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B.

Follows up with customers to provide service and ensure satisfaction, leading to customer loyalty 9. Works as a member of a team of specialists to serve customers Opportunities in Personal Selling The demand for business-to-business salespeople is expected to grow sharply over the next several years. Skilled technology salespeople, who are in short supply, may receive sixfigure signing bonuses, and some top performers can earn over $1 million a year. The sales profession offers salaries, commissions, bonuses, sales contest prizes, and relatively objective performance evaluations. In addition, salespeople may receive many perks, including expense accounts, club memberships, company credit cards, automobiles, cell phones, and laptop computers. Beyond tangible rewards, high-performing salespeople also enjoy a high degree of recognition within their companies. Because they interact with and know customers best, successful salespeople are among the employees most likely to be promoted to senior management positions.

8.

C.

Careers for Different Types of Individuals No particular cultural background, ethnic group, demographic trait or personality ensures success in selling. Women and minorities may be especially effective salespeople when calling on female and minority customers.

D.

Everyone Sells Something Robert Louis Stevenson, the well-known novelist, once said: Everybody lives by selling something. What Stevenson recognized is that all of us, whether we earn our living in sales or not, must engage in persuasive two-way communication to convince (sell) others in various situations at different times about various things, such as selling potential employers on hiring you, rather than someone else with similar credentials. Selling is not an art or innate talent but a discipline that almost anyone can learn.

II.

WHAT SALESPEOPLE DO: STAGES OF THE PERSONAL SELLING PROCESS The overlapping stages that form the personal selling process (PSP) include: Prospecting and qualifying Planning the sales call (preapproach) Approaching the prospect Making the sales presentation and demonstration Negotiating sales resistance or buyer objections Confirming and closing the sale Following up and servicing the account

The seven stages of the PSP are best depicted as a continuous cycle or wheel of overlapping stages. Once the wheel of personal selling is set in motion, it continues to rotate from one stage to the next. Thus, its easy to see that stage seven isnt really the end of the cycle but rather a new beginning because the salespersons follow-up and service activities can generate repeat sales or purchases of new products and services as customer needs grow. Figure 4.1. The Personal Selling Process

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A.

Prospecting and Qualifying This is the stage of the selling process that gives the wheel its initial push. Prospectingcontinuously searching for potential new customersis necessary for several reasons: To increase total sales Customers switch to other suppliers Customers move out of your territory Customers go out of business Customers die Customers businesses are taken over by another company Customers have only a one-time need for the product Relationships with some customers deteriorate, and they stop buying from you Your buying contacts are promoted, demoted, transferred, or fired, or they retire or resign

Prospecting requires salespeople to first obtain leads. A lead is anything that points to a potential buyer. Salespeople must qualify a lead in terms of four basic criteria that can be remembered by the acronym N A M E, as follows: 1. NNeed or want AAuthority to buy MMoney or ability to buy EEligibility to buy Random-Lead Searching Sometimes called blind searching, generates leads by randomly calling on businesses. Examples of random-lead searching include: 2. Door-to-door canvassing and cold calls Territory blitz of organizations Advertising Electronic mail and websites

Selective-Lead Searching: Direct Sources This refers to systematic strategies to generate leads from predetermined target markets. Examples of direct sources of selective-lead searching include: Friends, neighbors, and acquaintances Personal observation Spotters

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3.

Satisfied customers and former customers Endless chain Networking Centers of influence Internet (e-mails) Junior salespeople and sales associates Professional sales organizations Company records Mailing lists and directories Newsletters Surveys

Selective-Lead Searching: Indirect Sources General announcements or calls to potential markets, hoping that prospects will come forward and identify themselves. Examples of indirect sources of selective-lead searching include: Postal or electronic sales letters Trade shows, fairs, and exhibits Professional seminars, workshops, and conferences Contests Free gifts Unsolicited inquiries Telemarketing for prospects

Table 4.2. Looking for Business and Organization Leads B. Planning the Sales Call: Preapproach To ensure sales success, plan for the sales call by using the following seven steps: Table 4.3. Seven Steps in Preapproach Planning 1. Prepare the prospect for the initial sales call. Prepare the prospect for the sales call by using seeding, which refers to prospectfocused activities carried out several weeks or months before a sales call. The salesperson mails pertinent news articles to the potential buyer over several weeks, thereby establishing a kind of pen pal relationship before calling to ask for an appointment. Sell the sales call Sell the sales call appointment by prenotification using: E-mail Fax

2.

