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Principles of Professional Selling.

: Personal Selling And The Marketing Concept
Topic Objective:
By the end of the topic students should be able to:
Describe contributions of personal selling to the information economy
Define personal selling discuss as extension of marketing concept
Describe the evolution of consultative selling
Define strategic selling and name four strategic areas of the strategic/consultative selling model
Describe evolution of partnering discuss how it relates to the quality improvement process
Explain how value-added strategies enhance personal selling
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Definition/Overview:
Personal Selling: Personal selling is one of the oldest forms of promotion. It involves the use of
a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull
strategy (where the role of the sales force may be limited to supporting retailers and providing
after-sales service).
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Key Points:
1. Definition of Personal Selling
Person-to-person communication with a prospect

Personal selling is a process of
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Developing relationships
Discovering needs
Matching products with needs
Communicating benefits
Viewed as a process that adds value
2. Personal Selling in the Information Age
An evolution from the industrial economy to the information economy
Began in the 1950s
New emphasis is information exchange rather than producing goods
Implications for personal selling
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3. A Shift in Emphasis
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Industrial economy
Advances occur in transportation and manufacturing
Strategic resources are capital and natural resources
Products and factories define the business
Sales success means meeting sales quotas
Industrial economy
Advances occur in transportation and manufacturing
Strategic resources are capital and natural resources
Products and factories define the business
Sales success means meeting sales quotas
4. Important Role of Personal Selling
Often the major promotional method
Firms invest in personal selling
Personal selling has evolved because:

Products and services are more complex
Competition has greatly increased
Customer demand for quality, value, and service has risen sharply
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Marketing era begins (early 1950s)

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5. Evolution of Personal Selling
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Salespeople as a source of strategic information on product/market/service
Consultative selling era (late 1960s to early 1970s)

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Mass markets break into target markets
Emphasis on need identification
Information sharing and negotiation replace manipulation
Strategic selling era (early 1980s)
Market niches require more planning
Equal emphasis on strategy and tactics
Product positioning vital
Partnering era (1990 to present)

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Customer, not product, as driving force
Emphasis on strategies that create customer value
6. Evolution of Consultative Selling
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Transactional selling
Process that serves the buyer primarily interested in price and convenience
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Consultative selling
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Process that developed from the marketing concept, emphasizing need

identification
Features of consultative selling include:
Customer is a person to be served, not a prospect to be sold
Two-way communication identifies (diagnoses) customers needs; no high-
pressure sales presentation

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Emphasis on information giving, problem solving, and negotiation rather

than manipulation
Emphasis on service after the sale
Evolution of Strategic Selling
A Strategic Market Plan
Outlines necessary methods and resources
Influences the sale of products
Serves as guide for strategic selling plan
7. Strategy and Tactics
Tactics
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Specific techniques, practices, and methods used in customer interaction
Carefully conceived plan needed to accomplish sales objectives
A prerequisite to tactical success
Strategy
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Step 1 Develop a Personal Selling Philosophy
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Adopt the marketing concept
Value personal selling
Assume the role of a problem solver/partner
Step 2 Develop a Relationship Strategy
Adopt a win-win philosophy
Project a professional image
Maintain high ethical standards
Step 3 Develop a Product Strategy

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Become a product expert
Sell benefits, not features
Configure value-added solutions
Step 4 Develop a Customer Strategy
Become a product expert
Sell benefits, not features
Configure value-added solutions
Step 5 Develop a Presentation Strategy

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Prepare objectives
Develop a presentation plan
Provide outstanding service
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8. E-Commerce and the Complex Sale

Electronic business
Complex sales involve several forms of information technology support, including:
Electronic product catalogs
Contact management systems
PowerPoint and Excel
Internet applications
Electronic commerce
9. Evolution of Partnering
Buzzword of 1990s, became business reality in 2000s
Strategically developed, long-term relationship that solves the customers problems
Relationship selling relies on a customized approach to each client
Enhanced with high ethical standards and CRM
10. Strategic Alliances
Formed by companies that have similar business interests and, thus, gain a mutual competitive
advantage
The goal is to achieve a marketplace advantage by teaming up with another firm
Highest form of consultative selling required to build win-win alliances
Can you cite some current examples of strategic alliances?
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11. Value Creation
Value-added selling = creative improvements that enhance customer experience
The information economy rewards salespeople who add value at each step
When customer is not aware of value added by salespeople, the focus may shift to price
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: Personal Selling Opportunities In The Age Of Information
Topic Objective:
Describe how personal selling skills contribute to work performed by knowledge workers
Discuss the rewarding aspects of personal selling careers
Describe the opportunities for women and minorities in the field of personal selling
Discuss the characteristics of selling positions in four major employment settings: service,
retailing, wholesaling, and manufacturing
Identify the four major sources of sales training
Personal selling is oral communication with potential buyers of a product with the intention of
making a sale. The personal selling may focus initially on developing a relationship with the
potential buyer, but will always ultimately end with an attempt to "close the sale".
Key Points:
1. Personal Selling in the Age of Information
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One can add value to information by:

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Collecting it
Organizing it
Clarifying it
Presenting it in a convincing manner
Selling skills are transferable skills
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2. Knowledge Workers Benefit from Personal Selling Skills
Customer service representatives (CSR)
Entrepreneurs
Managerial personnel
Professionals
3. Sales Is Pervasive
500 largest sales forces in America employ 17.5 million salespeople

These companies will seek to recruit 500,000 college graduates
The number of sales positions is increasing in industrialized countries
Hundreds of selling career options to match individual interests, talents, and ambitions
Most occupations involve some form of selling
4. Sales Titles Vary
Account executive
Account representative
Sales account manager
Relationship manager
District representative
Sales consultant
Client development manager
Sales associate
Marketing representative
Territory manager
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5. Rewards of Selling Careers
Above-average income
Above-average psychic income
Opportunity for advancement
Opportunities for women and minorities
6. Women and Minorities
Growing opportunities for both women and minorities

More women are turning to sales as a career
Companies recognize a need for a more diverse sales force
7. Employment Settings in Selling Today
Selling a service
Selling for a retailer
Selling for a wholesaler
Selling for a manufacturer
8. Selling a Service
Financial services
Radio, television, and Internet advertising
Newspaper advertising
Hotel, motel, and convention center services
Real estate
Insurance
Banking
Business services
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9. Special Case: Radio Advertising Sales
More than 10,000 radio stations in the United States
Work with local, regional, and national accounts
Local and national training, certification
In medium markets, compensation can reach $100,000+
10. Retail Selling
Automobiles
Musical instruments
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Photographic equipment
Fashion apparel
Major appliances
Recreational vehicles
Television and radio receivers
Furniture/decorating supplies
Tires and related accessories
Computers
11. Wholesale Selling
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Inside salesperson
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Relies heavily on phone orders
More office-based
Internet often used for support
Inside sales growing in popularity as a cost-saving move
Outside salesperson
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On-the-road
Duties vary
Often must be familiar with many products
Must know details of customers operation
Serves as consultant to the customer
12. Manufacturer Selling
Field salesperson
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Gains new customers
Increases sales for existing customers
Detail salesperson
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Assists clients with marketing, collects data
Not compensated on amount sold
Sales engineer
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Knows technical details
Must identify, analyze, solve customer problems
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Inside salesperson
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Takes orders
Supports field staff
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13. Telemarketing Sales Channel
Telemarketing: a channel in which the sales process is conducted by telephone
Serves two purposes: sales and service
Inside sales, backup for outside sales
Sometimes used to maintain contact with smaller customers
Also used to find and qualify prospects
14. Four Sources of Sales Training
Corporate-sponsored training
Training provided by commercial vendors
Certification programs
College and university courses
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15. Corporate-sponsored Training
Many firms have established programs
Millions are spent in training each year
Salespeople among the most intensively trained employees
Training for consultative selling may be a few months to a year
Some Web-based training used
: Creating Value With A Relationship Strategy
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Topic Objective:
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Explain the importance of developing a relationship strategy
List the four key groups with which the salesperson needs to develop relationship strategies
Discuss how self-image forms the foundation for building long-term selling relationships
Describe the importance of a win-win relationship
Explain the importance of developing a relationship strategy
List the four key groups with which the salesperson needs to develop relationship strategies
Discuss how self-image forms the foundation for building long-term selling relationships
Describe the importance of a win-win relationship
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Relationship strategy is about making better use of the knowledge you already have about
customers in your daily activities. Using customer data more intelligently can gain respect and
trust, by targeting people with the right pitches, as well as avoid wasting time when handling
enquiries.
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Key Points:
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Emotional Intelligence
Emotional Intelligence is the capacity for monitoring our own feelings and those of others, for
motivating ourselves, and for managing emotions well in ourselves and in our relationships
Emotional intelligence is a predictor of success
It can be enhanced with self-development
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Developing a Relationship Strategy
Relationships add value
Partneringthe highest-quality selling relationship
Relationship strategies focus on four key groups
Tailoring the relationship strategy
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Relationships Add Value
Customers perceive that value is added when they feel comfortable with the relationship they
have with a salesperson
Certain salesperson traits help create perception of value

