Overview of Personal Selling Approach Personal Selling in a Parallel Way • B2B || You and the interview process • Ask for the order, asking for the business • B2B: products, services quality is the same, 6 sigma • You: How do you differentiate yourself? o By creating value • Same quality, same cost structure and same amount of pressure on profit today o Categories: defining markets; ex. Beer industry B2B Perceptions • Relationship and CRM • Study body language • Trust – low level, don’t trust businesses • Pushy sales people • Personal agenda • Unethical • Client entertainment – over due to cost and competition • Communicative value – put relocatable at bottom of resume To Be Successful • Preparation o Target companies, research them • NCE, Next Compelling Event o Cornerstone of relationship, detail focused o Talk abut contracts, training, etc. • Ask for the order! 4 Reasons Businesses Exist • Revenue – especially important for nonprofit • Market Share • Profit • Return on Stakeholder Equity Communication • 95% of business problems due to communication error emails are the most common form of communication in business CRM • • •

Relationship, partnership Sales people are solution providers (customer profile sheets) B2B: appointment 50%, You: interview 50% o Granted appt because business has a need o Whether it’s a product or service, address the need directly, what will be a benefit in addressing the need o Look at category and share of business you have with them o Relating that to the needs = customizing to company need

Basic Objectives of Business • 1. Revenue

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2. Market Share 3. Profit 4. Return of Stakeholder Equity o (we are hired to contribute to all 4)

Key Thoughts: • Sales driven by need, solving problems, time • It is a profession • Solution provider • Develop and enhance CRM Introduction • Change from “sales pitches” to collaborative dialogue with the customer o Discuss situation and needs before salesperson makes a purchase recommendation o Buyer focused research • Focus presentation on o Defining the customer’s needs o Explaining the value the customer can get, and o Having the consumer verify value • Customer-centric strategy • Carol Marks o VP of Industrial Distribution Group o Limit PPT slides o Encourages salespeople to arrive prepared for business conversation o Customers not interested in technical aspects, but want to know how the salesperson can help them meet their own unique objectives LO1: Personal Selling Defined • A successful professional salesperson: o Better listener than talker o More oriented toward developing long-term relationships o Has skills and patience to endure lengthy, complex sales processes • Definition of Personal Selling o An important part of marketing that relies heavily on interpersonal interactions between buyers and sellers to initiate, develop, and enhance customer relationships  Interpersonal communication separates it from advertising and sales promotions (mass markets)  Salespeople talk with buyers before, during, and after sale  higher degree of immediate customer feedback • Most important part of marketing communications for most businesses o Even though advertising is more visible o Especially true in B-2-B marketing o Salesperson or sales team interacts with one or more individuals from another organization • Personal Selling o Person to person communication with a prospect o Process of  Developing relationships  Discovering needs  Matching products with needs

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 Communicating benefits: arm & hammer baking soda uses Viewed as a process that adds value

LO2: Trust-Based Relationship Selling • Definition: (a form of personal selling) requires that salespeople earn customer trust and that their selling strategy meets customer needs and contributes to the creation, communication, and delivery of customer value o Focuses on  Solving customer problems  Providing opportunities  Adding value to the customer’s business over an extended product • Importance of Customer Value o Customer Value – customer’s perception of what they get for what they have to give up, for example, benefits from buying product in exchange for money paid o Customers define value by addressing these questions  Does salesperson do a good job in helping me make or save money?  Is this salesperson dependable?  Does this salesperson help me achieve my strategic priorities?  Is the salesperson’s company easy to work with, i.e., hassle-free?  Does the salesperson enlist other in his or her organization when needed to create value for me?  Does the sales representative understand my business and my industry? o Customers want to be heard when they express what they want  Product push – sales pitch or delivering a message  Pressured to buy without much appreciation for their needs  Today, productive dialogue and less pushy or aggressive tactics • Importance of Sales Dialogue o Sales Dialogue – business conversations between buyers and sellers that occur as salespeople attempt to initiate, develop, and enhance customer relationships. Sales dialogue should be customer-focused and have a clear purpose. o Purpose of conversations are:  Determine if a prospective customer should be targeted for further sales attention  Clarify the prospective customer’s situation and buying process  Discover the prospective customer’s unique needs and requirements  Determine the prospective customer’s strategic priorities  Communicate how the sales organization can create and deliver customer value  Negotiate business deal and earn commitment from the customer  Make the customer aware of additional opportunities to increase value received  Assess sales organization and salesperson performance so that customer value is continuously improved o Both parties participate in and benefit from the process LO3: Evolution of Personal Selling • Salesman – dates back to Greek history, but true salesmen who earned money started in the industrial revolution • Canned Sales Presentations o Sales presentations that include scripted sales calls, memorized presentations, and automated presentations o Sales people are not born but made

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Charles W. Hoyt o 2 kinds of salesmen  1. The “big me” – works for himself  2. The new kind – uses help o These summed up the changing role of personal selling Sales Professionalism o A customer-oriented approach that uses truthful, non-manipulative tactics to satisfy the longterm needs of both the customer and the selling firm Sales meets 4 out of 6 requirements for a profession o Needs development on decision making autonomy and adherence to uniform commercial code

LO4: Contributions of Personal Selling • More money spent here than on any other form of marketing communications • Salespeople and society o Salespeople act as stimuli for economic transactions and o They further the diffusion of innovation • Salespeople as Economic Stimuli o Economic stimuli – something that stimulates or incites activity in the economy o Salespeople are the key force in executing tactics facing increased globalization in business, more emphasis on consumer satisfaction, and building competitiveness through quality improvement programs • Salespeople and diffusion of innovation o The process whereby new products, services, and ideas are distributed to the members of society o Diffusion of industrial products and services is particularly crucial o Biggest competitor is the status quo • Salespeople and the employing firm o Salespeople contribute to firms as  revenue producers,  sources of market research and feedback,  and as candidates for management positions • Salespeople as revenue producers o A role fulfilled by salespeople that brings in revenue or income to a firm or company o Also concerned with profitability • Market research and feedback o Results of customer-centricity programs ensure the customer is being heard and products adjust accordingly o Arguments that they are not qualified but refuted by firms • Salespeople as future managers o Knowing how to meet customer needs makes you a good candidate for upper level management • Salespeople and the customer o Building trust, establishing relationships, demonstrate knowledge of product, knowledge of market opportunities o Sales ethics must be considered too Presentation Strategy • Prepare objectives

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o New SKU numbers Develop a presentation plan o Dinner etiquette Provide outstanding service o Creating value concept, being available

Develop Customer Strategy (all companies are different) • Understand buying process o Psychology of interview and buying • Understand buyer behavior o B2B corporate resource evaluation o Customer profiles obtained by sales rep • Develop prospect base o 20/80 rule: lose part of the 20, lose part of the 80 o need a back up plan: show me the money, put it in writing Interrelationships of Basic Strategies • Relationship strategy • Product strategy • Customer strategy • Presentation strategy  all build quality partnerships • Client carrying at least 3/10 products can carry 4 more o Build partnership and distribution o Customer profile and client history Value Creation • Value-added selling = creative improvements that enhance customer experience o How easy is it going to be to do business with you o How do you know you are going to fit in to the corporate culture? Emotion IQ? • Information economy rewards salespeople who has value at each step o Distribution, mfg, CRM, etc. functions • When customers not aware of value added by salesperson, the focus may shift the price o Going to be told the price is too high and have to explain why your quote is 12% higher than competitors Customer Value Model • 1. Understanding consumers value needs • 2. Creating the value proposition • 3. Communicating the value proposition • 4. Delivering the value proposition LO5: Alternative Personal Selling Approaches • 5 basic approaches to personal selling o stimulus response o mental states o need satisfaction o problem solving o consultative selling

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  not absolutes, have to be brought to together through your personality Adaptive selling – ability of salesperson to alter their sales messages and behavior during a sales presentation or as the encounter different sales situations and different customers Stimulus Response Selling o Most simple, various stimuli can elicit predictable responses from customers. Salespeople furnish stimuli from a repertoire of words and actions designed to produce the desired response. o Example: continued affirmation – series of questions or statements furnished by the salesperson is designed to condition the perspective buyer to answering “yes” time after time until he will be inclined to say “yes” to the entire sales promotion  Often used by telemarketing personnel  Advantages: structured in a logical order, anticipate objections from buyers, can lead to sales expertise  Disadvantages: lack of flexibility and dialogue o Simple in decision, assumes conditioned response, improves likelihood of success o Salesperson provides stimuli  buyer responds  purchase o Stimuli – dress, folder, opening statement o Risky and uncontrollable strategy Mental States Selling o (formula approach) assumes the buying process for most buyers is identical and that buyers can be lead through certain mental states in the buying process o AIDA – attention, interest, desire, action o Relies on a highly structured sales presentation o Advantage: requires a prepared presentation, timing is essential o Disadvantage: difficult to determine which state buyer is in, not consumer oriented method o Assumes buyer can be led through mental states, one-way communication, a risky and unreliable strategy o Attention  interest  conviction  desire  action  o Step by step grading sheet in syllabus refers to AIDA  Asking for the order is up to your judgment o Yes is a portion of action (shipment, billing, order) Need Satisfaction Selling o Based on notion that the customer is buying to satisfy a particular need or set of needs o Focuses on customer rather than seller o Uncover and confirm buyer needs  present offering to satisfy buyer needs  continue selling until purchase decision o Advantages: customers appreciate this method, avoids defensiveness o Solutions limited to seller products o Nothing left to chance or question, anticipate every question and need Problem-solving Selling o An extension of need satisfaction selling that foes beyond identifying needs to developing alternative solutions for satisfying these needs o Define problem  generate alternative solutions  evaluate alternative solutions  continue selling until purchase decision o How product delivers value o Disadvantage: can take a lot of time, customers may be unwilling to spend the time o Most successful in technical industry sales o Determine existing and potential needs, present multiple solutions, not limited to seller products

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What kind of person are you specifically looking for? Present alternative and say which one you would do and why  Come with recommendation and priority

