Final Exam personal selling

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modules 6-10

canned presentation

sales presentation that includes scripted sales calls, memorized presentations, and automated presentations. little training is required; inflexible/not customizable; difficult to build trust

organized presentation

Extensive training is required: customizable; interactive fosters trust

Sequence of the Sales Presentation

1. Introduction
2. Need discovery
3. Present benefits addressing the buyer's explicit needs
4. Continuation of prior sales calls should start with a summary of earlier calls
5. Pricing issues should not be focused on until the customer's needs have been defined and addressed

components of a sales proposal

executive summary
situation analysis
needs benefits analysis
company description
pricing and sales agreement
suggested action and timetable

Five mental steps in buying

1. attention
2. interest
3. desire
4. conviction
5. purchase

ways to approach a prospect

introductory approach
product approach
benefit approach
question approach
referral approach
compliment approach
survey approach

Why is it important to uncover the needs of the prospect and match them with the benefits of your product in the presentation?

So that you can focus on your products or services that will the solve the customers problem or meet the specific needs(pg150)

types of sales presentations

Memorized selling: structured
need satisfaction selling: Unstructured
problem solution selling: customized
Formula Selling: Semi-structured

proxemics

refers to the personal distance that individuals prefer to keep between themselves and other individuals and is an important element of nonverbal communication

different types of objections

-Need
-product or service features
-company or source
-price
-time(stalling)

handling objections(LAARC)

Listen
Acknowledge
Assess
Respond
Confirm

methods for handling resistance

Forestall
Direct Denial
indirect denial
compensation
question
third party reinforcement

Forestall

introduce the source of the objection before the prospect brings it up

direct denial

Respond to the objection by telling the prospect s/he is wrong

indirect denial

respond to the objection by providing evidence that helps the prospect realize s/he is mistaken

compensation

counterbalance the objection with an offsetting benefit question: ask the buyer assessment questions to gain a better understanding of the source of the objection

third party reinforcement

use the opinion or data from a third party source to help overcome the objection and reinforce the salesperson's points

different ways of earning commitment

-ask for the order/direct commitment
-legitimate choice/alternative choice
-summary commitment
-t-account or balance sheet commitment
-success story commitment

What constitutes a commitment

an appointment
agreement for next meeting
agreement for product demo
a sale

importance of followup and customer retention

1) 7-10 times more expensive to get a new customer compared to retaining an old one.
2) 5% increase in customer retention can increase profits from 25% to 125%
3) most fortune 500 companies lose 50% of their customers in five years

Importance of managing expectations

failure to meet expectations results in dissatisfaction
meeting expectations results in satisfaction
exceeding expectations results in delight

Three Steps to resolving Complaints

Listen carefully and get the whole story
Ask the customer what s/he would like you to do
Negotiate an agreeable solution

Resolving Complaints

1) Gain agreement on solution
2) Take action; educate the customer
3) Follow through on all promises -- add value

Relationship Detractors

-Focus on short-term
-Over Promise-Under Deliver
-Call Sporadically
-Show Up for Another Order
-Can Never Reach Salesperson
-Lie, Exaggerate, Blame Someone else

relationship enhancers

- focus on longterm
- deliver more than promised
- call regularly
- add value
- keep communications lines open
- Take responsibility for Problems

Four Sequential Components of Effective Followup

1) Interact- maximize number of critical encounters
2) Connect- maintain contact with multiple members of the buying team and maintain consistency of the message
3) Know- interpret the gathered information from multiple sources and develop insights into buyers' changing needs and expectations
4) Relate- apply relevant understanding and insight to create value-added interactions and generate relationships

Relationship enhancement activities

-Providing useful information
-Expediting orders and monitoring installation
-Training customer personnel
-Correcting billing errors
-Remembering the customer after the sale
-Resolving complaints

Three steps to resolving complaints

-listen carefully
-ask the customer what s/he would like you to do
-negotiate an agreeable solution

Different types of prices

-list price
-net price
-zone price
-FOB shipping point
-FOB destination

list price

standard price charged to customers

net price

price after allowance for all discounts

zone price

price based on geographical location or zone of customers

FOB shipping point

FOB(free on board) means the buyer pays transportation charges on the goods--- the title passes to the customer when the goods are loaded on the shipping vehicles

FOB destination

the seller pays all shipping costs

Nine components in the sales Dialogue Template

prospect information
customer proposition
sales call objective
situation and needs analysis
competitive situation
beginning sales dialogue
anticipate questions & objections
earn prospect commitment
building value through follow-up action

What is the SPES sequence for presenting sales aids?

