Selling
Ingram, Laforge, Avila, Schwepker, and Williams
Multimedia Presentations
Steven J. Remington, .
Buena Vista University
August, 2000
Module 1
An Overview
of
Personal Selling
Evolution of Personal Selling
Early Origins of Personal Selling
Industrial Revolution Era
(1700s Europe; 1850s US)
Post-Industrial Revolution Era
(1800s Europe; 1900 US)
Canned Sales Presentation
The War and Depression Era
Professionalism: The Modern Era
Characteristics of Sales Professionalism
Customer Orientation
Use of Truthful and Nonmanipulative Tactics
Focus on Long-Term Satisfaction of Customer and Selling Firm
Cost/Sales Call
$80-$242/ call
Contributions of Personal Selling
Salespeople and Society
Salespeople as Economic Stimuli
Salespeople and Diffusion of Innovation
Contributions of Personal Selling
Salespeople and the Employing Firm
Salespeople as Revenue Producers
Market Research and Feedback
Salespeople as Future Managers
Contributions of Personal Selling
Salespeople and the Customer
Are honest
Understand general business and economic trends, as well as the buyer's business
Provide guidance throughout the sales process
Help the buyer to solve problems
Have a pleasant personality and a good professional image
Coordinate all aspects of the product and service to provide a total package
Industrial buyers prefer to deal with salespeople who:
Classification Of Personal Selling Jobs
Sales Support Personnel
Missionary Salespeople
Detailer
Technical Support Salespeople
New Business
Pioneers
Order-getters
Existing Business
Order-takers
Insider Sales (non-retail)
Direct-to-Consumer Sales (retail)
Combination Sales Jobs
Characteristics Of Sales Careers
Job Security
Advancement Opportunities
Immediate Feedback
Prestige
Job Variety
Independence
Compensation
Boundary-Role Effects
Boundary-Role Effects Role Stress
Role Conflict
Role Ambiguity
Role stress must be dealt with to insure maximum sales productivity
Qualifications And Skills Required For Success By Salespeople
Empathy
To see things as others would see them
Ego Drive
Determination to achieve goals
Ego Strength
Self-assured and self-accepting
Interpersonal Communication Skills
Including listening and questioning
Enthusiasm
In general, and for sales as a career
Additional Characteristics Related to a Given Sales Job
Managing the Sales Force
(1:26)
Module 2
Understanding Buyers
Types of Buyers
Consumer Markets
Business Markets
Distinguishing Characteristics of Business Markets
Buyers are Larger but Fewer in Number
Derived Demand
Higher Levels of Demand Fluctuation
Purchasing Professionals
Multiple Buying Influences
Close Buyer-Seller Relationships
Supply Chain Management
The Buying Process
(Figure )
Determination of Item and
Quantity Needed
Recognition of the
Problem or Need
Initiating the Relationship
Gathering and Studying
Pre-call Information
Approaching and Initiating
Contact
Assessing the Situation and
Discovering Needs
The Buying Process
(Figure )
Selection of
an Order Routine
Evaluation of Proposals
And Selection of Suppliers
Acquisition and Analysis
of Proposals
Recognition
Initiating the Relationship
Developing the Relationship
Select Presentation
Explain Features
Confirm Benefits
Handle Objections
Earn and Gain Commitment
Search and Qualification
Of Potential Sources
Description of Item and
Quantity Needed
Determination
The Buying Process
(Figure )
Recognition of the
Problem or Need
Determination
Recognition
Initiating the Relationship
Description
Search and Qualification
Proposals
Selection of Suppliers
Order Routine
Developing the Relationship
Enhancing the Relationship
Follow-up to Assess Customer
Satisfaction
Take Action to Assure Customer
Satisfaction
Encourage Critical Encounters
Expand Collaborative
Involvement
Add Values and Enhance Mutual
Opportunities
Phase One
Recognition of the Problem or Need: The Needs Gap
(Figure )
Desired State
Produce 1,250 units/day
Actual State
Produce 1,000 units/day
The Gap
Or
Need
250 units/day
Complex Mix of Business Buyer Needs
(Figure )
Organizational
Needs
Individual
Needs
Functional
Functional
Psychological
Psychological
Knowledge
Knowledge
Social
Social
Situational
Situational
Phase Two
Determination of Characteristics of the Item and the Quality Needed
Phase Three Description of Characteristics of the Item and the Quality Needed
Phase Four Search for and Qualification of Potential Sources
Phase Five
Acquisition and Analysis of Proposals
Evaluating Suppliers and Products
Multi-Attribute Model