LO6: Consultative Selling • Process of helping customers reach their strategic goals by using the products, services, and expertise of the sales organization o Focuses on achieving strategic goals of customers, not just meeting needs or problem solving • Strategic orchestrator o Role the salesperson plays in consultative selling where he or she arranges the use of the sales organization’s resources in an effort to satisfy the customer • Business consultant o Salesperson uses internal and external sources to become an expert on the customer’s business, educate customers on the products of the firm • Long-term ally o Salesperson supports the customer, even when an immediate sale is not expected o Develop empathy – ex. Today: budget cuts o Does what you’re offering make sense? LO7: The Trust-Based Sales Process • Sales Process o Series of interrelated steps beginning with locating qualified prospective customers. From there the salesperson plans the sales presentations, makes an appointment to see the customer, completes the sale, and performs post-sale activities • Selling Foundations & Selling Strategy o Initiating customer relationships o Developing customer relationships o Enhancing customer relationships o What can you do for me? And show me? Why you over them? o Customer situation, loss opportunity, compare to investment (cost) $200-250K, time involved: 3 months o Cost 5x as much to get a new one as it does to keep a client happy, 20/80 rule • Selling Foundation o Trustworthy – public doesn’t trust businesses but trusts people o Ethical – don’t free ride or compete underground  There will be pressure to make numbers and domestic pressures o Understand buyer behavior o Excellent communication skills • Selling Strategy: must develop for… o Each sales call o Each customer o Their sales territories  each strategy is related to the other #1 be ethical regardless of any pressures • Viewed as relationship management process o Trust, honest, dependable, compatibility o Using appropriate strategies and tactics

TRANSPERFECT NOTES “A Career in Sales” Dispelling the myths of sales • Not door to door • All multi-level marketing, pyramid scheme • Selling used cars (aggressive) • Showing up and throwing up: memorizing scripts • Represents 10% of sales out there • Difference between associate and partners: partners bring relationships into the firm Understanding the Sales Universe • Know the customers and how to reach them o Creating content that turns prospects into customers o Networking, trade shows, appointments, phone calls, meetings • Account management (1 time customer) o Pitching, tailoring presentation, price objections o Biggest enemy is status quo – changing methods o Collections and payments – commission, validation • Client management o Example – apple products, purchase again, brand loyalty o Knowing them as a person, interests, relationships o Foundation to grow on • Sales is o A meritocracy – developing relationships, personal responsibility, competitions and strategy, a way to add value to affect change in an organization o The 3 I’s  Impact – everything starts with a sale  Income – only job where you control your income  Independence – chart your own course, niches o Growing Relationships  Being better today than what you were yesterday  Sharpening your saw (Steve Covey)  Being an Outlier (Malcolm Gladwell)  10,000 hour rule: how long do you have to work before you get good? 10 years  Bill Gates: constant cycles to get to 10,000 hours, we have the tools, but do we persevere?  Steve Jobs: passion over a sustained period of time, persevere and don’t quit, irrational force that pushes you on Interviews • Clichés and pitfalls o Never say you’re a people person o Ask questions but don’t ask the wrong questions o Canned answers: don’t stop at answers, authentic answers o Wanting to be a manager in 5 years: watch other people work, naïve, focus on the job – become a mentor, additional responsibilities o Do not blame boss, makes excuses • What does matter o Personality

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Motivation and example on how and why, tell a story Being a match for job/company Don’t lose focus on long term goals Ask for a commitment, feedback Always close to never lose opportunity to move up Send thank you and recap

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Mentor, role model, peers, passion, improvement, change Mentor/ role model: parent, impression of sales is fun, competitive, different; compete against satellite firms and yourself Pick your work carefully: picked career where pay was good but slow in moving up; sales is owning your own business and making your success Peer group: surround yourself with people who want to get to the top also, grass isn’t always greener

Todd Williams • [email protected] • Transperfect o Language barrier solutions o 70 offices around the world o $300 Million in sales in 2011

Building Trust and Sales Ethics Developing Trust and Mutual Respect with Clients Building trust and sales ethics • Trust is crucial • Competent, compatible, candid, customer oriented, dependable • Initiative and motivation for company, customers, markets • Professional salesperson must be ethical or they are not professional o Don’t like on expense report o Don’t lie about DUI • Just when we buy into a person, they usually break our trust. Introduction, Jerome Johnson • “There ain’t no such thing as a free lunch.” – if something appears to be too good to be true, it probably is. • Important that the salesperson makes sure the client understands that T.A.N.S.T.A.A.F.L. • Illustration: improves understanding and breeds trust • Trust = extent of the buyers confidence that he or she can rely on the salesperson’s integrity o Buyers define trust with:  Openness - completely free from concealment: exposed to general view or knowledge  Dependability  Candor  Honesty: A salesperson’s fairness and straightforwardness of conduct  Confidentiality: A salesperson is entrusted with information from a buyer that cannot be shared  Security: Quality of being free from danger  Reliability: consistency of a salesperson overtime to do what’s right  Fairness: salesperson that exercises impartially and honestly  Predictability • Trust = the degree to which one person can rely on another when the former is dependant on the latter LO1: What is Trust • Trust is when an industrial buyer believe that he or she can rely on what the salesperson says or promises to do in a situation where the buyer is dependent on the salesperson’s honest and reliability • Ethical dilemma – challenges a person faces on a daily basis • Trust answers the questions: o Do you know what you are talking about? – competence, expertise o Will you recommend what is best for me? – customer orientation o Are you truthful? – honesty, candor o Can you and your company back up your promises? – dependability o Will you safeguard confidential information that I share with you? – customer orientation, dependability LO2: Why is trust important? • Competitive market overwhelms buyers with choices regarding both products and suppliers o Buyers demand unique solutions to their problems, customized solutions o Long-term buyer-seller relationships taking over win-lose characteristics of selling o These relationships are characterized by trust, open communication, common goals, commitment to mutual gain, and organizational support • Shift alters roles salespeople play in the selling process o Relationship marketing paradigm

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Skills and activities inherent to relationship selling can be classified according to their purpose as o 1. Initiation of the relationship o 2. Development of the relationship o 3. Enhancement of the relationship

LO3: How to Earn Trust Trust Builders • Expertise o Ability, knowledge, and resources to meet customer expectations o Inexperience is hard to overcome as young professional o Becoming an expert is in high demand with budget cuts on personnel and training programs limiting resources o People outsource experts o Contribution to the bottom-line dominates seller’s credibility o Salespeople seek to convince clients that they are:  Actively dedicated to the task of positively influencing their bottom-line objectives  Capable of providing assistance, counsel, advice that will positively affect the ability to reach objectives o Deals with skill, knowledge, time, and resources to achieve what is promised o Observable results and contributions for the buyer  Contributions – something given to better a situation or state for a buyer o Extent to which a salesperson possesses relevant knowledge and capability o salesperson knows what he needs to do, has the ability and resources to get the job done right o Technical stuff is not a concern, we know that – learning the products – function, quality, and place matter • Dependability o Predictability of a person’s actions o Centered on predictability – a salesperson’s behavior that ca be foretold on the basis of observation or experience by a buyer  She always does what she says she is going to do. o Take notes during all sales calls for later reviews o Try to establish a pattern prior to dependable behavior o Ability to handle confidential information o Extent to which salesperson consistently and predictably follows through on commitments he makes others o Buyer can rely on the salesperson and salesperson keeps his promise • Candor o Honesty of the spoken word o Also have to win over the testimonials, third party endorsements, trade publications, communications, and consumer reports o Honest/ upfront with others, especially with regard to issues/ factors that impact others o Honest to spoken word, presentation is fair and balanced • Compatibility/ Likability o A salesperson’s commonalities with other individuals o Building rapport requires more creativity today as customers are not as inclined to spend time discussing personal issues o First impressions are important o Extent to which salesperson’s behaviors, actions and personality are consistent with and/or appreciated by his/her customers

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o They buyer likes doing business with the salesperson and the salesperson’s company Customer orientation o The act of salespeople placing as much emphasis on the customer’s interests as their own o Work to satisfy long-term needs of the customer o Cover both pros and cons of recommended product o Clear statements of benefits and not information overload o Basically advisors – they advertise rather then sell o Care about the partnership and be willing to “go to bat” when the client needs it o Committed to representing the customer’s interests o Extent to which salesperson values and protects the interests of his/her customers o Salesperson truly cares about the partnership and will go to bat for the customer

LO4: Knowledge Bases Help build Trust and Relationships • Competitor knowledge – knowledge of a competitor’s strengths and weaknesses in the market Knowledge Bases • Industry o Every industry and company has a history • Company o Operation, policies – formal structure and key personnel • Product o Product knowledge – detailed information on the manufacture of a product and knowing whether the company has up-to-date production methods o Be perceived as an expert – know what the products can and cannot do • Price and promotion o Promotion knowledge – knowledge tools salespeople must have to explain promotional programs their firms have o Price knowledge - knowledge tools salespeople must have about pricing policies in order to quote prices and offer discounts on products • Service o Service issues – concerns of the buyer that the salesperson should address  Does the company service its products or does the company send them to a third party?  Service products locally or send them off to another state for service?  Price include service or will there be a service charge?  What does service agreement include?  How long does the service generally take?  Any conditions that make the service not available? o Salesperson’s service mission is to provide added value to the customer o Dimensions: delivery, inventory, training, field management, credit and financial consideration, installation, guarantees and warranties, others • Market/ customer o Market knowledge - knowledge tools salespeople must have if larger companies break their customers into distinct markets; sales people must be familiar with these markets to specialize their sales presentations  Salesperson can become an expert in distinct market o Customer knowledge – information about customers that is gathered overtime and from very different resources that helps the salesperson determine what needs those customer have to better serve them  Trade associations, credit agencies, newspapers, WWW

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Competitor o Must have knowledge of competitors strengths and weaknesses o Deliver complete comparative product information in sales presentation o Distinguish products from competition – how are you different form the competitor? How are you better? Technology o Technology knowledge – knowledge tools salesperson must have about the latest technology o Smart phones, world wide web, email, etc. o Need to recognize preferences of buyer o Most oversold form of technology is voicemail

LO5: Sales Ethics • Ethics = the right and wrong conduct of individuals and institutions of which they are a part o Ethical standards for a profession are based on society’s standards o AMA has adopted a code of ethics o Deceptive practices, illegal activities, and noncustomer oriented behavior have to be attempted only once for a buyer to lose trust in his or her salesperson • Ethics o Refers to right and wrong conduct of individuals and institutions they are a part o Ethical decisions  Clearly Wrong – cheating on a test  Ethical Dilemma – knowing its wrong but not doing anything about it  Clearly Right • Images of Salespeople and Sales Executives o Sales and Marketing Executive international (SMEI) has a code of ethics o Television, movies, and broadways have portrayed salespeople wrongly • Deceptive Practices o Some salespeople use quota pressure as an excuse to be deceptive o Lie about answers they do not know – either way when this is jeopardized, they lose future business o Deceptive Practices  Exaggerate  Withhold  Deceive  Hustle  Scam  Bluff • Illegal Activities o Using the company car for personal use, charging expenses that did not occur, and selling samples for income o Lying to the International Revenue Service (IRS) o Bribery causes problems o Salespeople can create product liabilities for their companies in 3 ways:  Express warranty – a way a salesperson can create product liability by giving a product warranty or guarantee that obligates the selling organization even if the salesperson does not intend to give the warranty  Misrepresentation – a way a salesperson can create product liabilities by making a false claim about a product thinking it is true