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Honesty
Accountability
Sincere concern for customer welfare
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4.
PartneringThe Highest-Quality Selling Relationship
Partneringstrategically developed, high-quality, long-term relationship focusing on solving

customers buying problems
It emphasizes building a relationship
Selling must be viewed as process, not an event
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Wilsons Three Keys to Partnering Relationship
Relationship is built on shared values
Both commit to same vision
Salesperson moves from selling to supporting
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Customer Relationship Management (CRM) Software
CRM enhances relationship quality
Promotes rapid and effective client communication
Written records help avoid miscommunication
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Tailoring Relationship Strategies
Transactional selling
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Buyers aware of needs, focus on price
Relationship strategy secondary
Consultative selling
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Salesperson listens, defines problem, solves
Impact of the relationship is important
Strategic alliance selling

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Build relationship with several people
Thought Processes to Enhance Relationship Strategy
Self-image is key dimension
Win-win philosophy
Character and integrity
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Self-Image
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Shaped by the ideas, attitudes, feelings, and thoughts you have about yourself that influence the
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way you relate to others

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Feelings and behavior are consistent with the self-image
The self-image can be changed
10. Developing a More Positive Self-Image
Focus on future, not past mistakes
Develop expertise in selected areas
Develop a positive mental attitude
11. Character and Integrity
Character includes personal standards, including honesty, integrity, and moral strength
Integrity involves achieving congruence between what you know, say, and do
Integrity has become a valuable character trait
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12. Verbal and Nonverbal Strategies
First customer contact critical
Quick, superficial judgments are made
These impressions can facilitate or distract
The image a salesperson projects can influence the customers feelings about that salesperson
13. Nonverbal Messages
Silent messages communicated through facial expressions, voice tone, gestures, appearance,
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posture, and other nonverbal means
Nonverbal messages have greater impact than verbal messages
Make sure verbal and nonverbal messages are consistent
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14. Entrance and Carriage
Believe and project that you have a reason to be there and something important to offer the client
Communicate confidence with:
Strong stride
Good posture
Friendly smile
15. The Win-Win Philosophy
Customer satisfaction primary
Adopting win-win is the first step in development of relationship strategy
Both the buyer and seller come out of the sale with their respective best interests being served
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16. Facial Expressions
Facial expressions convey inner feelings
People tend to trust a smiling face
Reading facial expressions fairly universal across cultures
17. Eye Contact
Good eye contact says Im listening.
Prolonged eye contact can send the wrong message
18. Voice Quality and Relationships
Ever hear Its not just what you say, but how you say it?
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Avoid rapid-fire speech
Vary speed of your delivery
Sound upbeat and energetic, but not phony
Convey enthusiasm in your voice
Try to sound relaxed
Avoid bad speech habits
19. Manners and Relationships
Avoid temptation to start on first name basis
Avoid offensive comments or jokes
Recognize the importance of punctuality
When dining, avoid discussing business before meals are ordered, unless customer initiates
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When leaving voice-mail messages, leave a clear, concise message
Avoid cell-phone contempt
20. Conversational Strategies
From Dale Carnegie:

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Become genuinely interested in other people
Be a good listener
Talk about interests of others
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From text:
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Comment on here and now observations
Compliment your customers when appropriate
Find mutual acquaintances or interests
Set precise goals
Visualize success
Use positive self-talk
Reward progress
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21. Self-Improvement Strategies
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: Communication Styles: Managing Selling Relationships

Topic Objective:
Discuss communication-style bias and how it influences the relationship process
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Explain the benefits derived from an understanding of communication styles
Identify the two major dimensions of the communication-style model
List and describe the four major communication styles in the communication-style model
Learn how to identify your preferred communication style and that of your customer
Learn to overcome communication-style bias and build strong selling relationships with style
flexing
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Individuals have various preferences for both communicating with others and interpreting the
communications from others. Numerous models have been developed which describe how to
recognize an individual's preferred style of communicating and what strategy to use in
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communicating most effectively with them.
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Naturally people fall into one of two communication styles - the apssive and the aggressive.
None of these styles are as effective as the assertive communication style, whish is a style, and
skill that can be learned.
Key Points:
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Communication Style
Your communication style is the you that is on display every daythe outer pattern of behavior
that others see. If your style is very different from the other persons, it may be difficult for the
two of you to develop a rapport.
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Communication-Style Bias
Most frequently occurring form of bias
Not commonly understood
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A state of mind that is difficult to explain
Develops when we have contact with another whose communication style is different from our
own
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Adaptive Selling
Describes training programs that encourage salespeople to adjust their communication style to
accommodate styles of their customers
More than 7 million have completed adaptive selling programs with Wilson Learning
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Communication-Style Principles
Individual Differences
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Individual differences exist and are very important
Each person displays individual array of verbal and nonverbal
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characteristics
Style as a Way of Thinking and Behaving
A preferred way of using ones abilities
Ability = how well you can do something
Style = how you like to do it
Style Tends to Be Stable over Time

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Based on hereditary and environmental factors
Our style tends to remain rather constant through life
There Is a Finite Number of Styles

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Most people display one of several behavioral clusters
We can often label a persons style
Get in Sync with Styles of Others
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Style differences can be source of friction
Develop an ability to adapt to another persons style
Improving Relationship Skills

First goal: understand your own preferred communication style
Second goal: develop greater understanding and appreciation for different styles
Third goal: manage selling relationships by adapting style (style-flexing)
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Dominance Continuum
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Low dominance
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Cooperative
Let others control
Low in assertiveness
High dominance
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Like to control
Initiate demands
More aggressive
Sociability Continuum
Low
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Control feelings
Prefer solitude
More reserved
More formal
Express feelings
Prefer interaction
More outgoing
More informal
High
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Emotive Style
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Appears quite active
Takes social initiative
Encourages informality
Expresses emotional opinions

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Directive Style
Appears quite busy
May give the impression of not listening
Displays rather serious

attitude
Likes to maintain control
10. Reflective Style
Controls emotional expression
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Displays preference for order
Tends to express measured
opinions
Seems difficult to get to know
11. Supportive Style
Appears to be quiet and reserved
Listens attentively
Tends to avoid use of power
Makes thoughtful decisions in deliberate manner
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12. Minimizing Communication-Style Bias
Salespeople often focus too much on the content and not enough on the delivery of their sales
presentation
It can be a barrier to sales success
One must work with people from all four quadrants
Become highly adaptable
13. Achieving Interpersonal Versatility
Versatility describes ones ability to minimize communication-style bias
Adapting to the customers preferred style can enhance sales performance
Move toward a more mature style
Strength-weakness paradox
Intensity zones
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14. Versatility Through Style Flexing
Style-flexing: the deliberate attempt to adjust ones communication style to accommodate others
needs
Learn about each customers style during preapproach stage
Do not become preoccupied with identifying style during sales calls
Analyze call afterward for style clues
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15. Selling to Emotives and Directors
Selling to Emotives
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Be enthusiastic
Dont be too stiff or formal
Take time to establish goodwill/relationships
Maintain eye contact
Be good listener
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Selling to Directors
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Keep as businesslike as possible
Be efficient, time disciplined, organized
Identify their goals
Ask questions and note responses
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16. Selling to Reflectives and Supportives
Selling to Reflectives
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Use thoughtful, well-organized approach
Present information in deliberate manner
Provide documentation
Never pressure for quick decisions
Selling to Supportives
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Take time to build the relationship
Listen carefully to their opinions and feelings
Provide assurances for their views
Have patience, give them time to comprehend
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Words of Caution
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Do not let labels rule behavior
Labels make people feel boxed in or judged
Acquire additional information
Do not classify people per se, classify their strengths and preferences
Do not let labels justify your inflexibility
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In Section 2 of this course you will cover these topics:

