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80 terms

Final Exam personal selling

modules 6-10
STUDY
PLAY
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