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Negligence – a way a salesperson can create product liability by making a claim about a product without exercising reasonable care to see that this claim is accurate o Basis of the Bargain – term used when a buyer relied on the seller’s statements in making a purchase decision  May increase sales in the short run but can ruin the relationship and company o Illegal Activities  Misuse company  Defraud  Con Noncustomer Oriented Behavior o Short-term goals and outmoded sales tactics o Non-Customer-Oriented Behavior  Pushy  Hard sell  Fast talking  High pressure How are companies dealing with sales ethics? o Cover ethics in their training programs  Appropriateness of gift giving (includes Christmas)  The use of expense accounts  Dealing with a prospect’s unethical demands  Sometimes under pressure form company and may use salesperson to get ahead o Reputation only needs to be tarnished once

Ethical Tests • Questions to consider o Is it right? o Is it fair? o Who will it hurt? o Would you want your decision publicized? o What would you tell your child to do? o Does it smell? • Beware rationalizations  Red Flags: o Everybody does it – do they? o Isn’t hurting anybody o I couldn’t help it o Nobody cares – too apathetic in our society? o What do you want me to do, go out of business? (Mexico bribery is an accepted practice, not here.) o I have a job to get done. • (Beer business historically unethical) 3 Frameworks for Viewing Ethical Questions • 1. Consequentionalist o Results are what matter...ends over mean  Who might be hurt?  What is the right goals?  Who might/should benefit?

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 What if I get caught? 2. Duty-based o Contract orientation…what one owes  What and whom do I owe?  Where are/should be my loyalties?  Is this fair?  What do others legitimately expect from me?  What promised, spoken or unspoken, have been made? 3. Absolutist o Principles based, regardless of consequences  What is the right thing here? – don’t want to get involved but you are involved  What is the law?  Is this honest?  Am I being true to my standards? o Nobody wants to hire you at $95K/year and have you slack off in training, and then have to fire you. They don’t want to do this.

Understanding Buyers Introduction • Electronic Data Systems (EDS) – outsources a broad variety of information to clients across the world o Assumes sales as a leadership function • Understand customer needs and earn trust • Each sell at EDS depends on 3 key ingredients o Salespeople must understand the customer’s business o Understand potential customer business drivers and how to apply technology to improve the prospect’s business o Must provide best-of-breed value • EDS has a sales development program • Understanding customers is a key component in developing successful relationships Key Thoughts • Business markets operate differently than consumer markets, and those differences affect the selling process • The role of the salesperson will vary based on where the buyer is in the buying decision process • Buyers needs may be a mix of situation, functional, asocial, and knowledge needs • The role of the salesperson will vary based on the type of buying decision • **Salespeople will benefit from bring able to identify the buyers communication style** o Go from one client to another o Does he want numbers, graphs, extent of detail, market share information? LO1: Types of Buyers • Range from heavy industry and manufacturing operations to consumers making a purchase for their own use • Needs, motivations, and buying behavior differ from all types • Most common Categories of Buyers o Consumer markets  Consumers purchase goods or services for their use or consumption and are highly influenced by peer group behavior, aesthetics, and personal taste  People, personal use  Use is a way to define a market o Business Markets  Market composed of firms, institutions, and governments who acquire goods and services to use as inputs into their own manufacturing process, for use in their dayto-day operations, or for resale to their own consumers  Firms  Institutions – UGA, Hormel, etc.  Governments  Non-profit organization LO2: Distinguishing Characteristics of Business Markets • Business markets are much more complex • Concentrated demand o Higher number of concentration in which a small number of large buyers account for most of the purchase • Derived demand o Demand in business markets that is closely associated with the demand for consumer goods

If they sell a lot of cars and trucks, what else has to be sold? Tires, batteries, cloth components, plastic molding, steel o Feeder industries o Monitor related markets to anticipate shifts in demand High levels of demand fluctuation – X o Today we have Just in Time inventory (JIT) o Keeps demand and inventory balanced o Acceleration principle – when demand increases in the consumer market, the business market reacts by accelerating the buildup of inventories and increasing plant capacity Purchasing professionals o Buyers are trained as purchasing agents o More rational approach to buying Multiple buying influences o Salespeople work simultaneously with several individuals during a sales call and even different sets of buyers during different sales calls Close buyer-seller relationships o Buyers and sellers are more interdependent now than ever o Buyers look for concrete actions and a salesperson’s commitment to a relationship o

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TEST FEB. 10TH. • 40 questions, True/False, MC and 2 essays

Mfg  Distributor  Chain (retail)  Consumer • B2B  B2B  B2C • Mfg  Consumer: B2C – website or online • Mfg  Distributor: 45% margin • Distributor  Retail: 22%-26% • Retail  Consumer: 28% markup • Market Area responsible between Retail and Consumer • Passage of title from Mfg to Distributor and pass title again from Distributor or retailer o Big deal: cannot tell them what to sell it for o Give up your rights to pricing with the passing of title o Sell it wherever they want o Brand Managers want to give a retail price point that is consistent with how you want to position and break down pricing o Selling is the Mfg sales people over the distributors, companies LO3: The Buying Process • Conscious and logical process in the business market o 1. Recognition of the problem or need o 2. Determination of the characteristics of the item and the quantity needed o 3. Descriptions of the characteristics of the item and the quantity needed o 4. Source for and qualification of potential sources o 5. Acquisition and analysis of proposals o 6. Evaluation of proposals and selection of suppliers o 7. Selection of an order routine o 8. Performance feedback and evaluation • Could be highly formalized or a rough approximation of what actually occurs

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Buying Decision Process o Steps 1-2: Initiation the relationship  Strategic prospecting  Assessing prospect’s situation  Discovering prospect’s needs  Planning value-based sales dialogue and presentations  Activating the buying process o Steps 3-7: Developing the relationships  Engaging prospects and customers through sales dialogue and presentations  Co-creating and validating customer value  Earning customer commitment o Step 8: Enhancing the relationships  Building value though the post-sale follow-up  Assessing value and relationship performance  Creating new value opportunities  Increasing customer value through self-leadership and teamwork Phase 1- Recognition of the Problem or Need: The Needs Gap o Desired states – a state of being based on what the buyer desires o Actual states – a buyer’s actual state of being o Needs gap – perceived difference between a buyer’s desired and actual state of being  If there is no gap, then there is no need and no active buying motive. o Salespeople position themselves to help buyers understand and recognize their needs o Form realistic perceptions of the actual and desired state

LO4: Types of Buyer Needs • Situational Needs o Contingent on, and often a result of, conditions related to the specific environment, time, and place o I need a copier now because I have a major project I need to complete. • Functional Needs o Need for a specific core task or function to be performed o I need a copier and staples. • Social Needs o Need for acceptance from and association with others o I need a state-of-the-art copier so I will be recognized as of the technology-savvy people in this company. • Psychological Needs o Desire for feelings of assurance and risk reduction, as well as positive emotions and feelings such as success, joy, excitement and stimulation o I need an extended warranty with a copier. • Knowledge Needs o The desire for personal development, information, and knowledge to increase thought and understanding as to how and why things happen o I need comprehensive training on how to use a copier. • Organizing can help in many ways o Serve as checklist to ensure no significant problems have been overlooked o Generates value-added solutions o Business buyer needs tend to be more complex than consumer needs o Need to address both individual and organizational needs of business buyers

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Phase 2 – Determination of the characteristics of the item and the quantity need o Search for additional information leading to possible solutions o Offer problem situations and solution options that buyers typically view as beneficial o Feature – Benefits  Needs – Solution  Different strokes for different folks o Get to that which you know the best: the product or service o Problem is that we bypass what they really need – cant find that out unless we have a pretty good structure of questions that we want to use o Different companies value benefits differently Phase 3 – Description of the characteristics of the item and the quantity needed o Detailed specifications in developing proposals o Framework for evaluating, comparing, and choosing among proposed solutions o Work closely together Phase 4 – Search for and qualification of potential sources o Qualified on ability to perform and deliver consistently at the level of quality and quantity required o Lots of options of outside resources for analysis Phase 5 – Acquisition and analysis of proposals o Requests for proposals – a form developed by firms and distributed to qualified potential suppliers that help suppliers develop and submit proposals to provide products as specified by the firm o Provide benefits and analysis

LO5: Procedures for Evaluating Suppliers and Products • Research into how buyers make purchase decisions suggests that most buyers use a compensatory, multi-attribute model o Procedure for evaluating suppliers and products that incorporates weighted averages across desired characteristics o 1. Assessments of how well the product or supplier performs in meeting each of the specified characteristics o 2. The relative importance of each specified characteristic • Assessment of product or supplier performance o Step 1 of Multi-Attribute Model: Rate objectively how well each characteristic of the competing product meets the buyer’s needs  Assessments converted into scores o Multi-Attribute Model – decision on which company to take o Find out what’s important to you  Compensation – pay and benefits (.4)  Location (.4)  Training (.2)  Total: 1.0 o Example – one method to comparing and rating companies  Company A:  Compensation: 6x.4  Location: 8x.4  Training: 1x.2  Total: 5.62 score – choose company A over B  Company B:  Compensation: 9x.4

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 Location: 2x.4  Training: 4x.2  Total: 5.21 score Accounting for relative importance of each characteristic o Each score weighted by characteristic’s perceived importance o Highest score typically selected Employing buyer evaluation procedures to enhance selling strategies o Modify the product offering being proposed  To better meet the clients needs and thus receive a higher evaluation o Alter the buyers beliefs about the proposed offering  Provide information and support  Do not exaggerate or overemphasize claims  Develop a realistic perception o Alter the buyers belief about the competitors offering  Competitive depositioning – providing information to evidence a more accurate picture of a competitor’s attributes or qualities o Alter the importance of weights  Increase importance of certain characteristics which the product offering is exceptionally strong o Call attention to neglected attributes  Point out attributes that were missed  Appearance of final product is strong and you cannot miss an attribute Phase 6 – Evaluation of proposals and selection of suppliers o Play a crucial role in gaining the buyer’s commitment to the purchase decision and in the subsequent negotiations of the final terms Phase 7 – Selection of an order routine o Delivery quantities, locations, and times with return policies and routine for reorders o Based on prearranged time schedule o Buy an expo marker at the store, scans it and registers as a decrease in inventory, eventually schedules a reorder o Kroger card - CRM Phase 8 – Performance feedback and evaluation o Shared among all parties and enhances the buyer-seller relationship o Continue working with buyers after the sell o Numbers are final result of a lot of things that happened before – historical and empirical

