Professional Selling Final Exam

What is the 80/20 rule regarding listening?

• Salesperson should speak 20% and listen 80%

How is selling to an existing customer different from selling to a new customer?

• Selling to prospects requires different skills than does selling to existing customers. To Convince prospects to purchase a product they have never used before, salespeople need to be especially self-confident and must be able to deal with the inevitable rejections that occur when making initial contact. Salespeople responsible for existing customers place more emphasis on building relationships and servicing customers.

What are the five questions that must be answered in the affirmative to make a lead a prospect?

1. Does a want of need exist? 2. Does the lead have the ability to pay? 3. Does the lead have the authority to buy? 4. Can the lead be approached favorably? 5. Is the lead eligible to buy?

What are three components of an action plan?

1. Review what you will do next 2. What the customer will do next 3. When you will meet again

Define the following salesperson styles: aggressive, submissive, and assertive.

Aggressive • Control the sales interaction but fail to gain commitment Submissive • Excel as socializes but rarely try to obtain commitment Assertive • Self-confident and positive o Assertive comes with experience

What are the five phases of relationship development? Define each.

Awareness • Salespeople locate and qualify prospects • Buyers identify various sources of supply • Supplier relationship management: Use of technology and statistics to identify important suppliers and opportunities Exploration • Search and trial phase for bother buyer and seller o Exploring potential benefits and costs for partnership • Satisfaction in this phase allows relationship to move forward • Dependability and competence are tested Expansion • Involves efforts by both parties to investigate the benefits of a long term relationship • Both parties is to develop the appropriate type of relationship • Bother parties probe regarding interest in a partnership Commitment • Creating partnerships together and signing on the dotted line Dissolution • Process of terminating the relationship • Can occur because of o Poor performance o Clash in culture o Change in needs o Other factors Loss of investments impacts both organizations

List, define, and provide an example of each of the four effective methods for closing we discussed in class.

Direct Request Method • Asking the buyer for commitment • Ex: Are you committed to purchase this today? Benefit Summary Method • Reminding the buyer of the agreed on benefits of the proposal • Ex: Balance Sheet Method • Helping prospects who cannot make a decision, even when the reason for their behavior is not apparent • Ex: Probing Method • Using a series of probing questions to discover the reason for the hesitation • Ex:

What are the four categories of social styles we discussed in class? What are key characteristics of each? How would you sell to each social style?

Drivers • High on assertiveness and low on responsiveness. • Have a great desire to get ahead in their companies and careers • Swift and efficient decision makers • Base their decisions on facts • Take risks • Look at several alternatives before making a decision • CEO personality • To influence a driver, salespeople need to use a direct, businesslike, organizaed presentation with quick action and follow-up. Proposals should emphasize the effects of a purchase decision on profits. Expressiveness • High on assertiveness and high on responsiveness • Focus on the future • Act quickly • Take risks • Base their decision on their personal opinions and the opinions of others • Impatient and change their minds easily • When selling to expressives, salespeople need to demonstrate how their products will help the customer achieve personal status and recognition. Expressives prefer sales presentations with product demonstrations 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. • Put them in the role of innovator; the first person to use a new product Amiable • Low on assertiveness and high on responsiveness • Give importance to close relationships and cooperation • Make decisions slowly • Build a consensus among people involved in the decision • Avoid Risks • Change their opinions reluctantly • Associated with new sales professionals • Salespeople need to build personal relationships with amiables. Amiables 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 selling to amiables should stress the product's benefits in terms of its effects on the satisfaction of employees. Analytical • Suspicious of power and personal relationships • Make decisions slowly in a deliberate and disciplined manner • Like facts, principles, and logic • Strongly motivated to make the right decision • Use solid, tangible evidence Use sales presentations that recognize their technical expertise and emphasize long-term benefits

What are examples of hard and soft savings?

Hard • Cash discounts • Cycle time reduction • Quality and innovation • Supply chain management • Cycle time reduction Soft • Global initiatives • Training • Safety and environmental procedures Bar coding

List and provide an example for three of the traditional ("sales-y") closing methods we discussed in class.

Minor point close • Close on a trivial point rather than the whole thing • Ex: What color car are you thinking about, red or blue? Continuous yes close • Keep asking trial close questions (which will be responded yes) • Ex: Assumptive close • Seller begins the paperwork before the sale is closed, or fills it out while buyers answer questions • Ex: Standing room only close • Seller focuses on the negative side of waiting, saying that the product the buyer wants will be sold to someone else • Ex: QVC: We only have 10 left, and once they are gone, they are gone for good. Benefit in reverse close • Seller attempts to close using another method, then add new enticements • Ex: Lower price, throw in stuff for free Emotional close • Get personal, too personal • Ex: I'll lose my job, my kids wont eat

What are three common reasons for cold call reluctance? How can you overcome each?