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3.

Mail Telephone

Gather and analyze all relevant information about the prospect Gather detailed information about the prospect and the buying situation from sources may include: Trade associations Chambers of commerce Credit bureaus Mailing list companies Government and public libraries Investment firms Thomas Register of American Manufacturers Yellow Pages Fortune Magazine Forbes Magazine Inc. Magazine U.S. Census Bureau www.thomasnet.com www.yellowpages.com www.fortune.com www.forbes.com www.inc.com www.census.gov

Use the Internet to access information websites such as:

Table 4.4. Selective Electronic Sources of Information 4. 5. Identify the prospects problems and needs Identify the product features, advantages, and benefits Identify the features, advantages, and observable benefits likely to be of most interest to the prospect, with major focus on the benefits.

C.

6. Select the best sales presentation and demonstration strategy for the prospect 7. Plan and rehearse your approach to the prospect Approaching the Prospect The old saying that you never get a second chance to make a first impression indicates how important that first face-to-face contact with the prospect can be. Four strategies for approaching prospects include: 1. Non-product-related approaches: Self-introduction 2. Mutual acquaintance or reference Free gift or sample Dramatic act

Peaking interest approaches: Customer-benefit Curiosity

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3.

Consumer-directed approaches: Compliment or praise Survey Question

4.

Product-related approaches: Product or ingredient Product demonstration Table 4.5. Strategies for Approaching Prospects

When establishing objectives for a sales call, some salespeople set: Primary objectives (targeted outcome) Minimum objectives (lowest acceptable outcome), and Optimal objectives (best possible outcome) SSpecific: Establish a specific, major objective for the sales call. MMeasurable: Ensure that your major objective is measurable or quantifiablefor example, a certain number of units or dollar sales volume. AAchievable: Make sure the goals you set are realistic and achievable. RRelational: Always try to further a positive long-term relationship with the prospect whether you achieve your major objective on this sales call or not. TTemporal: If you can, establish with the prospect a specific timeframe for achieving the major objective.

Salespeople can use S M A R T steps to set their objectives:

Ultimately, most sales calls should achieve one or more of three overall objectives: Generate sales: Sell particular products to target customers on designated sales calls. b) Develop the market: Lay the groundwork for generating new business by educating customers and gaining visibility with prospective buyers. c) Protect the market: Learn competitors strategies and tactics and protect relationships with current customers. Making the Sales Presentation and Demonstration Persuasive communication is at the heart of the selling process, and the sales presentation/demonstration is the critical center stage or showtime for salespeople. Remember the following issues during the presentation: Ask the customer qualifying questions to uncover specific needs Present the products and services that will best satisfy those needs Stimulate desire for the offerings with a skillful demonstration Highlight their features, advantages, and benefits a) b) FFeatures are the obvious characteristics of the product. AAdvantages are the performance traits of the product that show how it can be used to help the customer better solve a problem than present products can. a)

D.

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c) BBenefits are what the customer wants from the product. In preparing sales presentations to achieve specific objectives, you can use several alternative sales presentation strategies, including: a) b) Stimulus-response Salesperson asks a series of positive leading questions. Formula Salesperson leads the prospect through the mental states of buying (attention, interest, desire, and action). Need satisfaction Salesperson tries to find dominant buying needs. Consultative problem solving The most frequently recommended and most successful sales presentation strategy for todays professional salespeople, it focuses on the prospects problems, not the sellers products. It emphasizes the partnership of buyer and seller and stresses win-win outcomes in negotiations. Depth selling Experienced salesperson employs a combination of several sales presentation methods. Team selling Salesperson makes the sales presentation to a group of decision makers from different functional areas.

c) d)

e)

f)

Several sales presentation strategies are identified above, but most professional B2B salespeople find the consultative problem-solving strategy to be most effective, along with tactics that anticipate likely interactions between buyer and seller. Table 4.6. Sales Presentation Strategies 1. Adaptive versus canned sales presentations a) Adaptive selling It stresses the adaptation of each sales presentation and demonstration to fit each individual prospect. b) Canned (or programmed) selling Although adaptive selling is generally best, canned or program selling refers to any highly structured or patterned selling approach. Both adaptive and canned sales presentations can be effective when matched with the appropriate prospect in a designated sales situation.

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E.