Assessment of Product or Supplier Performance (P)
Assessing the Relative Importance of Each Characteristic (I)
Phase Five
Acquisition and Analysis of Proposals Multi-Attribute Model of Adhesives by
GM Buyers
Phase Five
Acquisition and Analysis of Proposals
Employing Buyer Evaluation Procedures to Enhance Selling Strategies
Modify the Product Offering Being Proposed
Alter the Buyer’s Beliefs about the Proposed Offering
Alter the Buyer’s Beliefs about the Competitor’s Offering
Alter the Importance Weights
Call Attention to Neglected Attributes
Phase Six
Evaluation of Proposals and Selection of Supplier
Phase Seven Selection of Order Routine
Phase Eight Performance Evaluation and Feedback
Phase Eight
Performance Evaluation and Feedback
Understanding Post-Purchase Evaluation and the Formation of Satisfaction
(Figure )
Complex Mix of Business Buyer Needs
Buyers
Level of
Satisfaction
63%
Level of Influence
On Buyers’ Satisfaction
37%
Level of Influence
On Buyers’ Satisfaction
Psychological Attributes
“Delighters”
Functional Attributes
“Must-Haves”
Phase Eight
Performance Evaluation and Feedback
Understanding Post-Purchase Evaluation and the Formation of Satisfaction
The Growing Importance of Salespeople in Buyer’s Post-Purchase Evaluation
Types of Purchasing Decisions
Buying Situation
Straight Rebuy Buying Situation
Routinized Response Behavior
Modified Rebuy Buying Situation
Limited Problem Solving
New Task Buying Situation
Extensive Problem Solving
Types of Purchasing Decisions
Three Types of Buying Decisions
(Exhibit )
Types of Purchasing Decisions
Three Types of Buying Decisions
(Exhibit )
Types of Purchasing Decisions
Three Types of Buying Decisions
(Exhibit )
Types of Purchasing Decisions
Three Types of Buying Decisions
(Exhibit )
Organizational Buyer Behavior
Buying Center
Initiators
Users
Gatekeepers
Influencers
Deciders
Purchasers
Current Developments in Purchasing
Increasing Use of Information Technology
Relationship Emphasis on Cooperation and Collaboration
Supply Chain Management
Increased Outsourcing
Target Pricing
Increased Importance of Knowledge and Creativity
Module 3
Building Trust
Buyers define trust using terms such as:
Openness
Dependability
Candor
Honesty
Confidence
Security
Reliability
Fairness
Predictability
What is Trust?
Trust answers the questions:
Do you know what you are talking about?
Will you recommend what is best for me?
Are you truthful?
Can you and your company back up your promises?
Will you safeguard confidential information that I share with you?
Why is Trust Important?
The shift toward relationship selling emphasizes the initiation and nurturing of long-term buyer-seller relationships based on mutual trust and value-added benefits.
How to Earn Trust
Trust Builders
(Figure )
Trust
Expertise
Dependability
Representation
Competence
Compatibility/
Likeability
Candor
Contribution
Customer
Orientation
Knowledge Bases Help Build Trust and Relationships
(Figure )
Industry
Service
Product
Competition
Company
Price/
Promotion
Technology
Market/
Customer
Possible
Knowledge Bases
Sales Ethics
Image of Salespeople
Television, movies, broadway productions, and the popular press have contributed to a negative image of salespeople portraying them as being associated with deceptive, illegal, and non-customer-oriented behavior.
Sales Ethics
Image of Salespeople
Deceptive Practices
When salespeople give answers when they do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer.
Salespeople can create product liabilities by:
Expressed Warranty
Misrepresentation
Negligence
Sales Ethics
Image of Salespeople
Illegal Activities
Defraud
Con
Misuse Company Assets
Sales Ethics
Image of Salespeople
Non-Customer-Oriented Behavior
Pushy
Hard Sell
Fast Talking
High Pressure
Sales Ethics
Image of Salespeople
(Exhibit )
Deceptive Practices
Deceptive
Deceive
Hustle
Scam
Exaggerate
Withhold
Bluff
Non-Customer-Oriented Behavior
Pushy
Hard Sell
Fast Talking
High Pressure
Illegal Activities
Defraud
Con
Misuse Company Assets
Module 4
Communication Skills
Sales Communication as a Collaborative Process
Relational Sales Communication
A two-way and naturally collaborative interaction
Allows buyers and sellers to
Develop a better understanding of the need situation
Work together to best provide for the customer’s needs
Verbal Communication:
Questioning
Types of Questions Classified by Amount and Specificity of Information Desired
Open-end or Nondirective Questions – free response
What happens when…?
