selling ingram, laforge, avila, schwepker, and williams
DESCRIPTION
Selling Ingram, Laforge, Avila, Schwepker, and Williams. Multimedia Presentations Steven J. Remington, Ph.D. Buena Vista University August, 2000. Module 1 An Overview of Personal Selling. Evolution of Personal Selling. Early Origins of Personal Selling Industrial Revolution Era - PowerPoint PPT PresentationTRANSCRIPT
Copyright © 2001 by Harcourt, Inc.
1
SellingSellingIngram, Laforge, Avila, Schwepker,
and Williams
Multimedia PresentationsSteven J. Remington, Ph.D.
Buena Vista University
August, 2000
Copyright © 2001 by Harcourt, Inc.
1
Module 1 An OverviewAn Overview
ofofPersonal SellingPersonal Selling
Copyright © 2001 by Harcourt, Inc.
1
Evolution of Personal SellingEvolution of Personal Selling
• Early Origins of Personal Selling• Industrial Revolution Era
– (1700s Europe; 1850s US)
• Post-Industrial Revolution Era – (1800s Europe; 1900 US)– Canned Sales Presentation
• The War and Depression Era• Professionalism: The Modern Era
Copyright © 2001 by Harcourt, Inc.
1
Characteristics of Sales Characteristics of Sales ProfessionalismProfessionalism
• Customer Orientation
• Use of Truthful and Nonmanipulative Tactics
• Focus on Long-Term Satisfaction of Customer and Selling Firm
Copyright © 2001 by Harcourt, Inc.
1
Cost/Sales CallCost/Sales Call
$80-$242/ call
Copyright © 2001 by Harcourt, Inc.
1
Contributions of Personal SellingContributions of Personal SellingSalespeople and Society
• Salespeople as Economic Stimuli
• Salespeople and Diffusion of Innovation
Copyright © 2001 by Harcourt, Inc.
1
Contributions of Personal SellingContributions of Personal Selling Salespeople and the Employing Firm
• Salespeople as Revenue Producers
• Market Research and Feedback
• Salespeople as Future Managers
Copyright © 2001 by Harcourt, Inc.
1
Contributions of Personal SellingContributions of Personal Selling Salespeople and the Customer
• Are honest
• Understand general business and economic trends, as well as the buyer's business
• Provide guidance throughout the sales process
• Help the buyer to solve problems
• Have a pleasant personality and a good professional image
• Coordinate all aspects of the product and service to provide a total package
Industrial buyers prefer to deal with salespeople who:
Copyright © 2001 by Harcourt, Inc.
1
Classification Of Personal Selling Classification Of Personal Selling JobsJobs
• Sales Support Personnel– Missionary Salespeople
• Detailer
– Technical Support Salespeople
• New Business– Pioneers
– Order-getters
• Existing Business– Order-takers
• Insider Sales (non-retail)
• Direct-to-Consumer Sales (retail)
• Combination Sales Jobs
Copyright © 2001 by Harcourt, Inc.
1
Characteristics Of Sales Characteristics Of Sales CareersCareers
• Job Security• Advancement
Opportunities• Immediate Feedback• Prestige• Job Variety• Independence• Compensation• Boundary-Role Effects
Copyright © 2001 by Harcourt, Inc.
1
Boundary-Role EffectsBoundary-Role Effects Role Role StressStress
• Role Conflict• Role Ambiguity• Role stress must be dealt with to insure
maximum sales productivity
Copyright © 2001 by Harcourt, Inc.
1
Qualifications And Skills Required Qualifications And Skills Required For Success By SalespeopleFor Success By Salespeople
• Empathy– To see things as others would see them
• Ego Drive– Determination to achieve goals
• Ego Strength– Self-assured and self-accepting
• Interpersonal Communication Skills– Including listening and questioning
• Enthusiasm– In general, and for sales as a career
• Additional Characteristics Related to a Given Sales Job
Copyright © 2001 by Harcourt, Inc.
1
Managing the Sales ForceManaging the Sales Force
(1:26)
Copyright © 2001 by Harcourt, Inc.
1
Module 2
Understanding Buyers
Copyright © 2001 by Harcourt, Inc.
1
Types of Buyers
• Consumer Markets
• Business Markets
Copyright © 2001 by Harcourt, Inc.
1
Distinguishing Characteristics of Business Markets
• Buyers are Larger but Fewer in Number
• Derived Demand
• Higher Levels of Demand Fluctuation
• Purchasing Professionals
• Multiple Buying Influences
• Close Buyer-Seller Relationships– Supply Chain Management
Copyright © 2001 by Harcourt, Inc.
1
The Buying Process(Figure 2.1)
Determination of Item and Quantity Needed
Recognition of the Problem or Need
Initiating the Relationship• Gathering and Studying Pre-call Information• Approaching and Initiating Contact• Assessing the Situation and Discovering Needs
Copyright © 2001 by Harcourt, Inc.
1
Selection of an Order Routine
Evaluation of ProposalsAnd Selection of Suppliers
The Buying Process(Figure 2.1)
Acquisition and Analysisof Proposals
Recognition
Initiating the Relationship
Developing the Relationship• Select Presentation• Explain Features• Confirm Benefits• Handle Objections• Earn and Gain Commitment
Search and QualificationOf Potential Sources
Description of Item andQuantity Needed
Determination
Copyright © 2001 by Harcourt, Inc.
1
The Buying Process(Figure 2.1)
Recognition of the Problem or Need
Determination
Recognition
Initiating the Relationship
Description
Search and Qualification
Proposals
Selection of Suppliers
Order Routine
Developing the Relationship
Enhancing the Relationship• Follow-up to Assess Customer Satisfaction• Take Action to Assure Customer Satisfaction• Encourage Critical Encounters• Expand Collaborative Involvement• Add Values and Enhance Mutual Opportunities
Copyright © 2001 by Harcourt, Inc.
