MKTG 542 Exam 1
Problem (ex)
"Have you had any problems with your current bank?"
Situation (ex)
"How long have you had your present equipment?"
Assumptive close (ex)
"I can deliver it to you on Monday. May I go ahead and schedule that?"
Direct close (ex)
"It sounds to me as though you are ready to make the buy. Let's get the order into the system."
Balance sheet close (ex)
"Let's take a few minutes to list out and summarize the reasons this purchase makes sense for you, and also list any remaining questions you may have. This will help you make the right decision."
Buy-now close (ex)
"My company is running a special this week. This product is currently 20 percent off the regular price."
Summary of benefits close (ex)
"We've agreed that our product will substantially upgrade your technical capabilities, allow you to attract new business, and all the while save you money, isn't that right? If we place the order today, I can have my service technician out to train your staff next week."
Minor point close (ex)
"What color do you prefer?"
Implication (ex)
"What effect does this problem have on your overall customer satisfaction?"
Alternative choice close (ex)
"Which works best for your application, this model or that one?"
Need-payoff (ex)
"Would it be useful to speed up this operation by 10m percent?"
Success rate high vs low close calls
(5.8 closes used)- 37%, (1.4 closes used) 69%
Compensating for deficiencies
Moves the customer from focusing on a feature your product performs poorly to one in which it excels, The new feature must be important to the customer in order to compensate for the weakness of the other feature
Time Resistance
Need to think about it
Buyer resistance
Need, Product, Source, Price, Time
Product Resistance
New or not well established, prospect may be satisfied with current one
Outcomes is larger sales
Order, advance, continuation, no-sale
Negotiation
Working to reach an agreement that is mutually satisfaction to both buyer and seller
Defer (example)
Buyer: (before the full value of the product has been explained): What is the cost of your product? Seller: I can appreciate your interest in knowing the price of the product, but may I come back to your question in a few minutes after I know a little more about your product requirements?
Indirect denial (example)
Buyer: Demand for your products is strong. I'm not convinced you will be able to meet my order on time. Seller: You are correct. My company has enjoyed tremendous success ... However, we pride ourselves on meeting our order delivery deadlines, and our customers will verify that...
Direct denial (example)
Buyer: I was told recently that you had to recall all of your production for the last two months because of a faulty relay in your switch mechanism. Seller: I'm not sure where you could have heard that. We have not had a recall on any of our products for over 10 years. If you like, I can provide the data for you.
Trial offer (example)
Buyer: I'm not willing to make a commitment to your copier today. It seems complicated and hard to use. Seller: I can appreciate your concerns. May I have our service department install one for you and let you try it for one week? I will come by and demonstrate it for you...
Bounce back (example)
Buyer: I've listened to your presentation but need more time to consider your proposal, especially since the price has recently increased. Seller: I can appreciate that this is a big decision for your company. However, delaying this commitment is likely to cost your company even more money since prices are expected to increase even more over the next few months. As we agreed earlier, my products will save nearly 40%...
Feel-felt-found (example)
Buyer: In my opinion, your products are overpriced and not worth the extra cost. Seller: Our products are slightly more that the competition's and I can certainly see why you feel that way. Other customers have felt that way at first. However, when they take the time to examine the product quality, they have found the overall value to be worth the investment.
Compensating for deficiencies (example)
Buyer: The response time on your product is too slow. Your competition's response time is two-tenths of a second faster. Seller: You're right, my product is two-tenths of a second slower. However, please note that it also costs 25% less per unit... and has 10% fewer returns...
Third party endorsement (example)
Buyer: Your customer service has been questionable in the past, and it is important I have tech support 24/7. Seller: I agree with you that our customer service was not what it should be several years ago. However, we made the investment to improve customer service, and now it is among the best in the industry. I can provide references from many satisfied customers, such as Bob at General Electronics, who can share their experiences with our company's customer service with you.
Question (example)
Buyer: Your product is 10% more than your competitor's. Seller: Yes, it is more expensive, but do you see how it could actually save your company money in the long run?
Trial offer
Clearly define the terms beforehand, make sure the customer knows how to use the product correctly to ensure a successful trial offer.
Traditional sales training
Closing most important aspect, successful sellers close more often and use more closing techniques, should close frequently
Direct denial
Confrontational strategy for dealing with customer objections, may react negatively
Photo store- high value
before- 12m 35s, 2.7, 42% after- 8m 40s, 4.3, 33%
Photo store- low value
before- 2m 11s, 1.3, 72% after- 1m 47s, 1.9, 76%
Balance sheer close
column lists: Pros... "Reasons for buying" and Cons or... "Remaining questions" Helps find out what's holding the prospect back.
