personal selling exam 2

a seller should strategically select methods and media that will helpfully address the needs of the buyer

-the process includes responding to the buyers unique style ->expressives like to see strong, intense colors and lots of photos, cartoons, fancy fonts and positive images like smiles ->analytics like visuals that are clean and simple, a list of references and a lot of details ->amiables prefer visuals with people in them a relatively slow movie presentation ->drivers want crisp, professional visuals with bold lettering to highlight important points

sources of info; goal

-to gather what is possible and profitable

attitudes

-towards salespeople, your company, your product

current buying situation

-type of buying process (new task, straight rebut, modified rebut, strengths and weaknesses of potential competitors

demographics

-type of org., size, products/services offered, financial position and its future, culture

project's customers

-types (consumers, retailers, wholesalers), benefits they seek from the prospect's products and services

identifying customers social styles

-use comm skills to observe the customer's behavior, listen to the customer, and ask questions to clarify the customer -concentrate on the customer's behavior and disregard how you feel about the behavior. don't let your feelings about the customer or thoughts about the customer's motives cloud your judgement -avoid assuming that specific jobs or functions are associated with as social style -test your assessments, look for clues and info that may suggest you have incorrectly assessed a customer's social style. if you look for only confirming cues, you will filter out important info

social media

-use online tools (FB, linkedin) to prospect and maintain contact with existing customers

other internet uses

-uses websites, email, listervs, bulletin boards, forums, newsgroups

customer value proposition

-value proposition -way in which your product will meet the prospect's needs how that is different from the offerings of competitors, especially the next-best alternative -what is important to the specific prospect, how can we demonstrate our capability, how does out solution create value for them -"it's the most tech advanced system on the market today"

prospect's competitors

-who they are, how they differ in their bus approaches, prospect's strategic position in the industry (dominant, strong, weak)

verbal tools

-word pictures and stories ->use stories from your own life, have a reason for telling it, use the hook of the story to tie into presentation, be accurate and vivid, use silence and pauses -humor ->laughter will put everyone at ease ->don't oversell the joke, don't apologize before telling a joke, punch line clear

sales letters

-write personal letters to clients

handouts

-written docs provided to help buyers remember what was said -a well prepared set of handouts can be one of the best ways to increase buyer retention of info, especially over longer periods

customized presentation

-written/oral presentation based on a detailed analysis of the customer's needs -offers an app to use the comm principles to discover the customers needs and problems and propose the most effective solution for satisfying those needs -cust recognizes the sales rep as a professional who is helping solve problems not just selling products

primary call objective

actual goal they hope to achieve before each sales call

product opening

actually demonstrate a product feature and benefit as soon as you walk up to the prospect, uses visual not just verbal opening

standard memorized presentation

also known as "canned presentation" -completely memorized sales talk -present selling points in the same order to all customers -ensures that the salesperson will provide complete and accurate info about the firm's products and policies -included the best techniques and methods->can help bring new salespeople up to speed quickly and give them confidence

rapport

close, harmonious relationship founded on mutual trust

compliment opening

compliment the buyer or their firm, be sincere

selling center

consists of all the people in the selling org. who participate in a selling opportunity

how to strengthen the presentation

-a seller should strategically select methods and media that will helpfully dress the needs of the buyer -verbal tools -visual tools -product demonstrations -handouts -written proposals

policies and procedures

-about salespeople, sales visits, purchasing and contracts

making adjustments

-alter presentation to obtain a favorable reaction -might require collecting add info about prospect, developing a new sales strategy or altering the style of the presentation

historical buying patterns

-amount purchased in the product category, sole supplier or multiple suppliers/why, reason for buying from present suppliers, reasons for any dissatisfaction with suppliers or products currently purchased

improves the buyer's understanding

-appealing to more than one sense with multiple-sense appeals increases understanding dramatically -->describe products merits (hearing), show the product and invite merchant to taste it (sight, touch, taste)

problem questions

-ask about specific difficulties, problems or dissatisfactions the prospect has -goal is to discover a problem

