Overview

1
Overview

• Hand in Five-Paragraph Essays Up Front

2
Overview

• Five Paragraph Essay Comments
• Test II Review
• Comments on Final
• Extra Credit

3
Five-Paragraph Essay

• What were your reasons for your potential
  customer doing business with you?
• Hardest part of Essay?

4
Test II Review

• Average of (including extra points)
• 77.9 (001)
• 79.3 (002)
• Seven Questions that Student got Wrong Most
  Often
• 10, 20, 37, 38 (good questions)
• 24, 25, 42 (bad questions, 7.5 points)

5
Question 10, 20 (good)
10. ___________ initiates the buyers decision
process. a. Motivation b. Psychological
set c. Goal-object d. Need arousal e. Purposive
behavior
10. ___________ initiates the buyers decision
process. a. Motivation b. Psychological
set c. Goal-object d. Need arousal e. Purposive
behavior
20. Advantages of the structured presentation
include which of the following? a. It covers hot
button points in the order that this particular
customer suggests. b. It provides some degree of
confidence to inexperienced salespeople. c. It
always works on reluctant clients. d. It
facilitates interaction between the salesperson
and the prospect. e. The script can easily be
prepared by anyone within the organization.
6
Question 38 (good)
38. When customers ask you tough questions, you
should a. fake it until you make it. b. ask the
customer what your largest competitor would
do. c. change the subject. d. promise to answer
only after a weeks study. e. start your response
with a general reply.
7
Question 24, 25 (bad)
24. The first step of the attention stage
is a. getting the appointment. b. making a
positive first impression. c. approaching the
customer. d. establishing first
impressions. e. exchanging names. 25. Companies
need to implement email etiquette rules for all
of the following reasons except to
ensure a. professionalism. b. efficiency. c. dir
ection. d. protection from liability. e. All of
these are reasons to implement email etiquette
rules.
8
Question 42 (bad)
42. What are you currently doing to provide
Internet solutions to your employees? is an
example of what type of a question?
a. Closed-ended b. Single outcome
closed-ended c. Narrow scoped open-ended d. Altern
ative choice closed-ended e. Broad scoped
open-ended
9
Look at Questions and Answers after Extra Credit

• I have answer Keys, you can look at each and
  every question if you wish
• You need to stay in the room while you are doing
  this

10
Final Exam Overview

• Will post Gradesheet when I finish grading essays
  (this weekend) so You know where you stand
• Final Exam Format
• Final Overview
• Questions

11
Final Exam

• Final (250 Points)
• Seventy-Five Questions
• 3 1/3 Points Each
• Approximately 10 Questions on 11, 13
• Approximately 5 Questions on Other Chapters
• 90 minutes

12
Key Study Suggestions

• Focus on Most Important Topics
• Analyze Questions and Use of Class Time
• Understand Concepts

13
Focus on Most Important Topics

• Only a Few Topics
• Maximum of 1 Short Answer, 5 - 6 Multiple Choice
  per Chapter
• Predict What These Questions Will Cover
• Focus, Ask Yourself What Kind of Questions I am
  Likely to Ask about These Topics

14
Analyze Questions and Use of Class Time

• What Do the Chapter Questions Address?
• How Much Class and Assignment Time Did We Spend
  on These?
• Where is There Overlap Between These and Topics?

15
Understand Concepts

• Look at the Big Picture
• Examine How the Concepts are Related to Each
  Other
• Be Able to Work Examples Through a Concept

16
Extra Credit

• Three Parts, approximately 20 Minutes total time
• Part I is a few minutes, then Ill hand out part
  II to You
• When You Finish Part II, Raise Your Hand and Ill
  give you part III
• When You finish Part III, come on down to front
  and hand in All three parts
• Extra Credit Points
• Scored as a 50 on a 7th Quiz
• Quiz Grade Seven, drop two

17
Extra Credit

• Of Course this is Not Mandatory, If you would
  like an alternative assignment to earn extra
  credit see me
• Come a few minutes early to Final for debriefing
  if you want to

18
CHAPTER 1

• Selling ASAP

19
Success in Sales

• Successful salespeople possess the following
• Motivation to succeed
• Empathy
• Ego-drive
• Service motivation
• Conscientiousness
• Ego-strength

20
Agility

• An agile salesperson is
• One who is quick to see opportunities
• Clever in shortening sales cycles
• Able to meet customers needs faster
• Capable of creating flexible and customer-focused
  values
• Quick at learning and unlearning

21
Figure 1.1Timely and Timeless Components of
Selling ASAP
22
Steps of the Sales Process

• Preparation
• Attention
• Examination
• Prescription
• Conviction Motivation
• Completion and Partnering

23
Classifications

• Retail selling
• Trade selling
• Missionary selling
• Technical selling

24
CRMCustomer Relationship Management

• CRM is a strategy and process that utilizes
  technology
• To identify, attract, and retain customers
• To leverage the sales organizations
  relationships with its customers
• The agile salesperson uses CRM technology to
  assist him in managing customer interactions and
  transactions

25
Questions

• Key Elements of Quality Professional Selling?
• Everyone is a SalespersonAgree or disagree, Why?
• Likes/Dislikes about Salespeople?

