MKTG 542 Exam #2

Describe the LAARC acronym and how it applies to overcome sales resistance.

-An acronym for listen, acknowledge, assess, respond, and confirm that describes an effective process for salespeople to follow to overcome sales resistance. -Once the concerns have been confirmed, the presentation can proceed. -Experience indicates that this form of buyer confirmation is often a sufficient buying signal to warrant the salesperson's attempt to gain a commitment.

Understand the information relevant to the selling situation

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

Understand the six reasons why prospects raise objections.

1) Buyer wants to avoid the sales interview. 2) Salesperson has failed to prospect and qualify 3) Buyer will not buy on the first sales call. 4) Prospect does not want to change the current way of doing business. 5) Prospect fails to recognize a need 6) Prospect lacks information on a new product or on the salesperson's company.

Distinguish between the five types of objections

1) No need: Buyer says he or she does not need the product/service. 2) Product or service objection: Buyer does not like the way the product/service looks or feels. 3) Company objection: Buyer has never heard of or is not familiar with the product's company. 4) Price is too high: The price of the product being too high for the buyer. 5) Time/Delaying: Buyer puts off the decision to buy until a later date.

List the steps in developing a strategic prospecting plan

1) Set Goals: Establish daily, weekly and monthly quotas for acquiring new prospects 2) Allocate Time: Establish a regular daily schedule for conducting prospecting activities 3) Keep Records: Track your results from using the different prospecting methods 4) Evaluate: What is working for you? Compare results and use the methods of selling that work best for you 5) Stay Positive: Develop confidence by knowing your products and believing that you offer the best solutions

Understand the general procedures for handling complaints

1. Build the relationship to the point that your customers are comfortable complaining. 2. Listen carefully and get the whole story 3. Ask the customers how they would like their complaint resolved. 4. Gain agreement on a solution. 5. Take action - educate the customer so he or she has realistic expectations. 6. Follow through on all promises - add value.

Identify the three types of sales communications

1. canned presentations: Sales presentations that include scripted sales calls, memorized presentations, and automated presentation. 2. 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. 3. 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.)

Know the five techniques used to earn a commitment.

1. direct commitment: the salesperson asks the customer directly to buy 2. legitimate choice: the salesperson asks the prospect to select from two or more choices during a sales presentation. not Gillespies's favorite. it gives the prospect a limited # of choices 3. summary commitment: the salesperson summarizes all the major benefits the buyer has confirmed over the course of the sales calls - her favorite - essentially a needs summary of call, including a recap of the convo, summarizes benefits and an agreement has been made 4. T-account/balance sheet: a salesperson asks the prospect to brainstorm reasons on paper of why to buy and why not to buy - T chart - MUST give them time to do this! use this if you are not sure where a person is standing 5. success story: a salesperson relates how one of his or her customers had a problem similar to the prospect's and solved it by using the salesperson's product

Define a sales dialogue template and understand the nine sections used in the 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

Define customer relationship management (CRM) systems

A system that dynamically links buyers and sellers into a rich communication network to establish and reinforce long-term profitable relationships.

Straight-line:

A territory routing plan in which salespeople start from their offices and make calls in one direction until they reach the end of the territory.

Circular:

A territory routing plan in which the salesperson begins at the office and moves in an expanding patterns of concentric circles that spiral across the territory.

Cloverleaf:

A territory routing plan in which the salesperson works a different part of the territory and travels in a circular loop back to the starting point.

Leapfrog:

A territory routing plan in which, beginning in one cluster, the salesperson works each of the accounts at that location and then jumps to the next cluster.

Major city:

A territory routing plan used when the territory is composed of a major metropolitan area and the territory is split into a series of geometric shapes reflecting each one's concentration and pattern of accounts.

Distinguish between information about the buyer vs. information about the company

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

Define sales resistance

Buyer's objections to a product or service during a sales presentation.

Distinguish between commitment signals vs. trial commitments.

Commitment Signals: Favorable statements a buyer makes during a sales presentation that signal buyer commitment. Trial Commitments: An earning commitment technique that determines the attitude of your buyer toward a particular feature or benefit.

Distinguish between the three types of customer service dimensions

Communication: A two-way flow of information between salesperson and customer. Resilience: The ability of a salesperson to get knocked down several times a day by a customer's verbal assault (i.e., complaint) and get right back up with a smile and ask for more. Service Motivation: The desire of a salesperson to serve customers each day.

Define strategic prospecting and its purpose

Definition: 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.

Define check-backs or response checks and understand their purpose

Definition: Questions salespeople use throughout a sales dialogue to generate feedback from the buyer. Purpose: -Confirm benefits and assess buyer's level of interest. -Evaluate the level to which the salesperson has handled a buyer's objection.

Know the difference between 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.

Understand the eight techniques for responding to sales resistance

Forestall: Introduce the source of the objection before the prospect brings it up Direct Denial: A rather harsh response that the prospect is wrong Indirect Denial: Softening the blow when correcting a prospect's information Translation or Boomerang: Turn a reason not to buy (the source of the objection) into a reason to buy Compensation: Counterbalance the objection with an offsetting benefit Question: Ask the buyer assessment questions to gain a better understanding of the what they are objecting too Third Party Reinforcement: Use the opinion or data from a third party source to help overcome the objection & reinforce the salesperson's points Feel-Felt-Found: Salesperson relates that others actually found their initial opinions to be unfounded Coming-to-That: The salesperson tells the buyer that he or she will be covering the objection later in his or her presentation

Know the three fundamental characteristics of goals and objectives.

Goals should be realistic, yet challenging. Goals should be specific and quantifiable. Goals should be time specific.

