Exam notes for sem 2 2013 Media Buying and Sales Nego.
Exam notes for sem 2 2013 Media Buying and Sales Nego.
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This 22 page Study Guide was uploaded by Jade Notetaker on Saturday October 10, 2015. The Study Guide belongs to at Nanyang Polytechnic taught by Mr Azhar in Fall 2013. Since its upload, it has received 81 views. For similar materials see Media Buying and Sales Negotiation in Communication at Nanyang Polytechnic.
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Date Created: 10/10/15
Personal selling person to person communication with a prospect process of developing relationships discovering needs matching products with needs communicating benefits viewed as a process which adds value Broad concept of product Product meaning information services ideas issues hard goods What is the main product they offer NISSAN BMW Nike CNA CNN Value added selling improvements within the sales process that enhances customer expenence The Marketing Mix a company must determine how a combination of these elements can result in maximum customer satisfaction Product Place Price Promotion Important role of Personal Selling It s often the major promo method Firms invest in it Evolution of consultative selling Transactional Selling process for the buyer interested in price and convenience Consultative selling process developed from marketing concept need identification Features of consultative selling I Customer is a person to be served not a prospect to be sold 2 Two way comm identifies customer s needs no pressurising sales presentation 3 Emphasis on info giving problem solving and nego no manipulation 4 Emphasis on service after the sale Strategy carefully conceived plan to accomplish sales objectives Tactics specific techniques methods used in customer interaction STRATEGICCONSULTATIVE SELLING MODEL buiding a quality relationship Step I develop personal selling philosophy adopt marketing concept vaIue personal selling assume the role of a problem solver 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 become a product expert seII benefits not features configure value added solutions Step 4 develop a customer strategy understand the buying process understand buyer behaviour develop prospect base Step 5 develop a presentation strategy prepare objectives develop a presentation pIan provide outstanding service No means independent of each other lt Strategic alliances Formed by companies that have similar business interests and thus aain a mutual competitive advantaae GOAL is to achieve a marketplace advantage by teaming up with another firm Value Creation Value added selling creative improvements that enhance customer experience Value added selling examples Hybrid cars a mix of gas and elecfric power Value of fhe producf is fhe same moves person from A fo B Value add in differenf ways fuel saving less pollufion as if runs more on elecfricify Emofional infelligence if39s fhe capacify or moniforing our own feelings and of ofhers for mofivafing ourselves Developing a relafionship sfrafegy l Relafionships add value Cusfomers perceive fhis when fhey feel comforfable wifh fhe relafionship fhey have wifh fhe salesperson fraifs fo have honesfy accounfabilify sincere concern for cusfomer welfare 2 Parfnering fhe highesf qualify selling relafionship selling is a process if emphasises building a relafionship relafionship is builf on shared values bofh commif fo same vision salesperson moves from selling fo supporfing 3 Relafionship sfrafegies focus on 4 key groups cusfomer secondary decision makers company supporf sfaff managemenf personnel 4 Tailoring fhe relafionship sfrafegy Transacfional selling process fhaf serves fhe buyer primorin inferesfed in price and convenience relafionship sfrafegy secondary Consulfafive salesperson lisfens defines problems and solves Sfrafeaic alliance build relafionship wifh several people Winwin philosophy Cusfomer safisfacfion is primary Adopfing win win is fhe firsf sfep in developmenf of relafionship sfrafegy Bofh fhe buyer and seller come ouf of fhe sale wifh besf inferesfs served Help ofhers solve fheir problems Fix whaf caused fhe problem make life good for bofh parfies Verbal and nonverbal sfrafegies Firsf cusfomer confacf crifical quick superficial judgemenfs made fhese impressions can facilifafe or disfracf fhe image a salesperson projecfs can influence fhe cusfomer s feelings abouf fhem Nonverbal messages Greafer impacf fhan verbal messages Make sure verbal and nonverbal messages are consisfenf Communicationsfyle Your sfer is fhe you fhaf