26
Questions

• Consumers are Rational and Sovereign
  AssumptionsComment, How Would this Affect
  Salespeople Doing their Jobs?
• Describe Types of Selling Presented in this
  Chapter, How are they Different? How are they
  Similar?

27
CHAPTER 2

• The Changing World of Sales

28
Figure 2.2The Salesperson as a Knowledge
ManagerExpanding the Funnel of Value
29
Knowledge Updating Habitsof Successful
Salespeople

• Finding the right customers
• Listening to customers customers
• Cultivating resources in their own organizations
• Keeping an eye on bottom lines
• Anticipating problems
• Adopting a long-term view
• Reviewing each sales call after-the-fact

30
Table 2.1The Role of the Salespersonas
Knowledge Manager
31
Five KeyOrganizational Characteristics

• Organizational culture/climate
• Organizational structure
• Market orientation
• Leadership support
• Learning

32
CHAPTER 3

• Selling Ethically

33
Moral Standards

• Ethics are moral standards by which actions and
  situations can be judged
• Honesty
• Fairness

34
What is right? What is wrong?

• Values congruity is a level of agreement among
  different people about the values that are
  important
• Salespeople interact with many different people
• Reaching agreement on what is ethical can be a
  challenging task

35
Ethical Conflict

• Each party in a sales transaction brings a set of
  expectations
• Which set of interests does the salesperson
  choose to satisfycorporate interests or the
  customers interest?
• How do the values of the salesperson affect these
  decisions?
• What are the consequences of the various sales
  alternatives available to the salesperson?

36
Sources of Conflict

• Conflict may exist between salespeople and others
  within the sales organizational relationship
• Norms represent standards of behavior that groups
  expect of their members (Refer to Table 3.1)
• Moral types are classes of people who are grouped
  according to the values that they hold

37
Three Qualities forEthical Decision-making

• Ability to recognize ethical issues and think
  through consequences
• Self confidence to seek others points of view
• Willingness to make ethical decisions when
  theres no obvious solution

38
Characteristics ofthe Decision Maker

• Achievement motivation
• Need for affiliation
• Ego strength
• Locus of control
• Knowledge
• Experience
• Risk taking
• Machiavellianism

Back to Framework
39
CRM and Privacy Issues

• Five recognized fair information practices
  pertinent to privacy
• Notice
• Choice consent
• Access
• Security
• Enforcement

40
Codes of Ethics

• Corporate benefits
• Allow salespeople to identify what their firm
  recognizes as acceptable business practices
• Help salespeople to inform others that they
  intend to conduct business in an ethical way
• Can be an effective internal control of behavior
• Generate greater employee drive/effectiveness
• Attract high caliber people more easily
• Help salespeople avoid ethical confusion

41
Discussion Questions

• How Do Conflicts of Interest Relate to Ethical
  Decision Making?
• Nature of Ethical Problems? Can they Ever Be
  Resolved? How?
• Salespeople Asking for Info on CompetitorsEthical
  Issues, and How Can they Be managed?

42
Discussion Questions

• Entertaining Customers is BriberyAgree or
  Disagree, Why?
• Ethical Behavior is Ultimately the Salespersons
  responsibilityHow Would You Respond to this
  Statement?

43
CHAPTER 4

• Servicing the Customer
• to Build Lifetime Value

44
Lifetime Value Approach

• When salespeople use the information they have
  derived and accessed from every contact the
  customer has with the sales organization, they
  have the opportunity to improve their
  relationships with customers and successfully
  take a lifetime value approach

45
Customer Relationship Management (CRM)

• Key aspects of a CRM program
• Knowing how much customers are worth
• Knowing where customers are in their life cycles
• Knowing customers' total profit potential

46
Customer Lifetime Value (CLV)

• Customer lifetime value is the net profit earned
  from sales to a given customer during the time
  that customer purchases from the sales
  organization
• CLV, as a sales focus, is about how the customer
  is treated over time
• Lifetime value is a measure of customer loyalty