Ethics: The Foundation For Relationships In Selling
Creating Product Solutions
Product-Selling Strategies That Add Value
The Buying Process And Buyer Behavior
You may take as much time as you want to complete the topic coverd in section 2.
There is no time limit to finish any Section, However you must finish All Sections before
semester end date.
If you want to continue remaining courses later, you may save the course and leave.
You can continue later as per your convenience and this course will be avalible in your
area to save and continue later.
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: Ethics: The Foundation For Relationships In Selling

Topic Objective:
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Discuss the influence of ethical decisions on relationships in selling
Describe the factors that influence the ethical conduct of sales personnel
Compare legal versus ethical standards
Discuss the influence of company policies and practices on the ethical conduct of salespeople
Explain how role models influence the ethical conduct of sales personnel
Explain how values influence behavior
Discuss guidelines for developing a personal code of ethics
Ethics: Ethics is a major branch of philosophy, encompassing right conduct and good life. It is
significantly broader than the common conception of analyzing right and wrong. A central aspect
of ethics is "the good life", the life worth living or life that is simply satisfying, which is held by
many philosophers to be more important than moral conduct
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Selling: Selling involves sales which are the pinnacle act of completed of a purchasing activity.
Key Points:
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Making Ethical Decisions
Business ethics: principles and standards that guide behavior in the world of business
They help translate your values into appropriate and effective behaviors
No one uniform code of ethics for all salespeople, but many businesses, professional
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associations, and certification agencies have established written codes
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Character Development
Colleges and universities are beginning to play a more active role in character development
Courses that focus on ethics are becoming quite common
Despite a growing interest in business ethics, unethical behavior has become all too common
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EnronA Classic Case in Ethics
Largest U.S. corporation to file bankruptcy
Enron culture emphasized
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Risk-taking
Personal ambition over teamwork
Earnings growth at any cost
Dishonest practices eroded company character
But, it was listed as number5 in Fortune 2002 list! Why?
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Half-Truths Influencing the Erosion of Character
We are in it only for ourselves
Corporations exist to maximize shareholder value
Companies need to be lean and mean
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Management as Role Model
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Ethical standards filter down from the top
Organizations moral tone, set by management, is most important determinant of employee ethics
Managers must infuse ethical
values in subordinates
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Company Policies and Practices
Company policies and practices can have a major impact on conduct
Developing ethical policy statements forces company to take a stand
Policies should include distributor relations, customer service, pricing, product development,
etc.
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7.
Mutual of Omahas Values for Success
Openness and trust
Teamwork (win-win)
Accountability/ownership
Sense of urgency
Honesty and integrity
Customer-focus
Innovation and risk
Caring/attentive (be here now)
Leadership
Personal and professional growth
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Additional Policy Areas
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Sharing confidential information
Reciprocity
Bribery
Gift giving
Entertainment
Business defamation
Use of the Internet
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Sales Manager as Role Model
A salespersons actions often mirror those of the sales manager
Sales managers are responsible for interpreting company policy
Values such as integrity and honesty must receive constant manager support
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10. Personal Values
Values are deep personal beliefs and preferences, representing the ultimate reasons people have
for acting as they do
Values serve as foundations for our attitudes
Attitudes serve as foundations for our behavior
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11. When Values Conflict
You have three basic choices:
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Ignore the influence of your values and engage in the unethical behavior
Voice strong opposition to the practice that is in conflict with your value
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system
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Refuse to compromise your values and be prepared to deal with the
consequences
12. Laws, Contracts, and Agreements
Legal environment plays a role in preventing unethical behavior
Cooling-off laws
Uniform Commercial Codelaw influencing buyer-seller transactions
Oral and written contracts
Beyond the letter of the law
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13. Develop a Personal Code of Ethics
Some general guidelines:

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Personal selling must be viewed as an exchange of value
Relationship comes first, tasks second
Be honest with yourself

and others
14. Exercising Care with CRM
CRM software allows storage of transaction data and personal info
Record facts, not opinions or conclusions
CRM data is mobile and other
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people may see or use it
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Do not store anything you do

not want the customer to see
15. The Trust Factor
In transactional sales, the focus is on trust in the product
In consultative sales, the focus is on trust in the salesperson
In strategic alliance sales, the focus is on the other company and its values
: Creating Product Solutions

Topic Objective:
Explain the importance of developing a product strategy
Describe product configuration
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Identify reasons why salespeople and customers benefit from thorough product knowledge
Discuss the most important kinds of product and company information that salespeople use in
creating product solutions
Describe how knowledge of competition improves personal selling
List major sources of product information
Explain the difference between product features and buyer benefits
Demonstrate how to translate product features into buyer benefits
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As consumers we justify our purchases, at least in our own minds, as being something we need.
As business owners, selling our products or services, we have been lulled into believing that
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customers are buying from us because they need what we have to offer. We are trying to meet
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the needs of our customers instead of focusing on meeting their wants.

If customers made purchase decisions based on need we would all be driving Model Ts and
Henry Ford would have been right, The customer can have any color he wants so long as its
black."
People may buy a product category due to need. However, they purchase a specific brand or
from a certain company based on wants. In other words, needs define the total market and wants
define the market segments. For example, people buy a watch because they need to know what
time it is. One person buys a Rolex because they want the status and prestige associated with
owning a Rolex while someone else buys a Timex because they want dependability
inexpensively.
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Key Points:
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Product Strategy Defined
The product strategy is a well-conceived plan that emphasizes becoming a product expert,
selling benefits, and configuring value-added solutions.
2.
Solutions
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Are mutually shared answers to recognized customer problems
Are more encompassing than specific products
Provide measurable results
Require a greater effort to define and diagnose the customers problems
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Tailoring the Product Strategy
The product strategy should be tailored to the customers buying needs
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Explosion of Product Options
More than 30,000 consumer products are turned out each year
The good news is: greater consumer choice
The bad news is: with more choice, buying process is more complicated
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Product Configuration
Shows how different parts of your product mix can combine to solve the customers problem
Product configuration software
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o Incorporates customer selection criteria

o Identifies options, pricing, delivery schedules
o Can integrate with contact management software like ACT!
6.
Written Proposals
Many clients ask for written proposals and some provide detailed guidelines
Most written proposals include:
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o Budget and overview
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o Objective
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o Strategy
o Schedule
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As a Salesperson, You Need to Know:
Your products
Your company and its policies
Your competition and industry
8.
o Rationale
Product Information Categories
Product development and quality improvement processes
Performance data and specifications
Maintenance and service contracts
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Price and delivery
9.
Product Development and Quality Improvement
Development
o Be familiar with product history
o Know stages of product testing
o Link key features and customer needs
Quality
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o Quality control involves measuring against standards
o Extensive sales-force training is key element of quality control
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10. Performance Data and Specifications
Most clients interested in product performance and specifications
Salespeople must be prepared to answer performance-related questions
Data often critical when customer compares various products
11. Maintenance and Service Contracts

o Provide service-related information in proposal and/or at the time of sale
o Understand customers service and maintenance requirements
o Customized service agreements add value
Price and Delivery
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o Clients expect salespeople to be well versed in price and delivery policies

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Giving salespeople price and delivery decision power yields strong position
o Price objections often common barrier to closing the sale
Know Your Company

o Salespeople sell their company as much or more than they sell a product
o Organizational culture is a collection of beliefs, behaviors, and work patterns
common to a firms employeesinfluences customer orientation of salespeople
o Many prospects use a firms past performance as index for current
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products/services
Know Your Competition
o Acquiring knowledge of the competition is an important step
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o Knowing strengths and weaknesses of competing products allows you to

emphasize your benefits
o Prospects do raise questions about competitionbe prepared to answer
Handling Competition
Avoid referring to the competition during sales presentations
Never discuss the competition unless you have your facts straight
Avoid criticizing the competition
Be prepared to neutralize competitor proposals by adding value to yours
Features and Benefits
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A feature is data, facts, or characteristics of your product or service

