MKT 315 Exam 2

Position

your current status and degree of influence in the customer relationship

Position Progression Model

Negative, Uncertain, Outlying, Shared, Preferred

Negative Position

Fallen out of Favor

Uncertain Position

The buyer does not know you yet

Outlying Positon

There is already a major competitor in the market and you have been given a chance to come into the category

Shared Position

Still vulnerable to losing the relationship but still get business

Preferred Position

You own the account and get 100% of the business

Positional Selling

Applying the strategies, tactics, and techniques necessary to establish and maintain preferred position in customer relationships; modeling the attributes and behaviors that create a standard of excellence by which all other competitive efforts are judged

Dependency Relationship

One party has all the power

Interdependency relationship

Both parties are balanced and mutually satisfied

Opportunity Gap

Difference between where I am today and where I want to be

Selective Perception

the act of hearing what we want to hear, not necessarily what the other person is saying

Objective perception

seeing things as they are, rather than from a certain point of view

LAARC

Listen, Acknowledge, Assess, Respond, Confirm

Impact of listening:

The customer feels “cared for”

Impact of Acknowledge:

Customer feels attended to and sees that you are paying attention and understanding

Impact of Assess:

Generates new information and understanding

Impact of Respond:

Development of a solution, a plan, overcoming the objections noted earlier

Impact of Confirm:

Solution, agreement on a plan, closing the deal

Buyer’s perspective

helps gain buyer’s respect anf confidence

Seller’s Perspective

Helps meet call objectives efficiently

EDLP

Everyday low price

Hi-low

high premium prices with discounts for rewards members etc

New task

customer is purchasing for the first time

Straight rebuy

customer bous the same product from the same source it was when the needs arose before

Modified rebuy

Customer has purchased product in the past but is not interested in new information

Gatekeeper

Do not share important information

Influential adversaries

carry great influence but are opposed to us

Analysis paralysis

Occurs if all time is spent overanalyzing and finding information

Criteria for effective objectives

specific, measurable, achievable, time based

Primary call objective

Actual goal a slesperson hopes to achieve

Minimum call objective

Minimum a salesperson hopes to achieve, in the event that the call does not go exactly as planned

Optimistic cal objective

Most optimistic outcome the salesperson thinks could occur

Secondary call objective

other objectives apart from the primary call objective

Customer Value Proposition

A written statement of how purchasing the proposed product can solve customer’s business issue

Focus on receptivity

the person who will listen and give the seller needed valuable information

Focus of dissatisfaction

The person who is most likely to perceive problems

Focus on power

the person who can prevent, approve, and/or influence action

Screens

Subordinates who plan and schedule interviews for executives

Seeding

Sending customers important and useful information

Four stages of a sales call

Preliminaries, Investigating, demonstrating capabilities, obtaining commitment

Preliminaries

Warming-up events that occur before serious selling begins

Impression management

activities a salesperson engages in to affect and manage the buyer’s impression of them

Investigating

Finding more information out by asking questions

Need

Any statement made by a buyer which expresses a want or concern that can be satisfied by the seller

Implied needs

statements by the customer of problems and dissatisfactions

Explicit needs

Specific customer statements of wants and desires

Closed questions

Require a yes, no, or short answer

Open questions

Require a longer answer beyond a simple yes or no

SPIN

Situation questions, problem questions, implication questions, need payoff questions

Major sale

involves a long selling cycle, a large consumer commitment, an ongoing relationship, and large risks for the prospect if a bad decision is made

Situation questions

general data-gathering questions about background and current facts

Problem questions

Explore specific difficulties, problems, or dissatisfactions the prospect has

Implication questions

Help the prospect recognize the true seriousness and ramifications of the problem

Need payoff questions

Focus on solutions to get the customer to tell you the benefits they think you offer

Assumptive close

Assuming the sale has been made

Alternative close

One gives an option, but the options result in a buy

Standring room close

“If you can’t make a decision now I have to offer it to the next person”

Last-chance close

Warning the customer they will miss out on something if they do not buy immediately

Order blank close

one fills in the customer’s answers on an order form

Order

customer mades a commitment to buy

Advances

an event takes place that moves a sale forward towards a decision

Continuation

Sale continues with no specific action agreed upon for moving forward

No sale

the customer refuses a commitment

Impression management

activities a salesperson engages in to affect and manage the buyer’s impression of them

Presentation for expressives

Strong, intense colors and lots of photos, cartoons, fancy fonts, and positive images

Presenting to Analyticals

Clean and simple, a list of references, and lots of details

Presenting to Amiables

With people and relatively slow moving presentation

Presenting to Drivers

Crisp professional visuals with bold lettering to highlight important point

Payback period

Length of time it takes for the investment cash outflow to be returned

Customer Value Proposition

Way in which a given product will meet the prospect’s needs

Cumulative discount

transaction for a long period and offering discounts

Cash discounts

Allowed for each early payment, and are the last discount taken

Quantity discounts

The more units you buy, the smaller cost per unit

Closing cues

Indications that the buyer is ready to buy

Trial closes

Questions regarding the prospect’s readiness to buy

Aggressive

Contril the sales interaction but fails to gain commitment

Submissive

Excel as socializers but rarely try to obtain commitment

Direct request method

Asking the buyer for commitment

Benefit summary method

Reminding the buyer of the agreed on benefits of the proposal

Balance sheet method

Helping prospects who cannot make a decision, even when the reason for their behavior is not apparent

Probing method

Using a series of probing questions to discover the reason for the hesitation

Minor point close

the seller assumes its easier to get the prospect to decide on a trivial point than the whole presentation

Continuous yes close

Throughout the presentation the seller constantly asks questions that most would logically answer yes so that the customer is accustomed to saying yes

Assumptive yes

The seller begins to write the order without asking

Benefit in reserve

“If you decide now I’ll give you another 5% for your trade-in

Emotional close

Play to an emtional appeal

Buyer’s remorse

Feeling of insecurity after important decisions