47
Knowing The Customer Lifetime Value

• Knowing the CLV helps salespeople
• Determine how much to spend acquiring new
  customers
• Determine the level of customer service needed
• Determine customer retention focus
• Shift focus from one-time sales to closer
  relationships
• Retain more customers than their counterparts
• Keep their customers for longer periods of time
• Develop more profitable customers
• Gain referrals from solid customers

48
Three Main Goals ofThe Customer Life Cycle
Approach

• Attain new customers and increase the number of
  relationships
• Increase the profitability of those relationships
• Increase the duration of profitable relationships

Creating a Life Cycle
Building Blocks
49
ConceptualizingCustomer Lifetime Value

• CLV includes the total financial contribution of
  a customer over the lifetime of that customers
  relationship with a sales company
• Calculating a customers lifetime value requires
• The cost of acquiring the customer
• Stream of revenues from customer
• Computations of the recurring costs of delivering
  service to that customer

50
Figure 4.4CLV (The Approach)
Life Span of Customer
Recurring Costs
Cumulative Margin
Lifetime Value
Net Margin
Acquisition Cost
Recurring Revenues
51
Understanding theLifetime Part of CLV

• Comparing ROI to CLV
• Return on Investment (ROI) represents a way to
  measure the immediate result of any sales effort
• CLV uses relationship capital to assess the
  long-term value of the customer

52
Understanding theValue Part of CLV

• As salespeople gain customer understanding, they
  create value by
• Acquiring new customers
• Increasing revenues
• Retaining customers
• Reducing recurring costs
• Reducing acquisition costs

53
Cost Benefit Analysis

• A cost-benefit analysis is a list of the costs to
  the buyer and the savings the buyer can expect
  from the investment

54
Customer Defections

• Five reasons why customers defect
• Competitors attract some customers
• Some customers are bought
• Some customers move
• Customers unintentionally pushed away
• Customers intentionally pushed away

55
The Relevance of CustomerLifetime Value To
Salespeople

• Lifetime value demonstrates that it costs less to
  serve loyal customers than to acquire new ones
• Lifetime value favors up-front preparation and
  long-term profitable relationships
• Information that helps salespeople attract and
  retain customers is valuable

56
Discussion Questions

• How Can the 80-20 Rule Can Help Salespeople
  Segment Customers by Profitability?
• How Does Lifetime Value Relate to Forming
  Customer Relationships?
• Relationship between Customer Loyalty and
  Delight? Four Aspects of Loyalty, Which is Most
  Powerful, Why, Which Has Greatest Customer
  Delight Potential?

57
Discussion Questions

• Calculating Lifetime Value of Customers, How is
  this Different from ROI?
• How Can CLV Be Used to Determine Sales Attention
  and Effort?

58
CHAPTER 5

• Understanding Why Buyers Buy

59
Uncovering Needs and Wants

• Salespeople must
• Determine what will motivate the prospect to
  action
• Understand the goal orientation of the prospect
• Assess and adapt to the style of the prospect

60
The Driving Force

• Motivation is what moves people into action
• Drive or arousal
• Provides the energy to act
• Goal-object
• Provides the direction for channeling that energy
• Purposive Behavior
• The use of that energy

61
Persuasion as Motivation

• Persuasion affects the hearts as well as the
  minds of people
• Persuasion is influencing opinions or affecting
  attitudes by means of communication
• Informing
• Educating
• Motivating

62
The Psychological Set

• The psychological set is a function of
• The buyers past experiences
• The buyers personal characteristics
• The buyers motives
• Environmental influences
• Past marketing stimuli

63
Arousal Seeking Buying Behavior

• The arousal-seeking motive is a persons internal
  drive to maintain stimulation at an optimal level
  
• Optimal level of stimulation
• The level at which a person feels neither bored
  nor overwhelmed
• Adaptation level of stimulation
• The level of stimulation perceived as normal or
  average

64
Adaptive Selling

• Adaptive selling entails
• Gathering information about each customer
• Observing customers reactions during the sales
  call
• Showing agility by making rapid adjustments
• Tailoring the sales presentation to each
  customers social style

65
Selling to ProspectsNeeds and Wants

• The goal is to reach a common understanding
  between buyer and seller
• How much alike are we?
• Do we share any background experiences?
• Are our language skills, attitudes, and beliefs
  similar or dissimilar?
• What assumptions have we made about each other
  based on stereotypes?