A benefit is whatever provides the customer with a personal advantage
or gain
o General benefits
o Specific benefits
Bridge Statements
o Transitional phrases linking a feature statement to a benefit statement
o Sample bridge
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o This product is nationally advertised, which means you will benefit from more
pre-sold customers
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o Best method for presenting benefits to customers
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: Product-Selling Strategies That Add Value

Topic Objective:
Describe positioning as a product-selling strategy
Discuss product differentiation in personal selling
Explain how todays customer is redefining products
Describe how to sell products at various stages of the product life cycle
Explain how to sell your product with a price strategy
Explain how to sell your product with a value-added strategy
List and describe the four dimensions of the total product concept
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Value adding can mean different things to different people. The decision to go into value adding
is not one to be taken lightly. There is considerably more risk involved in value adding than in
selling the bulk commodity, however the rewards can be greater. The first, and most important,
consideration is to objectively assess the business you are in and decide if the value adding idea
fits with your current production, distribution and marketing disciplines. If you make things from
wood should you consider making a new line of products from metal ? Could the new product be
sold through the same network of wholesalers & retailers as your existing products ? Is value
adding a diversification for your business ? Is it an extension of your existing business or is it a
totally new discipline. If you are entering a market that is new to you, be sure you understand the
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language...each has its own jargon, rules and social structure
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Key Points:
1.
Positioning and Differentiation
Positioning involves those decisions and activities intended to create and maintain a certain
concept of the firms product in the customers mind
Differentiation refers to your ability to separate yourself and your product from that of your
competitors. It is the key to building and maintaining a competitive advantage
2.
Value Proposition
The set of benefits and values the company promises to deliver to customers to satisfy their
needs
A well-informed customer will usually choose the product that offers the most value
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3.
Redefining Products in the Age of Information
Products are problem-solving tools

o
Product Selling Model
Todays product
o
Meets and exceeds expectations
Better quality, larger selection
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Todays salesperson
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Acts as partner
More trustworthy, knowledgeable
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Todays company
Acts as team to provide
Delivery, training, credit, service
Effective selling is based on a comprehensive analysis of the competitive situation
5.
People buy products if they fulfill a problem-solving need
Todays better educated and more demanding customers are seeking a cluster of satisfactions
4.
Product Positioning Options
Position new versus established products
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Position with price strategies
Position with value added
6.
Selling New versus Mature Products
Nature and extent of each stage in product life cycle determined by:
7.
Products perceived advantage over available substitutes
Products benefits and importance of needs met by product
Full spectrum of competitive activity
Changes in technology, fashion, and/or demographics
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Application: Slipit Case
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SLIPIT is a family of lubricating products marketed since 1939
Customers range from Otis Elevator to Pennsylvania House Furniture
8.
Selling Products with a Price Strategy
Low-price emphasis
Consequences of low price tactics
E-commerce impact on pricing
9.
Various Forms of Discounts
Quantity: lower price for high quantity or dollar amount
Seasonal: price adjusted by time of year
Promotional allowance: give special price linked to special promotion or advertising campaign
Trade/functional discounts: given to wholesalers for special services
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10. Consequences of Low Price Tactics
High/low involvement buyers?

o
High emotional involvement with brand
Low-involvement buyers focus on price
Importance of quality?
o
Role of pricequality relationship in sale
Importance of service?
o
Many buyers, particularly business-to-business, rank service above absolute
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11. E-commerce and Price
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Transaction orientation: online sales persons mostly transaction-oriented, little value added
Buyers often well informed: online buyers visit a number of Websites
Adding value: again, adding value is very important
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12. Value-Added Selling
Progressive marketers add value with intangibles

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Increased service and courtesy
Prompt deliveries, more innovations
Value-added approaches yield unique niche and competitive edge
: The Buying Process And Buyer Behavior

Topic Objective:
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Discuss the meaning of a customer strategy
Explain the difference between consumer and organizational buyers
List and describe the steps in the typical buying process
Discuss the buying process of the transactional, consultative, and strategic buyer
Understand the importance of alignment between the selling process and the customers buying
process
Discuss the social and psychological influences that shape customer buying decisions
Whenever folks make a buying decision, that decision represents the culmination of a process. It
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may take place almost instantaneously or stretch out over a long period of time but its a process,
not an event.
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No matter how long the process takes, the buying decision always begins when folks become
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aware of a need. Once they have identified that need, they begin to search for and explore
possible avenues for meeting it. While gathering information, they refine and evaluate all the
buying criteria that will affect the decision to purchase and narrow the field of choice to the best
few alternatives. Once they reach a decision and choose, they take action by making a purchase.
(Keep in mind those horrid shopping cart abandonment rates making a decision to purchase is
not the same thing as completing the purchase!) The final step in the process involves a
reevaluation of the decision and its results.

Buyer Behavior: An important part of the marketing process is to understand why a customer
or buyer makes a purchase.
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Key Points:
1.
Customer Strategy Defined
A customer strategy is a carefully conceived plan that results in maximum customer

responsiveness. One major dimension of this strategy is to achieve a better understanding of the
customers buying needs and motives.
2.
Complex Nature of Customer Behavior
Individual customers perceive the product in their own terms
The customer is a person, not a statistic
Companies that fully accept this basic truth are likely to adopt a one-to-one
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marketing strategy
3.
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Consumer versus Organizational Buyers
Consumer buyer behavior refers to the buying behavior of individuals and households who buy
goods and services for personal consumption
Business (organizational) buyer behavior refers to the organizations that buy goods and services
for use in the production of other products and services that are sold, rented, or supplied to others
4.
Types of Organizational Buying Situations
New-task buy
o
Salespeople rely on consultative selling skills
Straight rebuy
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Salespeople constantly monitor satisfaction
Modified rebuy
o
Salespeople can provide service/anticipate changes
Systems selling
5.
Types of Consumer Buying Situations
Habitual buying situations
Variety-seeking buying situations
Complex buying situations
6.
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Achieving Alignment
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The buying process is a systematic series of actions, or a series of defined, repeatable steps,
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intended to achieve a result
Salespeople need to be clear on how decisions are being made
Acquire specific information rather than make generalizations about the buyers decision-making
process
7.
Steps in the Buying Process
Need awareness
o
Salespeople can create value by determining problems and identifying

solutions
Evaluation of solutions
o
Salespeople can create value by providing useful information
Resolution of problems
Purchase
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Salespeople create value by arranging financing or supervising delivery and

installation
Implementation
o
Value creation involves timely delivery, superior installation, accurate

invoicing, or follow-up contacts by the salesperson
8.
Transactional buyers
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Salespeople can eliminate any unnecessary costs or delays
Consultative buyers
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Salespeople focus attention on needs awareness/help customer evaluate

solutions
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Understanding Buying Processes
Strategic alliance buyers
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9.
Group Influences
Role: expectations associated with position
Reference groups: categories of people you see yourself belonging to
Social class: group with similar values, interests, lifestyles
Culture: influences of group with common language, environment, also subcultures
10. Basic NeedsMaslow
Physiological: food, shelter
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Security: free from danger
Social: identification
with social groups,

friendship
Esteem: desire to feel worthy in eyes of others
Self-actualization: need for mastery, self-fulfillment
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11. Buying Motives
A buying motive is an aroused need, drive, or desire that stimulates behavior to satisfy the
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aroused need
Its helpful to discover the dominant buying motive or DBM
Four basic motive typesemotional, rational, patronage, and product
12. Emotional and Rational Motives
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Emotional
Acts due to passion or sentiment
Emotional appeals common
If two products are identical, the salesperson who connects has the advantage
Acts on reason or judgment
Relatively free of emotion
Salespeople gather, interpret, and disseminate customer-specific information
Rational
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13. Patronage and Product Motives
Patronage
o
Buy from a particular firm
Past experience positive
Relevant elements: superior service, product selection, competent sales staff
Buyer believes one product is superior to others
Preferences for: specific brands, quality, price, design/engineering
Product
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Developing And Qualifying A Prospect Base
Approaching The Customer
Creating The Consultative Sales Presentation
semester end date.
: Developing And Qualifying A Prospect Base