Demonstrating capability
demonstrate to customers that you have something worthwhile to offer
Photo store conclusions
forcing a customer into a decision speeds up the sales, closing techniques increase the sale of low priced but reduce those of expensive
Obtaining commitment
larger sales involve a number of intermediate steps called Advances
Stages of a sales call
opening, investing, demonstrating capability, obtaining commitment
Direct close
simply asks for the order
Buy-now close
Creates a sense of urgency with the buyer (reason must be honest)
Discovering needs
Customer's needs and situation factors - Confirm customers needs
Situation questions
Data-gathering questions, don't overuse
Follow up
Ensuring customer satisfaction
Customer-Oriented Sales Call Model
Establishing rapport, Discovering customer's needs, Making your presentation, Closing the sale
Minor point close
Focuses the buyer on a small element of the decision
Need-payoff questions
Get the customer to tell you the benefits that your solution could provide, ask 10 times
Verbal buying signals
Gives positive feedback- "I like the new features you described." Asks questions that show interest- "What colors does it come in?" Seeks other options- "Who are some other firms that have bought your product recently?" Provides purchase requirements- "My orders must be sent to four warehouses."
Alternative choice close
Gives the buyer multiple options
Prospecting and Qualifying
Identifying potential candidates Screening leads
Establishing rapport
Introduce yourself and your company - Initiate social conversation - Shift attention to topic of business
Pre-approach
Learning as much as possible about a prospective customer prior to making a sales call
Summary of benefits close
Reviews the benefits, reminds buyer why they are important, then asks for the order
ineffective traditional closing techniques
Sale is large or high value, sophisticated customer, continued post sale relationship
How to handle price resistance
Sell the benefits - don't apologize it - don't focus on it - point out the quality relationship - explain its difference to cost
Psychological effects of closing
Small decisions are easier to says yes to, bigger decisions react more negatively, larger decisions = less effective closing is
Approach
Stage where the salesperson meets the customer for the first time
Implication questions
Successful salesperson also need to ask more complex Implication questions, rarely ask good ones
Assumptive close
The prospective customer is ready to buy, so the salesperson verbalizes the assumption to see if it's correct
Need Resistance
Toughest to overcome, must prove product is a good investment
Question
Turn the customer's concern into a question and refocus on one or more strengths of your value proposition Get the customer thinking in a new way and contrast his/her concern against an advantage
Pro buyers views on clsoing
Unfavorable, More likely-2 indifferent-18 less likely-34
Third party endorsement
Use of an independent source to verify claims you've made in your presentation, Adds credibility, Can be combined with other strategies
Direct denial
Use this strategy when the customer states a clearly false and damaging statement about you, the company, or your product Avoid being offensive, insulting, or condescending
Benefits
Whatever provides customer with advantage or gain
Investigating
asking questions is the most important of all selling skills in larger sales
Differences in major sales
Length of selling cycles, size of customer's commitment, ongoing relationship, risk of mistakes
Indirect denial
Less threatening, begins by agreeing with customer, validating the objection, then explaining why it is untrue.
Handling post-sale problems
Listen, never argue, show empathy, no excuses, systematic, notes about everything, express appreciation
Opening
warming up events, including introductions and how you begin the conversation
Dealing with rejection
1. Don't take it personally -- remember the difference between self-worth and performance 2. Don't assume you are the problem 3. Engage in positive self-talk 4. Positively anticipate the possibility of rejection and don't let it overwhelm you 5. Consider that the decision not to buy may have important underlying reasons
Bounce back
More aggressive than some other strategies, Turns a customer concern into a reason for action, Often very effective with objections about needing more time or a lower price
Price Resistance
Most common form
Research for SPIN selling
10 years by Huthwaite Corporation, 35,000 sales, 27 countries, traditional selling methods don't work for high-sales
Defer
Most common when the customer raises a concern about price early in the presentation before the value proposition has been defined.
Closing the sales (yes)
Ask for customer commitment - Ask customer to initiate action - Confirm the sale (Thank them, Remind of benefits, Reassure)
Closing the sales (no)
Ask for customer commitment - Ask customer to initiate action - Thank them for their time
Closing
Asking for an order
Closing methods
Assumptive, minor point, alternative choice, direct, summary-of-benefits, balance sheet, buy-now
Presentation and Demonstration
Benefits of the product are presented and demonstrated. Understanding prospect needs is key
Feel-felt-found
Acknowledge the customer's feeling, Extend the same feelings to a larger audience, Counter with a legitimate argument Caution: this technique has been around for a long time, so use this technique carefully to avoid alienating the customer
Problem questions
After situation questions move to the second type, often don't ask enough of these questions
Handling Objections
Answering questions and addressing concerns
Features
Anything that can be seen, felt or measured
Post-sale problems
Product delivery, credit/billing, installation of equipment, customer training, product performance
Making the presentation
Propose a customer action - Explain how needs are met by this action - Verify the proposed customer action
Source Resistance
Prospect may be loyal to present supplier who doesn't have your product and doesn't want to do business with another supplier who has it
Selling process
Prospecting & qualifying, Pre-approach, Approach, Presentation & demonstration, Handling objections, Closing, Fellow-up
Negotiation styles
Question, Direct denial, Indirect denial, Compensating for deficiencies, feel-felt-found, Third-party endorsements, Bounce-back, Defer, Trial offer
Non-verbal buying signals
Relaxed friendly open, brings out paper work to initiate purchase, exhibits positive gesture/expressions, picks up sample/literature and carefully examines it
Closing mistakes
bad attitude, ineffective preapproach, not listening, "one size fits all", uncertainty about post-closing action
