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by: Mr. Allene O'Hara


Mr. Allene O'Hara
Texas State
GPA 3.85

A. Noll

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A. Noll
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This 30 page Class Notes was uploaded by Mr. Allene O'Hara on Wednesday September 23, 2015. The Class Notes belongs to MKT 3358 at Texas State University taught by A. Noll in Fall. Since its upload, it has received 8 views. For similar materials see /class/212735/mkt-3358-texas-state-university in Marketing at Texas State University.

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Date Created: 09/23/15
Professional Selling Exam 2 Study Guide 0 gtChapter 7 o gtP181186188 191 195 Gathering information about Se ing obiec39ives the prospect and firm For the ca MCIka aquot uppomm em I Why Plan the Sales Call 0 The buyer39s time is valuable o The seller39s time is valuable 0 Planning must fit into the salesperson39s goal for the account 0 Some accounts have greater strategic importance and require more planning I Obtaining Precall Information The more information the salesperson has about the prospect the higher the probability of meeting the prospect s needs and developing a longterm relationship There are costs involved in collecting information Don39t expect information gathering to be quick easy or cheap Don39t assume that your knowledge of the account is automatically up todate I The ProspectCustomer as an Individual 0 Salespeople should attempt to learn the following types of information about a prospect or customer I Personal I Name including pronunciation I Family status I Education I Aspirations I Interests and disinterests I Social style I Attitudes I Toward salespeople I Toward your company I Toward your product I Relationships I Formal reporting relationships I 0 000 I Important reference groups and group norms I Bonds that the prospect has already formed with other salespeople I Evaluation ofproductservices 0 Product attributes that are important 0 Product evaluation process The Prospect sCustomer s Organization 0 Information like the following about the prospect s organization would be helpful I Demographics 0 Type of organization 0 Size number oflocations 0 Products and services offered 0 Financial position and its future 0 Overall culture of the organization I Prospect39s customers 0 Types 0 Benefits they seek from the prospect s products and services I Prospect s competitors 0 Who they are 0 How they differ in their business approaches 0 Prospect s strategic position in the industry I Historical buying patterns 0 Amount purchased in the product category Sole supplier or multiple suppliers why Reason for buying from present suppliers Level of satisfaction with suppliers Reasons for any current dissatisfaction with suppliers or products I Current buying situation 0 Type of buying process 0 Strengths and weaknesses of potential competitors I People involved in the purchase decision 0 How they fit into the formal and informal organizational structure Their roles in this decision Who is most in uential Any in uential adversaries Current problems the organization faces 0 Stage in the buying cycle I Policies and procedures 0 About salespeople 0 About sales visits 0 About purchasing and contracts Sources of Information 0 Resources within your company I Sales portals I Selling center 0 The Internet I Prospect company s own Web page I Personalized Web pages I Hoovers Facebook LinkedIn o Other Sources I Secretaries and receptionists I Noncompeting salespeople I Traditional secondary sources I The prospect o Other sources I Trade show I Lists and directories I Center of in uence I Outside consultant I US government s export portal I US Commercial Service market research library 0 Sales Portals I Online databases that include in one place many sources of information that the salesperson might need 0 Include items such as 0 Account data 0 Competitor Intelligence 0 News about the industry the company and the economy 0 Selling Center I A team that consists of all people in the selling organization who participate in a selling opportunity 0 Setting Call Objectives 0 Review what has been learned from precall information gathering 0 Understand what relationship the firm wishes to have with the prospect 0 Call objectives should be developed while taking into account I The firm s goals I The sales team s goals I The salesperson s goals 0 Ifyou don t know where you re going you may wind up somewhere else 0 Setting More than 1 Call Objective 0 Primary Call Objective I Actual goal the salesperson hopes to achieve in an upcoming sales call 0 Secondary Call Objective I Goals a salesperson hopes to achieve during a sales call that have somewhat less priority than the primary call objective O 0 Minimum Cull Objective I The minimum that a salesperson hopes to accomplish in an upcoming sales call Optimistic Cull Objective I The most optimistic outcome the salesperson thinks could occur in a given sales call Criteria for Effective Objectives 0 All objectives should be SMART I Specific I Realistic I Measurable I Set objectives that require a buyer s response Setting Objectives for Several Calls 0 000 0 Keep good records Make necessary adjustments in longterm call objectives Prepare for the next sales call A good primary objective for a first session is to have another chance to Visit Consider whom to call on in upcoming meetings Buyers are Setting Goals Also 0 What buyers look for to increase value I Ontime delivery I Tospec quality of products I Competitive pricing I Proper packagingpaperwork I Technical support service I Quality of sales calls I Level of technological innovation I Good emergency response Customer Value Proposition 0 O The way