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by: Reina Davis


Reina Davis
GPA 3.71

S. Mangus

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S. Mangus
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This 37 page Class Notes was uploaded by Reina Davis on Tuesday October 13, 2015. The Class Notes belongs to MKT 4423 at Louisiana State University taught by S. Mangus in Fall. Since its upload, it has received 81 views. For similar materials see /class/222526/mkt-4423-louisiana-state-university in Marketing at Louisiana State University.

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Date Created: 10/13/15
Chapter 1 What is selling Professional Selling the interpersonal communication process in which a seller uncovers and satisfies the needs and wants of a prospect to the mutual long term benefit ofboth parties Facilitates exchange Business activity Whatcanyou sell Attorneys selling their services their reputation Musicians Physicians Research scientists sometimes you have to sell to someone inside the organization and outside of course Accountants Engineers Lawyers Model overview Customer ce ntric the customer is the most important everything we do is focused around the customer Customer orientated we operate with the customer in mind we are interested in what the customer needs and wants 0 Focus on understanding customers requirements 0 Generate nroani atinn wi e quot nf o Respond effectively with innovative products and services that generate satisfaction Customer mindset salesperso ns belief that understanding and satisfying customers whether internal or external to the organization is central to doinghis or her job well o This is how 39customer orientation comes alive The Customer customer at the center Creating Value Return of customer investment how much time money and other resources are invested in a customer divided by how much the company earns from that customers purchases Lifetime value ofa customer an estimate of the present value ofthe stream of future profits expected over a customer s lifetime of purchases Transactional vs Contemporary Selling 21 Transactional Selling 0 Buyers mainly interested in price and convenience Supplies bring no additional benefits Supplies reduce resources allocated to selling Most likely a short term relationship because a long term isn t necessary mostly because the product doesn t require long term relationship Relationship selling your trying to look into the relationship how can you add value to them how can you save them money long term 0 Consultative selling the set of skills strategies and processes that works most effectively with buyers who demand and are willing to par for a sales effort that creates new value and provides additional benefits outside of the product itself I Buyers who are interested in buying to fulfill their problem but are also looking for added value and benefits I Sales force creates value by 1 Helping customers understand their problems issues and opportunities in new or different ways 2 Helping customers arrive at new or better solutions to their problems than they would have discovered on their own 3 Acting as the customers advocate inside the sales organization ensuring timely allocation of resources to deliver customized or unique solutions that meet the customers special needs 0 Enterprise Selling key account management the set of skills strategies and processes that works most effectively with strategically important customers who demand an extraordinary level ofvalue creation from a key supplier I Focusing on big clients or one or two big clients I Strategically important customers demand extraordinary value 000 creation I Requires cross functional team to execute I Example 0 Proctor amp Gamble s relationship with WalMart o Advan o PampG uses integrated technology to provide WalMart with justintime delivery of products 0 Representatives from many functional areas within PampG are required to make this enterprise selling effort successful tages Mutual trust Loyalty Friendliness Respect Long term Win win mutual benefit Familiarly with needs wants and desires o Disadvantages Differences Win lose approach Parties not being open with each other Misunderstandings arguments or con icting opinions Familiarity sometimes breeds contempt Time consuming Opportunism 0 Where we spend our time Transactional spend time closing the deal your trying to make the sale Value Added selling understanding the buyers needs relationships don t start over night making sure your satisfied after the product is sold makes sure the customer is happy When a firm shifts from transactional selling to a value added approach a number of changes have to take place in ways a salesperson approaches customers as well as his or her own job 0 What are some of these changes and why is each important to making value added selling work Train differently o More about building relationships 0 More product training 0 Continuing education More communication with clients not about sale Focusing on the customers objectives Must be open selling is not warfare More res About clients Need more time maybe some travel costs 0 Follow up Listen instead of talking Give options Don t write the customer off too soon Value Creatio n Value is a bundle ofbenefits value is more than price Value bundle ofbenefits a customer derives from a purchase Get give ra t1o Value creation adding value for a customer beyond an isolated transaction U nderstanding Buyers and Sellers Focus on organizational buying Ethics compans ethical repuatation impacts customers purchase decisions social values set strandards for ethical s ethical Delimma Technology For 5 tray products arvlzes accuraxe and Iv Anfan ly and rest an Socizlgrou s e n a E E 2 vmegmy Tool for managing customers and customer relationships Information exchange We will cover this in chapter 5 Issues outside the circle 15 suffthat is happening around the sales process but within the selling firm Goals objectives and culture shapes employees39 attitudes and actions help determine policiesprocedures etc Human resources determines ability to recruit andtrain quality salesperson Flnanical internai environment Ennis mum tulmm Ens cu an davmnmam m H iEEhnnmqI umbiliqu urnn msnmm Sum mum rmnmi KESDWEEI mum m mam cnuahimas Product and Su ieCnain Ca abilities Service capabiiities where a iot oftnis vaiue add comes from in this reiationsnip buiiding process consistentiy nigh ievei of service is criticai provides competitive advantage RampD and technoiogy capabiiities major factor in whether firm wiii be industry ieader or