How do you feel…?
Describe the…
Closed-end Questions – response limited to a few words.
Are you…
How many…
How often…
Dichotomous/Multiple-Choice Questions – directive forms of questioning
Which do you prefer, the ____ or the ____?
Verbal Communication:
Questioning
Types of Questions Classified by Strategic Purpose
Probing Questions – designed to penetrate below generalized or superficial information
Requesting Clarification
“Can you share an example of that with me?”
Encouraging Elaboration
“How are you dealing with that situation now?”
Verifying Information and Responses
“So, if I understand you correctly… Is that right?”
Verbal Communication:
Questioning
Types of Questions Classified by Strategic Purpose
Probing Questions
Evaluative Questions – use open- and closed-end question formats to gain confirmation and to uncover attitudes, opinions, and preferences of customer.
“How do you feel about…?”
“Do you se the merits of…?”
“What do you think…?”
Verbal Communication:
Questioning
Types of Questions Classified by Strategic Purpose
Probing Questions
Evaluative Questions
Tactical Questions – used to shift or redirect the topic of discussion
“Earlier you mentioned that…”
“Could you tell me more about how that might affect…”
Verbal Communication:
Questioning
Types of Questions Classified by Strategic Purpose
Probing Questions
Evaluative Questions
Tactical Questions
Reactive Questions – refer to or directly result from information previously provided by the other party.
“You mentioned that … Can you give me an example of what you mean?”
“That is interesting. Can you tell me how it happened?”
Guidelines for Combining Types of Questions for Maximal Effectiveness
(Exhibit )
Amount of and Specificity of Information Desired
Choice from
Alternatives
Discussion and
Interpretation
Confirmation and
Agreement
Explore and Dig
for Details
Gain Confirmation
& Discover
Attitudes/Opinions
Change Topics or
Direct Attention
Follow-Up
Previously Elicited
Statements
Amount of and Specificity of Information Desired
Open-end Questions
Designed to be
Probing in Nature
Closed-end Questions
Designed to be
Probing in Nature
Dichotomous or
Multiple-choice Questions
Designed to be
Probing in Nature
Open-end Questions
Designed to be
Reactive in Nature
Closed-end Questions
Designed to be
Reactive in Nature
Dichotomous or
Multiple-choice Questions
Designed to be
Reactive in Nature
Open-end Questions
Designed to be
Tactical in Nature
Closed-end Questions
Designed to be
Tactical in Nature
Dichotomous or
Multiple-choice Questions
Designed to be
Tactical in Nature
Open-end Questions
Designed to be
Evaluative in Nature
Closed-end Questions
Designed to be
Evaluative in Nature
Dichotomous or
Multiple-choice Questions
Designed to be
Evaluative in Nature
Verbal Communication:
Strategic Application of Questioning
Generate Buyer Involvement
Provoke Thinking
Gather Information
Clarification and Emphasis
Show Interest
Gain Confirmation
Advance the Sale
Verbal Communication:
SPIN Questioning System
Situation Questions – solicits general background information and descriptions of the buyer’s existing situation
“Who are your current suppliers?”
“Do you typically purchase or lease?”
“Who is involved in the purchasing decisions?”
Verbal Communication:
SPIN Questioning System
Situation Questions
Problem Questions – follow and relate to situation questions probing for specific difficulties, developing problems, and areas of dissatisfaction
“How critical is this component for your production?”
“What kind of problems have you encountered with your current suppliers?”
“What types of reliability problems do you experience with your current system?”
Verbal Communication:
SPIN Questioning System
Situation Questions
Problem Questions
Implication Questions – follow and relate to information from the problem questions assisting the buyer in understanding the potential problems of the current problem and the urgency in resolving it
“How does this affect profitability?”
“What impact does the slow response of your current supplier have on the productivity of your operation?”
“How would a faster piece of equipment improve productivity and profits?”
“What happens when the supplier is late with a shipment?”
Verbal Communication:
SPIN Questioning System
Situation Questions
Problem Questions
Implication Questions
Need-payoff Questions – used to propose a solution and develop commitment from the buyer, based on the implications of the problem
“Would more frequent deliveries allow you to increase productivity?”
“If we could provide you increased reliability, would you be interested?”
“If we could improve the quality of your purchased components, how would that help you?”
“Would you be interested in increasing productivity by 15 percent?”
Funneling Sequence of ADAPT Techniques for Needs Discovery
(Figure )
Broad bases and general facts describing situation
Non-threatening as no interpretation is requested
Open-end questions for maximum information
Assessment Questions
Questions probing information gained in assessment
Seeking to uncover problems or dissatisfactions that
could lead to suggested buyer needs
Open-end questions for maximum information
Discovery Questions
Show the negative impact of a problem discovered in the
discovery sequence
Designed to activate buyer’s interest in and desire
to solve the problem.
