MKTG 542 Quiz 3 Ch 5 & 6

Sources of Information

-Online searches -Online and print directories -Prospect website -Social media -Annual reports -Trade and business press -Professional organizations -Company databases -Contact with prospect

Information about the Selling Situation

-Type of purchase -Motivation for buying -Current supplier -Buying center members and roles -Buying process -Available budget -Competitors involved

Tips for Creating Effective Sales Proposals

-When writing a proposal, pretend you are one of the buyer's decision makers and decide what you need to know to make a decision. -Think of the proposal as an in-depth conversation with the buyer's decision makers. -Give the decision makers all the information they need to make an informed decision. -Avoid boilerplate proposals that use the same wording for all customers. -Avoid so-what proposals that do not give customers the financial justification for buying your product. -Realize that you must educate the buyer and provide information accordingly. -Ensure that your proposal has a logical flow and the customer can easily follow.

Written Sales Proposals

A complete self-contained sales presentation on paper, often accompanied by several other verbal sales presentations before or after the proposal is delivered. Thorough customer assessment should take place before customized proposal is written.

Sales Dialogue Template

A flexible planning tool that assists the salesperson in assembling pertinent information to be covered with prospect. Sections 1. Prospect Information 2. Customer Value Proposition 3. Sales Call Objective 4. Linking Buying Motives, Benefits, Support Information, and Reinforcement Methods 5. Competitive Situation 6. Beginning the Sales Dialogue 7. Anticipate Questions and Objections 8. Earn Prospect Commitment 9. Build Value through Follow-Up Action

Buying Motives

A need activated drive to search for and acquire a solution to resolve a need or problem; the most important factors from the customer's perspective in making a purchase decision. Buying motives may be rational or emotional, or a combination of both rational and emotional. -Rational: Typically relates to the economics of the situation, including cost, profitability, quality, services offered, and the total value of the seller's offering perceived by the customer. -Emotional: Includes motives such as security, status, and need to be liked; sometimes difficult for salespeople to uncover these motives.

Strategic Prospecting

A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. Purpose: To help salespeople determine the best sales opportunities in the most efficient way.

Sales Funnel or Pipeline

A representation of the trust-based sales process and strategic sales prospecting process in the form of a funnel.

Strategic Prospecting Plan

A salesperson's plan for gathering qualified prospects. Purpose: The strategic prospecting plan sets goals, allocates specific time to be used for prospecting, and continuously evaluates results in order to maximize the effectiveness or prospecting time and effort.

Customer Value Proposition

A statement of how the sales offering will add value to the prospect's business by meeting a need or providing an opportunity. Purpose: -Summarizes the legitimate business reason for making the sales call. -Clearly states why the customer will be better off by doing business with the salesperson and his or her firm.

Basic Information about the Prospect

About the Buyer: -Name, title, and contact information -Educational and work background -Community and organizational involvement -Hobbies and interests -Communication style About the Company: -Type of business -History of business -Number of employees -Target market served -Products and services offered -Key competitors -Current strategy and performance

Sales Prospect

An individual or organization that has a need for the product or service, has the budget of financial resources to purchase the product or service, and has the authority to make the purchase decision

Linking Buying Motives, Benefits, Support Information, and Reinforcement Methods

Buying Motives: -What is most important to the prospect(s) in making a purchase decision? Specific Benefits Matched to Buying Motives: -Benefits to be stressed are arranged in priority order. -Each benefit should correspond to one or more buying motives. -Gather information needed to support claims for each benefit. -Where appropriate, use methods for reinforcing verbal content. Example: AV, collateral material, illustrations, testimonials, etc.

Networking

Centers of Influence: Well-known and influential people who can help a salesperson prospect and gain leads. Noncompeting Salespeople: A salesperson selling noncompeting products. Electronic Marketing: Using social media to help salespeople identify, gather information about, and communicate with prospects.

