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Professional selling test 2
Terms in this set (119)
Define prospecting- why is it important
the process of locating potential customers for a product or service- the world is constantly changing and sp must find new customers to replace w those who switch to comp, go bankrupt, move territory, merge w non-customers, or decide to go without the product or services.
What does prospecting begin with? Define it
Lead: "suspect" a potential prospect that may or may not have what it takes to be a true prosepect
To avoid the mistake of makeing a customer a prospect to early what should a salesperson do?
Qualify the lead: the process of determining whether a lead is in fact a prospect
What are the 8 steps of the selling (sales) process?
1. Prospecting 2. Collecting pre-call info 3. making the approach 4. discovering needs 5. making the presentation 6. Respond to objections 7. obtaining commitment 8. Follow-up (this is the goal)
When is a prospect not a prospect?
When he/she isn't a qualified prospect (money to buy, authority to buy, or desire to buy)
What is a qualified prospect?
can benefit from the sales offering, have the financial ability to make purchase, play important role in purchase decision process, eligible to buy based on a fit within the selling strategy, reasonably accessible and willing to consider the sales offering, and can be added to the customer base at an acceptable level of profitability
What is the most difficult areas of marketing on the web? why
Search engine placement, because they don't have a proper category for the products a firm sells.
What stages can qualifying occur in?
Prospecting, pre-call info, making the approach, and discovering needs
When determining if a lead is a prospect what factors are important to look at?
Type of product or service, value of the salesperson's time, and the profit per sale.
The more accurate the qualifying process the _____ the proportion of ________ per qualified needs.
What are the external sources of prospecting?
Referrals (removes uncertainty), introductions, community contacts, organizations, non-competiting salespeople, and visible accounts
What are the internal sources of prospecting?
company records, advertising inquiries, mail inquiries, lists and directories, telephone inquiries, and internet
What are the person contact prospecting sources?
observation, trade shows, cold canvassing, bird dogs (spotters)
Who has the authority to buy products and services on behalf of the delegating firm?
Most companies operate on the basis of what?
Exclusive sales territories (meaning that a particular salesperson can sell only to certain prospects)
What are house accounts?
large customers or potential customers that are handled exclusively by corporate executives
What are the common sources of leads?
Satisfied customers, endless chain, networking, center of influence, social media, other internet uses, ads, direct mail, shows, fairs, lists and directories, data mining and CRM systems, cold calling, spotters, telemarketing, and sales letters
What are promoters?
your most loyal customers who not only keep buying from you but also urge others to do the same.
What is the best source for locating prospects?
What does effective prospecting require?
A strong plan that hinges on developing a lead qualification and management system and overcoming reluctance to prospect
What is the planning process?
1. Gathering information about the prospect and firm.
2. setting objectives for the call
3. making an appointment
What is the result of having a clear plan for a sales call?
the salesperson is also more likely to obtain commitment by winning the buyer's respect and confidence- Better territory management
What should a salesperson attempt to learn about a prospect or customer?
Personal info: name, family status, education, social style, aspirations, and interest
Attitudes: toward salespeople, your company, and your product
Relationships: formal reporting, important reference groups, bonds formed with other salespeople
Evaluation of products/services: product attributes, product evaluation
What is analysis paralysis?
A trap that can occur if you spend practically all your time analyzing situations and finding information instead of making sales calls.
What are useful databases salespeople can obtain from within their company?
Information about any direct inquiries made by the prospect, sales history for the firm, whether anyone form your co has called on the prospect, and the results of any sales meetings.
What are firms using to keep the field sales force well informed?
Sales portals: online databases that include many sources of info in one place
What is a popular traditional secondary source?
Standar and poor's and Moody's: they publish a number of manuals and directories that are available in libraries. These sources can help answer questions about brand names, key contacts, historical info, the current situation and outlook for the firm and industry, and so on.
What are two good sources for collecting international pre-call information?
U.S. commercial service market research library and the U.S. government's export portal
What is the most important step in planning for a sales call?
Setting objectives for a call. The salesperson should review what has been learned from pre-call info and apply it to the call objectives
Who's goals should be taken into account when developing sales call objectives?
