MKT 313 Exam #2

Making sales appointments by telephone (PISSC)

-Plan what you will say -Politely identify yourself and company -State purpose of call and explain the benefit of meeting -Show respect for prospects time -Confirm appointment with follow up

Elevator presentations

30 second message that summarizes you, your company, and your product line

Direct denial

Involves refuting the opinion or believe of a prospect

Specific survey questions

"How do you feel about installing another server to your system?"

Closing should not be the viewed as the strategy to win at the expense of the customer, the proper attitude should be:

"If this is the best solution for the customer, I should help them make the correct decision" followed by

General Survey Questions

"Tell me about the new challenges you are facing in the area of data storage"

Importance of servicing the sale

-Customers will share positive word-of-mouth -People buy expectations, not products -Expectations increase after the sale

Characteristics of effective presentations

-Customized to customer needs -Use an appropriate amount of detail -Cover one idea at a time -Use proof devices to demonstrate buyer needs: enhances credibility -Appeal to as many senses as possible -Balance telling, showing, and involvement -Develop creative presentations

Qualifying questions (NAFW)

-Does the prospect or account..... 1. Have a need for my product? 2. Have the authority to buy my product? 3. Have the financial resources to buy my product? 4. Have the willingness to buy my product? NAFW =need, authority, financial resources, willingness

Guidelines for closing the sale

-Focus on dominant buying motives -Achieve incremental commitments particularly for situations involving long selling cycles -Negotiate through tough points before attempting to close -Avoid surprises at close -Display high-degree of self-confidence -Ask for the order more than once

Practices to learn active listening

-Focus on full attention -Paraphrase customer's meaning -Take notes

How to service the sale

-Follow through on promises -Follow up to ensure customer satisfaction -Expansion selling

Expansion selling

-Full-line selling recommend related products to the main item sold to the customer -Cross-selling sell products that are not directly related to the product sold -Upsellling Sell better quality products

Negotiation steps

-Gather information before -Decide team versus individual negotiations -Understand the value of what you are offering -Prepare an agenda -Determine goals and financial objectives -Review adaptive selling styles -Prepare a negotiations worksheet

What if the customer is unhappy?

-Give customer every chance to disclose feelings -It does not matter if the complaint is real or perceived -Do not alibi and blame others in the company -Politely share your point of view for the cause of the problem -Decide what action must be taken to remedy the problem

Sales intelligence

-Goes beyond sales data -Insight about marketplace -Prospect firm -Competitors Important bc salespeople need a full understanding of the context in which their prospects make buying decisions

When closing review value propositions from customer perspective by:

-Have you effectively summarized the mix of key benefits? -Will your proposal provide a solution that solves the customers problem? -Is your proposal strong enough to win over a customer experiencing buying anxieties?

Feel-Felt-Found

-I understand how you feel -Many of my customers have felt the same way -When they started using this software, they found it quite easy to master Helps manage buyer concerns

Guidelines for group sales presentations (4 criteria)

-Identify titles and roles of those who will attend -Check out meeting room in advance -Be sure presentation is characterized by clarity and implicity -Anticipate the diversity of questions

Value of consultative selling for salespeople

-Increased customer satisfaction -More sales closed -Fewer order consultations -Fewer returns -Increased repeat business -Increased referrals

Causes of buyer remorse

-Loss of options -Fear of making a mistake -Social or peer pressures

Post sale services that ensure successive sales

-Make credit arrangements -Schedule deliveries -Be present during delivery -Monitor installation -Offer training on using and caring for product -Provide price change information

When the buyer says no

-Make sure the deal really is dead -Review the chain of events -Interview the client to find out what went wrong

Key moments for customers (3 M's)

-Moment of truth Customers expectations were met -Moment of misery Customers expectations were not met, feel sense of disappointment -Moment of magic Customer received more than expected, going the extra mile and providing value added service

Follow up methods

-Personal visit -Telephone call -E-mail message -Letter or card -Call report

Overcoming buyer concerns

-Questions -Superior benefit -Demonstration -Trial offer -Third party testimony -Postpone method

Who affects partnership building?