Reluctance • Worrying about worst case scenarios • Spending too much time preparing • Feeling fearful Overcome • Identify and evaluate excuses not to call • Engage in sales training and role-playing activities • Set specific goals for prospecting activities

Draw the pricing positions of buyers and sellers, including opening price, target price, and maximum price.

look at figure

How has the buyer-supplier interface changed over time?

look at figure

What does ZOPA stand for? Draw a figure that explains a negotiation with both a ZOPA and negative ZOPA.

look at figure

Define relational and strategic partnerships.

• Relational: • Strategic:

What is the definition of emotional intelligence? Why is high emotional intelligence an important quality for a salesperson to have?

• Ability to effectively understand and regulate one's own emotions and to read and respond to the emotions of others.

Define analysis paralysis. How can it affect sales preparation?

• Analysis paralysis: Occurs if all time is spent: o Analyzing situations o Finding information

What is the most important question to ask just prior to proposing a solution?

• Anything else?

What is complacency, and what are two reasons why a relationship might move to dissolution?

• Assuming that the business is yours and will always be yours • Limited personal relationships, failure to monitor competitors actions or the industry, falling into complacency

What is an electronic data interchange, and how is it useful?

• Automatic placement of orders by having one's computers talk to customers computers • Monitor order processing

Define negotiations. What is an example of a minor issue and a major issue that might come up in a negotiation?

• Bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements • Minor: Who would attend future meetings Major: Cost per unit or exclusive purchase agreements

What are three things you can do when dealing with a difficult customer?

• Be calm, be easy to get along with • Be open, direct and honest Ask questions. Listen. Read their body language

Define behavioral loyalty and attitudinal loyalty.

• Behavioral: Purchase of the same product from the same vendor over time • Attitudinal: Emotional attachment to a brand, company or salesperson.

List and define the five conflict-handling behavior modes we discussed in class.

• Competing o Assertiveness and uncooperative o Pursuing own goals and objectives at the expense of the other party • Accommodating o Unassertive and highly cooperative o Focus on the needs and desires of the other party • Avoiding o Refers to individuals who do not attempt to fulfill their own needs of the needs of others o Do not strive for a win-win agreement or any agreement • Compromising o Applies to people in the middle in terms of cooperativeness and assertiveness o Attempts to arrive at a win-win solution • Collaborating o Individuals who are both assertive and cooperative o Seek to maximize the satisfaction of both parties o Seek to reach a truly win-win solution o Have the motivation, skill and determination to: ♣ Really dig into an issue or a problem ♣ Explore all possible solutions

What do you study prior to determining your price?

• Competitors offering • Value delivered by the product or service • Cost of providing the product or service

Define customer orientation.

• Degree to which salesperson puts customer needs first o Stressing benefits and solution to problems over features

Define and provide an example of the following responses to objections: direct denial, indirect denial, compensation method, referral method, revisit method, acknowledge method, and postpone method.

• Direct denial: Salesperson makes a relatively strong statement to indicate the error the prospect has made. o Ex: That simply is not true • Indirect denial: Salesperson denies the objection, but attempts to soften the response o Ex: I can certainly see why you would be concerned about quality • Compensation: Acknowledging objections' validity and then showing any compensating advantages o Ex: Your product doesn't do everything company X's does (you are right, that's why it is 25% cheaper) • Referral: Relating how others found initial opinions to be unfounded after they tried the product o Ex: "I can see how you feel...others felt the same way...yet they found..." • Revisit: Salesperson turns the objection into a reason for buying o Ex: The fact that the quality is lower than in other products is probably the very reason you should buy it. • Acknowledge: Salesperson lets the buyer talk, acknowledge it and moves on to another topic after a pause. o Ex: I understand your concern, you know, one of the things I always look for is how a product's quality stacks up against its cost. • Postpone: Buyer raises an objection which salesperson would prefer to answer later Ex: "Can we take this off-line? -not just in sales

Define boundary-spanning employees. What are three things that managers may do to support these employees?

• Employees who cross the organizational boundary and interact with customers or vendors o Should be given necessary support ♣ Structure and culture ♣ Training Rewards

How would you structure a presentation for each of the four social styles? What would you include? What would you not include?