Know the four sequential components of effective follow-up

Interact: salesperson acts to maximize the number of critical encounters with buyers in order to encourage effective dialogue and involvement between the salesperson and buyer Connect: salesperson maintains contact with the multiple individuals in the buying organization influencing purchase decisions and manages the various touch points the customer has in the selling organization to assure consistency in communication Know: salesperson coordinates and interprets the information gathered through buyer-seller contact and collaboration to develop insight regarding the buyer's changing situation, needs, and expectations Relate: the salesperson applies relevant understanding and insight to create value-added interactions and generate relationships between the salesperson and buyer

Distinguish between intranet vs. extranet.

Intranet: An organization's dedicated proprietary computer network offering password-controlled access to people within and outside the organization. Extranet: Proprietary computer networks created by an organization for use by the organization's customers or suppliers and linked to the organization's internal systems, informational databases, and intranet.

Classify the four types of goals and understand how they are related to each other

Personal: A salesperson's individual desired accomplishments. Territory: Desire of selling a certain amount of product within an area or territory in order to achieve personal goals. Account: Desire of selling a certain amount of product to one customer or account in order to achieve territory and personal goals. Sales call: Desire of selling a certain amount of product per each sales call in order to achieve account, territory, and personal goals.

Describe the six relationship-enhancement activities

Provide useful information: -Relevant -Timely -High quality Expedite orders/monitor installation: -Track orders -Inform on delays -Help with installation Train customer personnel: -Train even when contract does not call for it Correct billing errors: -Go over all orders -Correct problem before customer recognizes it Remember the customer after the sale: -Set up a regular call schedule -Let customer know you will be back Resolve complaints: -Preferably prevent the need to complain -Ask customer how he or she wants complaint resolved

Distinguish between rational buying motives vs. emotional buying motives

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.

Know the difference between a sales call vs. 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.

Know the difference between sales leads vs. sales prospects

Sales leads or suspects: Organizations or individuals who might possibly purchase the product or service a salesperson offers. 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

Explain single-factor analysis (ABC analysis) vs. portfolio analysis (two-factor analysis)

Single-Factor Analysis -Definition: A method for analyzing accounts that is based on one single factor, typically the level of sales potential. -Straightforward and requires no statistical analysis or data manipulation. Portfolio Analysis -Definition: A method for analyzing accounts that allows two factors to be considered simultaneously. -Enhanced flexibility and ability to incorporate multiple variables for analyzing and sorting accounts.

Describe the six teamwork skills

Skills salespeople must learn to build internal partnerships that translate into increased sales organizational performance. 1. Understanding the Other Individuals 2. Attending to the Little Things 3. Keeping Commitments 4. Clarifying Expectations 5. Showing Personal Integrity 6. Apologizing Sincerely When a Mistake is Made

Describe the SPES Sequence as it applies to the use of sales aids in the presentation

State the Selling Point and Introduce the Sales Aid: Stating the full selling point including the feature and potential benefit and then introducing the sales aid. Present the Sales Aid: Allow a few moments of examination and familiarization before saying anything. Explain the Sales Aid: Provide a brief description explaining the significance. Summarize: Summarize its contribution and support and remove the sales aid.

Understand each step in the sales funnel or pipeline

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. Step 4: Preparing for Sales Dialogue

Categorize the five types of territory routing plans

Straight-line: A territory routing plan in which salespeople start from their offices and make calls in one direction until they reach the end of the territory. Cloverleaf: A territory routing plan in which the salesperson works a different part of the territory and travels in a circular loop back to the starting point. Circular: A territory routing plan in which the salesperson begins at the office and moves in an expanding patterns of concentric circles that spiral across the territory. Leapfrog: A territory routing plan in which, beginning in one cluster, the salesperson works each of the accounts at that location and then jumps to the next cluster. Major city: A territory routing plan used when the territory is composed of a major metropolitan area and the territory is split into a series of geometric shapes reflecting each one's concentration and pattern of accounts.

Distinguish between territory analysis vs. account classification

Territory Analysis -Definition: The process of surveying an area to determine customers and products who are most likely to buy. -Purpose: Much of the information can be plotted to develop detailed territory maps that will begin to pinpoint pockets of existing and potential customers. Account Classification -Definition: The process of placing existing customers and prospects into categories based on their potential as a customer. -Purpose: Guides salespeople in more efficient allocation of time, effort, and resources.

Define self-leadership and understand the five stages of self-leadership

The process of guiding oneself to do the right things and do them well. 1. Setting goals and objectives 2. Territory analysis and account classification 3. Development and Implementation of Strategies and Plans 4. Tapping Technology and Automation 5. Assessment of Performance and Goal Attainment

Distinguish between the three different proof providers

The use of statistics, testimonials, or case histories to support product claims. Statistics: Facts that lend believably to product claims. Testimonials: Statements from satisfied users of the selling organization's products and services. Case Histories: Testimonials in a story or anecdotal form.

Know the three types of sales aids, with examples for each type.

Visual Materials: Product Demonstrations Printed materials, photographs and illustrations, and charts and graphs used as sales aids. Electronic Materials: Sales aids in electronic format such as slides, videos, or multimedia presentations. Product Demonstrations: The product itself is the most effect sales tool because it provides the prospective buyer with an opportunity for hands-on experience.

Distinguish between the five different verbal support elements

Voice Characteristics The pitch and speed speech, which salespeople should vary to emphasize key points. Example A brief description of a specific instance used to illustrate features and benefits of a product. Anecdote A type of example that is provided in the form of a story describing a specific incident or occurrence. Comparison A statement that points out and illustrates the similarities between two points. Analogy A special and useful form of comparison that explains one thing in terms of another.