66
Organizational Buying

• In many organizations, teams of people do the
  buying
• Salespeople must focus their communications on
  the motivations, perceptions, and power of the
  individuals who make up the buying team

67
Perceived Risk

• In many sales situations, the most important
  perception to be dealt with is risk
• Salespeople must provide evidence that their
  solutions will work, reducing perceived risk

68
Five Types of Risk inPurchasing Decisions

• Financial
• Social
• Psychological
• Performance
• Physical

69
Buying Situations

• Straight rebuy
• Modified rebuy
• New task

70
Discussion Questions?

• Psych Aspects of Buying and Selling?
• Risks in Canned Presentations?
• What Makes Adaptive Selling Difficult?
• Signals/Clues?
• IDing Buying Center People?

71
CHAPTER 6

• Preparation

72
Answer These Six Questions

• Who are the people in the buying center?
• What roles do they play, in what products are
  they interested?
• Why do they want or need this product?
• How is the buying decision made?
• Where will the decision be made?
• When will it be made?

73
Phases of Preparation

• Pre-approach
• The search for people and organizations that have
  a high likelihood of buying
• Prospecting
• Identifying and qualifying the specific people
  who might have a want or need that the
  salespersons market offerings could satisfy

74
The Sales Organization

• Salespeople must be knowledgeable about their
  organization

• Product
• Personnel
• History
• Organization policies
• Credit terms
• Production methods
• Service

• Distribution
• Communication channels
• Prices
• Rebates and discounts
• Delivery
• Competitive position
• Sales support

Refer to Table 6.2 Areas of Knowledge About the
Sales Organization
75
The Environment

• Competitive/prospect interface
• Government policy
• Existing and impending legislation
• Technology
• The economic situation
• Regulatory agencies
• The ecological impact products may have
• The global marketplace

76
Figure 6.3Classification of Potentialand
Current Customers
SUSPECT
CUSTOMER
PROSPECT
CLIENT
Someone the salesperson has not yet qualified.
Someone who has met the minimum criteria of
money, authority and desire to buy, but has not
yet purchased.
Someone who has purchased before.
Someone with whom the salesperson has a
partnership.
77
Prospecting Techniques

• Three Categories
• Internal sources of prospects
• Prospects found by market intelligence
• Prospects generated by specific actions

78
Internal Sources of Prospects

• Sales records
• Organizational promotional activities
• Referrals
• Walk-ins
• Inquiries

79
Identifying ProspectsThrough Market Intelligence

• Lists
• Crisscross directory
• News media
• Government sources
• Observation
• Computerized databases
• SIC numbers

80
Identifying Prospectsby Specific Actions

• Letter with a follow-up phone call
• Referrals
• Bird dogs
• Cold calls
• Networking

• Incentives
• Other sales professionals
• Trade shows
• Educational forums

81
Turning Suspects IntoBona Fide Prospects

• Identify MAD Customers
• Money to Buy
• Authority to Buy
• Desire to Buy

82
Prospecting Steps Differ According to Types of
Selling

• Responsive Selling
• Trade Selling
• Missionary Selling
• Technical Selling
• New-Business Selling

83
Questions

• Activities for Systematic Prospecting?
• Role of market Segmentation in Prospecting?
• System for Organizing New Leads?
• Three Qualification Criteria for Prospects?
• How to ID Buyers, Not Lookers, at Trade Show?

84
CHAPTER 7

• Attention

85
Attention

• How can you get a prospect to heed what you are
  saying?
• Just because you meet, is your prospect
  necessarily ready and anxious to talk about what
  you want to talk about?
• How can you be sure you are on the same
  wavelength with your prospect?

86
Purpose of the Attention Step

• Personally contact the prospect
• Get the prospect to listen
• Secure a favorable interview

87
Influencers

• In order to talk to the right person, you must
  often cooperate with that individuals
  influencers (gatekeepers)
• Household-buying situations
• Spouses
• Oganizational buying situations
• Administrative assistants

88
Approaching The Customer

• Sales Call Anxiety
• Sales call anxiety (SCA) is an irrepressible fear
  of being negatively evaluated and rejected by a
  customer
• SCA consists of four components
• Negative self-evaluations
• Negative evaluations from customers
• Awareness of physiological symptoms
• Protective actions

Refer to Table 7.5 - Addressing Sales Call
Anxiety
89
Opening the Presentation

• What makes some salespeople standout?
• The best sales professionals know
• How to emphasize benefits in their presentations
• The most effective presentations must start and
  finish with the prospects needs and wants as the
  focus

90
Presentation Openers

• Openers are effective and brief introductions to
  the remaining parts of the sales presentation
• The opener should fit the situation of the
  particular prospect
• Salespeople must practice to help reduce the
  risks of trial-and-error

