MKTG 335 Final Review

Direct close

"Do you feel comfortable moving forward and signing the agreement now?"

Negotiations Close

"Why don't we compromise? You know I am unable to offer you a discount, but I am more than happy to defer billing until the end of the month. Would you be willing to move forward with the agreement using these terms?"

Problem-solution presentation's 6 steps

1) Convincing prospect to allow salesperson to conduct analysis 2) make analysis 3) agreeing on problems and determining buyer wants to solve problem 4) preparing proposal for solution to prospect's needs 5) preparing sales presentation based on analysis and proposal 6) making sales presentation

Multiple-Question Approach (SPIN)

1) Situation - ask about general situation as relates to your product 2) Problem - Ask about specific problems or difficulties prospect perceives relative to your situation question 3) Implication - Ask about implications of prospect's problems or how a problem affects various related operational aspects 4) Need-payoff questions - Ask if prospect has an important, explicit need ("if I could show you how to solve problem...") THE PRODUCT IS NOT MENTIONED IN SPIN

3 steps to handling objections

1. Acknowledge acknowledge customer's pov, don't agree, builds trust eg "I can understand, this is a common concern" 2. Identify Concern ask 1-3 questions if you aren't sure, identify before you handle it 3. Handle objection

Sales Presentation Mix

3 essential steps: Product - fully discuss product FABs Present your marketing plan - how to resell (for reseller), how to use (for end user) Explain your business proposition - what's in it for your customer

Summary of Benefits Close

3 steps: 1. Determine the key product benefits that interest the prospect during the presentation 2. Summarize these benefits 3. Make a proposal (action plan)

customer benefit plan

4 Steps: 1) select FABs for product/service discussion 2) select FABs for marketing plan discussion 3) select FABs for business proposition discussion 4) develop suggested order based on previous steps

When Is It Time to use a Trial Close?

After making a strong selling point in the presentation After the presentation but before the close After answering an objection Immediately before you move to close the sale

sales prospecting funnel

All leads and prospects must be considered and filtered through the MAD process before they become qualified prospects

Importance of the approach in relation to the presentation

An effective approach allows a smooth transition into discussing your product's features, advantages, and benefits

Handling No-Need Objection

Ask permission to ask questions ask questions to identify a problem you could solve (SPIN is great technique) Confirm need

Keys to Improved Selling

Ask questions to gather information and uncover needs Recognize when a customer has a real need and how the benefits of the product or service can satisfy it Establish a balanced dialogue with customers Recognize and handle negative customer attitudes promptly and directly Use a benefit summary and an action plan requiring commitment when closing

Why Choose the Problem-Solution Sales Presentation Method?

Because you: are selling highly complex or technical products are required to make several sales calls to develop a detailed in-depth analysis of prospects needs need a flexible, customized presentation based on findings

Reasons for Using Visual Aids, Demonstration, and Participation:

Capture attention and interest creates two-way communication involves the prospect People receive 87 percent of their information on the outside world through their eyes and only 13 percent through the other four senses

Closing

Closing is the process of helping an organization and stakeholder(s) make a decision that will benefit them closing the sale is the next logical step in the sales process

Essentials of Closing Sales

Communicate: Ensure customer understands Directly link your solution's benefits to the buyer's true needs Tailor your close to each customer Consider the customer's point of view in everything you do Learn that "no" may be an expression of hesitation or concern Learn to recognize buying signals Before you close, ask a trial close After asking for the order — be silent

Common Challenge: Developing a SELL Sequence for the Business Proposition

Example: Buyer need - help increase my firm's profits Explain how the results of the suggested pricing strategy will align to the buyer's business objectives. Discuss the amount of margin and compare it to the average gross margin percent that the customer receives for all products.

FAB

Feature - A physical characteristic of the product or service Advantage - A performance characteristic of the product or service Benefit - How the product or service will provide business value

The Business Proposition and the Close

For some salespeople, the discussion of the business proposition provides an excellent opportunity to close

Elements of a Sales Presentation Mix

Goal: Elements and methods to provide meaningful information to the customer Persuasive Communication Participation Proof Visual Aids Dramatization Demonstration

Visuals and Visual Aids

Goal: provides mental image of product's FABs Visual aids help: increase retention reinforce the message reduce misunderstanding Examples: slides the product charts and graphics letters of testimony

sales lead clubs

Group of salespeople in related but noncompetitive fields to meet twice a month to share leads and prospecting tips

Handling Drawback

Help customer look at the bigger picture Review previously accepted benefits Trial close—see if you were successful minimizing the drawback

How long does the approach take?