Negotiating Sales Resistance or Buyer Objections Objections are statements, questions, or actions by the prospect that indicate resistance or an unwillingness to sign a purchase agreement. Without sales resistance, there would not be any need for salespeople. Sales resistance can be categorized into either valid or invalid objections. Salespeople need to recognize each type in negotiating with prospects or customers. 1. Valid objections Valid objections are sincere concerns that the prospect needs answered before he or she is willing to make the commitment to buy. Types of valid objection include: a) Product objections Product objections usually concern the features, advantages, and benefits associated with a product or service. When prospects use this form of resistance to purchasing, salespeople should provide additional information to reassure them. Price objections Price objections are the most frequently raised form of initial resistance. To counter price resistance, salespeople must show that their product or service offers the prospect higher value per dollar spent than competitive offerings. Promotion objections Promotion objections are commonly used as a resistance tactic when the seller is known not to promote products aggressively. To overcome this resistance, salespeople may have to offer buyers promotional allowances or cooperative advertising arrangements, special rebates, or purchase incentives. Distribution objections Distribution objections typically involve the physical movement of products through the channels of distribution. These forms of buyer resistance include concerns about long delivery time, high delivery costs, and large-quantity stocking requirements. Capital objections Capital objections generally revolve around budgetary issues that prospects give as an excuse for not purchasing products now. This resistance tends to increase with the price of the product or service. Source objections Source objections may result from negative publicity about unethical, illegal, or inefficient business practices by the seller. Conversely, the seller company may not be well enough known for the prospect to feel comfortable purchasing from it. Source objections also can result from the prospects loyalty to a competing firm. Needs objections Needs objections are raised by prospects who feel they simply do not currently need or have use for the products or services being offered. Handling no need objections requires innovative approaches by salespeople to educate prospects on the potential benefits to be derived from purchasing their products.

b)

c)

d)

e)

f)

g)

2.

Invalid objections Invalid objections are merely defense mechanisms used by prospects to stall, slow down, or prevent the sales process from proceeding. Invalid objections are typically

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irrelevant, untruthful, delaying, or latent reasons for the prospects unwillingness to negotiate. They are difficult to identify and overcome because the prospect does not deal with the salesperson in a straightforward, honest manner. Types of invalid objection include: a) Latent objections Latent objections are hidden and sometimes too personal or embarrassing for the prospect to reveal, so they remain unspoken. Stalling objections Stalling objections are usually delaying tactics articulated by such comments as Around here, all decisions are shared, so just leave your product literature for us to look over, and well get back to you if were interested. It is usually a waste of time to attempt to overcome repeated prospect objections that appear invalid. Time objections Time objections are delaying tactics that usually surface in prospect statements such as Ive got to prepare for a meeting in ten minutes, so I dont have time to talk now, or Im just too busy for the next several weeks with a special project to meet with you. Unethical objections Unethical objections include actions or attitudes that seem unprincipled or immoral. Examples of unethical resistance to buying include excuses about not doing business with a particular ethnic group or religious persuasion, use of sexual overtures, and soliciting bribes or kickbacks.

b)

c)

d)

Table 4.8. Types of Valid and Invalid Objections 3. Specific techniques for negotiating buyer objections Various methods have been developed and tested to handle prospect objections, which are classified under five categories: put-off, switch focus, offset, denial, and provide proof. Suggestions for handling each objection are also offered below. a) Put-off strategies (1) Im coming to that put off things like price until the end so you dont turn off the prospect early. (2) Pass-offkeep a pleasant expression but say nothing. Switch focus strategies (1) Alternative productswitch focus to another model. (2) Feel, felt, foundtrace own experience with product. (3) Comparison or contrastcompare product with another. (4) Answer with a questionWhy do you think? (5) Humoruse lighthearted humor to ease tension and redirect the focus. (6) Agree and neutralizegive some level of agreement, then explain benefit. Offset strategies (1) Compensation or counterbalancecounter an objection that cannot be denied by citing an even more important buying benefit. (2) Boomerangturn the objection into a reason for buying. Denial strategies (1) Indirect denialagree with prospects objection but follow with a disclaimer. (2) Direct denialtackle the false rumor head-on.

b)

c)

d)

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F.

