selling exam 2 master copy

Performance

How long will your product last? What kind of wear and stress does your product tolerate? How easy is it to upgrade? How much training is necessary for an employee to operate or use? Can it be repaired? sales knowledge in this case means knowing who to call on and when to ask for back up.

Evaluation of alternatives:

determinant attributes come into play; price, reputation, service capabilities and design components

What is the best approach to voicemail?

dont give too much info but give them a compelling reason to call back. give number twice and do not leave them on monday morning or friday afternoon

What are effective means of interacting with and utilizing gatekeepers?

give them respect -adjust your attitude -honesty is the best policy -sell it to gatekeeper-question -be thoughtful (wish them hbd) -be patient

Group Prospecting

he idea is to bring together a number of people, from 8 to 20 or more. You can meet virtually anywhere from homes to offices. The purpose is to inform prospects about your product/service. During group sessions salespeople have an opportunity to find and hone in on people's pain points

At a basic description level - what is SAVO in terms of how it is useful to salespeople?

help sales people harvest info that is good about their company

Distribution

important element of distribution concerns pricing policies. Such policies include dealers' costs, availability of quantity discounts, applicable credit terms, and whether the company will consider negotiating special deals.

Decision Maker

in a purchase it is the consumer, in an organization it is made by a buying center, (decision making unit of all individuals who play a role in formulating the purchase recommendation.

The external search

increases the complexity of the process. It may require an extensive information search or a more limited search for alternatives.

Buying Criteria

individual consumers have limited factors to weigh in a decision, business markets often require products that are complex, expensive, and purchased in larger quantities.

Buying Motives

individual consumers often buy based on emotion and later attempt to rationalize their decisions. organizational buyers rational motives are dominant but also take emotional into account as well.

Social media

it's cost effective and efficient. Social media prospecting is about creating context with people so that your social interactions may eventually lead to a sale. Social media is full of clutter so it will take a little effort and some strategizing.

The internal search

makes use of the buyer's previous experiences, learning, and attitudes, and often occurs without conscious effort. Purchasing is often routine or habitual.

Scope of Relationship

organizational buyers prefer to stay with suppliers for longer to reduce the need for frequent negotiation (long term relationships)

Advantage

performance characteristic of the product or what the feature does

Class C

prospects are people whose names you have found in some way, but about whom you have little or no information other than a name. They are leads, not prospects.

What is the appropriate place/value of competition?

Good competition keeps you on your toes, raising the bar for what a business like yours can do. Good competition pushes and stretches the limits of what's possible.

Class A

prospects are those about whom you have adequate information to make a presentation. You know they have the money to buy and the authority to make a decision. Ideally, you also have a referral from someone they respect.

Class B

prospects are those about whom you have adequate information to make the best possible presentation. You may not know enough to be sure they need your product or service. You may not know whether they have the authority to make a decision or whether they can afford to buy. You may not have a referral to help open the door. When one or more of these items is missing, the proper action is research rather than approach.

Problem recognition

recognizing that a problem or need exists and must be satisfied.

Benefit

result the buyer will realize from the product

What is the appropriate place/value of competition?

say something good about them-respect earns respect

Search for alternatives

search for information concerning the alternatives. both internal (previous experiences) and external (adds dynamics require extensive info search)

Sociocultural factors

such as culture, physical environment, and social class, influence the nature and scope of the information search.

Psychological factors

such as the mood of the moment, attitudes, and perception of oneself, combine with sociocultural factors to influence purchase decisions.

What are "digital footprints" and how are they useful to salespeople?

the clicking of a client on your website--you can see how interested the customer is

emotional clarity

understanding there is a diff between economic need(real) and emotional need for this person to be solution to the real need posture

What is the one word secret to making the perfect sales pitch?

"Don't" is that one word. The secret to the perfect sales pitch is to have no pitch.

What items are included on the preapproach information checklist?

- What business is the company in? What are its products and markets? Who are its primary customers? - How big is the company? Where does it rank within its industry? Can this company give me enough business to make this call worthwhile? - Who is the ultimate decision maker in buying my product? - Who else influences the buying decision? - How often does this company buy my type of product or service?

