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Chapter Six
Sales Presentation
andDemonstration:
The Pivotal
Exchange
PowerPoint presentation prepared by
Dr. Rajiv Mehta
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 2
Chapter Outline
The first sales call and the sales presentation
Planning the sales presentation
General guidelines for effective sales presentations Sales presentations to groups
Sales presentation strategies
Adaptive versus canned sales presentations
Written presentations
Selling the long-term relationship
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 3
Learning Objectives
After reading this chapter, you should understand
Alternative sales presentation strategies.
Guidelines for effective sales presentations
and demonstrations to organizationalprospects.
Preparation of written sales presentations.
Sales presentation strategies for different
prospect categories.
Use of adaptive and canned sales
presentations.
Sales presentations to prospect groups.
How to make a sales presentation memorable.Royalty-Free, Digital Vision/Getty Images
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 4
Figure 6.1:
The Personal Selling Process (PSP)
The fourth step of the professional selling cycle
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 5
The First Sales Call and the
Sales Presentation
Successful salespeople think of the sales presentation and
demonstration as the pivotal exchange between seller and
buyer in the sequence of exchanges that make up the
selling process
The approach emphasized in this text is the consultative
problem-solving strategy
Consider several tasks before making the sales
presentation
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 6
Planning the Sales Presentation
Gathering information1.
Identifying the prospects problems and needs2.
Preparing and presenting the sales proposal3.
Confirming the sale and/or the relationship4.
Ensuring customer satisfaction5.
To prepare for the first sales presentation, salespeople can think of 5planning stages:
Chapter Review Question:
What are the basic steps in planning the
sales presentation?
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Table 6.1 Planning the Sales
Presentation and Demonstration
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1. Gathering Information
Too much talk can be detrimental to the sales process. A chronic
complaint is that salespeople talk too much, fail to ask the right
questions, and do not really listen to the buyer.
Top-performing salespeople understand the need to gather all therelevant information they can about prospects and their perceived
problems.
First, they make sure theyre talking to decision-makers (those with
authority to buy) or key influencers, so neither partys time is wasted.
Next, they ask probing questions to encourage prospects to provide
information on perceived problems, objectives, financial issues, needs,
and personal feelings.
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2. Identifying the
Prospects Problems and Needs
Using a consultative,
problem-solving approach,
the professional salespersontries to uncover the
prospects perceived
problems and needs through
skillful questioning andcareful listening.Royalty-Free, Digital Vision/Getty Images
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3. Preparing and Presenting the
Sales Proposal
Before making a sales presentation,
take the time and effort to prepare
yourself to give a superb
performance.
Thus, remember the following:
A. Professional approach to sales
presentations
B. FABleads to SELLSC. Value-added selling (VAS)
Royalty-Free, Digital Vision/Getty Images
Royalty-Free, Digital Vision/Getty Images
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3. Preparing and Presenting the
Sales Proposal
A. Professional approach to sales presentations
Salespeople should custom-tailor the sales presentation anddemonstration to the prospects specific business situation, needs,
and individual communication style.
The sales presentation strategy can vary depending on different
types of prospects as shown in Table 6.2.
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Table 6.2 Prospect Categories and
Sales Presentation Strategies
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Table 6.2 contd
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3. Preparing and Presenting the
Sales Proposal
B. FAB leads to SELLS
Featuresare the obviouscharacteristics of the
product.Advantagesare the
performance traits of theproduct that show how itcan be used to help thecustomer better solve a
problem than presentproducts can.
Benefi tsare what thecustomer wants from theproduct.
Showthe products features.
Explainits advantages.
Leadinto the benefits for theprospect.
Letthe prospect talk.
Starta trial close.
F
A
B
S
E
L
LS
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 15
3. Preparing and Presenting the
Sales Proposal
C. Value-added selling (VAS)
A comprehensive strategy, VAS focuses on providing customers withextra, or value-added benefitsover those offered by competitors
VAS shows customers that the extra overall perceived value is greaterthan that the competitors are offering
VAS presentations go beyond the FAB approach to convincingly presentand demonstrate the overall added value (benefits) that the customerwill receive from purchasing from their company across four categories:
1. Value-added product benefits
2. Value-added relationship benefits
3. Value-added company benefits
4. Value-added salesperson benefits
Chapter Review Question:What is the value-added
selling approach to sales
presentations? Identify and
discuss the four value
dimensions.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 16
Table 6.3 Value-Added Benefit
Comparison Chart
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 17
4. Confirming the Sale and/or the
Relationship
Professional salespersons:
See their prospects and customers as bus iness partnerscultivating arelationship based on trust, mutual interests, and cooperation, instead ofaggressively on closing the sale.