is on display everyday fhe paffern of behaviour ofhers see Communicafion sfyle bias lf s a sfafe of mind Mosf frequenf form of bias Nof commonly undersfood Develops when we come info confacf wifh someone wifh a differenf sfer fhan our own Communicationsfyle principles don f need all 1 Individual differences These differences exisf and are very imporfanf each person displays individual array of verbal and nonverbal characferisfics 2 Sfyle as a way of fhinking and behaving A preferred way of using one s abilifies Abilify how well you can do somefhing Sfyle how you like To do if 3 Sfyle fends fo be sfable over fime Based on heredify and environmenfal facfors Our sfyle fends To remain rafher consfani 4 There is a finife number of sfyles Mosf people display one of several behavioural clusfers we can offen label someone s sfyle 5 Gef in sync wifh sfyles of ofhers Sfyle differences can be source of fricfion Develop an abilify fo adapf fo anofher person s sfyle Adapfive Selling If s defined as alfering sales behaviour in order fom improve communicafion wifh cusfomer Describes Training programs fhaf encourage salespeople fo adjusf fheir comm sfyle fo accommodafe sfyles of Their cusfomers Improving relafionship skills 3 goals 1 undersfand your own preferred communicafion sfyle 2 develop greafer undersfanding amp appreciafion for differenf sfyles 3 manage selling relafionships by adapfing sfyle sfyle flexing CONTINUUM sfyle Mode ZOHGS GXCGSS ZOHGS High sociability Excess Zone Zone 2 Supportive Zone 1 LOW High Reflec W Low sociability Infensify zones Dominance confinuum know whaf They re like Low dominance High dominance Cooperative Like to control Let others control Initiate demands Low in assertiveness More aggressive Sociability continuum low High Control feelings Express feelings Prefer solitude Prefer interaction More reserved More outgoing More formal More informal emotive style traits appears quite active talltes social initiative encourages informality expresses emotional opinions director appears quite busy may give the impression of not listening displays rather serious attitude likes to maintain control reflective controls emotional expression displays preference for order tends to express measured opinions seems difficult to get to know supportive appears to be quiet and reserved listens attentively tends to avoid use of power malltes thoughtful decisions in deliberate manner minimising communication style bias 0 Salespeople often focus too much on the content and not enough on delivery of sales 0 One must work with people from all four quadrants 0 Become highly adaptable o It can be a barrier to sales success Achieving Interpersonal Versatility o Versatility describes one s ability to minimise communication style bias 0 Adapting to the customer s preferred style can enhance sales performance 0 Intensity zones strength weakness paradox Selling to he might do a Q I need to identify who I m gonna sell to emotives Directors Be enthusiastic Keep business like Don t be too stiff and formal Be efficient time disciplined organised Take time to establish relationship Identify their goals Maintain eye contact Ask questions and note responses Be good listener reflectives Supportives Use thoughtful well organised approach Take time to build the relationship Present info in deliberate manner Listn carefully to their opinions amp feelings Provide documentation Provide assurances for their views Never pressure for quick decisions Have patience give them time to comprehend ProducT sTraTeqv definiTion iT s a well conceived plan ThaT emphasises becoming a producT experT selling benefiTs confiaurina value added soluTions Examples of brands and Their producT sTraTegy Nike They do ego focused branding Their sTraTegy is cenTered on building The cusTomer s ego amp posiTioning The brand as Those who achieve greaT Things MacDonald s fasT convenienT and over The years added The concepT of healThy and more naTural elemenTs by adding salads fruiTs To The menu ConTinues To broaden producT porTfolio by offering high aualiTy coffee STarbucks creaTed an affordable luxury people could share and enjoy a cuppa wiTh friends RighT marllteT segmenTaTion The company has sTayed wiTh The upper scale of The coffee marllteT ExecuTion focuses on iTs original producT bundle good coffee aualiTy service nice environ lnnovaTive producTs amp lasle China expansion SoluTions aT mosT 3 examples Are muTually shared answers To recognised cusTomer problems Are more encompassing Than specific producTs Provide measurable resulTs Require a greaTer efforT To define and