Topic Objective:
Discuss the importance of developing a prospect base

Identify and assess important sources of prospects
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Describe criteria for qualifying prospects
Explain common methods of organizing prospect information
Name some characteristics that are important to learn about customers as individuals and
business representatives
Describe the steps in developing a prospecting and sales forecasting plan
A person selling a business outright has a variety of ways to locate the right buyer. Many
businesses are put up for sale through classified ads in newspapers, business journals or trade
publications. Local business associations, such as your chamber of commerce, business
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development committee or economic development center, can also help get the word out to
qualified buyers. Here are a few of the other avenues you can
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Key Points:
1.
Prospect, Prospecting, and Prospect Base Defined
Prospect: a potential customer that meets the qualification criteria established by your company
Prospecting: identifying potential customers
Prospect base: is made up of current customers and potential customers
2.
Importance of Prospecting
Every salesperson must cope with customer attrition
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3.
Customers move, firms go out of business, sales lost to competition
Average company may lose 15 to 20% of customer base every year
Prospecting Requires Planning
Increase number of people who board the Ferris wheel
Improve the quality of prospects
Shorten sales cycle by determining which prospects are qualified
Prospecting plans must be monitored continuously for effectiveness
4.
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Referrals
Prospect recommended: by current satisfied customer or one familiar with product or service
Endless chain: ask contact who else could benefit from product
Referral organizations: facilitate networking
Friends, family members, centers of influence: a person may not make decision but has influence
on those who do . . . opinion leaders
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5.
Directories
Hundreds of business and industrial directories available
Many major trade associations publish directories
Be sure to use current copy or edition as prospects shift firms; track people and companies
6.
Trade Shows/Publications
Trade shows and conventions: your company may have a booth at key trade shows/expositions
Trade publications: each industry has trade publications that sales professionals need to read
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Join trade associations: many salespersons join trade associations to gain access to potential
buyers
7.
Telemarketing
Telemarketing: the practice of marketing goods and services through telephone contact
To identify buyers and generate contact lists for sales staff
To qualify prospects
To verify sales leads generated by other methods
To conduct follow-ups
8.
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Direct Response and Sales Letters
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Direct response advertising: often features inquiry cards or information requests via mail or
telephone
9.
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Sales letters: send sales letters to decision makers, then follow up
Website
Websites provide cost-effective way for sales professionals to:
Project personal image
Provide additional information
Generate leads from visitors to site
Present product information
Establish e-mail lists
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10. Computerized Databases
In-house databases: your firm may already have a comprehensive database; sometimes referred
to as the house list with details on customers, purchase patterns, and so forth
List sources: wide range of precise lists available from variety of sources
In-house databases: your firm may already have a comprehensive database; sometimes referred
to as the house list with details on customers, purchase patterns, and so forth
List sources: wide range of precise lists available from variety of sources
11. Cold Calling
Simply calling prospects without referrals
New salespeople rely on these as they havent built referral base
Must be strategically planned
Prelude to in-person appointment
A way to introduce yourself and your company to a prospect
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12. Networking
Making and profiting from personal connections
Networking guidelines
Meet as many people as you can
Tell them what you do
Do not do business while networking
Offer business card
Edit contacts and conduct follow-ups
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13. Educational Seminars
Provide opportunity to showcase product without pressuring to buy
Require extensive preparation
Start value-added process
Can attend or present at industry sponsored seminars or offer your own
14. Qualifying Prospects
Key time-saving criteria:

o
Does the prospect need my product?
Can prospect make the buying decision?
Can prospect pay for the purchase?
Will anyone close the sale?
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15. Prospecting and Sales Forecasting Plans
Important to balance time and organize contacts:
Prepare a list of prospects
Forecast potential sales volume for each new account, by product
Carefully plan the sales route to minimize time and cost
: Approaching The Customer

Topic Objective:
Describe the three prescriptions that are included in the presentation strategy
Describe the role of objectives in developing the presale presentation plan
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Discuss the basic steps of the preapproach
Explain the merits of a planned presentation strategy
Describe the nature of team versus one-person presentation strategies
Describe the six main parts of the presentation plan
Explain how to effectively approach the customer
Describe seven ways to convert the prospects attention and arouse interest
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The reality is that a small business, whether retail or service, can have the advantage over big
business, if its management can understand the idea that small businesses have the upper hand in
capturing market share through true customer retention and positive customer experience
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initiatives. This is perhaps so simple that it can be easily overlooked. The personal touch of a
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small business positively affects customer retention. This is why so many larger businesses have
chosen franchising, direct marketing, or network marketing to sell their products and services.
What they are really doing is giving consumers and businesses a personal experience.
Consumers and businesses place value on added service. Who doesn't appreciate an owner, a
sales rep, a customer service rep, or an agent showing sincerity and interest in them during the
sales process and customer life cycle? Even if a product or service is slightly more expensive,
purchasers are generally willing to invest in value added to the product or service. We expect
more when we pay more. The key to success is a positive customer experience - the simple
approach to customer retention.
Key Points:
1.
Presentation Strategy Defined
The presentation strategy is a plan that includes three prescriptions:
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2.
Establishing objectives
Developing presale presentation plan to meet objectives
Renewing ones commitment to outstanding customer service
Preapproach andApproach Planning
Preapproach involves preparing presale objectives and presentation plan
Approach involves making good impression, securing attention, developing interest
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3.
Establish Presentation Objectives Wisely
Carefully selecting presentation objectives can:
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Shorten sales cycle
Provide value to the customer
Clarify the topics to be discussed if sent to the customer prior to the sales call
First Call Presentation Objectives

o
Establish rapport and begin building a relationship with the customer
Obtain permission to ask need identification questions
Obtain personal and business information to establish the customers file
Presentation Objectives for Stage Two

Involve the customer in a product demonstration
Provide value justification in terms of cost reduction and increased revenues
Compare and contrast the features of, for example, a truck fleet lease plan
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Team Selling Objectives

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Team selling is suited to organizations that sell complex or customized
products
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with a fleet purchase plan
Sales teams often uncover problems and solutions that individuals may not
Team sales presentations require a more detailed pre-call plan
Each team member must know his/her role
Selling to a Buying Team
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Must satisfy both the individual and collective concerns of each participant
Determine the role of each decision maker and their amount of influence
Make sure all are involved

do not ignore
Discover any silent team

members
Note on Six-Step Plan

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Each of the first six topics of this text concentrates on a specific step of the
presentation plan
4.
This topic focuses on
Approach
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Six-Step Presentation Plan
Approach
Presentation
Demonstration
Negotiation
Close
Servicing the Sale
5.
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Approach Objectives
Initial contact with customer
Three objectives
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Build rapport
Capture full attention
Transition to need discovery stage
Often a phone call
6.
Establish Credibility Early
Credibility is an impression that people form about you
Do not erode your credibility by:

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Arriving late, staying too long, not following up
Credibility grows when the customer realizes you are competent and can
add value
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Telephone Contact
To set first appointment
Practices to employ
8.
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Plan in advance
Identify self and firm
State purpose of call
State estimated length
Confirm via note
Using Voice Mail
Be prepared
Be brief
Give likely benefits
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Give best time to call back
Repeat your phone number, slowly
State any referrals
9.
Using E-mail
Meaningful subject line
Tell reader what you want,

then encourage a response
Put important information up front
Always use grammar and spell-check tools
Use signature file
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10. Social Contact
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First few minutes are key in first impressions
Develop conversation by:
Here and now observations
Sincere compliments
Search for mutual interests,
acquaintances
11. Business Contact
Convert prospect focus from social to business part
Six effective methods to capture attention and focus follow
12. Business Contact Approaches
Agenda approach
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Review meeting goals
Shows that you value the customers time
Agendas should be flexible
Product demonstration approach

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Give actual product demonstration
Use computer or other audio/visual aids to provide virtual demonstration
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Referral approach
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Third party opinion or statement adds credibility
Include name/direct reference to third party
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Customer benefit approach

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Immediately point out at least one benefit of your product
Present key benefits in order of importance
Question approach
Ask direct question
Get prospect thinking about problem your product will solve
Listen to response
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15. Survey approach

o
Prospect completes questionnaire before contact
Analyze results to assess needs and benefits
Avoid early price discussion
16. Premium approach
Provide free sample of product
Provide prospect with gift, such as monthly appointment calendar
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17. Combination approach
Use multiple approaches
Provide flexibility
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18. Selling to the Gatekeeper
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Assistants or secretaries who manage the decision makers schedule
Treat the gatekeeper with respect
Can be an important source of information
May help make a preliminary qualification before reaching the decision maker
: Creating The Consultative Sales Presentation

Topic Objective:
Describe the characteristics of the consultative sales presentation

