Selling Ingram, Laforge, Avila, Schwepker, and Williams

Copyright © 2001 by Harcourt, Inc.

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SellingSellingIngram, Laforge, Avila, Schwepker,

and Williams

Multimedia PresentationsSteven J. Remington, Ph.D.

Buena Vista University

August, 2000


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Module 1 An OverviewAn Overview

ofofPersonal SellingPersonal Selling


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Evolution of Personal SellingEvolution 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


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Characteristics of Sales Characteristics of Sales ProfessionalismProfessionalism

• Customer Orientation

• Use of Truthful and Nonmanipulative Tactics

• Focus on Long-Term Satisfaction of Customer and Selling Firm


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Cost/Sales CallCost/Sales Call

$80-$242/ call


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Contributions of Personal SellingContributions of Personal SellingSalespeople and Society

• Salespeople as Economic Stimuli

• Salespeople and Diffusion of Innovation


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Contributions of Personal SellingContributions of Personal Selling Salespeople and the Employing Firm

• Salespeople as Revenue Producers

• Market Research and Feedback

• Salespeople as Future Managers


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Contributions of Personal SellingContributions 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:


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Classification Of Personal Selling Classification Of Personal Selling JobsJobs

• 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


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Characteristics Of Sales Characteristics Of Sales CareersCareers

• Job Security• Advancement

Opportunities• Immediate Feedback• Prestige• Job Variety• Independence• Compensation• Boundary-Role Effects


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Boundary-Role EffectsBoundary-Role Effects Role Role StressStress

• Role Conflict• Role Ambiguity• Role stress must be dealt with to insure

maximum sales productivity


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Qualifications And Skills Required Qualifications And Skills Required For Success By SalespeopleFor 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


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Managing the Sales ForceManaging the Sales Force

(1:26)


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Module 2

Understanding Buyers


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Types of Buyers

• Consumer Markets

• Business Markets


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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


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The Buying Process(Figure 2.1)

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


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Selection of an Order Routine

Evaluation of ProposalsAnd Selection of Suppliers


Acquisition and Analysisof Proposals

Recognition

Initiating the Relationship

Developing the Relationship• Select Presentation• Explain Features• Confirm Benefits• Handle Objections• Earn and Gain Commitment

Search and QualificationOf Potential Sources

Description of Item andQuantity Needed

Determination


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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


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Phase One

Recognition of the Problem or Need: The Needs Gap

(Figure 2.2)

Desired State Produce 1,250 units/day

Actual State Produce 1,000 units/day

The GapOr

Need250 units/day


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Complex Mix of Business Buyer Needs

(Figure 2.3)

OrganizationalOrganizationalNeedsNeeds

IndividualIndividualNeedsNeeds

Functional

Functional

Psychological

Psychological

Knowledge

Knowledge

Social

Social

Situational

Situational


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Phase Two

Determination of Characteristics of the Item and the Quality

Needed Phase ThreePhase Three

Description of Characteristics of Description of Characteristics of the Item and the Quality Needed the Item and the Quality Needed

Phase FourPhase Four

Search for and Qualification of Search for and Qualification of Potential SourcesPotential Sources


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Phase Five

Acquisition and Analysis of Proposals

Evaluating Suppliers and ProductsMulti-Attribute Model

– Assessment of Product or Supplier Performance (P)

– Assessing the Relative Importance of Each Characteristic (I)


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Phase FiveAcquisition and Analysis of Acquisition and Analysis of

ProposalsProposalsMulti-Attribute Model of Adhesives by

GM BuyersExhibit 2.5

Weighted Averages for Performance and Overall Evaluation Scores

Characteristics BondIt #302 AdCo #45 StikFast #217P I P*I P I P*I P I P*I

Quoted Price 5 10 50 9 10 90 7 10 70Durability 6 9 54 8 9 72 9 9 81Ease of Application 10 8 80 5 8 40 8 8 64Service Factors 5 8 40 8 8 64 10 8 80Reliability 8 7 56 10 7 70 5 7 35Bonding Time 8 6 48 6 6 36 4 6 24Non-Toxic 8 6 48 10 6 60 8 6 48Shelf-life in Storage 9 6 54 6 6 36 6 6 36

Overall Evaluation Score 430 468 438

P = Product Performance Scores I = Relative Importance of Characteristic


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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