foiiower and what they can offer Exampies 0 Southwest airiines o Piaces the empioyee attne center of its business modei o Promotes fun 0 O Fires peopie by quottryoutsquot Lends itseif to a favorabie service cuiture EXte rnai Environme nt umm 7 iGDV Janh wnnmm Wm m Wivmtzwn mmnuxmn mm mm Muqu Museum minAim onwnumenm um um more externai environment siides on pp In review What are two major areas of Contemporary Selling Model that we will study 0 Selling process 0 Sales management What are the 6 components of the internal environment Financial resources Human resources Research development and technological capabilities Productions supply chain capabilities Service capabilities Goals objectives culture What are the 5 components of the external environment 0 Social and cultural Technological Legal and political Economic Natural 000000 0 O O 0 Chapter 2 Suing Information to Understand Sellers and Buyers What did Tommy Boy do wrong He did not read the social situation very well we must know what the customers wants and needs are He did not ask the customer any questions Did not listen What did Timmy Boy do right He used less technical descriptions of the product He was passionate about the product Avoided totally technical talk Try to connect with the buyer personally The point Ifyou enter a career in sales you will face these negative stereotypes you must have strategies to combat them Be good atyourjob you have to know about to talk both technical and value added Be trustworthy sometimes you have to tell a client quotnoquot or quotmaybe this isn t the best time for you to buy our product Be passionate Attractive Aspects of Sales Autonomy they are one their own a lot and managing their own time 0 Self management exibility of schedule and work environment independence is valued still need results ethical dilemmas focus lob Variety not routine creativity changing internal and external environments Rewards intrinsic inherent to satisfaction selffulfillment enjoyment perceived success etc extrinsic awarded by company commission promotions awards Working Conditions exibility Career Multifaceted and challenging activities each customer you meet with comes with a different experience Financial rewards Favorable working conditions taking a lunch meeting working on the golf course Career development and advancement opportunities From Salesperson to CEO Understand the whole business Take on extra responsibilities Show your want it Gain self awareness Network network network Success Factors in Contemporary Selling Listening skills Follow up skills Ability to adapt sales style from situation to situation every person and situation will be different so you must have a different approach Tenacity sticking with a task Wellorganized Verbal communication skills Proficiency in interacting with people at all levels ofa customer s organization Demonstrated ability to overcome objections Closing skills Personal planning and time management Participants in the Organizational Buying Process Initiators we have a need in our company and he needs to go out and find it 0 Purchasing agent Users consider who is going to actually use the product or service In uencers buying within the company the peole who are actually paying for the product to be produced Gatekeepers receptionist sometimes get overlooked in the buying process The buyer The decider The controller Make up the bum39ng center Usually consists of 312 people Different amount ofin uence Team Selling Structure or system within the selling organization which works to present a unified wellcoordinated effort to the customer Customer relationship teams often headed up by the account manager Matrix organizations allow account executives to pull from the full range of functional resources within a company Antxcipatmn ur recugnmon DI a problem or need S39I39AEiF I39WE Determinatlon and desmiption of the trans and quality m me needed item THREE Search ur and quah canun ul potential suppiiurs UR ACqLMSIlLUII and analysxs of proposals or bids STAGE HVE Evaluanun of propusa s and selec an of suppliers STAGES X Se emmn nfan urderrou ne STAGE SEVEN Pevlmmance evalualinn and leedhack vT Stage 1 Antrcrpatron or Recogutron ofa Problem or Need 7 needs ansmgfrom customer demand day to day operatrons Inventory productron etc o Customers buy a lot of cars whxch means dealershrps need for cars the consumer aurelatedy o Derwed demand helps them gure out what exactly they need In thrs process e Other ways companies recognize a need7 o changes In the company roduct Stage 2 Determination amp Description of the Traits amp Quantities of Needed Items Should be precise Technicalrequirements Need to communicate to all members of the buying center requires internal and external communication What questions are important to ask 0 What is needed 0 How much is needed 0 When it is needed Step 3 Search for Qualification ofPotential Suppliers Single Source suppliers only one vendor used by a firm for a particular good or service to minimize the variation ofproduction inputs Example Toyota 0 Time in time production 0 Only produces vehicles that are already sold to a dealership Stage 4 Acquisition and Analysis of Proposal or Bids Request for proposal formal process for asking businesses to submit bids institutions governments etc Review catalogs websites etc Call their preferred vendor Stage 5 Selection of Suppliers Organizations BZB tend to make largely rational decisions Some organizations have policies or rules to govern how decisions are made Important rational criteria 0 Value added 0 Services offered Org buyers are still people so emotions and social factors can play a role Organizational memory Stage 6 Selection of an Order Routine Matching delivery with need Yield management systems Internal activities 0 Stocking 0 Inspection 0 Pay for products 0 Entered into delivery Entered into inventory Slotting allowance fees for the privilege of having the retailer set up a new item Stage 7 Performance Evaluation and Feedback Evaluation ofproduct and service delivery timeless ease etc Does product perform as required Formal and informal processes Follow UP Types of Organizational Buying Situations Newtask purchase customer is buying relatively complicated product for first time Modified rebuy wants to modify specs of order from current supplier Straight rebuy exact rep eat purchase Advantages ofin supplier vs outsupplier What are some of the key success factors in contemporary selling Types ofB2B Sales Sales to resellers eg retail stores Sales to business users General Electric selling part to Boeing for use in building