Explain how to determine the prospects needs
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Discuss the use of questions to determine needs
Select products that match customer needs
List and describe three types of need-satisfaction presentation strategies
Present general guidelines for creating value-added presentations
Before getting into the details of how to do a sales presentation, let me just reiterate the goals of
a salesman. First goal of a consultant salesman is to establish a relationship with the potential
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customer and then make the potential customer make a purchase. Second goal is to maintain the
relationship with the customer as that this "first-time" customer will make repeat purchases.
Third goal is to intensify the relationship so that the "regular customer" becomes a customer
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champion and will make enthusiastic referrals.
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Key Points:
1.
Six-Step Presentation Plan
Approach
Presentation
Demonstration
Negotiation
Close
Servicing the Sale
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2.
Value of Questioning
The effective use of questions to achieve need identification and need satisfaction is the single
greatest challenge facing most professional salespeople. The types of questions you ask, the
timing of those questions, and how you pose them greatly impacts your ability to create customer
value.
3.
Survey Questions
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Information gathering questions designed to obtain this knowledge

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General survey questions
Specific survey questions
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Not to be used for factual information one could acquire from other sources prior to the sales call
4.
Need Discovery Worksheet
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Strategically prepare tentative questions before making the sales call
Prepare open and closed questions
Tell me a little bit about your investment portfolio? (open/general survey)
What are your major concerns when managing your financial affairs?
(open/specific survey)
Probing Questions
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Help to uncover and clarify the prospects buying problem and circumstances
Are referred to as implication or pain questions and used more frequently in

large, complex sales
Help the salesperson and customer gain a mutual understanding of why a

problem is important
Confirmation Questions
o
Verify accuracy and assure a mutual understanding of information

exchanged
Summary-confirmation questions
Buying conditions are those qualifications that must be available or fulfilled

before the sale can be closed
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Verify accuracy and assure a mutual understanding of information
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exchanged
o
Summary-confirmation questions
Buying conditions are those qualifications that must be available or fulfilled
before the sale can be closed
Need-Satisfaction Questions
o
Designed to move the sales process toward commitment and action
Focus on specific benefits
Are powerful because they build desire for the solution and give ownership of
the solution to the prospect
5.
Listening and Acknowledging
Develop active listening skills
Focus your full attention
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Paraphrase the customers meaning
Take notes
6.
Configure a Solution
Most salespeople have variety of products
Package solution from your array of products
7.
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Appropriate Recommendations: Three Alternatives
Recommend solution: customer buys immediately
Recommend solution: salesperson makes need-satisfaction presentation
Recommend another source
8.
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Informative Presentation Strategy
Emphasizes facts
Commonly used to introduce new products and services
Stress clarity, simplicity, and directness
Less is morebeware of information overload
9.
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Persuasive Presentation Strategy
To influence the prospects beliefs, attitudes, or behavior and to encourage buyer action
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Used when a need is identified
Subtle seller transition from rational to emotional appeals
Requires training and experience to be effective
10. Reminder Presentation Strategy
Also known as reinforcement presentations
Maintains product awareness
Good when working with repeat customers
Sometimes a dimension of service after the sale
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11. Developing Persuasive Presentations that Create Value
Emphasize relationship
Sell benefits, obtain customer reactions
Minimize negative impact of change
Strongest appeal at start or end
Target emotional links
Use metaphors, stories, testimonials
12. General Guidelines for Value-Added Presentations
Demonstration adds strength
Plan negotiating and closing methods
Plan customer service to add value
Keep presentation simple, concise
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13. Transactional Buyers
Primarily interested in price and convenience

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May have already done research, used Internet to gather product

information
Most understand what they need and when they need it
Focus on price and delivery
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Creating Value With The Sales Demonstration
Negotiating Buyer Concerns
Closing The Sale And Confirming The Partnership
semester end date.
: Creating Value With The Sales Demonstration

Topic Objective:
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Discuss how sales demonstrations add value
Explain the guidelines to be followed when planning a sales demonstration
Complete a demonstration worksheet
Develop selling tools that can add value to your sales presentation
Discuss how to use audiovisual presentations effectively
During the demonstration phase of making a sale, applying the 5 Powers of a Champion of
Health, Knowledge, Value, Excellence and Character will increase your ability to close the sale.
The prospect will be in a better buying mood, have confidence in you as a salesman, be
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motivated to buy, appreciate what you do, and trust in you.
People want their money's worth in what they buy. You need to show the value of what you are
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selling to them. This not only includes the monetary value, but also personal rewards they may
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get from owning the product or using the service. This gives them motivation to buy.
Key Points:
1.
Effective Demonstration
Adds sensory appeal
Attracts customer
attention
Stimulates interest
Creates desire
for product
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2.
Benefits of Demonstration
Improved communication and retention
Proof of buyer benefits

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Proof devices
Feeling of ownership
Quantifying the solution
Value proposition revisited
3.
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Strategic Planning Points
Determine what features to demonstrate
Determine what sales tools to use
Check sales tools
Determine when and where to demonstrate
Determine how to involve the prospect
Prepare a demonstration worksheet
Rehearse the demonstration
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4.
Creative Demonstrations
Make features and benefits appealing

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Must gain attention and increase desire for product
Create different ways of looking at problem and solution
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5.
Relate to specific customer needs
Do not overstructure
Personalize the process
Choose Right Setting
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Sometimes neutral ground, like hotel or conference center
Other times in firms conference room
Controlled environments free from distraction
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Cover One Idea at a Time
Demonstrate one idea or feature at a time
8.
Demonstration location makes difference
7.
Customize Demonstration
Use custom-fitted demonstrations
6.
Make sure customer understands each before moving on, pace evenly
Make customer part of every step
Need-satisfaction questions help move forward
Appeal to All Senses
Try to involve all five senses
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Multisensory appeals help involve prospect and build desire for

the product
9.
Dunbar salespeople include a tasting kit along with their demonstration
Balance Telling, Showing, and Involvement
Develop demonstration worksheet

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Demonstrations should be balanced and have varietyuse worksheet to

prepare
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Try to give prospect hands-on experience
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10. Proof Devices
Product itself is often best selling aid
Plant tours are excellent source of product info
Models are used when product large
Photos, illustrations, and brochures
Portfolio of support materials
Reprints of articles on product
Catalogs show product line and specifications
Graphs, charts, and test results
Laptop computers and demonstration software
11. Computer-based Tools: PowerPoint
Can incorporate charts, graphs, images, audio, and video
Often so common, familiarity level can be boring
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12. Computer-based Tools: Spreadsheets
Spreadsheets excellent for organizing numbers to prepare quotes
Also good for what-if scenarios
Can be printed for proposal purposes
Can convert numbers to graphs or charts
13. Computer-based Tools: Web-based Demonstrations
Showcase information using Web browser
Can integrate data, voice, and video
Can conduct question and answer sessions in real time
Prospects can also view at their convenience
14. Bound Paper Presentations
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Bound presentations still widely used
Effective for attractive graphs and charts, guarantees, product testimonials, etc.
Favored because of availability for future reference
15. Using Audiovisuals
Videos and computer-based presentations are common, but sometimes used ineffectively
Guidelines
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Audiovisuals support, not replace, an interactive sales demonstrations
Preview material, describe highlights
Be prepared to pause for questions
At conclusion, review key points
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: Negotiating Buyer Concerns