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Phase Six

Evaluation of Proposals and Selection of Supplier

Phase SevenPhase Seven

Selection of Order RoutineSelection of Order Routine

Phase EightPhase Eight

Performance Evaluation and Performance Evaluation and FeedbackFeedback


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Phase Eight

Performance Evaluation and Feedback

• Understanding Post-Purchase Evaluation and the Formation of Satisfaction


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(Figure 2.4) Complex Mix of Business Buyer

Needs

BuyersLevel of

Satisfaction

63%Level of Influence

On Buyers’ Satisfaction

37%Level of Influence

On Buyers’ Satisfaction

Psychological

Attributes

“Delighters”

Functional

Attributes

“Must-Haves”


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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


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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


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Types of Purchasing Decisions Three Types of Buying Decisions

(Exhibit 2.6)

DECISION TYPE

Newness of Problem or NeedInformation RequirementsInformation SearchConsideration of New AlternativesMultiple Buying InfluenceFinancial Risks


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(Exhibit 2.6)

DECISION TYPE

Straight Rebuy

Newness of Problem or Need Low

Information Requirements Minimal

Information Search Minimal

Consideration of New Alternatives None

Multiple Buying Influence Very Small

Financial Risks Low


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(Exhibit 2.6)

DECISION TYPE

Straight Rebuy Modified Rebuy

Newness of Problem or Need Low Medium

Information Requirements Minimal Moderate

Information Search Minimal Limited

Consideration of New Alternatives None Limited

Multiple Buying Influence Very Small Moderate

Financial Risks Low Moderate


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(Exhibit 2.6)

DECISION TYPE

Straight Rebuy Modified Rebuy New Task

Newness of Problem or Need Low Medium High

Information Requirements Minimal Moderate Maximum

Information Search Minimal Limited Extensive

Consideration of New Alternatives None Limited Extensive

Multiple Buying Influence Very Small Moderate Large

Financial Risks Low Moderate High


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Organizational Buyer BehaviorBuying Center

• Initiators

• Users

• Gatekeepers

• Influencers

• Deciders

• Purchasers


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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


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Module 3

Building Trust


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Buyers define trust using terms such as:

• Openness• Dependability• Candor• Honesty• Confidence

• Security• Reliability• Fairness• Predictability


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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?


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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.


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How to Earn TrustTrust Builders

(Figure 3.1)

Trust

Expertise

Dependability

RepresentationCompetence

Compatibility/Likeability

Candor

Contribution

CustomerOrientation


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Knowledge Bases Help Build Trust and Relationships

(Figure 3.2)Industry

Service

ProductCompetition

Company

Price/Promotion

Technology

Market/Customer

PossibleKnowledge Bases


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Sales EthicsImage 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.


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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


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Illegal Activities

• Defraud• Con• Misuse Company Assets


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Non-Customer-Oriented Behavior

• Pushy• Hard Sell• Fast Talking• High Pressure


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(Exhibit 3.8)

Deceptive PracticesDeceptiveDeceiveHustleScam

ExaggerateWithhold

Bluff

Non-Customer-Oriented BehaviorPushy

Hard SellFast Talking

High Pressure

Illegal ActivitiesDefraud

ConMisuse Company Assets


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Module 4

Communication Skills


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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


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Verbal Communication:Questioning

Types of Questions Classified by Amount and Specificity of Information Desired

• Open-end or Nondirective Questions – free responseWhat 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 ____?


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Types of Questions Classified by Strategic Purpose

• Probing Questions – designed to penetrate below generalized or superficial information

1. Requesting Clarification “Can you share an example of that with me?”

2. Encouraging Elaboration “How are you dealing with that situation now?”

3. Verifying Information and Responses“So, if I understand you correctly… Is that right?”


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• 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…?”


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• 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…”


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• 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?”


1Guidelines for Combining Types of Questions for

Maximal Effectiveness(Exhibit 4.1)

Am

oun

t of

an

d S

pec

ific

ity

of I

nfo

rmat

ion

Des

ired

Ch

oice

fro

mA

lter

nat

ives

Dis

cuss

ion

an

dIn

terp

reta

tion

Con

firm

atio

n a

nd

Agr

eem

ent

Explore and Digfor Details

Gain Confirmation& Discover

Attitudes/Opinions

Change Topics orDirect Attention

Follow-UpPreviously Elicited

Statements

Amount of and Specificity of Information Desired

Open-end QuestionsDesigned to be

Probing in Nature

Closed-end QuestionsDesigned to be

Probing in Nature

Dichotomous orMultiple-choice Questions

Designed to beProbing in Nature


Reactive in Nature


Reactive in Nature


Designed to beReactive in Nature


Tactical in Nature


Tactical in Nature


Designed to beTactical in Nature


Evaluative in Nature


Evaluative in Nature


Designed to beEvaluative in Nature


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Verbal Communication:Strategic Application of Questioning

• Generate Buyer Involvement• Provoke Thinking• Gather Information• Clarification and Emphasis• Show Interest• Gain Confirmation• Advance the Sale


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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?”