91
Referral Opener

• Referrals from existing customers can open doors
  to previously off-limits prospects
• Casual acquaintance of prospect
• Personal friend of prospect
• Referral card of introduction

92
The Exhibit Opener

• The exhibit opener immediately captures the
  prospects attention
• The exhibit can be any tangible object
• Calendar
• Newspaper clipping
• Magazine article
• Brochure
• Gift

93
The Compliment Opener

• The compliment opener is effective because it
  appeals to basic human instinct
• Appreciation
• Recognition
• A sincere compliment is always true, specific,
  and in good taste

94
Prospect Benefits

• Salespeople can use a benefit statement as an
  effective opener
• Must be brief and general
• Preferably demonstrates the salespersons
  advantage over competitors

95
Questions - 7

• First Day of College Attention, Words or
  Actions?
• Short Presentation to Gain Admittance to a
  Decision Maker through a Gatekeeper
• Advantages and Disadvantages of Securing an
  Appointment
• Sales Opener Objectives, How Do They Relate to
  Overall Objectives?
• Most Effective Attention-Getters for Sales
  Presentations, and Why?

96
CHAPTER 8

• Examination

97
The Examination Step

• The basic goal of the examination step
• To confirm the salespersons understanding of the
  prospects/customers situation
• To uncover the prospects/customers latent needs

98
Uncovering Wants and Needs

• This question-asking/listening step must be
  psychologically structured to help determine
• The prospect's primary concern
• The prospects dominant buying urge

99
Dominant Buying Urge

• That inner urge or drive that motivates your
  prospect to take the action required to
  consummate a sale
• Dominant - ruling or controlling
• Buying - acquiring or purchasing
• Urge - motive or impulse

100
Two General Types of Questions

• Open-ended questions
• Cant be answered with a yes or no
• Closed-ended questions
• Can be answered with a yes or no

101
Questioning Techniques

• Diagnostic and Surgical Inquiries
• Inquiring Questions
• Satisfied Customer Survey
• The What If Technique
• SPIN

(Situation-Problem-Implication, and Need-Payoff)
102
Inquiring Questions

• Inquiring questions are depth-probing questions
  that can be open-ended or closed-ended
• Use a questioning sequence
• Carefully listen
• Evaluate the customers answer
• Determine the dominant buying urge

103
Figure 8.2 The SPIN Questioning Strategy

• Situation Questions
• Achieve fact-finding objectives

• Problem Questions
• Achieve objective of uncovering
• Current satisfaction

• Implication Questions
• Achieve objective of developing and channeling
  dissatisfaction
• Have high selling impact

• Need-payoff Questions
• Achieve objectives of rehearsing and selectively
  channeling customer attention
• Have high selling impact

Source Rackham, Neil (1989), Major Account Sales
Strategy. New York McGraw Hill
104
Listening

• Listening is a trainable skill requiring three
  things
• A sense of how well you listen
• Some motivation to improve
• Practice

105
Stages in the Listening Process

• Sensing
• The actual receipt of messages
• Processing
• Activities that occur in the mind of the listener
• Responding
• Acknowledgement of the receipt of the message

Ramsey, Rosemary P. and Ravipreet S. Sohi (1997),
Listening to Your Customers The Impact of
Perceived Salesperson Listening Behavior on
Relationship Outcomes, Journal of the Academy of
Marketing Science 25 (2), 127-137.
106
Three Levels of Listening

• Marginal
• Evaluative
• Active

Alessandra, Anthony J., Phillip S. Wexler, and R.
Barrara (1987), Non-manipulative Selling, Reston,
VA Reston Publishing Company.
107
Marginal Listening

• The most basic level of listening
• Recipients hear the words but are easily
  distracted and may allow their minds to wander

108
Evaluative Listening

• An improvement over marginal listening
• Listeners are concentrating on what is being said
  but do not sense what is being communicated
  nonverbally or through more subtle verbal cues

109
Active Listening

• A process in which the listener receives
  messages, processes them, and responds so as to
  encourage further communication
• The listener is using all of her senses

Refer to Table 8.2--Habits to Differentiate Good
from Poor Listening
110
Questions - 8

• Prospects Primary Concern?
• Dominant Buying Urge?
• Is there Always A Reason for Buying?
• Making Prospects Aware of their Needs?
• Poor and Good Listening Behavior?
• How Can You Tell if Someone is Listening?