diagnose The cusTomer s problems Add value added approachbenefiT V39gt0 39 Explosion of producT opTions more Than 30000 consumer producTs Turned ouT each yr Tailoring The producT sTraTeqv This should be Tailored To The cusTomer s buying needs PRODUCT CHARACTERISTICS 3 dn3dctional Consultative a 0 Standard or generic items 0 Hidden features 0 High cost importance 0 Well understood Differentiated choices 0 Limited substitutability 0 Easily substitutable Customizable ProducT configurafion lT refers To cusTomer s producT selecTion process Shows how differenT parTs of your producT mix can combine To solve The cusTomer s problem As a salesperson you need To know your producT company policies compeTiTion ProducT informaTion cafegories whaT sellers need To know DevelopmenT Qualify Be familiarwiTh producT hisTory Qualify conTrol involves measuring 1 2 3 4 against standards Extensive sales force training is a key element of quality control Know stages of product testing Linlt key features and customer needs Product development and quality improvement processes Performance data and specifications This is what most clients are interested in sales person must be prepared to answer performance related questions data often critical when customer compares various products Maintenance and service contacts Provide service related info in proposal andor at time of sale understand customer s service and maintenance requirements customised service agreements add value Price and delivery Clients expect salespeople to be well versed in price and deliver policies Giving salespeople price and delivery decisive power yields strong position Price objections often common barrier to closing the sale Know your company Salespeople are selling their company as much as the product blah Know your competition Knowing strengths and weaknesses of competition lets you emphasise your benefits Prospects also raise questions about competition be prepared to answer Handling competition 1 Avoid referring to the competition during sales presentations 2 Never discuss competition unless you have your facts straight 3 Avoid criticizing the competition 4 Be prepared to neutralise competitor proposals by adding value to yours Sources of product information Product literature catalogues websites Plant tours Internal sales and sales support team Customers The product itself Trade publications Feature is facts or characteristics of your product or service Benefit is whatever provides the customer with a personal advantage or gain General benefits Specific benefits Bridge Statements Transitional phrases linking a feature statement to a benefit statement Sample This product is nationally advertised feature which means you will benefit from more pre sold customers gt best method for presenting benefits to customers Producl selling strategies Positioning involves decisions and ocTiviTies ThoT ore meonT To creoTe and keep 0 concepT of The company s producT in The cusTomers IT s how you wonT your cusTomer To Think and feel obouT your brand obouT you and your compeTiTion Brand Framework Brands go from givingselling products to giving meaning to Starbucks Products can be copied Differenliofion refers To seporofinq yourself producT from your compeTiTors IT is The key To building and mdianining C compeTiTive advonfoge Produclselling model Tod39s roduct Toda39s salesereon Meets and exceeds Acts as a partner expectations 39 More courteous and Better quality tmstworthv Larger selection quot More knowledgeable quot Newproduct quot More understanding Improvements at customers quot Provides service atter the sale Todas com Acts as a team to provide Delivery and installation Orientation and training Quick response times Credit options Customer service Producl Life Cycle sloges InTroducTion GrowTh MoTuriTy Decline ProducT posiTioning opTions i PosiTion new vs esToblishedold producTs 2 PosiTion wiTh price sTroTegies 3 PosiTion wiTh value added 30 1 NEW VS OLD Nature and extent of each stage in product life cycle determined by 0 product s advantage over other substitutes o product s benefits and importance of needs met by product 0 competitive activity 0 changes in tech fashion andor demographic Productselling strategies forpositioning Over time Mature and wallaetahliehed predueie New and emerging preduete Pre aeerae f g arm array Pre aeerae faa I liteureter HEW levele ef emeetatiene Emenaaiae brand e39lueerier ityr K Strange habitje Emphaaiae G mpa y euperierity Eetahlieh neer etanelaree Paint eul unique featuree Build deaire fer areduet Preeide eutetanding euetemer eereiee Feeue en