LO6: Understanding Post-purchase Evaluation and the Formation of Satisfaction • Two-factor model of evaluation o Evaluate using functional and psychological attributes o 1. Functional Attributes  Features and characteristics that are related to what the product actually does or is expected to do  Reliability, durability, conformance to specifications, competitive pricing, and performance  Must-have characteristics  Features of the core product that the customer takes for granted  Must-haves  37% level of influence on buyers satisfaction o 2. Psychological Attributes

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Category of product characteristics that refer to how things are carried out and done between the buyer and seller  Delighter Attributes  Augmented features included in the total market offering that go beyond buyer’s expectations and have a significant positive impact on customer satisfactions  63% level of influence on buyer’s satisfaction The growing importance of salespeople in buyers, post-purchase evaluations o Functional aspects provide technical insight whereas psychological are closer to interpersonal communications and behavior o Psychological has nearly 2x more influence than functional

LO7: Types of Purchasing Decisions • Purchase decisions are not isolated behaviors, therefore buyers are learners o Reflect on past experiences or external information: secondary sources of information and other individuals the buyer perceives as trustworthy o Level of experience and knowledge primary determinant of the time and resources the buyer will allocate to the purchasing decisions o 3 Decision Types: straight rebuys, modified rebuy, new task • Straight Rebuy o Straight rebuy decision – purchase decision from an ongoing purchasing relationship with a buyer o Needs have been predetermined with corresponding specifications, pricing, shipping requirements o Ordering is automatic and often computed by Electronic Data Interchange (EDI) and ecommerce  Transfer of data electronically between two computer systems o Allocate little if any time in this type of purchase o Problem to the out-salesperson  Buyers have no need to change  No active buying motive because no needs gap  First, make contact with the buyer, then provide relevant information so buyer will perceive a needs gap, effectively communicate advantages of new product o Routine response behavior  Coupon drops, bring attention to it • New Tasks o New Tasks Decision  Occurs when buyer is purchasing a product or service for the first time o Extensive consideration and decision making o Multiple members of buying team usually involved o No in or out supplier o Selling strategies: consultative strategy - relationship  Provide expertise in developing and understanding need  Specify and evaluate solutions  Assist buyer in making decision o Work for a beer company, one location doesn’t sell 18 packs, so you need to go make a presentation explaining that that location needs to start selling this o How do you get in the door at Kroger or something?  They will support local businesses before anything else – sense of community

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What is going to make your product turn their prospect buys? What are you going to do to advertise it? How many different sizes do you have? What do you want to put it next you? What pricing do you want and consider that in placement.  Go to some focus groups and take these results with you. Identify which brands you are going to compete with o Extensive problem solving Modified Rebuys o Modified rebuy decisions – occurs when a buyer has experience in purchasing a product in the past but is interested in acquiring additional information regarding alternative products or suppliers o Result of changing conditions or needs o Check competitiveness of existing suppliers o Limited problem solving

Newness of Problem or Need

Straight Rebuy

Modified Rebuy

New Task Rebuy

Low

Medium

High

Minimal

Moderate

Maximum

Minimal

Limited

Extensive

None

Limited

Extensive

Very small

Moderate

Large

Low

Moderate

High

Information Requirements

Information Search

Consideration of New Alternatives Multiple Buying influence

Financial Risk

LO8: Understanding Communication Styles • Communication: Key Thoughts o For professional salespeople the ability to ask good questions and then actively listen to the answers is as, if not more, important than their ability to present information o Salespeople should be strategic with the questions they ask. They should have a reason for asking the questions and a need for the answers. o Active listening requires concentration, focus, and determination.  Average attention span is 10 minutes for an American o Successful professional salespeople are able to read and correctly interpret non-verbal communication. • Verbal and non verbal • Verbal Communication: Questioning o Salespeople skilled at questioning take a strategic approach to asking questions so that they may:  Control the flow and direction of the conversation  Uncover important information  Demonstrate concern and understanding

 Facilitate the customers understanding Competitive products that they are using or entertaining idea of possibly using  There is something they need – is the absence of this causing you any money, yes time and that’s your avenue to discuss value to the company Different Types of questions o Open end are the best questions  Interviewing – they want you to talk o Close-end questions  Yes or no – are you a good time manager o Dichotomous/Multiple choice questions  Yes no or MC questions o Probing questions  Designed to penetrate below generalized or superficial information  1. Requesting clarification – indicative of your interest  can you share an example with me?  2. Encourage elaboration  how are you dealing with that situation now?  3. Verifying information and responses  so if I understand you correctly…is that right? o Evaluative Questioning  Use open- and closed-end question formats to gain confirmation and to uncover attitudes opinions, and preferences of customer  How do you feel about ..?  Do you see the merits of ..?  What do you think about ..? – great question to ask ¾ thru presentation  Most dangerous word in marketing is PERCEPTION o Tactical Questions  Used to shift or redirect the topic of discussion  Earlier you mentioned that…  Could you tell me more about how that might affect..  Obstacles -- need – productivity – priorities – dollars (price, investment) Strategic Application of Questioning o Generate buyer involvement – sit forward o Provoke thinking – got the interview because they had a need o Gather information o Clarification and emphasis o Show interest – if you don’t like what you do get out o Gain confirmation – everyone needs to be on the same page o Advance the sale – price and closing The SPIN Process – Situation Questions o Situation  Have to understand the marketplace and interaction between industry, product, brand, and dynamics of growth, decline, and outlook for future  Information is available today – of all this stuff, what’s important? o 2x2 matrix of assertiveness and responsiveness o Assertiveness  Degree to which a person hold opinions about issues and attempts to dominate or control situations by directing the thoughts and actions of others o

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 Low assertiveness individuals exhibit a slower pace Responsiveness  Level of feelings and sociability an individual openly displays  High responsiveness – relationship oriented o Amiables – high responsiveness, low assertiveness  Prefer to belong to groups and are interested in others o Expressives – high on both  Animated, communicative and value building close relationships with others o Drivers – low responsiveness, high assertiveness  Detached form relationships o Analyticals – low responsiveness, low assertiveness  Analytical, meticulous, and disciplined in everything they do • Barriers to communication o Nom-verbal: people cant see you all the time especially through email o Personal agenda o Distractions o Cultural differences: language and do’s an don’ts, even regions of the US o Terms: industry oriented jargon o Transfer of message: editorialize – add to, subtract from, change something because we don’t agree with it o Lack of focus and view of the fact that everyone is different o Pyramid of status: folks at the bottom wont be honest with people at the top, they will just say yes o Environment – look at the terrible things publicized o Regional – different viewpoints of different people who come from different parts of the country o Attitude o Pictures (vision) o Numbers (A,B,C,D – do not move D to A) o Some people are morning people o  comes back to how we prefer to present and communicate and how we prefer to receive it • Mastering Communication Style Flexing o Be aware of your own personal style o Flex your style to fit the potential client’s o Positive impact on salesperson’s performance and relationship o Note differences and rationalize them in terms of specific characteristics of each buyer’ style o More difficult to prepare for the amiable-expressive buyer and then switch to an analyticaldriver style LO9: Buying Teams • Teams of individuals in organizations that incorporate the expertise and multiple buying influences of people from different departments throughout the organization • Members described by roles and responsibilities o Initiators  Identify need and realize that the acquisition of the a product might solve the need o Influencers  Guide decision process by making suggestions and expressing preferences o Users  Actually use the product being purchases o Deciders o

 Ultimate responsibility of determining which product or service will be purchased Purchasers  Negotiate final terms of the purchase and execute the actual purchase o Gatekeepers  Control the flow of information to and between vendors and other buying center members Salespeople need to determine who the buying team is immediately and work with all members to address their varied needs and objective properly o

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LO10: Current Developments in Purchasing • Increasing Use of Information Technology o EDI, internet based transactions o Directly links buyers and sellers o CRM on the web o Online catalogs • Relationship emphasis on cooperation and collaboration o B2B decisions affect each other o Long-term relationships based on mutual benefits received and interdependence amongst all parties involved o Must prove you are dependable • Supply chain management o Strategic coordination and integration of purchasing with other functions within the buying organization as well as external organizations o Coordinate with all partners in the network • Increased Outsourcing o Process of giving to a supplier certain activities that were previously performed by the buying organization o Day-to-day functions and customer needs must be continuously monitored • Target Pricing o Price buyers determine they are willing to pay for their final products through information gathered from researching the marketplace • Increased importance of knowledge and creativity o Need to solve problems quickly and creatively o Innovative solutions

The Parallel Dimensions of Selling • MAD – money, authority, desire • TRP – targeted rating points o Better than GRP • Marketing plan – MARK 4900, marketing strategy and development of marketing plan • AIDA – attention, interest, desire, conviction, action Major Influences on Industrial Buying Behavior • Mostly B2B • Just in Time Inventory • Social responsibility o UGA under Blue Shield: Have to pay for and cover any expenses related to abortion, contraception uses, whack insurance premiums by 10-15%

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o Increase the cost of doing business You’re expensive, a lot of that will be your benefit package Individuals you call on o You can figure out someone’s income o All different personalities o Be most concerned with risk attitude  Zero in on ROI

Mind Design • Presenting to other individuals and have a minute or two to decide how you are going to communicate to your audience in a timed window of presentation • Know what your audience wants to hear • Marketing presentation for a budget raise to finance department – they want numbers • Figure out what that person is like who is interviewing you  awareness • Assess product placement in a store takes about 5 minutes • Your position is a matter of choice Interview • What’s your values? Company’s values? • You find out if they match your interests but do not ask about benefits 1. Uncovering the decision making process

Team Presentation TEAM PRESENTATION • Team member introduction – who will do what part • Actual presentation – read it and get to the issue o Description of situation o Sales issues – probably something about training process o What has been done if anything o Team recommendations  What is to be done  Who should do it  Where (site)  Time (how long) • Power points – no text because people wont read it o Clear o Bullet form o Color compatibility – red bleeds into black background, recommend black and white, gold or yellow on blue, stay away from yellow on black • Communication – 20 minute presentation o No notes in your hands o No note cards o No reading off anything o Eye contact with all of audience – 4 corner approach o Use of hands to express yourself o Don’t stand behind the podium o Business casual dress o Refer to team members with first names and address which sections they are presenting • Handout o One page summary of entire presentation o Each member of the class o After the presentation • Evaluations o One team grade-professor o All class members o Take one question from each presentation and it will be a test question on test 2

