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MKT504- Test 2 Review

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Ryerson University
MKT 504
Roy Morley

MKT504: Test 2 Review Chapter 6 Customer – Focused Sales Dialogue Planning Sales Call - When a salesperson and buyer meet in person to discuss business - Usually takes place in the customer’s place of business, but also somewhere else (trade show) Sales Presentations - Comprehensive communications that convey multiple points designed to persuade the prospect or customer to make a purchase - Focus on customer value and only take place after the salesperson has completed the ADAPT process - Salespeople who attempt to make a sales presentation before building a foundation through sales dialogue risks being labeled as noncustomer oriented and aggressive Sales Communication Formats Canned Sales Presentations - They include scripted sales calls, memorized presentations, and automated presentations - Telemarketing industry highly relies on this format - Common in trade show product demonstrations - Objections and Questions can be anticipated in advance, therefore a response can be formulated to appropriate it - This format highly assumes that all buyers needs and motivations are homogeneous = not a good way of personal selling - Customer opportunity to interact is minimal - Do not handle interruptions well - Good for narrow product line along with a inexperienced sales force Written Sales Proposals - Complete self-contained sales presentation but can also be accompanied by sales dialogues before or after the proposal is delivered - Should only be prepared after the salesperson has assessed the buyer’s situation - Highly associated with important, high dollar volume sales transactions - Usually viewed as more credible than speaking - Focuses on customer needs and benefits the seller offers - High level of detail is included - Most proposals provide a triggering mechanism such as a proposed contract and some follow up action 5 Parts to a Proposal - Executive Summary o It should explain the salesperson’s understanding of the customer’s needs and the relevance of the proposed solution o Spell out the customer’s problems and the nature of the proposed solution o Build a desire to read the full proposal - Customer Needs and Proposed Solution o Consists of 2 parts  Situation Analysis  Recommended Solution: focus on the benefits not the product or service being sold - Seller Profile o Contains information that the customer wants to know about the selling company o Emphasize on the company’s capabilities o Case histories of customers whom the company solved similar problems with - Pricing and Sales Agreement o Ask for the order o Present the pricing and information and delivery options - Implementation and Timetable o “If you like the proposal, and want to act on it, this is what you do” - Evaluating Proposals before Submission Organized Sales Dialogues - Process of converting the prospect into a customer, it usually takes multiple sales conversations and these sales conversations constitute an organized sales dialogue o Ex: first by telephone, then appointment - Not a one way presentation, requires high level of customer involvement - This method is usually favored over the other two methods - Allows much needed flexibility to adapt to buyer feedback and changing circumstances during the presentation - Allows full exploration of customer needs - Can have portions of canned presentation 3 Stages of Trust - Based Selling Process 1. Need Development (Seller talks for 60-70%) 2. Need Awareness (verify what his needs are) 3. Need fulfillment (how product will deliver) Sales Dialogue Template - Not scripted - Useful tool to ensure that all pertinent content areas are covered with each prospect Section 1: Prospect Information - Company name, key decision maker’s name, job title, type of business Section 2: Customer Value Proposition - Statement of how the sales offering will add value to the prospect’s business by meeting a need or providing an opportunity - “Why should I spend my time with you” - Why the customer will be better off with your company Section 3: Sales Call Objective - States what the salesperson would want by the end of the sales calls o Confirmation of order, agreeing to participate, etc. Section 4: Linking Buying Motives, Benefits, Support Information, and Other Reinforcement Methods - Buying Motives: most important factor from the customer’s perspective in making a purchase decision o Rational: relate to the economics of the situation, cost, profit, quality, etc. o Emotional: such as fear, the need for security, the need for status  Difficult for salespeople to uncover as prospects tend to not reveal these motives o In B2B selling, rational motives are most important - Features: factual statements about the characteristics of a product o “This is the lightest electrical motor in its performance category” - Benefits: describe the added value for the customer – the favorable outcome from a feature o “The lightweight motor supports your mobile repair service strategy” Section 5: Competitive Situation - Asks salesperson to identify competitors and to specify their strengths and weaknesses Section 6: Beginning the Sales Dialogue - Addresses the critical first few minutes of the sales call - Propose an Agenda first, and then proceed to ask questions designed to assess the customer’s situation and discover their needs - The ADAPT questioning system can be used to acquire information Section 7: Anticipating Questions and Objections Section 8: Earning Prospect Commitment - Ask for a customer’s purchase decision - Should be natural and not forced Section 9: Building Value through Follow-Up Action - Enhance the relationship to move it in a positive direction Chapter 7 Needs Gaps Analysis Linking Solutions to Needs - Strive to communicate three crucial factors 1. How buyer needs will be met or how an opportunity can be realized as a result of a purchase 2. How the product features translate, in a functional sense, into benefits for the buyer 3. Why the buyer should purchase from you as opposed to a competitor salesperson Benefit Selling - Features answer the question, “what is it” - Potential Benefit: describes a general form of value that is assumed to be of importance by the salesperson but is not yet acknowledged by the buyer - Confirmed Benefits: once it is acknowledged ^ - Salespeople can be more effective by selling benefits rather than features - Features and benefits are not enough as they can cause buyers to ask “so what”, confirmed benefits are persuasive and helps move the sale forward by creating added value Check backs or Response Checks - Seeking feedback from customers, a common name for questioning - Employed at 2 key points 1. After a specific feature – benefit sequence in to confirm and better assess the prospective buyer’s level of interest 2. Following the response to an objection in order to evaluate the level of which the salesperson has handled the problem - The more positive affirmations a salesperson receives in relation to his or her response checks, the easier the final purchase decision becomes and the more confident the prospective buyer is in having made the appropriate decision Interesting and Understandable Sales Dialogue Verbal Support - Elements include voice characteristics, examples and anecdotes, and comparisons and analogies Voice Characteristics - Pitch and speed of speech - Adds emphasis and increases impact - Fluctuating the speed of speech can add emphasis and guide the buyer’s attention to selected points of the presentation Examples - Brief description of a specific instance used to illustrate features and benefits - Can be real or hypothetical Anecdote - Type of example presented in the form of a story describing a specific incident or occurrence Comparisons - A statement that points out and illustrates the similarities between two points - Increase buyers level of interest and understanding of information Analogy - A special and useful form of comparison that explains one thing in terms of another - Useful for explaining something complex by allowing the buyer to better visualize it in terms of something familiar that is easier to understand Engaging and Involving the Buyer - Sales aids help maximize the effectiveness of the sales dialogue and also helps capture and hold the buyer’s attention, boost buyer understanding, increase the believability of the claims and build the buyer’s retention of information Types of Sales Aids Visual Materials - Printed materials, photographs, charts Electronic Materials Product Demonstrations Using Sales Aids in the Presentation - SPES o S – State selling point and introduce the sales aids  Include feature, potential benefits and then introduce the sales aids  “To demonstrate this benefit, I would like to show you this video” o P – Present the sales aids o E – Explain the sales aids o S – Summarize Supporting Product Claims Statistics - Facts that lend believability to claims of value and benefit - Stats from authoritative, third-party, sources carry the highest credibility Testimonials - Similar to statistics, but in the form of statements from satisfied users of the selling organization’s products and services - Excellent methods to build trust and confidence - Especially effective when they are on the recommending user’s letterhead and signed Group Sales Dialogue - These groups are formed together to pick at the salesperson’s expertise - They have a committee including technical specialists, finance and accountant personnel, etc. - They demand in-depth information Sales Tactics for Selling to Groups (3 categories) 1. Arrival Tactics a. Opportunity to set up and check visual equipment, prepare collateral material, and be comfortable with the surroundings 2. Eye Contact a. Eye contact with individuals is very important b. Most effective way is try to connect with each individual or small subgroups for a few seconds 3. Communications Tips a. When selling to groups, it is essential to make all members of the group feel that their opinions are valuable b. No rules, just use best judgment Handling Questions in Group Dialogue - Dramatic, and salespeople should anticipate group questions and then decide whether to address the question before it arises or wait and address the question should it arise during the presentation Chapter 8 Addressing Concerns Sales Resistance - Anything the buyer says or does that slows down or stops the buying process Reasons Why Prospects Raise Objections 1. The prospect wants to avoid the sales interview a. View his or her call as an interruptions 2. Salesperson has failed to prospect and qualify properly a. Poor prospects slip through the screening process b. Salesperson should attempt to qualify the prospect during the sales calls 3. Objecting is a matter of custom a. Buyers like to have a motto to never buy on the first call with a salesperson b. Since trust has not been developed c. Or to test the salesperson’s persistence 4. The prospect resists change a. Many prospects simply resist change because they dislike making decisions 5. Prospect fails to recognize a need a. Unaware of a need, uninformed about the product, content with current situation b. Lack of need creates no motivation 6. Prospect lacks information a. If the salesperson diagnoses correctly and presents the right information, then the resistance problem can be more easily overcome Types of Sales Resistance - As a nonsupplier to the company, the salesperson must continue to call on the buyer and look for opportunities to build trust with the prospect - A prospect generally obtains information in five areas o Need, product features, company, price, and timing of the buy o Therefore, objections come from all these areas Need Objections - “I do not need your product” - Could be because they do not have time, or money - Most buyers don’t realize they need something until a situation occurs o Therefore, to pique their interest, show them with relevant information (benefits and features) that can stimulate need awareness Product or Service Objections - Some objections could be emotional o How it feels, looks, preference - Salesperson should find an adequate job of fact-finding and qualifying, these
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