Mark 3337 Professional Selling Exam 2 review

Customer Strategy Model

Basic Needs Group Influences ----> Formulation of customer perceptions and buying motives. ---> Emotional and/or rational buying motives (NEEDS)--> ---> Product and/or patronage buying motives (NEEDS)--> BUYING DECISIONS

The difference between Consumer vs. Organizational Buyers

CONSUMER BUYERS -Purchases for individual or household consumption -Decisions usually made by individuals -Purchases often made based on brand reputation or personal recommendations with little or no product expertise -Purchases based primarily on emotional responses to product or promotions -Individual purchasers may make quick decisions -Products: consumer goods and services for individual use. ORGANIZATIONAL BUYERS -purchases made for some purpose other than personal consumption -decisions frequently made by several people -purchases made according to precise technical specifications based on product expertise -purchases based on primarily rational criteria -purchasers may engage in lengthy decision process -Products: often complex; classified based on how organizational customers use them

Ch.6 guest speaker

Joel Powell Current job: DXP enterprise-SALES Key points: Benefits of being unique and setting yourself apart from others.

Positioning and Differentiation. Ex.

Positioning Walmart-low prices, one stop shop, Mcdonalds Target-Quality, clean, Starbucks Coke-Universal happiness, Diverse ppl, Athletes Pepsi-Uniquely refreshing, Superbowl, Celebs Differentiation Walmart-Save $. Live Better (low cost, convenient) Target- Expect more pay less, luxury brands (Quality and Service) Coke-Taste the feeling Pepsi- Individual, make it your own

Boiler Room Video - Telemarkeing

Product placement- Coke -Telemarketing attempt

Differentiation

Refers to your ability to separate yourself, your product, and/or your company from that of your competition. -It is the key to building and maintaining a competitive advantage

Selling New Vs. Mature Products

Selling new products requires successfully providing new insights to add value, while selling mature products requires positioning product and company superiority over competition. o Nature and extent of each stage in product life cycle determined by: Product's perceived advantage over available substitutes Product's benefits and importance of needs met by product Full spectrum of competitive activity Changes in technology, fashion, and/or demographics

Quantifying the solution

The process of determining whether or not the proposal adds value

Product selling model

Today's product (meets and exceeds expectations) -Better quality -Larger selection -New-product improvements Today's salesperson (acts as a partner) -More courteous and trustworthy -More knowledgeable -More understanding of customers -Provides service after the sale Today's Company (acts as a team to provide) - Delivery and installation -Orientation and training -Quick response times -Credit options -Customer service The three act together so that the salesperson can configure value-added solutions that meet and potentially exceed individual customer's needs.

Cost Benefit Analysis

You can quantify the solution by conducting a cost benefit analysis to determine cost of the purchase and savings the buyer can anticipate from the investment.

Product Strategy

a well-conceived plan that emphasizes becoming a product expert, selling specific benefits, and configuring value-added solutions.

Balanced funnel

enables salespeople to know how many prospects and how much revenue are needed at each stage in the sales process to meet sales projections and quotas.

Positioning

involves those decisions and activities intended to create and maintain a certain concept of the product in the customer's mind. -It requires developing a sales and marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to the competition.

Customer Strategy

o A carefully conceived plan that results in maximum customer responsiveness. o One major dimension of this strategy is to achieve a better understanding of the customer's buying needs and motives.

Prospecting and Sales Forecast Plans

o Collect sales data and organize into Customer Relationship Management (CRM) Systems, also the salesperson should have sales intelligence info and manage the account analysis. -Sales mangers and sales people often conduct account analysis to estimate the sales potential for each prospect. -The portfolio model and the sales process model are two popular models salespeople use for performing account analysis and deciding how much time and effort, and what sale strategies, to use with contacts in their database.

Why the approach is important

o Diagnosing WHY they want to purchase/change/charge rather than WHAT you THINK they need is key to success

Features and benefits- Bridge Statements

o Feature = Data, facts, or characteristics of product or service o Benefit = Whatever provides the customer with an advantage or gain "What this means to you' General benefits Specific benefits o Adding Value: Feature/Benefit Strategy Successful sales presentations translate product features into benefits meet specific needs Only when a product feature is converted into a buyer benefit does it make an impact Adding Value: Feature/Benefit Strategy Distinguish between features and benefits Use bridge statements • Statements that connect features to benefits Identify features and benefits Avoid information overload bridge statements- is a traditional phrase that connects a statement of features with a statement of benefits.