Firm's, sales team's and the salesperson's goals.
All effective objectives should be what?
Specific (should state precisely what the salesperson hopes to accomplish, what the objective targets are, and any other details.)
Realistic (consider factors such as cultural influences) measurable (so salespeople can evaluate each sales call at its conclusion and determine whether the objectives were met)
What is used to help salespeople remember how to set proper call objections?
S:specific M:measurable A:achievable R:realistic T:time frame
What are the 5 categories for sales call objectives?
1. build relationships 2. get information 3. give information 4. create action 5. service (intention turn every customer contact into a sales call)
Salespeople must set multiple objectives for a sales call. What are they?
Primary call objective (actual goal they hope to achieve)
Minimum call objective (the min they hope to achieve)
Optimistic call objective (the most optimistic outcome the salesperson thinks could occur- this relates to what the sp wants in the long-run) Secondary call objectives (all other call objectives besides primary ones)
What are the benefits of having many call objectives?
1. they help take away the salesperson's fear of failure bc most salespeople can achieve at least their state minimum objective 2. multiple objectives tend to be self-correcting
By developing a series of specific objectives for future calls the salesperson can develop what for the prospect or customer?
A comprehensive strategy that is important in a partnering relationship
What is the customer value proposition?
A written statement that clearly states how purchasing your product or service can help solve the customer's perceived business issue. This focuses on what an individual manager needs to address and resolve to be able to better contribute to overall company objectives
What are four common "BI's" or business issues?
1. increase revenue, market share, and shareholder value
2. increase efficiency and productivity
3. manage costs.
4. control quality and reliability
Why is making an appointment important?
Appointments dignify the salesperson and help get the sales process off to a good start by putting the salesperson and the prospect on the same level
What is the focus of receptivity?
The person who will listen receptively and give the seller needed valuable info
The focus of receptivity then leads the salesperson to what?
Focus of dissatisfaction: the person who is most likely to perceive problems and dissatisfactions.
The focus of dissatisfaction then leads the salesperson to what?
The focus of power: the person who can approve, prevent, and/or influence action
What are 3 strategies to interact with a screen or barriers?
"Through the screen" convince gatekeeper a meeting with the boss is in the boss's best interests
"Over the screen" seller drops names of people higher up in the organization
"Under the screen" tries to make contact with the prospect before or after the screen gets to work
What does developing a clear sales plan do for both salespeole and customers?
Saves time and helps salespeople increase their confidence and reduce their stress
Salespeople need to gather as much info about the ______ and the ______ before the first call.
Prospect and the prospect's organization
Sources of a prospect and prospect's organization information include what?
Lists, directories, secretaries and receptionists, non-competiting salespeople, and direct inquiries
To be effective a call objective should be what?
REalistic, Measurable, and specific. In situations requiring several calls the salesperson should develop a plan with call objective for each future calls
What does making an appointment before calling on customers enable?
Enables the salesperson to talk to the right person at the customer's site
What is the most effective method to make appointments?
Straightforward telephone approach.
What is the result of a salesperson having more information about the prospect in the precall information stage?
There is a higher probability of meeting the prospects needs and developing a long-term relationship.
What should salespeople know about the prospects/customers organization? And what does having this type of information do for the salesperson?
Historical buying patterns
Current buying situation
Policies and procedures
People involved in the purchase decision (page 182)
This info lets the salesperson identify problem areas more quickly and respond accordingly and helps them understand the customer's environment.
What is the goal of gathering sources of information?
To not gather every single piece of information but to gather info that is both possible and profitable. Bc your time is valuable and you want to avoid analysis paralysis
What should a salesperson do before a sales call?
Before a sales call: send a letter of introduction -secure an apt over the phone -prepare a call plan -confirm the apt -gather and prepare professional material -rehearse -ACT
What are things to remember when making an appointment?
Its not easy be persistent and creative
Appointments insure an audience with the prospect
Be professional and respectful when making the appointment
Stay in touch through email
Why should you plan a sales call?