1
Phase One
Recognition of the Problem or Need: The Needs Gap
(Figure 2.2)
Desired State Produce 1,250 units/day
Actual State Produce 1,000 units/day
The GapOr
Need250 units/day
Copyright © 2001 by Harcourt, Inc.
1
Complex Mix of Business Buyer Needs
(Figure 2.3)
OrganizationalOrganizationalNeedsNeeds
IndividualIndividualNeedsNeeds
Functional
Functional
Psychological
Psychological
Knowledge
Knowledge
Social
Social
Situational
Situational
Copyright © 2001 by Harcourt, Inc.
1
Phase Two
Determination of Characteristics of the Item and the Quality
Needed Phase ThreePhase Three
Description of Characteristics of Description of Characteristics of the Item and the Quality Needed the Item and the Quality Needed
Phase FourPhase Four
Search for and Qualification of Search for and Qualification of Potential SourcesPotential Sources
Copyright © 2001 by Harcourt, Inc.
1
Phase Five
Acquisition and Analysis of Proposals
Evaluating Suppliers and ProductsMulti-Attribute Model
– Assessment of Product or Supplier Performance (P)
– Assessing the Relative Importance of Each Characteristic (I)
Copyright © 2001 by Harcourt, Inc.
1
Phase FiveAcquisition and Analysis of Acquisition and Analysis of
ProposalsProposalsMulti-Attribute Model of Adhesives by
GM BuyersExhibit 2.5
Weighted Averages for Performance and Overall Evaluation Scores
Characteristics BondIt #302 AdCo #45 StikFast #217P I P*I P I P*I P I P*I
Quoted Price 5 10 50 9 10 90 7 10 70Durability 6 9 54 8 9 72 9 9 81Ease of Application 10 8 80 5 8 40 8 8 64Service Factors 5 8 40 8 8 64 10 8 80Reliability 8 7 56 10 7 70 5 7 35Bonding Time 8 6 48 6 6 36 4 6 24Non-Toxic 8 6 48 10 6 60 8 6 48Shelf-life in Storage 9 6 54 6 6 36 6 6 36
Overall Evaluation Score 430 468 438
P = Product Performance Scores I = Relative Importance of Characteristic
Copyright © 2001 by Harcourt, Inc.
1
Phase Five
Acquisition and Analysis of Proposals
Employing Buyer Evaluation Procedures to Enhance Selling Strategies
• Modify the Product Offering Being Proposed• Alter the Buyer’s Beliefs about the Proposed
Offering• Alter the Buyer’s Beliefs about the
Competitor’s Offering• Alter the Importance Weights• Call Attention to Neglected Attributes
Copyright © 2001 by Harcourt, Inc.
1
Phase Six
Evaluation of Proposals and Selection of Supplier
Phase SevenPhase Seven
Selection of Order RoutineSelection of Order Routine
Phase EightPhase Eight
Performance Evaluation and Performance Evaluation and FeedbackFeedback
Copyright © 2001 by Harcourt, Inc.
1
Phase Eight
Performance Evaluation and Feedback
• Understanding Post-Purchase Evaluation and the Formation of Satisfaction
Copyright © 2001 by Harcourt, Inc.
1
(Figure 2.4) Complex Mix of Business Buyer
Needs
BuyersLevel of
Satisfaction
63%Level of Influence
On Buyers’ Satisfaction
37%Level of Influence
On Buyers’ Satisfaction
Psychological
Attributes
“Delighters”
Functional
Attributes
“Must-Haves”
Copyright © 2001 by Harcourt, Inc.
1
Phase Eight
Performance Evaluation and Feedback
• Understanding Post-Purchase Evaluation and the Formation of Satisfaction
• The Growing Importance of Salespeople in Buyer’s Post-Purchase Evaluation
Copyright © 2001 by Harcourt, Inc.
1
Types of Purchasing Decisions Buying Situation
• Straight Rebuy Buying Situation– Routinized Response Behavior
• Modified Rebuy Buying Situation– Limited Problem Solving
• New Task Buying Situation– Extensive Problem Solving
Copyright © 2001 by Harcourt, Inc.
1
Types of Purchasing Decisions Three Types of Buying Decisions
(Exhibit 2.6)
DECISION TYPE
Newness of Problem or NeedInformation RequirementsInformation SearchConsideration of New AlternativesMultiple Buying InfluenceFinancial Risks
Copyright © 2001 by Harcourt, Inc.
1
Types of Purchasing Decisions Three Types of Buying Decisions
(Exhibit 2.6)
DECISION TYPE
Straight Rebuy
Newness of Problem or Need Low
Information Requirements Minimal
Information Search Minimal
Consideration of New Alternatives None
Multiple Buying Influence Very Small
Financial Risks Low
Copyright © 2001 by Harcourt, Inc.
1
Types of Purchasing Decisions Three Types of Buying Decisions
(Exhibit 2.6)
DECISION TYPE
Straight Rebuy Modified Rebuy
Newness of Problem or Need Low Medium
Information Requirements Minimal Moderate
Information Search Minimal Limited
Consideration of New Alternatives None Limited
Multiple Buying Influence Very Small Moderate
Financial Risks Low Moderate
Copyright © 2001 by Harcourt, Inc.
1
Types of Purchasing Decisions Three Types of Buying Decisions
(Exhibit 2.6)
DECISION TYPE
Straight Rebuy Modified Rebuy New Task
Newness of Problem or Need Low Medium High
Information Requirements Minimal Moderate Maximum
Information Search Minimal Limited Extensive
Consideration of New Alternatives None Limited Extensive
Multiple Buying Influence Very Small Moderate Large
Financial Risks Low Moderate High
Copyright © 2001 by Harcourt, Inc.
1
Organizational Buyer BehaviorBuying Center
• Initiators
• Users
• Gatekeepers
• Influencers
• Deciders
• Purchasers
Copyright © 2001 by Harcourt, Inc.
1
Current Developments in Purchasing
• Increasing Use of Information Technology• Relationship Emphasis on Cooperation and
Collaboration• Supply Chain Management• Increased Outsourcing• Target Pricing• Increased Importance of Knowledge and
Creativity
Copyright © 2001 by Harcourt, Inc.