Provide proof strategies (1) Case historytell experience of a satisfied customer. (2) Demonstrationdramatize major advantages and benefits. (3) Propose trial useoffer free trial use. Confirming and Closing the Sale The close is that stage in the selling process where the salesperson tries to obtain agreement from the prospect to purchase the product. There are five categories of closes: 1. Clarification closes Psychologically oriented closes Straightforward closes Concession closes Lost sale closes Clarification closes a) Assumptive close Assume that the purchase decision has already been made so that the prospect feels compelled to buy. b) c) Choice close Offer the prospect alternative products from which to choose. Success story close Tell a story about a customer with a similar problem who solved it by buying the product. Contingent close Get the prospect to agree to buy if the salesperson can demonstrate the benefits promised. Counterbalance close Offset an objection that cannot be denied by balancing it with an important buying benefit. Boomerang close Turn an objection around so that it becomes a reason for buying. Future order close If a prospect does not have a current need, but may have one in the future, the salesperson can ask for a commitment from the prospect to purchase at a future time. If-when close Asking the prospect to provide a clarification as to when an order will be placed, as opposed to if an order will be placed. Probability close Although seemingly comparable to the if-when close described above, the probability closing technique asks the prospect to assign a quantified likelihood of signing a sales contract in the near future.

e)

d)

e)

f) g)

h)

i)

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j)

Suggestion close Gets the prospect to accept the advice offered without giving it a great deal of thought. A salesperson can suggest that customers who have purchased the product have reported high levels of satisfaction, thereby suggesting or implying that the prospect should purchase it, too.

2.

Psychologically oriented closes a) Stimulus-response close Use a sequence of leading questions to make it easier for the prospect to say yes when finally asked for the order. b) Minor points close Obtain favorable decisions on several minor points leading to eventual purchase decision. Standing-room-only (SRO) close Suggest that the opportunity to buy is brief because demand is great and the product is in short supply. Impending event close Warn the prospect about some upcoming event that makes it more advantageous to buy now. Advantage close This variation of the impending event close emphasizes the specific advantages of making a timely decision, while still stressing a sense of immediacy. Puppy dog close Let the prospect take the product home for a while and, as with a puppy, an emotional attachment may develop, leading to purchase. Compliment close Commend prospects for raising interesting and intelligent questions to subtly flatter their egos so that they agree to sign the sales order. Reserve advantage close In this slight variation of the advantage close described above, salespeople identify a number of merits for purchasing a product, but save a few to use if the prospect exhibits resistance yet again. Dependency close Used to break the choke-hold that a competing firm has over a prospects business by suggesting that the prospect have an alternative supplier to reduce the risk of being dependent on one supplier.

c)

d)

e)

f)

g)

h)

i)

3.

Straightforward closes a) Ask for the order close Ask for the order directly or indirectly. b) Order form close While asking the prospect a series of questions, start filling out basic information on the contract or order blank. Or hand the order form and a pen to the prospect. Summary close Summarize the advantages and disadvantages of buying the product before asking for the order.

c)

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d)

Repeated-yes close This variation of the summary close requires a salesperson to pose several leading questions to which the prospect has little choice but to respond in an affirmative manner. Benefits close Also a variation of the summary close, it requires the salesperson to identify and present a synopsis of the various salient benefits that the sales solution offers. Action close The salesperson simply hands the prospect a pen along with the contract, and frequently the prospect, almost by reflex, will sign. Negotiation close Both the buyer and the salesperson negotiate a compromise, thus ensuring a winwin agreement. Technology close The salesperson more effectively summarizes key value-added benefits for the prospect by using technologies such as PowerPoint, Excel, or other multimedia tools.

e)

f)

g)

h)

4.

Concession closes a) Special-deal close Offer a special incentive to encourage the prospect to buy now. b) No-risk close Agree to take the product back and refund the customers money if the product doesnt prove satisfactory. Management close When salespeople do not have the authority to make the prospects requested commitments or concessions, they can elicit the assistance of a senior sales manager who has the authority to make the necessary decisions to close the sale. Takeaway close Used as an emotional fear appeal to cause anxiety that the prospect may lose out on a special deal or incentive. A salesperson could suggest that the special offer to provide an ancillary product or service free of charge is available only for another week, thereby evoking an immediate purchase.

c)

d)

5.