airplanes Sales to Institutions Dell selling computers to a governmental agency 0 LSU is an example of an institution 0 Institutions consider their users more than the others 0 You must consider the end user who is going to use your product Types ofB2B sales jobs 0 Trade servicer primary responsibility is to increase business from potential and current customers by providing them with merchandising amp promotional assistance a PampG rep and chainstore personnel 0 Missionary seller primary role is to provide product information and other personal assistance Anheuser and bar owners pharmaceutical reps I Usually very hands on pharmaceutical reps 0 Technical Seller increases sales by providing technical or engineering info and assistance to customers GE rep and Boeing 0 New business seller identify and obtain new business building relationships with new customers I A special category Chapter 3 Value Creation in Buyer Seller Relationships value is more important when you are buying a service Role of Selling Marketing Marketing Mix Product 0 Promotioniwhere selling ts in Promotion Mix 0 Advertising 0 Public relations 0 Sales promotionsi 99 ofthe time sale promotions impact the price don39t always wor 0 Personal Selling 7 more one on one focus more in depth Integrated Mar 39 b 39 39 what is 39 in your advertisement should be communicated in your public relations have the same message throughout the entire company IMC programs Comprehensiveishould cover all parts ofthe rm Unified r everyone in the company should have the same impression eted 7 have a target customer Coordinated execution Productivity in reaching targets 7 spend the money when you make 00000 t e money Internal marketing is key 0 Everyone in the business must know what is going on and must present a united front to their customers Value is Related to Customer Bene ts Utility the want satisfying power ofa good or service Types of Utility pg 59 o F ormithe form of the product is what you expected the product does what is intended to o o Placeiconvenience is the product available where you want it 0 Time 7 is the product available when you want it 0 Ownership 7 you actually own it own exchange that happens Increasing value to the customer ex Letting kids drive the boatihe raied the bene ts forthe people on the boat 0 Raise bene ts 0 Reduce costs 0 Raise bene ts and reduce costs 0 Raise bene ts by more than the increase in costs 0 Lower bene ts by less than the reduction in costs 0 Want customer satisfaction and customer loyalty Value Chain Support activities Prim ry activities 1 Primary Activities that go into the buying process 0 Inbound Logistics how an organization get their sources how the firm goes about sourcing raw materials for production 0 Offer value by using recycled paper 0 Operatio ns how the firm converts the maw materials into final products 0 We can create value in this process by buying equipment that uses biodiesel making you feel good as a custo me r 0 Outbound logistics how the firmtransports and distributes the final products into the marketplace 0 Can add value by meeting delivery terms 0 Marketing and Sales how the firm communicates that value proposition to the marketplace 0 Service how the firm supports customers during and after the sale 0 Is everything working properly is everything okay on the shelves increases the sat and conform the buyer has with the purchase Support Activities 0 Firm infrastructure how the firm is set up for doing business 0 HR management how the firm ensures it has the right people in place trains the m and keeps them 0 Technology develop ment how the firm embraces technology use to benefit customers 0 Most companies have a yield management systemto control their inventory 0 Procurement how the firm deals with vendors and quality issues 0 These people are in charge of buying stuff and checking up with financial Lifetime value of a customer 0 Margin profit made by firm I Do I needto expand do I need to fire people 0 Lifetime value of a customer present value of the stream of future profits expected over a customers lifetime of a purchases I You want to predict the value of a customer their entire time as more of your customers 0 Firing a customer encouraging a customer to find alternative sources from which to purchase I If you have had the same customer for 5 years and theyhave yet to every change what they are buying their stock is n t 5x doing well how do I decide how long to stick with them No financial benefit outdated Communicating value in the sales process value proposition 0 0 000000 Product quality I Customers look for products that will last a long time and worth the price your paying Channel deliverables supply chain I How to the products get to me when do they get to me how can you add value as a sales person its going to be on your own time using new equipment so it reduces loss Integrated marketing communications I Increases value for customers so that everyone is on the same page Synergy between sales and marketing I What you advertise is what you get whats happenin on the marketing side is going on the sales side Execution of marketing miX programs I Does your product match your price Does your price match your promotions Quality of the buyer seller relationship trust I Adding value by having a relationship Service quality Salesperson perfessionlaism Brand equity Corporate imagerepuation Application of technology Price Service Quality Services differ from goods in that they eXhibit these unique properties 0 O O O Intangibility Inseparability Variability Perishability These properties create opportunities to add value to the firms overall product offerings Dimensions of service quality Reliability Responsiveness Assurance that they know what they are doing Empathy even though you may think your customers problem is minor it may be a big deal for them 0 Tangibles seeing the mechanic show up with proper tools and uniform Corporateimagereputation o A strong positive corporate image 0000 0 Provides a leg up on the competition 0 Brings confidence to clients 0 Can overcome other issues in making a sale 0 Brand equity the value inherent in a brand name in and ofitself Price 0 Value amount by which benefits to a customer exceed cost of doing business with a seller including a products price Low price may be a marketing strategy What did matt tell you about using price as a selling strategy I That you wanna focus on the value Managing Customer Expectations 0 Customer expectations management underpromise and overdeliver to create customer delight 0 Customer delight exceeding customer expectations