dimensions of social styles

-assertiveness -responsiveness

responsiveness

-based on how emotional people tend to get in social situations ->responsive people readily express joy, anger, and sorrow, more concerned with others, casual and informal

waiting for the prospect

-be on time, call if late -use waiting time effectively -don't wait more than 15 minutes- shows that the seller's time is also important

characteristics of a strong presentation

-keep the buyers attention -improves the buyer's understanding -help the buyer remember what was said -offers proof of the salespersons assertions -creates a sense of value

payback period

-length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings -add up estimated future cash inflows and dived them into the investment cost -investment/savings per year -buyers like to see short payback periods

cost-benefit analysis

-list the costs tot eh buyer and the savings they can expect from the investment - simple cost benefit analysis ->info needed to calc savings must be supplied by the buyer -comparative cost benefit analysis - compare the present situations costs with the value of the proposed solution or the sellers product with a competitor's product

first impressions

-making a good first impression results in a prospect who is willing to listen -be well groomed and enter confidentially -observe the prospect's state and modify your behavior as needed -->when in a bad mood, last thing they want is a happy bouncy person -->adapt and ask if this is not a good time to meet -->better to be humble than cocky

net present value

-money left idle loses value over time because of inflation and the firms cost of capital -npv= future cash inflows discounted into todays dollars - investment

offers proof of the salespersons assertions

-most people won't believe everything a salesperson tells them

personal

-name, family status, education, aspirations, interests, social style

ROI

-net profits (or savings) expected from an investment expressed as a percentage of the investment -net profits/investment

other sources

-noncompeting salespeople, firm, friends, etc.

helps the buyer remember what was said

-on average people immediately forget 50% of what they hear; after 48 hours they've forgotten 75% of the message -vividly communicate features to create a strong impression -present the product skillfully in a well timed demo

product demonstrations

-one of the most effective methods

SPIN technique

-situation questions -problem questions -implication questions -need payoff questions -helps the prospect identify unrecognized problem areas -encourages prospect to define the need

written proposals

-some are simple adaptations of brochures developed by a corporate marketing dept -The RFP Process -writing proposals -presenting the proposals

developing a strategy for the presentation

-sort through the various options available to the seller to see what is best for this prospect - sort out their needs and prioritize them -feature dumping: talking about lots of features of little interest to the customer is a waste of time

criteria for effective objectives

-specific, realistic, measurable -set objectives that require a buyer's response

analysis paralysis

-spend all your time analyzing situations and finding info instead of making sales calls ->must balance time spent acquiring info and time spent making calls

testimonials and test results

-testimonials: statements written by satisfied users -don't handout to every prospect - only if help address their needs or concerns

assertiveness

-the degree to which people have opinions about issues that publicly make their positions clear to others ->speak out, make strong statements, take charge attitude, confrontational

versatility

-the effort people make to increase the productivity of a relationship by adjusting to the needs of other party -versatile salespeople: those able to adapt their social styles- are much more effective than salespeople who do not adjust their sales presentations

obtaining pre-call info

-the more info the salesperson has about the prospect, the higher the probability of meeting the project's needs and developing a longterm relationship

customer benefit proposition

way in which a salesperson shows how a product addresses the buyers specific needs

if the prospect refuses to answer important questions because the info is confidential

you can't do much but emphasize reason for asking question -get them to trust you -if they don't know, ask if they can get the info or ask where to find it

FAB

discuss features, advantages, benefits -"this car has antilock breaks (feature) which help the car stop quickly (adv) which provides the safety you said you were looking for (benefit)

