1. Copyright © 2001 by Harcourt, Inc. 4 Module 4 Communication Skills

2. Copyright © 2001 by Harcourt, Inc. 4 Sales Communication as a Collaborative Process Relational Sales Communication –A two-way and naturally collaborative interaction –Allows buyers and sellers to Develop a better understanding of the need situation Work together to best provide for the customer’s needs

3. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Questioning Types of Questions Classified by Amount and Specificity of Information Desired Open-end or Nondirective Questions – free response What happens when…? How do you feel…? Describe the… Closed-end Questions – response limited to a few words. –Are you… –How many… –How often… Dichotomous/Multiple-Choice Questions – directive forms of questioning –Which do you prefer, the ____ or the ____?

4. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose Probing Questions – designed to penetrate below generalized or superficial information 1.Requesting Clarification “Can you share an example of that with me?” 2.Encouraging Elaboration “How are you dealing with that situation now?” 3.Verifying Information and Responses “So, if I understand you correctly… Is that right?”

5. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose Probing Questions Evaluative Questions – 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 se the merits of…?” –“What do you think…?”

6. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose Probing Questions Evaluative Questions 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…”

7. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Questioning Types of Questions Classified by Strategic Purpose Probing Questions Evaluative Questions Tactical Questions Reactive Questions – refer to or directly result from information previously provided by the other party. –“You mentioned that … Can you give me an example of what you mean?” –“That is interesting. Can you tell me how it happened?”

8. Copyright © 2001 by Harcourt, Inc. 4 Guidelines for Combining Types of Questions for Maximal Effectiveness (Exhibit 4.1) Amount of and Specificity of Information Desired Choice from Alternatives Discussion and Interpretation Confirmation and Agreement Explore and Dig for Details Gain Confirmation & Discover Attitudes/Opinions Change Topics or Direct Attention Follow-Up Previously Elicited Statements Amount of and Specificity of Information Desired Open-end Questions Designed to be Probing in Nature Closed-end Questions Designed to be Probing in Nature Dichotomous or Multiple-choice Questions Designed to be Probing in Nature Open-end Questions Designed to be Reactive in Nature Closed-end Questions Designed to be Reactive in Nature Dichotomous or Multiple-choice Questions Designed to be Reactive in Nature Open-end Questions Designed to be Tactical in Nature Closed-end Questions Designed to be Tactical in Nature Dichotomous or Multiple-choice Questions Designed to be Tactical in Nature Open-end Questions Designed to be Evaluative in Nature Closed-end Questions Designed to be Evaluative in Nature Dichotomous or Multiple-choice Questions Designed to be Evaluative in Nature

9. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Strategic Application of Questioning Generate Buyer Involvement Provoke Thinking Gather Information Clarification and Emphasis Show Interest Gain Confirmation Advance the Sale

10. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: SPIN Questioning System Situation Questions – solicits general background information and descriptions of the buyer’s existing situation –“Who are your current suppliers?” –“Do you typically purchase or lease?” –“Who is involved in the purchasing decisions?”

11. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: SPIN Questioning System Situation Questions Problem Questions – follow and relate to situation questions probing for specific difficulties, developing problems, and areas of dissatisfaction –“How critical is this component for your production?” –“What kind of problems have you encountered with your current suppliers?” –“What types of reliability problems do you experience with your current system?”

12. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: SPIN Questioning System Situation Questions Problem Questions Implication Questions – follow and relate to information from the problem questions assisting the buyer in understanding the potential problems of the current problem and the urgency in resolving it –“How does this affect profitability?” –“What impact does the slow response of your current supplier have on the productivity of your operation?” –“How would a faster piece of equipment improve productivity and profits?” –“What happens when the supplier is late with a shipment?”

13. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: SPIN Questioning System Situation Questions Problem Questions Implication Questions Need-payoff Questions – used to propose a solution and develop commitment from the buyer, based on the implications of the problem –“Would more frequent deliveries allow you to increase productivity?” –“If we could provide you increased reliability, would you be interested?” –“If we could improve the quality of your purchased components, how would that help you?” –“Would you be interested in increasing productivity by 15 percent?”