Lost sale closes a) Turnover close Turn the prospect over to another salesperson with a fresh approach or better chance to make the sale. b) Pretend-to-leave close Start to walk away, then remember another benefit or special offer after the prospect has relaxed his or her sales defenses. Ask for help close When the sale seems lost, apologize for not being able to satisfy the prospect and ask what it would have taken to get him or her to buy; then offer that.

c)

Table 4.10. Types of Closes

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Following Up and Servicing the Account After making the sale, top salespeople dont disappear. Instead, they maintain close contact with the customer to handle any complaints and to provide customer service such as installation, repair, or credit approvals. Its far easierand less costlyto keep present customers satisfied than to search out and acquire new customers. Fully satisfied customers are the ones most likely to become loyal repeat buyers who cut costs for companies in various ways. Frequent and comprehensive follow-up is a primary means of retaining long-run, satisfied, loyal, and profitable customersand of keeping the personal selling process wheel revolving. 1. Handling customer complaints Customer complaints are opportunities to improve relationships with customers. Some guidelines in handling customer complaints: Try to anticipate customer complaints and resolve them before the customer expresses them. b) Listen closely and patiently to the customers complaints without interrupting. c) Never belittle a customers complaint. d) Encourage customers to talk and fully express their feelings. e) Never argue with customers or take their complaints personally. f) Record the facts as the customer sees them. g) Let customers know you understand their complaints. h) Try to empathize with the customer and see the problem from his or her viewpoint. i) Dont make excuses for service problems or criticize service personnel. j) Resolve problems quickly and fairly even if that means the sale will become unprofitable. k) Reassure customers that you will resolve their problems promptly and get back to them regularly to report progress. l) Thank customers for voicing their complaint. m) Follow up after the customers complaint has been resolved to make sure that everything is okay. n) Keep a record of all customer complaints and their outcomes. Table 4.12. Basic Rules for Handling Customer Complaints a)

III. APPLYING CRM TO THE PERSONAL SELLING PROCESS A. Empowering Salespeople for CRM Salespersons roles have shifted from merely selling goods and services to building and maintaining long-term, mutually profitable relationships with valued customers. Kotler and Armstrong define CRM as the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. One important way to empower salespeople is to give them more financial flexibility to commit company resources in serving customersapproving reimbursements for unsatisfactory products, negotiating price discounts, providing purchase incentives, and resolving customer complaints. By being able to make on-the-spot decisions, salespeople can enhance their image and competence with customers and thereby feel more psychologically empowered and motivated for CRM.

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CRM Training and Rewards To develop the skills of empowerment and customer relationship building needed for effective CRM, salespeople need appropriate training programs. They must be trained and rewarded for proactively taking initiatives that build customer relationships. Traditional sales quota systems for motivating, evaluating, and rewarding the sales force need updating to include tangible goals and rewards for cultivating and retaining key customers through empowered CRM activities.

KEY TERMS
Wheel of Personal SellingDepiction of the seven stages of the personal selling process (PSP) as a continuous cycle of stages carried out by professionals in the field of sales. ProspectingFirst step in the PSP, wherein salespeople find leads and qualify them on four criteria: need, authority, money, and eligibility to buy. LeadThe name and address or telephone number of a person or organization potentially needing the companys products or services. PreapproachThe approach-planning stage of the PSP. ApproachThe first face-to-face contact with the prospect. SMART ObjectivesA method of setting sales calls objectives that are specific, measurable, achievable, relational, and temporal. Adaptive SellingModifying each sales presentation and demonstration to accommodate each individual prospect. Canned (or programmed) SellingAny highly structured or patterned selling approach. ObjectionAnything that the prospect or customer says or does that impedes the sales negotiations. Valid ObjectionsSincere concerns that the prospect needs to have addressed before he or she will be willing to buy. Invalid ObjectionsIrrelevant, untruthful delaying actions or hidden reasons for not buying. CloseThe stage in the PSP where the salesperson tries to obtain the prospects agreement to purchase the product. Trial CloseAny well-placed attempt to close the sale; can be used early and often throughout the PSP. Follow-UpCustomer service provided not just after the sale is closed, but throughout the PSP.

REVIEW AND APPLICATION EXERCISES

1. Why do you think so many successful CEOs of top companies have come up through sales? [LO 1] Because they interact with and know customers best, successful salespeople are among the employees most likely to be promoted to senior management positions. Many CEOs of Fortune 500 corporations began their careers as sales representatives. As direct revenue generators, salespeople are vital to the success of their companies. Unless its products and services are profitably sold, a company cannot stay in business long, and its employees will lose their jobs.