List the various phases of the buying process.

-Problem Recognition (motive awakening)-Search for alternatives-Internal/external search-Evaluation of alternatives-purchase decision-post-purchase evaluation

Specifically how can the various types of social media be used in effective preapproach activity?

-be selective on linkedin -get to the point on twitter -inspire through facebook

What are some better methods mentioned for prospecting over straight cold calling?

-internet -social networking

List/describe the 6 step telephone track.

-introduce yourself and the company -provide a tangible benefit -personalize the call -take pressure off the call -overcome resistance -request an appointment

What are the elements of a good telephone voice?

-pitch -volume -rate -quality -articulation

Describe the aspects of the two factors that ensure salespeople create an ideal situation when setting up the sales meeting?

-timing (when best time to call is) -gaining entry

What four questions must you be able to answer before making a call?

-why am i calling? -what is my proposal -what would make this person grant my request -how does my script sound

What basic information about leads is desirable to have/record?

1. Prospect's full name and nickname (if you know it) 2. Email address and business and home address 3. Direct phone number (cell phone is best) 4. Name of company she or he works for 5. Position in company 6. Family information (spouse, number of children, etc.) 7. Personal information (club memberships, college attended, hobbies) 8. Approximate income (if your product or service is to be sold to the individual rather than to your company) 9. Source of prospect (Did you get his or her name referral or otherwise?)

What 3 mistakes are made in forming first impressions?

1. making it about yourself 2. making a phone call without any information about the person 3. improvising the calls

Current mood

A person's psychological state or the mood of the moment can also influence decisions. On some days, you can easily shrug off a mishap, on some days the situation may boil your blood.

What is the difference between pitching and serving?

A pitch is me-focused and a serve is them-focused.

Referrals

A referral is a name given to you as a lead by a customer, a friend, or even a prospect who did not buy, but felt good about you and your product. It's one of the most powerful techniques available to sales professionals. People trust recommendations from business colleagues, friends, and family 92% of the time and more than all other forms of marketing.

Websites

A website acts as the company's representative, so you want it to reflect your professionalism in terms of design and content quality.

Purchase decision

After evaluating all the alternatives discovered during the search process, the buyer is ready to make a purchase decision—actually, a whole set of decisions.

Strategic Calling

All about your state of mind. For most salespeople, it is not meant to be your only source of leads but calling on potential unsuspecting customers can be a supplement to other prospecting efforts. You must be able to communicate with a prospect so that they understand and resonate with what you have to say.

Manufacturing

An understanding of the manufacturing process may help enable you to explain why a price seems high to the prospect is actually quite reasonable, or why delivery takes longer than the buyer expected.

Distinguish between productive/great questions salespeople should ask and unproductive/ineffective questions that should be avoided. What are the main purposes/goals of asking the great questions?

Asking great questions allows you to show them how inadequate their world is without you and your terrific product or service. Great questions lead the other person into a conversation that makes them feel good. Honestly great questions might lead into conversations that only result in making a new friend but that is okay.

Attitude

Attitudes are habits of thought and habitual patterns of response to stimuli and experiences. Because we use them so often, they become automatic to save time that would otherwise be required to think about a situation and make a decision.

What is a CRM? Why have salespeople been reluctant to use them in the past? How can they help salespeople be more efficient and effective?

Customer Relationship Management--gathering all data of the customer to find value for their business

Why is it important to understand what a product's or service's Features, Advantages, and Benefits are and how they connect?

Customer wants to know what it will do for them, not just what it is made of

Who are in your cold, warm, and fuzzy markets, and where will the majority of prospects/customers come from?

Customers from a cold market are those you didn't know and customers form a warm market is those you did know and then most of your customers will come from fuzzy markets which consist of people in between cold and warm, so people you vaguely know: not exactly friends, but not exactly strangers either.

Service superiority

Delivery, Inventory, Credit, Training, Merchandising, Installation, Maintenance

How does effective follow through add value?