1
Module 3
Building Trust
Copyright © 2001 by Harcourt, Inc.
1
Buyers define trust using terms such as:
• Openness• Dependability• Candor• Honesty• Confidence
• Security• Reliability• Fairness• Predictability
Copyright © 2001 by Harcourt, Inc.
1
What is Trust?• Trust answers the questions:
– Do you know what you are talking about?– Will you recommend what is best for me?– Are you truthful?– Can you and your company back up your
promises?– Will you safeguard confidential information
that I share with you?
Copyright © 2001 by Harcourt, Inc.
1
Why is Trust Important?
The shift toward relationship selling emphasizes the initiation and nurturing of long-term buyer-seller relationships based on mutual trust and value-added benefits.
Copyright © 2001 by Harcourt, Inc.
1
How to Earn TrustTrust Builders
(Figure 3.1)
Trust
Expertise
Dependability
RepresentationCompetence
Compatibility/Likeability
Candor
Contribution
CustomerOrientation
Copyright © 2001 by Harcourt, Inc.
1
Knowledge Bases Help Build Trust and Relationships
(Figure 3.2)Industry
Service
ProductCompetition
Company
Price/Promotion
Technology
Market/Customer
PossibleKnowledge Bases
Copyright © 2001 by Harcourt, Inc.
1
Sales EthicsImage of Salespeople
Television, movies, broadway productions, and the popular press have contributed to a negative image of salespeople portraying them as being associated with deceptive,
illegal, and non-customer-oriented behavior.
Copyright © 2001 by Harcourt, Inc.
1
Sales EthicsImage of Salespeople
Deceptive Practices• When salespeople give answers when they
do not know, exaggerating product benefits, and withholding information may jeopardize future dealings with the buyer.
• Salespeople can create product liabilities by:– Expressed Warranty – Misrepresentation– Negligence
Copyright © 2001 by Harcourt, Inc.
1
Sales EthicsImage of Salespeople
Illegal Activities
• Defraud• Con• Misuse Company Assets
Copyright © 2001 by Harcourt, Inc.
1
Sales EthicsImage of Salespeople
Non-Customer-Oriented Behavior
• Pushy• Hard Sell• Fast Talking• High Pressure
Copyright © 2001 by Harcourt, Inc.
1
Sales EthicsImage of Salespeople
(Exhibit 3.8)
Deceptive PracticesDeceptiveDeceiveHustleScam
ExaggerateWithhold
Bluff
Non-Customer-Oriented BehaviorPushy
Hard SellFast Talking
High Pressure
Illegal ActivitiesDefraud
ConMisuse Company Assets
Copyright © 2001 by Harcourt, Inc.
1
Module 4
Communication Skills
Copyright © 2001 by Harcourt, Inc.
1
Sales Communication as a Collaborative Process
• Relational Sales Communication – A two-way and naturally collaborative
interaction– Allows buyers and sellers to
• Develop a better understanding of the need situation
• Work together to best provide for the customer’s needs
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Questioning
Types of Questions Classified by Amount and Specificity of Information Desired
• Open-end or Nondirective Questions – free responseWhat happens when…?How do you feel…?Describe the…
• Closed-end Questions – response limited to a few words.
– Are you…– How many…– How often…
• Dichotomous/Multiple-Choice Questions – directive forms of questioning– Which do you prefer, the ____ or the ____?
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Questioning
Types of Questions Classified by Strategic Purpose
• Probing Questions – designed to penetrate below generalized or superficial information
1. Requesting Clarification “Can you share an example of that with me?”
2. Encouraging Elaboration “How are you dealing with that situation now?”
3. Verifying Information and Responses“So, if I understand you correctly… Is that right?”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Questioning
Types of Questions Classified by Strategic Purpose
• Probing Questions • Evaluative Questions – use open- and closed-end
question formats to gain confirmation and to uncover attitudes, opinions, and preferences of customer.
– “How do you feel about…?”
– “Do you se the merits of…?”
– “What do you think…?”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Questioning
Types of Questions Classified by Strategic Purpose
• Probing Questions • Evaluative Questions• Tactical Questions – used to shift or redirect the topic
of discussion
– “Earlier you mentioned that…”
– “Could you tell me more about how that might affect…”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Questioning
Types of Questions Classified by Strategic Purpose
• Probing Questions • Evaluative Questions• Tactical Questions
• Reactive Questions – refer to or directly result from information previously provided by the other party.
– “You mentioned that … Can you give me an example of what you mean?”
– “That is interesting. Can you tell me how it happened?”
Copyright © 2001 by Harcourt, Inc.
1Guidelines for Combining Types of Questions for
Maximal Effectiveness(Exhibit 4.1)
Am
oun
t of
an
d S
pec
ific
ity
of I
nfo
rmat
ion
Des
ired
Ch
oice
fro
mA
lter
nat
ives
Dis
cuss
ion
an
dIn
terp
reta
tion
Con
firm
atio
n a
nd
Agr
eem
ent
Explore and Digfor Details
Gain Confirmation& Discover
Attitudes/Opinions
Change Topics orDirect Attention
Follow-UpPreviously Elicited
Statements
Amount of and Specificity of Information Desired
Open-end QuestionsDesigned to be
Probing in Nature
Closed-end QuestionsDesigned to be
Probing in Nature
Dichotomous orMultiple-choice Questions
Designed to beProbing in Nature
Open-end QuestionsDesigned to be
Reactive in Nature
Closed-end QuestionsDesigned to be
Reactive in Nature
Dichotomous orMultiple-choice Questions
Designed to beReactive in Nature
Open-end QuestionsDesigned to be
Tactical in Nature
Closed-end QuestionsDesigned to be
Tactical in Nature
Dichotomous orMultiple-choice Questions
Designed to beTactical in Nature
Open-end QuestionsDesigned to be
Evaluative in Nature
Closed-end QuestionsDesigned to be
Evaluative in Nature
Dichotomous orMultiple-choice Questions
Designed to beEvaluative in Nature
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Strategic Application of Questioning
• Generate Buyer Involvement• Provoke Thinking• Gather Information• Clarification and Emphasis• Show Interest• Gain Confirmation• Advance the Sale
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:SPIN Questioning System
• Situation Questions – solicits general background information and descriptions of the buyer’s existing situation– “Who are your current suppliers?”