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Thus, because of their customer orientation and knowledge of the competition, many salespeople have risen through the ranks to become CEOs. 2. What qualities do you think are needed by top-performing salespeople of today and tomorrow? [LO 2] Because salespeople generally have the greatest influence in reducing customer defection, their efforts largely determine the effectiveness of customer relationship management (CRM) strategies for increasing customer loyalty. Because they are heavily involved in CRM, contemporary topperforming salespeople should have the following traits: 3. Are customer oriented Think mainly about serving customers Develop sales calls strategy to achieve specific objectives Listen to and communicate meaningfully with customers Sales presentation focuses on customer benefits Think in terms of helping customers solve problems Goal is to develop long-term, mutually beneficial relationships Follow up with customers to provide service and ensure satisfaction leading to customer loyalty Work as a member of a team of specialists to serve customers

Describe the seven stages in the professional personal selling process (PSP). Why are they depicted as a revolving wheel? [LO 3, 4, 5, 6, 7] a. b. c. d. Prospecting for and Qualifying the Prospectinvolves identifying potential customers and determining their need, authority, ability, and eligibility to buy Planning the Sales Call (the Preapproach)involves the planning necessary to prepare for the sales call Approaching the Prospectinvolves the salespersons initial contact with the prospect Making the Sales Presentation and Demonstrationinvolves identifying the prospects needs; presenting the products features, advantages, and benefits; and demonstrating the product Negotiating Prospect Resistance and Objectionsinvolves understanding and negotiating reasons why prospects resist buying Confirming and Closing the Saleinvolves convincing the customer to make the purchase Follow-up and Servicing Customersinvolves all actions necessary to maintain the account

e. f. g.

These stages are depicted as a wheel because the process does not end. It continues to spin from one interconnecting and overlapping stage to the next. After the follow-up, repeat sales and new customer needs rotate the wheel back to the first stage for another revolution. 4. Salespeople spend more time on prospecting than on any other of the seven PSP stages. Why do you think this is so? [LO 4] A companys current customers may leave for various reasonsdeath, bankruptcy, relocation, or switching to other suppliers. Thus, to increase or even maintain sales volume, salespeople must continually search for potential new customers, called prospects. But prospecting requires

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salespeople to first obtain leads, which is basically the name and address or telephone number of a person or organization potentially needing the companys products or services. Before considering a lead to be a valid prospect, the salesperson must qualify it in terms of need or want, authority to buy, money to buy, and eligibility to buy. One way to remember these four qualifiers is the acronym NAME, each of which is a prospecting stage. Encompassing an extremely timeconsuming process, when companies or individuals pass all four of these screens, they become prospects for a sales call, after which salespeople can plan the next step of the personal selling process. 5. Describe the different sales presentation strategies, including the advantages and disadvantages associated with each one. [LO 5] a. Stimulus-response. Salesperson asks a series of positive leading questions. Advantage or disadvantage: Customer develops habit of answering yes, which may lead to a positive response to the closing question. Can appear manipulative to sophisticated prospects. Formula. Salesperson leads the prospect through the mental states of buying (attention, interest, desire, and action). Advantage or disadvantage: Prospect is led toward purchase action one step at a time, as the prospect participates in the interview. May come across as too mechanical and rehearsed to win prospects trust and confidence. c. Need satisfaction. Salesperson tries to find dominant buying needs. Advantage or disadvantage: Salesperson listens and responds to the prospect while leading the prospect to buy; the salesperson learns dominant buyer needs and motivations. Salesperson must not overlook latent needs of prospect that are not articulated. d. Consultative problem solving. The most frequently recommended and most successful sales presentation strategy for todays professional salespeople, it focuses on the prospects problems, not the sellers products. It emphasizes the partnership of buyer and seller and stresses win-win outcomes in negotiations. Advantage or disadvantage: Through the parties working together to understand and solve problems, the salesperson forges a trusting, consultative relationship with the prospect. Salesperson and buyer negotiations focus on a win-win outcome and a long-run relationship. e. Depth selling. Experienced salesperson employs a combination of several sales presentation methods. Advantage or disadvantage: A customized mix of the best features of all of the strategies that draws on most of their advantages. Depth selling requires exceptional salesperson skill and experience. f. Team selling. Salesperson makes the sales presentation to a group of decision makers from different functional areas. Advantage or disadvantage: Team selling involves counterparts from both the buyer and seller organizations interacting and cooperating to find solutions to problems. Salesperson serves as coordinator of the buyer-seller team interactions. 6. How should salespeople view buyer objections and resistance? [LO 6] An objection is anything that the prospect or customer says or does that impedes negotiations. Even after an effective sales presentation and demonstration, most prospects and customers are likely to ask more questions and resist making the purchase. However, salespeople shouldnt be discouraged by prospect resistance or objections. Buyer objections or resistance can be both a

b.

