MKT 351 Final

Report suppress factor

...

What are the steps involved in planning a presentation?

1. Approach: make a favorable first impression, securing attention, developing interest in product, set stage for effective sales presentation 2. Need discovery: discover buying ends and select a product solution 3. Presentation: after deciding which strategy to use by adapting to needs of prospect, prepare presentation by following guidelines 4. Negotiation: negotiating buyer resistance, objection is barrier to closing sale 5. Close: spot closing clues 6. Servicing the sale: developing a long-term value-adding relationship with prospect

How can one develop active listening skills?

• Active listening is the process of sending back to the prospect what you as a listener think the person meant, both in terms of content and in terms of feelings • Requires intense involvement as you concentrate on what you are hearing, exhibit your listening attitude through nonverbal messages, and feed back to the prospect what you think he meant • Involves focusing your full attention (involves use of verbal and nonverbal messages; listen to emotion involved in customer's comments; times when silence should be welcomed; plenty of time to let our minds roam, think ahead, and plan what we are going to say ahead; delivery of messages we hear is often much slower than our capacity to listen; avoid nodding rapidly or saying "uh huh" rapidly), paraphrasing the customer's meaning (state with a confirmation question to show you are listening and ensuring accuracy), and taking notes (demonstrate listening, increase memory of what heard, brief, ask for clarification)

What are the most effective methods to capture the prospect's attention and arouse interest?

• Agenda approach: thank the customer for taking time to meet with you and then review the call objectives you have prepared. Shows you value the person's time and you have preplanned a specific agenda. Always be open to changing the agenda based on customer input. Used in multi-call situations • Product demonstration approach: straightforward method; showing actual product, a sample, a mock-up, a video or a well-prepared brochure. Used by sales reps who sell convention services, technical products, pharmaceuticals, photo equipment, cars, construction equipment, office furniture; In many multi-call situations, leave samples for customer to examine and try out at a later date. • Referral approach: Person is far more impressed with your point if these points are presented by a third party (rather than you) because third party (a satisfied customer) believes prospect can benefit from your product. Opening statement should include a direct referral (Mr. Ameno is a regular customer of ours and he suggested I mention his name to you) • Customer benefit approach: Immediately point out benefits of purchasing your solution or value proposition. Could focus on product, company, or salesperson. Begin with most important issue and use the most important buyer's benefit is included in the initial statement. Used with the "elevator speech" (focuses on benefit of working with salesperson and is used to open the door and establish credibility to meet a need; short, prepared well in advance and extensively rehearsed. Used most appropriately in the initial call where buyer is interested in working with a highly qualified salesperson). Key is advance preparation; Customers are annoyed when salesperson cannot quickly communicate benefits. • Question approach: Appropriate question almost always triggers prospect involvement and gets prospect thinking about a problem that the salesperson may be prepared to solve. Start with basic questions that are not difficult to answer, yet get the company mentally involved. Listen carefully to the response, if answer is no, gracefully try another approach or thank the prospect for his time and depart. • Survey approach: New clients fill out a detailed questionnaire before first appointment. Study completed questionnaire and other documents before finding solution. Used in selling products where need cannot be established without careful study. Nonthreatening way to open a sales call; asking permission to acquire info that can be used to determine the buyer's need for your product. Tailor-made for a specific business, so buyer is given individual treatment. Avoids early discussion of price; price cannot be discussed until survey is completed. • Premium approach: Giving customer a free sample or an inexpensive item (booklet, planner).

How can one appeal to as many senses as appropriate?

• Although sight is considered the most powerful attention-attracting sense, it may not be the most important motivating force in every selling situation • When you involve more than one sense, the sales presentation is more informative and persuasive • Wine sales presentation includes: consumer demand (sales potential described in realistic terms), suggested marketing strategies, bouquet (fragrance of wine), and taste

What are some presentation objectives that should be established?

• Appropriate during the first call on a new prospect • Establish rapport and begin building a relationship • Obtain permission to ask need identification questions • Obtain person and business information to establish customer's file • During stage two, evaluation of solution, customer is ready to consider solutions: • Product demonstration • Provide value justification in terms of cost reduction and increased revenues • Compare and contrast the features

What are some responses to tactics used by buyers trained in formal negotiation?

