USM MKT 330: Final Exam Kelli King

Personal Selling

Human-driven interaction between and within individuals or organizations

Go-to-market strategies

Approaches used by salespeople to sell their products

Go-to-market strategies include selling through:

The Internet, Field sales representatives, Business partners, Resellers, Manufacturers, Franchises,Telemarketers

Personal UnPaid Communication Methods:

Word of Mouth

Personal Paid Communication Methods:

Personal selling and e-mails

Impersonal Unpaid Communication Methods:

Publicity

Impersonal Paid Communication Methods:

Advertising/sales promotion

Missionary salespeople

Work for a manufacturer and promote the

manufacturer's products to other firms

Field salespeople

Communicate with the customer face-to-face at the customer's location

Inside salespeople

Communicate with customers by telephone or computer at their employer's location

Emotional Intelligence

Ability to effectively understand and regulate one's own emotions and to read and respond to the emotions of others

Encoding

Translation of thoughts and ideas into words

Decoding

Interpreting the meaning of a received message

Feedback

Information given to a salesperson indicating how he or she is performing

Communication Breakdown is caused by:

Encoding and decoding problems

80 to 20 listening rule

Salespeople should:

Listen 80 percent of the time

Talk no more than 20 percent of the time

Speaking-listening differential

Difference between the 120-to-160-words-per-minute rate of speech versus the 800-words-per-minute rate

of listening

Adaptive Selling

Changing sales behavior according to a selling situation.

- Illustrated by customized presentation.

- Emphasizes the importance of satisfying customer needs.

Standard Memorized Presentation

- Also known as Canned Presentation

- Completely memorized sales talk

- Ensures that a salesperson provides complete and accurate information about the firm's product and policies

- Limited effectiveness (no opportunity for the salesperson to tailor the presentation to the needs of a specific customer)

Outlined Presentation

Prearranged presentation that includes a:

- Standard introduction.

- Standard answers to common objections raised by customers.

- Standard method for getting the customer to place an order.

Effective because it is well organized

Customized Presentation

Based on a detailed analysis of the customer's needs.

Uses the communication principles to:

- Discover the customer's needs and problems.

- Propose the most effective solution for satisfying customer needs.

- Lets the salesperson demonstrate empathy.

Assertiveness

Degree to which people have opinions about issues and publicly make their positions clear to others.

- Assertive people speak out, make strong statements, and have a take-charge attitude

Responsiveness

Based on how emotional people tend to get in social situations.

- Responsive people readily express joy, anger, and sorrow

Drivers

- Have a great desire to get ahead in their companies and careers.

- Swift and efficient decision makers.

- Base their decisions on facts.

- Take risks.

- Look at several alternatives before making a decision.

- To influence drivers, salespeople need to use a direct, businesslike, organized presentation with quick action and follow-up.

- Example: Donald Trump

Expressives

- View power and politics as important factors in their quest for personal rewards and recognition.

- Focus on the future by directing their time and effort toward achieving their vision.

-Base their decisions on their personal opinions and the opinions of others.

- Act quickly, take risks, tend to be impatient, and change their minds easily.

- Salespeople need to demonstrate how their products will help an expressive customer achieve personal status and recognition.

- Example: Obama

Amiables

- Give importance to close relationships and cooperation.

- Make decisions slowly, building a consensus among people involved in the decision.

- Avoid risks.

- Change their opinions reluctantly.

- Salespeople selling to amiables should stress the product's benefits in terms of its effects on the satisfaction of employees.

- Example: Paul McCartney

Analyticals

- Like facts, principles, and logic

- Suspicious of power and personal relationships

- Make decisions slowly in a deliberate and disciplined manner

- Strongly motivated to make the right decision

- Salespeople need to use solid, tangible evidence when making presentations to analyticals.

- Example: Bill Gates

When do buyers raise objections?

- When setting up an initial appointment

- During the presentation

- When attempting to obtain commitment

- After the sale

Pioneer Selling

selling a new and different product, service, or idea

How to deal with the price objection

- Anticipate objections and prepare helpful responses

- Forestall known concerns

- Relax and listen, and do not interrupt

- Evaluate if the objection is just an excuse

- Always tell the truth

Forestall

Prevent by doing something ahead of time

Excuses

Concerns expressed by the buyer that mask the buyer's true objections

Closing

Asking for the buyer's business

Should be natural, logical progression of any sales call

Emphasis on getting the sale no matter what:

