Personal Selling Final

Ch 9-16

Keep attention, improve understanding, help remember, and offer proof

Characteristics of a Strong Presentation

Multiple-sense Appeals

Appealing to more than one sense

Expressive

Likes to see strong, intense colors and lots of photos, cartoons, fancy fonts, and positive images.

Analytical

Likes visuals that are clean and simple, a list of references, and lots of detail

Amiable

Prefers visuals with people in them and a relatively slow-moving presentation

Driver

Wants to see crisp professional visuals with bold lettering to highlight important points.

How many people will attend, which stage of the buying process the people are in, what information the people need, and what type of situation it is

What to consider when strategizing for a presentation

Verbal Tools

Word pictures, stories, and humor

Visual Tools

Graphics, charts, models, samples, gifts, catalogs, brochures, photos, illustrations, ads, maps, testimonials, test results, and displaying visuals using media

Portfolio

Collection of visual aids

Digital collateral management systems or sales asset management systems

Used to archive, catalog, and retrieve digital media and text

Collateral

Collection of documents that are designed to generate sales

secure a proper place, check equipment, get prospect involved, relate product features to buyer’s needs, make it an integral part of the presentation, keep it simple, concise, and clear

For effective demonstrations

two-way

PowerPoint presentations should visuals that encourage ___-___ conversation

Electronic whiteboards

used when working with customers who prefer to brainstorm an issue or problem. A digital version of an easel

Document cameras/visual presenters

Capable of displaying any three-dimensional object without the use of a transparency.

Handouts

Written documents provided to help buyers remember what was said

At the conclusion of the presentation

When should a handout be given?

Request for Proposal

Document issued by a prospective buyer asking for a proposal. Contains customer’s specifications for the desired product, including delivery schedules.

Executive Summary

One or two-page summary that provides the total cost minus the total savings, brief description of the problem to be solved, and brief description of the proposed solution and a budget

use polished writing and focus on actual results

Guidelines for Writing and Presenting Proposals

Simple cost and benefit analysis

Lists the costs to the buyer and the savings the buyer can expect from the investment

Comparative cost and benefit analysis

Compares the present situation’s costs with the value of the proposed solution or the seller’s product with a competitor’s product

Return on Investment (ROI)

Net profits or savings expected from a given investment

Payback Period

Length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings. Calculated by adding up estimated future cash inflows and dividing them into the investment cost. When expressed in years, payback period is equal to investment divided by savings or profits per year

Opportunity Cost

Return on investment earned from a different use of the same investment capital

Profit Margin

Net profit the reseller makes, expressed as a percentage of sales

Inventory turnover

Calculated by dividing annual sales by the average retail price of inventory on hand

Electronic Data Interchange (EDI)

Computer-to-computer transmission of data from a reseller to vendors and back

automatic replenishment (AR)

A form of just-in-time inventory management where the vendor manages the customer’s inventory, and automatically ships and stocks products at the customer’s location based on mutually agreed-upon standards.

collateral

Collection of documents that are designed to generate sales, and include such items as brochures, sales flyers and fact sheets, and short success stories

competitive tenders

Also called formal bidding and formal competitive bidding, a competitive bidding process whereby buyers lay out the requirements with objective criteria, and sellers compete with one another and bid for the business.

customer value proposition (CVP)

The way in which a salesperson’s product or service will meet the prospect’s needs and how that is different from the offerings of competitors, especially the next-best alternative.

digital collateral management system

System that archives, catalogs, and retrieves digital media and text. Used by salespeople to create presentations.

efficient consumer response (ECR) system

Distribution system that drives inventory to the lowest possible levels, increases the frequency of shipping, and automates ordering and inventory control processes without the problems of stockouts and higher costs.

executive briefing center

Presentation room set aside to highlight a company’s products and capabilities.

net present value (NPV)

The investment minus the net value today of future cash inflows (discounted back to their present value today at the firm’s cost of capital).

quantifying the solution

Showing the prospect that the cost of the proposal is offset by added value.

quick-response (QR) system

System of minimizing order quantities to the lowest level possible while increasing the speed of delivery to drive inventory turnover; accomplished by prepackaging certain combinations of products.

request for proposal (RFP)

Statement issued by a potential buyer desiring bids from several potential vendors for a product. RFPs often include specifications for the product, desired payment terms, and other information helpful to the bidder. Also called request for bids or request for quotes.

reverse auction

A method of product procurement whereby an opening price is set by the buyer, and then sellers try to win the bidding competition by offering increasingly lower prices

slide deck

A slide presentation (e.g., PowerPoint, Keynote, Prezi, etc.) that is used to supplement a sales presentation.

testimonial

Statement, usually in the form of a letter, written by a satisfied customer about a product or service.

value analysis

Problem-solving approach for reducing the cost of a product while providing the same level of performance.

compensation method

Method used to respond helpfully to objections by agreeing that the objection is valid, but then proceeding to show any compensating advantages.

direct denial method

Method of answering objections in which the salesperson makes a relatively strong statement indicating the error the prospect has made.

excuses

Concerns expressed by the buyer that are intended to mask the buyer’s true objections.

forestall

To resolve objections before buyers have a chance to raise them.

friendly silent questioning stare (FSQS)

The act of silently waiting to encourage buyers to elaborate or explain more fully what their concern is.

indirect denial method

Method used to respond to objections in which the salesperson denies the objection but attempts to soften the response by first agreeing with the prospect that the objection is an important one.