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• 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?”


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• 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?”


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• 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?”


1Funneling Sequence of ADAPT Techniques for Needs Discovery

(Figure 4.1)

• Broad bases and general facts describing situation• Non-threatening as no interpretation is requested• Open-end questions for maximum information

Assessment QuestionsAssessment 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 QuestionsDiscovery 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 QuestionsActivation Questions

• Projects what life would be like without the problems• Buyer establishes the value of finding and

implementing a solution

Projection QuestionsProjection Questions

• Confirms interest in solving the problem• Transitions to presentation of solution

Transition QuestionsTransition Questions


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Verbal Communication:Listening(Figure 4.2)

EffectiveActive

Listening

PayAttention

MonitorNon-Verbals

Paraphraseand Repeat

Make NoAssumptions

EncourageBuyer to Talk

Visualize


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Verbal Communication:Using Different Types of Listening

• Social Listening• Serious Listening

– Active Listening

– Concentration

– Cognition


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Verbal Communication:SIER Hierarchy Active Listening

(Figure 4.3)

Sensing

Interpreting

Evaluating

Responding


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Verbal Communication:Giving Information

• Understanding the Superiority of Pictures over Words

• Impact of Grammar and Logical Sequencing


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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


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Common Nonverbal Clusters(Exhibit 4.8)

Cluster Name Cluster Meaning Body Posture & Orientation

Movement of Hands, Arms, & Legs

Eyes & Facial Expression

Openness Openness, flexibility and sincerity

• Moving closer• Leaning forward

• Open hands• Removing coat• Unbutton collar• Uncrossed arms & legs

• Slight smile• Good eye contact

Defensiveness Defensiveness, skepticism, and apprehension

• Rigid body • Crossed arms & legs • Minimal eye contact• Glancing sideways• Pursed lips• Tilted head

Evaluation Evaluation and consideration of message

• Leaning forward • Hand on cheek• Stroking chin• Chin in palm of hand

• Dropping glasses to lower nose

Deception Dishonesty and secretiveness

• Patterns of rocking • Fidgeting with objects• Increased leg movement

• Increased eye movement• Frequent gazes elsewhere• Forced smile

Readiness Dedication or commitment

• Sitting forward • Hands on hips• Legs uncrossed• Feet flat on floor

• Increased eye contact

Boredom Lack of interest and impatience

• Head in palm of hands• Slouching

• Drumming fingers• Swinging a foot• Brushing & picking at items• Tapping feet

• Poor eye contact• Glancing at watch• Blank stare


1Written Communication:

Sales ProposalsThe Seven Deadly Mistakes of Proposal

Writing1. Not writing a proposal.

2. Not fully understanding the customer’s business.

3. Missing the buyer’s deadline.

4. Producing a proposal with little “drive-up” appeal.

5. Not saying anything that really makes a difference.

6. Using a standardized boilerplate approach.

7. No one owning the responsibility or having the authority to create quality and effective proposals.


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Written Communication:Sales Proposals

5 Common Parts of a Proposal

1. Executive Summary

2. Needs and Benefits Analysis

3. Company Description

4. Pricing and Sales Agreement

5. Suggested Action and Timetable


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Module 5

Self-Leadership and Teamwork Skills


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Five Sequential Stages of Self-Leadership

(Figure 5.1)

SettingGoals &

Objective

TerritoryAnalysis &

AccountClassification

Development &ImplementationOf Strategies &

Plans

TappingTechnology

& Automation

Assessment&

Evaluation

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5


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Effective Self-LeadershipStage One: Setting Goals and Objectives

What makes a good goal?Realistic, yet ChallengingSpecific and QuantifiableTime Specific

Working with different levels and types of goalsPersonal GoalTerritory GoalAccount Goal

Sales Call Goal


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Effective Self-Leadership Stage Two: Territory Analysis and Account

ClassificationTerritory 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?