in which a salesperson s product or service will meet the prospect s needs customer s perceived business issue aka quotBI and how that is different from the offerings of competitors especially the nextbest alternative Four Common quotBI squot include I Increase revenue market share and shareholder value I Increase efficiency and productivity I Manage costs I Control quality and reliability Examples of Call Objectives Objectives Related in line Process Leading uP to the Sale vl L L NHL La r r 1 weeks for a handwn demonslrcllion of llle copier To l p another eppeinlmenl lar one week from new when lie buyer will allow me to do a camplele survey of he priming needs Yl LJ of l L We our new drug and have her agree in read lhe pamphlel I will leave s i L L r i L i i J I rd 0 r endorsement of my proposal l l r i l a cenfidence and liusl in my officecleuning business To have the prospecl agree on lhe firsl poinl of our laurpoinl program and schedule anellrer meeling in lwe days lo discuss lire second poinl l L L v r r r ll L 4 J Mm vendor Obiectives Related to Consummating the Sale To have the praspecl sign an order for loo pairs of Levi39s jeans Y L J I w errsng L l L L l l I a 39 J l r pupalmuirielr 4 K L n l L 4 l Lil u ye i A l 43 lhesummelpmmolion us of Raid insecl repellenl Making an Appointment 0 The right person I Focus ufreceptivity The person in the organizationwho will listen receptively and provide a seller with valuable information I Focus ufdissa Lisfacn39url The person in the organizationwho is most likely to perceive problems and dissatisfactions leads to the focus of power I Focus ufpuwer The person in the organizationwho can approve prevent or in uence action 0 The right time o The right place 0 Cultivating Relationships with Subordinates o Barriers Screens I Buyer39s subordinates who plan and schedule interview for their superiors I These screens can also take on the role of gatekeepers for the buying center 0 Sales strategists have identified several ways to interact with a screen I e salesperson can work quotthrough the screen The seller has to convince the gatekeeper that a meeting with the boss is in the boss39s best interest I The salesperson can go over the screenquot 0 While talking to the screen the seller drops names of people higher up in the organization The screen may allow the seller in to see the boss right away for fear of getting into trouble I The salesperson can go under the screenquot by trying to make contact with the prospect before or after the screen gets to work or while the screen is taking a coffee break The seller just bypasses the screen entirely a strategy that can easily backfire which results in great customer dissatisfaction Telepho ning for Appointments 0 Most often used to make the initial appointment 0 The goal is to make the appointment not sell the product or service 0 Salespeople need to anticipate objections and decide exactly how to respon Responses to Objections Concerning Appointments Obiecllo m a Secretary Response l I39m sorry but Mr Wilkes is busy now Whal I have lo say will lake only a lew minules Should Icall back in a half hour or would you suggesl poinlmeme We already have a copier Thal39s line I wanl lo talk lo Mr Wilkes aboul our new paper flow syslem design lor companies like yours I lake care of all lhe copying offer to dala lransmission reporl generalion and copiers I39d like lo speak lo Mr Wilkes aboul lhis lalal service Obiech m lhe Prospect Response l Can39l you mail lhe inlormaiion lo me Yes I could Bul everyone39s siluolion is clillerenl Mr Wilkes and our syslems are Individually lailored lo meel lhe needs of each cuslomer Now benelil slalemenl and repeal requesl lor appoinlmenl Il39s diflicull lo syplain lhe syslern over lhe lelephone In l5 minules I can demonslrale lhe savings you gel from lhe syslem The general objeclion is hiding a specific objaclion e salesperson needs lo probe fol lhe speci c objeclion Do you say lhal because you don39l copy many documenlse Well who is il you won lo lalk about You39d jusl be wasling your lime I39m nol inlereslecl We had a Xerox copier once Probe for lhe specific reason of dissalisfaciion and and didn39t llke il 39 have a reply ul don39l go loo or The objeclive is lo gel on appoinlmenl nol sell a copier Source Couriesy of Xerox Corporalion Used by permission Additional Planning 0 Plan how to make a good impression 0 Plan how to further uncover the customer39s needs and strengthen the presentation 0 Plan to answer anticipated questions and concerns 0 Practice 0 Seeding 39 S nding the customer important and useful items or information prior to the mee 39ng ltgt Chapter 8 0 Pa es 204 206 208 210 212 213218 221 222 225 0 Essential Elements ofthe Sales Call Making o good impression Adius39ing Ideniifying or reiieruiing Assessing quot15 buyer s needs reactions and making odiusiments Offering the solution To the buyer39s needs Credibility and lrusl o Impression Management 0 ctivities in which salespeople engage to affect and manage the buyer39s impression oft o The content of an actual sales call depends on The specific situation ent ofthe established relationship 0 The Four A39s Selling Process 0 Waiting for the Prospect e on time or call ifyou re going to be a few minutes late 0 Make good use ofyour waiting time o 15 minute rule When to reschedule o o First Impressions O O 0 Making a favorable first impression usually results in a prospect who is willing to listen I How you dress I How you look Modify behavior based on prospect s state Customer s name 0 Selecting a Seat 0 Be aware ofyour surroundings o Read the prospect s nonverbal cues 0 Getting the Customer39s Attention o Prospects use the first few minutes to determine if they will benefit from the interaction 