111
CHAPTER 9

• Prescription

112
The Prescription Step

• In the prescription stage of a sales
  presentation, the salesperson arouses a
  prospects interest by showing understanding of
  the prospects problem and prescribing
  (presenting) a solution to it.

113
Solution Selling

• Solution selling is the stage at which the
  salesperson
• Assumes a knowledgeable role
• Begins to earn the right to be an advisor to the
  prospect
• Customizes her presentation of product features
  and benefits to the prospects specific needs and
  wants

114
Asking the Right Questions

• Developing a list of questions will allow
  salespeople to target their benefits to
  customers needs
• Astute salespeople anticipate prospects concerns
  and prepare answers before meeting with prospects

115
What Your ProspectWants to Know

• What are you offering me?
• Exactly how does it work?
• How will it help me?
• Is it as good as you say it is? Who else says so?
• What evidence can you offer that it is as good as
  you say?
• Is it worth the price?
• Will it help me accomplish what I really want to
  accomplish?

116
Components of aSuccessful Presentation

• Create a drama
• Help prospects visualize product/service benefits
• Dont exaggerate
• Keep promises

117
Establishing Trust

• Trust can be defined as the prospect having
  confidence that a salesperson will not exploit
  the prospects vulnerabilities
• Salespeople who keep promises
• Sell value
• Create mutually beneficial prescriptions
• Show that they truly want to serve customers

Dyer, J. and W. Chu (1998), Supply Chain
Management, Harvard Business Review,
(January-February), 18-19.
118
Sell Benefits Not Features

• Deal only in facts
• Sell the prospect results
• What the product will do--not what it is!

119
Features

• A feature is a desirable characteristic that is
  inherent in the performance of the product
• The technical aspects of the product
• Features are most likely to be tangible
• They can be observed, felt, or experienced

120
Benefits

• A benefit is a definitive advantage, improvement,
  or satisfaction that a customer acquires or
  experiences from a feature of a product
• Benefits are often intangible

Refer to Table 9.3--Examples of Product Features
and Benefits
121
Sales Presentation Structure

• A sales presentation should make the prospect
  want the product/service being prescribed
• Customize the presentation
• Four features
• Completeness
• Elimination of competition
• Clarity
• Prospect confidence

122
Winning AProspects Confidence

• Key aspects of winning prospects confidence are
• Confident salespeople
• Salesperson knowledge
• Helping prospects visualize the benefits

Refer to Table 9.4--Seven Steps to Effective
Presentations
123
Persuading ProspectsTo Buy Whats Prescribed

• Fear appeals
• Discontent
• Empathy
• Presumptions
• Graciousness
• Specificity

124
Moving Toward Purchase

• In the purchase stage, the focus of a sales
  presentation shifts from presenting product
  benefits to encouraging the prospect to make a
  buying commitment
• Summarize the benefits and trial close

125
Questions - 9

• Concern? Discuss
• Fear in a Sales Presentation?
• Feature? List Features of Three
  Products/Services
• What is a Trial Close?

126
CHAPTER 10

• Conviction and Motivation

127
The Conviction and Motivation Steps

• The salesperson must convince her prospects of
  the validity and desirability of her offer and
  motivate them toward completing the transaction

128
Customer-Perceived Value

• What is the source of customer-perceived value?
• Does value derive from the product, the brand
  image, or the sales firm?
• Is the prospect's value objectively defined or
  perceived?

129
Table 10.1Components of Prospect/Customer-Perceiv
ed Value
130
Competitive Advantage

• An advantage is an aspect of the salesperson's
  offering that is superior to that of a
  competitive offering
• Salespeople must know
• Their competitors' offerings
• How their own offerings compare to those of their
  competitors

131
Knowledge Checklist

• In order to build prospect conviction,
  salespeople must understand
• How customers/clients use products
• How salespeople can increase value to prospects
• How prospects measure success
• What might occur to change a prospect's use of a
  product

See Table 10.2 Knowledge Checklist
132
Gaining Conviction

• To successfully perform the conviction step the
  salesperson should be sure to
• Explain what the product or service is and how it
  works
• Explain the facts and features and their related
  benefits
• Establish the prospect's belief in the
  salesperson by presenting evidence
• Explain any related information that the prospect
  would like to know

133
Providing Evidence

• A salesperson should never tell a prospect
  anything about a product or service unless that
  claim can be supported with materials that prove
  or provide a mode of proof
• Documentation beats speculation!