Spend considerable time trying to undercover and fully understand theneeds and concerns of their partners through attentive listening and byserving as trusted advisers, consultants, and even friends.
Do not want to sell products or services with which the customer will notbe satisfied.
Realize that only by providing continuous customer satisfaction will theyobtain the repeat business that leads to long-term customer loyalty andhigher commissions for themselves and greater profits for theircompanies.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 18
5. Building Relationships and
Achieving Customer Satisfaction
Some underperforming salespeople neglect post-purchase customerservice. Immediately after the sale, their interest, contact, andrelationship with the customer fall off rapidly.
Such shortsightedness or indifference is a relationship killer, and thesesalespeople may later have to work doubly hard to reestablish rapportand rebuild the relationship with that customer.
High performing salespeople are committed to providing prospects andcustomers with totally satisfying service throughout the long-runrelationshipbefore, during, and after the sale.
They understand that fully satisfying current customers generates repeatsales, referrals to other prospects, and increased sales as customerneeds grow.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 19
General Guidelines for
Effective Sales Presentations contd
In sales presentations and demonstrations, salespeople can facilitateprospect involvement and the learning process by using 4 learningprinciples
1. Participation
Prospects who participate in the sales presentation anddemonstration retain more information and develop morefavorable attitudes
2. Association
Prospects remember new information better if they can connectit to their personal knowledge, past experiences, or frames ofreference
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 20
General Guidelines for
Effective Sales Presentations contd
3. Transfer
Prospects who see the product being used in situations similar
to their own can better visualize its benefits
4. Insight
Product demonstrations should weave facts and figures from
the sales presentation into the prospects own experience
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 21
General Guidelines for
Effective Sales Presentations contd
Prospects want to understand a product with all their senses, so whereappropriate in the demonstration help prospectssee, hear, feel, smell, andtastea product.
Eightplanning steps to prepare for the demonstration are:
1. Demonstrate benefits that arecustom-tailored to the prospect'sneeds
2. Decide what to say about thebenefits from the prospect's
perspective
3. Select sales aids that involve themost human senses and will makethe most positive impact
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 22
General Guidelines for
Effective Sales Presentations contd
4. Pre-check all sales aids to make sure
everything is working smoothly
5. Decide when and where to make the
demonstration (usually a controlled
environment is best)6. Involve the prospect in the
demonstration. Remember the motto:
"If they try it, they'll buy it
7. Prepare a written demonstration outlining three columns:
Benefit to demonstrate
What to say
What to do
8. Rehearse the demonstration many times until you have the right timingof actions and words
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Images
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 23
General Guidelines for
Effective Sales Presentations contd
Dressing for Success
Additional suggestions for dressing for success are found in Table 6.4
An important part of anysales presentation is the
salesperson'spersonal
appearance
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 24
Table 6.4 Dressing for Sales
Presentation Success
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 25
Effective Behavior and
Listening Principles
Look like a successful salesperson
Develop rapport early
Adjust to the customer's communication style
Present the strongest customer benefits and selling points
first
Establish credibility
Make the presentation fun Arouse as many of the customer's five senses as possible
Combine factual and emotional appeals
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 26
Effective Behavior and
Listening Principles
Look for and use responsive behaviors
Help prospects draw the right conclusions
Avoid making puns
Never tell ethnic or offensive jokes
Never disparage another company or individual
Assume a relatively firm negotiating position initially
Help prospects draw the right conclusions Use humor with discretion and only when appropriate
Readily admit minor product weaknesses
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 27
Table 6.5 Behavioral Guidelines for Effective
Sales Presentations and Demonstrations
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 28
General Guidelines for Effective Sales
Presentations: Listening Principles
The old maxim The reason you have two ears and one mouth is
that you should listen twice as much as you talkis especially true
for a salesperson
Salespeople must act
professionally and listen
reactively to their
prospects
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 29
Table 6.6 Keys to Good Listening
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 30
Table 6.6 Keys to Good
Listening contd
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 31
Sales Presentations to Groups
Sales presentations to organizational prospects and
customers must include a business strategy (business plan)
explaining how the product can profitably be resold or used
to make other products
When making presentations to groups, salespeople may
wish to use a presentation planning checklist
Organizational customers must be convinced of the
soundness of the overall business strategy before they will
buy the product
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 32
A. Sales Presentation Format
Salespeople succeed usingmany different kinds of grouppresentations. One populargroup presentation formatfollows this sequence:
2. Product
1. Problem
3. Benefits
4. Evidence
5. Summary
6. Action
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 33
B. Alignment of the Sales Presentation
Before your talk, align the sales presentation by knowing:
1. Who is the prospect audience?
2. What benefits are the prospects
seeking?