• Budget limitation tactic: Is the buyer telling the truth or testing your price? Take the budget limitation seriously and use appropriate negotiation strategies. Reduce price by unbundling, or eliminating some items. • Take-it-or-leave-it tactic: When buyer says "take-it-or-leave-it?" You can lower price, but this would reduce company profits and your commission. Confidently review the superior benefit of your product and make another closing attempt. Appealing to the other person's sense of fairness may move the discussion forward. If final offer is totally without merit, consider calling a halt to the negotiation to allow the other party to back down from his position without losing face. • Let-us-split-the-difference tactic: Salesperson might find this price concession acceptable, if not, the salesperson might make a counter offer. • "If...Then" Tactic: "Unless you agree to a price reduction, we'll have to look elsewhere." Response depends on balance of power conducted during preparation. If buyer has a number of options that offer same benefits as yours, you may have to concede. If your product offers clear advantages over the competition, then you may be able to resist the challenge. • "Sell Low Now, Make Profits Later" Tactic: "If you can reduce the price, I will give you all my future work." This may be a genuine statement and may give you a foothold in your buyer's business. You might respond with "I am unable to discount, however, if you do give me this job and future jobs, I will discount your future work." This can create value for both you and your customer. • Plan negotiating strategies in advance and have clear goals. Decide in advance on the terms you can (and cannot) accept. It is important that you have the authority to set prices. Buyers want to do business with someone who has decision-making authority.

What are centers of influences? Who are typical centers of influence?

• Center-of-influence method involves establishing a relationship with a well-connected influential person who is willing to provide prospecting information • May not make buying decisions but has influence with other people who do • A person who is new in the field of selling uses friends and family members as sources of information about potential customers, these people have contacts with a wide range of potential buyers.

What is the difference between consumer buyer behavior and business buyer behavior?

• Consumer buyer behavior refers to the buying behavior of individuals and households who buy goods and services for personal consumption. • Business buyer behavior 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 other. Business purchases involve more decisions participants that may be well-trained.

What are some specific methods of negotiating buyer concerns?

• Direct denial: refuting the opinion or belief of a prospect; use with care. If person is misinformed, provide accurate information. Counter responses from the prospect promptly and directly. Be firm and sincere in your beliefs, but do not be offense nor patronize the prospect. • Indirect denial: prospect's concern is valid/accurate, so bend a little and acknowledge that the prospect is partially correct. Every product has a shortcoming or limitation. Avoid "Yes... but" response, try "I understand your concerns, however there is another way to view this issue." • Feel-felt-found: empathize with concerns. "I understand how you feel...Many of my customers felt the same way... until they started using this product and found it..."

What's the difference between emotional and rational buying motives

• Emotional motives: prompts prospect to act because of an appeal to some sentiment or passion; many buyers are guided more by feelings. Recognize cues such as body language, tone of voice, and emotive words. • Rational motives: appeals to the prospect's reason or judgment based on objective thought processes (e.g. profit potential, quality of service, and availability of technical assistance, durability, saving of time, competent installation). B2B use this.

What are the three prescriptions in developing a presentation strategy?

• Establishing objectives for the sales presentation (for each sales call) • Developing the presale presentation plan needed to meet these objectives (ensures salespeople are organized and prepared to achieve their objectives, usually through a six-step presentation plan) • Renewing one's commitment to providing outstanding customer service (achieving excellence is the result of careful needs analysis, correct product selection, clear presentation, informative demonstrations, win-win negotiations, and flawless service after the sale)

What are some tips for doing business in England?

• First and foremost is the British attention to detail • More formal in terms of dress and person-to-person communication • Introductions tend to be very formal. The British look for whose name is spoken first. Use client's name first in an introduction because he is the more important person (Mr. Timmons, I would like you to meet Raymond Hill, my sales manager). Never address someone by his or her first name unless invited to do so. • Making decision Is a time=consuming process, so don't expect a quick close • Do not use aggressive sales techniques, such as the hard sell, and avoid criticism of competing products. Focus on objective facts and evidence • Poor manners to discuss business after the business day, even when you have drinks or a meal with a businessperson.

Describe the four-part consultative questioning strategy

• Four types of questions: situation questions, probing questions, confirmation questions, and need-satisfaction questions • Survey: discovers basic facts about the buyer's problem and existing situation; usually at the beginning of a sale • Probing: designed to uncover pain, and clarify the circumstances and implications surrounding customer's problem; used when you feel the need to obtain more specific information to fully understand the problem • Confirmation: used throughout the sales process to verify accuracy and assure a mutual understanding of info exchanged by salesperson and buyer; used after important info has been exchanged • Need-satisfaction: designed to move the sales process toward commitment and action; focuses on the pleasure or payoff achieved from the proposed solution • At beginning of sales presentation, survey questions (information gather questions) can be used to collect basic facts about buyer's existing situation and problem • General survey questions (situation questions) help salesperson discover facts about buyer's problem and existing situation and are often the first step in the partnership-building problems • Specific survey questions follow general survey questions; designed to give prospects a chance to describe in more detail the problem, issue, or dissatisfaction they are experiencing from their point of view. Delve more deeply into customer's buying situation • Survey questions should not be used to collect factual info that can be acquired from other sources

What are some tips for doing business in Germany?