0 Salespeople basically have less than six minutes to get credibility with the client 0 Presentation openings 0 Halo Effect 0 How one does in one thing changes a person s perceptions about other things one does 0 Opening 0 A method designed to get the prospect s attention and interest quickly and make a smooth transition into the next part of the presentation Examples include introduction product question referral and so on o Openings that Salespeople Can Use to Gain Attention Opening Method Introduction opening simply Introduce Ms Hallgren thank you for seeing me yoursell t d Referral opening tell about someone who referred you to the buyer Benefit opening start by telling some bene t of the product product opening oclually demonstrate a product teaturc and ban soon as eiii as Example Things to Consider Simple but may not generate Interest 0 ay My name is Daniel Mundl and I39m with ServiceMctsler Mr Schaumberg I appreciate your seeing Always get permission Don39t stretch me today I39m here at the suggestion of Ms Fleming oI Acumen Ornamental Iron Works She thought you would be interested in our line of wrought iron products on railings Mr Penney I would like to tell you about a Gels down to business right away color copier that can reduce your copying costs by Is percent Carrying a tablet PC into on office Ms emming you spen a lot of time on the 539 In Uses visual and not just verbal opening can create excitement you walk up to the prospect Compliment opening start by complimenting the buyer or the buyer39s firm Question opening start the conversation with a question road as an investigative lawyer let me show you how this little handheld item can lrctnsiornt your car or any place you go into an efficient effective aif39ce l was calling on one of your customers Jackson Street Books last week and the owner couldn39t say enough good things about your service It sure says a lot about your operation to have a customer iusl stan praising you oul o e blue Ms Borgelt what Is your reaction to he brochure I sent you about our new Developing a Rapport o Rapport t telemarketing service Must be sincere not just flattery Starts twoway communication I In selling is a close harmonious relationship founded on mutual trust Should be the goal of every salesperson Small talk Office scanning Consider cultural and personality differences 0 Share goals or agenda Small Talk 0 Talk about current news hobbies and the like that usually breaks the ice for the actual presentation Office Scanning 0 Activity in which the salesperson looks around the prospect s environment for relevant topics to talk about When Things Go Wrong 0 Maintain the proper perspective and a sense of humor 0 Apologize 0 Think before you speak Identifying the Prospect s Needs The Power ofAsking Questions 0 After capturing the buyer s attention it is time to identify the buyer s needs 0 Use transition sentences 0 Don t be surprised if the buyer is reluctant to provide confidential information o Discovering needs is part of qualifying the prospect Asking Open and Closed Questions 0 Open Questions I Questions for which there are no simple yesno answers 0 Closed Questions I Questions that can be answered with a word or short phrase o In most cases salespeople need to ask both open and closed questions 0 Summarize the prospect s needs OOOO Using Open and Closed Questions to Discover Needs Sd yunun39s has Prowul39s Rams Hm m w um mm um uquot l mp mm who balm9 Ami Maume lmwmm lhvn lhlywtchacklng mm ya luvmnlly Myl minimum Amd m we munquot mamon w nme mmmn mm m In My mum whnrwwid v Mm no mm mm and my a lmk um i 1 3M mum yaw wy ncdmhmmf quotmm mm mm mm mm m Malmm doyw mm cw MW and lawnmmwrbmmmm um Will 9 h luau wul hkmg m lgusx w m in mm lawn Whnl my um m m mm 1 WWW in Mu Am chle mun hum anqu y m wquot m n m n Mm m M m mm W m Wm n mm mm m mm m am mmmmwi w Anyxlvmnwlwdhwil yywt my ml lmallydwu39l nu ma lawmath my land m wk NWW mm mm d w m on Abml swan m w and up a mm rm mm mu Whulmnlmum alumni 51mm halanmmn m mmm aim mm mm mmmllnyuurxmml m lwrznnlwlturnmqumnnl ly balm mm mm w w mm m i mm balm ww kind mm an m x 5 mm 25 puma Pam quotM elmd pm gumquot w w 1pr l n1 quotan it m M him M mm m WWW in New wquot Walling you at mu mml DPHI Discovering the Root Cause ofthe Need More gnuelk quotnan mm 71 um maquot buyer ends hm Initial need expressed buyer mm hm SPIN Technique 0 Situation questions General datagathering questions about background and current facts that are very broad in nature I Many situatio ntype questions canbe answered through precall information gathering and planning 0 Problem questions I Questions about specific difficulties problems or dissatisfactio ns that the prospect has 0 Implication questions I Questions that logically follow one or mo re problem questions I Help the prospect recognize the true ramifications of the problem I Motivate the prospect to search for a solution to the pro 0 Need payoff questions 10 I Questions about the usefulness of solving a problem I Solution centered Conclusions about SPIN o Encourages the prospect to define the need 0 Prospect views the salesperson more as a consultant trying to help than as someone pushing a product 0 MajorSale 0 Sale that involves a long selling cycle a large customer commitment Reiterating Needs and Developing a Strategy 0 Reiterate needs you identified before the meeting 0 Develop a strategy for the presentation 0 Prioritize buyer needs 0 Discuss features that address buyer needs Feature Dumping 0 Talking about lots of features oflittle interest to the customer and wasting the buyer39s time Relating Features to Benefits 0 Feature I Quality or characteristic ofthe product or service 0 Benefit I The way in which a specific feature will help a particular buyer I FAB