MKTG 354 week 3 and 4 lectures
become an industry expert
- about understanding the trends in whatever industry you work in - read journals to learn about innovation on the general idea of the product you sell - understanding the strengths and weaknesses of your competitors can help you be more prepared - dont mention you competitors by name, if do make sure have ur facts straight - be prepared to show how you add value - understanding industry norms, best practices, and trends can help you add value beyond the products youre selling
six steps of selling to a client
- approach: center attention around business objective - needs discovery: about what they need and providing value - presentation of solution -negotiation: price talk -close - service after sell: CRM : gained or lost- how well product meets their needs
dealing with price concerns
- clarify concerns with questions - add value with a cluster of satisfaction: this is what you get for the extra money you are spending ex) warranty - dont make price the focal part of your presentation - dont apologize for the price - point out the relationship between price and quality - explain the difference between price (what you pay now) and cost (total cost of ownership)
territory management
- classify all of your prospective and current customers ^ prospecting and customer relationship - develop a routing and scheduling plan - develop a sales call plan ^ scheduling - follow the Pareto Principle (80/20) spend 80% tie with the most promising customer and 20% with less promising customers
Social Contact
- cold calling: a "hook" getting someone interested and how you can help/differentiate yourself- seem interesting to talk to - if meeting in person: do a background check on the clients interests or look for ways to make a connection - respond to the customer convo - keep the convo focused on the customer and ask relevant questions - ppl like others who are like them or show interest in them -Mimicry: used to influence if can convince u are like them - be observant to surrounding area ex) their office
become a company expert
- dont underestimate the power of a brand to help sell products - the more you understand and buy in to your companys culture the more energy and passion you convey to customers - drink the kool aid: company getting employees excited ab a product, clapping, and enthusiasm for company= value in team building
product positioning
- every product has points of parity and points of differentiation with competing products or substitute products - when talking to client can use ^ in diff ways.
characteristics of good stories
- follow a pattern - stories have a protagonist and an antagonist - protagonists encounter and overcome problems and tensions - exposition, complication, climax, reversal, and denouement
before you close or negotiate
- gather info and do your homework ^ needs discovery and SPIN type questions, understand competitors -determine your goals and financial objectives, including your "reserve price" the lowest price you are willing to go - understand the market value of what you are offering ^ competitors selling same thing you are for way cheaper ^ ex pawn stars: have antiques, retail value is $1,000 and try to sell to a retailer will sell it to you for around $500 - prepare a negotiation worksheet
approach methods
- how to get down to business -Agenda: "Thank you for meeting with me. id like to cover three things in the next 20 mins" expect whats coming -Product: "we just received a new shipment of wagyu beef from Japanese suppliers" put product out there if think would be interested -Customer benefit: "we sell more homes than anyone in oxford. i think we could sell your home in two weeks" demonstrate what you can do - Referral: "Dr. Shaner suggested i come talk to you ab a sales role youre looking to fill" ppl in common - Question and survey: tease something interesting and ask if interested - Premium: "id like to give you one of our social media white papers" influence- give something for free
advantages and benefits sell, features dont
- if you know all the facts ab ur product but cant transfer into advantages gonna have a hard time. Features based sales pitch: - 156 pages of pure content - images and illustrations to illustrate the concepts - many diets you can choose from Bridge statements: "so that", "which means" Advantages: -start losing weights in the next 30 min - look and feel great ++ look at product selling slide 8
why not to use price concerns as a benefit
- if your product is cheaper than competitors, want to use but in most cases dont use as soul benefit. bc if do you are price conditioning your customer, if cheaper product comes along they will leave
stress management
- it can be good or bad - stress can be motivational - dont let it get out control: can cause burnout, depression -develop a stress free home office:
time and records management
- set goals for yourself ^ cant manage your time unless you have goals you are trying to accomplish -make and follow to do lists - keep a planning calendar
Product Strategy
- spill over into pt 2 A plan that includes becoming a product expert, selling specific benefits, and configuring value-added solutions
presentation goals
- to inform: emphasize factual info - persuade: influence beliefs, attitudes, or behavior and encourage action - remind: promotes ongoing awareness and product line familiarity