FEBA

features, evidence, benefits, agreement

selective perception

hear what we want to hear

expressives

high on assertiveness and high on responsiveness -warm, approachable, intuitive, competitive -view power and politics as important factors in their quest for personal rewards and recognition -interested in personal relationship, primarily with supporters and followers recruited to assist them in achieving their personal goals -focus on the future, directing their time and effort toward achieving their vision -little concern for practical details in present situations -base their decisions on their personal opinions and the opinions of others -act quickly, take risks, tend to be impatient and change their minds easily -selling to expressive: demonstrate how their products will help the customer achieve personal status and recognition. Prefer sales presentations with product demos and creative graphics rather than factual statements and tech details. Testimonials from well known firms and people appeal to their need for status and recogniton

drivers

high on assertiveness and low on responsiveness -"let's get it done now and lets get it done my way" -learned to work with others only because they have to, not because they enjoy other people -desire to get ahead in companies and career -good decision makers -focus on the present, little concern with past/future -base decisions of facts, take risks, and want to look at several alternatives before making a decision -to influence them: use direct, businesslike, organized presentation with quick action and follow up. Proposals should emphasize the effects of a purchase decision of profits

halo effect

how and what you do in one thing changes a persons perception of other things you do

verbal probing; trial close

how does this sound to you, do you have any questions -allows the salesperson know if they buyer is listening and understanding -may show that prospect is uninterested

impression management

how salespeople can manage the buyer's impression of them

house accounts

large customers or potential customers that are handled exclusively by corporate execs

amiable

low on assertiveness and high on responsiveness -close relationships and cooperation are important to them -achieve objectives by working with people, developing an atmosphere of mutual respect rather than power and authority -make decisions slowly, building a consensus of those involved in the decision -avoid risks and change their opinions reluctantly -salespeople may have difficulty detecting and amiable's true feelings -avoid conflict: say things to please others despite their personal opinions -salespeople need to build personal relationships with amiable -they are interesting in receiving guarantees about a product's performance. Stress the product's benefits in terms of its effects on the satisfaction of employees

analyticals

low on assertiveness and low on responsiveness -like facts, principles and logic -suspicious of power and personal relationships -strive to find a way to carry out a task without resorting to these influence methods -strongly motivated to make the right decision - make them slowly and deliberately -salespeople need to use solid, tangible evidence when making presentations to them. They're influenced by presentations that recognize their technical expertise and emphasize long-term benefits -disregard personal opinions

opening

method designed to get customer's attention and interest quickly and make a smooth transition into next part of presentation -introduction -referral -benefit -product -compliment -question

minimum call objective

minimum they hope to achieve because they realize the call may not go exactly as planned

optimistic call objective

most optimistic outcome that could occur

sales portals

online databases that include many sources of info in one place

feature

quality or characteristic of the product or service

quantifying the solution/value analysis

showing the prospect that the cost of the proposal is offset by added value

introduction opening

simply introduce yourself, simple but may not get much interest

benefit opening

start by telling a product benefit, gets right to business

question opening

start with question, starts 2 way communication

referral opening

tell about who referred you, get permission, don't stretch the truth

higher the risk to the prospect

the more attention the salesperson should pay to quantifying the solution

build rapport when

the prospect perceives you to be like them in some way

benefit

the way in which a specific feature will help a particular buyer and is tied directly to the buying motives of the prospect ->helps the prospect more fully answer whats in it for me

characteristics of a good prospect

-begins with a lead (sometimes called a suspect)- a potential prospect that may or may not have what it takes to be a true prospect -some salespeople mistakenly consider every lead a prospect without first taking the time to see whether these people really provide an opportunity to make a sale ->must qualify the lead --->qualifying: process of determining whether a lead is in fact a prospect --->many leads do not become prospects --->qualifying can occur during several stages: prospecting, collecting recall info, making the approach and discovering needs ->seller mustn't get ahead of herself and start giving a presentation to a lead --->not appropriate until person has been classified as a prospect ->often it is the lead who turns himself or herself into a prospect, along with a creeping commitment that indicates an interest in solving his/her problem -> the ways in which salespeople strategically move people through the progression are important

setting objectives for several calls

-by developing a series of specific objectives for future calls, the salesperson can develop a comprehensive strategy for the prospect or customer -> this approach is especially important in a partnering relationship -important to keep good records, make any necessary adjustments in the long-term call objectives, and then prep for the next call -customer value proposition: written statement usually 1 or 2 sentences that clearly states how purchasing your product or service can help solve the customer's perceived business issue (BI) -->focuses on what in individual manager needs to address and resolve to be able to better contribute to overall company objectives