– “Do you typically purchase or lease?”
– “Who is involved in the purchasing decisions?”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:SPIN Questioning System
• Situation Questions • Problem Questions – follow and relate to situation questions
probing for specific difficulties, developing problems, and areas of dissatisfaction– “How critical is this component for your production?”
– “What kind of problems have you encountered with your current suppliers?”
– “What types of reliability problems do you experience with your current system?”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:SPIN Questioning System
• Situation Questions
• Problem Questions
• Implication Questions – follow and relate to information from the problem questions assisting the buyer in understanding the potential problems of the current problem and the urgency in resolving it– “How does this affect profitability?”– “What impact does the slow response of your current supplier have on the
productivity of your operation?”– “How would a faster piece of equipment improve productivity and
profits?”– “What happens when the supplier is late with a shipment?”
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:SPIN Questioning System
• Situation Questions
• Problem Questions
• Implication Questions• Need-payoff Questions – used to propose a solution and
develop commitment from the buyer, based on the implications of the problem– “Would more frequent deliveries allow you to increase productivity?”
– “If we could provide you increased reliability, would you be interested?”
– “If we could improve the quality of your purchased components, how would that help you?”
– “Would you be interested in increasing productivity by 15 percent?”
Copyright © 2001 by Harcourt, Inc.
1Funneling Sequence of ADAPT Techniques for Needs Discovery
(Figure 4.1)
• Broad bases and general facts describing situation• Non-threatening as no interpretation is requested• Open-end questions for maximum information
Assessment QuestionsAssessment Questions
• Questions probing information gained in assessment• Seeking to uncover problems or dissatisfactions that
could lead to suggested buyer needs• Open-end questions for maximum information
Discovery QuestionsDiscovery Questions
• Show the negative impact of a problem discovered in the discovery sequence
• Designed to activate buyer’s interest in and desire to solve the problem.
Activation QuestionsActivation Questions
• Projects what life would be like without the problems• Buyer establishes the value of finding and
implementing a solution
Projection QuestionsProjection Questions
• Confirms interest in solving the problem• Transitions to presentation of solution
Transition QuestionsTransition Questions
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Listening(Figure 4.2)
EffectiveActive
Listening
PayAttention
MonitorNon-Verbals
Paraphraseand Repeat
Make NoAssumptions
EncourageBuyer to Talk
Visualize
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Using Different Types of Listening
• Social Listening• Serious Listening
– Active Listening
– Concentration
– Cognition
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:SIER Hierarchy Active Listening
(Figure 4.3)
Sensing
Interpreting
Evaluating
Responding
Copyright © 2001 by Harcourt, Inc.
1
Verbal Communication:Giving Information
• Understanding the Superiority of Pictures over Words
• Impact of Grammar and Logical Sequencing
Copyright © 2001 by Harcourt, Inc.
1
Nonverbal Communication• Facial Expressions• Eye Movements• Placement and Movements of Hands, Arms, Head,
and Legs• Body Posture and Orientation• Proxemics• Variation in Voice Characteristics
– Speaking Rate and Pause Duration– Pitch or Frequency– Intensity and Loudness
Copyright © 2001 by Harcourt, Inc.
1
Common Nonverbal Clusters(Exhibit 4.8)
Cluster Name Cluster Meaning Body Posture & Orientation
Movement of Hands, Arms, & Legs
Eyes & Facial Expression
Openness Openness, flexibility and sincerity
• Moving closer• Leaning forward
• Open hands• Removing coat• Unbutton collar• Uncrossed arms & legs
• Slight smile• Good eye contact
Defensiveness Defensiveness, skepticism, and apprehension
• Rigid body • Crossed arms & legs • Minimal eye contact• Glancing sideways• Pursed lips• Tilted head
Evaluation Evaluation and consideration of message
• Leaning forward • Hand on cheek• Stroking chin• Chin in palm of hand
• Dropping glasses to lower nose
Deception Dishonesty and secretiveness
• Patterns of rocking • Fidgeting with objects• Increased leg movement
• Increased eye movement• Frequent gazes elsewhere• Forced smile
Readiness Dedication or commitment
• Sitting forward • Hands on hips• Legs uncrossed• Feet flat on floor
• Increased eye contact
Boredom Lack of interest and impatience
• Head in palm of hands• Slouching
• Drumming fingers• Swinging a foot• Brushing & picking at items• Tapping feet
• Poor eye contact• Glancing at watch• Blank stare
Copyright © 2001 by Harcourt, Inc.
1Written Communication:
Sales ProposalsThe Seven Deadly Mistakes of Proposal
Writing1. Not writing a proposal.
2. Not fully understanding the customer’s business.
3. Missing the buyer’s deadline.
4. Producing a proposal with little “drive-up” appeal.
5. Not saying anything that really makes a difference.
6. Using a standardized boilerplate approach.
7. No one owning the responsibility or having the authority to create quality and effective proposals.
Copyright © 2001 by Harcourt, Inc.
1
Written Communication:Sales Proposals
5 Common Parts of a Proposal
1. Executive Summary
2. Needs and Benefits Analysis
3. Company Description
4. Pricing and Sales Agreement
5. Suggested Action and Timetable
Copyright © 2001 by Harcourt, Inc.
1
Module 5
Self-Leadership and Teamwork Skills
Copyright © 2001 by Harcourt, Inc.
