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Study Guide for Exam 2- COMPLETE ANSWERS

by: Eric Mendelson

Study Guide for Exam 2- COMPLETE ANSWERS MKTG 451 300

Marketplace > Towson University > Marketing > MKTG 451 300 > Study Guide for Exam 2 COMPLETE ANSWERS
Eric Mendelson
GPA 3.68

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About this Document

These are the notes used on Professor Peev's 2nd exam. I had him in Spring 2016 and these notes helped me get A's and B's.
Topic: Sales Strategy
Dr. Plamen Peev
Study Guide
Prospecting, SalesObjections, SalesDialogue
50 ?




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This 8 page Study Guide was uploaded by Eric Mendelson on Sunday May 22, 2016. The Study Guide belongs to MKTG 451 300 at Towson University taught by Dr. Plamen Peev in Spring 2016. Since its upload, it has received 22 views. For similar materials see Topic: Sales Strategy in Marketing at Towson University.


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Date Created: 05/22/16
Chapter 5-Strategic Prospecting and Preparing for Sales Dialogue  The importance and challenges of prospecting o Low satisfaction o Competition o Economic fluctuation  People lose customers because o Market conditions change o Go out of business o Acquired by another firm o Competitive activity or dissatisfaction with product, salesperson, or selling firm o Fear of rejection  Buyers won’t see salespeople because… o Never heard of salespersons firm o Already bought product category- no current need o Buyers have own deadline on other issues, not in receptive mood to see salespeople o Buyers constantly getting calls from salespeople-no time to see them all o Gatekeepers in any organization screen their bosses calls and sometimes are curt/rude  B2B prospecting o Looking for lifetime customers o Do prior research  B2C prospecting o Many transactions are one-time o Less emphasis on pitch  Strategic Prospecting Process- A process designed to identify, qualify and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.  Stages o Generating Leads- Organizations/ individuals who might possibly purchase the product/service offered. Independent financial advisors. Should be managed. Generated from internal and external sources. o Determining Sales Prospects- Qualifying sales leads. Evaluate leads to determine who is a true prospect. A sales prospect:  Has need for product service  Has budget/financial resources for it  Has authority to make purchase decision  There is a “sales funnel” for criteria met o Qualifying (B2B)-What is the budget? Who has the authority to buy? Do they have a need for our product? o Qualifying (B2C/Retail)-Send message at right time. Focus more on product to ensure accuracy. o Prioritizing prospect- Create ideal customer profile and then analyze sales prospects by comparing them with ideal customer profile. Another approach is to identify one or more criteria, evaluate sales prospects against criteria and rank prospects A,B,C categories. o Preparing for Sales Dialogue-Additional info needed for success.  Prospecting Methods o Cold Canvassing-Salespeople contact a lead unannounced without any information about them. o Cold Calling-Knock on people’s doors/phone calls-mostly ineffective o Referrals- Sales lead a customer provides, get permission to use referral’s name. o Introduction-Writing a letter or making phone call to introduce salesperson to prospect.  Networking o Salespeople join civic and professional organizations to build relationships. o Centers of Influence- Influential people in the community for salespeople and potentially providing help in locating prospects. o Noncompeting salespeople- (BWI) Purpose of this organization is for members to generate prospects for each other. o Electronic Networking- Sites that allow people to obtain information about prospects.  Company sources o Company records- Salespeople can review company records to identify previous customers who have not placed an order recently. o Advertising Inquiries- Sales leads generated from company advertising efforts. o Telephone Inquiries- A source of locating prospects (Inbound= Prospects calls company for information. Outbound= salesperson contacts prospect). o Trade Shows- Events where companies set up booths that identify each company and offerings, staffed with salespeople who demonstrate products and answer questions. Help generate leads. o Seminars- Presentation salespeople give to generate leads and provide information to prospective customers who are invited to the seminar by direct mail, word of mouth, or advertising.  Published Sources o A variety of sources in print & electronic form o Directories- Inexpensive, convenient means of identifying leads. Provide contact and other information about many companies/individuals. o Commercial Leads List- Lists designed to focus on virtually any business or individual (simple listings of names to full profile).  Developing Strategic Prospecting Plan o Allocate time- Establish schedule for prospecting activities o Set goals- Establish daily, weekly, monthly quotas for acquiring new prospects. o Keep records- Track results using different methods. o Stay Positive- Develop confidence. o Evaluate- What worked? What didn’t work?  Gathering information on buyer o What type of business are we dealing with?- Directory o What market does company sell?- Annual reports o Where does prospect currently buy?