Chapter 12
After the approach, the salesperson prepares the sales presentation. Ideally, the sales presentation will do the following:
-Accurately convey the product's major features. -Describe its advantages in comparison with alternatives. -Detail how it will provide benefits for the potential customer.
techniques of overcoming objections include:
-Acknowledging the objection: "Yes, our prices are higher because our product is better." The objection allows the salesperson an additional opportunity to stress the benefits of the product. For example, consumers are willing to pay Page 401higher prices provided they've been given a clear reason (higher quality, better safety, more efficient) for spending more. -Postponing: "We'll discuss the delivery option in a few minutes, but first let me ask about your needs in this area...." Salespeople should postpone addressing objections if the full context of an appropriate answer has not been developed. This strategy works best if the salesperson plans to address an objection shortly. Postponing for too long will frustrate customers and reduce their level of trust. -Denial: "That is not accurate. Here's what is the situation actually is...." If a customer mentions something that is completely false, the salesperson should strongly deny the point, but only in a way that is not offensive or insulting to the customer.
common closing approaches:
-Summary close. The summary close works by repeating what has already been agreed to in the course of the presentation, typically via earlier trial closes. "Let's summarize: In addition to getting the basic service, you will be receiving free installation, our 30-day free return policy, and a full 2-year manufacturer's warranty. How does that sound?" In this type of close, the salesperson summarizes key benefits and how they meet the customer's stated needs before asking for the sale. -Alternative close. The alternative close works by offering more than one clearly defined alternative to the customer. "Would you prefer the red model or the yellow one?" This technique works well in many different situations when you are seeking agreement, not just selling products. -Assumptive close. In the assumptive close, the salesperson acts as if the buyer has already decided to purchase. The salesperson asks something like, "What date would you like the product delivered?" If the customer responds with a specific date, the salesperson knows the customer has decided to make the purchase.
what takes place in the approach stage of the personal selling process
-learning about the customer's needs and wants -setting the first appointment with the customer -establishing a rapport with the potential customer
personal selling is more effective when the good/service is:
-new to the world (self-driving vehicle) -infrequently purchased (new couple buying a house) -highly technical or complex...this usually requires the salesperson to educate customers on product benefits and proper use (the purchase of an advanced communications satellite by the US Navy) -viewed as risky...purchases of high-priced or high-involvement items typically elevate buyers' risk perceptions. In such cases, salespeople often play a critical role in helping to build customers' trust in the firm and its products (e.g., investing in an emerging markets mutual fund). -Customizable. Such products may require the assistance of sales personnel to properly configure the offering to match customer needs (e.g., a university medical center buying and implementing a new information system).
personal selling is more effective when __________
-the good or service is new to the world -the good or service is customizable -the good or service is highly technical or complex
which of the following statements are characteristic of sales playbooks
-they help salespeople customize and configure their presentations -they are generally prepared by the marketing department -they may include collateral information sheets for individual customer accounts
base salary
A fixed amount of sales compensation
true or false: sales positions do not experience high levels of turnover
FALSE
customer advocacy
a form of customer service in which companies focus on what is best for the customer
bonus
a lump sum paid out to salespeople for the achievement of their respective sales quotas
delilah works for a firm that has several levels in its organizational hierarchy. at each level of management, the number of subordinates is small so that managers can spend more time with each employee. the span of control at delilah's firm is said to be _______
a narrow span of control
commission
a per-unit payout paid on sales beyond the salesperson's quota
sales forecast
a projection of achievable revenue over an identified future period
relationship selling
a sales approach that involves building and maintaining customer trust over a long period of time--and not just meeting periodic sales quotas
personal selling process
a sequence of seven steps that salespeople follow to acquire new customers and obtain orders: prospecting and qualifying; pre-approach; approach; presentation; handling objections; gaining commitment; and follow-up -the steps numbered as 1 and 2 take place in advance of the sales call. The steps numbered 4 through 6 occur during the sales call itself. Step 7 happens after the sales call.
sales 2.0
a term used to refer to how salespeople are using web 2.0 tools and social media to sell more effectively
(sales) prospect
an individual (or group) capable of making the decision on a good or service a salesperson is selling
market-related knowledge
an understanding of the goods, services, and processes within one's firm and of key business issues that affect the customer's success
lead scoring
analytics-based sales approach in which a company numerically rates its best prospective customers
gaining commitment
asking a sales prospect to move forward with the sales process, ultimately leading to a purchase.