damages trust

insults the buyers intelligent

raises the possibility of losing commitment

When to obtain commitment

after you have created value for the client

Importance of Obtaining Commitment

Tells the salesperson what to do next

Defines status of the client

fail to obtain results longer to obtain sale

How to obtain commitment

Maintain a positive attitude

Let the customer set the pace

Be assertive, not aggressive

Sell the right item in the right amounts

aggressive

salespeople control the sales interaction but fail to gain commitment

assertive

salespeople are self confident and positive

Effective methods of gaining commitment

Direct request

Benefit summary

balance sheet

probing

buyers remorse

Feeling regret or concern after making a large purchase

follow up

What a salesperson does after achieving commitment

buying signals

indications that the buyer is ready to buy

Buyer questions

Signal readiness to buy if the question concerns implementing the purchase and points toward when purchase is implemented

requirements

Conditions to be satisfied before a purchase can take place

benefit statements

Reflect strong feelings in support of the purchase

trial closes

questions regarding the prospect's readiness to buy

nonverbal cues

important indicators of the customer's state of mind and are evident through facial expressions and actions

FOB destination

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

FOB installed

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

nature of negotiation

bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements

Areas of conflict

Minor issues - Who should attend future meetings

Major issues - Cost per unit or exclusive purchase agreements

Win-lose negotiating

the negotiator attempts to win all the important concessions and thus triumph over the opponent

(resembles almost every competitive sport)

win-win negotiation

negotiator attempts to secure an agreement that satisfies both parties

regular sales calls are ............

constrained not open to negotiating

how negotiations differ from regular sales calls

more intensive planning

large number of people from the selling firm

Items negotiated between buyers and sellers

-Inventory levels the buyer must maintain

-Inventory levels the seller must keep on hand to be able to restock the buyer quickly

-Details about the design of the product or service

-Web page development

-How the product will be manufactured

-Display allowances for resellers

-Advertising allowances and the amount of advertising the seller does

-Sales promotion within the channel of distribution

-Delivery terms and conditions

-Retail and wholesale pricing points for resellers

Planning for the negotiation session

-Prepare emotionally for the stress that will occur

Location:

-Free from distraction for both teams

-Neutral site

- Owned by neither party

Online negotiations affect the behaviors of the negotiators

Time allotment depends on:

-Negotiation objectives

-Extent to which both sides desire a win-win session

Comparing Buyer and Seller Price Positions

Sm- sellers minimum price

Bo- buyers opening price

Bt- buyers target price

St- sellers target price

So-sellers opening price

Bm- buyers maximum price

Team Selection and Management

- Seller's team size should be equal to the buyer's team size

- Sessions should have defined roles

- Team leader should manage the actual negotiation session

- Establish rules and signals to communicate with one another

- Practice to understand respective roles

conflict handling behavior modes (COMPETING MODE)

assertive and uncooperative

-pursuing own goals objectives at the expense of the other party

conflict handling behavior modes (ACCOMMODATING MODE)

Unassertive and highly cooperative

-focus of needs and desires of other party

conflict handling behavior modes (AVOIDING MODE)

Refers to individuals who do not attempt to fulfill their own needs or the needs of others

•Do not strive for a win-win agreement or any agreement

conflict handling behavior modes (COMPROMISING MODE)

Applies to people in the middle, in terms of cooperativeness and assertiveness

•Attempts to arrive at a win-win solution

conflict handling behavior modes (Collaborating mode)

Individuals who are both assertive and cooperative

•Seek to maximize the satisfaction of both parties

•Seek to reach a truly win-win solution

•Have the motivation, skill, and determination to:

•Really dig into an issue or a problem

•Explore all possible solutions

The negotiation meeting (AMBUSH NEGOTIATING OR SNEAK ATTACK)

Buyers engaging in a win-lose tactic of negotiating when the other party does not expect it

Occur :

•Prior to the negotiation meeting

•During installation of the new product

The negotiation meeting (PRELIMINARIES)

•Conversation to break the ice

•Ensure a comfortable environment

•Establish a win-win environment

•Prepare an agenda

agenda

Listing of what will be discussed and in what sequence

The negotiation meeting (GENERAL GUIDELINES)

•Listen carefully

•Keep track of issues discussed or resolved

•Consider cultural differences

Dealing with Win-Lose Negotiators (GOOD GUY-BAD GUY ROUTINE)

Works on the hurt and rescue principle

•Bad guy - Negotiator makes all sorts of outlandish statements and requests

•Good guy - Offers a win-win solution by presenting a lower demand

•Used in buyer-seller negotiations in industrial situations

•Best response is to say no

•Underscores the importance of getting signatures on contracts and agreements as soon as possible