Hormel Foods See  yourself  succeeding…our  way   Be  part  of  something  great     Been  with  Hormel  20  years   Currently  works  in  North  Carolina     In  a  lot  of  different  businesses     • More  than  bacon,  ham,  spam,  and  chili       Company   • Started  in  1891   • George  Hormel  bought  a  butcher  shop   • 19000  employees   • 9.5  million  animals  harvested     o humane  way   • Locations   o Based  out  of  Austin,  Minnesota   o Facilities  in  mid  west,  California,  some  in  Georgia  and  few  in  north  east   o Sales  jobs  are  all  over  the  country   Diversified  brand  portfolio   • Compleats   o 1988  –  Top  Shelf   o Shelf  stable,  good  because  of  the  war   o Made  a  sleeve  for  the  tray  box  so  people  could  see  what  is  actually  is  on  the  shelf    Great  marketing  strategy   • Packaged  ribs   Sustainability  Efforts   • Focused  Efforts   o Animal  care   o Air  emissions   o Energy  consumption   o Package  minimization   o Solid  waste   o Water  consumption   • Need  to  do  more  of  it  and  let  people  know  they  are  responsibility   • Burn  wood  to  smoke  it   Philanthropy   • Publicly  traded  company   • $5.7  M  in  annual  giving   • “Spammy”     o CEO  Jeff  Etenger   o Canned  meat  business  –  help  hunger  in  third  world  countries   o Fortified,  shelf-­‐stable  turkey  spread  to  help  address  children  malnutrition     o 3  oz  spreads  out  over  a  number  of  kids   o 25  employees  sponsored  by  company  in  Guatemala   • Spike  in  charitable  donations  between  2007-­‐2008   o Fortunate  in  earnings  every  year   o Part  of  responsibility  of  being  success  is  to  donate  it  back   • Give  gifts  at  Christmas  to  employees  

Entry-­‐Level  Careers   Sales   • Consumer  product  sales   o Any  place  where  you  go  to  a  grocery  store  and  buy  food  retail   • Food  service  sales   o Any  food  where  you  can  get  food  outside  of  your  house   o UGA  is  a  potential  customer   o Healthcare,  hospitals,  restaurants   • Valued  Customers   o Kroger,  Marriott,  cheesecake  factory,  Costco,  super  target,  wal-­‐mart,  famous  Dave’s,  US   food  services,  Sysco,  cub  foods   • Build  relationships  with  customers  in  the  beginning   o St.  Louis  Bread  –  rode  the  way  with  Panera   Comprehensive  Sales  Training  (6-­‐12months)   • One  of  the  best  by  selling  power  magazine   • Product  knowledge  (online  training)   • Trade  and  industry  dynamics   • Selling  style  and  different  types  of  buying  behavior   • Mentor  program   • On  the  job  training   • Impacting  responsibilities  from  day  one   • 6  step  selling  process   o systematic  approach   o practice     Project  Based  internships  –  often  lead  to  job  offer  after  internship   • Marketing   o Grocery  products   o Meat  products   o International   o Foodservice     • Sales   o Consumer  product  sales   o Foodservice  sales   Hormel  Career  Paths   • Conventional  career  path   o Sales  rep   o Supervisor   o Maintenance  engineer   o Staff  accountant   • But  you  could  do  something  different   o Go  into  marketing  and  product  management   Joint  venture  with  MegaMix  Foods   • 50-­‐50  relationship   Awards  and  Recognitions   • Manufacturing   • Corporate  citizen   • Trustworthy   • Research  and  development     Benefits  

Close  to  being  very  best  in  industry   Defined  pension  plan  –  when  you’re  done  working,  they  pay  you  a  monthly  salary  for  the  rest  of  your   life   What  does  it  take  to  work  there?   • Leadership  skills   o How  are  you  going  to  communicate  this   • Work  ethic   o Work  hard,  doesn’t  mean  work  long  but  work  hard,  play  hard   o Doesn’t  always  mean  having  a  job   • Communication   o Can  you  introduce  yourself  and  give  a  30  second  intro  about  who  you  are  and  what  you  want   to  do  and  PRACTICE  that   o If  going  for  sales  –  ask  for  an  interview,  then  a  job   • Initiative   o What  have  you  done  in  your  career  so  far  –  senior  yr  in  high  school  to  college,  that  shows   and  explains  saying  you  have  initiative   o Work  without  direction   • Persuasive  skills   o Most  people  don’t  have  sales  experience  because  its  hard  to  get   o Able  to  communicate  different  jobs  or  scholarships   o Think  about  what  else  you  have   Recruiting  Process   • www.hormelfoods.com   • [email protected]   • www.hormelfoods.com/careers   o reach  out  and  show  your  resume  if  not  picked  to  interview   • Interviews   o On  campus   st nd o Phone  (1  or  2 )   o On  site  (final  step)   Summer  Internship   • One  of  sales  offices   • Hourly  position,  40  hours  per  week   • Car,  computer   • Project  to  work  on  and  complete  by  end  of  summer   • Expert  on  the  products   • Shadowing   • Work  extra  hours  earlier  in  the  week      Where  do  you  see  Hormel  in  the  future?  Are  there  any  new  markets  or  opportunities  on  the  horizon?   • $400-­‐500  M  in  cash  and  zero  debt   • Buy  a  large  company  in  America     o Huge  acquisition   o Stick  in  the  protein,  food  business  or  ethnic  business   • International   o China  –  2  plants   o Politics  of  food  dictates  where  they  can  go   o Meat  in  Europe       • •

What  else  can  I  tell  you  to  get  me  to  the  next  level  of  the  interview  process?   • Ask  for  the  job   • Ask  for  the  order     Difficult  aspect  of  transition  from  graduation  to  working  for  Hormel   • Idea  of  leaving  home  and  being  out  on  your  own   • Student  to  responsible  part  of  work  society   • Results  matter   o I  consistently  achieve  my  objectives   o We’ve  received  a  ribbon  for  everything  we  have  done   o Used  to  being  rewarded   o But  you  have  a  goal  to  hit  and  you  have  to  hit  it   o A-­‐B  not  a  big  difference  in  getting  a  degree   o But  meeting  goals  90%  to  100%  is  a  BIG  difference  

National Collegiate Sales Competition Dr.  Terry  Low  runs  the  national  collegiate  competition   70  schools  participate   Final  4  Presentations   • 400  people  will  watch  each  presentation   • Buyer  gets  up  and  walks  out  on  purpose   • Be  prepared  for  everything  and  keep  the  language  simple   Companies  pay  $20-­‐40,000  to  play   • Happy  hunting  ground  for  college  graduates   Sell  the  same  product  all  the  way  through   • Change  sales  scenario   • 2  hours  to  prepare  for  last  presentation   • Curveball  that  he  couldn’t  see  after  an  accident  

Communication Skills LO8:  Understanding  Communication  Styles   Communication:  Key  Thoughts   • For  professional  salespeople  the  ability  to  ask  good  questions  and  then  actively  listen  to  the  answers   is  as,  if  not  more,  important  than  their  ability  to  present  information   • Salespeople  should  be  strategic  with  the  questions  they  ask.  They  should  have  a  reason  for  asking  the   questions  and  a  need  for  the  answers.   • Active  listening  requires  concentration,  focus,  and  determination.   o Average  attention  span  is  10  minutes  for  an  American   • Successful  professional  salespeople  are  able  to  read  and  correctly  interpret  non-­‐verbal   communication.   • Verbal  and  non  verbal   Verbal  Communication:  Questioning   • Salespeople  skilled  at  questioning  take  a  strategic  approach  to  asking  questions  so  that  they  may:   o Control  the  flow  and  direction  of  the  conversation   o Uncover  important  information   o Demonstrate  concern  and  understanding   o Facilitate  the  customers  understanding   • Competitive  products  that  they  are  using  or  entertaining  idea  of  possibly  using   o There  is  something  they  need  –  is  the  absence  of  this  causing  you  any  money,  yes  time  and   that’s  your  avenue  to  discuss  value  to  the  company   Different  Types  of  questions   • Open  end  are  the  best  questions   o Interviewing  –  they  want  you  to  talk   • Close-­‐end  questions   o Yes  or  no  –  are  you  a  good  time  manager   • Dichotomous/Multiple  choice  questions   o Yes  no  or  MC  questions   • Probing  questions   o Designed  to  penetrate  below  generalized  or  superficial  information   o 1.  Requesting  clarification  –  indicative  of  your  interest    can  you  share  an  example  with  me?   o 2.  Encourage  elaboration    how  are  you  dealing  with  that  situation  now?   o 3.  Verifying  information  and  responses    so  if  I  understand  you  correctly…is  that  right?   • Evaluative  Questioning   o Use  open-­‐  and  closed-­‐end  question  formats  to  gain  confirmation  and  to  uncover  attitudes   opinions,  and  preferences  of  customer    How  do  you  feel  about  ..?    Do  you  see  the  merits  of  ..?    What  do  you  think  about  ..?  –  great  question  to  ask  ¾  thru  presentation    Most  dangerous  word  in  marketing  is  PERCEPTION     • Tactical  Questions   o Used  to  shift  or  redirect  the  topic  of  discussion    Earlier  you  mentioned  that…    Could  you  tell  me  more  about  how  that  might  affect..   o Obstacles  -­‐-­‐  need  –  productivity  –  priorities  –  dollars  (price,  investment)   Strategic  Application  of  Questioning   • Generate  buyer  involvement  –  sit  forward  

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  Questions   • •

Provoke  thinking  –  got  the  interview  because  they  had  a  need   Gather  information   Clarification  and  emphasis   Show  interest  –  if  you  don’t  like  what  you  do  get  out   Gain  confirmation  –  everyone  needs  to  be  on  the  same  page   Advance  the  sale  –  price  and  closing   Barriers  to  communication   o Nom-­‐verbal:  people  cant  see  you  all  the  time  especially  through  email   o Personal  agenda   o Distractions   o Cultural  differences:  language  and  do’s  an  don’ts,  even  regions  of  the  US   o Terms:  industry  oriented  jargon   o Transfer  of  message:  editorialize  –  add  to,  subtract  from,  change  something  because  we   don’t  agree  with  it   o Lack  of  focus  and  view  of  the  fact  that  everyone  is  different     o Pyramid  of  status:  folks  at  the  bottom  wont  be  honest  with  people  at  the  top,  they  will  just   say  yes   o Environment  –  look  at  the  terrible  things  publicized     o Regional  –  different  viewpoints  of  different  people  who  come  from  different  parts  of  the   country   o Attitude     o Pictures  (vision)   o Numbers  (A,B,C,D  –  do  not  move  D  to  A)   o Some  people  are  morning  people     o   comes  back  to  how  we  prefer  to  present  and  communicate  and  how  we  prefer  to  receive   it   Mastering  Communication  Style  Flexing   o Be  aware  of  your  own  personal  style   o Flex  your  style  to  fit  the  potential  client’s   o Positive  impact  on  salesperson’s  performance  and  relationship   o Note  differences  and  rationalize  them  in  terms  of  specific  characteristics  of  each  buyer’  style   o More  difficult  to  prepare  for  the  amiable-­‐expressive  buyer  and  then  switch  to  an  analytical-­‐ driver  style  