-Receptionist -Technical personnel -Stock clerks or receiving clerks -Management personnel

Types of buyer concerns (NPSTP)

-Related to need for the product -About the product or service -Related to source -Related to time -Related to price

SPIN Selling

-Situation questions -Problem questions -Implication questions -Need payoff questions

Need discovery questions (SPCN)

-Survey questions reveal customer problems -Probing questions reveal customer pain -Confirmation questions reveal mutual understanding -Need Satisfaction questions reveal pleasure

Quantifying the solution

-The process of determining whether or not a sales proposal adds value -May use a simple cost-benefit analysis -May use estimates of return on investment, calculated as net profits as a percentage of the original investment --ROI=Net profits/Investment*100 -Quantify why the solution they are selling is a good decision for the prospect

Conducting the negotiations

-Understand the problem -Create alternative solutions that add value -Review acknowledged points of agreement -Do not make concessions too quickly -Remember most negotiations will conclude in final 20% of allowed time -Know when to walk away

Effective question strategies

-Use effective questions that gather information about customer needs -Use open and closed questions to guide the direction -Use questioning strategy to facilitate an open exchange of information

Managing the loyalty objection

-Work harder to identify problems your company can solve -Point out superior benefits of your product and company -work on recruiting internal champions to build support for your message -Try to stay visible and connected

Service behaviors

-diligence -Information communication -Inducements -Empathy -Sportsmanship

6 step presentation plan

1. Approach 2. Needs discovery 3. Presentation 4. Negotiation 5. Close 6. Servicing the sale

Objectives for the approach (RCT)

1. Build rapport 2. Capture full attention 3. Transition to next stage

How to improve the quality of prospecting or "ferris wheel"

1. Increase the number of people or accounts who board the ferris wheel-- New prospects=more sales opportunities 2. Improve the quality of the prospects who board the ferris wheel--Establish quality standards to ensure steady supply of prospects with high-profit potential 3. Shorten the sales cycle by quickly determining which of the new prospects are qualified prospects--Qualified meaning need, authority to buy, ability to pay, and authority to purchase the product

How to identify good referrals

1. Meet as many people as you can (network) use your social network 2. When you meet someone, tell them what you do 3. Do not do business while networking 4. Offer your business card- useful when the contact attempts to tell others about your product or service 5. Edit your contacts and follow up-- separate the productive from non productive contacts. Send a short message to productive contacts with business information that increases visibility

Consultative sales model

1. Needs discovery (emphasis on questions) 2. Selection of solution (a pivotal point) 3. Need satisfaction through informing, persuading, and/or reminding (emphasis on statements) 4. Servicing the sale (build repeat business)

Causes of customer attrition

1. One time need 2. Movement outside of territory 3. Customer business failure or merger 4. buyer employee changed positions 5. Competition gained customer

Ways to identify and develop potential customers

1. Prospecting 2. Account development 3. Business development All mean the same thing

Presentation Strategy (EDR)

A well conceived plan that includes: 1. Establishing objectives for the sales presentation 2. Developing the presale presentation plan 3. Renewing one's commitment to providing outstanding customer service EDR= Establishing objectives, developing presale, renewing one's commitment

Closing clue

An indication, either verbal or nonverbal, that the prospect is preparing to make a buying decision

Who is a "prospect"

An individual or business who meets the qualification criteria established by you or your company

***Dealing with sales call reluctance

Be optimistic about outcomes Practice approach before contact Recognize that it is normal to be anxious Develop a deep commitment to sales goals

Need discovery

Begins with pre-call preparation when the salesperson is acquiring background information Requires effective use of questions Need discovery, ask appropriate questions, listen and acknowledge customer response, establish buying motives

BATNA

Best alternative to negotiated agreement -What alternatives will be acceptable to you if your negotiation does not succeed -What alternatives will be acceptable to your customer if their negotiation doesnt succeed

Nonverbal closing clues

Body movement Facial expression Tone of voice

Canned presentations vs. consultative presentations

Canned: Memorized or scripted presentation built around a standard set of steps and presented as a repetitive speech given to all customers interested in the item. Consultative: Customized, personalized presentation built around specific needs of each customer BEST

If you were starting a prospect list, how could you use your own CENTERS OF INFLUENCE to begin?