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challenge and an opportunity because prospect objections are usually positive signs of interest in the sales presentation and indirect requests for more information so that the prospect can justify a purchase decision. Before you make a sales call, its always a good idea to anticipate prospect objections and prepare appropriate responses to win the sale. 7. Identify the five basic techniques for handling buyer objections, and give examples of each one. [LO 6] a. Put-off strategies b. c. d. e. 8. Im coming to thatput off things like price until the end so you dont turn off the prospect early. Pass-offkeep a pleasant expression but say nothing. Alternative productswitch focus to another model. Feel, felt, foundtrace own experience with product. Comparison or contrastcompare product with another. Answer with a questionwhy do you think? Humoruse lighthearted humor to ease tension and redirect the focus. Agree and neutralizegive some level of agreement, then explain benefit. Compensation or counterbalancecounter an objection that cannot be denied by citing an even more important buying benefit. Boomerangturn the objection into a reason for buying. Indirect denialagree with prospects objection but follow with a disclaimer. Direct denialtackle the false rumor head-on. Case historytell experience of a satisfied customer. Demonstrationdramatize major advantages and benefits. Propose trial useoffer free trial use.

Switch focus strategies

Offset strategies

Denial strategies

Provide proof strategies

What is a trial close? Give some examples of trial closes. When should they be used? [LO 5, 7] A trial close is any well-placed attempt to close the sale; it can be used early and often throughout the selling process. Professional salespeople should be prepared to close anytime, anywhere because they know their ABCs (i.e., Always Be Closing), which advocates making trial closes throughout your interaction with the prospect. One of the most straightforward closing approaches, when the salesperson and the prospect seem to be in agreement, is simply to ask, Shall we write up the order? But the close need not be that blatant. Often, the salesperson can accomplish the same result with a more subtle assumptive close question, such as When do you need the product delivered? Another concern for many new salespeople is determining when to try to close the sale. Theres no single best time. The close can happen at any time during the sales processin the first few minutes of the first sales call, or in the last few seconds of the sixth. Trial

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closes are simply attempts to test the prospects readiness to buy. Examples include statements like Do you think this product will meet your needs? or So, what do you think? Closing attempts, though, are especially appropriate in three situations: 9. When a presentation has been completed without any objections being raised by the prospect, try to close. Doing so may elicit objections from the prospect. When the sales presentation has been completed and all questions and objections have been addressed, closing is logical. If the buyer indicates an interest in buying the product by giving a closing signal, the time is appropriate to close. Clarification closes Assumptive close. Assume that the purchase decision has already been made so that the prospect feels compelled to buy. Choice close. Offer the prospect alternative products from which to choose. Success story close. Tell a story about a customer with a similar problem who solved it by buying the product. Counterbalance close. Offset an objection that cannot be denied by balancing it with an important buying benefit. Contingent close. Get the prospect to agree to buy if the salesperson can demonstrate the benefits promised. Boomerang close. Turn an objection around so that it becomes a reason for buying. Future order close. If a prospect does not have a current need, but may have one in the future, the salesperson can ask for a commitment from the prospect to purchase at a future time. If-when close. Asking the prospect to provide a clarification as to when an order will be placed, as opposed to if an order will be placed. Probability close. Although seemingly comparable to the if-when close described above, the probability closing technique asks the prospect to assign a quantified likelihood of signing a sales contract in the near future. Suggestion close. Gets the prospect to accept the advice offered without giving it a great deal of thought. A salesperson could suggest that many customers who have purchased the product have reported high levels of satisfaction, thereby suggesting that the prospect should also purchase it. Stimulus-response close. Use a sequence of leading questions to make it easier for the prospect to say yes when finally asked for the order. Minor points close. Obtain favorable decisions on several minor points leading to eventual purchase decision. Standing-room-only (SRO) close. Suggest that the opportunity to buy is brief because demand is great and the product is in short supply.

Name and explain as many closing strategies as you can. [LO 7] a.

b.