features (in the FAB approach)
attributes or facts relating to the product being sold or demonstrated
Specialization by selling activity
common in many industries. It is perhaps best illustrated by the delineation between the "hunter" and "farmer" types of salespeople
the feature benefit advantage approach is a way for salespeople to _________
communicate the value of a product
incremental productivity method (cost-based approach)
compares the additional cost of one new salesperson to expected additional sales revenue; the company will keep adding salespeople as long as additional sales revenue is greater than additional selling costs
having to fix billing or customer service issues or communicate to product managers about problems customers are having with the company's products are all tasks involved in
customer advocacy
which of the following are steps in the personal selling process
gaining commitment, prospecting and qualifying, the approach
advantages (in the FAB sales approach)
general statements about what the features do; they may or may not be connected to an expressed or actual customer need -sometimes these sales reps will point out the disadvantages of a customer's current approach or of a competing product
toby is a sales rep for a pharmaceutical company. he has an assigned territory and can sell all of the company's products to clients within that territory. toby is part of which kind of sales force
generalist
what three dimensions are used to group members of a specialist sales force
industry, product, selling activity
qualifying (prospects)
involves identifying potential customers within the firm's target market who have a desire for the product, the authority to purchase it, and the resources to pay for it
social selling
involves the use of online, mobile, and social media to engage customers, build stronger customer relationships, and increase sales
the net present value of a customer's business over the span of their relationship with an organization is referred to as ________
lifetime value
generally speaking, sizing approaches used by sales organizations can be categorized as cost-based or ________-
market-based
the guiding factors used by sales management to determine the need for generalists or specialists are market considerations and the firm's overall ________ strategy
marketing strategy
quantitative forecasting
methods that apply algorithms to estimate sales in future periods
nonquantitative forecasting (subjective forecasts)
methods that rely heavily on the expert judgement of knowledgeable individuals inside and outside of the organization
Product specialization
most effective when vast knowledge is required to sell the good or service you are taking to market. Examples are the high-tech and medical fields.
sales management involves which of the following areas
motivating, compensating, recruiting, and evaluating
examples of metrics that are used by marketers include all of the following except: click-through rate for email campaigns, click-through rate for website, new product trial rates, new promotional mix, marketing ROI
new promotional mix
channel sales representatives
new-business sales representatives who focus on securing new distribution channel outlets
sales force composite
nonquantitative forecasting method that asks each member of the sales force for his or her best estimate of sales for their individual territories over the coming year, which sales manager then adjusts and aggregates
survey of buying intentions
nonquantitative forecasting method that develops a forecast based on how much of each product a sample of customers intend to purchase
the concerns or reasons customers offer for not buying a product are called
objections
___________ often differs from the other tools of the promotion mix because communication with the customer in this approach is two-way, often face to face
personal selling
within the sales context, what is the number one warning sign that fear and self-doubt are interfering with a person's ability to perform to his or her potential
procrastination
fenton is a sales representative. in order to search for potential customers, he scans websites, attends trade shows, and networks with others in his industry or related industries. by doing so, fenton is engaged in __________
prospecting
the use of lead scoring helps companies identify ________
prospective customers
the main goal of the first step in the personal-selling process is to find ______ prospects
qualifying
since it costs much more to acquire new customers than it does to retain them, _____ selling has become an increasingly important way for firms to develop personal relationships with their customers
relationship selling
a sales rep that utilizes web 2.0 tools in order to sell more effectively is using which technique
sales 2.0
selling-related knowledge
sales abilities and an understanding of selling techniques
team selling
sales approach in which the sales representative organizes experts from across the extended firm to support new-customer acquisition and ongoing customer relationship management
feature-advantage-benefit (FAB) approach
sales approach that conveys the product's major features, describes its advantages compared with alternatives, and details the benefits it will provide the customer // a natural way of communicating the value of their product to their prospects and clients
competitive benchmarking (market-based approach)
sales force sizing approach in which sales managers match the size of competitors' sales forces
equalized workload method (market-based approach)
sales force sizing approach in which sales managers use sales-activity calculations to determine proper staffing levels
specialist sales force
sales force structure in which sales reps are grouped along one of three dimensions: product, selling activity, or industry vertical
generalist sales force
sales force structure in which sales reps sell all of the company's market offerings within their assigned territory