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Effective Self-Leadership Stage Two: Account Classification

Class of Account

Schema One:InquisLogic, Inc.

Schema Two:Web Resource

Associates, LLC

Schema Three:Federal Metal

Products

“A” Accounts

Accounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 24

Accounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 52

High volume current customers (20% of accts; 80% of sales)Annual # of calls = 48

“B” Accounts

Medium potential accounts (80% of accts; 20% of sales)Annual # of calls = 12

Accounts with moderate sales potential, but who are regular/reliable customersAnnual # of calls = 24

Accounts with high potential, but who are not current customersAnnual # of calls = 12

“C” Accounts

Accounts with least sales potential

Annual # of calls = 4

Lower sales potential accounts


Medium potential accounts that are current customers


“D” Accounts

None – This schema uses only 3 classes of accounts

Accounts that cost more than they produce in sales or profitsAnnual # of calls = 0

Accounts with medium potential, but who are not current customersAnnual # of calls = 6

Exhibit 5.4 – Different Single Factor Account SchemaExhibit 5.4 – Different Single Factor Account Schema


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Effective Self-Leadership Stage Two: Account Classification

(Exhibit 5.5)Portfolio Model Segments and Strategies

Competitive Position

Segment 1Level of AttractivenessSelling Effort Strategy




Strong Weak

Low

Hig

h

Acc

oun

t O

ppor

tun

ity


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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


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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


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Effective Self-Leadership Stage Five: Assessment of Performance and

Goal Attainment


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Increasing Customer Value through Teamwork

• Internal Partnerships and Teams

• Sales Partnerships

• Marketing Partnerships

• Administrative Support Partnerships

• Shipping and Transportation Partnerships

• Customer Service Partnerships


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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


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Relationship of Optimized Solutions, Trust, and Cooperation

(Figure 5.7)

Low HighMutual Cooperation

Low

Hig

h

Mu

tual

Tru

st

Competitive and Defensive Outcomes

(Win/Lose orLose/Win

Optimized andSynergistic Solutions

(Win/Win)

CompromiseSolutions


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Module 6Module 6 Personal Selling:Personal Selling:

Approaches and ProcessApproaches and Process


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Classification of Personal Selling Classification of Personal Selling Approaches Approaches

Stimulus-Response Selling(Figure 6.1)

Salesperson Provides Stimuli

BuyerResponses

Sought

ContinueProcess

untilPurchaseDecision


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Classification of Personal Selling Classification of Personal Selling ApproachesApproaches

Mental-States Selling

• Attention

• Interest

• Desire

• Action

Conviction


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Need-Satisfaction Selling(Figure 6.2)

Uncover andConfirm

BuyerNeeds

PresentOffering to

Satisfy BuyerNeeds

ContinueSellinguntil

PurchaseDecision


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Problem Solving Selling(Figure 6.3)

DefineProblem

GenerateAlternativeSolutions

ContinueSellinguntil

PurchaseDecision

EvaluateAlternativeSolutions


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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:


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Sales PlanningSales Planning

(1:39)


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Sales Process ModelSales Process Model(Figure 6.4)

SalespersonAttributes

SellingStrategy

InitiatingCustomer

Relationships

DevelopingCustomer

Relationships

EnhancingCustomer

Relationships


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Initiating Customer RelationshipsInitiating Customer Relationships Prospecting Methods

(Exhibit 6.3)

• 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


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• Compatibility• Accessibility• Eligibility• Authority• Profitability

Initiating Customer RelationshipsInitiating Customer Relationships Screening Criteria


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Initiating Customer RelationshipsInitiating Customer Relationships Prospecting Issues

• Which method works best?• Cold-call reluctance• Using technology to complete the

basic tasks of prospecting– Tele-prospecting


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Initiating Customer RelationshipsInitiating 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)


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Sales-Presentation PlanningSales-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


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• 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


Organized Sales Presentation


1

• 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 Proposal


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Sales Mix ModelSales Mix Model(Figure 6.5)

PresentationPace

PresentationScope

Depth ofInquiry

Use ofVisual Aids

Two-WayCommunication

Prospect


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Approaching the CustomerApproaching 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


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Developing Customer RelationshipsDeveloping Customer RelationshipsSales Presentation Delivery