Psychologically oriented closes

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Impending event close. Warn the prospect about some upcoming event that makes it more advantageous to buy now. Advantage close. This variation of the impending event close emphasizes the specific advantages of making a timely decision, while still stressing a sense of immediacy. Puppy dog close. Let the prospect take the product home for a while and, as with a puppy, an emotional attachment may develop, leading to purchase. Compliment close. Commend prospects for raising interesting and intelligent questions to subtly flatter their egos and make them more receptive to making the purchase. Reserve advantage close. In this slight variation of the advantage close described above, salespeople identify a number of merits for purchasing a product, but save a few to use if the prospect exhibits resistance yet again. Dependency close. Used to break the choke-hold that a competing firm has over a prospects business by suggesting that the prospect have an alternative supplier to reduce the risk of being dependent on one supplier. Ask for the order close. Ask for the order directly or indirectly. Order form close. While asking the prospect a series of questions, start filling out basic information on the contract or order blank. Or hand the order form and a pen to the prospect. Summary close. Summarize the advantages and disadvantages of buying the product before asking for the order. Repeated-yes close. This variation of the summary close requires a salesperson to pose several leading questions to which the prospect has little choice but to respond in an affirmative manner. Benefits close. Also a variation of the summary close, it requires the salesperson to identify and present a synopsis of the various salient benefits that the sales solution offers. Action close. The salesperson simply hands the prospect a pen along with the contract, and frequently the prospect, almost by reflex, will sign. Negotiation close. Both the buyer and the salesperson negotiate a compromise, thus ensuring a win-win agreement. Technology close. The salesperson more effectively summarizes key value-added benefits for the prospect by using technologies such as PowerPoint, Excel, or other multimedia tools. Turnover close. Turn the prospect over to another salesperson with a fresh approach or better chance to make the sale. Pretend-to-leave close. Start to walk away, then remember another benefit or special offer after the prospect has relaxed his or her sales defenses. Ask for help close. When the sale seems lost, apologize for not being able to satisfy the prospect and ask what it would have taken to get him or her to buy; then offer that.

c.

Straightforward closes

d.

Lost sale closes

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Chapter 4: THE SELLING PROCESS

Concession closes Special-deal close. Offer a special incentive to encourage the prospect to buy now. No-risk close. Agree to take the product back and refund the customers money if the product doesnt prove satisfactory. Management close. When salespeople do not have the authority to make the prospects requested commitments or concessions, they can elicit the assistance of a senior sales manager who has the authority to make the necessary decisions to close the sale. Takeaway close. Used as an emotional fear appeal to cause anxiety that the prospect may lose out on a special deal or incentive. A salesperson could suggest that the special offer to provide an ancillary product or service free of charge is available only for another week, thereby evoking an immediate purchase.

10. Why should salespeople be empowered in their dealings with prospects and customers? [LO 8] In recent years, their roles have shifted from merely selling goods and services to building and maintaining long-term, mutually profitable relationships with valued customers. As their companies front-line representatives, salespeople are the ultimate customer relationship builders. CRM has been called an inevitableliterally relentlessmovement because it represents the way customers want to be served, and offers a more effective and efficient way of conducting business. Kotler and Armstrong define CRM as the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It is critical for sales managers to empower salespeople by enabling them to promptly address customer needs and negotiate mutually satisfying agreements with them. In practice, empowerment should seek to strengthen the flexibility, self-confidence, authority, and effectiveness of salespeople as they try to fully satisfy customers and achieve CRM objectives. One important way to empower salespeople is to give them more financial flexibility to commit company resources in serving customersapproving reimbursements for unsatisfactory products, negotiating price discounts, providing purchase incentives, and resolving customer complaints. By being able to make on-the-spot decisions, salespeople can enhance their image and competence with customers and thereby feel more psychologically empowered and motivated for CRM.

INTERNET EXERCISE
1. You have been appointed to work as a U.S. sales representative for Airbus Industrie, which has just developed the Airbus 380a state-of-the-art, double-decker aircraft that carries from 550 to 900 passengers. Using the websites provided in Table 4.4, conduct a Web-based search for detailed information about the airline industry. More specifically, to help you plan the sales call and make your approach successful, find the following information: Addresses and locations of the headquarters of major players in the airline industry (passenger airlines and cargo carriers) Sales, market share, profits, and size of each major competitor Regions of the United States, and of the world, where each airline operates Type of aircraft the airline currently uses Names, addresses, e-mail addresses, and telephone numbers of purchasing managers for all of the airlines and cargo carriers

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