1
Five Sequential Stages of Self-Leadership
(Figure 5.1)
SettingGoals &
Objective
TerritoryAnalysis &
AccountClassification
Development &ImplementationOf Strategies &
Plans
TappingTechnology
& Automation
Assessment&
Evaluation
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-LeadershipStage One: Setting Goals and Objectives
What makes a good goal?Realistic, yet ChallengingSpecific and QuantifiableTime Specific
Working with different levels and types of goalsPersonal GoalTerritory GoalAccount Goal
Sales Call Goal
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Two: Territory Analysis and Account
ClassificationTerritory Analysis
Who are prospective buyers?
Where are they located?
What and why do they buy?
Who has the authority to buy, who influences the buying decision?
What is the probability of selling this account?
What is the potential share of account that might be gained?
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Two: Account Classification
Class of Account
Schema One:InquisLogic, Inc.
Schema Two:Web Resource
Associates, LLC
Schema Three:Federal Metal
Products
“A” Accounts
Accounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 24
Accounts with highest potential (20% of accts; 80% of sales) Annual # of calls = 52
High volume current customers (20% of accts; 80% of sales)Annual # of calls = 48
“B” Accounts
Medium potential accounts (80% of accts; 20% of sales)Annual # of calls = 12
Accounts with moderate sales potential, but who are regular/reliable customersAnnual # of calls = 24
Accounts with high potential, but who are not current customersAnnual # of calls = 12
“C” Accounts
Accounts with least sales potential
Annual # of calls = 4
Lower sales potential accounts
Annual # of calls = 8
Medium potential accounts that are current customers
Annual # of calls = 12
“D” Accounts
None – This schema uses only 3 classes of accounts
Accounts that cost more than they produce in sales or profitsAnnual # of calls = 0
Accounts with medium potential, but who are not current customersAnnual # of calls = 6
Exhibit 5.4 – Different Single Factor Account SchemaExhibit 5.4 – Different Single Factor Account Schema
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Two: Account Classification
(Exhibit 5.5)Portfolio Model Segments and Strategies
Competitive Position
Segment 1Level of AttractivenessSelling Effort Strategy
Segment 2Level of AttractivenessSelling Effort Strategy
Segment 4Level of AttractivenessSelling Effort Strategy
Segment 3Level of AttractivenessSelling Effort Strategy
Strong Weak
Low
Hig
h
Acc
oun
t O
ppor
tun
ity
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Three: Developing and
Implementation of Strategies and Plans• Establishing and Implementing Selling Task and Activity
Plans– Do them, and do them in writing
– Keep it current and flexible
• Establishing Territory Route Plans– Straight-Line Route Pattern
– Cloverleaf Route Pattern
– Circular Route Pattern
– Leapfrog Route Pattern
– Major-City Route Pattern
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Four: Tapping Technology and
Automation• Computers
– Siebel Systems
– Proximity
• Internet and World Wide Web– Internet
– Intranets and Extranets
• Pagers and Cell Phones
• Voice Mail
• High-Tech Sales Support Offices
Copyright © 2001 by Harcourt, Inc.
1
Effective Self-Leadership Stage Five: Assessment of Performance and
Goal Attainment
Copyright © 2001 by Harcourt, Inc.
1
Increasing Customer Value through Teamwork
• Internal Partnerships and Teams
• Sales Partnerships
• Marketing Partnerships
• Administrative Support Partnerships
• Shipping and Transportation Partnerships
• Customer Service Partnerships
Copyright © 2001 by Harcourt, Inc.
1
Building Teamwork Skills• Understanding the Other Individuals
• Attending to the Little Things
• Keeping Commitments
• Clarifying Expectations
• Showing Personal Integrity
• Apologizing Sincerely When a Mistake Is Made
Copyright © 2001 by Harcourt, Inc.
1
Relationship of Optimized Solutions, Trust, and Cooperation
(Figure 5.7)
Low HighMutual Cooperation
Low
Hig
h
Mu
tual
Tru
st
Competitive and Defensive Outcomes
(Win/Lose orLose/Win
Optimized andSynergistic Solutions
(Win/Win)
CompromiseSolutions
Copyright © 2001 by Harcourt, Inc.
1
Module 6Module 6 Personal Selling:Personal Selling:
Approaches and ProcessApproaches and Process
Copyright © 2001 by Harcourt, Inc.
1
Classification of Personal Selling Classification of Personal Selling Approaches Approaches
Stimulus-Response Selling(Figure 6.1)
Salesperson Provides Stimuli
BuyerResponses
Sought
ContinueProcess
untilPurchaseDecision
Copyright © 2001 by Harcourt, Inc.
1
Classification of Personal Selling Classification of Personal Selling ApproachesApproaches
Mental-States Selling
• Attention
• Interest
• Desire
• Action
Conviction
Copyright © 2001 by Harcourt, Inc.
1
Classification of Personal Selling Classification of Personal Selling ApproachesApproaches
Need-Satisfaction Selling(Figure 6.2)
Uncover andConfirm
BuyerNeeds
PresentOffering to
Satisfy BuyerNeeds
ContinueSellinguntil
PurchaseDecision
Copyright © 2001 by Harcourt, Inc.
1
Classification of Personal Selling Classification of Personal Selling ApproachesApproaches
Problem Solving Selling(Figure 6.3)
DefineProblem
GenerateAlternativeSolutions
ContinueSellinguntil
PurchaseDecision
EvaluateAlternativeSolutions
Copyright © 2001 by Harcourt, Inc.
1
Classification of Personal Selling Classification of Personal Selling ApproachesApproaches
Consultative Selling
• Strategic Orchestrator
• Business Consultant
• Long-term Ally
The process of helping customers reach their strategic goals by using
the products, service, and expertise of the selling organization.
Three Primary Roles:
Copyright © 2001 by Harcourt, Inc.
1
Sales PlanningSales Planning
(1:39)
Copyright © 2001 by Harcourt, Inc.
1
Sales Process ModelSales Process Model(Figure 6.4)
SalespersonAttributes
SellingStrategy
InitiatingCustomer
Relationships
DevelopingCustomer
Relationships
EnhancingCustomer
Relationships
Copyright © 2001 by Harcourt, Inc.