to a surprising degree a powerful way to gain customer loyalty 00 Chapter 4 Ethical and Legal Issues in relationship selling Business Ethics moral principles and standards that Define right and wrong Guide behavior in the world ofbusiness Enron and WorldCom engaged in unethical and in some cases illegal activities Sales managers report 70 of clients consider a company s ethical reputation when making purchase decisions To which parties do firms have Social Responsibility Why Customers Employees Shareholders Supplies Government Creditors Issues with CUSTOMERS Dishonesty Gifts entertainment bribes 0 Difference between gift and bribes I Gifts non financial presents I Bribes financial presents given to manipulate purchase decisions it often works 0 Unfair pricing tactic Unfair treatment 0 Special treatment can be costly how o Other customers may feel they are not as important Confidentiality leaks when you tell your customer information that you should not tell them Issues with EMPLOYERS Cheating misrepresenting information to management Misuse of company resources rule of thumb adopt your own standard of living when traveling Inappropriate relationships with other employees and customers potential negative implications Issues with SALESPEOPLE Sales pressure applied too forcefully may constitute unethical behavior 0 Ifyou set unrealistic quotas that your employees cant reach there is a good chance they will be unethical about how they meet quota Deception misleading or misrepresenting something Abuse of salespersons rights 0 Not following policies related to termination 0 Not maintaining confidentiality 0 Not creating a work environment free of discrimination race or gender bias 0 Not following policies regarding performance appraisals and compensation Errors of omission versus commission Issues with COMPANY POLICY Unethical Corporate Culture unethical or illegal behavior is tolerated or encouraged Unfair corporate policies managers must consider unique INTERNATIONAL ethical issues Cultural differences norms accepted behaviors beliefs Differences in Corporate Selling Policies adjust selling policies to different countries Ethical Checklist Figure 48 Relevant Information Test Involvement Test Consequential Test Fairness Test Would I do this in front of my mother 0 Ifnot don t do it Test 2 notes Chapter 6 Prospecting and Sales Call Planning Steps in the Sales Process Prospecting and Sales Call Planning Communicating the Sales Message Negotiating for Win Win solutions Closing and Follow Up Two steps combined in this teXt Require different skills FWN Qualifying the Prospect MADDEN Does the prospect have Money 0 Ifyou don t have something to exchange then I am not interested Is the prospect Approachable 0 Can you get to the person to make the decision Is there a Qesire to purchase 0 Do they need your product Ifnot then there is no desire Is he or she the actualQecision Maker 0 You don t want to waste your time talking to something that cannot actually buy your product Is the prospect Eligible to purchase 0 Are they in the middle ofa contract with someone else Does the prospect have a demonstrated eed 0 Sometimes I need something but have no desire to purchase it car breaks we all need them but don t want to spend money on them 5 key questions Qualifying the Prospect 1 Does the potential prospect appear to have a need for your product or service 2 Can the potential prospect derive added value from your product in ways that you can deliver 3 Can you effectively contact and carry on communications with the potential prospect a Face toface electronic geography 4 Does the potential prospect have the means and authority to make the purchase a Do they have money and are they the decision makers 5 Does the potential prospect have the financial capability to make the purchase 51 From leads to custthgrs cusmmars Leads anyone at all who might be interested in the product have notbeen qualified people applying to colle e Prospect have been qualified legit possibilities not just tangible possibilities those that meet the GPA requirement to apply Customers Leads vs Prospects Difference between a lead and a prospect have not been qualified 0 Many more leads than prospects 0 Many mo re prospects than customers What major topic have we discussed already can generate leads and help qualify prospects CRM customer relationship management Prospecting is a priority when mer goes out of business Your contacts in a client firm leave Your firm needs to increase revenues A customer moves to a location outside your sales territory 52 Sources of Prospects 9 o Loyal customers Referrals WOM I Customer advocacy defines a loyal customer that goes out and actively tries to get you customers Endless Chain Referrals I 100 referrals Networking What are the sources of networking I What is a bird dog Directories Internet Telemarketing Written Correspondence Cold Calls calling someone you don39t know a lot about I Difference between cold and warm call 0 0 00000 o Prospectingby others in firm 0 Other prospecting Steps in a Prospecting Process 1 Set specific measurable attainable relevant and time bound goals SMART 2 Study and practice various methods 3 Keep good recor s 4 Be prompt in followup 5 Pat attention to results of your efforts Overcoming Call Reluctance Call Reluctance your nervous hesitant about making contact with the customer Sales Managers can help salespeople by 0 Using role plays and exemplar videos 0 Prospecting with salespeople 0 Setting realistic goals 0 Training salespeople to view prospecting as a numbers game 0 Supporting salespeople in targeting longterm clients Elements of the Preapproach before you contact client 1 Establish goals for the initial sales call T ave the prospect 0 Agree to demonstration ofyour product 0 Agree to contact your references o Initiate the process to se your company as a vendor 0 Set up another appointment with you 53 Items to Research Before Sales Call Information on the Person information on the Company Name Size of firm Persona interests Types of products offered Persona one 5 Other vendors currently used Attitude toward salespeople in general re impression 01 your company and its products decisions are made lbuying center or Any history o dealings with your company otherwise How rewardedcompensated by the rm Purchasing history or competing products Receptivity to socializing wtlh salespeople General policies on buying and vendor relatio is Any unusual or especially relevant current circumstances Corporate cultu How 39 Learn all you can about the prospect in advance 0 You MUST plan 0 Many sales