3. How do the prospects prefer to
communicate?
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 34
Table 6.7 Sales Presentation Alignment
and Guidelines for Prospect Groups
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 35
Guidelines for
Sales Presentations to Groups
1. Begin with an audience-focused statement of purpose
2. Translate the product into prospect benefits
3. Energize the sales presentation and make it memorable by usingS A D T I E:
S Statistics
A Analogies, similes, and metaphors
D Demonstrations
T Testimonials
I Incidents
E Exhibits
Chapter Review Question:
In context of making
presentations to groups, what
does the acronym SADTIE stand
for?
Define and give an example of
each of the following aids for
sales presentations: (a)
analogies, (b) similes, and (c)
metaphors.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 36
Guidelines for
Sales Presentations to Groups contd
4. Encourage interaction and
participation
5. Show your commitment to
customer service
6. Ask for specific action
7. Critique the sales presentationRoyalty-Free, Digital Vision/Getty Images
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 37
Sales Presentation Strategies contd
In preparing sales presentations to achieve specific objectives, you canuse several alternative strategies, including:
Stimulus-response
Salesperson asks a series of
positive leading questions
Formula
Salesperson leads the prospect
through the mental states of buying
(attention, interest, desire, and action)
Need satisfaction
Salesperson tries to find dominant
buying needs
Chapter Review Question:
List and briefly describe thebasic sales presentation
strategies. Which one is
generally considered best for
professional salespeople?
Why?
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 38
Sales Presentation Strategies contd
4. Consultative problem solving
This is the most frequently recommended and most successful sales
presentation strategy for today's professional salespeople by
a) Focusing on the prospect's problems, not the seller's products
b) Emphasizing the partnership of buyer and seller and stresses
"win-win"outcomes in negotiations
Chapter Review Question:
What is the consultative
problem-solving sales
presentation strategy? Givean example of a selling
situation where this strategy
would be especially
appropriate?
5. Depth selling
Employs a combination of several sales
presentation methods
6. Team selling
Presentation made to a group of decision
makers from different functional areas
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 39
Table 6.8 Sales Presentation Strategies
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 40
Table 6.8 Sales Presentation
Strategies contd
Ad i V C d
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 41
Adaptive Versus Canned
Sales Presentations contd
Adaptive selling stresses the adaptation of each sales presentation and
demonstration to fit each individual prospect
Canned selling is any highly structured or patterned selling approach
Both adaptive and canned sales presentations can beeffective when matched with the appropriate prospect in adesignated sales situation
Chapter Review Question:
Explain the difference between adaptive
and canned sales presentations.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 42
Written Presentations
Whether used at the time of the verbal sales presentation or mailed asa follow-up after the sales call, a written presentationcan be very
effective in winning sales
Several suggestions for writing effective sales presentation include:
1. Tailor each written salespresentation to the specificcustomer
2. Make the opening paragraph ofthe presentation sparkle
3. Sequence benefits in the mosteffective order
4. Be positive and upbeatRoyalty-Free, Digital Vision/Getty Images
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 43
Written Presentations contd
5. Use a natural, conversational style inwriting
6. Use a lively and logical format
7. Never disparage competitors8. Ask for action
9. Personalize the proposal with ahandwritten note
10. Double-check and proofread everything
Chapter Review Question:
Give some basic guidelines for written
sales presentations.
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T bl 6 9 Ti f
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 44
Table 6.9 Tips for a
Written Sales Presentation
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 45
Selling the Long-term Relationship
As many industries seek to improve quality and reduce
costs, the trend toward closer supplier relationships, longer-
term contracts, and fewer suppliers is increasing
Salespeople must go beyond mere selling to serving theircustomers much like consultants or business partners
What these trends tell selling organizations is that selling the
long-term relationshipis not just another strategy, it is fast
becoming the only viablestrategy
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 46
Key Terms
FAB A memory-aid acronym that stands for a products Features, Advantages,
and Benefits that will appeal most to a salespersons customer.