Activation Questions
Projects what life would be like without the problems
Buyer establishes the value of finding and
implementing a solution
Projection Questions
Confirms interest in solving the problem
Transitions to presentation of solution
Transition Questions
Verbal Communication:
Listening
(Figure )
Effective
Active
Listening
Pay
Attention
Monitor
Non-Verbals
Paraphrase
and Repeat
Make No
Assumptions
Encourage
Buyer to Talk
Visualize
Verbal Communication:
Using Different Types of Listening
Social Listening
Serious Listening
Active Listening
Concentration
Cognition
Verbal Communication:
SIER Hierarchy Active Listening
(Figure )
Sensing
Interpreting
Evaluating
Responding
Verbal Communication:
Giving Information
Understanding the Superiority of Pictures over Words
Impact of Grammar and Logical Sequencing
Nonverbal Communication
Facial Expressions
Eye Movements
Placement and Movements of Hands, Arms, Head, and Legs
Body Posture and Orientation
Proxemics
Variation in Voice Characteristics
Speaking Rate and Pause Duration
Pitch or Frequency
Intensity and Loudness
Common Nonverbal Clusters
(Exhibit )
Poor eye contact
Glancing at watch
Blank stare
Drumming fingers
Swinging a foot
Brushing & picking at items
Tapping feet
Head in palm of hands
Slouching
Lack of interest and impatience
Boredom
Increased eye contact
Hands on hips
Legs uncrossed
Feet flat on floor
Sitting forward
Dedication or commitment
Readiness
Increased eye movement
Frequent gazes elsewhere
Forced smile
Fidgeting with objects
Increased leg movement
Patterns of rocking
Dishonesty and secretiveness
Deception
Dropping glasses to lower nose
Hand on cheek
Stroking chin
Chin in palm of hand
Leaning forward
Evaluation and consideration of message
Evaluation
Minimal eye contact
Glancing sideways
Pursed lips
Tilted head
Crossed arms & legs
Rigid body
Defensiveness, skepticism, and apprehension
Defensiveness
Slight smile
Good eye contact
Open hands
Removing coat
Unbutton collar
Uncrossed arms & legs
Moving closer
Leaning forward
Openness, flexibility and sincerity
Openness
Eyes & Facial Expression
Movement of Hands, Arms, & Legs
Body Posture & Orientation
Cluster Meaning
Cluster Name
Written Communication:
Sales Proposals
The Seven Deadly Mistakes of Proposal Writing
Not writing a proposal.
Not fully understanding the customer’s business.
Missing the buyer’s deadline.
Producing a proposal with little “drive-up” appeal.
Not saying anything that really makes a difference.
Using a standardized boilerplate approach.
No one owning the responsibility or having the authority to create quality and effective proposals.
Written Communication:
Sales Proposals
5 Common Parts of a Proposal
Executive Summary
Needs and Benefits Analysis
Company Description
Pricing and Sales Agreement
Suggested Action and Timetable
Module 5
Self-Leadership and Teamwork Skills
Five Sequential Stages of
Self-Leadership
(Figure )
Setting
Goals &
Objective
Territory
Analysis &
Account
Classification
Development &
Implementation
Of Strategies &
Plans
Tapping
Technology
&
Automation
Assessment
&
Evaluation
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Effective Self-Leadership
Stage One: Setting Goals and Objectives
What makes a good goal?
Realistic, yet Challenging
Specific and Quantifiable
Time Specific
Working with different levels and types of goals
Personal Goal
Territory Goal
Account Goal
Sales Call Goal
Effective Self-Leadership
Stage Two: Territory Analysis and Account Classification
Territory Analysis
Who are prospective buyers?
Where are they located?
What and why do they buy?
Who has the authority to buy, who influences the buying decision?
What is the probability of selling this account?
What is the potential share of account that might be gained?