are lost before the first sales call 0 Do not waste time your or others 2 Learn all you can about the prospect Categories ofProspects 1 Direct type Type A personality Impatient Direct Demanding Interested in the Bottom Line 2 Interpersonal buyer Friendly excitable not focused on details Focus on people aspects 3 Saftey or status quo type Calm not easily excited listen carefully ask questions Need logic secure commitment piece by piece 4 Contemplative buyer Quiet detail oriented asks questions Provide facts details go slowly do not invade private space 3 Plan to portray the right image Tips for a Professional Image 0 When in doubt dress up to business attire 9 A 1 H w a pain quot0H Aw A Anm39nncl r 0 Never dress down below the client s level of attire 0 Dress in business casual if the client suggests it 0 Good hygiene Other components of a professional image 0 Reputation 0 Preparation I Confirmingappointments I Research 0 Treating gatekeepers with respect 0 Showing up on time 4 Determine the approach Telephone Email Letter Inperson interview 5 Prepare the presentation How much technology should I employ and what types 0 Drawbacks of technology How formal should the presentation be How long should it be How long for QampA 0 Planning What materials should I send the prospect in advance and what should I bring with me Chapter 7 Sales Presentation Delivery ofinformation relevant to solving the customer s needs Often involves a product demonstration Characteristics ofa great sales presentation 71 0 Explains the Value Proposition 0 Asserts the advantages and benefits of the product 0 Enhances the customer s knowledge of the company product and services 0 Creates a memorable experience Sales Presentation strategies Focal Point of Presentation Memorized P uct 9010 Presentation Strategy Formula quot Product I 7030 Need satisfaction Customer I4060 Problem solving Customer I 3070 I o Memorized Presentation I May discuss some areas not important to the customer and leave out some that are 0 You might be giving them something they do not need Tend to seem high pressure 0 The customer does not get a lot of feedback Ensure consistent delivery 0 Your giving them the whole spsheal Are able to deliver more information in the same amount of time I Very structured approach 0 Formula Presentations AIDA I Get the customer s attention I Create interest in the product 0 Tell them about how you can see this working for them 0 More listening that your doing here I Develop a strong desire for the product I Move the customer to action 0 Need Satisfaction Presentations I Need identification stage questioning the customer to discover needs listen to what customer has to say I Need analysis stage by combining knowledge of the company s products and services with the recognition of the customer s needs determining how to best meet those needs I Need satisfaction stage presenting the company s solution to the customer s needs I Problems that could develop Research could be awed What they are telling you isn t really there problem Information is limited and could be wrong so your recommendation wont work out 0 Problem Solving Presentation I Focus on customer I Consider the most complex and difficult presentation strategy I Preferred presentation strategy in relationship selling Presentation Goals and Objectives 0 Educate the customer I On how you can solve the problem 0 Get the customer s attention Build interest for the company s products and services 0 Nurture the customers desire and conviction 0 Making a good impression 0 Before the meeting never make the customer wait 0 Greeting the customer I Dress appropriately I Turn off or silence all wireless communication devices I Be organized o The first three minutes I Build rapport I Noncontroversial subjects Objectives of the Customer Approach 0 Get the customer s attention 0 Create enough interest in you your company and its products and services that you can continue the presentation 73 Approaches to the Sales Presentation 0 Referral 0 Customer Benefit 0 Question 0 Assessment 0 Product demonstration Chapter 7 Role Play quotHappy Teeth pg 185 What elements ofneed satisfaction presentation should AleX have used 0 Need identification stage questioning the customer to discover needs listen to what customer has to say 0 Need analysis stage by combining knowledge of the company s products and services with the recognition of the customer s needs determining how to best meet those needs 0 Need satisfaction stage presenting the company s solution to the customer s needs What is the sales managers role o Mentor help salesperson improve their presentation skills 0 Salesperson especially at presentations to large customers 0 Equip salespeople for success I Training I Equipment I Motivation compensation The Sales Presentation Apply your 1me knowledge to 833 cus omer customer cu am r needs needs needs A I A 1 Questions 1 Sell FAB 1 Customer 2 Active 2 Company s Agreement Listening Cumulative 2 Minimize 3 SPIN Knowledge Change Categories of Questions Questioning Drives a Great Presentation Unrestrictedrestricted questions encourage the customer to share information o Unrestricted encourage the customer to speak more freely and salesperson to develop a richer understanding of the customer s needs open ended Restricted provide speci c information from the customer that the salesperson can use to shape the presentation yesno or short answers Data collection questions 0 0 Gather basic data about customer s current business or historical perspective 0 Limit use in presentations I May provide information that interferes with elements of the presentation I Customer may perceive a lack ofpreparation Investigation questions assess the customer s current state of mind Validation questions help get agreement from the customer 0 Does this sound like something you would be interested in Does this sound like something that would help your store 76 The Spin Selling Approach Finding facts about the customer39s existing situation Situation uestions c c Q Conflrmlng 1nfo you already know Problem Questions Learning about the customer39s problems Implication Questions Learning about the effects of the customer39s problems Need Payoff Questions Learning about the value of a proposed customer solution Questioning Drives a great presentation 0 Situation questions provide basic information about the customer s situation 0 Problem questions get the customer concentrating on particular 1ssues o Implication questions help the customer recognize a problem s implications 0 Need payoff questions directly connect the problem with