2What Are Your Sales Goals? “To create a customer” - Peter Drucker“To bring our audience and advertisers together” - KOMC/KRZK, Branson, MO“To help people sell more Fords,” -- Lowry Mays, former CEO of Clear Channel CommunicationsWhat do we sell? We sell customers.
3Objectives What are your sales objectives? To get results for customersTo develop new businessTo retain and increase current businessPresellUpsellTo increase customer loyalty6
4Strategies What are your sales strategies? To sell solutions to advertising and marketing problemsComplete customer focusTo reinforce the value of advertising and of your medium7
5Strategies To create value for your product To become the preferred supplierTo establish, maintain, and improve relationships at all levels of the client and agency (keep agency informed)To provide the best research, information, and adviceTo be customers’ marketing consultant by providing solutions
6Strategies To innovate New packages, new products, new promotions New creative approachesNew technology“The only functions of an enterprise: marketing and innovation.” Peter Drucker
7Key Functions What are a salesperson’s key functions? To position your product to have a differential competitive advantageTo manage relationships and build trustTo create rapportTo empathizeTo persuadeTo cooperateTo build consensus8
8Key Functions To solve problems To create a sense of urgency CreativityGet resultsTo create a sense of urgencyTo communicate effectively up, down, and acrossKeep your management and coordinator informedFrom the street, bring back market and competitor knowledge
9Old Paradigms Of Selling AIDAAttentionInterestDesireActionCommitmentCloseEach step used tricks
10Old Paradigms * Old tricks don’t work anymore. Designed in 20s and 30s for one-call, low-cost, unimportant decisionsOld selling models don’t work in today’s highly competitive, interactive, sophisticated business environment.* Adapted from Sales Effectiveness Training by Carl Zeiss and Thomas Gordon,Dutton, 1993
11Old Paradigms Don’t work because: Increased competition, increased need for stronger customer loyalty and long-term relationshipsIncreased cost of developing new businessSolution selling requires partnering.Solution selling is all about establishing and maintaining relationships and building trust.
12Old Paradigms Don’t work because: Today’s buyers are more sensitive to traditional sales techniques, manipulation, and tricks.Today’s buyers have a multitude of complex alternatives they can buy.They need help making decisions.They will let you help them only if they trust you and our company.
13Old Paradigms Don’t work because: More, stronger competitors provide buyers with more choices – they don’t have to deal with anyone who doesn’t satisfy their needs or they don’t like or they don’t trust.
14Old Paradigms Don’t work because: Today’s sellers are unhappy with the pressure and grind of one-shot sales (Hunters), they prefer long-term relationships (Farmers).Today’s sellers want to get results for clients – more satisfying.Today’s sellers want to be trusted, respected, and not seen as manipulators (old-fashioned sales image).
15The New ParadigmThe customer is not the opponent – not someone to be overcome or beaten.The customer is a partner who needs:A trusting relationshipProblems solvedNeeds and wants metConcerns addressedA win-win, fair agreementTo get started before a competitor does
16Solution Selling Is Need-Satisfaction Selling “Do unto others as they would have others do unto them.”Uncover and define problems and needs.Business problems (rational, often ill-defined)Personal needs (emotional, unconscious)Need-satisfaction selling is difficult.Requires emotional intelligence, interpersonal skills.20
17The Needs-Recognition Process UNOBSERVABLEOBSERVABLE(Unconscious,Semi-conscious)(Conscious)NEEDS and MOTIVATIONBEHAVIOR
18Needs Recognition Process Behavior is observable.Behavior is conscious, purposeful -- people behave for a reason.Motivation is unobservable.Motivation is semi-conscious -- people are usually not fully aware of their motivation that drives behavior.Needs are unobservable.Needs are unconscious, deep seated, changing to get satisfaction -- people are unaware of their needs that drive motivation.
19Solution SellingRelationship rule: People like and trust people exactly like themselves.Trust depends on source credibility:TrustworthinessCompetenceObjectivityExpertisePhysically AttractivenessDynamismSimilarity
20Features, Advantages, Benefits Features: What you’ve got.Channels, splash-screens, impressionsAdvantages: Why what you’ve got is better.Benefits: How what you’ve got solves a problem.Always remember WIIFMThe client is asking himself silently to every feature you describe, “What’s In It For Me?”21
21Solution SellingPosition features, advantages, and benefits as problem solutions.Position features, advantages, and benefits according to needs (“We’re a safe buy,” e.g.)Business needsPersonal needsSee List of Human Needs in the workbook.
22Benefits MatrixUse a Benefits Matrix to position features, advantages, and benefits according to business and personal needs and as problem solutions.See Benefits Matrix in workbook.
23Solutions SellingRelationship rule: People don’t care how much you know until they know how much you care.The best way to let people know how much you care is to listen.
24Effective ListeningThe single most important skill in personal relationships, selling, negotiating, and managing is listening.You can’t have a successful relationship unless you are firmly committed to listening a majority of the time.
25Effective Listening Listening 60% in most relationships -The minimum 80% in some relationships - The maximumIf your partner won’t listen at least 20% of the time, it is not a two-way relationship it’s a one-way relationship like in theater, movies, print, broadcasting, or cable -- you are the audience.