• Expressive: strong, intense colors and lots of photos, cartoons, fancy fonts and positive images • Analytics: Clean and simple, a list of references, and lots of detail • Amiable: With people and a relatively slow-moving presentation • Driver: Crisp, professional visuals with bold lettering to highlight important points

Define and provide an example of using the endless chain method to find leads.

• Sales representatives attempt to get at least one additional lead from each person they interview. • Ex: Girl scout cookies

Define features and benefits as they relate to a product. What is feature dumping? What is a feature without a benefit?

• Features: the bells and whistles • Benefits: solve the problems • Feature dumping: Discussing features that is of no use to the customer • Feature without benefit: who cares? • DON'T EVER DO A FEATURE WITHOUT A BENEFIT o Example: Wrench ♣ Feature: Angled and offset jaws - Benefit: Allows for easy use of cutting of clamshells while keeping hands protected from sharp edge plastic. o Example: Student o Feature: Vice president of organization- Benefit: Took on responsibility, time management

Define focus of receptivity, focus of dissatisfaction, and focus of power. Who is easiest to start with? Hardest? Most important?

• Focus of receptivity: The person who will listen receptively and give the seller needed valuable information o The person who is going to help/listen (happy person) • Focus of dissatisfaction: The person who is most likely to perceive problems and dissatisfactions o Find and perceive the problems- the receptivity might tell you these things. • Focus of power: The person who is most likely to approve, prevent, and/or influence action o Most likely to improve o Either receptivity or dissatisfaction can be of power

What is the number one thing we discussed when handling irate customers?

• Follow the golden rule- treat your customer the way you would like to be treated, no matter how difficult the client becomes

What is forestalling and how is it beneficial? Provide an example of forestalling in a sales presentation.

• Forestall: provide information ahead of time to prevent objections-perhaps even mention during presentation. Ex: I don't have a 3.0 G.P.A, but I was able to work 40 hours a week and was the president of two clubs

What are three ways that salespeople can add value in a selling situation?

• Foster trust and commitment • Manage situations • Provide closure

What is the 3x3 strategy we discussed in class?

• Have three personal relationships at three levels of the organization (9 total relationships)

What are four key components to planning a presentation?

• How many people attend • Which stage of the buying process they are in • What information they need • What type of situation is it

Using a cost/benefit framework, at which point will a customer be inclined to purchase from you?

• If cost outweigh benefits, the decision will be not to buy. If benefits outweigh costs, the decision will be to buy

Define and provide an example of leads and prospects.

• Lead: Potential prospect that may or may not have what it takes to be a true prospect. • Prospect: Locating potential customers for a product or service. Good candidate for making a sale.

Define and provide an example of BATNA. What does BATNA stand for?

• Limit • BATNA: Best alternative to negotiated agreement • BATNA: is your reservation point to compare everything else to, a benchmark look at figure

When dealing with price as an objection, what should your first response not be? What is the two-step approach to establishing value?

• Look at the objection from the customers viewpoint • Sell the value

We discussed common objections related to six topics. List them and provide an example for each.

• Needs: o Ex: I do not need the product or service • Products: o Ex: I don't like the product or service features • Price: o Ex: I have no money o Ex: The value does not exceed the cost • Source: o Ex: I don't like your company • Time: o Ex: I'm just not interested today • Other: o We have no room for your line

Define and provide an example of an objection.

• Objection: A concern of a question raised by the buyer; doesn't have to be in a question format o Ex: I don't have the time to talk about this right now. When would be a good time to talk? Can we set up a conversation to talk about this?

Define preferred supplier

• One who is assured of a large percentage of the buyer's business o Types of relationships ♣ Transactional ♣ Coordinative ♣ Selective partnership

Define opening price, target price, and maximum price.

• Opening: initial proposal, which should o Reflect higher expectations than the target position to allow concessions o Be supported with solid information • Target: What a company hopes to achieve at the negotiation session • Maximum: The highest amount a company or party is willing to pay

What is the difference between "order taking" and "order getting"? Which is preferred (from the organization)? Which is easier (as a salesperson)?

• Order taking: is straight taking the order (easier for salesperson) • Order getting: asking for more (preferred from the organization) (upselling)

Define and provide an example of primary objective, minimum objective, and secondary objective.

• Primary objective: The actual goal you hope to achieve o Get the buyer to make a large purchase today • Minimum objective: The minimum you hope to achieve o Ex: get the buyer to make a small purchase today • Secondary objective: Maybe even getting to meet someone else- or getting a tour of their operations in the plant so you can get a better idea of their needs o Ex: "you know the buyer for ____ works down the hall"

Define and provide an example of the following opening methods: referral opening, benefit opening, product opening, complement opening, question opening.