knowledge about sales situations and customers

-by developing categories of customer types or types of sales situations, salespeople reduce the complexity of selling and free up their mental capacity to think more creatively ->the categories salespeople use can focus on the benefits the customer seeks, the person's role in the buying center, the stage in the buying process or the type of buying situation --->ex. selling to emotional buyers: be enthusiastic and engage in visual storytelling. When selling to rational buyers, stress the financial benefits

cold calling

-calling on totally unfamiliar orgs

one of the best sources of info

-can be the records in your own company, especially if your firm has a sophisticated CRM database -->useful databases include info about any direct inquiries made by the prospect, a sales history for the firm, whether anyone from your company has called on the prospect, and the results of any sales meetings

presenting the proposals

-can be used to convince the home office that the local office needs the product or may be used to compare the product and terms of sale with those of competitors -intended use will influence the design and presentation of the proposal -buying centers often use proposals to compare competitive offerings and the salesperson is asked to present the proposal to the buying committee

con of standard memorized presentation

-can't tailor presentation to needs of the specific customer

creates a sense of value

-careful handling communicates value

satisfied customers

-current and previous customers are contracted for additional business and leads -promoters- loyal customers who keep buying from you and urge their friends to do so also -referral event: gatherings designed to allow current customers to introduce prospects to the salesperson

obtaining pre-call info; the prospects/customers org

-demographics -prospect's customers -prospects competitors -historical buying patterns -current buying situation -people involved in the purchase decision -policies and procedures

questions that help to qualify leads and pinpoint good prospects

-does the lead have a want or need that the purchase of my products can satisfy? -does the lead have the ability to pay? -does the lead have the authority to buy? -can the lead be approached favorably? -is the lead eligible to buy?

categories of social styles

-drivers -expressives -amiables -analytical

relationships

-formal reporting relationships -important reference groups and group norms -bonds that the prospect has already formed with other sales people

situation questions

-general data gathering questions about background and current facts -goal is to better understand the prospect's current situation

models, samples, and gifts

-get and keep buyer interest

keep buyers attention

-get buyer actively involved in the communication process and doing more than just passively hearing -buyer's personality can affect their attention span- consider the social style and adapt

visual tools

-graphic and charts -models, samples, and gifts -catalogs and brochures -photos, illustrations, ads, and maps -testimonials and test results -using media to display visuals

catalogs and brochures

-help communicate info to buyers effectively

graphic and charts

-help illustrate relationships and clearly communicate large amounts of info

multiple call objective has many benefits

-help take away the salesperson's fear of failure because most salespeople can achieve at least their stated minimum objective -tend to be self correcting

people involved in the purchase decision

-how they fit into the formal and informal org structure, their roles in this decision, who is most influential, any influential adversaries (carry great influence but are opposed to us), current props the org. faces, stage in the buying cycle

writing proposals

-included an executive summary- one or two page summary that provides the total cost minutes the total savings, a brief description of the problem to be solved and a brief description of the proposed solution -summary should satisfy the concerns of an executive who is too busy to read the entire proposal -proposal also includes a description of the current situation in relation to the proposed solution and a budget

4 common BI's

-increase rev, market share, shareholder value -increase efficiency and productivity -manage costs -control quality and reliability

how to create knowledge

-one source of knowledge would be top salespeople in the company you work for - some firms will collect and share this info with you ->ex. company conducted in-depth interviews with its top performer -->learned about the types of situations these salespeople encountered and what strategies they used in each situation. The company developed role plays for each sales situation and used them when training new salespeople -salespeople also create knowledge by getting feedback from sales managers --performance feedback: did you achieve the goals you set for this call? --diagnostic feedback: lets talk about why you didn't achieve your goals -other sources: internet, sales manuals, newsletters, experts in the firm, sales meetings, plant visits, business and trade publications, customers, competitors

spotters

-pay someone for lead info

obtaining pre-call info; the prospect/customer as an individual

-personal -attitudes -relationships -evaluation of products/services

photos, illustrations, ads and maps

-photos: easy to prep, inexpensive, permit a realistic portrayal of a product and its benefits