Centers of influence in the form of friends and family can be a good place to start, regardless of what you are selling

Probing questions

Clarify situation Use when you need more information

CRM Sales Funnel

Classify prospects based on where they are in the sales process Total set of accounts being pursued at any given time 6 step step process from top of funnel to bottom: 1. prospect 2. qualified 3. needs analysis 4. presentation 5. negotiations 6. closed service All sections can report all supporting data on where a prospect stands in the sales process Implications include "if and when" the sale is able to be closed

How to view closing a sale

Closing should be thought of as the beginning of a long term partnership

Survey questions

Discover basic facts Use at the beginning of the sale

Overcoming price concerns

Do: -Clarify price concerns with questions -Add value with a cluster of satisfactions -Point out the relationship between price and quality -Explain and demonstrate the difference between price and cost Do not: -Make the price the focal point of the sales presentation -Apologize for the price

Persuasive vocabulary

Emotional links are the connectors between your messages and the internal emotions of the prospect

Informative presentation strategy

Emphasizes factual information often taken from technical reports, company-prepared sales literature, or written testimonials from people who have used the product Commonly used to introduce new products, highly complex products, and services of a technical nature

Account analysis

Estimates the sales potential and value for each prospect in their list

***Sales call reluctance

Fear of taking risks Fear of group presentations Lack of self confidence Fear of rejection Sales call reluctance includes the thoughts, feelings, and behavioral patterns that conspire to limit what a salesperson is able to accomplish. It is an internal barrier to sales success. Sales call reluctance can be caused by several fears.

The Value Iceberg

Illustrates that the prospect may only see the price of the product but not the other forms of value that are a part of the price

Ferris wheel model

Illustrates the relationship between prospecting and the loss of customers due to attrition. As people get off the ferris wheel, the operator fills their seats one at a time and continues the process as original riders leave and new customers get added. Customers are replaced over time

Consultative selling

Involves: -Meeting customer needs by asking strategic question -Listening to customers -Understanding and caring about customers problems -Selecting appropriate solution -Creating sales presentation -Following through after the sale Customer-centric form of selling

Hold accounts

Low account opportunity, strong competitive position -Moderately attractive if current sales can be maintained with a limited commitment of resources -Should be monitored closely to see when opportunities arise, but care needs to be taken to ensure that they dont require too much resource commitment beyond potential Moderate account coverage

Drag Accounts

Low account opportunity, weak competitive position -Limited to no resource commitments required -Could be managed by methods other than personal selling -These accounts can require resource commitment beyond their potential Moderate account coverage

Pipeline management

Managing all the prospects in the salesperson's sales funnel to ensure that sales objectives are being met

Indirect denial

Means to bend a little and acknowledge that prospect is partially corret

Need-Satisfaction questions

Moves sales process forward Use when shifting to solution

Creating value

Need discovery and product selection activities are the first step Strategic planning for the need discovery and product selection: 1. review the consultative sales presentation model 2. Review existing prospect information 3. Preplan questions 4. Review product options Actions taken during the need discovery and product selection process: 1. Re-establish relationship if appropriate 2. Ask appropriate questions 3. Record customer response 4. Acknowledge and summarize customer needs 5. Select and recommend appropriate product solutions

Time used during needs discovery, selection of product, and needs satisfaction

Needs discovery: 80% prospect, 20% salesperson Selection of the product: Fair balance Need satisfaction: 80% sales person, 20% prospect

Gerhard Gschwandtner said that the main purpose of a salesperson is what?