It builds self-confidence
and answers "How am I doing?"
What are the basic elements of the customer profile?
Customer's needs, who makes the buying decision, background info, desired business terms, who's your competition and what do they offer, and purchasing policies
What is seeding and what do prospective businesses think about it?
Seeding is sending the customer important and useful information prior to the meeting. The prospect sees this as the salesperson is someone who is trying to be truly helpful and is someone who really understands the prospect's business.
What does developing a clear plan for the sales call do?
It saves time for both the salesperson and the customers and helps salespeople increase their confidence and reduce their stress
As part of the planning process what do salespeople need to do before the first call?
They need to gather as much information about the prospect as possible before the first call. They need info about both the individual prospect and their organization. Sources of this info include lists and directories, secretaries and receptionist, non-competiting salespeople, visible accounts, customer contacts, organizations, introductions, and referrals.
To be effective a call objective must be "SMART" but a salesperson should develop a plan with call objectives for each ____. What are the multiple levels of objections?
Future call: Primary, minimum, and optimum
Salespeople should make appointments before calling on customers what does this approach enable.
It enables the salesperson to talk to the right person at the customer site. The most effective method used to make appointments is straightforward telephone approach.
What are the three phases a salesperson goes through upon initial customer contact?
Phase one: initial contact (social amenities, get prospect to talk about situation, verify info obtained by prospect and other sources, determine whether to continue the interview and make diagnostic decisions- 5 min)
Phase two: middle (get reactions and info, giving info- lasts 10 min)
Phase three: conclusion (answer question, summarize discussion, make future arrangements, social amenities- lasts 5 min)
What is the structure of initial contact?
Need to verify info gathered from prospecting
Get additional info about the prospects situation and their true needs
Average duration is 20 min.
What are the variables of initial contact?
Say the customer's name, say your name and your company's name, thank the prospect, state your purpose for the call, exhibit purposefulness, verify info, ask developmental questions, establish mutual compatibility, begin to develop empathy
What are the essential elements of a sales call?
make a good impression- identifying or reiterating needs- offering the solution to the buyers needs- credibility and trust- Then adjusting (assessing the buyer's reactions and making adjustments)
How can salespeople manage the buyer's impression of them?
Through impression management, being well prepared is the most important way to ensure a good first impression
What does the content of the sales call depend upon?
The specific situation the salesperson encounters as well as the extent of the relationship the salesperson has already established with the other party
What is the halo effect?
It is how and what you do in one thing changes and person's perceptions of other things you do and seems to operate in many sales calls
What is an opening statement designed to do?
It is designed to get the prospects attention and interest quickly and to make a smooth transition into the next part of the presentation which is usually used to discover the prospect's needs. Each situation is unique and a salesperson should adapt accordingly
What are the different opening methods used to gain a prospects attention?
Introduction (Introduce yourself) Referral (tell ab someone who referred you to the buyer) Benefit (start by telling some benefit of the product) Product (actually demonstrate a product feature and benefit as soon as you walk up to the prospect) Compliment (start by complimenting the buyer or the buyer's firm) Question (start the conversation with a question)
When selecting a seat inside the prospects office what is a good way to determine when and where you sit?
Identify the prospect's social style
What is rapport and how does a salesperson develop it with a prospect?
Rapport in selling is a close, harmonious, relationship founded on mutual trust. It can be established when the prospect perceives you to be like them in some way and this is ultimately every salespersons goal. This could be accomplished with a friendly conversation early in the sales call.
How does a salesperson engage in small talk more effectively?
By first performing an office scan (look around the prospect's environment for relevant topics to talk about)
What is the best line of defense when something goes wrong in a sales call?
Maintain the proper perspective and a sense of humor.
What do developmental questions do? Why should you use them?
They get the customer to talk about the situation and they are designed to promote discussion of ideas, feelings, or events by the prospect about a general topic area when the salesperson feels it is important or when it is introduced by the buyers. This establishes an expectation of how the prospect and the salesperson will interact during the interview
What do closed questions do?
Make the buyer feel interrogated, provides no info, and the salesperson has to think of all the questions
When should you use developmental questions?