Confirmation  addition   Need  (50%)     o Costing?  Opportunity  cost?  Loss  of  productivity?   • Product/Service   o features  and  benefits  derived  from  need  leading  to  a  solution  which  entails  an  investment   they  are  going  to  make  in  dollars  from  being  productive   The  SPIN  Process  –  Situation  Questions   • Situation   o Have  to  understand  the  marketplace  and  interaction  between  industry,  product,  brand,  and   dynamics  of  growth,  decline,  and  outlook  for  future   o Information  is  available  today  –  of  all  this  stuff,  what’s  important?   o Definition:      finding  out  facts  about  the  buyer’s  existing  situation   o Examples:  

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Impact:      least  powerful  of  the  SPIN  questions.  Negative  relationship  to  success.  Most  people   ask  too  many.   o Advice:      eliminate  unnecessary  situation  questions  by  doing  your  homework  in  advance   Problem   o Definition    Asking  about  problems,  difficulties  or  dissatisfactions  that  they  buyer  is   experiencing  with  the  existing  situation   o Examples    Have  you  ever  had  trouble  managing  your  time  or  your  contracts?  Which  parts  of   the  system  create  error?   o Impact    More  powerful  than  situation  questions.  People  ask  more  problem  questions  as   they  become  more  experienced  at  selling.   o Advice    Think  of  your  products  or  services  in  terms  of  the  problems  they  solve  for  buyers  –   not  in  terms  of  the  details  or  characteristics  that  your  product  possess   Implication  Questions   o Definition    Asking  about  the  consequences  or  effect  of  a  buyers  problems,  difficulties,  or   dissatisfactions   o Examples    What  effect  does  that  problem  have  on  your  productivity?  Could  that  be  impeding   your  ability  to  develop  good  relationships  with  your  customers?   o Impact    The  most  powerful  of  all  SPIN  questions.  Top  salespeople  ask  lots  of  implications   questions.   o Advice    These  questions  are  hardest  to  ask.  Prepare  for  all  questions  by  identifying  and   understanding  the  implications  of  various  suspected  needs  prior  to  the  sales  call.   Need-­‐Payoff  Questions   o Definition    Asking  about  the  value  or  usefulness  of  a  proposed  solution.  They  seek  the  buyers   opinion  as  to  what  life  would  be  like  if  the  problem  was  solved.   o Examples    How  would  better  time  and  consumer  management  help  you?  Would  you  like  to   discuss  how  we  can  do  that  for  you?   o Impact    Versatile  questions  used  a  great  deal  by  top  salespeople.  These  questions  help  the   buyer  understand  the  benefits  of  solving  the  problem.   o Advice    Use  these  questions  to  get  the  buyers  to  tell  you  the  benefits  that  your  solution  can   offer.   SPIN  Questioning  Strategy   o Situation  –  fact  finding  objectives   o Problem  –  current  satisfaction,  achieve  objective  of  uncovering   o

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how  many  people  for  you  employ  at  this  location?  How  do  you  manage  your  time   and  contacts?  

o o

Implication  –  achieve  objective  of  developing  and  channeling  dissatisfaction,  have  high   selling  impact   Need-­‐Payoff  –  achieve  objective  of  rehearsing  and  selectively  channeling  customer   attention,  have  high  selling  impact  

  Planning  and  Presenting   Discovering  Needs  –  Review  ADAPT   • Assessment  questions   o Broad  bases  and  general  facts  describing  situation   o Non-­‐threatening  as  no  interpretation  required    Don’t  like  use  of  the  word  “problem”   o Open-­‐end  questions  for  maximum  information   • Discovery  questions   o Questions  probing  information  gained  in  assessment   o Seeking  to  uncover  problems  or  dissatisfactions  that  could  lead  to  suggested  buyer  needs   o Open-­‐end  questions  for  maximum  information   • Activation   o Show  me  how  this  wonderful  thing  you  have  works   o Customer  profile   • Projection   o Forecasts  are  a  major  portion  of  presentation  –  how  much  money  you’re  going  to  make   o Why  should  we  take  this  on?  Because  this  what  we  anticipate  you  selling  first,  second,  third   quarter,  how  are  you  going  to  make  sure  we  sell  that  much?   o Enter  MARKETING  to  answer  why  should  we  take  this  in?  How  do  you  know  its  going  to  sell?   o TRP  –  targeted  rating  points    How  many  times  your  target  market  would  see  the  brand  or  product  line    How  many  impressions  that  marketing  campaign  was  making  for  the  target  market   profile     o ADI  –  area  of  dominant  influence      Primetime  television  divided  into  states,  buy  by  region   • Transition   o Get  them  from  the  needs,  demonstration,  price,  attack  the  value  situation  and  put  the   contract  together   o Next  compelling  event  –  somebody’s  got  to  install  it  and  train  people  and  you’re  there  when   that  happens     SIER  Hierarchy  of  Active  Listening   • Pyramid   o Responding   o Evaluation   o Interpreting   o Sensing   • American  attention  span  is  10  minutes   • How  can  you  tell  someone  is  listening  to  you?   o Not  texting  on  your  cell  phone     Verbal  Communication:  Listening   • Effective  Active  Listening   o Pay  attention  -­‐  pupils  

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o Make  no  assumption     o Encourage  buyer  to  talk  to  you   o Visualize  –  go  through  What  If  scenario   o Paraphrase  and  repeat   o Monitor  non-­‐verbal   This  is  why  you  ask  open  ended  questions  

  Nonverbal  Communication   • Facial  Expressions   • Eye  movements   • Placement  and  movements  of  hands,  arms,  head,  and  legs   o Folded  arms  are  an  immediate  shut  off   • Body  posture  and  orientation   • Proxemics   o Personal  Distance:    Public  Zone:  >12  feet    Social  Zone:  4-­‐12  feet    Personal  Zone:  2-­‐4  feet    Intimate  Zone:  0-­‐2  feet   o British  business  people  –  all  about  distance,  do  not  get  close   o Italians    right  away  close   o Latin  Americans  close  after  they  realize  you  like  them   • Variation  in  voice  characteristics   o Speaking  rate  and  pause  duration   o Pitch  or  frequency   o Intensity  and  loudness     Communication  –Style  Principles   • 1.  Individual  Differences   o individual  differences  exist  and  are  important   o each  person  displays  individual  array  of  verbal  and  nonverbal  characteristics   • 2.  Communication  style  as  a  way  of  thinking  and  behaving   o a  preferred  way  of  using  once  abilities   o ability  is  how  well  you  can  do  something   o style  is  how  you  like  to  do  it   • 3.  Individual  styles  tends  to  be  stable  over  time   o based  on  hereditary  and  environmental  factors   o out  style  tends  to  remain  rather  constant  throughout  life   o the  ability  to  flex  can  be  enhanced   • 4.  There  is  a  finite  number  of  styles   o most  people  display  one  several  behavioral  clusters   o we  can  often  label  a  person’s  preferred  communication  style   • 5.  Get  in  sync  with  styles  of  others   o communication  style  difference  can  be  source  of  friction   o develop  ability  to  adapt  to  another  persons  style       Improving  Relationship  Skills   • First  goal:  understand  your  own  preferred  communication  style   • Second  goal:  develop  a  greater  understanding  and  appreciation  for  different  styles  

• Third  goal:  manage  selling  relationships  by  adapting  style  (style-­‐flexing)     Nonverbal  Key  Points   • Open:  eye  contact,  smile   • Defensiveness:  moving  far  away  from  you   • Boredom:  pen  tapping,       Framework  for  Communication  Style  Classification   • Sociability  and  Dominance   o High  sociability  and  high  dominance:  emotive   o High  sociability  and  low  dominance:  supportive   o Low  Sociability  and  high  dominance:  directive   o Low  sociability  and  low  dominance:  Reflective     • Dominance  Continuum   o Low    Cooperative    Let  others  control    Low  assertiveness   o High    Like  to  control    Initiate  demand    More  aggressive     o Reflective  Style    Control  emotional  expression    Displays  preference  for  order    Tends  to  express  measured  opinions    Seems  difficult  to  get  to  know     Distribution  (Case  4)   • Physical  Side   o Distributor  with  warehouses,  railroad  tracks,  trucks  ,  people  in  the  marketplace     o Food  product    -­‐  shelf  life     • Marketing  Side   o Brand  –  varieties   o Location  –  retail  store   o Price   o Market  coverage   o On-­‐premise  –  consume  it   o Off-­‐premise  –  buy  and  consume  at  another  location   • Numbers  get  broad  and  span  builds  quickly  in  these  systems   • Be  involved  in  all  of  this  before  you  can  go  to  brand  management     How  do  they  go  to  market?   • Options:   o Direct  sales  force  –  all  of  the  sales  people  that  cover  markets  for  that  company  get  paid  by   that  company    Military  Structure:  sales  people  on  the  bottom,  then  sales  managers    All  paid  by  the  company   o Distributor    

o Broker   o Agents     • MFG    Distributor    Chain  Retailer   o 45%,  22-­‐26%,  22-­‐26%  margins  between   o certainly  adds  to  final  price  point  in  the  market  place   o Sell  the  question  of  title      Passage  of  title  removes  control  of  price   • MFG    Broker   o Marketing  arm   o Get  between  3-­‐8%  on  everything  they  sell   o Have  one  for  each  major  market  in  the  country   o 58-­‐63  major  markets  in  the  country   How  do  companies  decide  which  way  to  go?   • Who  is  going  to  give  you  the  best  market  coverage  out  there?   • Most  cost-­‐effective   • What  has  been  done?  –   o Competition  and  what  do  they  do  empirically  or  historically?   • Best  fit   o Why  did  P&G  buy  Gillete?       Adaptive  Selling  Requires  Versatility   • Versatility  describes  ones  ability  to  minimize  communication-­‐style  bias   o Tendency  to  focus  on  particular  product  or  service   • Adapting  to  the  customers  preferred  style  can  enhance  sales  performance   • Move  toward  a  more  mature  style   • Strength-­‐weakness  paradox   • Intensity  zones     Minimizing  Communication  Style  Bias   • Salespeople  often  focus  too  much  on  the  content  and  not  enough  on  the  delivery  of  their  sales   presentation   • It  can  be  a  barrier  to  sales  successes   • One  must  work  with  people  from  all  four  quadrants   • Become  highly  adaptable     Adaptable:  Gandhi  in  negotiation  –  satyagraph       1. Truth   2. No  fears   3. Exercises  self-­‐control   4. Seeks  solutions   5. Respects   6. Does  not  use  violence  or  insults   7. Ready  to  change  mind  and  differ  with  himself   8. Switches  easily  from  small  picture  to  the  big  one   9. Humble  and  trusts  opponents   10. Learn  from  within   11. Relies  on  his  own  resources  and  strengths   12. Appeals  to  others  spiritual  identity   13. Tenacity,  patient  and  persistent    