• Germany is a low-context culture in which words carry most of the information. Messages tend to be explicit and direct. In this culture, negotiations tend to be explicit in defining terms of the agreement. • Strong emphasis on punctuality, so avoid being late. Make appointments far in advance. • Lunch is the most common meal for business meetings. Dining etiquette in Germany involves eating continental style - holding the fork in the left hand continually and knife in the right hand • Sales presentation should include data and empirical evidence. Brochures and printed info should be serious and detailed, not flashy

When are customers more likely to give a referral?

• If they perceive value in the solution you offer • When you build value into your sales process, you increase the odds that the customer will give you a referral.

Describe the ferris wheel.

• Illustrates the relationship between prospecting and lost of customers due to the attrition. 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 abroad. • Get on: referrals; centers of influence; directories; trade publications and trade shows; telemarketing, direct mail, e-mail, advertising; web sites and computerized databases; cold calling; networking • Get off: relationship between customer and salesperson deteriorates, business failures, new buyer buys from another source, acquisitions and mergers, customer moves, death of customer, customer has only a one-time or extended need for product, customer needs change because of new technology

What are some tips for selling to the gatekeeper?

• Many decision makers have a "gatekeeper:" an assistant or secretary who manages their daily schedule • If you want tor each the decision maker, align yourself with the person who schedules this person's appointment • Treat them with respect: learn their name and what they do • Can be an important source of information: how buying process working, information regarding new development, help you make a preliminary qualification • Treat the person as an expert by soliciting their views • Use personal referrals from someone the prospect knows. If you have met the prospect previously, describe the meeting and tell gatekeeper why a second meeting would be beneficial.

What are some of the networking guidelines?

• Meet as many people as you can (do not limit your networking activities to business contacts); social network refers to your set of direct and indirect contacts (e.g. brother of a close friend). • When you meet someone, tell the person what you do (give name and position in a way that explains what you do and invites conversations; listen more than you talk) • Do not do business while networking • Offer your business card • Edit your contacts and follow-up (separate productive from the nonproductive; send short e-mail to productive contacts with business information and brochures to increase visibility; make sure materials are professional)

Describe educational seminars

• Method to identify prospects • Showcase your product without pressuring prospects to buy • Banks, accounting firms, wine merchants, consulting companies • Complimentary lunch is usually served before informative presentation • When inviting prospects, be clear about the seminar's content and always deliver what you promise

What is the importance of prospecting?

• Must cope with customer attrition, the inevitable loss of customers over a period of time. Unless new prospects are found to replace lost customers, salesperson eventually faces a reduction in income and possible loss of employment.

How can questions be used in negotiating buyer concerns?

• Need-satisfaction questions are designed to move the sales process forward toward commitment and action • Questions are designed to get the customer's attention focused on the solution. These questions also give ownership of the solution to the prospect • "Tests are too expensive." "What would a 10% reduction in employee turnover save your company?"

What are the three types of networks salespeople should grow and develop?

• Networking within your organization (someone in finance, IT, shipping) • Networking within your industry (experts, top performers, leaders, success company reps, competitors) • Networking outside your industry (bankers, government officials, developers)

What is networking?

• Networking: art of making and using contacts, or people meeting people and profiting from the connections • Networking skills are of special importance to new salespeople who cannot turn to a large group of satisfied customers for referral and leads • 80% of all available jobs are not posted in the classifieds or on Internet job boards

What are the three types of business buying situations?

• New-task buy: first time purchase of a product or service and may require several weeks of information gathering and involvement of numerous decision participants; salespeople involved rely heavily on consultative selling skills. • Straight rebuy: routine purchase of items needed by a B2B customer. As long as supplier meets your criteria, future purchases will be routine Salespeople must monitor straight rebuy situations to be sure customer is completely satisfied. • Modified rebuy: when customers wish to modify product specifications, change delivery schedules, or renegotiate prices. Requires the involvement of several participants.

Why is developing the six-step presentation plan so important?

• Once you have established objectives for the sales presentation, the next step involves developing the presentation plan to achieve your objectives • With increased time constraints, fierce competition, and rising travel costs, the opportunity for a face-to-face meeting with customers occur less frequently • The few minutes you have with your customers may be your only opportunity to win their business, so careful planning is more critical than ever

What are some concerns related to price?