feature advantages benefits 0 Customer Bene t Proposition I Statement showing how a product addresses the buyer39s specific needs ProblemSolution Model Feuiures Busi ess benefits model needs Increase Create an 17 17 profit and urgency Io g 27 H salesl buy NOWI 7 2 3 A 5 quotThe big wow 0 Going beyond mentioning features and benefits 0 FAB I Has salespeople discussing features advantages why that feature would be important to anyone and benefits 0 FEBA I Features 0 Salespeople mention the feature I Evidence 0 Provide evidence that the feature actually exists I Benefits O O O O O 00 00000 O o Credibl39 O Credibl39 O O 0 Explain the benefit why that feature is important to the buyer Agreement Then ask whether the buyer agrees with the value of the feature and benefit Assessing Reactions Using nonverbal cues Verbal probing I Allows the salesperson to stop talking and encourages two way conversation Lets the salesperson see whether the buyer is listening and understanding what is being said May show that the prospect is uninterested Making adjustments I Changing direction Collecting additional information Developing a new sales strategy Altering the style of presentation Trial Close I Questions the salesperson asks to take the pulse of the situation throughout a presentation Building Credibility During the Call Clearly delineate the time she or he thinks the call will take and then stop when the time is up Back up verbal statements Avoid making statements that do not have the ring of truth to them Make a balanced presentation that shows all sides of the situation Recognize cultural differences Demonstrate product expertise Keep it simple Be willing to say quotI m sorry I was wrong on that or quotI don t know the answer to that but I ll get it to you Never use a word unless you know the exact definition lity The characteristic of being perceived by the buyer as believable and reliable lity Statement A description of the seller and his or her company offered to buyers to show that the seller can meet their needs Balanced Presen tatl39on Occurs when the salesperson shows all sides of the situation that is is totally honest 12 I Selling to Groups 0 Salespeople should discover for each prospect group member Member status within the group Authority Perceptions about the urgency ofthe problem Receptivity to ideas Knowledge ofthe subject matter Likely resistance and ways to handle it 0 Develop objectives and plan 0 Learn the names of group members and use them when appropriate 0 Listen carefully and observe all nonverbal cues 0 Chapter 9 0 Pages 234 236239 241 244249 253 I Characteristics of a Strong Presentation 0 Keeps the buyer39s attention 0 Improves the buyer39s understanding I Multiplesense appeals I Method of attracting as many of the senses hearing sight touch taste and smell as possible 0 llelps the buyer remember what was said 0 Offers proofofthe salesperson39s assertions o Creates asense ofvalue I How We Learn and Remember We learn through Tusie Touch 1 2 Hearing g I 1 We retain 20 ofwhavwe hear We retain 50 of what we see and hear I How to Strengthen the Presentation 0 Salespeople should askthemselves I How can I use my imagination and creativity to make a vivid impression on my prospect or customer I How can I make my presentation a little different and a little stronger o A seller should strategically select methods and me dia that will helpfully address the needs ofthe buyer 0 Respond to the buyer39s unique style 13 o Consid Verbal Tools Expressives intense colors positive images Analyticals clean simple detailed Amiables peoplefilled slowpaced Drivers crisp professional er elements such as How many people will attend Which stage of the buying process they are in What information they need What type of situation this is 0 Word Pictures and Stories Use stories from your own life Have a reason for telling the story Pace the story Choose stories that fit your own style Remember stories can be quite short Consider using a prop Use the quothookquot of the story to tie back directly to your presentation Be accurate and vivid with the words you choose 0 Humor 0 Graphi 0 Model Don t oversell the joke Don t apologize before telling a joke Identify facts necessary for the punch line of the story to make sense Use humor from your own life Enjoy yourself by smiling and animating your voice and nonverbals Practice telling the joke in different ways Make sure your punch line is clear cs and Charts Know the single point the visual should make Customize charts Use current accurate information Don t place too much information on a visual Use bullets Don t overload the buyer with numbers Clearly label each visual with a title Recognize the emotional impact of colors and choose wisely prossible use graphics instead of tables Use highquality photos and drawings not clip art Use consistent art styles layouts and scales Check your visuals closely for errors Know and obey copyright laws s samples and gifts 14 I Keeps buyer interest I Crosssectional models 0 Catalogs and brochures I Help to effectively communicate information 0 Photos illustrations ads and maps 0 Testimonials and Test Results I Testimonials 0 Statements written by satisfied users of a product or service I The testimonial used should carefully match satisfied user and prospect I The person who writes the testimonial should be above reproach 0 Frequently affirm this person is still a satisfied customer I Test results from thirdparty organizations have more clout 0 Using Media to Display Visuals I Appropriate to the situation I Portfolio I Video I Computers I Digital collateral management systems I Document cameras visual presenters I Whiteboards 0 Portfolio I Collection ofvisual aids that can be used to enhance communication