meeting new markete Fame en auetaining eaieting market enare 2 selling products with a price strategy 0 low price emphasis o consequences of low price tactics o e commerce impact on pricing 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 Tradefunctional discounts given to wholesalers for special services Consequences of low price tactics o hiahlow involvement buyers high emotional involvement with brand Low involvement buyers focus on price 0 importance of aualitv role of price quality relationship in sale importance of service many buyers particularly business to business ranlt service above absolute price E commerce and Price Transactional orientation online sales persons mostly transaction oriented little value added Buyers often well informed online buyers visit a number of websites Addina value again adding value is super important 3 valueadded selling 0 Increase service and courtesy o Prompt deliveries more innovations 0 value added approaches lead to a unique niche and competitive edge The ToTal producl concepl Potential product Value added product Expechd pmdmt Product An undersTanding of The 4 possible producTs is helpful Salespersonvs 1 when The salesperson kquot quot quot d9quot 39 develops a presenTaTion for Mutually discovered a quot specific Types of cusTomers possibilities Four producT dimensions 1 Generic producl Basic producT you re selling describes producT caTegory eg hoTeIs MP3 players insurance every hoTeI 81 offers guesT rooms meeTing rooms and oTher basic hoTeI services 2 Expecled producl EveryThing ThaT meeTs The cusTomer s minimal expecTaTions eg every hoTeI 81 offers noT only guesT rooms buT The rooms are clean and spacious 3 Valueadded producl Salesperson offers cusTomers more Than They expecT Eg every hoTeI 8i recalls your newspaper preference wake up Time and ThaT you require wireless inTerneT access 4 Polenlial producl WhaT remains To be done whaT is possible anTicipaTing The cusTomers fuTure needs Eg every hoTeI 8 plans To offer compIeTe office supporT services prinTing faxing desltTop compuTer Value crealion for TransacTionaI buvers Involves emphasis on eliminaTing cosTs avoiding delays ConsuITaTive buyers Involves cusTom Tailored soluTions To deliver more real benefiTs STraTeaic alliance buyers Requires leveraging The full asseTs of The company invesTmenTs go well beyond The sales force DefiniTion of CUSTOMER STRATEGY A carefully conceived plan ThaT resuITs in maximum cusTomer responsiveness major Thing of This sTraTegy is To achieve a beTTer undersTanding of The cusTomer s buying needs and moTives Consumer vs Organisalional Buyers Consumer is The buying behaviour of individuals and households who buy goods and services for personal consumpTion Business organisational refers to the organisations that buy goodsservices for use in the production of other products and services that are sold rented or supplied to others Differences between them Consumer Buyers Oygan izational Buyers 0 Purchases for individual Purchases made for some purpose or househOId consumption other than personal consumption 0 Decisions usually made by individuals Decisions frequently made 0 Purchases often made based by several people on brand reputation or personal 0 purchases made according recommendations with little to precise technical specification 0r 0 PFOdUCt expertise based on product expertise 39 PurChaseS based primarily on 0 Purchases based on primarily emotional responses to product rational criteria or PromOtlons o Purchasers may engage in lengthy 0 Individual purchasers may make decision process timequot dec39s39ons 0 Products often complex classified 39 PI39OductSZ consumer QOOClS based on how organizational customers and services for individual use use them Types of consumer buyina situations Habitual buying situations where consumer involvement CI is none Eg shampoo stationery Varietyseeking situations where CI is low Eg cookies we don t know how good it is Complex situations where CI is high Eg high price items risky buying a car laptop Types of oraanisational buyina situations 0 Newtask buy Salespeople rely on consultative selling skills 0 Straight rebuy Salespeople constantly monitor satisfaction 0 Modified rebuy Salespeople can provide serviceanticipate changes Steps in the buying process know in order Evaluation Manon of gt or gt Purchase In ammation solutions problems Need awareness Salesperson can create value by determining problems and identifying solutions Evaluation of solutions Salesperson can create value by providing useful information Resolution of problems This stage is where