product position w FAB strategy
-Features: facts, features, and technical specs of the product ex) selling computer: processing speed, size screen, size hard drive, # of USB ports - Advantages: what facts and figures mean. Makes ur product superior to competitors. ex) this dodge pickup has a heavy engine? neither seller or customer know why that is an advantage - benefits: why the customer should care. High level value proposition. ex) Features: bc it has... horsepower advantages: you will be able to ... go 0-60mph benefits: which means.. an exhilarating car experience, youll be the envy of your friends - before this do SPIN - companies often mistakenly focus of FABS that customers dont care ab- focus on needs
common closing methods
-Trail: test the waters- "would you prefer delivery in june or july" -Direct Appeal: straightforward - "how close are we to a deal?" -Assumptive: assume a deal - "since youre happy with these specs, lets schedule delivery" -Summary of benefits: closing argument - :our product meets your needs and saves you money" -Special Concession: sweeten the deal- "were prepared to offer you 10% off your discussed price" -Multiple Optiosns: menu of options - "weve offer 3 diff packages at diff price points" -Balance sheet: pros and cons - " resources for buying now vs reasons for not buying now" -Management: bring in the big guns - " our company CEO is with us today to ask for your business" - impending event: act now or else - "if you order today, you can buy before our 2020 price increase goes into effect" - Combination: use more than one of the above closing approaches
Strategic questioning and active listening
-asking good questions allows you to get the prospect talking so that you can engage in active listening - information gathering and SPIN questions - confirmation questions: make sure you know what they are saying
Product selling strat pt 2
-features dont sell product, advantages do.
six stories you need to know how to tell:
1) "Who I am" stories helps you control the narrative of what ppl think ab you, helps establish trustworthiness 2) "Why am I here" stories assure ppl youre not trying to take advantage of them, selfish goals are ok but arent exploitative. 3) "The Vision" stories depends on doing a good job at the first two stories, the WIIFM story, communicates your core value proposition 4) teaching stories helps ppl understand the why behind learning new skills 5) values in action stories helps install or communicate values, which are hard to teach and hard to demonstrate verbally, creates buy in for values 6) i know what youre thinking stories can help customer objections before the customer internalizes them too deeply, help neutralize ppl who are trying to discredit you
questions:
1) What are the three types of expertise salespeople should work to develop? 2) What are positioning maps (also called perceptual maps), and how are they useful to salespeople? 3) How are product selling strategies different for new products vs. mature products? 4) What are points of parity and points of differentiation, and how can salespeople use them to position their products to customers?
Three questions to ask about your brand?
1)Have we established a frame? -Signals to customers what goals they should expect to achieve 2)Are we leveraging our points of parity? -Points of parity can reduce perceived product risk for new products 3)Are the points of difference compelling? -The unique aspects of your products need to matter to customers
types of customer concerns
1)Need for the product: customer doesnt think they need your products 2) concerns ab product or service quality: your product isnt well established. the current product they have is satisfactory 3) concerns related to suppliers/source: customer already has trusted suppliers 4) concern related to time: customer wants time to think it over or uses stalling tactics 5) price concerns: customer thinks your product is too expensive
Closing strategies and negotiations
7 reasons salespeople dont close the deal: - not trusted or respected -cant converse with senior executives: insecure -cant explain how their solution helps the buyers business think FAB - they use hard closes instead of soft ones: force them to make a decision, soft is trying to lead them down the decision path but give them an out-let them feel in control
become a product expert
Authority: (knowledge + trustworthiness) is one of the 6 principles of influence, and developing product expertise helps customers perceive you as an expert. - product development history - performance data and specifications - maintenance and service contracts - pricing and delivery
Non-verbal communication
Communicating without the use of words. - ppl make quick judgements ab each other when they first meet. ex) appearance - convey more info than verbal messages ex) good grammer -be sincere and genuine- be adaptive -try mimicry
Positioning/Perceptual Map slide 4 pt 2
Graphic illustration that shows differences in consumers' perceptions of competing products
-highlight points of differentiation is a great way to stay competitive in a crowded market - unique features and benefits: what you can get from my product that you cannot get anywhere else - compatibility with existing products and services - price differentiation - highlighting points of parity is a great way to reduce the perceived risk of a new product.