Total product concept

o Generic product: basic product you are selling, describes product category (such as hotels, MP3 players, or insurance) Example: High Education at UH o Expected product: everything that meets the customer's minimal expectations beyond generic product Example: A degree, parking, study places, class room o Value-added product: salesperson offers customers more than they expect Example: 5th floor room is made for studying only o Potential product: what remains to be done, what is possible, anticipating customers' future needs Example: Tier1: graduating core rate Athletics: be a national school

Ways to Collect and organize prospect information

o In addition to collecting sales data, salesperson should have sales intelligence information o Sales intelligence goes beyond data, gives salespersons access to: Access to insights into prospect's marketplace Their firm Their competitors Even about prospect themselves o Managing the prospect database includes account analysis o Two popular methods salespersons use for performing account analysis include Portfolio model Sales process model

Steps in the buying process- how the selling process relates to it

o Need awareness Salespeople can create value by determining problems and identifying solutions o Evaluation of solutions Salespeople can create value by providing information that will help achieve objectives o Resolution of problems Buyers often need help overcoming obstacles that prevent them from moving to purchase stage o Purchase Salespeople create value by arranging financing or supervising delivery and installation o Implementation Value creation involves timely delivery, superior installation, accurate invoicing, or follow-up contacts by the salesperson

Price strategy

o Pricing decisions must be made at each stage of the life cycle o Setting price can be a complex process o First step is to determine pricing objectives: -Some firms set prices to maximize profits -Others set a market share objective o Pricing strategies reflect a product's position in the marketplace

Sources of product information

o Product literature, catalogs, web-based sources o Plant tours o Internal sales and sales support team o Customers o The product itself o Trade and technical publications

Prospect Base

o Prospecting: identifying potential customers o Prospect: potential customer that meets the qualification criteria established by your company o Prospect base: made up of current customers and potential customers

Qualifying Prospects

o Qualifying is the process of identifying prospects that appear to have a need for your product and should be contacted. o The qualifying process is also the first opportunity to consider what the needs of the buyer might be, and how those needs match with the product characteristics being sold. o Basic questions: Does the prospect have a need my product? Does the prospect have the authority to buy my product? Does the prospect have the financial resources to buy my product? Does the prospect have the willingness to buy my product?

The four kinds of questions

o SPIN® Selling Technique o S = Situation Questions- general data-gathering questions basic info o P = Problem Questions- help assess the needs or problems of client o I = Implication Questions- see HOW your business, service, product is the solution to their need o N = Need Payoff Questions- gain commitment to move the selling process forward

Girard's Ferris Wheel- how to prospect

o The "Ferris wheel" concept to illustrate the relationship between prospecting and loss of customers due to the attrition.4 As people get off the Ferris wheel, the operator fills their seats one at a time, moves the wheel a little, and continues this process until all the original riders have left the wheel and new ones come aboard (Figure 9.1). In reality, of course, established customers do not come and go this fast. With the passing of time, however, many customers must be replaced.

Competition- understanding it and knowing how to address it.

o Understanding Acquiring knowledge of the competition important step Knowing strengths and weaknesses of competing products allows you to emphasize your benefits Prospects do raise questions about competition. Be prepared to answer o Knowing how to address it Avoid referring to the competition during sales presentations Never discuss the competition unless you have your facts straight Never criticize the competition Be prepared to add value

Sales Funnel Model

o classifies prospects on where they are in sales-6 step o -prospect, qualified, needs analysis, presentation, negotiations, could/service o -multiple total sale by likelihood of sale, and predictable sales over time o -balanced funnel- to see how much sales revenue is needed at each stage to meet sales quotas and projections **SEE FIGURE 9.7 PG. 190**

Maslow's Needs- how it relates to sales

• Self-actualization: need for mastery, self-fulfillment • Esteem: desire to feel worthy in eyes of others • Social: identification with social groups, friendship • Security: free from danger • Physiological: food, shelter

Seinfeld clip and the new jacket

• To Jerry: it brings the confident and worthy (Maslow's Needs) To George: He judges the jacket as expensive items. He want to know the price because the jacket has effect to his buying motivation ( kind of like emotional reaction)

Portfolio Model for Classifying Prospects

-strategic accounts- attractive accounts which need to be protected form competition (most effort) -problem accounts- attractive if competitive weakness can be overcome (moderate coverage) -hold accounts- if current sales can be maintained with minimal effort(not quite enough money, moderate coverage) -drag accounts- accounts not really worth personal selling ----Based on two major factors 1. Overall account opportunity for the seller 2. The seller's competitive position, that is, the ability to capitalize on these opportunities. **SEE figure 9.6 PG.189**