Effective Self-Leadership
Stage Two: Account Classification
Accounts with medium potential, but who are not current customers
Annual # of calls = 6
Accounts that cost more than they produce in sales or profits
Annual # of calls = 0
None – This schema uses only 3 classes of accounts
“D” Accounts
Medium potential accounts that are current customers
Annual # of calls = 12
Lower sales potential accounts
Annual # of calls = 8
Accounts with least sales potential
Annual # of calls = 4
“C” Accounts
Accounts with high potential, but who are not current customers
Annual # of calls = 12
Accounts with moderate sales potential, but who are regular/reliable customers
Annual # of calls = 24
Medium potential accounts (80% of accts; 20% of sales)
Annual # of calls = 12
“B” Accounts
High volume current customers (20% of accts; 80% of sales)
Annual # of calls = 48
Accounts with highest potential (20% of accts; 80% of sales)
Annual # of calls = 52
Accounts with highest potential (20% of accts; 80% of sales)
Annual # of calls = 24
“A” Accounts
Schema Three:
Federal Metal Products
Schema Two:
Web Resource Associates, LLC
Schema One:
InquisLogic, Inc.
Class of Account
Exhibit – Different Single Factor Account Schema
Effective Self-Leadership
Stage Two: Account Classification
(Exhibit )
Portfolio Model Segments and Strategies
Competitive Position
Segment 1
Level of Attractiveness
Selling Effort Strategy
Segment 2
Level of Attractiveness
Selling Effort Strategy
Segment 4
Level of Attractiveness
Selling Effort Strategy
Segment 3
Level of Attractiveness
Selling Effort Strategy
Strong
Weak
Low
High
Account Opportunity
Effective Self-Leadership
Stage Three: Developing and Implementation of Strategies and Plans
Establishing and Implementing Selling Task and Activity Plans
Do them, and do them in writing
Keep it current and flexible
Establishing Territory Route Plans
Straight-Line Route Pattern
Cloverleaf Route Pattern
Circular Route Pattern
Leapfrog Route Pattern
Major-City Route Pattern
Effective Self-Leadership
Stage Four: Tapping Technology and Automation
Computers
Siebel Systems
Proximity
Internet and World Wide Web
Internet
Intranets and Extranets
Pagers and Cell Phones
Voice Mail
High-Tech Sales Support Offices
Effective Self-Leadership
Stage Five: Assessment of Performance and Goal Attainment
Increasing Customer Value through Teamwork
Internal Partnerships and Teams
Sales Partnerships
Marketing Partnerships
Administrative Support Partnerships
Shipping and Transportation Partnerships
Customer Service Partnerships
Building Teamwork Skills
Understanding the Other Individuals
Attending to the Little Things
Keeping Commitments
Clarifying Expectations
Showing Personal Integrity
Apologizing Sincerely When a Mistake Is Made
Relationship of Optimized Solutions, Trust, and Cooperation
(Figure )
Low
High
Mutual Cooperation
Low
High
Mutual Trust
Competitive and
Defensive Outcomes
(Win/Lose or
Lose/Win
Optimized and
Synergistic Solutions
(Win/Win)
Compromise
Solutions
Module 6
Personal Selling:
Approaches and Process
Classification of Personal Selling Approaches
Stimulus-Response Selling
(Figure )
Salesperson
Provides
Stimuli
Buyer
Responses
Sought
Continue
Process
until
Purchase
Decision
Classification of Personal Selling Approaches
Mental-States Selling
Attention
Interest
Desire
Action
Conviction
Classification of Personal Selling Approaches
Need-Satisfaction Selling
(Figure )
Uncover and
Confirm
Buyer
Needs
Present
Offering to
Satisfy
Buyer
Needs
Continue
Selling
until
Purchase
Decision
Classification of Personal Selling Approaches
Problem Solving Selling
(Figure )
Define
Problem
Generate
Alternative
Solutions
Continue
Selling
until
Purchase
Decision
Evaluate
Alternative
Solutions
Classification of Personal Selling Approaches
Consultative Selling
Strategic Orchestrator
Business Consultant
Long-term Ally
The process of helping customers reach their strategic goals by using
the products, service, and expertise of the selling organization.
Three Primary Roles:
Sales Planning
(1:39)
Sales Process Model
(Figure )
Salesperson
Attributes
Selling
Strategy
Initiating
Customer
Relationships
Developing
Customer
Relationships
Enhancing
Customer
Relationships
Initiating Customer Relationships
Prospecting Methods
(Exhibit )
External Sources:
Referral Approach
Community Contact
Contact Organizations
Introduction Approach
Noncompeting Salespeople
Cultivate Visible Accounts
Internal Sources:
Examine Records
Inquiries to Advertising
Phone/Mail Inquiries
Personal Contact:
Personal Observation
Cold Canvassing
Miscellaneous:
Hold/Attend Trade Shows
Bird Dogs
Sales Seminar
Compatibility
Accessibility
Eligibility
Authority
Profitability
Initiating Customer Relationships Screening Criteria
Initiating Customer Relationships
Prospecting Issues
Which method works best?