during a sales call often placed in a binder or on a computer 0 Product Demonstrations I Executive brie ng centers 0 Presentation rooms set aside to highlight a company s products and capabilities I Be prepared I Secure a proper place for the demonstration I Check the equipment before beginning I Get the prospect involved in a meaningful way I Always relate product features to the buyer s unique needs I Make the demonstration an integral part of the overall presentation I Keep the demonstration simple concise and clear I Plan what you will do during any dead time I Find out whether the prospect has already seen a competitor s product demonstration 15 I Find out whether anyone present has used your product before I Probe during and after the demonstration o Handouts I Written documents provided to buyers before during or after a meeting to help them remember what was said 0 Don t forget the goal ofyour meeting 0 Make sure the handouts look professional 0 Don t cram too much information on a page 0 Don t drown your prospect in information 0 Important for foreign buyers 0 Written Proposals I The RFP process 0 Include customer s specifications for the desired product including delivery schedules 0 Used when the customer has a firm idea of the product needed I Writing proposals 0 Executive summary 12 pages 0 The total cost minus the total savings 0 A brief description of the problem 0 A brief description of the proposed solution 0 Budget 0 Proposal also includes a description of the current situation in relation to the proposed solution and a budget I Presenting the proposal 0 Value Analysis Quantifying the Solution I Value analysis 0 Showing the prospect that the cost of the proposal is offset by the added value I Customer value proposition 0 The way in which your product will meet the prospect s needs and how that is different from the offerings of competitors I Costbene t analysis 0 Simple costbenefit analysis 0 Simple listing of the costs and savings that a buyer can expect from an investment 0 Comparative costbenefit analysis 0 A comparison of the buyer s current situation s costs with the value of the seller s proposed solution Can also be a comparison of the seller s product with a competitor s product I Return on investment R01 16 0 R01 net profits or savings investments Payback period investment savings or profits per year Net present value 0 Assesses the validity of an opportunity NPV The net value today of future cash in ows minus the investment Opportunity cost 0 The return a buyer would have earned from a different use of the same capital 0 Selling Value to Resellers o Dealin Profit margin 0 The net profit the reseller makes expressed as a percentage of sales Inventory turnover Annual sales average retail price ofinventory on hand Inventory management systems Return on space Sales per square foot or sales per shelf foot g with the jitters Know your audience well Know what you re talking about Prepare professional helpful visuals Be yourself Get a good night s sleep For presentations to groups feed off the energy and enthusiasm of several friendly happylooking people in your audience Recognize the effect of fear on your body and reduce the accompanying stress manifestations Visualize your audience as your friends Psych yourself up for the presentation Realize that everyone gets nervous before a presentation at times Practice practice practice 0 Chapter 10 0 Pages 262269 271 273279 281 284 O O O O The Goal is to Build Relationships and Sell Value Objection I Concern or question raised by the buyer Proper attitude is shown by I Answering sincerely Refraining from arguing or contradicting Welcoming objections Salespeople must assume the attitude ofhelper counselor and adviser and act accordingly Objections present sales opportunities 17 0 Don t argue listen and understand 0 When do Buyers Raise Objections 0 Setting up an initial appointment I Most common when products services or concepts are unfamiliar to the buyer 0 The presentation I Objections show the prospect s interest 0 Attempting to obtain commitment I May reveal a poor job up to this point 0 After the sale I Carefully respond to these objections 0 Common Objections 5 Major Types of Objections o Objections related to needs I I do not need the product or service I I ve never done it that way before I Pioneer Selling 0 Selling a new and different product service or idea In these situations the salesperson usually has difficulty establishing a need in the buyer s mind 0 Objections related to the product I I don t like the product or service features I I don t understand I I need more information o Objections related to the source I I don t like your company I I don t like you 0 Turnover T0 0 An account is given to another salesperson because the buyer refuses to deal with the current salesperson o Objections related to the price I I have no money I The value does not exceed the cost 0 Objections related to time I I m just not interested today I I need time to think about it o Other Objections 0 We have no room for your line 0 There is no demand for your product 0 I ve heard from my friends that your insurance company isn t the best one to use 0 I need a kickback to make it worth my time 0 We can do business ifI can see you socially 0 It s a lot of hassle in paperwork and time to switch suppliers 18 ing to ale neonle They anlicipale obieclicns and prepare hslplul responses They address known problems before ihe prospecl does lhoi is they loresioll n ems They relax and listen and never inierrupl the b uyeL They make sure lhol lhs obieclion is nol iusI an excuse They always tell the inrih Fur mll o 39 before buyers Effective Response M elhodsr o No 39 O handinv 2 39 39 39 L prospect may notbevvise o Probing