Prospecting Methods

Cold Canvassing Networking Company Sources Commercial Sources

Company Sources

Company Records: Information about customers in a company database. Advertising Inquiries: Sales leads generated from company advertising efforts. Telephone Inquiries: Inbound and outbound telemarketing. Trade Shows: Events where companies purchase space and set up booths that clearly identify each company and its offerings and that are staffed with salespeople who demonstrate the products and answer questions. Seminars: A presentation salespeople give to generate leads and provide information to prospective customers who are invited to the seminar by direct mail, word of mouth, or advertising on local television or radio.

Challenges in Prospecting

Difficult to allocate enough time Fear of rejection Business to business buyers are not relying on salespeople for information

Commercial Sources

Directories: Electronic or print sources that provide contact and other information about many different companies or individuals. Lead Management Services: Lists of targeted businesses or individuals with detailed contact and other information, as well as email, direct mail, telephone, and Web- based marketing services to connect with targeted leads.

Elements to a Written Sales Proposal

Executive Summary Demonstrates salesperson's knowledge about the customer's need and creates a desire in the customer to read the full proposal. Customer Needs and Proposed Solution Includes situation analysis and the recommended solution. Seller Profile Information about the selling company. Price & Sales Agreement Presents the pricing and delivery options. Implementation & Timetable Includes details about the additional information required to sign the contract.

Features vs. Benefits

Features: -A quality or characteristic of a product or service that is designed to provide value to a buyer. -Factual statements about the characteristics of a product or service. Benefits: -The added value or favorable outcome derived from features of the product or service the seller offers. -The value received by the buyer.

Sales Presentation

Focuses on customer value and only takes place after the salesperson has completed a questioning process.

How to Overcome Prospecting Challenges

Follow a strategic sales prospecting process Utilize prospecting methods Develop a strategic prospecting plan Prepare for sales dialogue

Organized Sales Dialogues and Presentations

Organized Sales Dialogue: -Also known as the organized sales presentation. Unlike a canned sales presentation, an organized sales dialogue has high level of customer involvement. Organized Sales Presentation: -A sales presentation that allows a salesperson to implement appropriate sales strategies and tactics based on customer research or information gathered during the previous sales calls. -Feature a two-way dialogue with a high level of customer involvement.

Components of the Sales Dialogue

Sales Call An in-person meeting between a salesperson or sales team and one or more buyers to discuss business. Sales Dialogue Business conversations between buyers and sellers that occur as salespeople attempt to initiate, develop, and enhance customer relationships. Sales Presentation Comprehensive communications that convey multiple points designed to persuade the customer to make a purchase.

Canned Sales Presentations

Sales presentations that include scripted sales calls, memorized presentations, and automated presentation. -Can be completely and logically structured. -Message varies little from customer to customer. -Should be tested for effectiveness.

Steps in the sales funnel

Step 1: Generating Sales Leads Sales leads or suspects: Organizations or individuals who might possibly purchase the product or service a salesperson offers Step 2: Determining Sales Prospects Qualifying sales leads: The salesperson's act of searching out, collecting, and analyzing information to determine the likelihood of the lead being a good candidate for making a sale. Step 3: Prioritizing Sales Prospects Ideal customer profile: The characteristics of a firm's best customers or the perfect customer.

Customer Appointments

Tactics: -Give the prospect a reason why an appointment should be granted. -Request a specific amount of time. -Suggest a specific time for the appointment. Outcomes: -The salesperson is letting the prospect know that he or she thinks the prospect's time is important. -Better chance that the salesperson will receive the undivided attention of the prospect during the sales call. -Good tool to assist the salesperson in effective time and territory management.

Cold Canvassing

When salespeople contact a sales lead unannounced with little if any information about the lead. Cold Calling: Contacting a sales lead unannounced and with little or no information about the lead. Referral: A name of a company or person give to the salesperson as a lead by a customer or even a prospect who did not buy at this time. Introduction: A variation of a referral where, in addition to requesting the names of prospects, the salesperson asks the prospect or customer to prepare a note or letter of introduction that can be sent to the potential customer.

Salespeople lose current customers due to lack of

prospecting