Cold-call reluctance
Using technology to complete the basic tasks of prospecting
Tele-prospecting
Initiating Customer Relationships
Pre-call Planning
Preapproach; customer related research
Gathering information about the prospect that will be used to formulate the sales presentation
Sales Presentation Planning; increased importance in recent years
Salesperson must begin with an objective(s)
Sales-Presentation Planning
Sales Presentation Format
Canned Sales Presentation
Pros
Logical
Complete
Minimizes sales resistance by anticipating prospect’s objections
Can be used by an inexperienced salesperson
Cons
Unable to tailor message to the prospect
Does not handle interruptions well
Hard to use with broad product line
May alienate buyers
Sales-Presentation Planning
Sales Presentation Format
Organized Sales Presentation
Organizes the key points into a planned sequence that allows for adaptive behavior
Feedback from buyer is encouraged
Con
Requires a salesperson with more product knowledge and selling experience
Sales-Presentation Planning
Sales Presentation Format
Sales Proposal
Used in competitive bidding situations and when dollar value of sale is large
Pros
Written word is usually accepted as being more credible
Technical information, pricing data, and perhaps a timetable are available for review
Sales Mix Model
(Figure )
Presentation
Pace
Presentation
Scope
Depth of
Inquiry
Use of
Visual Aids
Two-Way
Communication
Prospect
Approaching the Customer
Getting the appointment
Starting the sales call
Establish harmonious atmosphere
Observe rules of common courtesy
Ascertain customer needs
Ask questions and listen
Focus on benefits to the customer
Developing Customer Relationships
Sales Presentation Delivery
Building Credibility
Personal Behavior
Sales Techniques
Conservative Claims
Third-party Evidence
Testimonials
Guarantees and Warranties
Achieving Clarity
Addressing Customer Concerns
Gaining Customer Commitment
Avoid high-pressure sales techniques
Seek commitment if prospect has voiced no concerns
Seek commitment if prospect concerns have been adequately addressed
Avoid “early and often” mentality
Suggest a specific course of action
Relationship Enhancement Activities
Entering orders
Expediting orders
Installing the product or service
Training customer personnel
Resolving complaints
Correcting billing errors
Module 7
Initiating the Relationship
The Challenges of Prospecting
5% of unplanned cold calls result in a sale…
Roughly 25-30% of preplanned calls produce a sale
The Challenges of Prospecting
Buyers will not take the time to see a salesperson because:
They may have never heard of the salesperson’s firm.
They may have no need; they just bought the product category.
The buyer may have their own deadlines on other issues.
Buyers are constantly getting calls from salespeople and do not have the time to see them all.
Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.
The Challenges of Prospecting
Strategic Prospecting
(Figure )
Sales Lead
Qualified Prospect
Prospect
Salespeople must develop leads into prospects -
Salesperson must do homework on company…
“Will it be a profitable account?”
“Does the buyer have genuine interest in our offering?”
The Challenges of Prospecting
Locating Prospects
External Sources
Referrals
Introductions
Community Contacts (Centers of Influence)
Organizations
Non-competing Salespeople
Visible Accounts
Internal Sources
Company Records
Lists and Directories
Advertising Inquiries
Telephone Inquiries
Mail Inquiries
Internet or World Wide Web
Personal Contact
Observation
Cold Canvassing
Trade Shows
Bird Dogs (Spotters)
The Challenges of Prospecting
Qualifying Prospects
Can benefit from the sales offering.
Have the financial wherewithal to make the purchase.
Play an important role in the purchase decision process.
Are eligible to buy based on a fit within the selling strategy.
Are reasonably accessible and willing to consider the sales offering.
Can be added to the customer base at an acceptable level of profitability
At a minimum, qualified prospects are those who:
Obtaining Precall Information on the Buyer
(Exhibit )
Look for diplomas. Ask.
Where did this prospect grow up?
Where were they educated?
Observation and experience with buyer.
What is the prospect’s personality type? Easy going? All business?
Observation of office.
Does the prospect have hobbies or interests they are proud of?
Observe club or organizational honors displayed in the office.
Is the buyer involved in their community?
Do they belong to clubs or professional organizations?
May have to ask the prospect
Is this prospect willing to take risks?
Are they confident with their decision making?
Can be gathered by asking the receptionist or secretary or gatekeeper to verify information.
The prospect’s name and title
Correct spelling and pronunciation
How to Collect Information
Information Needed
Gathering Information on the Prospect’s Organization
(Exhibit )
Salesperson may have to ask for this information.
Who does the prospect presently buy from?
Do they buy from a single vendor? Multiple vendors?
How long have they purchased from their suppliers?