Topic Objective:
Describe negotiations as part of a win-win strategy
Describe common types of buyer concerns
Outline general strategies for negotiating buyer concerns
Discuss specific methods of negotiating buyer concerns
Describe ways to deal effectively with buyers who are trained in negotiating
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Most salespeople and business owners hear statements like this every day. That means it is
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important to learn how to negotiate more effectively. Most people hesitate to negotiate because
they lack the confidence. Develop this confidence by negotiating more frequently. Ask for
discounts from your suppliers. As a consumer, develop the habit of asking for a price break when
you buy from a retail store.
Negotiating is a way of life in some cultures. And most people negotiate in some way almost
every day. Apply these negotiation strategies and you will notice a difference in your negotiation
skills almost immediately.
Key Points:
1.
Negotiation Defined
Working to reach an agreement that is mutually satisfactory to both buyer and seller
Negotiation is a process
Ability to negotiate problems or objections is a most effective way to create value
73
2.
Negotiation: A Win-Win Strategy
Personal selling is not a we versus they process
If trust is strong,
negotiation becomes a
partnership to work
through, if not, negotiation
becomes combative
Seek to maintain long-term relationship
3.
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Customers may have concerns related to:
4.
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Common Types of Buyer Concerns
A need for the product
Product itself
Source of the product
Pricing
Timing
Need for Product
Conditioned response: I dont need the product.
Sincere need resistance a great challenge
Not convinced of your products benefits
Best way to overcomeprove your product is a good investment
74
5.
The Product Itself
Product not well established
Product will not be popular
Associates did not like the product
Present product/system is satisfactory
6.
Source of Product
Ways to overcome include:
7.
Identify how product solves problems
Superior benefits of your product
Illustrate profits from adding second line
Place trial order to evaluate merits
Recruit champions inside buyers firm
Stay visible and connected to client
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Price Concerns: Trained Buyers
Buyers trained in negotiation

o
Budget limitation tactic
Take it or leave it
Split the difference
75
8.
Price Concerns: Low Price Strategy
Transactional buyers seek low prices

o
Empowered salespeople able to apply various discounts
Downside, lower profits

and lower commissions
9.
Dealing with Price Concerns
Do clarify price concerns with questions
Do add value, stress service
Do not make price focal point
Do not apologize for the price
Do point out price/quality relationship
Do demonstrate difference between price and cost
Do not make concessions too quickly
10. Price Iceberg
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Price is only the tip of the iceberg; remind customer of value-added factors below tip
11. Price Versus Cost Example
Note how Canadas Bombardier positions its CRJ against Airbus
76
12. Negotiating Buyer Concerns
Know value of your offering
Prepare for negotiations
Understand the problem
Create alternative solutions
Find points of agreement
Know when to walk away
N
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E
13. Specific Negotiation Methods
Direct denial
o
Refute prospects opinion or belief
Be firm, not offensive, think win-win
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Indirect denial
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Acknowledge prospects as partly right
Feel-Felt-Found
I understand how you feel
Others have felt that way
Until they used the product and found it quite easy and reliable
77
14. Specific Negotiation Methods
Questions
o
Convert problem into need-satisfaction question
How would a 30 percent reduction in breakdowns affect your companys

profitability?
Superior benefit
o
Acknowledge prospect has valid concern and focus on superior benefit
Superior benefits should outweigh specific customer concerns
Discuss competitive advantages of your product
Demonstrations overcome buyer skepticism effectively
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Trial offer
o
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Demonstration
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Prospect tries product without purchase commitment
Third-party testimony
Neutral third-party testimony adds credibility
Almost never triggers client argument
Postpone method
o
Postpone answers to client concerns until later in dialogue
Explain why you want to postpone
15. Application: Digital Electronics
Go to a consumer electronics store and ask for help with laptop/notebook PCs
Raise a series of concerns and note how salesperson reacts
78
Price is too high
Heard that brand XYZ is bad
Maybe its not time to buy
: Closing The Sale And Confirming The Partnership

Topic Objective:
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Describe the proper attitude to display toward closing the sale
List and discuss selected guidelines for closing the sale
Explain how to recognize closing clues
Discuss selected methods of closing the sale
Explain what to do when the buyer says yes and what to do when the buyer says no
V
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Many entrepreneurs have little or no experience in outside sales. Finding new prospects and
explaining features and benefits the stock-in-trade of salesmanship can be difficult for an
entrepreneur who isnt sales-oriented. But inexperience can be crushing when it comes time to
close the sale. After all, even sales pros often have trouble closing the deal.
A customer might indicate they're ready by asking questions about the product or the buying
process: "How long would delivery take?" "What does that button do?" or "Is an upgrade
available?" Other signs include complaints about previous vendors and interested comments such
as "Really?" or "Good idea."
79
Key Points:
1.
Attitude toward Closing
Some closing methods can move the customer from indecision to commitment. When these
methods are used effectively, the prospect will not feel pressured.
Closing should be thought of as the beginning of a long-term partnership.
2.
Strategic Planning for Close
Review barriers to closing sale
Review closing guidelines
Prepare several closing methods
Plan to ask for order more than once
Practice the closing
3.
Actions During Close
Recognize closing clues
Focus on customers greatest interest
Handle tough points early
Avoid surprises
Keep prospect involved
Display confidence
Accommodate buyers communication style
Ask for order more than once
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4.
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Buyer Anxieties
Review the value proposition from the prospects view
80
Reluctance can be
due to:
5.
Loss of options
Fear of making a mistake
Social or peer pressures
Guidelines for Closing Sales
Focus on dominant buying motives
Longer selling cycles require multiple commitments
Negotiate tough points before close
Avoid surprises at close
Display confidence at close
Ask for order more than once
Recognize closing clues
6.
Specific Closing Methods
Trial close
Summary-of-benefits
Assumptive
Special concession
Multiple options
Balance sheet
Management
Direct appeal
Combination
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81
7.
Summary-of-Benefits Close
Reemphasize value-added buyer benefits
Thats $25 for each lunch, four conference rooms, and audio/visual support, plus our special
meeting package.
Can I make this
reservation for you?
8.
Assumptive Close
Subtle way to ask for decision, assuming customer will buy
Comes near the end of the presentation
Because this shipment can meet your timetable, lets go

ahead and place
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your order.
9.
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Special Concession Close
Extra incentive for acting now
Sample inducements
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Sale price
Quantity discount
Liberal credit plan
Use with care
10. Multiple Options Close
Present several options to customer
Steps:
82
Configure more than

one product solution
Stop when ample

selection presented
Remove less-appealing options or products
11. Balance Sheet Close
Outlines reasons to buy and not to buy
Engage customer in this process
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12. Management Close
Involve senior executives or sales manager
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Upper-level managers add value
Makes prospect feel important
13. Direct Appeal Close
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Ask for the order in a straightforward manner

o
Should not come too early
Gain prospects respect first
After asking,
remain quiet
14. When Buyer Says No
Learn to manage disappointment
83
When a sale is lost:

o
Make sure the deal is really dead, otherwise reopen the presentation
Review chain of events, identify weaknesses
Obtain customer feedback to improve
15. Facing Competition
Some buyers want to look at competing products/services
Do all possible to help
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customer make an
intelligent comparison
Stress areas where
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your product is superior
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Servicing The Sale And Building The Partnership
Opportunity Management: The Key To Greater Sales Productivity
Management Of The Sales Force

semester end date.
: Servicing The Sale And Building The Partnership

Topic Objective:
84
Explain how to build long-term partnerships with customer service
Describe current developments in customer service
List and describe the major customer service methods that add value to the partnership
Explain how to work effectively with customer support personnel
Explain how to deal effectively with complaints
N
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An organization is like a link in a value chain that connects the seller of raw materials or ideas to
the end-user of finished products and services. An organization receives products or services
V
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from suppliers, adds its unique value, and then provides enhanced products or services to its
customers. The customers add their unique value and supply even more enhanced products and
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services to customers one step closer to the end-user.
Customer partnership: Customer partnership is a shared journey to create a future for both
parties that is better than either could have developed alone."1 The customer influences every
aspect of your business and is the foundation of your organization's success. In today's turbulent
times of rapid and chaotic change, "no force is more grounding and stabilizing than a partnership
with customers."1 The term 'customer partnership' we take not so much in its legal definition of
co-ownership but rather in its sense of sharing in benefits, profits and losses of your company.
Customer partnership is more than "putting customers first", or finding mutually satisfactory
solutions to shared problems, or a dedication to excellence in every sale or service encounter. It
also requires commitment to forging long-term relationships that create synergies of knowledge,
security, and adaptability for both parties.
85
Key Points:
1.
Customer Service
Encompasses all activities that:
2.
Enhance or facilitate the sale and use of ones product or service
Take place during and after the implementation stage of the buying process
Building Long-term Partnerships with Service
Achieve successive sales via partnering/building the relationship
Respond to increased post-sale customer expectations
High cost of customer attrition
Keep current on developments in customer service
3.
Customer Service Developments
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Salespeople must spend more time monitoring customer satisfaction
Customer knowledge is key to improving customer service
Customer-friendly, computer-based systems enhance service
4.
Follow-Through
On assurances and promises made during sales presentation
Key to customer retention
5.
Common Post-Sale Services
86
Make credit arrangements
Schedule deliveries
Be present during
delivery
Monitor installation
Offer training
Provide price change information
6.
Prevent Post-Sale Problems
Perform diligent follow-up
Know shippers and installers
Know credit department
A delicate area
N
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for customers
7.
Follow-ups have two major objectives:
To express appreciationwhich enhances relationship
To determine if customer is satisfied
Poor service and lack of follow-up are common causes of customer attrition
8.
Follow-up Objectives
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Follow-up Methods
Personal visits
o
Value reinforcement
Telephone calls
E-mail messages
Letters or cards
87
Call reports
9.
Full-Line Selling
Suggest related products/services to customer (suggestion selling)
Done correctly, provides value-added service
Guidelines:
o
Plan during preapproach
First satisfy primary need
Thoughtful, positive suggestions
When appropriate, demonstrate
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10. Cross-Selling
Selling products not related to those already sold to established customer
Buyers like single-source convenience
Most effective when salesperson/customer enjoy true partnership
11. Upselling
Effort to sell better quality product
Works best when:
Established relationship existsbuilt on trust
Salesperson continuously qualifies prospect
Most customers want the right purchase over the least expensive
88
12. Partnership Building
Should encompass all key people