Effective follow through adds value in that it connects them to other people and suggests ways they can do business with each other or benefit in some other way from that relationship.

What are the differences between features and benefits?

Features are answers to the question "What?"Benefits are answers to the question "Why?" Features: Data, information, facts, characteristics about product. Benefits: How the feature helps the customer. General and specific benefits.

Why is effective follow through more like farming than fishing?

In farming you prepare the soil, you plant seeds, you water, weed, nurture, and cultivate. In other words, follow through

Distinguish between structural authority/pushing and moral authority/pulling.

In sales, Structural authority/pushing is telling people what you want and moral authority/pulling is finding out what they want.

In what ways does consumer buying behavior resemble and differ from organizational buying behavior?

Individual- buy based on emotion and later attempt to rationalize their decision Organizational- rational motives are dominant, though they often take emotional motives into account as well

When you complement/respect competition what are the key messages you are sending to prospects?

It shows you are confident, successful, and that you are safe.

Current Customers

It would be a mistake not to mention one of salesperson's most powerful and ever-present sources of business - and that is the existing customer base. Acquiring new customers is expensive - five to ten times the cost of retaining an existing one - and the average spending of a repeat customer is a whopping 67% more than that of a new one.

Centers of influence

It's a person who believes in what you are selling, influences others, and is willing to give you names and help qualify them. It can give you far more prospects and is both willing and able to provide new names on a continuing basis.- Also always find a way to show your gratitude by being of service to them

Competition

Learn about your major competitor's product lines; know their credit terms, their prices, their delivery schedules, and their reputations for service. Consumers don't weigh the advantages of buying a product against those of not buying; rather, they are trying to decide which product to buy, yours or the competitions offerings.

Business and Civic Groups

Membership in civic groups can give you opportunities to meet people who are prospects for your product or service. In selecting groups to join, consider the kinds of prospects you need to meet. It is also beneficial to choose organizations to which decision makers belong. Keep an updated file of the organization's members as you meet and learn about them.

From what sources can salespeople obtain preapproach information?

Mergers, Personal Changes, Changing product lines, Advertising plans, Online, TV, and Magazine ads, Sales training

MADDEN test

Money Approachable Desire Decision Maker Eligible Need

Build Networks: how does network building affect impact?

Network building affects impact in that Influence causes your impact to reach out beyond the people you know to touch the lives of those you have never met. The strength and reach of your influence determines how many of those people you'll reach and the quality of that reach.

Networking

Networking refers to the active cooperation between business people to share information about the business climate, specific happenings in the business community, and prospects. It involves the 3 C's:-Connecting-Communicating-Cooperating

Service

Once a product or service is sold, your responsibilities have just began. It is outstanding after-sale service that will cement the relationship and ensure repeat orders and repeat commissions!

Qualify leads

Pay attention to lead qualification. Have a process in place and the resources and skills to qualify those leads. Generating leads is akin to building the Alaskan pipeline. Figure out how to build the pipeline and get the oil flowing.

Fuzzy Influence: All other things being equal, who will people do business with and refer others to?

People will do business with and refer business to those people they know, like, and trust.

People superiority:

Personal knowledge and skill, skill of support, Personnel, Integrity and character, standing in community, flexibility of call, schedule, interpersonal skills, mutual friends, cooperation.

Feature

Physical characteristic

Why is prospecting such a hard thing for people to do?

Prospecting is a hard thing for salespeople because most us want to be liked by other people.

Identify the different types of purchase influences: sociocultural, psychological.

Psychological factors:-perception-current mood-attitudes-self-image Sociocultural factors:-culture-customs-physical environment-social class

What is the most important basis for genuine influence?

Reputation is the most important basis for genuine influence.

Distinguish between how follow-up is addressed in typical sales training versus the meaning of follow up from the Go-Giver perspective.

Sales training usually use the term follow-up, which means continuing or repeating something that has already been done. Go-Givers perspective is completing a process or action and taking it to its fullest conclusion.