the value proposition Listening In sales listening is as or more important than talking Most people listen actively only 25 of the time Most people can hear up to 800 words per minute but only speak around 140 words per minute Active listening requires commitment to focus on the speaker concentrate on what is being said and take in nonverbal as well as verbal messages 0 77 Guidelines for Active Listening I Listen patiently I Try to understand the feeling the other person is expressing Restate the person s feeling Allow time for discussion to continue without interruption Avoid direct questions and arguments about facts Repeat points you want to know more about Listen for what is not said When solicited be honest in your reply I Do not get emotionally involved I BE QUIET Sell FAB Feature any material characteristic or specification of the company s products or services Advantage a particular productservice characteristic that helps meet the customer s needs Benefit the beneficial outcome to the buyer from the advantage found in the product feature Demonstrations Benefits 0 o Create a greater connection between the customer and the product 0 Enhance the effectiveness of your communication Prepare 0 Develop objectives 0 Get customers involved 0 Practice practice practice Value Proposition Summary of value customer receives based on expected benefits and costs Should be part of every presentation Nonverbal Communication Nonverbal communication is the most important element in the communication process Less than 10 of communication is based on what we say Customer Nonverbal Communication Face single most important feature in nonverbal communication Arms and hands open indicate person is open to communication Body language 0 Leaning forward interest 0 Leaning backward lack of concentration 0 Quick movements change of mind Sales Managers Role Mentor help salespeople improve their presentation skills Salesperson especially at presentations to large customers Equip salespeople for success 0 Training 0 Equipment 0 Motivation Chapter 8 Negotiating for WinWin Solutions Summary of Customer Concerns Do I need your product 0 Product need 0 Your Product need Do I Trust your company 0 Unease about your company 0 Loyalty to an existing supplier Role Play Exhibit 81 What concernsobjections should Alex and Rhonda have anticipated I don t really know you I Need more time to consider your product 0 An attempt to stall the sale Is this your best price 0 Add value to the total package 0 Price should never be the main issue 0 Price is your friend not your enemy Do I need YOUR product 0 Companies try very hard to help customers understand the need for their products 0 Salespeople hope to maximize the customer s satisfaction by helping them select the product that best fits their needs Do I trust your company 0 Relationship selling is based on mutual respect and trust 0 Initial unease about your company concern over ifyou can deliver what where and when they need 0 Loyalty to the existing supplier Do not speak negatively of their supplier rather focus on your products and company I don t really know you 0 Use this concern to build the relationship by asking the customer to put you to the test rather than getting defensive 0 Focus on building the relationship between the company and the customer not the salesperson and the customer I need more time 0 May be a legitimate concern about moving too quickly with a purchase decision 0 Two key reasons behind a purchase stall I Uncertainty about using something new I You have failed to prove the value proposition Exhibit 83 Negotiation Strategies Question Direct denial Indirect denial Compensating for deficiencies Feelfeltfound Thirdparty endorsements Bounceback Defer Trial offer Direct Denial Confrontational strategy for dealing with customer objections Customers may react negatively Use this strategy when the customer states a clearly false and damaging statement about you the company or your product Avoid being offensive insulting or condescending Indirect Denial Less threatening than direct denial Begin by agreeing with the customer validating the objection then explaining why it is untrue Compensating for Deficiencies This moves the customer from focusing on a feature your product performs poorly to one in which it excels The key for this strategy is that the new feature must be important to the customer LOOK AT DISCUSSIONS ON POWERPOINT FeelFelt Found Acknowledge the customer s feeling Extend the same feelings to a larger audience Counter with a legitimate argument Caution This technique has been around for a long time Third Party Endorsements The use of outside parties to bolster your statements in the presentation Adds credibility to your company and product This can be combined with other strategies TEXT ON POWERPOINT BounceBack Defer Trial O More aggressive than some other strategies Turns a customer s concern into a reason for action Often very effective with objections about needing more time or a lower price Used when a concern is raised but it will be addressed later in the presentation Suggest that the customer listen to the entire presentation in order to fully appreciate all the features advantages and benefits of the product Most often used when the customer raises a concern about cost before the value proposition has been fully addressed ffer One of the best strategies to calm customer objections but does not replace a good sales presentation Allows the customer to try out the product without the commitment to purchase Clearly define the terms of the trial offer beforehand Make sure the customer is fully educated on the product Sales Manager s Role in Negotiating WinWin Solutions Salespeople need to know they have the authority to negotiate with customers and resolve their concerns Salespeople need to have the confidence that they can negotiate whatever is necessary Company personnel must also know the salesperson speaks for the company When the customer objections exceed the salesperson s authority the manager is there to step into the negotiations Even while taking over the negotiation the manager should keep the sales person fully informed Managers support is critical to the salesperson s success Chapter 9 Closing the Sales and Follow Up ROLE PLAY What is a Close Closing the sales means obtaining a commitment from the prospect or customer to make a purchase 0 It s never a deal till you have paperwork Closing connotes the achievement of those sales call goals Selling is NOT a linear process 0 The close should be part ofa natural progression of the dialogue with the