the customer has resolved to do something Purchase Salespeople create value by arranging financing or supervising delivery and installation Implementation Value creation involves timely delivery superior installation accurate invoicing or follow up contacts by the salesperson Basic need MASLOW From bottom to top of pyramid Physiological gt Security gt Social gt Esteem gt Self actualisation Understanding Buying Process Transactional buyers Salespeople can eliminate any unnecessary costs or delays Consultative buyers Salespeople focus attention on needs awarenesshelp cust evaluate solutions Strategic Alliance buyers Most important is the study of the proposed partner There is a need to explore mutual benefits Buyer Resolution Theory Why should I buy need What should I buy product Where should I buy source What is a fair price price When should I buy time Group influences 1 Role expectations associated with position 2 Reference groups categories of people you see yourself belonging to 3 Social class group with similar values interests lifestyle 4 Culture influences of group with common language environment subculture those who behave in a certain way Perception Customer need formation Facts are negotiable Perception is rock solid Selective attention We tend to screen out certain messagesinfo overlaod Buyers conditioned by social cultural background amp need to use various selective process Salesperson should encourage client to discuss perceptions of product Buying Motives A buying motive is an aroused need drive or desire that stimulates behaviour to satisfy it Four basic motive types Emotional Rational Patronage Product Acts due to passion Acts on reason or Buy from a Buyer believes one or sentiment judgement particular firm product is superior to others Preferences for specific brands quality price designengineering Past experience positive Relatively free of emotion Emotional appeals common Relevant elements superior service product selection competent sales Salespeople gather interpret and disseminate customer specific If two products are identical the salesperson who connects has the I advantage I information I staff I I 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 Importance of prospecting why does customer attrition drop People move Die Bad service Like the product so much and it39s good so they don39t need another one Don39t like the product Customers move firms go out of business sales lost to competition Girard s FERRIS WHEEL Supply Loss Telemarketing Relationship between direct mail winner and eeleepereen Busterner m and advertising deterieretee Referrals Friends and Web sites and H f D m f t acquaintances computerized mess 339 quotm EB ELIE l39 Ef39 databases HEW buyer buys Euetbrner bee bnlv 90quot calling fran enbther source a p i39 pggl d Directories Trade publications acquisitions vane Figstemehr neeele and trade shows mergers 5 WEE EFEUSE at new teebnelbe Referrals word of mouth prospect recommended by current satisfied customer or one familiar with productservice endless chain ask contact who else could benefit from product referral organisations facilitate networking Eg friends family opinion leaders Directories Trade showpublicity Telemarketing Direct response sales letters Website Computerised databases Cold calling Networking Qualifying Prospects Key Time saving criTeria Does The prospecT need my producT Can prospecT make The buying decision Can prospecT pay for The purchase Will anyone close The sale Organising ProspecT lnformaTion ProspecT as an individual ProspecT as a biz rep ProspecTing 8 sales forecasTing plans prepare a isT of prospecTs forecasT poTenTial sales volume for each new accounT by producT carefuy plan The sales rouTe To minimise Time and cosT ChapTer 9 MEDIA PLANNING STRATEGY Media planning This process isn T easy OpTions for iT include a oT such as TV newspapers radio magazines and ouT of home OOH media like oquoor ads billboards There are also inTerneT opTions ilte ThaT and inTeracTive media direchy marlteTing and promo producTs Many companies have realised The imporTance of a media sTraTegy They focus on The inTegraTion of creaTiviTy and media as well as using muTipe media vehicles To achieve an opTimal impacT I i A series of decisions ilnwelllvilng the delllivery39 e f l messages te audiences Media Planning Gcallls to lbe attained Ilsa r the media strategy Media objectives and pmgram l Decisions on how the media objectives can be l attained Media Strategy Media Broadcast media Publications such as inle39wspapers magazines direct Imailll outdoor etc Print media MEdla