134
Structuring A CompleteUnit Of Conviction

• Step 1
• State fact or feature
• Step 2
• Offer evidence to document fact or feature
• Step 3
• Show related buyer benefits with "which means to
  you
• Step 4
• Secure agreement with a wrap-up question

135
Handling Objections

• Effective salespeople are able to
• Anticipate objections
• Answer them with confidence
• Probe for more concerns
• Quickly get back to motivating the
  prospect/customer to make a decision in favor of
  purchasing

136
Types of Objections

• Three common types of objections are
• Stoppers
• Stalls
• Searches

137
Overcoming Objections

• The salespersons formula for handling objections
  has five parts
• Listen very carefully to the prospect's objection
• Clarify the concern
• Cushion the objection
• Classify the objection to determine when and how
  to answer it
• Answer the objection with concern, conviction,
  and enthusiasm

138
Five ClassicObjection-Handling Techniques

• Forestall the Objection
• Compensate
• Counter
• Boomerang
• Feel, Felt, Found

139
Imaginative Visualizationand Creative Imagery

• Through imaginative visualization and creative
  imagery, salespeople can help their prospects
  anticipate how they will use and enjoy products
• Salespeople can make prospects
• Feel
• Want
• Act

140
Empathy

• Empathy is the ability to mentally put oneself in
  the other person's placeto look at that persons
  situation through his eyes
• Empathy is the most important characteristic of a
  salesperson

141
Questions - 10

• Goal of Conviction Step?
• Effectively Convey Value to Prospect/Customer?
• Steps to Effectively Complete the Conviction
  Module?
• Good Sources of Evidence?
• Goal of Negotiating?

142
Questions - 10

• What is a Concession?
• How Can salespeople Motivate Customers to Buy?

143
CHAPTER 11

• Completion and Partnering

144
Outcomes of a Presentation

• Regardless of the outcome of any one sales
  presentation, there is more work to be done
• A prospect buys and becomes a customer
• A customer buys again (rebuy situation)
• A customer or prospect makes no purchase but
  requests additional information
• A prospect expresses no interest in working with
  the salesperson's company

145
The Salespersons Mentality

• Closing
• Completion
• Partnering

146
Closing Mentality

• A closing mentality focuses strictly on the
  transaction as the end result of a sales
  presentation
• Closing questions ask for a definite, immediate
  decision, triggering one of the following
  responses
• A decision to buy
• A reason for not buying
• A request for additional information

147
Nature of the Traditional Sales Close

• A real issue in closing is the anxiety,
  hesitancy, or inability of human beings to make
  decisions
• Most salespeople are afraid of rejection
• Their minds sometimes jump to possible negative
  consequences, creating a negative attitude

148
When It Is Time To Close

• A salesperson should do the following
• Look
• Lower
• Lean
• Shut Up
• Nod, and
• Smile

149
Traditional Closing Techniques

• Professional salespeople often use more than one
  technique during a presentation
• Salespeople should pick the techniques with which
  they feel most comfortable

150
Employing Closing Techniques

• Why should salespeople employ closing techniques?
• Many prospects find it difficult to make
  decisions
• Prospects want to make the right decisions, but
  complete certainty in buying never exists
• Many prospects will postpone decisions if
  salespeople let them
• After a sales presentation, prospects often feel
  confused and hesitant

151
Cautions About TraditionalClosing Techniques

• The goal of closing techniques is to make it
  relatively easy for the prospect/customer to
  decide to buy
• Although traditional closing techniques can be
  effective under the right circumstances,
  salespeople should use them judiciously

152
Completion Mentality

• A completion mentality emphasizes the point that
  all sales presentations must reach some type of
  conclusion, which may or may not result in a
  transaction
• On average, it takes five sales calls on a
  business prospect to complete a transaction

153
If a Sale Is Made

• Before leaving a customer who has agreed to a
  sale
• Show appreciation for the customer's business,
  but do not gloat
• Reassure the customer that the decision is a good
  one
• Solicit sales leads
• Complete all necessary paperwork, and finalize
  the details
• Be sure to leave with a good understanding of the
  customer's expectations

154
If a Sale Is Not Made

• When a sale is not made, the salesperson still
  has duties to perform
• Duties to the customer
• Duties to the sales organization

155
Providing Service

• There are at least four areas in which
  salespeople may be of service
• Handling complaints
• Order expediting
• Adjustments, returns, and allowances
• Information

156
Partnering Mentality

• A partnering mentality changes the salesperson's
  primary goal from one of just completing the
  transaction to one of beginning a partnership
  with the prospect

157
Partnerships

• In a partnership, both the seller and the buyer
  perceive a need for the relationship, and each
  values the other
• Benefits of a partnership
• Quicker response to change
• Cost savings
• Agility in meeting customer needs
• Increases in sales
• Quicker identification of problems and
  opportunities