What problems does the company face?
What volume does the company buy?
What is the organization’s financial position?
Annual reports.
To what market does the company sell?
Who are its primary competitors?
What does the company make and sell?
Can be gathered from a directory.
What type of business are we dealing with?
How to Collect Information
Information Needed
Determining Other Buyer’s Influences
(2:45)
Planning the Initial Sales Call
Establishing Presentation Objectives
Getting the order is the ultimate objective.
To introduce the salesperson and his/her company.
To obtain personal and business information.
To provide company literature.
To conduct a needs assessment.
To demonstrate a new product offering.
To provide postsale service.
Planning the Initial Sales Call
Approaching and Initiating Contact
Introduction Approach
Productivity Approach
Benefit Approach
Question Approach
Referral Approach
Compliment Approach
Survey Approach
Assessing the Situation and Discovering Needs through Questioning Skills
Assessment Questions
Discovery Questions
Activation Questions
Projection Questions
Transition Questions
Figure – The Adapt Process
Questioning and Listening…
the key element of good communication
Module 8
Developing the Relationship
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Follow-Up
Steps in Developing the Relationship
Approach
Steps in Developing the Relationship
Approach
(1:28)
Steps in Developing the Relationship
Approach
Determine Needs
Selecting Appropriate Customer Offerings by Assessing Needs
Needs result from the a discrepancy between an actual and desired state of being.
Needs may be classified as:
Unrecognized – customer is unaware or has dismissed as trivial
Potential – customer statements of general problems, difficulties, and dissatisfactions
Confirmed – customer states that they are ready to take action
The emphasis is on determining customer needs and then creating or selecting customer-fitted solutions to satisfy those needs.
Selecting Appropriate Customer Offerings by Assessing Motives
Functional Motives
Driven by price, quality, and service a salesperson can supply
Psychological Motives
A buyer’s habits, emotional stress, and confidence
Selecting Appropriate Customer Offerings by Assessing Competitive Situation
Understanding a competitor’s strengths/weaknesses allows the salesperson to put the best solution forward.
Steps in Developing the Relationship
Determine Needs
(1:28)
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Types of Sales Presentations
Canned Presentations
Organized Presentations
The Trust-based Selling Process:
A Needs-Satisfaction Consultative Model
(Figure )
Information
Gathering
Approach
Presentation
Handling
Resistance
Earn
Commitment
Follow-up
100%
Relative Participation Rate
Need Development
Need Awareness
Need Fulfillment
A
D
A
P
T
Assessment
Discovery
Activation
Projection
Transition
Select Feature
Explain Advantage
Lead to Benefits
Let Customer Talk
S
E
L
L
% Time
“The Salesperson”
Talks/Participates
% Time
“The Customer”
Talks/Participates
Types of Sales Presentations
Canned Presentations
Organized Presentations
Sales Proposals
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Sequence of the Sales Presentation Conclusion
Following an introduction, questions, careful listening, and confirmation statements should be used to assess the customer’s needs
Benefits should be presented in order of customer’s needs, should be repeated during the presentation and at the end of the presentation
Continuation of prior sales calls should start with a summary of earlier calls
Pricing issues should not be focused on until the customer’s needs have been defined and addressed
A few general rules:
Using Visual Aids to Customize and Dramatize the Presentation
Charts and Graphs
Photographs and Advertisements
Catalogs and Brochures
Electronic Media
Computer-based Presentation
Videos
Slides
Overhead Transparencies
Sales Portfolios
Concluding the Customized Presentation
Linking Solutions to Need
Support is needed-confirmed benefit
Assistance in installation, maintenance, and expansion
Technical Support personnel for a computer system
Not a serious issue for this retailer-not confirmed
Store manager puts huge emphasis on product freshness-confirmed benefit
Retailer can reduce inventory costs
Product freshness leads to customer satisfaction
Daily delivery of Frito-Lay potato chips
Hard for most consumer’s to understand how bell shape improves cleaning-not confirmed
Optimum air flow improves cleaning ability.
Bell shaped nozzle on vacuum cleaner
Golf Pro doe not see this as true benefit-not comfirmed
Golf Pro has easy time selling longer distance-confirmed benefit
Better launch angle
Natural surface cohesiveness
of ultramid, a high tech plastic
golf club
Confirmed Benefits/Unconfirmed
Potential Benefits
Features
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Anticipating and Negotiating Concerns and Resistance
Reasons Why Prospects Raise Objections
The prospect wants to avoid the sales interview.
The salesperson has failed to prospect and qualify properly.
Objecting is a matter of custom.
The prospect resists change.
