xxxxxxx from sales managers 2 Forms: -Performance Feedback -Diagnostic Feedback -other sources of knowledge include the internet, company sales manuals and newsletters, experts in the salesperson's firm, etc.
Selling to Amiables
-salespeople may have difficulty detecting a customers true feelings -because xxxxxx avoid conflict, they often say things to please others despite their personal opinions -therefore, salespeople need to build personal relationships with xxxxxx -xxxxx are particularly interested in receiving guarantees about a product's performance -they do not like salespeople who agree to undertake activities and then do not follow through on commitments -salespeople should stress the product's benefits in terms of its effects on the satisfaction of employees NOTES: -appeal to all members of the buyer center; discuss how others are on board; -put the product on the back burner, and talk about life; don't want to tell you no
Lead Management System
-salespeople must not only qualify leads but also carefully analyze the relative value of each lead; this process is called xxxx xxxxx xxxxxx -includes a valuation of the prospects' expected customer lifetime value or return on investment, as well as an appraisal of what types of value the selling firm can add to the prospect
Selling to Expressives
-salespeople need to demonstrate how their products will help the customer achieve personal status and recognition -xxxxxxxxx prefer sales presentation with product demonstration and creative graphics rather than factual statements and technical details -also, testimonials from well-known firms and people appeal to expressives' need for status and recognition -they respond to sales presentations that put them in the role of innovator, the first person to use a new product NOTES -show them something unique no one has ever seen; tell stories, help them paint a picture -tell them the history of what got you do this point; talk about long term results
Selling to Drivers
-salespeople need to use a direct, businesslike, organized presentation with quick action and follow-up -proposals should emphasize the effects of a purchase decision on profits NOTES: -get to the point; start with benefits; keep it short; show the facts; organized; arrive early; dress professionally
Selling to Analyticals
-salespeople need to use solid, tangible evidence when making presentations to xxxxxx -xxxxxx are also influence by sales presentations that recognize their technical expertise and emphasize long-term benefits -xxxxxx tend to disregard personal opinions -both xxxxxxx and amiables tend to develop loyalty toward suppliers -amiables find loyalty is based on personal relationships; xxxxx loyalty is based on their feeling that well-reasoned decisions do not ned to be reexamined NOTES: -show them how it will work; show the process of how this has come to be -prepare to answer questions; leave the numbers/info with them when you leave
Adaptive Selling
-salespeople practice this when they react to different sales situations by changing their sales behavior -salespeople should alter the content and form of their sales presentation so customers will be able to absorb the information easily and find it relevant to their situation -NONadaptive selling = standard memorized presentation -emphasizes the importance of satisfying customer needs -increases buyer trust and commitment and results in higher sales performance -key ingredient is knowledge: salespeople need to know about the products they are selling, the company they work for, and the customers they will be selling to -key to successful selling; requires broad knowledge; requires flexibility
System Integrators
-service vendors which have the authority to buy products and services on behalf of the delegating firm -because of downsizing, some firms are delegating their purchasing takes to outside vendors -usually assume complete responsibility for a project from its beginning to follow-up servicing -Ex: -Lockheed Martin acting as a systems integrator for the complete mail-processing system of a new postal sorting facility in Germany -in this scenario every potential vendor would actually be selling to Lockheed martin, no the German government
Responsiveness Characteristics
-show emotions -warm, approachable -people oriented -use opinions -moves freely -informal dress -gesture frequently -animated facial expressions
Trade Show Demos
-similar to career fair; companies will buy booths, and all sorts of customers come in to see your product Cons: -hard to differentiate yourself Pros: -people who come are there to buy -main thing is you need to be careful of the competitors; if they are making a deal, you don't want to get shown up BOOK: -short (usually less than a week), temporary exhibitions of products by manufacturers and resellers
Negative Referral
-someone who tells others how poorly you or your product performed
Databases and Data Mining
-sophisticated firms are developing interactive xxxxxxxx that contain info about leads, prospects, and customers 0companies are using xxxx xxxxxx, which consists of artificial intelligence and statistical tools, to discover insights hidden in the volumes of data in their databases
Outbound Telemarketing
-telephones are used to generate and then qualify leads -these calls may be initiated directly by the salesperson, by inside sales reps, or by third-party vendors
Approach Technique: Referral
-tell about someone who referred you to the buyer -always get permission; don't stretch the truth -Ex: -Mr. Childers, I appreciate your seeing me today. I'm here at the suggestion of Ms. Fleming of Acumen Ornamental Iron Works. She thought you would be interested in our line of wrought iron products and railings
Focus of Dissatisfation
-the "focus of receptivity" will then lead the salesperson to the xxxxx xx xxxxxxx -the person who is most likely to perceive problems and dissatisfactions
Primary Call Objective
-the actual goal a salesperson hopes to achieve -should be set before each sales call -Ex: -Nestle rep might be trying to secure an order from a grocer for 10 cases of their product for an upcoming coupon promotion
Dimensions of Social Styles: Assertiveness
-the degree to which people have opinions about issues and publicly make their positions clear to others -these people speak out, make strong statements, and have a take-charge attitude -unassertive people rarely dominate a social situation, and they often keep their opinions to themselves High Assertiveness: -Drivers -Expressives
Minimum Call Objective
-the minimum the salesperson hopes to achieve with each sales call -Ex: -Nestle rep tries to sell at least 5 cases of product
Customer Referral Value
-the monetary value of the referrals as well as the costs to get and maintain the referrals -some trainers argue that successful salespeole should be getting about 75% of their new business through referrals from customers
Optimistic Call Objective
-the most optimistic outcome the salesperson thinks can occur -used if a sales call goes better than the salesperson originally thought it would -Ex: -Nestle rep tries to sell 20 cases
Qualifying the Lead
-the process of determining whether a lead is in fact a prospect -used to avoid the mistake of mistaking every lead for a prospect without seeing whether the people really provide an opportunity to make a sale
Prospecting
-the process of locating potential customers for a product or service -most important activity that many salespeople do -important because salespeople must find new customers to replace those that switch to competitors, go bankrupt, move out of the territory, merge with non customers, or decide to do without a product or service -office products salesperson, stockbroker, financial advisor, or real estate sales representatives with no effective prospecting plan usually don't last long
Prequalification
-to help salespeople use their time wisely and to increase the number of leads that sellers actually follow up with, some firms engage in xxxxxxxxxx of leads before turning them over to the field sales force -process can be as simple as purchasing a prequalified list -or a firm will use the resources of telemarketers to prequalify leads
Information Salespeople Learn about the Customer: Attitudes
-toward salespeople -toward your company -toward your product
Four A's
-used in selling process -Acknowledge (the buyer; greet; shake hands, etc.) -Acquire (info via needs analysis outlining the agreement between buyer and seller about the current situation and the desired solution) -Advise (seller narrows the possible choices, sells benefits of those options, etc.) -Assure (the buyer after the sale by enhancing satisfaction with the buying decision and giving proper follow-up and referrals)
Inbound Telemarketing
-uses a telephone number (usually a toll-free number) that leads and customers can call for additional information -the call may be answered by several types of people: the salesperson, an inside salesperson, or a customer service representative -progressive firms use telemarketers to qualify leads before sending a salesperson on a call
Why Plan the Sales Call?
-without planning the sales call, a salesperson may cover material in which the buyer has no interest -customer may feel you aren't prepared and not buy -the more you practice, the easier you can adapt to any situation or question asked by the customer -may result in time wasted and an annoyed prospect -planning a call can win the buyer's respect and confidence
Chapter 8
Making the Sales Call
Chapter 7
Planning The Sales Call
Chapter 6
Prospecting