vemc39e The specific carrier within a medium categorer Reach N0 of di lTerent audience melmbers exposed at least once in a given time period The potential audience that Imight receive the coverage message tlhlreugh tlhle 1wellhiicllle Frequency analysis strategy plan strategy plan I IIVIeasurement Insufficient I Setting media objectives Effectiveness Information I Determining media strategy I Problems in Media I Selecting broad rnecllia classes I Planning I Selecting media within class I Developing the ilMedIia iPlani Media planning difficulties statelist Inconsistent Terminologies Analyze the market 1 Measurement problems occur 7 frequently and only estimates are available IE t blquot h dl39 bquot t39 39 S a 395 me 39a 0 lea was 2InsuttICIent Information about markets v and media not measured or too costly Develop media strategy T 3 Inconsistent terminology usually arises from confusion or lack of standard Implement medla strategy measurements 39 4 Time pressures results in decisions being made without proper planning and AA In order analysis Brand Development Index assists marketers in where to allocate the media budget Category Development Index is used to determine the potential for development of the total product category in the given area Hiah BDI Low BDI High market share Low market share Good market potential Good market potential High market share Low market share Monitor for sale decline Poor market potential Low CDI The market usually represents good sales The product category shows high potential for both the product and the potential but the brand isn t doing well brand the reason should be determined Advertise to maintain high share I I Evaluate before advertising The category isn t selling well but the Both the product category and the brand are doing poorly not likely to be a aood place to advertise sales Advertise to support brand Minimal advertising or may even superiority bypass The market usually represents good sales potential flt The product category shows high potential but both the product and the brand the brand isn t doing well the reason should be determined Moderate Growth Potential I I High Growth Potential I The category isn t selling well but the brand is Both the product category and the brand are may be a good market in which to advertise but doing poorly not likely to be a good place to should be monitored for sales advertise No Growth Potential I Low Growth Potential I Target market coverage Target market Full Market Partial Market Coverage exceeding Proportion Coverage Coverage Market Big onegt Population y I y excluding forget market Target market Media TM MC Media MC coverage overexposure Three scheduling methods 1 Continuity continuous pattern of advertising every day week or month 2 Flighting intermittent periods of advertising and no advertising 3 Pulsing combination of the first two continuity is maintained but at certain periods advertising is increased Con nuny Flighting 39 Pulsmg I Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The shifts could be holidays like for kids Reach and Frequency A Reach of 1 C Duplicated Reach D Unduplicated Reach of B Reach of 2 program Program of Both Both 911250 0 Total reach less duplicate Total reached with both shows Total market audience reached Graph of Effective Reach Total market Audience reached Tetalll Exposure 39turereus lEffeetiMe Exposure of a PrimeTime Telllevieinn Sehedule 2G Tetel exposure stl GHPS Effective exposure 22T ERPS Ne exposure 1 5 v ineffective exposure Threshold of effectiveness Reinforcement of effectiveness 39 E KC e55 We expires re 7 N eg at lure QKPUSU FE Percent mam GRF s Greasy rating pelnte ERPS E Effective rating point 3 4 5 E r a e 1e llTl 12t31 lsw l list umber of expels Lures Marketing factors determinina frequency Marketing Brand factors Usage I cycle Brand share Brand Target history group Share of Purchase voice cycle loyalty Brand loyalty inverse relationship the higher the loyalty the less frequency required Brand history new brands require higher frequency Brand share inverse relationship the higher the share the less frequency required Share of voice when strong competition exists higher frequency is required Purchase cycle shorter purchasing cycle require higher freq to maintain top of mind awareness Target group the ability to learn and retain messages has an impact on frequency Usage cycle products needing to be replaced frequently require higher frequency to maintain top of mind awareness Messaqe or creative factors Message complexify The simpler The message The less frequency required