• One of the most common buyer concerns • Price objections may be nothing more than an excuse • If you are selling to a transactional buyer, price may be the primary barrier to closing the sale (not "too expensive," but "you have not sold me yet") • To most customers, value is more important than price • Position your product with a convincing value proposition • Customers who perceive added value are less likely to choose a competing product simply on the basis of price

Describe the four-part need satisfaction model.

• Part 1 - Need discovery: Forms the essence of salespeople being able to create value, meet the needs of their customers, and execute firm's commitment to the marketing concept. Need discovery in the information economy is important, may begin during qualifying stage of building prospect database or during approach if salesperson uses questions or survey. Generally begins after you transition from the approach. Pace, scope, death, and time allocated to inquiry depend on sophistication of product, selling price, customer's knowledge of the product, product applications, and time available, so standard set of guidelines is not practical. • Part 2 - Selection of the solution: Choose product that can provide maximum satisfaction. Salesperson must be aware of all product options, including competition. • Part 3 - Need satisfaction through informing, persuading, or reminding: Create a need-satisfaction sales presentation and communicating to the customer, both verbally and nonverbally, the satisfaction that the product or service can provide. Places less emphasis on the use of questions and begins making value-adding statements. These statements are organized into a presentation that informs, persuades, or reminds customer of most suitable product or service. • Part 4 - Servicing the sale: major way to create value. Occurs after closing the sale, ensures maximum customer satisfaction and sets the stage for a long-term relationship. Includes expansion selling, making credit arrangements, following through on assurances and promises, and dealing effectively with complaints.

How can you select solutions that match specific benefits with buying motives?

• People buy products when they perceive that they fulfill a need • Today's more demanding customers seek a cluster of satisfactions that arise from the product itself, the company, and the salesperson • It is a mistake to make benefit statements that do not relate to the specific needs of the customer • Present benefits that are precisely tailored to the customer's needs. Benefits that are not relevant waste time and may invite objections.

Describe Maslow's hierarchy of needs.

• Physiological needs: food, water, sleep, and shelter; strong in the minds of most people. • Security needs: desire to be free from danger and uncertainty • Social needs: desire for identification with a group and approval from others; search for friendship, social acceptance among one's peers, and long-term business relationships. • Esteem needs: our desire to feel worthy in the eyes of others; seek a sense of personal worth and adequacy, a feeling of competence. • Self-actualization needs: self-fulfillment, a full tapping of one's potential. Consultative selling focuses on helping customer experience self-actualization in terms of the relationship with the salesperson. • Understand which need is most likely to dominate customer behavior in certain situations.

What are the suggested practices in the telephone contact?

• Plan in advance what you will say: determined by objectives, have a calendar available to suggest and confirm appointment • Politely identify yourself and the company you represent: use a friendly tone and impeccable phone manners to avoid being shut out by gatekeeper • State the purpose of your call and explain how the prospect can benefit from a meeting: use a powerful benefits statement that gets prospect's attention for more information, present only enough info to stimulate interest • Show respect for the prospect's time by telling the person how much time the appointment may take: once prospect agrees to meet ask if they have their calendar and be prepared to suggest a specific time • Confirm the appointment with a brief note, e-mail, or letter with the date, time, and place of your appointment: enclose business card and any interesting printed info

Describe the need discovery worksheet.

• Preplanned questions are often used in service, retail, wholesale, and manufacturer selling • Open questions require prospect to go beyond a simple yes/no response - provoke thoughtful and insightful answers • Closed questions can be answered with a yes or no, or a brief response - effective when sales conversation needs to be narrowed or focused on a specific issue • Probing questions help uncover and clarify the pain, implications, and circumstances surrounding the customer's buying problem

What are some solutions that salespeople can recommend?

• Recommend solution - customer buys immediately: May occur at the beginning of the sales call, such as in the product approach; during the presentation just after the need discovery; or near the end, when minor resistance has been negotiated. At any of these times, the presentation of the products that are well matched to the prospect's needs may result in an immediate purchase. • Recommend solution - salesperson makes need-satisfaction presentation: requires a presentation of product benefits including demonstrations and negotiating objections before the sale is closed. Customer may not be totally aware of a buying problem, and the solution may not be easily understood or apparent. Salesperson needs to carefully define the problem and communicate a solution to the customer. • Recommend another source: If salesperson concludes that the products represented do not satisfy the customer's needs, the consultative salesperson should recommend another source. This may begin a long-term partnership that may result in future sales and/or referred business.