It depends. for Karen, can take around 4 months w/ new account

When to handle objections

It is usually best to meet objections as they arise Postponing an objection may cause a negative reaction

Prospecting Process

Lead generation qualifying a lead sales prospecting funnel

Once You Have Satisfactorily Responded to the Objection, What Should You Do Next?

Make a smooth transition back into your presentation ("as we were discussing...") Move to close the sale if you have completed your presentation Move to close again if objection was after a close

3 levels of listening

Marginal listening Evaluative listening Active listening

4 categories of questions

Non-directive (open-ended) Directive (close-ended) Rephrasing Redirect (X)

Handling Skepticism

Offer proof (tangible) Trial Close

Objections

Opposition or resistance to information

lead

Organization with potential to become a customer

Points to remember regarding objections

Plan for objections - structure your presentation to minimize disadvantages of your product anticipate and forestall - discuss objection before prospect raises it handle objections as they arise to avoid negative impression be positive - don't take it personally listen - hear them out

Integrate Proof Statements

Proof statements provide credibility types of proof statements: Past sales history Product or service guarantees Customer testimonials Company results Independent research results

10 Stages in Sales Process

Prospect Preapproach Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close Follow-Up & Service

Why is prospecting important?

Prospecting is the lifeblood of sales: replaces lost customers provides a continual stream of customers and revenue

What is a prospect?

Qualified person or organization that has the potential to buy your good or service a qualified lead

Handling Misunderstanding

Rephrase customer's negative comment to a positive question—confirm need FAB (clear up misunderstanding) Trial close to see cleared up the misunderstanding

SELL Sequence

S: Show feature E: Explain advantage L: Lead into Benefit L: Let customer talk (trial close)

Probability or Rating close

Salesperson assesses buyer's level of comfort/risk with solution(s) Ask buyers to share level of perceived risk regarding entire solution or certain elements of solution Used when product/service is very technical or requires a sizable investment Allows salesperson to understand customer's ongoing concerns

Types of Customer Concerns

Skepticism No-need objections Misunderstanding - unrealized need Drawback - you can't change the situation

SMART call objective

Specific Measurable Achievable Realistic Timed

Most effective closing technique

Summary of benefits close

Common salesperson mistakes resulting in unsuccessful sales calls

Tells instead of sells, doesn't ask enough questions Over-controls the call, asks too many closed-end questions Doesn't respond to customer needs with benefits Doesn't recognize needs, gives benefits prematurely Doesn't recognize or handle negative attitudes effectively Makes weak closing statements, doesn't recognize when or how to close

No-Need Objection

The customer does not perceive a need for your product or service Satisfied with your competitor, or an internally developed product/service

Skepticism

The customer doubts something about your product or service

Misunderstanding

The customer misunderstands something about your product or service, or your organization (negative statement)

sales call objective

The main purpose of a salesperson's contact with a prospect or customer

Approach

Time from when salesperson first sees buyer to beginning of discussion of product in most situations, takes many sales calls, not just one Extremely important - many consider most important step If unsuccessful, may not have opportunity to present

Redirect Question (careful!)

Used to redirect prospect to selling points that both parties agree on eg "You would agree that manufacturers must use the most cost-efficient equipment to stay competitive these days, wouldn't you?" can be dangerous, don't want to put words in their mouth

What Does the Trial Close Allow You to Determine?

Whether the prospect likes your product's FAB - the strong selling point whether any objections remain whether you have successfully answered the objection whether the prospect is ready for you to close the sale

How Many Times Should You Close?

You must be able to use multiple closes (but depends on the situation and customer) Experienced salespeople understand: first "no" from prospect isn't necessarily absolute refusal to buy Often will need to use three closes within a conversation

Demonstration

a successful demonstration: lets prospect do something simple has the prospect answer questions throughout the demonstration

Every sales call must have..

an OPENING and a CLOSE

When do objections occur?

anytime Skepticism likely to occur after SELL sequence No-need likely towards beginning Drawback likely towards end

Trial Close

asks for an opinion, provides the seller feedback eg "How does that sound to you?", "Would that work for you?", "What are your thoughts on that?"