customer 0 Closing can happen at any point in the selling process not just at the end of the sales presentation 0 Use active listening skills to identify customer buying signals verbal and nonverbal throughout the dialogue and act on the signals by closing immediately 0 Remember to take on the buyer s perspective while closing to work toward a winwin solution 0 Identify and use the best approach to closing based on the circumstances Closing Methods 0 It is critically important that any closing technique be customized to the buyer and the situation 0 Two skills important for any closing method I Active Listening Monitor the dialogue for the appropriate time to close I Silence Give the prospect time to respond to your close 0 7 Closing Methods I Assumptive Close I Minor Point Close I Alternative Choice Close I Direct Close I SummaryofBenefits Close I Balance Sheet Close I BuyNow Close Seven Closing Methods 1 Assumptive Close The salesperson is making an assumption that the sale is going to happen Allows the salesperson to verbalize the assumption ofa sale to see ifit s correct quotI can ship it toyou on Monday I Ilgo ahead and schedule that o quotLet sget this paperwork IIed out so we can get the order into the system quotYou need Model 455 to meet your speci cations I ll call and reserve one for you O O Equot A F 0quot Fquot Handle all communications with prospects with an attitude that heshe will ultimately buy Minor Point Close Focuses the buyer on a small element of the decision 0 quotWhat color do you prefer 0 quotDo you want to use our special credit terms 0 quotWhen wouldyou like our technical crew to do the installation 7 Agreeing on something small re ects a commitment to the purchase and to move forward with the deal Alternative Choice Close Gives the prospect multiple choice options none of which is not to buy at all 0 quotWhich works best for your application Model 22 or Model 35 0 quotWould you like this delivered tomorrow or would Monday be better 0 quotDo you want it with or without the service agreement The focus is on choosing between viable options Direct Close The most straightforward method Simply ask for the order 0 quotIt sounds to me as though you are ready to make the buy Let sget the order in to the system 0 quotlfthere are no more questions I can answer I would sure like us to do business today What doyou say Highly effective when the prospect is showing strong buying signals or seems to be a straight shooter Summaryof Benefits Close Relatively formal method for closing Reviews the benefits accepted reminds the buyer why the benefits are important then asks a direct closing question 0 quotMs Buyer we ve agreed that our product will substantially upgrade your technical capabilities allowyou to attract new business and all the while saveyou money isn t that right Let sgo ahead and place the order today I will have my service technician out to train your sta fnext week Balance Sheet Close Gets the salesperson directly involved in helping the prospect see the pros and cons ofpurchasing Creates a two column list quotReasons for Buying and quotRemaining Questions Helps find out what is holding the prospect back 0 quotMr Buyer let s take a few minutes to list out and summarize the reasons this purchase makes sense for you and also list any remaining questionsyou may have This will help us make the right decision 7 Buy Now Close Creates a sense of urgency with the buyer to purchase immediately must be honest and real 0 quotWe have a price increase on this product effective in two weeks Orders placed today can he guaran teed to ship at the current price 0 quotMy company is running a special this week This product is currently 20 percent 0 the regular price 0 quotI m almost out of stock on this product in our warehouse Dealing with Rejection Remember the difference between selfworth and performance Engage in positive selftalk Don t assume you are the problem Positively anticipate the possibility of rejection and it will not overwhelm you Consider that not buying is a rational decision due to underlying reasons Excelling in the preapproach Ch 7 will buffer you from taking rejection personally Attitude is Important Critical determinant ofwhether a close is successful is attitude Attitude Represents the salesperson s state of mind or feeling with regard to a person or thing Attitude is infectious Successful salespeople display tenacity sticking with a task even through difficulty and adversity Approach closing by envisioning a successful outcome with the buyer which encourages a positive attitude Identifying Buying Signals The appropriate time for a close is driven by the buyer s readiness to commit Buying Signals verbal and nonverbal cues that the customer is ready to commit to purchase New salespeople have trouble closing often due to ignoring or being insensitive to the cues Verbal Buying Signals o Verbal Buying Signals which indicate a commitment to purchasing 0 Giving Positive Feedback quotl like the new features you described 0 Asking Questions quotWhat colors does it come in 7 o Seeking Other Opinions quotWho are the other rms that have bought your product recen y 0 Providing Purchase Requirements quotMy orders m ust be split among four warehouses Nonverbal Buying Signals o Relaxed friendly and open 0 Bringing out paperwork to consummate purchase I Eg purchase orders sales contracts etc o Exhibiting positive gestures or expressions I Eg leaning forward eye contact etc o Picking up sample andor literature and examining it o The more the prospect is attentive and involved in your presentation the more likely heshe is ready to close Trial Close Comm Use a trial close when you detect one or more buying signals May elicit a negative response because buyer still has some objections that must be overcome Can be used at any time during the sales process never feel compelled to deliver a presentation to a buyer who is already sold A trial close that works becomes the Close on Closing Mistakes Harboring a Bad Attitude A positive approach is infectious Show confidence honest enthusiasm and display tenacity Ineffective PreApproach Complete the advanced research and planning Failure to plan leads to poor results in closing Do not look illprepared Talking Instead of Listening Listening is critical to understanding your buyer their needs objections catching buying signals and knowing when to trial close One size fits all Approach Closing methods should be carefully selected to fit the buyer and situation Don t be a quotclosing robot Fear of ClosingFailure to Close Asking for the sale is a natural part