14. Learns  from  the  opponent   15. Goes  beyond  logical  reasoning  and  trust  his  instinct  as  well  as  faith     Strategic  Prospecting  and  Preparing  for  Sales  Dialogue   • Strategic  processing  –  process  by  which  salespeople  separate  out  those  that  are  more  likely  to  buy   from  those  that  are  less  likely  to  buy  in  order  to  avoid  wasting  resources   • Leads  may  be  generated  in  a  variety  of  methods.  It  is  important  for  salespeople  to  know  which  are   more  effective.   • Satisfied  customers  are  often  the  best  source  of  good  leads.   • A  strategic  prospecting  plan  will  improve  a  salesperson  prospecting  efficiency  and  effectiveness.   • Salespeople  should  spend  some  time  learning  what  they  can  (without  wasting  resources)  about  their   qualified  leads  in  order  to  develop  an  effective  sales  strategy.   Prospecting   • Rejection  –  20:80  Rule   • What  if  situation  with  20%   o Wal-­‐Mart  $2.5M  loss   o 3  or  4  clients  with  potential  and  concentrate  on  them  

Sales Prospecting and Preparing for Sales Dialogue & Planning and Presenting Strategic  Prospecting  and  Preparing  for  Sales  Dialogue   • Strategic  prospecting  –  process  by  which  salespeople  separate  out  those  that  are  more  likely  to  buy   from  those  that  are  less  likely  to  buy  in  order  to  avoid  wasting  resources   • Leads  may  be  generated  in  a  variety  of  methods.  It  is  important  for  salespeople  to  know  which  are   more  effective.   • Satisfied  customers  are  often  the  best  source  of  good  leads.   • A  strategic  prospecting  plan  will  improve  a  salesperson  prospecting  efficiency  and  effectiveness.   • Salespeople  should  spend  some  time  learning  what  they  can  (without  wasting  resources)  about  their   qualified  leads  in  order  to  develop  an  effective  sales  strategy.   Prospecting   • Rejection  –  20:80  Rule   • What  if  situation  with  20%   o Wal-­‐Mart  $2.5M  loss   o 3  or  4  clients  with  potential  and  concentrate  on  them   Why  /buyers  wont  See  Salespeople   • They  may  have  never  heard  of  the  salesperson’s  firm.   • They  may  have  no  need;  they  just  bought  the  product  category.   • The  buyer  may  have  their  own  deadlines  on  other  issues.   • Buyers  are  constantly  getting  calls  from  the  salespeople  and  do  not  have  the  time  to  see  them  all.   • Gatekeepers  in  any  organization  screen  their  bosses’  calls  and  are  often  curt  and  even  rude.   Qualified  Prospects…   • Can  benefit  from  the  sales  offering   • Have  the  financial  wherewithal  to  make  the  purchase   • Play  and  important  role  in  the  purchase  decision  process     • Are  eligible  to  buy  based  on  a  fit  within  the  selling  strategy   • Are  reasonably  accessible  and  willing  to  consider  sales  offering   • Can  be  added  to  the  customer  base  at  an  acceptable  level  of  profitability     Importance  of  Effective  Prospecting   • Suppose  it  takes  10  leads  to  generate  1  qualified  prospect   • And  suppose  it  takes  10  qualified  prospects  to  generate  1  customer   • You  would  need  100  leads  to  generate  1  customer     Time  management   2/29/2012   Prospecting     • Home  to  office  or  home  to  territory   • Do  you  have  it  in  writing?  –  if  you  don’t,  keep  talking  to  people     Strategic    Prospecting   • Process  of  identifying,  qualifying,  and  prioritizing  sales  opportunities,  whether  they  represent   potential  new  customers  or  opportunities  to  generate  additional  business  from  existing  customer   • Sales  lead    screening  procedures  for  qualifying  leads    qualifying  prospects    sales  opportunities   for  the  sales  person   Importance  of  Effective  Positioning   • The  better  the  lead  generation  method,  the  higher  the  proportion  of  qualified  leads   • The  more  accurate  the  qualifying  process,  the  higher  the  proportion  of  customers  per  qualified  lead   • Improving  the  lead  generation  method  so  that  10  leas  generate  two  qualified  customers  means  you   will    need  only  50  leads  to  generate  one  customer   o 50  leads    1  customer     o how  many  people  do  they  have  trained  to  take  your  job?  

o 2012  employee  cut  –  how  much  will  it  cost  to  higher  a  new  person  that’s  just  as  good?   Gathering  Precall  Information:  The  Prospect  and  the  Organization   • Information  needed   o The  Prospect    What  is  the  prospects  personality  type?      Easy  going?  All  business?    It  this  prospect  willing  to  take  risks?    Are  they  confident  with  their  decision  making?    Get  prospect’s  name  and  title  correct.   o Prospect’s  Organization    Who  and  how  many  vendors  does  the  prospect  presently  buy  from?    How  much  and  how  long  have  they  been  purchasing  from  their  supplier(s)?    What  challenges  is  the  organization  facing?    What  type  of  business  are  we  dealing  with?    To  what  market  does  the  company  sell?    Who  are  its  primary  competitors?    What  does  the  company  make  and  sell?   • Source   o The  Prospect    Observation  and  experience  with  buyer    May  have  to  ask  the  prospect   o Prospect’s  Organization    Salesperson  may  have  to  ask  for  this  information.    Can  be  gathered  from  a  directory  and  company  web  site    Annual  reports  and  company  website.   Correct  spelling  and  pronunciation  can  be  gathered  by  asking  the  receptionists  or  secretary  or   gatekeeper  to  verify  information.     th Guest  Speaker  Monday,  March  5   • Triage  –  consultants  in  the  health  care  field     Determinants  of  Customer  Delivered  Value   • Total  Customer  Value   o Product  value   o Services  value   o Personnel  value   o Image  value   • Total  Customer  Cost  –  first  part  to  understanding   o Monetary  cost   o Time  cost    B2B:  how  much  do  I  have  to  spend  with  you  so  I  understand  fully  what  we’re  buying   from  you      Describe  this  to  the  people  who  are  going  to  use  this    Explain  to  CFO  why  I  committed  $3  million  of  resources   o Energy  cost   o Psychic  cost     If  you  develop  your  creativity,  you  will  be  welcomed  by  businesses  who  know  the  premium  that  today’s   competitive  firms  put  on  discovery  and  initiative  

The  individual  creativity  is  SPIRITED   • Spontaneous   • Persistent   • Inventive   • Rewarding   • Inner  openness   • Transcendent   • Evaluative   • Democratic       Planning  and  Presenting   Key  thoughts   • Professional  salespeople  rely  on  organized  sales  dialogues  and  written  and/or  oral  presentations   • Poor  grammar  and  spelling  will  severely  diminish  the  effectiveness  of  a  written  proposal   • Successful  professional  salespeople  develop  a  sales  call  strategy  prior  to  initiating  the  sales  dialogue   • Sales  call  strategies  include  a  plan  for  asking  questions  and  uncovering  and  understand  the  buyers   buying  motives       3/19/2012  and  3/26/2012  Planning  and  Presenting     Presentations   • Communication    idea  –  update   3  Formats   • Canned   o Little  training  is  required,  inflexible/not  customizable;  difficult  to  build  trust   o No  differentiation  in  need   o Contradicts  everything  we  look  at  in  the  marketing  practice   • Organize  and  Customize   o Extensive  training  is  required,  customizable,  interactive,  fosters  trust   o Keyed  on  the  client  or  customer   o Requires  tremendous  amount  of  flexibility     o Think  of  this  in  terms  we  use  and  draw  parallels  with  this  in  the  interviewing  process   • Written  Presentation   o Some  training  is  required,  customizable  while  being  written  but  not  once  delivered,  may  be   perceived  as  more  credible     o Hard  copy   o Not  email,  or  texts,  or  technology     o Don’t  forget  importance  of  expressing  yourself  on  paper  or  your  writing  skills   o What  you  write  and  what  you  send  to  people  is  a  reflection  of  who  you  are    Misspell  one  word  on  a  resume:  resume  is  thrown  away   o Assume  that  you  have  brought  hard  copies  for  everyone   Components  of  a  Written  Proposal   • Executive  summary   • Needs  and  benefits  analysis   • Company  description   • Pricing  and  sales  agreement   • Suggested  action  and  timetable   o Timetable:  who,  what,  when,  where,  why,  how  much,  and  how  soon?   o March  26,  we  do  business,  what  happens  from  here  on  out    2  weeks,  3  weeks,  May,  June  

 

Psychologically  conveys  that  we  will  walk  the  talk   Builds  trust  relationship  more  

  Sales  Dialogue  and  Presentation  Template   • Section  1:  Prospect  Information   • Section  2:  Customer  Value  Proposition   • Section  3:  Sales  Call  Objective   o Is  it  always  going  to  be  about  buying  one  of  our  services?  No.   • Section  4:  Linking  Buying  Motives,  Benefits,  Support  Information  and  Reinforcement  Method   • Section  5:  Competitive  Situation   o The  less  you  say  the  better   • Section  6:  Beginning  the  Sales  Dialogue   • Section  7:  Anticipate  Questions  and  Objections   • Section  8:  Earn  Prospect  Commitment   • Section  9:  Build  Value  through  Follow-­‐up  Action       12  Simple  rules  for  Writing  (in  text)   1. Double  check  company’s  names,  titles,  and  individual’s  names.   2. The  spelling  of  words  you  are  not  sure  of  should  always  be  looked  up.  Do  not  rely  on  your  word   processor’s  speller  checker.   3. Take  a  break  before  proofreading.   4. Proofread  an  edit  improvements  rather  than  to  simply  catch  mistakes.  Improve  clarity  and  crispness?   5. Repeat  the  proofreading  process  and  when  possible  have  a  third  party  read  for  meaning,  clarity,   grammar  and  spelling.   6. Use  hyphens  to  avoid  confusion   7.   8.   9. Avoid  starting  sentences  with  and  or  but   10. Use  like  for  direct  comparisons;  use  such  as  for  examples     11. Use  a  dash  to  set  off  an  end  a  though  in  a  sentence  that  differs  from  the  preceding  concept  or   thought.   12. Periods,  commas,  and  question  marks  go  within  quotation  marks;  semi-­‐colons  go  outside  quotation   marks.     Making  the  Sales   Group  Sales  Presentations   • “When  selling  to  groups,  salespeople  can  expect  tough  questions  and  should  prepare  accordingly.”   • “When  selling  to  groups,  salespeople  should  take  every  opportunity  to  re-­‐sell  individual  group   members  prior  to  the  group  presentation  .”   o Money  is  always  a  good  opener   o Get  people  who  will  be  your  advocate       Think  Outside  the  Bubble  -­‐  Differentiation   • Do  you  know  where  the  breakdowns  occur  in  your  industry?  Can  you  turn  these  breakdowns  into  a   major  business  opportunity?   • Are  you  looking  beyond  your  industry  to  discern  how  to  deliver  more  value  to  your  customers?   • If  your  business  is  not  performing  well,  where  are  the  breakdowns  occurring  and  what  management   disciplines  must  you  apply  to  fix  your  systemic  problems?  