Describe the sales process model

• Sales process model is the total set of prospects being pursued at any given time • Six-step sales process model includes Prospect, Qualified, Needs Analysis, Presentation, Negotiations, and Closed/Service • Account might be simply a prospect who has potential but has not been contacted, a qualified prospect ready for a needs analysis, or in serious negotiations. • Reports all supporting data on prospects in each stage • Where an account is in the sales process has implications for "if and when" the salesperson will be able to close the sale • Balanced funnel enables salespeople to know how many prospects and how much revenue is needed at each stage in the sales process to meet sales projections and quota • Must "work" the whole funnel so that it is always in balance; work on sales opportunities in the negotiation and close stages first, then work on adding new prospects and those that are in the earlier stages of the sales process, finally work on those opportunities that are in the sales process, moving them along the funnel and ensuring there are regular, predictable sales over time.

What should we understand as we prepare to approach the client for an appointment?

• The approach is the initial contact with the customer • High-quality and professional approach adds value and allows you to differentiate yourself; gives you the opportunity to make the sales presentation • Three importance objectives • Build rapport with the prospect: through telephone and/or social contact • Capture the person's full attention with your business contact: never begin your sales story if the prospect seems preoccupied and not paying attention • Transition to the next stage of the sales process (usually the need discovery in early part of the sales process, in mult-call it may be presentation, negotiation, or closing) • First contact may be a telephone call to schedule a meeting or conduct the sales presentation • Face-to-face sales call starts with the social contact and is followed by the business contact • Establish your credibility early to establish how much influence you will have avoid misspelled words or grammatical errors, arriving late, answering phone or reading e-mail while with customer, failing good eye contact, acknowledging only certain members of a buying group, failing to send promised information); credibility and influence grows when customer realizes you're competent and can add value

Why are product and plant tours so effective?

• The best-selling tool is often the product itself • Plant tours provide an excellent source of product information as well

What are group influences that influence buying decisions?

• The people around us also influence our buying decisions • Role influence: we occupy positions within groups. A role is a set of characteristics and expected social behaviors based on the expectations of others. All the roles we assume influence our general behavior and buying behavior. • **Reference group influence: categories of people that you see yourself belonging to, and with which you habitually compare yourself. Members influence the values, attitudes, and behaviors of one another. Acts as a point of comparison and a source of information for the member. Observe other people in group to establish our own norms, and these norms become a guide for our purchasing activity. • Social class influence: Society's permanent and ordered divisions whose members share similar values, interests, and behavior. Combination of factors determine class. • Cultural influence: Culture is accumulation of values, rules of behavior, forms of expression, religious beliefs, transmitted behavior patterns, and the like for a group of people who share a common language and environment. Encourage or discourage particular behaviors and mental processes. Maintain and transmit our culture chiefly through language. Within cultures are subcultures, groups whose members share value systems based on common life experiences.

How can you plan the pre-approach to prepare for your sales presentation?

• The preapproach involves preparing presale objectives and developing a presale presentation plan • The approach involves making a favorable first impression, securing the prospect's attention and transitioning to need identification • Preapproach is key and should be used as a key step in preparing for new account and established customer sales presentations • Includes establishing objectives and creating a presale presentation plan

How are trade shows and special events used for prospecting?

• Trade show is a large exhibit of products that are common to one industry; prospects walk into the booth or exhibit and talk with those who represent the exhibitor; sometime salespeople invite existing customers and prospects to demonstrate their newest products • Easier to identify good products and actually close sales at a trade show; fewer sales calls are needed to close a sale. • Special event can be a baseball game, golf tournament, reception for a dignitary, or charity event. Charity events serve as a venue for cultivating wealthy clientele.

How important are referrals to the success of salespeople?

• Used as an prospecting approach • Referral leads result in higher close rates, larger sales, and shorter sales scycles • A referral is a prospect who has been recommended by a current customer or by someone who is familiar with the product.

Why are graphs, charts, and test results so effective?

• Used to illustrate change of some variable • Usually quite descriptive • Best to interpret the graph for the prospect, do not move too fast because the full impact of the message may be lost • Test results from a reliable agency can be convincing

What are some suggestions for creating alternative solutions that can add value?

• When the prospect finishes talking, it is a good practice to validate the problem, using a confirmation problem to isolate the true problem and reduce chance of misunderstanding. This is good because it gives personal attention to the problem, which pleases the customer and gains time to think about the best possible response. • Best possible response is an alternative solution, known as logrolling. Many of customer's do not want to hear that there is only one way or a single solution. Additional issues can take the focus off price, and actually create value for the customer and possibly for the seller (e.g. delivery dates, financing, contract length, quality, exclusivity clauses, level of service support, and warranties)