metho Method to obtain commitment in which the salesperson initially uses the direct request method and ifunsuccessful uses a series ofprobing questions designed to discover the reasonfor hesita 39on Canbe verbal or nonverbal o Blunders occurvvhen the Doe Answer th Fails to fully answer the objection 0 Common Methods for Respondingto Objections Praise lirsl using tho inoblng method In in Mlle you n a and the abiedlon and to quotink svrsthe buyer is rooliv sonsenre o ow39nr Diana denial Indium denial Cnmpamallan mar ral kvlsil Acknmdedgc rosipcne 0 Direct denial The salesperson makes a relatively strong statement to indicate the error the prospecthas made I Appropriate only when the objection is blatantly inaccurate I Should never be used if the prospect is merely stating an opinion 0 Indirect denial I The salesperson denies the objection but attempts to soften the response by first agreeing with the prospect that the objection is an important one I The salesperson must recognize the position of the customer who makes the objection and then continue by introducing substantial evidence 0 Compensation method I Method used to respond helpfully to objections by agreeing that the objection is valid but then proceeding to show any compensating advantages I Buyers may object because the salesperson s product is less than perfect I Acknowledge objections and then show any compensating advantages I Also use when the prospect tries to put off closing the sale 0 Referral method I Method of hopefully responding to objections in which the salesperson shows how others held similar views before trying the product or service I FeelfeItfound method 0 A method of objection handling where the salesperson acknowledges how the buyer feels then relates how someone else felt the same but found that the objection was misguided I ThirdParty Testimony Method 0 Method of responding to an objection during a sales presentation that uses a testimonial letter from a thirdparty to corroborate a salesperson s assertions o Revisit method I Salesperson turns the objection into a reason for buying now boomerang method I Works with most personality types 0 Acknowledge method PassUp Method I Responding to an objection by letting the buyer talk acknowledging that you heard the concern and then moving on to another topic without trying to resolve the concern I Buyer voices opinions or concerns to vent frustration I Salesperson listens acknowledges pauses then moves on to another topic I Should not be used if the objection is factually false 20 o Postpone method I Buyer raises objections the salesperson would prefer to answer later in the presentation The salesperson should ask permission to answer the question at a later time Most useful when a price objection occurs early in the presentation 0 Using the methods I Salespeople often combine methods I Sometimes several methods can be used in one answer I Responding to Objecn39ons Using Each Method Responses Direst denials T hat simply is not true Our product has been rated as the highest in the industry for lhe last three years Indirect denial I can certainly see why you would be concerned about quality Actually though our product quality has been rated as the highest in the industry for the last three years Compensation I agree that our quality is not as high as that of some of our competitors However it was designed that way tor consumers who are looking tor a lower priced alternative perhaps just to use in a weekend cottage So you see our somewhat lower quality is actually ollset y our much lower price 1 r landhowour r r try the product Bul alter using it he found that the quality was actually equal to that oil other products Revisit The fact that the quality is lower than in other products is pro lyt e very reason you should buy it You said that some of your customers are looking for a lowpriced product to buy For their grandchildren This product lills that need Asknewteage I understand your concern You know one ortne lhlngs I always look tor is how a products quality stacks up against its cost Pause Now we were talking about 0st n mut ll h m t s an interesting point Before discussing it lully I would like to cover just two things r z nquot 0K2 Y Y t l m r r L lL LL Ll ltl l on hrthL the various methods I Objections When Selling to a Group 0 Seller should try to get a sense ofwhether other buyers share the concern Throw the concern back to the group Any response should be directed to all buyers notjust the one who asked the quesn39on 0 Make sure that all buyers are satisfied with the answer I The Price Objection 0 Most frequently menn39oned obstacle 0 Don39t lower the price as a first response 0 When faced with a price objection I Use uptodate information I Establish the value I Use communican39on tools effecn39vely I Dealing with Tough Customers OO 21 0 Sellers need to maintain a positive attitude even with rude hard togetalong with prospects o It may be appropriate to point out the prospects rudeness o The huyer s culture often dictates their response to a seller Chapter 11 0 Pages 292 295 297 298 300312 0 Securing Commitment Today 0 Buyers want to buy not he sold 0 Reliance on closing techniques may reduce the chance of making a sale 0 No commitment no sale 0 Developing and huildinglongterm relationships 0 Part of the process I Salespeople actually gain commitment repeatedly Important in moving the account through the relationship process 0 Examples or Presule carnrnlnnenls s L Lle Lu r r r o weeks for a handson demonslralion of the copier To say up anolnor appolnlmenl lor one week from now cllwhich llrne lhe buyer will allow me lo cl complele survey of her priming needs on s r realm our new drug and have her agree lo read lha palnphlel I will leave