• •

Can  you  see  an  opportunity  to  meet  a  neglected  need  by  widening  your  company’s  frame  of   reference?   Is  the  focus  of  your  business  narrow  enough  to  enable  you  to  target  markets  and  build  the   capabilities  needed  to  serve  those  markets?  

      Your  Interview   • What  are  you  going  to  do  to  differentiate?   o Price?   o Quality?   o Value  Creation?   • Send  interviewer  a  handwritten  note     Making  the  Presentation   • DON’T  BE  LATE   o Challenge  in  Atlanta  and  Chicago     o Get  stuck  in  NYC,  don’t  run  out  of  gas     • Logistics   o Lighting  makes  a  difference   o Seating    Horseshoe    Conference  table     o Timing  and  Mobility      15  minutes:  stationary    Longer,  walk  a  little  bit  and  focus  on  individuals     • Don’t  give  them  anything  to  read  before  you  start  your  presentation      

Briefs & Role Play BRIEFS   •

•     ROLE  PLAY   • • • • • • • •

• • • •

Blue  Ocean  and  Sales   o Products  and  Services  essentially  have  the  same    Price    Quality   o How  do  you  differentiate?    Value  Creation     o If  you  were  a  square,  maybe  you  need  transition  to  the  circle   o So  why  should  they  buy  from  me?    Great  GPA    Activities    Leadership    Overcame  obstacles      So  does  everyone  else     Six  Sigma   o Know  something  about  quality  control  management    

Business  dress   PowerPoint   2  people  on  each  side  of  table     20-­‐25  minute  presentation   If  you’re  the  buyer  first  –  representing  the  buyer  company   o Victoria  Secret  is  the  buyer,  and  NASCAR  is  trying  to  get  sponsorship   DO  RESEARCH   o Cost  of  sponsorship,  amount  of  people,  demographics   Go  through  all  of  the  steps  in  the  sales  process   o Go  into  the  syllabus  and  start  looking  at  these  steps   1  sales  presentation   o About  half  way  through,  use  some  sort  of  excuse  like  I  think  we’re  going  to  have  to  bring   somebody  else  in   o Then  you  change  positions     o Go  outside,  knock  on  the  door,  and  come  back  in  to  finish  sales  presentation   Be  creative  but  do  some  research   Graded  individually     No  hard  copy  necessary   Stay  away  from  any  kind  of  scripting   o Practice,  practice,  practice    

    3/23/2012   ROLE  PLAY   • 20  minutes   • Sitting  across  from  each  other   • Buyers  on  one  side,  sellers  on  the  other   • Knock  on  the  door  if  you  are  the  selling  portion,  buyers  stand  to  greet  them   1.  APPROACH  

Who  you  are   Who  you  represent   Connectivity  with  the  appointment  –  called  the  secretary  or  networked  to  get  appointment   Business  communication  information  –  business  card   Ask  permission  to  put  your  stuff  on  somebody’s  desk   Give  them  an  agenda  of  what  you  are  going  to  do  for  the  next  20  minutes  of  presentation   o Want  to  confirm  what  we  researched  on  your  company   o Want  to  ask  a  few  more  questions   o Want  to  tell  you  more  about  our  products   o Then  talk  about  what  were  offering  and  how  we  can  serve  your  needs   • Product/  Service     o Features,  attributes   o BENEFITS  as  they  relate  to  your  needs,  as  a  company   2.  NEEDS  IDENTIFICATION   • Something  that  addresses  productivity  is  a  great  start   • Find  out  via  all  of  these  questions  if  there  are  any  opportunity  loss  situations   o Ex.  Honda  leasing  case  using  Buicks  for  field  personnel   o Paying  $2000/month  for  field  people:  interested  in  maintenance,  dependability,  etc.   • Find  out  what  the  needs  are   2a.  SWITCH   • We  will  need  to  reschedule  for  another  time   • NCE   • Then  buyers  come  in  as  new  sales  people   • Follow  up  meeting:   o Very  brief  summary  of  what  happened  in  the  first  meeting   o Make  sure  business  card  ritual  is  followed   o Demonstration,  comparison  of  costs,  how  the  product  looks     3.  PRODUCT/SERVICE    PRESENTATION   • Demonstration   • Price  objection   o Mount  Blanc  pens:  companies  give  gifts  like  this  to  clients,  employees,  or  both    Big  deal  because  $235  per  pen  for  25,000  employees  is  a  huge  deal    Sense  of  true  appreciation  as  a  gift  from  company  to  employee   o How  to  overcome  it   • As  you’re  going  through,  you  want  to  ask  If  they  have  any  concerns   o Don’t  get  to  close  and  then  hear  concerns     4.  OVERCOMING  OBJECTIONS   • Specific  time  window   • Don’t  want  to  repeat  product  demonstration  again,  waste  of  time   • Questioning  skills     o Use  to  get  information   o And  make  sure  they  are  following  along  with  minimal  concerns   5.  CLOSE   • Want  the  whole  thing   o If  you  cant  get  that,  go  with  a  pilot:  month,  quarter   • Come  out  with  the  NCE   o Another  meeting,  etc.   o Asking  right  here  for  the  order   • Try  to  complete  presentation  with  a  forecast   • • • • • •

o

Ex.  Impacts  on  insurance  premiums    

  PRICE   • •

Cost  of  price  change   Installation,  training,  intense  follow  up   o You  will  be  there  and  your  company  will  provide  24/7  help  

  Grading  Process   • Individual  Grading   o Name   o Communication  Skills   o Practice   o Component   o Transition   • Lax  on  technical  aspects  like  being  right  or  wrong  and  if  your  costs  analysis  are  correct   • Concerned  about  technique  and  process     • Graded  on  selling  aspect  mostly,  some  grading  on  buyer     Extras   • Divide  speaking  by  what  seams  natural   o Avoid  script  dependence     • Establish  relationship  and  sale  on  first  meeting   • Address  concerns  right  away   o I  know  what  your  concerns  are,  we  have  had  them  arise  with  previous  clients   • Divided  10  and  10  among  sides   • Outside  research  and  creative  research   • Use  PPT   o One  of  the  sellers  may  actually  have  to  stand  up  at  the  podium   o Laptop  on  table  too   • Not  hard  copies  of  presentations  but  have  it  available     o But  tell  them  in  the  beginning  that  they  are  there   • No  interruptions          

Final Presentation www.netsuite.com   userid:  [email protected]   password:  net123     NetSuite  and  Changing  Systems   • Time   • Lost  productivity  hours   • Probability  with  systems  and  information  of  losing  something     o Hackers     o Level  3  security,  same  thing  banks  use  

Final Exam

March 30, 2012

Addressing  Concern  &  Earning  Commitment   Objection  (sales  Resistance)   • Anything  the  buyer  says  or  does  that  slows  down  or  stops  the  buying  process   Reasons  why  prospects  raise  objections   • Prospect  want  to  avoid  sales  interview   • Salesperson  has  failed  to  prospect  and  qualify  properly   • Objecting  is  a  matter  of  custom   • Prospect  resists  change   • Prospect  fails  to  recognize  a  need   • Prospect  lacks  information     o Increase  dollar  amount,  increase  risk,  increase  empathy  by  putting  yourself  in  their  shoes   LAARC  Method  For  Handling  Buyer  Resistance   • Listen   • Acknowledge   • Assess   • Respond   • Confirm   ISO  9,000-­‐14,000   • Full  description  on  operations     • Have  to  get  this  to  sell  product  in  Europe     Commitment   • Creation  of  an  obligation  between  the  seller  and  buyer   • Seller  obtains  the  buyer’s  obligation  to  a  specific  action   • The  specific  action  is  usually  linked  directly  to  one  of  the  sales  call  objectives     What  Constitutes  Commitment   • An  appointment   • Agreement  for  the  next  meeting   • Agreement  for  product  memo   • A  sale     Guidelines  for  Earning  Commitment   • Look  for  the  Commitment  Signals   o That  will  get  the  job  one   o I  didn’t  realize  you  delivered  everyday   o The  price  is  lower  than  I  thought  it  would  be   • Ask  Trial  Commitment  Questions   o What  do  you  think  about  what  we’ve  discussed?   o Do  you  see  how  this  well  help  your  organization?     • Resolve  “Red  Light”  Statements  Made  by  the  Prospect   o I’m  not  sure  that  will  work   o The  price  is  higher  than  I  thought  it  would  be   o Your  delivery  schedule  does  not  work  for  us   o I  don’t  see  the  advantage  of  going  with  your  proposal     Techniques  to  Earn  Commitment   • T-­‐Account  or  Balance  Sheet  Commitment   o Summary  close  on  paper   • Success  Story  Commitment   o Salesperson  tells  a  story  of  a  business  that  successfully  solved  a  problem  by  buying  his  or  her   product   o If  you  have  permission  

Ask  for  the  Order/Direct  Commitment   o Simply  ask  for  the  order   • Legitimate  Choice/Alternative  Choice   o Give  the  prospect  a  limited  number  of  choices   • Summary  Commitment   o Summarize  all  the  confirmed  benefits  that  have  been  agreed  to   Dealing  with  No!   • Evaluate  the  customer’s  explanation   • Maintain  the  relationship  foundation   • Understand  rejection  is  a  fact  of  life   • Evaluate  your  performance   • Learn  from  the  situation   • Make  improvements   Dealing  with  YES!   • Obtain  the  customers  signature   • Provide  a  plan  of  action  (i.e.  answer  the  question  now  what?)   • Answer  any  remaining  questions   • Assure  the  buyer  you  will  follow-­‐up   Thank  the  customer  for  the  business     •