Message uniqueness The more unique The message The less frequency required New vs Confinuing Campaigns new campaigns require a higher frequency image vs producf sell creaTing an image requires a higher frequency message variafion a single message requires less frequency wear ouT higher frequency leads To fasTer wear ouT advertising uniTs larger uniTs require less frequency Media facfors Cluffer more cuTTer requires less frequency Repeaf Exposures media ThaT allow for more require less frequency EdiTorial environmenf The more consisTenT The ad is wiTh This The less frequency Number of Media used fewer media The lower The frequency ATTenTiveness The higher The level of aTTenTion achieved by The media The less frequency Scheduling conTinuous scheduling requires less frequency Defermining Relafive Cosf of Media PRINT CosT of ad space absoluTe cosT CosT per Thousand CPM x 1000 CirculaTion CalculaTing CPM based on TargeT audience Scenario A Overestimation of Efficiency Target market 1 8 49 Magazine circulation 4000000 Circulation to target market 65 o 2600000 Cost per page 234000 234000 x 1 OOO CPIVI 585 4000000 234000 x 1000 CPM actual target audience 9000 2600000 Scenario 8 Underestimation of Efficiency Target market All age groups male and female Magazine circulation 4000000 Cost per page 234000 Passalong rate 3 33 of households Pa e CO t 1 000 234000 1 OOO CPM based on readers per copy g S x x Circulation 31320000 7960000 2940 Defermining Relafive CosT of Media BROADCASTTV CosT per raTing cosT of commercial Time poinT CPRP program raTing Cost per Thousand CPM Gross impressions online Reach OOOs x Frequency CPM cosT of commercial Time x 1000 gross impressions Defermining Relafive CosT of Media Online Cost of online campaign CPM x 1000 Impressions no of times an ad is loaded may exclude reloadsrefreshes Negotiation defined Negotiation is a process where you work to reach an agreement that is mutually satisfactory to both buyer and seller Ability to negotiate problems or objections is a most effective way to create value A winwin 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 Strategic planning leads to action Strategically planning fTr negotiation of buyer concerns 9 activities during nego l Recognise amp understand verbal and l Anticipate buyer concerns nonverbal clues 2 Review common types of 2 Validate The IOFOblem resistance 3 Find some point of agreement 3 Review methods of negotiating 4 Do not allow anger to surface buyer resrstance 5 Answer customer s concern 4 Prepare a negotiation worksheet 6 Be alert for closing clues Common types of buyercustomer concerns 1 A need for the product 0 Conditioned response I don t need the product sincere need resistance a great challenge 0 Not convinced of your product s benefits 0 Best way to overcome prove your product is a good investment 2 Product itself 0 Product not well established will not be popular 0 Associates don t like the product present product or system is good enough 3 Source of Product Ways to overcome 0 Superior benefits of your product 0 Identify how product solves problems 0 Piece tridl order to evoluote merits o Recruit chompions inside buyer s firm 0 Stoy visible dnd connected to client 4 Pricing Trdined Buyers n negotidtion budget limitdtion tdctic tdllte it or ledve it split the diff Low Price Strdtegy tronsoctiondl buyers seelt low prices Empowered solespeople dble to dpply vorious discounts Downside lower profits amp lower commissions Dealing with price concerns Clorify price concerns with questions Add volue stress service Do not make the price the focal point Do not apologise for the price Point out the price quolity relotionship Demonstrate the diff between price amp cost Do not make concessions too quickly Price Iceberg price is only the tip remind customer of volue odded foctors Eg Assistance from solesperson ofter sole excellent tech assistance 5 Timing Also known es the stdll usuolly customer doesn t perceive benefits of buying now or sees the both positive dnd negotive in product Customer objections Dbjeetiene ere eften reeju eete fer lmere inferreeti en te juetifjlr the buying eeeieien bieetiene een telll ue e let ebeut the reel eeuree ef heeitelienl end whettype ef infennetien tTIe euetemer ie eeeltin EJEGTIDH EDUHBE IF H iaSITATl F39riee tee highi Fereeieed beet eereue benefit 1l39elue ertieuletien I Tbinlt ebeutit rtreid te melee e bed deeieien Ereete eenttbrt ereeide preef Tell te beeef lLIneble te juetiftr deeieien Riel reduetien benefit review Need rnete queteet lUneure yeu39 re their beet eb ee Tergete eellutiene Ieelue Set With