s r L l r r L r o endorsemenl ol my proposal r r n r r r n r r r o con dence and lrusl in my ellicecleaning busin s To have ll39le prospecl agree on the rlrsr poinl or our luurpoilll program ond schedule anellrer Illeelillg in M0 days lo discuss llle second poinl s r L r r r r r n L a n rum vendor Examples or cornmllrnenls Tirol Cnnsummafe lire sale a To have lire prospecl sign an order lor loo pairs of levl39s leans J H arlvorlrsrngr L rl J L L r er a r r Marmar o T I an ol o P r 4 rI 4 llresnrnrner presenlalion of Raid insect repellenl o The importance of securing commitment Tells the salesperson what to do next De nes the status ofthe client Time to make a sale Customer realization of benefits Company good will and pro t Financial rewards for the salesperson 0 Financial Terms and Conditions 0 Discounts I Quantity discounts singleorder and cumulative I Cumulative Discount 0 Quantity discount for purchases over a period of time the buyer is allowed to add up all the 00000 O purchases to determine the total quantity and the total quantity discount 0 Credit terms I Cash Discounts 0 Price discount for early payment given in cash 0 Shipping costs I Free on board FOB I FOB destination I FOB installed 0 Presenting Price 0 Price is carefully set after studying I The competitor s offerings I The value delivered by the product or service I The cost of providing the product or service 0 Usually discussed at the end 0 Present with confidence 0 Not the focus of the presentation 0 When to Attempt to Obtain Commitment 0 Buying Signals Closing Cues I Nonverbal cues given by the buyer that indicate the buyer may be ready to commit 0 Buyer comments I Buyer questions I Requirements I Benefit statements I Responses to trial closes o Nonverbal cues I Facial expressions I Actions 0 Requirements I Conditions that have to be met before a purchase can take place 0 How to Successfully Obtain Commitment 0 Maintain a positive attitude 0 Let the customer set the pace 0 Be assertive not aggressive I Aggressive 0 Sales style that controls the sales interaction but often does not gain commitment because it ignores the customer s needs and fails to probe for information I Submissive 0 Selling style of salespeople who are often excellent socializers and like to spend a lot of time talking 23 0 about nonbusiness activities These people are usually reluctant to attempt to obtain commitment I Assertive 0 Sales manner that stresses responding to customer needs While being selfconfident and positive Sell the right item in the right amounts I Trial Order 0 A small order placed by a buyer in order to test the product or the vendor Not to be confusedwith trial close Selling Style Selling Activity Defining customer needs Controlling the presentation Closing the sale Aggressive Submissive Assertive Probe for need related information that customer may cl Believe they are the best iuclge Accept customer39s de nition of of customer39sneeds e Permit customer to control presentation Minimize participation by Encourage twowoy communication and customer panicipation L a L r leading to somewhat automatic close respond to obieclions without understanding ready 0 Effective Methods 0 O O O O O O O O O The salesperson s purpose is to sell the right product in the right amounts The seller should sell in a fashion consistentwith the way the buyer prefers to buy Buyers need a choice Use the appropriate method Direct request method I Simply ask for it in a straightforward statement Benefit summary method I Obtaining commitment by simply reminding the buyer of the agreedon benefits of the proposal Balance sheet method I Attempts to obtain commitment by asking the buyer to think of the pros and cons of the various alternatives I Often described as the Ben Franklin method because Franklin described using it to make decisions Probing method I Method to obtain commitment in which the salesperson initially uses the directrequest method and if unsuccessful uses a series ofprobing questions designed to discover the reason for the hesitation I Consider cultural differences Alternative choice I Limit choices Other methods I Many methods tend to be ineffective with sophisticated customers I The buyer must trust the salesperson the company and the product 0 Some Traditional Closing Methods O 0000 0 Minor point Continuous yes Assumptive Standingroom only Benefitinreserve Emotional o If Commitment is Obtained O O No surprises I Go over all important information Confirm the customer s choice I Assure customers they have made an intelligent choice I Buyer s Remorse PostPurchase Dissonance o The insecurity a buyer feels about whether the choice was a wise one Get the signature I Make the actual signing an easy routine procedure I Fill out the order blank accurately and promptly I Be careful not to eXhibit any excess eagerness or excitement at signing time Show appreciation I Thankyou letter I Small gift I Genuine but not effusive Cultivate for future calls I How the salesperson treats the customer is the biggest determinant of future sales I Follow Up 0 Activity that a salesperson performs after commitment is achieved Review the actions to be taken I Avoid misunderstandings I Be sure the buyer gets what they were promised o If Commitment is Not Obtained O 0 Some reasons for lost opportunities I Wrong attitudes I Poor presentation I Poor habits and skills Discovering the cause I Critical so that salespeople can proceed intelligently to eliminate the barriers 25 0 Suggestions for dealing with rejection I Maintain the proper perspective I Recommend other sources I Good manners are important 0 Bringing the Interview to a Close 0 Most sales take several calls to complete 0 Leave with a clear plan for all parties I Review what you will do next