• Building Credibility– Personal Behavior

– Sales Techniques• Conservative Claims

• Third-party Evidence

• Testimonials

• Guarantees and Warranties

• Achieving Clarity• Addressing Customer Concerns


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Gaining Customer CommitmentGaining 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


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Relationship Enhancement Relationship Enhancement Activities Activities

• Entering orders• Expediting orders• Installing the product or service• Training customer personnel• Resolving complaints• Correcting billing errors


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Module 7 Initiating the Relationship


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The Challenges of Prospecting

5% of unplanned cold calls result in a sale…

Roughly 25-30% of preplanned calls produce a sale


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The Challenges of ProspectingBuyers will not take the time to see a

salesperson because:1. They may have never heard of the salesperson’s firm.

2. They may have no need; they just bought the product category.

3. The buyer may have their own deadlines on other issues.

4. Buyers are constantly getting calls from salespeople and do not have the time to see them all.

5. Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.


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The Challenges of ProspectingStrategic Prospecting

(Figure 7.1)

Sales Lead Qualified ProspectProspect

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?”


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The Challenges of ProspectingLocating 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)


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The Challenges of ProspectingQualifying Prospects

1. Can benefit from the sales offering.

2. Have the financial wherewithal to make the purchase.

3. Play an important role in the purchase decision process.

4. Are eligible to buy based on a fit within the selling strategy.

5. Are reasonably accessible and willing to consider the sales offering.

6. Can be added to the customer base at an acceptable level of profitability

At a minimum, qualified prospects are those who:


1Obtaining Precall Information on the

Buyer(Exhibit 7.4)

Information Needed How to Collect Information

The prospect’s name and title

Correct spelling and pronunciation

Can be gathered by asking the receptionist or secretary or gatekeeper to verify information.

Is this prospect willing to take risks?

Are they confident with their decision making?

May have to ask the prospect

Is the buyer involved in their community?

Do they belong to clubs or professional organizations?

Observe club or organizational honors displayed in the office.

Does the prospect have hobbies or interests they are proud of?

Observation of office.

What is the prospect’s personality type? Easy going? All business?

Observation and experience with buyer.

Where did this prospect grow up?

Where were they educated?

Look for diplomas. Ask.


1

Gathering Information on the Prospect’s Organization

(Exhibit 7.5)Information Needed How to Collect Information

What type of business are we dealing with? Can be gathered from a directory.

To what market does the company sell?

Who are its primary competitors?

What does the company make and sell?

Annual reports.

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?

Salesperson may have to ask for this information.


1

Determining Other Buyer’s Influences

(2:45)


1

Planning the Initial Sales CallEstablishing Presentation Objectives

1. Getting the order is the ultimate objective.

2. To introduce the salesperson and his/her company.

3. To obtain personal and business information.

4. To provide company literature.

5. To conduct a needs assessment.

6. To demonstrate a new product offering.

7. To provide postsale service.


1

Planning the Initial Sales Call

Approaching and Initiating ContactIntroduction ApproachProductivity Approach

Benefit ApproachQuestion ApproachReferral Approach

Compliment ApproachSurvey Approach


1

Assessing the Situation and Discovering Needs through

Questioning Skills

Assessment QuestionsAssessment Questions

Discovery QuestionsDiscovery Questions

Activation QuestionsActivation Questions

Projection QuestionsProjection Questions

Transition QuestionsTransition Questions

Figure 4.1 – The Adapt Process


1 Questioning and Listening…the key element of good

communication


1

Module 8

Developing the Relationship


1

Steps in Developing the Relationship

Approach

Determine Needs

Select Presentation

Presentation

Handle Objections

Earn Commitment

Follow-Up


1


Approach


1


Approach

(1:28)


1


Approach

Determine Needs


1

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.


1

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


1

Selecting Appropriate Customer Offerings by Assessing Competitive Situation

Understanding a competitor’s strengths/weaknesses allows the salesperson to put the best solution

forward.