14. Copyright © 2001 by Harcourt, Inc. 4 Funneling Sequence of ADAPT Techniques for Needs Discovery Funneling Sequence of ADAPT Techniques for Needs Discovery (Figure 4.1) Broad bases and general facts describing situation Non-threatening as no interpretation is requested Open-end questions for maximum information Assessment Questions Questions probing information gained in assessment Seeking to uncover problems or dissatisfactions that could lead to suggested buyer needs Open-end questions for maximum information Discovery Questions Show the negative impact of a problem discovered in the discovery sequence Designed to activate buyer’s interest in and desire to solve the problem. Activation Questions Projects what life would be like without the problems Buyer establishes the value of finding and implementing a solution Projection Questions Confirms interest in solving the problem Transitions to presentation of solution Transition Questions

15. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Listening Verbal Communication: Listening (Figure 4.2) Effective Active Listening Pay Attention Monitor Non-Verbals Paraphrase and Repeat Make No Assumptions Encourage Buyer to Talk Visualize

16. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: Using Different Types of Listening Social Listening Serious Listening –Active Listening –Concentration –Cognition

17. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Verbal Communication: SIER Hierarchy Active Listening (Figure 4.3) Sensing Interpreting Evaluating Responding

18. Copyright © 2001 by Harcourt, Inc. 4 Verbal Communication: Giving Information Understanding the Superiority of Pictures over Words Impact of Grammar and Logical Sequencing

19. Copyright © 2001 by Harcourt, Inc. 4 Nonverbal Communication Facial Expressions Eye Movements Placement and Movements of Hands, Arms, Head, and Legs Body Posture and Orientation Proxemics Variation in Voice Characteristics –Speaking Rate and Pause Duration –Pitch or Frequency –Intensity and Loudness

20. Copyright © 2001 by Harcourt, Inc. 4 Common Nonverbal Clusters Common Nonverbal Clusters (Exhibit 4.8) Cluster NameCluster MeaningBody Posture & Orientation Movement of Hands, Arms, & Legs Eyes & Facial Expression OpennessOpenness, flexibility and sincerity Moving closer Leaning forward Open hands Removing coat Unbutton collar Uncrossed arms & legs Slight smile Good eye contact DefensivenessDefensiveness, skepticism, and apprehension Rigid body Crossed arms & legs Minimal eye contact Glancing sideways Pursed lips Tilted head EvaluationEvaluation and consideration of message Leaning forward Hand on cheek Stroking chin Chin in palm of hand Dropping glasses to lower nose DeceptionDishonesty and secretiveness Patterns of rocking Fidgeting with objects Increased leg movement Increased eye movement Frequent gazes elsewhere Forced smile ReadinessDedication or commitment Sitting forward Hands on hips Legs uncrossed Feet flat on floor Increased eye contact BoredomLack of interest and impatience Head in palm of hands Slouching Drumming fingers Swinging a foot Brushing & picking at items Tapping feet Poor eye contact Glancing at watch Blank stare

21. Copyright © 2001 by Harcourt, Inc. 4 Written Communication: Written Communication: Sales Proposals The Seven Deadly Mistakes of Proposal Writing 1.Not writing a proposal. 2.Not fully understanding the customer’s business. 3.Missing the buyer’s deadline. 4.Producing a proposal with little “drive-up” appeal. 5.Not saying anything that really makes a difference. 6.Using a standardized boilerplate approach. 7.No one owning the responsibility or having the authority to create quality and effective proposals.

22. Copyright © 2001 by Harcourt, Inc. 4 Written Communication: Written Communication: Sales Proposals 5 Common Parts of a Proposal 1.Executive Summary 2.Needs and Benefits Analysis 3.Company Description 4.Pricing and Sales Agreement 5.Suggested Action and Timetable