1
Initiating Customer RelationshipsInitiating Customer Relationships Prospecting Methods
(Exhibit 6.3)
• External Sources:– Referral Approach
– Community Contact
– Contact Organizations
– Introduction Approach
– Noncompeting Salespeople
– Cultivate Visible Accounts
• Internal Sources:– Examine Records– Inquiries to Advertising– Phone/Mail Inquiries
• Personal Contact:– Personal Observation– Cold Canvassing
• Miscellaneous:– Hold/Attend Trade Shows– Bird Dogs– Sales Seminar
Copyright © 2001 by Harcourt, Inc.
1
• Compatibility• Accessibility• Eligibility• Authority• Profitability
Initiating Customer RelationshipsInitiating Customer Relationships Screening Criteria
Copyright © 2001 by Harcourt, Inc.
1
Initiating Customer RelationshipsInitiating Customer Relationships Prospecting Issues
• Which method works best?• Cold-call reluctance• Using technology to complete the
basic tasks of prospecting– Tele-prospecting
Copyright © 2001 by Harcourt, Inc.
1
Initiating Customer RelationshipsInitiating Customer Relationships Pre-call Planning
• Preapproach; customer related research– Gathering information about the prospect that will be
used to formulate the sales presentation
• Sales Presentation Planning; increased importance in recent years– Salesperson must begin with an objective(s)
Copyright © 2001 by Harcourt, Inc.
1
Sales-Presentation PlanningSales-Presentation Planning Sales Presentation Format
Canned Sales Presentation
• Pros– Logical
– Complete
– Minimizes sales resistance by anticipating prospect’s objections
– Can be used by an inexperienced salesperson
• Cons– Unable to tailor
message to the prospect
– Does not handle interruptions well
– Hard to use with broad product line
– May alienate buyers
Copyright © 2001 by Harcourt, Inc.
1
• Organizes the key points into a planned sequence that allows for adaptive behavior– Feedback from buyer is encouraged
• Con– Requires a salesperson with more product knowledge
and selling experience
Sales-Presentation PlanningSales-Presentation Planning Sales Presentation Format
Organized Sales Presentation
Copyright © 2001 by Harcourt, Inc.
1
• Used in competitive bidding situations and when dollar value of sale is large
• Pros– Written word is usually accepted as being more
credible
– Technical information, pricing data, and perhaps a timetable are available for review
Sales-Presentation PlanningSales-Presentation Planning Sales Presentation Format
Sales Proposal
Copyright © 2001 by Harcourt, Inc.
1
Sales Mix ModelSales Mix Model(Figure 6.5)
PresentationPace
PresentationScope
Depth ofInquiry
Use ofVisual Aids
Two-WayCommunication
Prospect
Copyright © 2001 by Harcourt, Inc.
1
Approaching the CustomerApproaching the Customer
• Getting the appointment• Starting the sales call
– Establish harmonious atmosphere
– Observe rules of common courtesy
– Ascertain customer needs
– Ask questions and listen
– Focus on benefits to the customer
Copyright © 2001 by Harcourt, Inc.
1
Developing Customer RelationshipsDeveloping Customer RelationshipsSales Presentation Delivery
• Building Credibility– Personal Behavior
– Sales Techniques• Conservative Claims
• Third-party Evidence
• Testimonials
• Guarantees and Warranties
• Achieving Clarity• Addressing Customer Concerns
Copyright © 2001 by Harcourt, Inc.
1
Gaining Customer CommitmentGaining Customer Commitment
• Avoid high-pressure sales techniques• Seek commitment if prospect has voiced no
concerns• Seek commitment if prospect concerns have
been adequately addressed• Avoid “early and often” mentality• Suggest a specific course of action
Copyright © 2001 by Harcourt, Inc.
1
Relationship Enhancement Relationship Enhancement Activities Activities
• Entering orders• Expediting orders• Installing the product or service• Training customer personnel• Resolving complaints• Correcting billing errors
Copyright © 2001 by Harcourt, Inc.
1
Module 7 Initiating the Relationship
Copyright © 2001 by Harcourt, Inc.
1
The Challenges of Prospecting
5% of unplanned cold calls result in a sale…
Roughly 25-30% of preplanned calls produce a sale
Copyright © 2001 by Harcourt, Inc.
1
The Challenges of ProspectingBuyers will not take the time to see a
salesperson because:1. They may have never heard of the salesperson’s firm.
2. They may have no need; they just bought the product category.
3. The buyer may have their own deadlines on other issues.
4. Buyers are constantly getting calls from salespeople and do not have the time to see them all.
5. Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.
Copyright © 2001 by Harcourt, Inc.
1
The Challenges of ProspectingStrategic Prospecting
(Figure 7.1)
Sales Lead Qualified ProspectProspect
Salespeople must develop leads into prospects -
Salesperson must do homework on company…“Will it be a profitable account?”
“Does the buyer have genuine interest in our offering?”
Copyright © 2001 by Harcourt, Inc.
1
The Challenges of ProspectingLocating Prospects
• External Sources– Referrals– Introductions– Community Contacts (Centers
of Influence)– Organizations– Non-competing Salespeople– Visible Accounts
• Internal Sources– Company Records– Lists and Directories– Advertising Inquiries– Telephone Inquiries– Mail Inquiries– Internet or World Wide Web
• Personal Contact– Observation
– Cold Canvassing
– Trade Shows
– Bird Dogs (Spotters)
Copyright © 2001 by Harcourt, Inc.
1
The Challenges of ProspectingQualifying Prospects
1. Can benefit from the sales offering.
2. Have the financial wherewithal to make the purchase.
3. Play an important role in the purchase decision process.
4. Are eligible to buy based on a fit within the selling strategy.
5. Are reasonably accessible and willing to consider the sales offering.
6. Can be added to the customer base at an acceptable level of profitability
At a minimum, qualified prospects are those who:
Copyright © 2001 by Harcourt, Inc.
1Obtaining Precall Information on the
Buyer(Exhibit 7.4)
Information Needed How to Collect Information
The prospect’s name and title
Correct spelling and pronunciation
Can be gathered by asking the receptionist or secretary or gatekeeper to verify information.