• Referral opening: Tell about someone who referred you to the buyer o Always get permission. Don't stretch the truth • Benefit opening: Start by telling some benefit of the product o Get down to business right away • Product opening: Demonstrate a product feature and benefit as soon as you walk up to the prospect. o Use visual and not just verbal opening to create excitement • Complement opening: Start by complimenting the buyer of the buyer's firm. o Be sincere and do no indulge in flattery • Question opening: Start the conversation with a question Start two-way communication

What are three things that a salesperson can do to avoid complacency?

• Regularly audit customer service • Understand each individuals personal characteristics • Keep a record of promises made • Follow up on customers requests and deliveries promptly • Ensure paperwork is done accurately and in time • Constantly try to improvise and be ahead of the competition

List and define are the four components of the SPIN technique? Provide an example of each question (HANDOUT)

• Situation questions: ask about facts or explore the buyer's present situation. Situation questions are used to collect facts. In experienced salespeople tend to ask more situation questions. Often situation questions can be answered as part of the prospecting process. Only ask "essential" situation questions as prospects quickly become impatient if too many situation questions are asked. o How many people are there in this location? o What turnaround time are you getting? o How do you measure quality? o What equipment are you using now? How long have you had this equipment? o How many people use this machine? • Problem questions: Ask about specific difficulties, problems, or dissatisfactions the prospect has with the present situation that you can solve with your products and services. Problem questions are used to probe for problems, points of dissatisfaction, or general difficulties that the prospect has. Answers to problem questions will direct you toward the core need of the prospect. o How satisfied are you with the present system? o What prevents you from achieving the objective? o What are you looking for in a ____ product? o What do you like about your current product? o What don't you like about your current product? • Implication questions: Questions that follow problem questions, designed to help the prospect recognize the true nature of their problems. Implication questions are used to probe for the consequences of a problem, point of dissatisfaction, or general difficulty. When a prospect answers an implication question s/he should feel that the problem is larger and more urgent than s/he originally felt it was. o What happens if you miss a deadline? o How could a ____ problem give a competitor a chance to gain an advantage? o Does your overtime expense increase when your equipment goes down? • Need payoff questions: Asking questions about the usefulness of solving a problem. Need questions are used to uncover the core need (i.e., the buying motive) of the prospect. These questions focus the prospect's attention on the solution rather than the problem. Answers to need questions will get the prospect to tell you the benefits that they are looking want. o If I had a product that could be twice as efficient and 20% cheaper, would that help you with your business? o If we did that (solve the problem discovered during problem questioning), how much could you save?

Define solo exchanges and functional relationships. What is the difference between the two?

• Solo: Both the buyer and the seller pursue their own self-interests. o No future business, one-time sale • Functional: Long-term market exchanges characterized by behavioral loyalty. Customer satisfaction fulfilled

What does the acronym SMART refer to in setting call objectives?

• Specific • Measurable • Achievable but realistic • Time based

What is an influential adversary, and what are two ways to overcome them in a sales scenario?

• They carry influence, but they don't like you, your firm or products o Isolate the person o Keep them out of sales presentations

What are three goals of closing?

• To help the buyer solve real problems, not just sell your merchandise • To increase credibility • To meet your goals o Though this is a SECONDARY goal - customer's needs first.

What role do the following play in the sales process - initiator, influencers, gatekeepers, users, and deciders?

• Users: members of a buying center that ultimately will use the product. Users have considerable influence in the early and late steps of the buying process - need recognition, product definition, and postpurchase evaluation. Users are important in new-task and modified rebuy situations. • Initiators - the person who starts the buying process. Could be an executive making a decision such as introducing a new product, which starts the buying process. • Influencers: People inside or outside the organization who directly or indirectly provide information during the buying process. May seek to influence issues regarding product specifications, criteria for evaluating proposals, or information about potential suppliers. Example: Architects can play a critical role in the purchase of construction material by specifying suppliers, even though the ultimate purchase orders will be placed by the contractor. • Gatekeepers: Control the flow of information and may limit the alternatives considered. May determine what potential suppliers are qualified sources. Deciders: group that makes the final decision.

What are two things to do when faced with an objection? What are two things not to do when facing objections?

• Welcome the objective, make sure to listen to them fully. DONT - be defensive, or show that you are disappointed

What are champions and how can they be beneficial in a sales situation?

• Work for the buying firm in areas affected by proposed change, advocates for the salesperson o Work with the salesperson to make proposal successful o May be managers/senior mangers with the buyers firm o Champions can be found within your organization as well