ProSales Exam 2

value

value

relationship between costs and benefits

question

(technique for handling objections)

turn customer concern into question and refocus on strengths

• get customer thinking in a new way

direct denial

(technique for handling objections)

confrontational strategy

• customers may react negatively

• use when customers statement is clearly false

indirect denial

(technique for handling objections)

agree, validate objection and explain why untrue

• less threatening

feel-felt-found

(technique for handling objections)

acknowledge customer’s feelings, extend feelings, counter

• technique has been around for awhile

3rd party endorsements

(technique for handling objections)

use of outside parties to bolster statements

• using referrals, reference other companies

• adds credibility

bounce back

(technique for handling objections)

turns concern into reason for action

• more aggressive

• effective with objections about time or price

• revisit something else in conversation

defer

(technique for handling objections)

address later in agenda

• postpone until later

• suggest customer listen to entire presentation

trial offer

(technique for handling objections)

calms objects by testing products

• define terms

• no commitment to purchase

sales call planning

• strongest tool is preparation

• formalize your presentation

closing

• achievement of sales call goals

• natural progression of dialogue

• adopt buyer’s perspective to work towards solutions

direct close

ask for order

• straight forward

• effective if buyer is driver

assumptive close

assumes next steps

• communicate like they will buy

minor point close

something small that indicates a larger agreement

ex: What color do you prefer?

alternative choice close

choosing between viable choices

• ask multiple choice questions

summary of benefits close

review benefits, ask direct close

• formal method of closing

buy now close

creates urgency

• must be honest

• "standing room” close

common mistakes in closing

1. bad attitude

2. ineffective preapproach

3. talking instead of listening

4. “one size fits all”

negotiation

• occurs anytime two or people need to resolve a difference of opinion

• need to come to agreement

• does not mean conflict

avoiding

(technique for negotiations)

postpone to win

• low-low

• emotionally charged situations

• stronger alternative to consider

compromising

(technique for negotiations)

split the difference

• collaborating is not possible but goals must be achieved

• use facets of different styles

• start with small solutions

accommodating

(technique for negotiations)

lose to win

• relationship > outcome

• good to let other party “win”

• delay bigger negotiation

• short term loss for long term gain

competing

(technique for negotiations)

win-lose

• outcome > relationship

• need to win over expense of relationship

collaborating

(technique for negotiations)

win-win

• high-high

• both parties must achieve goal

• fairness, honest, creative

negotiation matrix

business ethics

principles and standards that guide behavior in world of business

• right-wrong

• externally derived

ethics

principles governing behavior of an individual or group

morals

standards of behavior or beliefs concerning what is acceptable or not

• internally derived

• very personal

• “good” or “bad” component

laws

system of rules that a particular country or community recognizes as regulating actions, enforceable with penalties

• not always right-wrong

utilitarian theory

no act in itself is right or wrong, based on results they yield

duty ethics

• not concerned with consequences of act

• morally obligated to act a certain way

  ex: child labor

virtue ethics

• desirable characteristics and promote in others

• emphasize individual character

• rightness or wrongness of individual actions

market orientation

all actions taken by the firm are meant to maximize success in competitive market

• ultimate focus on customer

• relationship business model

• retention, acquisition, profitability

customer value

customer weighs the cost of relationship with the seller, benefits outweigh the cost

• enhanced by CRM

• 360 degree view of customer

phases of relationship development

1. awareness

2. exploration

3. expansion

4. commitment

5. dissolution

prospecting- MAD

M- money

A- authority

D- desire

initiator

starts buying process

gatekeeper

controls flow of information

users

influence steps, don’t have buying power

influencers

directly or indirectly provide information

• economic

• technical

• coach

buyer

contacts seller to place order

decider

makes final decision

controller

sets budget

two way communication

both parties are senders and receivers

encoding

translation of thoughts into words

decoding

interpreting meaning of message

feedback

information given back to indicate understanding

persuading

sales persons primary objective

• influencing buyer’s decision

manipulation

eliminating or reducing buyer’s choice

key follow up

1. customer satisfaction

2. customer retention and loyalty

3. reexamine value added

4. reset customer expectations