-State the selling point and introduce the aid
-present the aid
-explain the aid
-summarize sales aid

Different types of account classifications

-single-factor analysis
-portfolio analysis

Single-factor analysis

ABC analysis the simplest and most often used method for classifying accounts. Accounts are categorized on the basis of a single factor and placed into three or four categories

Portfolio Analysis

classification allows two factors to be considered simulataneously

Different types of Routing plans

1) straight line route pattern:
2) cloverleaf pattern
3) circular route pattern
4) leapfrog pattern
5) major city pattern

Types of discounts

1) non-cumulative quantity discounts
2) cumulative quantity discounts
3) cash discounts
4) trade discounts
5) consumer discount:

non-cumulative quantity discounts

one time reduction in prices commonly used in both consumer and industrial goods

cumulative quantity discounts

discounts the customer receives for buying a certain amount of products over a stated period

cash discounts

earned when buyers pay their bill within a stated period

trade discounts

manufacturer reduces prices to channel members to compensate for services they perform

consumer discount

one-time price reductions the producer passes on to channel members or directly to the consumer

Written proposal

Some training is required; customizable while being written but not delivered; may be percieved as more credible

check back or response check

questions salespeople use throughout a sales dialogue to generate feedback from the buyer

ADAPT

Assessment
Discovery
Activation
Projection
Transition

Steps in the Selling Process

1. prospecting
2. Preapproach
3. approach
4. presentation
5. trial close
6. objections
7. meet objections
8. trial close
9. close
10. Follow-up

Self-Leadership

the process of first deciding what is to be accomplished and then placing into motion the proper plan designed to achieve those objectives

Five Sequential Stages of Self-Leadership

1. Setting Goals and Objectives
2. Territory Analysis and Account Classification
3. Development and Implementation of Strategies/Plans
4. Tapping Technology and Automation
5. Assessment and Evaluation

Characteristics of effective sales goals

1. Realistic, yet challenging
2. specific and quantifiable
3. Time specific

Sources of power

- Expert power
- referent power
- coercive power
-reward power
-legitimate power

The human needs (Tony Robbins)

-certainty
-uncertainty
-significance
-connection and love
-needs of spirit

The dimensions of motivation

-Intensity:
-Persistence:
-Direction:

straight line route pattern

territory routing plan in which salespeople start from their offices and make calls in one direction until they reach the end of the territory.(located in clusters away from one another)

cloverleaf pattern

territory routing plan in which the salesperson works a different part of the territory and travels in a circular loop back to the starting point.(concentrated in clusters, in different locations)

circular route pattern

territory routing plan in which the salesperson begins at the office and moves in an expanding pattern of concentric circles that spiral across the territory. (evenly distributed)

leapfrog pattern

routing plan in which, beginning in one cluster, the salesperson works each of the accounts at that location and then jumps to the next cluster.(widely dispersed)

major city pattern

a territory routing plan used when the territory is composed of a major metropolitan area and the territory is split into a series of geometric shapes reflecting each ones concentration and pattern of accounts

Determine Markup based on price

% markup on price = (amount added to cost/selling price)

Determine Markup based on cost

% Markup based on cost = (amount added to cost/cost)

Markup

dollar amount added to the product cost to determine its selling price

gross profit

money available to cover the costs of marketing, operating the business, and profit.

net profit

the money remaining after the costs of marketing and operating the business are paid

sales call

An in-person meeting between a salesperson or sales team and one or more buyers to discuss business.

sales dialogue

Business conversations between buyers and sellers that occur as salespeople attempt to initiate, develop, and enhance customer relationships. Sales dialogue should be customer-focused and have a clear purpose.

sales presentations

Comprehensive communications that convey multiple points designed to persuade the customer to make a purchase.

sales dialogue template

A flexible planning tool that assists the salesperson in assembling pertinent information to be covered with the prospect.

customer value proposition

A statement of how the sales offering will add value to the prospect's business by meeting a need or providing an opportunity.

features

a quality or characteristic of a product or service that is designed to provide value to a buyer

benefits

the added value or favorable features of the product or service the seller offers

confirmed benefits

the benefits the buyer indicates are important and represent value

The four levels of sales goal

1. personal goals
2. sales call goals
3. account goals
4. territory goals

expert power

influence based on special skills or knowledge

referent power

power that results from characteristics that command subordinates' identification with, respect and admiration for, and desire to emulate the leader

coercive power

power that stems from the authority to punish or recommend punishment

reward power

power that results from the authority to bestow rewards on other people

legitimate power

power that stems from a formal management position in an organization and the authority granted to it

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