I What the customer will do next I When you will meet again 0 Followup promptly with a thankyou and reminder note 26 Professional Selling Exam 1 Study Guide 80 questions Multiplechoice only Ch16 gt Chapter 1 0 P5 What is personal selling I Professional selling is a persontoperson business activity in which a salesperson uncovers and satisfies the needs ofa buyer to the mutual longterm benefit of both parties 0 P7 What is the role of sales people in business I o P8 Integrated Marketing Communications I Communication programs that coordinate the use ofvarious vehicles to maximize the total impact of the programs on customers 0 P910 What do sales people do I Salespeople engage in a wide range of activities including providing information about products and services to customers and employees within their firms I Salespeople often have multiple roles to play including client relationship manager account team manager vendor and channel manager and information provider for their firms 0 Client Relationship Manager 0 Sales jobs involve prospecting for new customers making sales presentations demonstrating products negotiating price and delivery terms writing order and increasing sales to existing customers 0 Account Team Manager 0 Salespeople also coordinate activities within their firms to solve customer problems 0 Vendor and Channel Manager 0 Sometimes it is necessary to interact with other partners and vendors to meet customer s needs and salespeople are often the key managers of these many relationships 0 Information Provider to Their Firm 0 Salespeople are the eyes and ears of the company in the marketplace To truly have effective impact on their organization salespeople need to be skillful at disseminating the knowledge they have acquired from customers to other people in their companies 0 CRMCustomer Relationship Management I A system to organize information about customers their needs company information and sales information o P11 Different types of sales people I Almost everyone is familiar with people who sell products and services to consumers in retail outlets Behind these retail salespeople is an army of salespeople working for commercial firms 0 P12 Different types of selling and distribution channels I A distribution channel is a set of people and organizations responsible for the ow of products and services from the producer to the ultimate user BusinesstoBusiness Channels 0 The two main channels for producers and providers of businesstobusiness or industrial products and services are 0 Direct sales to a business customer I In the direct channel salespeople working for the manufacturer call directly on other manufacturers 0 Sales through distributors I In the distributor channel the manufacturer employs salespeople to sell to distributors The salespeople are referred to as trade salespeople because they sell to firms that resell the products rather than using them within the firm Distributor salespeople sell products made by a number of manufacturers to businesses I Sales Jobs and the Distribution Channel 0 Amissionary salesperson is employed Missionary salespeople work for a manufacturer and promote the manufacturer s products to other firms However those firms buy the products from distributors and other manufacturers not directly from the salesperson s firm 0 P14 Describing sales jobsdifferent types I Descriptions of sales jobs often focus on six factors 0 The stage of the buyerseller relationship 0 The salesperson s role 0 The importance of the customer s purchase decision 0 The location of salespersoncustomer contact 0 O The nature of the offering sold by the salesperson The salesperson s role in securing customer commitment O O gt Chapte 0 00000 O gt Chapte 0 000000 0 gt Chapte O O 0 000 O gt Chapte O O P17 Characteristics of Successful sales people P20 Different Rewards in Selling r 2 P33 Ethics term definition I Principles governing the behavior of an individual or group Evolution of Selling P36 Terms I Manipulation Persuasion P3640 Factors in uencing the ethical behaviors of salespeople P4044 Selling Ethics amp Relationships P44 Relationships with a salespersons company P47 Relationships with collogues P4854 Relationships with competitor I Principles of marketing Different laws Price discrimination 0 Meeting competitive situation o 2 101 rule P56 Foreign Corrupt Practice Act r 3 P64 67 Different types of customers Who they are P68 Organizational buying and selling I Complexity of Organizational buying process P6971 How do organizations make buying decisions P71 Types of organizational buying decisions P7476Who makes the buying decision P76 Supplier evaluation and choice P77 Organizational needs and criteria P80 Individual needs ofbuying center member P82 Professional purchasing growing importance r 4 P100 Communication process and it s breakdowns P100105 Sending verbal messages effectively P104 Active Listening 80 20 Rule P108 Reading Nonverbal messages I Body angle face arms P111 Sending Nonverbal message P113114 The world of space and visual contact P114 115 Critical Physical Appearance P116 Different types of technology salespeople use in communication r 5 P128 Types of Presentations P129 Adaptive Selling and Sales Success P130133 What do we mean by Knowledge Management P134 The components of the Social Style Matrix P140 Term Versability o P141 Systems for developing Adaptive Selling Skills gt Chapter 6 o P150 What is prospecting I Importance of prospecting I Characteristics ofa good prospector o P155169 How and where do you obtain prospects I Satisfied customers are the 1 source for new leads 0 P169 Lead Qualification and Management Systems 0 P171 Overcoming the reluctance ofa prospect OOO


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