as noted in your text, helping to prepare a periodic _______________ is perhaps the most central sales management role
sales forecast
missionary salespeople
sales people who generate sales by promoting the firm and encouraging demand for its products
sales managers
sales personnel who have oversight of selling efforts at varying levels of the organizational hierarchy
new-business salespeople
sales representatives who are responsible primarily for finding new customers and securing their business
consultative sellers
sales representatives who focus on developing long-term relationships by developing a deep knowledge of the customer's industry, business issues, and needs
key-account sellers
sales representatives who focus on establishing and maintaining partnership relationships with a small set of three to five named accounts
order-taker salespeople
sales representatives who primarily process orders that a customer initiates...they are most commonly found within retail and inbound call-center settings
delivery salespeople
sales representatives whose chief role is product delivery; sometimes called route salespeople
the customer groups or geographic districts to which an individual sales person or sales team sells is referred to as a ________
sales territory
which of the following is true regarding sales training programs
sales training programs should be customized to the needs of the representative and changing market conditions
farmer (salesperson)
salesperson who cultivates existing accounts and current customer relationships
hunter (salesperson)
salesperson who focuses on acquiring accounts new to the selling firm
a salesperson who has the ability to recognize the different types of buyers and adjust the sales message accordingly is said to possess ________ knowledge
selling-related
which of the following questions are represented in the SPIN selling framework
situation questions problem questions implication questions need-payoff questions
nonquantitative forecasting methods are also called ________ forecasts
subjective
janis has an appointment to present her company's new medical device to a large, university hospital. rather than go by herself, janis has assembled a group of people to attend: technical experts who can better explain how the product works, customer service personnel to explain the company's support system, and her sales manager to discuss volume discounts with the hospital purchasing department. what approach is janis taking in this example?
team selling
when a salesperson works with sales management and experts across the firm to support new-customer acquisition and ongoing customer relationship management, it is referred to as ________
team selling
sales playbooks
technology-enables tools and processes that provide guided selling assistance to various selling job roles
the defining feature of a generalist sales force is that its members sell products based on their assigned
territory
the defining feature of a generalist sales force is that its members sell products based on their assigned _______
territory
customer-oriented selling
the adoption of the marketing concept at the level of the individual salesperson and customer
adaptive selling
the altering of sales behavior during a customer interaction or across customer interactions based on perceived information about the selling situation
what has led to a fundamental rethinking of the strategic nature of the salesperson's role?
the changing selling environment
objections
the concerns or reasons customers offer for not buying a product
sales territories
the customer groups or geographic districts to which an individual salesperson or a sales team sells
the final step of the personal selling process is _________
the follow-up
benefits (in the FAB sales approach)
the individual values attached to the advantages offered by various features of the product
sales quota
the minimum desired sales level for an individual or team for a specified period of time
lifetime value
the net present value of a customer's business over the span of their relationship with an organization
span of control
the number of salespeople who report to a common manager
sales force management
the planning, direction, and control of personal-selling activities...including recruitment, selection, training, motivating, compensation, and evaluation as they apply to the sales force
charlotte wants to learn as much as possible about a potential customer so she is reviewing the customer's account history, identifying the customer's needs and determining who the key decision makers are in the firm. these activities would take place in which step of the personal-selling process?
the pre-approach
detailing how the product will provide benefits for the potential customer takes place during _________
the sales presentation
assumptive close
the salesperson acts as if the buyer has already decided to purchase
prospecting
the search for potential customers
approach
the stage in the personal selling process in which the sales rep meets the customer for the first time
pre-approach
the stage in the personal selling process in which the salesperson does research and preparation before contacting the customer
personal selling
the two-way flow of communication between a buyer and a seller that is paid for by the seller and seeks to influence the buyer's purchase decision
in a ______ close, a sales rep asks questions throughout the sales presentation that test the buyer's readiness to commit
trial close
which of the following characteristics are attractive characteristics of a career in sales (benefits of a career in sales / benefits of a sales career)
variety of sales positions available, financially rewarding, work-family life balance
alternative close
works by offering more than one clearly defined choice to the customer
summary close
works by repeating what has already been agreed to in the course of the presentation