Is this prospect willing to take risks?
Are they confident with their decision making?
May have to ask the prospect
Is the buyer involved in their community?
Do they belong to clubs or professional organizations?
Observe club or organizational honors displayed in the office.
Does the prospect have hobbies or interests they are proud of?
Observation of office.
What is the prospect’s personality type? Easy going? All business?
Observation and experience with buyer.
Where did this prospect grow up?
Where were they educated?
Look for diplomas. Ask.
Copyright © 2001 by Harcourt, Inc.
1
Gathering Information on the Prospect’s Organization
(Exhibit 7.5)Information Needed How to Collect Information
What type of business are we dealing with? Can be gathered from a directory.
To what market does the company sell?
Who are its primary competitors?
What does the company make and sell?
Annual reports.
Who does the prospect presently buy from?
Do they buy from a single vendor? Multiple vendors?
How long have they purchased from their suppliers?
What problems does the company face?
What volume does the company buy?
What is the organization’s financial position?
Salesperson may have to ask for this information.
Copyright © 2001 by Harcourt, Inc.
1
Determining Other Buyer’s Influences
(2:45)
Copyright © 2001 by Harcourt, Inc.
1
Planning the Initial Sales CallEstablishing Presentation Objectives
1. Getting the order is the ultimate objective.
2. To introduce the salesperson and his/her company.
3. To obtain personal and business information.
4. To provide company literature.
5. To conduct a needs assessment.
6. To demonstrate a new product offering.
7. To provide postsale service.
Copyright © 2001 by Harcourt, Inc.
1
Planning the Initial Sales Call
Approaching and Initiating ContactIntroduction ApproachProductivity Approach
Benefit ApproachQuestion ApproachReferral Approach
Compliment ApproachSurvey Approach
Copyright © 2001 by Harcourt, Inc.
1
Assessing the Situation and Discovering Needs through
Questioning Skills
Assessment QuestionsAssessment Questions
Discovery QuestionsDiscovery Questions
Activation QuestionsActivation Questions
Projection QuestionsProjection Questions
Transition QuestionsTransition Questions
Figure 4.1 – The Adapt Process
Copyright © 2001 by Harcourt, Inc.
1 Questioning and Listening…the key element of good
communication
Copyright © 2001 by Harcourt, Inc.
1
Module 8
Developing the Relationship
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Follow-Up
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
(1:28)
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Copyright © 2001 by Harcourt, Inc.
1
Selecting Appropriate Customer Offerings by Assessing Needs
• Needs result from the a discrepancy between an actual and desired state of being.
• Needs may be classified as: Unrecognized – customer is unaware or has dismissed as trivial
Potential – customer statements of general problems, difficulties, and dissatisfactions
Confirmed – customer states that they are ready to take action
• The emphasis is on determining customer needs and then creating or selecting customer-fitted solutions to satisfy those needs.
Copyright © 2001 by Harcourt, Inc.
1
Selecting Appropriate Customer Offerings by Assessing Motives
• Functional Motives – Driven by price, quality, and service a salesperson can
supply
• Psychological Motives– A buyer’s habits, emotional stress, and confidence
Copyright © 2001 by Harcourt, Inc.
1
Selecting Appropriate Customer Offerings by Assessing Competitive Situation
Understanding a competitor’s strengths/weaknesses allows the salesperson to put the best solution
forward.
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Determine Needs
(1:28)
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Copyright © 2001 by Harcourt, Inc.
1
Types of Sales Presentations
• Canned Presentations
• Organized Presentations
Copyright © 2001 by Harcourt, Inc.
1
The Trust-based Selling Process:A Needs-Satisfaction Consultative Model
(Figure 8.3)
InformationGathering
Approach Presentation HandlingResistance
EarnCommitment
Follow-up
100%
Rel
ativ
e P
arti
cip
atio
n R
ate
Need Development
Need Awareness
Need Fulfillment
A D A P TAsse
ssment
Discovery
Activati
on
Projectio
n
Transiti
on
Select
Featur
e
Explai
n Adv
antag
e
Lead t
o Ben
efits
Let Cus
tomer
Talk
SE
LL
% Time“The Salesperson”Talks/Participates
% Time“The Customer”
Talks/Participates
Copyright © 2001 by Harcourt, Inc.
1
Types of Sales Presentations
• Canned Presentations
• Organized Presentations
• Sales Proposals
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Copyright © 2001 by Harcourt, Inc.
1
Sequence of the Sales Presentation Conclusion
• Following an introduction, questions, careful listening, and confirmation statements should be used to assess the customer’s needs
• Benefits should be presented in order of customer’s needs, should be repeated during the presentation and at the end of the presentation
• Continuation of prior sales calls should start with a summary of earlier calls
• Pricing issues should not be focused on until the customer’s needs have been defined and addressed
A few general rules:
Copyright © 2001 by Harcourt, Inc.
1
Using Visual Aids to Customize and Dramatize the Presentation
• Charts and Graphs• Photographs and Advertisements• Catalogs and Brochures• Electronic Media
– Computer-based Presentation– Videos– Slides– Overhead Transparencies
• Sales Portfolios
Copyright © 2001 by Harcourt, Inc.
1
Concluding the Customized Presentation
Linking Solutions to NeedFeatures Potential Benefits Confirmed Benefits/Unconfirmed
Natural surface cohesiveness
of ultramid, a high tech plastic
golf club
Better launch angle Golf Pro doe not see this as true benefit-not comfirmed
Golf Pro has easy time selling longer distance-confirmed benefit
Bell shaped nozzle on vacuum cleaner
Optimum air flow improves cleaning ability.
Hard for most consumer’s to understand how bell shape improves cleaning-not confirmed
Daily delivery of Frito-Lay potato chips
Retailer can reduce inventory costs
Product freshness leads to customer satisfaction
Not a serious issue for this retailer-not confirmed
Store manager puts huge emphasis on product freshness-confirmed benefit
Technical Support personnel for a computer system
Assistance in installation, maintenance, and expansion
Support is needed-confirmed benefit
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Copyright © 2001 by Harcourt, Inc.