eurrent preeie er eeen t eee lbene t ef ehenee Jifferentietten I erl bietery Feet eeperiienee ie effeetinl eurrent eiew ffer et ehenee Negotiating buyer concerns Know volue of your offering Prepdre for negotidtions Understdnd the problem Credte dlterndtive solutions Find points of ogreement Know when to wolllt dey Specific negotiation methods i Direcf denial o Refufe prospecf s opinion or belief 0 Be firm nof offensive fhinllt win win 2 Indirecf denial Acknowledge prospecfs as parfly righf o Feel FeIf Found o I undersfand how you feel 0 thers have felf fhaf way 0 Unfil fhey used fhe producf and found if auife easy and reliable 3 Quesfions o Converf problem info need safisfacfion auesfions o How would a 30 reducfion in brealtdowns affecf your comp profifabilify 4 Superior benefif o Acknowledge prospecf has valid concern amp focus on superior benefif 0 Superior benefif should oufweigh specific cusfomer concerns 5 Demonsfrafion 0 Discuss compefifive advanfages of your producf o Demonsfrafions overcome buyer scepficism effecfively 6 Trial offer 0 Prospecf fries producf wifhouf purchase commifmenf 7 Third parfyfesfimony o Neufral fhird parfy fesfimony adds credibilify o Almosf never friggers cienf argumenf 8 Posfpone mefhod o Posfpone answers fo cienf concerns unfiI Iafer in dialogue 0 Explain why you wanf fo posfpone Closing fhe sale What s closing Some closing mefhods can move fhe cusfomer from indecision fo commifmenf When fhese mefhods are used effecfively fhe prospecf doesn f feel pressured Closing should be fhoughf of as fhe beginning of a long ferm parfnership Sfrafegic Planning for closing sale leads fo Acfions during closing Review possible barriers Recognize closing clues to closing the sale 2 Focus on point of greatest Review closing guidelines interest Prepare several closing Handle tough points ea39ly rnethods Avoid surprises Plan to ask for the order rnore than once Keep prospect involved Practice closing Display con dence Aconn modate buyer39s communication style Ask or order more than once Buyer anxieties Review The value proposiTion from The prospecT s view RelucTance can be due To Loss of opTions Fear of makina a misTake peer pressure Guidelines for Closing Sales Focus on dominanT buying moTives l 2 Longer selling cycles require mulTiple commiTmenTs 3 NegoTiaTe Tough poinTs before close 4 Avoid surprises aT close 5 Display confidence aT close 6 Ask for order more Than once 7 Recognize closing clues Closing cluescues Verbal Nonverbal QuesTions Facial expression changes RecogniTions ProspecT nods in agreemenT RequiremenTs Leans Toward you Examines producT liTeraTure inTenle Specific Closing Mefhods Poel ua HESIIDI ISE Negatlve Egganse T39rl l Elma 1 Trial close 1 Made aT an opporTune Time 500 down paymenT be OK Would you like To sTarT now 2 Summaryofbenefifs close Re emphasize value added buyer benefiTs Things you can be given To jusT close if ThaT s 25 for each lunch 4 conference rooms and audiovisual supporT plus our special meeTing package Can I make This reservaTion for you 3 Assumpfive Sulee way To ask for decision assuming cusTomer will buy Comes near The end of The presenTaTion Because This shipmenT can meeT your TimeTable leT s go ahead and place your order 4 Special concession Extra incentive for acting now Sample inducements sale price quantity discount liberal credit plan Use with care 5 Multiple options Present several options to customer Steps Configure more than one product solution Stop when ample selection presented Remove less appealing options or products 6 Balance sheet Outlines reasons to buy amp not to buy Engage customer in this process T table 7 Management Involve senior executives or sales manager upper level managers add value Makes prospect feel important 8 Direct appeal Ask for the order in a straightforward manner Should not come too early gain prospect respect 1 9 Combination Salesperson simply combines two or more close methods for effectiveness Confirmation Step Reassure customer Confirm sale amp partnership Reduce buyer s remorse forms of regret fear anxiety about sale gt Compliment buyer on wise decision Thank customer for order When buyer says no Learn to manage disappointment When a sale is lost Make sure the deal is really dead othenNise reopen the presentation Review chain of events identify weaknesses Obtain customer feedback to improve Facing competition Some buyers want to look at competing productsservices Do all possible to help customer make an intelligent comparison Stress areas where your product is superior
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