LAARC method

Method to respond to objections: Listen, Acknowledge, Assess (the validity of the objection), Respond, Confirm (that the objection has been answered).

objection

Concern or question raised by the buyer.

pioneer selling

Selling a new and different product, service, or idea. In these situations the salesperson usually has difficulty establishing a need in the buyer’s mind.

postpone method

Objection response technique in which the salesperson asks permission to answer the question at a later time.

probing method

Method to obtain commitment in which the salesperson initially uses the direct request method and, if unsuccessful, uses a series of probing questions designed to discover the reason for the hesitation.

referral method

Method of helpfully responding to objections in which the salesperson shows how others held similar views before trying the product or service. Also called the feel—felt—found method.

revisit method

Process of responding to objections by turning the objection into a reason for acting now. Also called the boomerang method.

superior benefit method

Type of compensation method of responding to an objection during a sales presentation that uses a high score on one attribute to compensate for a low score on another attribute.

third-party-testimony method

Method of responding to an objection during a sales presentation that uses a testimonial letter from a third party to corroborate a salesperson’s assertions.

turnover (TO)

How quickly a product sells, given a level of effort to sell it.

aggressive

Sales style that controls the sales interaction but often does not gain commitment because it ignores the customer’s needs and fails to probe for information.

assertive

Sales manner that stresses responding to customer needs while being self-confident and positive.

balance sheet method

Attempts to obtain commitment by asking the buyer to think of the pros and cons of the various alternatives; often referred to as the Ben Franklin method.

benefit summary method

Obtaining commitment by simply reminding the prospect of the agreed-on benefits of the proposal.

buyer’s remorse

The insecurity a buyer feels about whether the choice was a wise one; also called postpurchase dissonance.

buying signals

Nonverbal cues given by the buyer that indicate the buyer may be ready to commit; also called closing cues.

cash discount

Price discount given for early payment in cash.

closing

Common term for obtaining commitment, which usually refers only to asking for the buyer’s business.

cumulative discount

Quantity discount for purchases over a period of time; the buyer is allowed to add up all the purchases to determine the total quantity and the total quantity discount.

direct request method

Act of attaining commitment by simply asking for it in a straightforward statement.

follow-up

Activity that a salesperson performs after commitment is achieved.

probing method

Method to obtain commitment in which the salesperson initially uses the direct request method and, if unsuccessful, uses a series of probing questions designed to discover the reason for the hesitation.

requirements

Conditions that must be satisfied before a purchase can take place.

submissive

Selling style of salespeople who are often excellent socializers and like to spend a lot of time talking about nonbusiness activities. These people are usually reluctant to attempt to obtain commitment.

trial close

Questions the salesperson asks to take the pulse of the situation throughout a presentation.

trial order

A small order placed by a buyer in order to test the product or the vendor. Not to be confused with trial close.

Answering sincerely, refraining from arguing or contradicting, and welcoming objections

Salespeople should show proper attitude toward buyers by

Helper, Counselor, and advisor

Salespeople must assume the attitude of:

When setting up an initial appointment, during the presentation, when attempting to obtain commitment, or after the sale

Situations when buyers raise objections

Related to needs, to the product, to the source, to the price, and to time

Common Objections

I do not need it; I’ve never done it that way

Objections Related to Needs

I don’t like it, I don’t understand, I need more information

Objections Related to the Product

I don’t like your company, I don’t like you

Objections Related to the Source

I have no money, the value does not exceed the cost

Objections related to the price

I’m not interested, I need to think about it

Objections related to time

After establishing value, during a sense of urgency or scarcity, when the buyer shows buying signals, in follow-up conversations, or when offering tiered or flexible options

When should you discuss price?

Acknowledge method

Salesperson lets the buyer talk, acknowledges it, and moves on to another topic after a pause

Damage trust, insult the buyer’s intelligence, and raise the possibility of losing commitment

Traditional emphasis on getting the sale no matter what can

Free on board, F O B

Buyer assumes responsibility for both the goods and the costs of shipping them

F O B destination

Buyer takes responsibility for the goods once they reach the buyer’s location, and the seller pays the freight

F O B installed

Title and responsibility do not transfer until the equipment is installed and operating properly

Competitor’s offerings, value delivered by the product or service, and cost of providing the product or service

Set the price for the buyer after studying what?

control the sales interaction but fail to gain commitment

Aggressive salespeople typically

self-confident and positive

Assertive salespeople are typically

Continuous Close

the salesperson continuously seeks small commitments from the customer throughout the sales conversation. The idea is to keep the customer engaged and in an agreement mindset. It’s a gentle, non-confrontational approach that aims to build a positive rapport and maintain a cooperative conversation.

Assumptive Close

a more direct closing technique. Involves assuming that the customer has already made the decision to buy, and the salesperson presents the next steps or choices in a way that assumes the sale is inevitable. This technique is based on the assumption that the customer is already in the buying mindset and is designed to nudge them towards a decision without explicitly asking for it.

Maintaining proper perspective, recommending other sources, and using good manners

Suggestions for Dealing with Rejection

accommodating mode

Resolving conflict by being unassertive and highly cooperative. When using this approach, people often neglect their own needs and desires to satisfy the concerns of the other party.

adaptive planning

The development of alternative paths to the same goal in a negotiation session.

agenda

List of what will be discussed, and in what sequence, in a negotiation session.