of the process Overcome fears of quotpulling the trigger Uncertainty about postclosing action Once the purchase is made firm up the details Do not linger it could talk the buyer out of the sale FollowUp Enhances Relationships Create value for the customer by providing excellent service after the close Dimensions of service quality Ch 3 are essential to successful followup activities Reliability being consistent you know your going to get the same thing every time Responsiveness Assurance O OO o Empathy when you go to the doctors office they make sure to get you in on time you want them to acknowledge your feelings o Tangibles the things you can touch Customer Complaint Behavior Customer s unmet expectations are perceived as a performance gap which lead to customer complaints The most common sources of complaints are Product delivery Credit and billing Installation ofequipment Custom er training Product performance Communicating about complaints 0 Salespeople are not absolved from communication just because the sale is complete 0 Properly handled complaints are perceived as service recovery 0 Wellhandled complaints can solidify the longterm customer relationship OOOOO Handling Postsale Problems Listen carefully to the customer Never argue Always show empathy Don t make excuses Be systematic Make notes about the details of the complaint Express appreciation Don t wait to follow up 0 Be proactive don t wait for a complaint 0 Check with the customer right after the delivery to ensure expectations were met 0 Be mindful of etiquette when using email as a followup tool Sales Manager s Role in Closing Provide opportunities for salespeople to learn and practice listening skills Create a healthy environment for closing which promotes the winwin solution Promote positive attitudes and debrief salespeople after rejection experiences Realize the power of the followup SUMMARY Do not fear closing Closing the sale is a natural outcome of the sellerbuyer dialogue r Ve rbalnonverbal leuylng slgnals are lmportant to tlme the close 7 Avold common closlng mlstakes r Use followrup as a proactlve tool not a reactlon to complalnts Chanter 10 Self quot39 Time and Territorv why time anal territurymanagement ls lmportant Reasons fol Salespenple Reasons fol Sales Managers lncrezlse plodHCIIVIW EHSHVE Ke lmf HHKI CHSIOHWV covetagel 2 llllllrave cllslomel relaliunslllps Z erllnllze sales expenses Enhance pursunalcunfldence 3 4t Allgn cumpany pnllcles with customer expectations Three reasons for SALESPEOLE 1 39 39 39 the salesperson wlll not meet sales targets 2 Impruving custumer relutiunshipsiB nt and effectlve ln face tlme Wlth customers It ralses the customers Oplnlon ofthe entlre organlz Ion 3 Enhancing persurlul cun denceilavlng the tlme to prepare for each custo er enhances comfort level con dence and reoluces stress Four reasons for MANAGERS 1 Ensure territury and custumer cavemgevltal for all customers to have a salespersonteam to bulld a relatlonshlp Wlth v v v v a l r tlme whlle mlnlmlzlng nonrselllng tlme problem be flxedand pp 1 um l capltahze on 4 Allyn 39 39 w39 39 lnfon39natlon to help plan terntones andtralnlng for salespeople Salespeople39s Role ln Tlm ntory 7 Two cntlcal questlons forsalespeople to conslderln managlng thelrtlme anol ter ory o What ls the most efflclent use of mytlme7 o at ls the most effective wayto manage my terntory7quot r Efflclenttlme management o lolentlfy personal anol Professlonal prlorltles e Goals l Career lsiprofesslonal andAccountPrlorltles o Develop a Tlme Management Plan Dally even sche u e I WeeklyMonthly Planning Calendar I Organization of Critical Information 0 Develop a territory management plan I Also know as the routing schedule 0 Maximize facetoface selling time o Minimize non selling time 0 Provide adequate territory coverage for customers 0 Provide territory feedback to management I Inform the manager about what is happening in the sales territory new customers changes in purchasing patterns etc Historically changes in territories would have to be mapped out by the managers and salespeople now sophisticated programs can create effective routes 0 TerrAlign now has eMap which allows companies to realign territories over the Internet 0 Sales Manager s Role in Time and territory management Manager s have two critical roles 0 Design the most effective sales territories 0 Measure the sales performance of the company s products customers and territories Design effective sales territories o Create sales territories that are roughly equal in sales potential and amount ofwork it takes salespeople to cover them effectively 0 protentials are made to be equal it is easier to I Evaluate performance I Compare salespeople I Improves sales force morale I Diminishes disputes between salespeople and management 0 FINISH SLIDES FROM CHAPTER 10 PRACTICE QUESTIONS 1 The process of moving leads to prospects to customers can be best portrayed as an UPSIDE DOWN TRIANGLE 2 Time management tools allow salespeople to so all of the following except TRACK CUSTOMERS SCHEDULE 3 Rhonda A resort hotel manager makes it a point to get to know the staff at the local tourist information office She knows the staffpeople can be helpful as BIRD DOGS a Bird dogs are not necessary someone who is your customer 4 Loren was in the middle of a sales presentation when he realized he was losing the attention of the customer He asked his sales partner to close the presentation Loren knows one of the characteristics ofa great sales presentation is CREATES A MEMORABLE EXPERIENCE U1 0quot 8 9 Which of the following is a weakness associated with memorized sales presentations ALL THE ABOVE DISCUSSING ASPECTS OF THE PRODUCT THAT ARE NOT IMPORANT TO THE CUSTOMER LIMITS CUSTOMER PARTICIPATION OFTEN SEEMS HIGH PRESSIRE SALES T CUSTOMERS When developing a relationship with a new customer the focus should be on the relationship between the COMPANY AND THE CUSTOMER a You don t work for the customer you work for the company b When the salesperson leave the company is still there Iorge is preparing his sales presentation He knows that a critical part of preparation is to PREEMPT CUSTOMER OBJECTIONS a Anticipate what the customer would complain about and address it before it happens quotDo you want to charge the purchase or will you be paying cash is an example ofa ALTERNATIVE CHOICE close With a buynow closing the benefits of the acting now must be REAL a It must be honest and real 10 Salespeople need to make sure career and professional priorities are CONSIDTENT WITH life priorities


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