Dealing with Win-Lose Negotiators (NIBBLING)

Small extra, or add-on, the buyer requests after the deal has been closed

Dealing with Win-Lose Negotiators (EMOTIONAL OUTBURSTS TACTIC)

Used by buyers to make seller feel uncomfortable ,so as give in to their demands

Dealing with Win-Lose Negotiators (BUDGET LIMITATION TACTIC OR BUDGET BOGEY)

Claims of budget ceilings

•A ploy to try to get a lower price

•Best defense is to do homework before going into the negotiation session

Dealing with Win-Lose Negotiators (BROWBEATING)

Attempt to alter the selling team's enthusiasm and self-respect

Dealing with Win-Lose Negotiators (NEGOTIATION JUJITSU)

Salesperson steps away from the opponent's attack

•Directs the opponent back to the issues being discussed

•Goal - To calm the buyer while helping the seller maintain control of her own emotions

concession

One of the involved part agrees to change a position in some fashion

Guidelines to make concessions effective

Never make concessions unless

•All of the buyer's demands and opening position are known

•One is given in return and do not feel guilty about receiving a concession

concessions should:

•Concessions should gradually decrease in size

•Do not be afraid to say no

•All concessions offered are tentative until the final agreement is reached and signed

•Be confident and secure position and do not give concessions carelessly

•Do not accept the buyer's first attempt at a concession

•Help the buyer to see the value of any concessions agreed to negotiate without preconceived notions

•When a mistake is made, tell the buyer and begin negotiating that issue again

•Check out the offer to see how it compares to the target position before agreeing to it

•Remain noncommittal when customer asks for a bottom line price

•Know when to stop and use silence effectively

•Plan the session well

The self management process

1. Set sales goals

2. Design sales strategy and allocate resources

3. Implement time and territory strategy

4. Evaluate performance

types of sales goals (PERFORMANCE GOALS)

• Related to outcomes.

• Should be set first.

• Example: Personal development goals.

types of sales goals (ACTIVITY GOALS)

• Behavioral objectives.

• Reflect the efforts of the salesperson.

• Intermediate goals.

• Should be set after performance and conversion goals are set.

• Determined by the desired level of performance at a certain rate of conversion.

types of sales goals (CONVERSION GOALS)

Measures of a salesperson's efficiency.

• Benchmarking: Comparing one's performance with the best in the organization.

• Helps one see where he or she is falling short.

Goals should be

SMART: specific, measurable, attainable, relevant, time-bound

ABC analysis

Ranks accounts by sales potential.

• Accounts with the greatest sales potential are prioritized.

• Effective for industries requiring regular contact with the same accounts.

A accounts

20 percent of the salesperson's accounts that could buy the most.

B accounts

80 percent of the salesperson's accounts.

C accounts

Noncustomers or accounts with low potential for sales.

sales call allocation grid

classifies accounts on the basis of the company's competitive position with an account, along with the account's sales potential

• Helps determine which accounts should receive more resources.

• Classification is determined by the salesperson's evaluation of the account on the dimensions of account opportunity and strength of position.

• Effective tool for analyzing current customers.

CRM software

Automates and integrates the functions of sales, marketing, and service in an organization

time management strategy

Starting early

Managing responsiveness

Scheduling in advance

Using downtime wisely

Routing

Planning sales calls in a specific order to minimize travel time.

• Types of sales call patterns that can be efficient with effective routing.

routine call patterns

Seeing the same customers regularly

variable call patterns

Calling on accounts in an irregular order

types of routing plans

circular routing, leapfrog routing, straight-line routing, cloverleaf routing

Zoning

Dividing the territory into zones based on ease of travel and concentration of customers.

• Each area is the center of a zone.

Works best for:

• Compact territories.

• Situations in which salespeople do not call regularly on the same accounts.

Salespeople can combine zoning with routing using

a circular approach within a zone

Evaluating Performance (postcall analysis)

• After every call, salespeople write down what occurred and what needs to be done.

• Information can be filled into a printed form or entered into a territory management program

• Information can be used when preparing for the next call.

• Should include reflecting on whether initial sales call objectives were reached.

Evaluating Performance (activity analysis)

• Salespeople set activity goals when planning their time in order to evaluate their own performance.

• Helps salespeople manage their efficiency and reduce wasted time.

Evaluating Performance (performance analysis)

Evaluation of performance relative to performance goals that were set earlier.

Evaluating Performance (productivity analysis)

• Involves identifying strategies that work for the salesperson.

• Conversion ratio: Number of sales per calls.