1


Determine Needs

(1:28)


1


Approach

Determine Needs

Select Presentation


1

Types of Sales Presentations

• Canned Presentations

• Organized Presentations


1

The Trust-based Selling Process:A Needs-Satisfaction Consultative Model

(Figure 8.3)

InformationGathering

Approach Presentation HandlingResistance

EarnCommitment

Follow-up

100%

Rel

ativ

e P

arti

cip

atio

n R

ate

Need Development

Need Awareness

Need Fulfillment

A D A P TAsse

ssment

Discovery

Activati

on

Projectio

n

Transiti

on

Select

Featur

e

Explai

n Adv

antag

e

Lead t

o Ben

efits

Let Cus

tomer

Talk

SE

LL

% Time“The Salesperson”Talks/Participates

% Time“The Customer”

Talks/Participates


1

Types of Sales Presentations

• Canned Presentations

• Organized Presentations

• Sales Proposals


1


Approach

Determine Needs

Select Presentation

Presentation


1

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:


1

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


1

Concluding the Customized Presentation

Linking Solutions to NeedFeatures Potential Benefits Confirmed Benefits/Unconfirmed

Natural surface cohesiveness

of ultramid, a high tech plastic

golf club

Better launch angle Golf Pro doe not see this as true benefit-not comfirmed

Golf Pro has easy time selling longer distance-confirmed benefit

Bell shaped nozzle on vacuum cleaner

Optimum air flow improves cleaning ability.

Hard for most consumer’s to understand how bell shape improves cleaning-not confirmed

Daily delivery of Frito-Lay potato chips

Retailer can reduce inventory costs

Product freshness leads to customer satisfaction

Not a serious issue for this retailer-not confirmed

Store manager puts huge emphasis on product freshness-confirmed benefit

Technical Support personnel for a computer system

Assistance in installation, maintenance, and expansion

Support is needed-confirmed benefit


1


Approach

Determine Needs

Select Presentation

Presentation

Handle Objections


1 Anticipating and Negotiating Concerns and ResistanceReasons 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.


1

Anticipating and Negotiating Concerns and Resistance

Types of Objectives• Forestalling

• Price is Too High

• Product Objection

• Company Objection

• No Need


1

Anticipating and Negotiating Concerns and Resistance

Listen

Acknowledge

Assess

Respond

Confirm


1


Handle Objections

5:36


1


Approach

Determine Needs

Select Presentation

Presentation

Handle Objections

Earn Commitment


1

Securing Commitment and ClosingGuidelines 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.


1

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


1


6:15

Earn Commitment


1

Sales Presentation Checklist(Exhibit 8.10)

1. Prospect InformationA. Key Person InformationB. Other Influences on the

Purchase Decision

2. Needs and/or Opportunity Analysis

A. Statement of prospect’s problem and/or opportunity as related to sales offering

B. Brief description of product or service that will meet the prospect’s problem/opportunity

3. Prospect’s Buying Motives

4. Competitive Situation

5. Sales Presentation Objectives

6. Sales Presentation PlanningA. Specific Features/Benefits

B. Information to Support Claims

C. Reinforcing Verbal Content

D. First Few Minutes

E. The ADAPT Method

F. Questions and Objections

G. Prospect Commitment

H. Follow-up Action


1


Approach

Determine Needs

Select Presentation

Presentation

Handle Objections

Earn Commitment

Follow-Up


1

Even the Best Planned Calls May Not Result in a Sale

4:09


1

Module 9

Expanding Customer Relationships


1

Relationship(Exhibit 9.1)

Enhancers Detractors

Focus on Long-Term

Deliver more than Promised

Call Regularly

Add Value

Keep Communications Lines Open

Take Responsibility for Problems

Focus on Short-Term

Over Promise-Underdeliver

Call Sporadically

Show Up for Another Order

Can Never Reach Salesperson

Lie, Exaggerate, Blame Someone Else


1

Harness Technology to Enhance Follow-up and Buyer-Seller

Relationships

3. Know

2. Connect

4. Relate

1. Interest

The FourSequential

Components of Effective Follow-up


1

Relationship EnhancementTaking Action to Assure Customer Satisfaction

(Exhibit 9.2)

• 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 ResponsibilityPartnership Enhancement Activities


1

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


1

Providing Quality Customer Service

“Service is advertised…

Service is talked about…

But the only time service really counts…

Is when it is delivereddelivered…

And WeWe promise your experience with us will be outstanding.”

A sign in a small-town business reads,


1

Customer Expectations• Warmth and Friendliness• Reliability• Helpfulness/Assistance• Speed or Promptness• Assurance• Follow-through• Empathy• Resolution of Complaints,

Mistakes, or Defects• Tangibles


1

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?


1

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

Documents

Selling Ingram, Laforge, Avila, Schwepker, and Williams