Buying Motives

A buying motive is an aroused need, drive, or desire that stimulates behavior to satisfy the aroused need Helpful to discover the "dominant buying motive" (DBM) Four basic motive types: 1. Emotional Acts due to passion or sentiment Emotional appeals common If two products are identical, the salesperson who "connects" has the advantage 2. Rational Acts on reason or judgment Relatively free of emotion Salespeople gather, interpret, and disseminate customer-specific information 3. Patronage Buy from a particular firm Past experience positive Relevant elements: superior service, product selection, competent sales staff 4. Product Buyer believes one product is superior to others Preferences for: specific brands, quality, price, design/engineering

The 'need behind the need'- dr. analogy

Ask questions to assess the situation Gain full understanding of what is important Know their issues Probe for understanding Allows for accurate assessment to suggest correct products and solutions

Why setting an agenda is important

Many salespeople find it helpful to spend a moment setting an agenda for the meeting. It helps to establish that the salesperson and customer will be working together to uncover needs and explore solutions.

Group Influences- What are they, how do they relate to sale Buying Motives

Role influences: - Expectations associated with position Reference group influences: - Categories of people you see yourself belonging to Social class influences: - Group with similar values, interests, lifestyles Cultural influences: - Group with common language, environment, also subcultures

The purpose of asking the questions

SPIN: Situation Questions o These are general data-gathering questions designed to help you find out some basic information o Prospects quickly become bored if they hear too many of them SPIN: Problem Questions o These are meant to help assess the needs or problems your client/prospect might have o They provide the necessary answers to how you can be the solution SPIN: Implication Questions o Implicating the need is essential for the prospect to see HOW your business, service, product is the solution to their need o These questions take the NEED further and have the prospect THINK about the ramifications of the situation o Can only be conducted after an actual need is identified o BLOWS UP the pain or gain associated with CHANGE o They help the buyer realize the costs of doing nothing outweigh the cost of the solution SPIN: Need Payoff Questions o Questions that gain commitment to move the selling process forward o Summarize the needs agreed upon by the client and ask for commitment to work together towards solution o If the buyer responds negatively to a need payoff question, the salesperson has not identified a serious need.

How do you provide value to customer's through SPIN

Strategic Sales Method • Uncover and assess the needs of a customer to understand fundamental issues Digs deeper than most sales processes to have prospect consider the ramifications of decisions: • Benefits of buying • Losses of doing nothing Goal - KNOW the prospect's story and what they want • Utilize basic Journalism technique • 5 W's and How Engages the prospect in understanding their needs • Short-term • Long-term • Objectives of organization Why setting an agenda is important Many salespeople find it helpful to spend a moment setting an agenda for the meeting. It helps to establish that the salesperson and customer will be working together to uncover needs and explore solutions.

Product positioning options

-Position as new or mature -Position based on price -Position based on value-added o Applies to new and existing products o May be necessary to reposition products several times o Salespeople have an important and expanding role in differentiating products o Direct and personalized form of communication must be used o Mass advertising often fails to position a complex product o Position new versus established products o Position with price strategies o Position with value added

Tommy Boy video clip

-Relate to Features and Benefit Feature: he was talking technique - it can't stand alone Benefit: How they stop the car, he focused on competition - can't stand alone -Benefit and Feature always go together.

Product configuration software

-The product selection process is often referred to as this. -Develops customized product solutions quickly and accurately -Incorporates customer selection criteria -Identifies options, pricing, delivery schedules -Can integrate with Customer Relationship Management applications.

Value propositions - how to create it

-is the set of benefits and values the salesperson configures to meet and exceed customers' specific needs. -Creating a value proposition is the set of benefits and values the company promises to deliver to customers to satisfy their needs. -What the product offers you! -A well-informed customer will usually choose the product that offers the most value.

Sales Process Model and 6 step process

-is the total set of accounts being pursued at any given time. SIX STEP PROCESS 1. Prospect 2. Qualified 3.Needs Analysis 4. Presentation 5. Negotiations 6. Closed/Service

Consumer buyers

-refers to the buying behavior of individuals and households who buy goods and services for personal consumption

Organizational Buyers

-refers to the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.

Parts to becoming a product expert

1. Product development and quality improvement process 2. Performance data and specifications 3. Maintenance and service contracts 4. Price and delivery