The prospect fails to recognize a need.
Prospect lacks information.
Anticipating and Negotiating Concerns and Resistance
Types of Objectives
Forestalling
Price is Too High
Product Objection
Company Objection
No Need
Anticipating and Negotiating Concerns and Resistance
Listen
Acknowledge
Assess
Respond
Confirm
Steps in Developing the Relationship
Handle Objections
5:36
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Securing Commitment and Closing
Guidelines for Earning Commitment
“Green Light” statements include:
I like that size.
That will get the job done.
The price is lower than I thought it would be.
I didn’t realize you delivered every day.
Trial Commitments
An effort to elicit how far along the prospect is in his/her decision making.
“Red Light” statements include:
I’m not sure that will work.
The price is higher than I thought it would be.
Your delivery schedule does not work for us.
I don’t see the advantage of going with your proposal.
Closing early and often and having a closing quota for each sales call are not liked by buyers.
Securing Commitment and Closing
Techniques to Earn Commitment
Ask for the Order/Direct Commitment
Legitimate Choice/Alternative Choice
Summary Close/Summary Commitment
T-Account or Balance Sheet Commitment
Success Story Commitment
Steps in Developing the Relationship
6:15
Earn Commitment
Sales Presentation Checklist
(Exhibit )
Prospect Information
Key Person Information
Other Influences on the Purchase Decision
Needs and/or Opportunity Analysis
Statement of prospect’s problem and/or opportunity as related to sales offering
Brief description of product or service that will meet the prospect’s problem/opportunity
Prospect’s Buying Motives
Competitive Situation
Sales Presentation Objectives
Sales Presentation Planning
Specific Features/Benefits
Information to Support Claims
Reinforcing Verbal Content
First Few Minutes
The ADAPT Method
Questions and Objections
Prospect Commitment
Follow-up Action
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Follow-Up
Even the Best Planned Calls May Not Result in a Sale
4:09
Module 9
Expanding Customer Relationships
Relationship
(Exhibit )
Focus on Short-Term
Over Promise-Underdeliver
Call Sporadically
Show Up for Another Order
Can Never Reach Salesperson
Lie, Exaggerate, Blame Someone Else
Focus on Long-Term
Deliver more than Promised
Call Regularly
Add Value
Keep Communications Lines Open
Take Responsibility for Problems
Detractors
Enhancers
Harness Technology to Enhance Follow-up and Buyer-Seller Relationships
3. Know
2. Connect
4. Relate
1. Interest
The Four
Sequential
Components of
Effective Follow-up
Relationship Enhancement
Taking Action to Assure Customer Satisfaction
(Exhibit )
Preferably before they happen
Ask customer how s/he wants
complaint resolved
Resolve Complaints
Set up a regular call schedule
Let customer know you’ll be back
Continue to Call on the Customers Regularly
Go Over All Orders
Correct problem before customer
recognizes it
Correct Billing Errors
Train even when contract does not
call for it
Train Customer Personnel
Track Orders Status
Informs on Delays
Help with Installation
Expedite Orders/Monitoring Installation
Relevant
Timely
High Quality
Provide Useful Information
Salesperson Responsibility
Partnership Enhancement Activities
A Procedure to Handle Complaints
Build the relationship to the point you customers are comfortable complaining
Listen carefully and get the whole story
Ask the customer what s/he would like you to do
Gain agreement on a solution
Take action; educate the customer
Follow through on all promises—add value
Providing Quality Customer Service
“Service is advertised…
Service is talked about…
But the only time service really counts…
Is when it is delivered…
And We promise your experience with us will be outstanding.”
A sign in a small-town business reads,
Customer Expectations
Warmth and Friendliness
Reliability
Helpfulness/Assistance
Speed or Promptness
Assurance
Follow-through
Empathy
Resolution of Complaints, Mistakes, or Defects
Tangibles
Checklist for Developing a Service Strategy
What is our business?
Who are our customers?
What do our customers want and what is important to them?
How are our customers’ needs and perceptions changing?
How are social, economic, and political factors affecting current and future customer needs and our ability to respond to them? How are competitors responding to these factors?
How do the customers rate us in terms of their expectations?
What are we best known for?
What do we do best?
What can we do better?
How can we position ourselves in the market to differentiate our services?
Customer Service Dimensions
Communication, communication, communication…
Resilience…the salesperson’s ability to keep going, even when times are tough
Salesperson’s motivation to service his/her customers
1
2
3
6
7
8
14
2
3
4
5
5
5
5
5
6
1
9
10
11
12
13
16
9
10
11
12
13
14
15
21
22
31
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