Core principles of professional selling

balance two primary duties: 1) unselfishly serve the buyer or buying organization 2) professionally represent the selling organization

Always Have a Sales Call Objective

before call starts! sales call should move the sales process forward set a SMART call objective

Presentation Core Principles

begin presentation with end in mind seek first to understand, then to be understood Knowing you can help solve problems provides great caring, confidence, and excitement in your mind, body and speech don't give in to the temptation to exaggerate

Opening the Sales Call (Approach)

build rapport and credibility why did you ask for this meeting? what is your agenda? what is the value of THIS conversation to the stakeholder? trial close (confirm agenda is okay) transition to YOU asking questions to better understand the account's situation

The Presentation

develop a customer benefit plan

lead generation

developing a list of potential customers

The Group Presentation

either you or your team presents proposal to group of decision-makers flexibility depends on size: the larger the group, the more structured your presentation can structure presentation and provide a question-and-answer period at end or during presentation

Core Principles: Prospecting

first step in the selling process people buy from those they know and trust focus on helping, not selling

Group presentation ideas

give quality assurances and qualifications at beginning cater to groups behavioral style get people involved the proposal no prices summarize benefits

Business Proposition of Sales Presentation

helps the end-user understand "what is in it for them" by integrating the solution into their company List price, ROI, Payback period, Discounts, value analysis, etc.

Why use question approach techniques?

helps you determine the stakeholder's business needs to help better tailor the presentation

Marketing Plan Segment of Sales Presentation

how you will help them integrate the solution into their company

High performing salespeople believe

it's important to genuinely care about the business success of your accounts and the stakeholders within those accounts

When You Do Not Make the Sale

know that you cannot always sell everyone don't take it personally be courteous and cheerful leave the door open

Knowledge vs. Wisdom

knowledge is having the facts wisdom is applying the facts to taking care of customers

The purpose of the presentation

main goal is to sell your product to your customer by solving a problem with a solution provide a solution to their need(s)

Persuasive Communication

make the presentation fun communicate your personal value - personalize your relationship with each of your customers Build trust - be honest and do what you say you will Use body language - positive nonverbal communication Control the presentation Be a diplomat - show respect for other person's opinions Make the conversation interesting - incorporate excellent speech and delivery

Participation

motivate prospect to participate in presentation: use questions integrate use of product or service utilize visual communication utilize demonstrations

Presentation Hiccups

new stakeholders added stakeholder unwilling to participate how to handle interruptions - offer to leave the room, regroup your thoughts Should you discuss the competition? - do not refer to a competitor unless absolutely necessary, acknowledge competitor only briefly, make a detailed comparison of your product and the competition's product when necessary

Nondirective (Open-Ended) Questions

opens up 2-way communication prompts customer to continue talking begin with what, where, when, how, or why eg "What features are you looking for in a product like this?"

Phases of Negotiation

planning - know how your company compares to competition meeting - build a relationship that eases the negotiation process studying - look for benefits you can provide proposing - what you do in the presentation sets the stage for what may come later

The Core Principles: Presentations

presentation contains persuasive VOCAL and VISUAL proposition Focus on elements, information, and knowledge that will aid your buyer in making a buying decision

Issues with postponing objections

prospect may stop listening until you address the objection prospect may feel like you're trying to hide something prospect might think you cannot answer because you do not know the answer or how to deal with this objection it may appear that you are not interested in the prospect's opinion

The Objection Process

prospect raises objection listen to objections acknowledge concern understand objections - ask questions to clarify respond to objection use trial close move into presentation OR close the sale

Critical elements that enhance rate of success during any type of sales presentation:

questioning listening combining your listening and questioning skills storytelling

customer service

refers to the activities and programs the seller provides to make the relationship satisfying for the customer

qualifying a lead

salesperson uses predetermined criteria to determine: does the lead have the MONEY to buy? does the lead have the AUTHORITY to buy? does the lead have the DESIRE to buy?

FAB Sequence Best Practices

should be logical - logically explain benefit should use specific language - numbers vs vagaries structure and convey as you would in a business conversation - don't be robotic, canned integrate a trial close after FAB sequences - ask for feedback and understanding generate credibility by incorporating proof statements - provide credible evidence of benefit

Drawback

the customer wants something that you can't provide, OR you want the customer to do something the customer cannot do (these can be deal breakers)

Strategic Vision

the long-term direction and strategic intent of a company

follow-up

the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

Buying signals

the things customers do or say to indicate a readiness to buy: asking questions asking another person's opinion relaxing and becoming friendly pulling out a purchase order form

Rephrasing Question

used when prospect's meaning is not clearly stated salesperson can use it to: attempt to clarify meaning eg "Would it be correct to say that price is the most important thing you are interested in?" or attempt to further determine needs eg "Can you tell me more about your expectations in this area?"

Use a visual aid to close

visual aids work well for both discussing the business proposition and closing use visual aids to display timelines or steps in process

Directive (close-ended) Questions

yes or no answers, or few words useful in moving towards a specific topic eg "You want to make sure that the salespeople are using the data?"