SELLS
A memory-aid acronym: Show your products key features, Explain its major
advantages; Lead into specific benefits for the prospect; Let the prospect domost of the talking; and Start a trial close, and use more throughout thepresentation
Value Added
Providing customers extra or added-value benefits than offered bycompetitors.
SAD TIE
A memory-aid acronym that stands for Statistics, Analogies,Demonstrations, Testimonials, Incidents, and Exhibits, one or all of whichthe salesperson may use to spice up a sales presentation.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 47
Key Terms contd
Core Selling Team
Members of the selling firm assigned to particular prospects or customers todevelop and maintain ongoing buyer-seller relationships with them.
Selling Center
Members of the selling organization assigned to a certain prospect to close a
particular sales transaction. After the sale is consummated, the sellingcenter is likely to disband.
Adaptive Selling
Modifying each sales presentation and demonstration to accommodate eachindividual prospect.
Canned (or Programmed) Selling
Any highly structured or patterned selling approach. Written Presentation
In sales presentations to organizational prospects, the salespersonsexplanation of how the prospect can profitably use the product. Also called asales proposal or business plan.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 48
Chapter Review Questions
1. Why are the sales presentation and demonstration so
important in the Personal Selling Process?
2. Why are clothing and accessories important considerations
in making an effective sales presentation?
T i f Th ht d
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 49
Topics for Thought and
Class Discussion
1. Why do you think the consultative problem-solving salespresentation is the most successful strategy forprofessional salespeople? What are the benefits of thisstrategy to the prospect or customer?
2. Name at least five special prospect categories, anddescribe an appropriate strategy for a sales presentation toeach.
3. Which do you think is more effective for most business-to-business selling, an oralor a writtensales presentation?
Why?4. Do you think sales presentations and demonstrations are
more important for tangible products or for intangibleservices? Why?
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 50
Internet Exercises
1. Using an Internet search engine, find three firms that
specialize in sales presentation training, and visit their
websites to determine whether they use other types of
sales presentation strategies in addition to those identifiedand described in this chapter.
2. Use Google or any other search engine to locate two
examples of sales presentation strategies beingdemonstrated using Flash or streaming video.
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 51
Projects for Personal Growth
1. Contact two business-to-business salespeople and ask them abouttheir methods of preparing sales presentations, dress style during the
presentation, and demonstration techniques.
2. Research the following two industries and report on the methods and
approaches that each uses to sell its products: (a) airplane
manufacturers, and (b) manufacturers of household products.
3. Contact three salespeople (one who sells to manufacturers, one who
sells to resellers, and one who sells to the national government) andask them how they prepare for their sales presentations and
demonstrations. Are there major differences? What similarities
emerged?
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 52
Projects for Personal Growth contd
4. With a classmate, take turns playing the role of a publishing companysales rep trying to sell a new textbook to a college professor who mightbe nicknamed Skeptical Sid. Then prepare a writtensalespresentation to sell a textbook to the instructor of your personal sellingclass. Depending on how creative or cooperative your instructor is, you
may want to ask him or her to play one of the prospect stereotypesdescribed in Table 6.2.
5. Assume that you are a sales representative for a manufacturer ofautomatic fire sprinkler systems for commercial buildings. Outline sales
presentations using each of the seven basic strategies. For eachstrategy, create and then describe the individual prospect or group ofprospects to whom youre presenting.
Case 6 1: Self Analysis of a
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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 53
Case 6.1: Self-Analysis of a
Sales Presentation
1. What should Peter say and do now? How do you think Mr.Spearman will react? Why?
2. What do you think about Peters sales presentation? What
could he have done better?
3. What advice would you give Peter for capitalizing on the
interest Mr. Spearman showed in environmental
packaging?
4. Should Peter mention the union strike at Megastar?
Case 6 2: What Makes Him
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Case 6.2: What Makes Him
So Successful?
1. What do you think Dan will tell Wanda about his sellingphilosophy and use of different sales presentationstrategies?
2. Describe in a few sentences the most important lesson youthink Wanda should have learned on her day in the fieldwith Dan.
3. What advice would you offer Wanda to help her sell moresuccessfully in her sales territory?
Case 6.2 is found online at
http://college.hmco.com/pic/andersonps2e.
http://college.hmco.com/pic/andersonps2ehttp://college.hmco.com/pic/andersonps2e