1 Anticipating and Negotiating Concerns and ResistanceReasons Why Prospects Raise
Objections• The prospect wants to avoid the sales interview.• The salesperson has failed to prospect and qualify
properly.• Objecting is a matter of custom.• The prospect resists change.• The prospect fails to recognize a need.• Prospect lacks information.
Copyright © 2001 by Harcourt, Inc.
1
Anticipating and Negotiating Concerns and Resistance
Types of Objectives• Forestalling
• Price is Too High
• Product Objection
• Company Objection
• No Need
Copyright © 2001 by Harcourt, Inc.
1
Anticipating and Negotiating Concerns and Resistance
Listen
Acknowledge
Assess
Respond
Confirm
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Handle Objections
5:36
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Copyright © 2001 by Harcourt, Inc.
1
Securing Commitment and ClosingGuidelines for Earning Commitment
• “Green Light” statements include:– I like that size.– That will get the job done.– The price is lower than I thought it would be.– I didn’t realize you delivered every day.
• Trial Commitments– An effort to elicit how far along the prospect is in his/her decision making.
• “Red Light” statements include:– I’m not sure that will work.– The price is higher than I thought it would be.– Your delivery schedule does not work for us.– I don’t see the advantage of going with your proposal.
• Closing early and often and having a closing quota for each sales call are not liked by buyers.
Copyright © 2001 by Harcourt, Inc.
1
Securing Commitment and Closing
Techniques to Earn Commitment• Ask for the Order/Direct Commitment• Legitimate Choice/Alternative Choice• Summary Close/Summary
Commitment• T-Account or Balance Sheet
Commitment• Success Story Commitment
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
6:15
Earn Commitment
Copyright © 2001 by Harcourt, Inc.
1
Sales Presentation Checklist(Exhibit 8.10)
1. Prospect InformationA. Key Person InformationB. Other Influences on the
Purchase Decision
2. Needs and/or Opportunity Analysis
A. Statement of prospect’s problem and/or opportunity as related to sales offering
B. Brief description of product or service that will meet the prospect’s problem/opportunity
3. Prospect’s Buying Motives
4. Competitive Situation
5. Sales Presentation Objectives
6. Sales Presentation PlanningA. Specific Features/Benefits
B. Information to Support Claims
C. Reinforcing Verbal Content
D. First Few Minutes
E. The ADAPT Method
F. Questions and Objections
G. Prospect Commitment
H. Follow-up Action
Copyright © 2001 by Harcourt, Inc.
1
Steps in Developing the Relationship
Approach
Determine Needs
Select Presentation
Presentation
Handle Objections
Earn Commitment
Follow-Up
Copyright © 2001 by Harcourt, Inc.
1
Even the Best Planned Calls May Not Result in a Sale
4:09
Copyright © 2001 by Harcourt, Inc.
1
Module 9
Expanding Customer Relationships
Copyright © 2001 by Harcourt, Inc.
1
Relationship(Exhibit 9.1)
Enhancers Detractors
Focus on Long-Term
Deliver more than Promised
Call Regularly
Add Value
Keep Communications Lines Open
Take Responsibility for Problems
Focus on Short-Term
Over Promise-Underdeliver
Call Sporadically
Show Up for Another Order
Can Never Reach Salesperson
Lie, Exaggerate, Blame Someone Else
Copyright © 2001 by Harcourt, Inc.
1
Harness Technology to Enhance Follow-up and Buyer-Seller
Relationships
3. Know
2. Connect
4. Relate
1. Interest
The FourSequential
Components of Effective Follow-up
Copyright © 2001 by Harcourt, Inc.
1
Relationship EnhancementTaking Action to Assure Customer Satisfaction
(Exhibit 9.2)
• Preferably before they happen• Ask customer how s/he wants complaint resolved
Resolve Complaints
• Set up a regular call schedule• Let customer know you’ll be back
Continue to Call on the Customers Regularly
• Go Over All Orders• Correct problem before customer recognizes it
Correct Billing Errors
• Train even when contract does not call for it
Train Customer Personnel
• Track Orders Status• Informs on Delays• Help with Installation
Expedite Orders/Monitoring Installation
• Relevant• Timely• High Quality
Provide Useful Information
Salesperson ResponsibilityPartnership Enhancement Activities
Copyright © 2001 by Harcourt, Inc.
1
A Procedure to Handle Complaints
• Build the relationship to the point you customers are comfortable complaining
• Listen carefully and get the whole story• Ask the customer what s/he would like you
to do• Gain agreement on a solution• Take action; educate the customer• Follow through on all promises—add value
Copyright © 2001 by Harcourt, Inc.
1
Providing Quality Customer Service
“Service is advertised…
Service is talked about…
But the only time service really counts…
Is when it is delivereddelivered…
And WeWe promise your experience with us will be outstanding.”
A sign in a small-town business reads,
Copyright © 2001 by Harcourt, Inc.
1
Customer Expectations• Warmth and Friendliness• Reliability• Helpfulness/Assistance• Speed or Promptness• Assurance• Follow-through• Empathy• Resolution of Complaints,
Mistakes, or Defects• Tangibles
Copyright © 2001 by Harcourt, Inc.
1
Checklist for Developing a Service Strategy
• What is our business?• Who are our customers?• What do our customers want and what is important to them?• How are our customers’ needs and perceptions changing?• How are social, economic, and political factors affecting current and
future customer needs and our ability to respond to them? How are competitors responding to these factors?
• How do the customers rate us in terms of their expectations?• What are we best known for?• What do we do best?• What can we do better?• How can we position ourselves in the market to differentiate our
services?
Copyright © 2001 by Harcourt, Inc.
1
Customer Service Dimensions
• Communication, communication, communication…
• Resilience…the salesperson’s ability to keep going, even when times are tough
• Salesperson’s motivation to service his/her customers