At the beginning to introduce a general topic of discussion. Usually related to the salesperson's reason for calling on the prospect. They are also used to refocus the direction of the buyer talking behavior or during the lulls of the conversation. The goal is to always ask more!
What is the SPIN model?
SPIN is a method of discovering needs through a series of logical needs identification questions. S: situation questions P: problem questions I: implication questions N: need-payoff questions SPIN actually helps the prospect identify unrecognized problem areas.
Describe each stage of the SPIN model
S: Situation questions: (about the existing buyers situation)
This establishes background info so you can ask...
P: Problem Questions: (about the buyers problems, difficulties, and dissatisfactions) this reveals the Implied Needs: (buyer statements of problems with existing situation)
Then you develop problems using...
I: Implication Questions:(about effects or consequences of buyer's problems) These make the problem clearer and more significant.
N: Need -payoff Questions: (about the importance of solution to buyer's problem increasing the attractiveness of your solution- focus C on solutions and actions) leading too
Explicit Needs: (buyer statements of clear wants and desires your product/service can meet) which finally allows you to offer Benefits: (showing how your product/service meets an explicit need)
When trying to make a good impression in a sales call what are things to focus on?
Waiting for the prospect (amount of time you wait to see them), First impression (observe moods), selecting a seat (identify social style), getting the customers attentions (use opening statements 6 of them), and develop rapport
After catching a customers attention we move to identifying the prospects needs, when doing so what information do you start out with? And how do you make this transition?
You should attempt to uncover the prospect's needs and problems at the start of the relationship, not talk about product information. And to transition ask developmental questions to assure you have followed what the customer has been saying.
What is the process of uncovering the customers root problem or need?
"Discovering the root cause of the need" The need behind the need. Continue to probe with questions until you discover this need
What are the two systems of needs identifications?
Asking open (require the prospect to go beyond a simple yes or no response- helps paint a broader picture) and closed questions (simple answers
When does the SPIN model work for salespeople?
When they are involved in major scale: one that involves a long selling cycle, a large customer commitment, ongoing relationship, and large risks for the prospect if a bad decision is made.
What does SPIN actually help the prospect identify?
Unrecognized problem areas
Describe situation questions.
These a general data gathering questions about background and current facts. The goal is to better understand the prospect's current situation. Many of these questions should be answered through precall info gathering and planning. Can cause buyer to become bored and impatient if overused.
Describe Problem questions.
When SP ask about specific difficulties, problems, and dissatisfactions the prospect has. The goal is to discover a problem and uncover implied needs.
Describe Implication questions.
They are questions that logically follow one or more problem questions and are designed to help the prospect recognize the true ramifications of the problem. The goal is for the prospect to see that the identified problem has some serious ramifications and implications that make the problem worthy of being resolved. They attempt to motivate the prospect to search for a solution to the problem. Uncovers explicit needs.
Describe need-payoff questions.
When sp ask questions about the usefulness of solving a problem. Need-payoff questions are solution centered questions. If the prospect responds negatively the sp has not identified a problem serious enough for the prospect.
What is one critical advantage of SPIN?
In encourages the prospect to define the need not the salesperson. Because the salesperson is focused on the problem not their product, the prospect sees them as someone who is trying to help.
When developing a strategy for the presentation what should a salesperson not do?
They should avoid feature dumping (talk about lots of features that are of little interest to the customer) The salesperson should sort through the various options available to the seller to see what is best for this prospect
In addition to discovering the buyers needs what else should salespeople learn about the prospect?
Learn about the decision making process, buyers time frame for making a decision, and the money budgeted
What are the stages of a sales call?
1. Preliminary stage (warming up before the selling begins, get to bus quickly, don't talk about solutions to soon, concentrate on questions)
2. Investigation (uncovering needs or gaining a better understand of your C, their organization, company, industry, etc) 3. Demonstrating capability (show you have something worthwhile to offer- your helping solve their probs and meet their needs) 4. obtaining commitment (a commitment to meet again)
When making the approach to the presentation what does this step include?