o
Receptionists
Technical personnel
Stock/receiving clerks
Management
personnel
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13. Handling Complaints
Let customers disclose feelings
Carefully listen to customer
Complaint may be real or perceived
Do not alibi
Share your view of problems cause
Decide on action to remedy
V
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: Opportunity Management: The Key To Greater Sales Productivity

Topic Objective:
Discuss the four dimensions of opportunity management
List and describe time management strategies
Explain factors that contribute to improved territory management
Identify and discuss common elements of a records management system
Discuss stress management practices
89
To maximize sales productivity, it's necessary to be able to efficiently find, research and pitch
well-qualified leads in the least amount of time. Finding and researching leads quickly means
you can spend less time at the computer and more time selling, while making sure leads are wellqualified ensures that you have a greater chance of closing. There are scads of programs and
services designed to increase sales productivity. But the real formula is simple - you just need
quality information and the tools to use it. For enterprises worldwide determined to increase
sales productivity, Factiva SalesWorks is the solution of choice.
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Key Points:
1.
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Increasing Sales Volume
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A salesperson can increase sales volume in two major ways. One is to improve selling
effectiveness, and the other is to spend more time in face-to-face selling situations.
2.
Opportunity Management
A four-dimensional process involving:
3.
Time management
Territory management
Records management
Stress management
Time Management
Time-consuming activities
90
On average, 60 percent of time spent on administrative duties and travel
Log keeping shows where time is spent, identifies time wasters
Time management
o
4.
Sound time management can lead to increased sales
Time Management Methods
Develop personal goals
Prepare daily to do lists
Maintain planning
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calendar
Organize selling tools
5.
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Goal-Setting Principles
Reflect on areas where change is desired
Develop written planwith steps
Modify your environment
Monitor behavior/reward progress
6.
Saving Time with Technology
Conference calls
Meetings in cyberspace (Web conference)
Some customers prefer telephone/e-mail contact
Cell phones/pagers
as timesaving tools
Electronic file
transfers
91
7.
Territory Management
Step 1: Classify Customers

o
Classify according to potential sales volume
Track current dollar amount and potential dollars
Realize a small amount of customers may provide a majority of sales volume
Step 2: Develop Route/Schedule Plan
Map territory/use smaller zones if large
Develop routing plan for a specific time frame
Schedule around customer needs
Establish tentative calls
Use 80/20 rule
8.
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Sales Call Plans
Action plan initiated by sales manager
Ensures efficient and effective account coverage
Plan discussed with sales staff
9.
Records Management
Some complain about paperwork time
Accurate and timely records are important
Facilitates closing sales and improves customer service
10. Common Record Types
Customer and prospect files
Call reports
Expense records
92
Sales records
11. Application: Computers
Most firms provide sales staff with portable computing power and sales management software
If necessary, use a database or spreadsheet program and create your own
PCs and PDAs allow you to increase selling time and enhance customer service
12. Stress
Refers to two simultaneous events:

An external stimulus (a stressor)
The physical and emotional responses to that stimulus:
Anxiety, fear, muscle tension, surging
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heart rate
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Too much stress unhealthy if unchecked!
13. Stress Management
Develop stress-free work environment
Maintain optimistic outlook
Practice healthy emotional expression
Maintain healthy lifestyle
14. Four Stress Moderators
Autonomy
Connectedness
Perspective
Tone
93
: Management Of The Sales Force

Topic Objective:
Describe the functions of a sales manager
List and discuss the qualities of an effective sales manager
Discuss recruitment and selection of salespeople
Describe effective orientation, training, and motivation practices
Develop an understanding of selected compensation plans
List and discuss criteria for evaluating sales performance
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Managing sales leads effectively and optimizing lead distribution across sales and marketing are
critical to achieving sales success. With Salesforces lead management tools you can track
prospect inquiries and seamlessly route qualified business leads to the right people so reps get
instant access to the latest sales prospects and leads are never dropped or lost.
An effective sales force strategy is critical to achieving sales targets and aligning the sales force
with the strategic direction of the firm. Sales managers must be able to craft strategy and
communicate it to the sales team in order to win the right kind of business and achieve growth
targets for the business.
Developing a Sales Force Strategy introduces the key success factors involved in creating a sales
force strategy and communicating it to sales-people. It helps managers develop a comprehensive,
prioritized business plan, including required strategic and tactical elements.
94
Key Points:
1.
Leadership
The process of inspiring, influencing, and guiding employees to participate in a common effort
Involves a series of skills that can be acquired through study and practice
People who rise to the position of sales manager must understand the difference between
leadership and management
2.
Sales Management
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The process of planning, implementing, and controlling the personal selling function
The sales manager plans, recruits, trains, budgets, develops compensation plans, and assesses
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sales force productivity
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Successful supervisory management personnel have certain behaviors in common
3.
Effective Leaders
Demonstrate the following:
Structureo
Consideration
Situational leadership
Test of character
Coaching for peak performance
4.
Structure
Evidence includes:
95
5.
Regular planning
Expectations clearly communicated
Prompt, firm decisions
Regular performance appraisals
Consideration
Evidence includes:
o
Regular and effective communication
Each salesperson treated as individual
Reward good performance often
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V
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96

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Principles of Professional Selling.

Describe contributions of personal selling to the information economy

Define personal selling discuss as extension of marketing concept

Describe the evolution of consultative selling

Explain how value-added strategies enhance personal selling

1. Definition of Personal Selling

Person-to-person communication with a prospect

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Matching products with needs

Viewed as a process that adds value

2. Personal Selling in the Information Age

An evolution from the industrial economy to the information economy

Began in the 1950s

New emphasis is information exchange rather than producing goods

Implications for personal selling

Advances occur in transportation and manufacturing

Strategic resources are capital and natural resources

Products and factories define the business

Sales success means meeting sales quotas

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Advances occur in transportation and manufacturing

Strategic resources are capital and natural resources

Products and factories define the business

Sales success means meeting sales quotas

4. Important Role of Personal Selling

Often the major promotional method

Firms invest in personal selling

Personal selling has evolved because:

Competition has greatly increased

Marketing era begins (early 1950s)

5. Evolution of Personal Selling

Salespeople as a source of strategic information on product/market/service

Consultative selling era (late 1960s to early 1970s)

Mass markets break into target markets

Emphasis on need identification

Information sharing and negotiation replace manipulation

Strategic selling era (early 1980s)

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Market niches require more planning

Equal emphasis on strategy and tactics

Product positioning vital

Partnering era (1990 to present)

Customer, not product, as driving force

Emphasis on strategies that create customer value

6. Evolution of Consultative Selling

Process that developed from the marketing concept, emphasizing need

Features of consultative selling include:

Customer is a person to be served, not a prospect to be sold

Two-way communication identifies (diagnoses) customers needs; no high-

pressure sales presentation

Emphasis on information giving, problem solving, and negotiation rather

Emphasis on service after the sale

Evolution of Strategic Selling

A Strategic Market Plan

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Outlines necessary methods and resources

Influences the sale of products

Serves as guide for strategic selling plan

7. Strategy and Tactics

Specific techniques, practices, and methods used in customer interaction

Carefully conceived plan needed to accomplish sales objectives

A prerequisite to tactical success