158
Mistakes Made in Forging Partnerships

• Cutting a deal that favors the selling
  organization too much
• Lacking an exit strategy
• Failing to plan
• Partnering in isolation
• Seeking quick partnerships
• Creating ideas and solutions while thinking on
  one's feet
• Not being able to walk away

159
The Nature of Partnering

• Partnering is a way of doing business that helps
  salespeople and buyers work together to achieve
  mutual and individual goals
• Traditional closing methodologies that are
  transaction-oriented and often pressure buyers
  are not appropriate in partnerships

160
Basis of The Relationship

• Transactional customers
• Core product/service
• Unbundling of product/service offerings
• Most interested in price
• Partnership customers
• Augmented products
• Bundling of product/service offerings

161
Customer Equity

• Customer equity is the value of a complete set of
  resources, both tangible and intangible, that
  customers invest in a supplier firm
• Tangible investments include products, services,
  and money
• Intangible investments include commitment and
  trust

162
Questions - 11

• Objections, Satisfactorily Responded How Should
  Closing Proceed?
• Characteristics of Partnering Relationship, are
  Traditional Closing Methods Appropriate?
• Price Increase Next WeekShould Salesperson Sell
  Now (make Less Money) or Later (make more money)?
• Product Not Satisfacactory, Ill keep It but
  never buy from you againWhat to Do?
• Two Suggestions to Turn DownHow?
• Signs of Becoming a Preferred Supplier?

163
CHAPTER 13

• Managing Yourself and Your Time

164
Becoming An Agility Master

• Great leaders have learned the art and science of
  mastering self-improvement and time management
• In many ways, these principles apply to
  salespeople
• To be effective in sales, one must have courage
  and a positive attitude, even in the face of
  adversity

165
Six Aspects of Leadership

• Each aspect can be applied to selling and to life
  in general
• Having a set of beliefs and sticking with them
• Optimism
• Courage
• Relentless preparation
• Teamwork
• Communication

Mayor Rudy Giulianni, from a speech given to the
Direct Selling Association on June 11, 2003
166
Self-Discipline

• Learning to manage oneself and ones time
  requires self-discipline, which requires
  determination
• Determination begins with a purpose or a
  calling, the creation of passion, which drives
  one toward reaching specific goals

167
Habits Powerful Factors

• A good habit, consisting of three elements, is
  defined as the intersection of knowledge
• Knowledge the what to do
• Skill the how to do
• Desire (motivation) the want to do

Source Stephen Covey, The Seven Habits of Highly
Effective People
168
Seven Habits of Highly Effective People

• Stephen Coveys seven habits are
• Be proactive
• Begin with the end in mind
• Put first things first
• Think win/win
• Seek first to understand and then to be
  understood
• Synergize
• Sharpen the saw

Refer to Table 13.1--How the Seven Habits Apply
to Salespeople
169
Personal Qualities of Agile Salespeople

• Ego Drive
• Empathy
• Commitment
• Maturity

• Personal Magnetism
• Sincerity
• Self-Confidence
• Trainability

Refer to Table 13.3--Qualities of Successful
Salespeople
170
Managing Time

• Coveys third principle deals with prioritizing
• The primary reason people cannot find time to be
  reflective is that they mix up what is urgent and
  what is important

171
Importance and Urgency

• Four combinations of importance and urgency
  relate to activities in which salespeople engage
• Not important, not urgent
• Not important, but urgent
• Important, but not urgent
• Important and urgent

172
Planning

• Planning involves setting SMART objectives
• Specific
• Measurable
• Attainable
• Realistic
• Time-based

173
Suggestions for Managing Time

• Set goals
• Manage interruptions
• Clear the clutter
• Use multiple contact media
• Learn to say no

• Manage appointments
• Call on prospects who can buy now
• Put a time value on entertainment and travel
• Increase personal efficiency

174
Setting Goals

• By setting goals, people know exactly what is to
  be accomplished and where they want to be
• In order to be effective goals must
• Be in writing
• Be specific and relate to results
• Be realistic
• Have a time schedule and a target date for
  finishing each step as well as each goal

Refer to Table 13.5--Possible Goals for the
Salesperson
175
Questions - 13

• Principles of Leadership and How Do They Apply to
  Salespeople?
• Three Facets of a Habit? How Do They Affect
  Personal/Interpersonal Effectiveness?
• What Five Qualities Must Salespeople Evaluate to
  Manage Themselves?
• Relationship of Efficiency to Time Management?