Social Style Matrix: A training program for building adaptive selling skills

-popular training program that companies use to help salespeople adapt their comm styles -to be effective, salespeople need to use their knowledge about products and customers to adapt both the content of their sales presentations-the benefits they emphasize to customers and the needs they attempt to satisfy-sand the style they use to communicate with customers

using media to display visuals

-portfolio: collections of visual aids -digital collateral management systems- archive, catalog, and retrieve digital media and text -collateral: collection of docs that are designed to get sales

outlined presentation

-prearranged presentation that usually includes a standard intro, standard answers to common objectives raised by customers, and a standard method for getting the customer to place an order -can be effective because it is well organized -more informal and natural than the standard mem. pres. and provides more opportunity for the customer to participate in the sales interaction -permits some flexibility in the approach used to present the key points

setting more than one call objective

-primary call objective -minimum call objective -optimistic call objective

evaluation of product/salespeople

-product attributes that are important -product eval process

need to payoff questions

-questions about the usefulness of solving a problem -solution centered -if the prospect responds negatively to need payoff question, the salesperson has not identified a problem serious enough for the prospect to take action->ask additional questions

implication questions

-questions that logically follow one or more problem questions and are designed to help the prospect recognize the true ramifications of the problem -can't be asked until some problem area has been identified

RFP process

-request for proposal (RFP) request for quote (RFQ) -request for bid (RFB) -should contain the customers specs for the desired product, including delivery schedules

opportunity cost

-return a buyer would have earned from a different use of the same investment capital -opportunity lost

retrieving knowledge from the knowledge management system

-salespeople have CRM systems to support their salespeople-use programs like NetSuite- to store and retrieve critical knowledge about accounts, products, and competitors -use this knowledge when interacting with customers to develop sales strategies and purchase recommendations -studies have shown that using a CRM system has a positive impact on being adaptive while selling -important for salespeople to be able to retrieve brochures and other business collateral from the knowledge management system -ability to tap the knowledge of in house experts=genius -firms are experimenting with tagging-including keywords with a person's name in company documents and on internal web pages. keywords indicate the areas of expertise for which that person can contacted ->goal is to make it easier for salespeople to connect to experts in their own firms for ideas and assistance

product and company knowledge

-salespeople need to have a lot of info about their products, services, and company -purchasing agents rate product knowledge as one of the most important attributes of good salespeople -effective salespeople need to know how products are made, what services are provided with the products, how the products relate to other products and how the products can satisfy customers' needs -also need to know about their competitors products as well as their own so they can compare them for the customers

endless chain

-salesperson attempts to secure at least 2 add lead from each person they interview -works best with satisfied customers and partners but can also be used when they don't buy

center of influence

-salesperson cultivates well-known, influential people in the territory who are willing to supply lead info -buying community:small, informal group of people in similar positions, often from several companies, who communicate regularly, socially and professionally

networking

-salesperson uses personal relationships with those who are connected and cooperative to secure leads

how and where to obtain prospects: most common lead-generating methods

-satisfied customers -endless chain -networking -center of influence -social media -other internet uses -ads, direct mail, catalogs, and publicity -shows, fairs, mech markets -webinars and seminars -lists and directories -data mining and CRM systems -cold calling -spotters -telemarketing -sales letters -other sources

social styles and sales presentations

-self assessments can be misleading because we usually do not see ourselves the same way others see us -driver salespeople are efficient, determined and decisive but customers may find them pushy and dominating -expressives have enthusiasm, dramatic flair and creativity but can also seem opinionated, undisciplined and unstable -analyticals are orderly, serious and thorough, but customers may view them as cold, calculating and stuffy -amiables are dependable, supportive and personable but also may be perceived as undisciplined and inflexible