-Ask for information  About buyer o Name, title, contact information o Educational and work background o Community/organizational involvement o Hobbies/ Interests o Communication style Chapter 6-Planning Sales Dialogue and Presentations  Sales Call- An in-person meeting between a salesperson/team and one or more buyers to discuss business.  Sales Dialogue- Business conversations between buyer and seller that occurs as salespeople attempt to initiate, develop and enhance customer relationships. Should be customer focused & have clear purpose.  Sales Presentation- Comprehensive communications that convey multiple points designed to persuade customers to make purchase. Focus on customer value, only takes place after salesperson has completed ADAPT process.  Sales Communication Formats o Canned presentations- Scripted calls, memorized presentations, automated presentations. Complete and logically structured. Do not vary. o Written proposals- Complete self-contained sales presentation often accompanied by sales call before & after proposal is submitted. Thorough customer assessment should take place.  Why they fail o Customers don’t know seller o Proposal does not follow set format o Executive summary is not geared towards customers’ needs o Another customer’s name o Proposal not convincing o Grammatical errors o Does not address key decision criteria o Value proposition not persuasive o Sellers company jargon is used  Components o Executive Summary- Demonstrate salesperson’s understanding of customer’s needs and relevance of proposed solution. Build desire to read full proposal. o Customer needs and proposed solution- Situation analysis should explain salesperson’s understanding of customer’s situation, problems and needs. Recommended solution is presented on how solution addresses buyer’s problems and needs. o Seller Profile- Information customer wants to know about selling company. Emphasis on company’s capabilities. o Pricing and sales agreement- Ask for order by presenting pricing information and delivery options. o Action & Timetable- Make it as easy as possible for buyer to make positive purchasing decision.  Sales Dialogue Template o Customer value proposition- A statement of how the sales offering will add value to the prospect’s business by meeting a need or providing an opportunity. o Buying Motives- What is most important to prospect?  Rational- Economics of situation (cost, profitability, quality, service offered, total value perceived by customer).  Emotional- Motives (security, status, need to be liked. Difficult for salesperson to uncover motives. o Features- A quality or characteristic of a product/service that is designed to provide value to a buyer (factual statements). o Benefits- Added value or favorable outcome derived from features of product or service seller offers. o Anticipating questions- If I were the buyer what would I want to be certain about before I make a purchase?  Engaging customer-request an appointment o Give prospect reason why appointment should be granted o Request a specific amount of time o Suggest specific time o Make prospect feel important o Better chance you receive undivided attention Chapter 7-Sales Dialogue: Creating and Communicating Value  Effective Sales Dialogue o Identify, diagnose and clarify unsatisfied needs or problems and show buyer how much better situation would be with product. o Planned and practiced by salespeople o Encourage buyer feedback o Focus on creating value for buyer o Present value in interesting and understandable way o Engage and involve buyer o Support customer value through objective claims  Role of check-backs (seeking feedback from buyer) o After specific feature-benefit sequence in order to confirm benefit and better assess prospective buyer’s level of interest. o Following response to an objection in order to evaluate to which salesperson handled problem.  Customer value- strive to communicate to buyer o How buyer’s needs will be met or how opportunity can be realized as a result of purchase. o How product features translate in a functional sense into benefits for the buyer. o Confirmed benefits- Benefits buyer has indicated are of interest.  Sales Dialogue o Verbal Support  Voice characteristics- pitch and speed of speech  Examples and anecdotes- Examples are a brief description of specific instance to show features and benefits. Anecdotes are example in form of a story.  Comparisons and analogies- Comparisons are statements that point out similarities between two points. Analogies are special form of comparison explaining one thing in terms of another.  Sales Aids- The use of printed and electronic materials and product demonstrations to engage and involve buyers. o Capture buyer’s attention o Generate interest in recommended solution o Make presentation more persuasive o Enhance professional image  Visual Materials o Hardcopy- Printed materials, photographs, illustrations, brochures, pamphlets, catalogs, articles, reports. o Electronic- Slides, videos, PowerPoints, electronic multimedia, iPad o Tips for preparing  Visual materials should be kept simple  Bullet points to emphasize key points  Same layout and presentation for presentation  Let buyer complete sentences/phrases  Leave plenty of white space o Pros of using visual materials- Easy to produce, inexpensive, present realistic portrayal of product. Diagrams show most important details of product, charts and graphs show trends and relationships. o Cons- Reluctant to make purchase because their employees will thank it’s too hard to learn software. Must explain it well. Divert attention from sales.  