Self-image:

Self-image is an individual's unique self-appraisal at a given moment in time. It affects what you perceive as reality and, as a result, how communication takes place. Therefore, in choosing how to communicate, you must consider not only what is true, but also what a person believes is true.

What should be the prime goal of networking and meeting new people?

The prime goal of networking and meeting new people is to meet people and make a few new friends.

What is the Law of 250?

The Law of 250 says that on average, every person has about 250 people in his life who would show up at his wedding or funeral. Joe concluded that if he treated one customer poorly, he had lost not one sale but a potential 250 sales. On the other hand, he reasoned, if he treated that same person well, he had just had a positive influence on 250 people, and not just one. Each individual has a sphere of influence that encompasses an average of 250 people each of whom has his or her own sphere of influence encompassing 250 more people each and so on.

What is the purpose of effective preapproach?

The preapproach is the planning and preparation done prior to actual contact with the prospect. In gathering such information, you learn who to call, why, when, and where. Seemingly insignificant details might be the key to the approach

What is the traditional "three foot rule" and how does that compare to the Go-Giver's "three foot rule"?

The traditional "three foot rule" says that everyone who comes within three feet is fair game to pitch about your product. The Go-Giver's version goes something like this: Anyone within three feet is worth getting to know better.

Add value

The worst thing you can say is something like, "I'm just calling to find out if you've gotten that budget yet." Email case studies or relevant and insightful articles based on research about them and their company. That way, you are not only checking in, you are contributing to their productivity.

Selling has traditionally been conceived as an "art" - identify ways that selling is going beyond "art" to becoming a "science". Specifically, this refers to what ways is selling incorporating collection and analysis of sales data and design of consistent, tested methods?

Their ability lies in their ability to solve problems -problem solving outweighs persuasion

Nurture leads

There will likely be some leads that aren't ready for sales. A nurturing process that includes phone calls, email, social media contract, and direct mail is necessary to keep in touch with those prospects until they're ready to see a salesperson.

Why are emotional clarity, emotional discipline, and posture crucial to success in sales?

These are key to succeed in sales because you cannot control the outcome of what the customer will do, but you can control the actions you take, the words you speak, and especially the thoughts you hold because your thoughts often communicate just as loudly as your words and deeds.

Source superiority

Time established, Competitive standing, Community image, Location, Size, Financial soundness, Policies and practices

Email and Direct Mail

Ultimate success of email and direct mail prospecting depends on the management of your mailing list. The product/service you sell has a great deal to do with what kind of list you use. The goal of the list is to have people/businesses that are partially qualified prospects.

Product superiority

Versatility, Efficiency, Storage, Handling time, Safety, Adaptability, Appearance, Design, Mobility, Packaging, Life expectancy

Culture

a way of looking at life that is handed down from one generation to the next. It is a combination of behavior and responses that we learn through observing the world around us.

emotional discipline

abilty to hold onto that clarity and consistently choose your responses to each sistuation rather than reacting

Product knowledge

begins with the product itself: It's specific features, its benefits, and its acceptance in the marketplace. It includes knowing all available options and how it can be adapted to the particular customer's needs and how it performs under varying conditions. Detailed product knowledge prepares you to answer any question a customer might have and to offer whatever reassurance is necessary in the process that helps the customer reach a decision.

Post-purchase evaluation

buyer evaluates their decision based on their pre purchase expectations and decides if it has been satisfactory.

Perception

we perceive situations according to our own needs, values, expectations, experience, and training; response to the world as that particular person sees it

deciders

who chooses what to buy

Gatekeeper

who controls the flow of info

Buyers

who has authority to buy product

influencers

who provides info of need

users

who will use the product

When you complement/respect competition what are the key messages you are sending to prospects?

you are confident you are successful you are safe

How can social media assist in the qualifying process?

you can reach people you wouldnt be able to prior & gather informal intel through posts

How is creating value the same as and different from making a sale?

you cant make a sale, they do that, what you do is create value

Company

you need to something about the history of the company: Who founded it and when, how the present product line evolved, the company's position in the marketplace, its past and present performance and growth.