M330 SPIN Exam Study Guide
M330 SPIN Exam Study Guide BUS-M330
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This 5 page Study Guide was uploaded by Lauren Detweiler on Wednesday February 11, 2015. The Study Guide belongs to BUS-M330 at Indiana University taught by Dick Canada in Spring2015. Since its upload, it has received 342 views. For similar materials see Consultative Selling in Business at Indiana University.
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Date Created: 02/11/15
M330 SPIN Exam Study Guide Prof Dick Canada 0 9 Exam Structure Multiple Choice Implied or Explicit Feature Advantage or Bene t TrueFalse Dialogue Labeling Part 1 Four Stages of the Sales Call 1 Opening a Establish buyercentered purpose b Adapt to factors such as who set up the meeting how well you know the buyer time constraints etc c Parts of opening i Name ii Hypothesis selling iii Permission to ask questions sets up investigating stage II Investigating a Uncovering needs or getting a better understanding of the customer and their organization b The most important of all selling skills c This is the stage when the SPIN sequence of questioning is used SITUATION PROBLEM Finding facts information and background data about the customer s existing situation What equipment do you use now How many people do you employ here How old is this unit Research shows situation questions I Are used more in calls which fail I Are overused by inexperienced people Who bene ts from Situation Questions The Seller Should you stop asking Situation Questions altogether E I You cannot sell without them I Successful people don t as unnecessary Situation Questions About customer s problems dif culties or dissatisfactions Is your existing machine hard to use Do you have quality problems Are you satisfied with Research shows problem questions I Are used more in calls which succeed particularly if it s a small sale I Are asked more by experienced salespeople The ratio of Situation to Problem Questions asked by salespeople is a function of their experience I Experienced sellers ask a higher proportion of Problem Questions I In smaller sales level of Problem Questions was twice as high in calls that succeeded Less strongly linked to success in larger sales because the purpose is to uncover Implied Needs IMPLICATION NEEDPAYOFF About the effects consequences or implications of the customer s problems What e ect does that have on output Could that lead to increased costs Will it slow down your proposed expansion Take a problem that the buyer perceives to be small and built it up into a problem large enough to justify action I Can also work in smaller sales I Good predictor of success Research shows implication questions I Are strongly linked to success in larger sales I Build up customer s perception of value I Are harder to ask than Situation or Problem Questions A potential negative may make customers more uncomfortable with their problems Could cause buyers to feel negative or depressed About the value or usefulness of a proposed solution How would that help Why is it important to solve this problem What bene ts do you see Research shows that Needpayoff Questions I Are strongly linked to success in larger sales I Increase the acceptability of your solution I Are particularly effective with in uencers who will present your case to the decision maker Focus customer s attention on the solution rather than the problem They get the customer telling you the benefits I By doing this you don t invite objections Calls with a high number of Needpayoff Questions were rated by customers as positive constructive and helpful Needpayoff questions rehearse the customer for internal selling III Demonstrating Capability a Showing the customer that you have a solution and that it makes a worthwhile contribution to helping solve their problems FEATURE 0 Facts data or information about your products or services I Examples H o It costs 15000 g There s a veweek delivery 9 We have two machines in this range E I Research shows Features g Have a positive effect on small sales 3 Are neutral or unpersuasive in larger sales I Probable buyer response price concerns Low Impact ADVANTAGE TYPE A BENEFIT o Show how a product or service can be used or can help the customer I Examples which means it s cheaper to operate H The automatic feed will save you time g It s quieter than the competition s machine Q I Research shows Advantages E Have a positive effect on small sales but little effect a on larger sales 339 Have less impact late in the selling cycle 2 I Probable buyer response objection NOTE It never pays to offer an Advantage if you can go that bit further and offer a Bene t BENEFIT TYPE B BENEFIT o Show how a product or service meets an Explicit Need expressed by the customer I Examples You need immediate delivery We can order it B from stock 3 This energysaving circuit gives the economy a you re looking for H This will give you the faster speed you want 4 I Research shows Bene ts Have a strongly positive effect on sales of all sizes Are the most powerful statements you can make in larger sales I Probable buyer response agreement IV Obtaining Commitment a A behavior used by the seller which implies or invites a commitment so that the buyer s next statement accepts or denies commitment b Sophisticated buyers may interpret closing behaviors as arrogance or attempted manipulation can even be demeaning i Less likely to buy if closing techniques are used c Summary closing techniques ineffective when i The sale is large involving highvalue goods ii The customer is sophisticated ie a professional buyer iii There s a continuing postsale relationship w the customer d Set the right objectives i Closing in a simple sale has one of two outcomes order or nosale ii More major sales are more complicated FOUR POSSIBLE OUTCOMES IN MAJOR SALES Orders Customer makes a rm commitment to buy Advances An event takes place either in the call or after it that moves the sale forward toward a decision Continuations The sale will continue but the customer didn t agree on a speci c action to move it forward NoSale Customer actively refuses a commitment e Two characteristics of commitments proposed by successful salespeople i The commitment advances the sale Result the sale will move forward in some way ii The commitment proposed is the highest realistic commitment that the customer is able to give Successful sellers don t push the customer past achievable limits f 3 Steps in Commitment Stage i Check for key customer concerns don t make a fool out of yourself attempting to close the sale when there s something on the other person s mind ii Summarize the agreed upon benef1ts iii Request an appropriate commitment Part 11 Customer Needs I What is a Need a Any statement made by the buyer which expresses a want or concern that can be satis ed by the seller i For the purposes of this book the term need includes both the needs and the wants that the buyer expresses b How Needs Develop i First sign of a need slight discontent or dissatisfaction ii Existence of dissatisfaction means it s likely to grow evolving into clear problem difficulty or dissatisfaction iii Finally problem is translated into a want desire or intention to act iv In small sales stages can be almost instantaneous in larger sales process could take months or years II Implied and Explicit Needs a Implied needs statements by the customer of problems difficulties and dissatisfactions b Explicit needs specific customer statements of wants or desires c Successful people treat implied needs differently than explicit needs i In small sales the more Implied Needs you uncover the better your chance of getting the business ii As sale becomes larger relationship between Implied Needs and success diminishes iii What matters is what you do with the Implied Needs after you ve uncovered them III The Value Equation a If the seriousness of the problem outweighs the cost of solving it there is a basis for a successful sale i Remember in larger sales cost is not measured only in terms of money ii Buyer can see significant risks andor hassles can t be measured monetarily as adding to the cost side of the value equation IV Explicit Needs and Success a In a study Explicit Needs were twice as high in the calls that succeeded b As sale grows larger it becomes more important to obtain Explicit Needs not just Implied Needs c In smaller sales both types of needs are predictors of success d Success in larger sales depends on how Implied Needs are developed i Converted by questions into Explicit Needs
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