Product Demonstrations o Tips and guidelines- Have buyers use product instead of salespeople demonstrating. Bring buyer to another site for demonstration. Good working order. Practice. Confident.  Supporting Product Claims o Statistics- Facts that lend believability to product claims o Testimonials- Statements from satisfied customers of the selling organization’s products and services. Build trust and confidence. o Case histories- A testimonial in a story or anecdotal form.  Tips for sales dialogue involving buying teams o Arrival- Arrive and set up before buying group o Eye contact- Make periodic eye contact with each member of buying group o Communication- Solicit opinions and feedback from each member of buying group and avoid taking sides. Chapter 8- Addressing Concerns when earning commitment  Sales resistance/Objection- Anything the buyer says or does that slows down or stops the buying process.  Reasons why prospects raise objections o The salesperson has failed to prospect and qualify properly. Prospect fails to recognize a need.  Prospect wants to avoid sales call- create more work for prospect  Objecting is a matter of custom- never buy on first call, must establish trust  The prospects resist changes-like the way they are currently doing business  Prospect lacks information  Prospect fails to recognize a need  Product/Service or company issue  Categories of objections o Need- Buyer has recently purchased or does not need for product category (may be out of budget/time). o Product/Service- Buyer may be afraid of product reliability, may be afraid of late deliveries, slow repairs. o Company- Buyer is intensely loyal to present supplier. May not heard of your company. o Price- Buyer has limited budget. o Time- Buyer needs time to think it over.  Strategies to deal with objections o Need- Stimulate awareness through effective questioning (SPIN, ADAPT) and presentation of key features & benefits may peak buyer’s interest. o Product/service- Improve fast finding during early stages of sales cycle (offset perceived downsides). Emphasize features & benefits that add value. o Company- Evaluate validity of concern (Have a 3 party reference). Highlight competitive strengths. o Price- Present evidence showing how value exceeds cost o Time- Be sensitive (avoid being pushy). Present meaningful reasons to move forward in sales process.  LAARC Method for handling buyer resistance o Listen- Concern of buyer, don’t interrupt o Acknowledge- Their problem, show you understand, don’t jump to defensive response o Assess- Ask questions, gives you time to think o Respond- Based on understandings, there can be different responses o Confirm- Concern has been addressed to satisfaction of buyer  Other techniques responding to objections o Forestall- Address objection before prospect brings it up o Direct Denial- A response (sometimes harsh) that prospect is wrong o Indirect denial- Softening the blow when correcting a prospect’s information o Translation/Boomerang- Turn a reason not to buy (source of objection) into reason to buy o Compensation- Counterbalance the objection with an offsetting benefit o Question- Ask the buyer assessment questions to gain a better understanding of what they are objecting to o 3 party reinforcement- Use opinion/data from 3 party to help overcome objection and reinforce salesperson’s points o Feel-Felt-Found- Salesperson relates that others actually found their initial opinions to be unfounded o Coming-to-that- Salesperson tells buyer that he/she will be covering objection later in presentation  Gaining Commitment or Closing-culmination of selling process o Looking for commitment signals. A prospect…  Makes positive statement about product  Asks who else bought it  Asks about price, delivery, installation, dates, service  Asks about methods of payment  Begins to study/handle product  Appears more relaxed  Interacts more intently with salesperson  “That will get the job done”  “I didn’t realize you delivered everyday”  “Price is lower than I thought”  Trial Commitment questions- designed to determine a prospects reaction with forcing final decision (should be open-ended) o What do you think about what we’ve discussed? o Do you see how this will help your organization?  Recent techniques to earn commitment o Direct commitment- Simply ask for order o Legitimate/Alternative choice- Give the prospect a limited number of choices o Summary commitment- Summarize all the confirmed benefits to which there has been agreement (reminds prospects) o T-Account/Balance sheet commitment- Summary close on paper. T- Chart to determine pros and any cons o Success story commitment- Salesperson tells a story of a business that successfully solved a problem by buying his/her product  Traditional techniques to earn commitment o Standing-room-only-close- Puts a time limit on client in attempt to close (prices are only good until tomorrow) o Assumptive close- Salesperson assumes agreement has been reached. Salesperson gives buyer pen and paper o Fear or emotional close- Salesperson tells story of something bad happening if purchase is not made (example: life insurance). o Continuous yes close- Principle saying yes gets to be a habit. Salesperson asks number of questions, formulated so prospects say yes. o Minor points close- seeks agreement on relatively trivial issues associated with full order (payment: cash or credit?)


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