Product Positioning: how to control your new product position in customers mind
SPIN selling question strat
Situation Problem Inplication and Need payoff - is the practice of asking open ended questions designed to discover problems, pain points, and unmet needs - ask about the situation: dont mention product until the end of SPIN - ask things related to your product - Problem: clarify their problems - Implication: ask to ascertain the implications of the problem - how does if affect ur normal work flow - Need payoff: ask questions to get the buyer to tell if the specific benefits your product offers is valuable to them
Example of value added product selling
The Department of Arkansas Heritage: budget is 400,000-500,000. Had these core product offerings 1) Advertising 2) public relations 3) digital 4) community engagements Additional marketing services: 1) production 2) marketing planning 3) media buying - we would determine which configuration would best fit their needs and budget. - understand their goals so can meet
questions:
What are the three possible goals salespeople should have in a sales presentation? What is the relationship between logical and emotional decision-making? What are the characteristics of good stories? How does story-telling influence your brain when you are an audience member? What are the six types of stories you should be able to tell? What are the effects of the "angel's cocktail" and the "devil's cocktail?" How can you induce focus and attention when storytelling?
Value added product selling
What is a product? - Generic product: a car- gets you from point a too b. - product the customer expects: certain things you expect but now the wow factor: like seat belt -value added product: if understand needs can come up w a unique product configuration - potential product: buyer and seller create a product together. I have these certain needs
Feature: bc dispenses 100% recycled napkins advantage: reduce usage and waste high level benefit: minimizing ur environmental impact
What is the F, A, B here? Tork Express 100% recycled napkins, reduces uses and ways environmental impact
indirect denial
acknowledge the truth in what the customer says, then offer reasons why they would benefit anyway. "wow this is expensive not sure if i can afford" "your right we are but if you look at the reliability will cost u less.
postpone
appropriate when you dont know the answer to something.
Questions
ask need satisfaction questions: "what would a 10% employee turnover reduction save you?"
tactics for dealing with concerns
direct denial, indirect denial, questions, superior benefit, demonstration, trail offer, third party, postpone
Direct denial
directly refuting customer, proceed w extreme caution. "well i dont think your computer is as fast as ur competitors" false info=reply with facts about how it is faster
superior benefit
discuss a benefit that outweighs customers concern ex) money back guarantee
product selling strategy pt 3 storytelling in sales
emotional vs logical decision making: - ppl make decisions based on what they feel and then test or rationalize their choice with logic ^ storytelling: make ppl feel things. ex) thought ab wanting a donut then saw a sign saying do it for the pandas
Product selling strategies pt 1
how to find potential customers, need discovery, SPIN. Now have a customer and know their needs
storytelling
in business typically involves eliciting an emotional response and offering a logical framework to back it up - can learn with practice - start thinking ab now for interviews slide 3
trial offer
let the customer use the product for a period of time without a purchase commitment
active listening
means listening to understand instead of pretending to listen while you decide what to say next
demonstration
not only hear about a product but se, touch, and experience. involve them
selling new products
product selling strategy: - develop new levels of expectations - change habits: in mind, teaching role rather than selling - establish new standards - build desire for product - point out how your product is similar to existing products
selling mature products
product selling strategy: - emphasize brand superiority - emphasize company superiority - point out unique feature - provide outstanding customer service - focus on sustaining market share
client contact goals
stage 1: cold calling or email: make contact and collect info - capture interests and info ab prospective customers business step 2: Pitch specific solutions and close - demonstrate the product solution - justify how you create value with a specific configuration - compare/ contrast diff solutions
Solution Selling
the process by which salespeople uncover/clarify a customer's problem, works with the customer to develop a solution, and develops a plan for implementing the solution - SPIN: working to figure out what a specific need is, come up w a solution to fix their needs
Product Configuration
the process of bringing together different aspects of a company's product mix to develop a custom-fitted solution - go buy a car at dealership: not just buying car, finance, maintenance- tailored to you
third party testimony
use to make your case "they are happy with it i recommend you to call them"