Relating product or service features that are meaningful to the buyer, assessing the buyers reaction to what is being said, resolving objections, and obtaining commitment
What is a feature? A benefit?
A feature is a quality or characteristic of the product or service. A benefit is the way in which a specific feature will help a particular buyer and is tied directly to the buying motives of the prospect
What is the way in which a salesperson shows how a product addresses the buyer's specific needs?
Customer benefit proposition
What are two other ways salespeople can go beyond mentioning features and benefits?
FAB (features, advantages, and benefits)
FEBA (features, evidence, benefits, and agreement)
What are ways in which a salesperson could assess a prospect's reactions?
Nonverbal cues, verbal probing (use a trial close- take the pulse of the situation), and Making adjustments
What does using probing questions help achieve?
first, allows for a two way conversation second, probing lets the sp see if the buyer is listening and understanding what is being said third, the probe may show that the prospect s uninterested in what the salesperson is talking about. Avoid select perception (only hearing what we want to hear)
If a prospect doesn't believe a seller has the appropriate product knowledge what should the salesperson do?
Do not continue with the sales presentation, instead focus on establishing credibility in the eyes of the prospect.
To develop a close harmonious relationship the salesperson must be perceived as having what?
Credibility (they must be believable and reliable)
What is the purpose of a credibility statement? What is the most effective way to establish credibility?
The purpose of the statement is to help the buyer realize you are capable of meeting their needs. It is to make a balanced presentation that shows all sides of the situation (that is to be totally honest)
How can salespeople develop credibility?
Adhering to stated appointment lengths, backing up statements with proof, offering a balanced presentation, and establishing credetials
Which stage of the sales call is the most important?
Small sale: obtaining commitment
Larger sale: Investigation
Define the endless-chain method.
Sales representatives attempt to get at least one additional lead from each person they interview works best when the source is a satisfied customer and partner.
What is the most successful type of lead?
A referred lead: the name of a lead is provided by either a customer or a prospect
What is the center of influence method of networking?
The salesperson cultivates a relationship with well-known influential people in the territory who are willing to supply the names of leads but they may never buy.
What is a buying community?
A small informal group of people in similar positions often from several companies who communicate regularly both socially and professionally.
How do you find centers of influence?
By asking customers and prospects whom they consider to be the most influential person in their industry or association. Then actively cultivate the relationship.
What is a trade show and merchandise market?
Trade show: short, temporary exhibitions of products by manufactures and resellers
Merchandise market: places where suppliers have sales offices and buyers from resellers visit to purchase merch.
What are sophisticated firms developing?
They are developing integrated databases that contain info about leads, prospects, and customers
What are progressive firms using to discover insights hidden in the volumes of data in their databases?
Data mining which consists of artificial intelligences and statistical tools.
Many firms view prospecting as what?
A funneling process in which a large number of leads are funneled into prospects and some finally into customers. However 80% of leads are not followed up by salespeople.
Salespeople need to develop a process for qualifying leads using ____ and then carefully analyze the relative value of each use _______.
Lead qualification system. lead management system.
What is the first step in the sales process?
Locating prospective customers. new prospects are needed to replace old ones for a variety of reasons and to replace contacts lost in existing customers bc of plant relocations, turnover, mergers, downsizing, and other factors.
What 5 characteristics does a qualified prospect possess?
The ability to pay, The authority to buy, has a need or want that can be satisfied by the product or service your offering, can be approached by the salesperson, and eligible to buy
What are characteristics buyers look for to increase value from sales calls?
On-timer delivers, quality of products, competitive pricing, proper packaging/paperwork, technical support/service, quality of sales calls, level of technological innovation, and good emergency response.
Explain the problem/solution model.
Begins with the "business model" which are the customers needs that are identified by the salesperson. Based on these needs the salesperson identifies the features and benefits that are important to that particular customer. Then the sp creates the urgency to BUY NOW! And finally results in an increase in sales and profit!
When selling to resellers salespeople have two sets of benefits to discuss with the prospect, what are they?
What the features of the product will do for the reseller and what the product features will do for the ultimate consumer of the product
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