Not to make sales, but to create customers

How much time to spend on needs discovery

Pace, scope, depth, and time allocated to inquiry depend on: 1. Product sophistication 2. Selling price 3. Customer's knowledge 4. Product applications 5. Time available

Pre Approach

Part one of preparing for the sales presentation Reviewing objectives Review model Review presentation plan Prepare approach worksheet

Approach

Part two of preparing for sales presentation Making favorable first impression Securing prospects attention Transitioning to need identification

Planning for negotiations

Planning for negotiations of buyer concerns: 1. Anticipate buyer concerns 2. Review common types of resistance 3. Review methods of negotiating buyer resistance 4. Prepare a negotiation worksheet Activities during negotiations: 1. Recognize and understand verbal and nonverbal cues 2. Validate the problem 3. Find some point of agreement 4. Do not allow anger to surface 5. Answer customers concern 6. Be alert for closing cues

Qualifying prospects

Qualifying is the process of identifying prospects who appear to have a need for your product and should be contacted Allows us to ensure that we are spending time with prospects with the greatest likelihood of purchasing

Verbal closing clues

Questions Recognitions Requirements

When the buyer says yes

Reassure the customer to avoid buyers remorse

Planning the approach for sales presentations (RPC)

Review: Relationship strategy Product strategy Customer strategy

Cold Calling

Sales people select a group of people they believe will make good prospects and then call them

Three dimensions of product selection (Part two of consultative sales process to select needs solution)

Selection of solution 2. Match the benefits with the buying motives 3. Configure solution 4. Make appropriate recommendation

Presentation planning

Strategic planning for the presentation: 1. Review the prospect information 2. Review buying motives 3. Review product selection 4. Select need satisfaction presentation strategy 5. Develop consultative presentation plan that adds value 6. Rehearse presentation Actions taken during presentation: 1. Re-establish relationship 2. Confirm buying conditions 3. Present specific benefits 4. Conduct appropriate demonstrations 5. Confirm customer understanding 6. Negotiate concerns, close and service sale Sets stage for effective consultative presentation that adds value to the sale

Strategic accounts

Strong competitive position, high account opportunity -Attractive and necessary -Need to be protective from competition -Must remain serviced at all times -Most resource intensive accounts Intensive account coverage

Active listening

The process of sending back to the prospect what you as a listener think the person meant, both in terms of content and feelings Requires intense involvement as you concentrate on what you are hearing Non verbal messages and feedback to the prospect regarding what you think they meant

CRM Account Report (customer relationship management)

Used to help salespeople organize their prospecting information Sales data is the information seen most in CRM systems Information in the report includes notes about previous sales calls Salespeople can access this information to be prepared for meetings

Reminder presentation approach

Used to maintain market share Used heavily by route salespeople

The Portfolio Model

Uses account opportunity (forecasted sales) and competitive position (the ability to capitalize on the opportunity) to classify how much sales effort should be made on the individual accounts in the prospect 4 categories: Strategic accounts, problem accounts, hold accounts, drag accounts Prospects in the strategic category (high sales forecast and strong position for closing the sale) receive the largest amount of sales effort Prospects in drag category receive least sales effort

Confirmation questions

Verify accuracy Use after information exchange

Reservation value

Walk away point Lowest offer a party would be willing to accept

Problem accounts

Weak competitive competition, High account opportunity -Attractive buy if competitive weakness can be overcome -Require careful planing and execution -Deserve some effort because of potential Moderate account coverage

Unbundling

When a buyer provides a budget limitation the best strategy is to reduce the price by eliminating some items "unbundling"

Negotiation

Working to reach an agreement that is mutually satisfactory to both buyer and seller

Social network

Your personal set of direct and indirect contacts

ZOPA

Zone of possible agreement -What is the space between the seller's walk-away point and the buyers highest willingness to pay

Networking model

three types of network salespeople should grow and nurture 1. Within your organization 2. Within your industry 3. Outside of your industry

Adapt to customer's communication style

true

Persuasive presentation strategy

used to influence the prospects beliefs, attitudes, or behavior and to encourage buyer action Include a subtle transition stage where the dialogue shifts from an intellectual emphasis to an emotional appeal