26Effective Listening The Communication Process Listening is an essential component of communication.The Communication ProcessSourceMessageChannelReceiverListeningUnderstandingFeedback
27Effective Communication Effective communication requires understanding the elements of the communication process and using them to enhance your communication effectiveness and to power a relationship forward.More effective communication = stronger relationshipsThe goal, destination of a relationship is agreement.Relationships, like car engines, are very complicated.
28The Elements of the Communication Process Communication -The fuel that powers a relationship forward.Trust - The grease and oil that keeps it running smoothly.Listening - The foundation, the road on which the process of communication travels toward agreement.
30Effective Communication Depends On: Source credibilityMessage strengthChannel effectivenessReceiver characteristicsListening effectivenessResponsive feedback
31Effective Communication Elements that enhance Source Credibility:TrustworthinessCompetenceObjectivityExpertisePhysical AttractivenessDynamismSimilarity“People like and trust people exactly like themselves.”
32Effective Communication Elements that enhance Message Strength:Two-sided argumentOrdering effectsPrimacy and recencyKISS (Keep It Simple, Stupid)USP (Unique Selling Proposition)Focus on benefits to partner
33Effective Communication Channel EffectivenessFace-to-face most effectiveFull, two-way verbal and non-verbal communication with instant feedbackVideo (film, TV, e.g.) next most effective.Audio (radio, e.g.) next.Video and audio can convey emotion and control emphasis, even though they are one-way.Print least effective unless the message is complex.Can’t convey emotion, one-way.
34Effective Communication Receiver Characteristics that affect communication:IntelligenceThe receiver can understand and evaluate messages.Self-confidenceThe receiver trusts self to evaluate communication and make an assured decision.
35Effective Communication Effective Listening is the foundation on which effective communication rests.You can improve not only your listening effectiveness but also the listening effectiveness of your partner on the road to agreement.The beginning of knowledge, learning, relationships, communication, and conversation is a question – an open-ended question.
36Effective Listening Ask an open-ended question. Adopt the proper attitude.Optimistic, open, confident, trusting, respecting, non-defensive, and non-judgmentalShut up and listen.Listen actively: nod, use gestures, smile (Responsive Feedback).Concentrate on the speaker.
37Effective Listening Do not step on sentences. Do not respond to negatives, objections, concerns too quickly.If you do, you appear to be defensive.Do not think of a rebuttal.If you continually rebut arguments, you’ll stop getting them and won’t learn anything.If you think of a rebuttal while trying to listen, you can’t receive 100% of the information you hear.
38Effective Listening Respect the other side’s statements. Respect and learn about their view of the world.Listen for themes.Risk averse, conservative, entrepreneurial, needs recognition, affiliation needs, goal oriented, etc.Be very sensitive to emotional cues.Listen in synchronization – don’t mimic.
39Effective Listening Concentrate on the speaker (open body language). Acknowledge, don’t always agree.“Oh,” “Uh-Uh,” “I see,” e.g.Don’t say “Good,” or “You’re right,” -- judgmental.Do not react emotionally.Control your emotions.Listen with authenticity.Be yourself, others can tell when you’re not sincere.
40Non-Verbal Communication Non-verbal communication conveys 65% of a message’s meaning.Look for individual body language.No universal body language.Use gestures, space, openness, and your body language to:Give the message you care about and like the other person.Match their style and pace.
41Non-Judgmental Listening People have a deep need for someone to listen to them and understand them.Non-judgmental listening responds to this need.Interpreting and understanding their entire message without imposing your preconceived ideas or opinions on it.Non-judgmental listening is non-defensive listening.Sales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993
42Non-Judgmental Listening Listen, understand and accept other people’s perception of the world.Spend time in their shoes.Develop a non-threatening, non-confrontational attitude so people feel secure in opening up, revealing personal information.Offer personal information first and then trade it.Find something you have in common with the other person.Sales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993
43Non-Judgmental Listening Vary your responses, otherwise listening becomes a monotonous technique.Show genuine concern and caring.“I don’t care how much you know until I know how much you care.”Never ask “Why?”No challengesNo obvious, manipulating techniques or leading questions: “Have you stopped beating your wife?” e.g.
44Non-Judgmental Listening Objectives:To understand the other person’s needsOften, the other person just needs to talk.To understand another person’s unique perception of their world.Sales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993
45Listening Roadblocks Denying, minimizing, Cheering up, reassuring, encouragingSympathy, indignation, me-tooing, story-tellingAdvising, teachingBecome condescendingSales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993
46Listening Roadblocks Taking over, rescuing Analyzing, probing, playing detectiveCriticizing, moralizing, warningArguing, defending, counterattackingAll of these responses are judgmental.So the point is to shut up and listen and acknowledge unemotionally … like a therapist does.Sales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993
47Effective Communication Aggressive behavior - “Getting What I Want.”Don’t be aggressive.Assertive behavior - “This Is How I Feel.”Be assertive.Know who you are, what you want, and what you feel and communicate it.Use “I” messages.
48Effective Listening: The Four Steps Listen carefully, actively to other people.Repeat/rephrase their position/objection.“Let me make sure I understand your position…you feel our CPMs are too high?”Get their agreement that you understand.“Is that correct?”Respond with a form of an “I understand” statement (vary your responses)“I understand…,”“Feel, felt, found.”
49“Feel, Felt, Found” Respond: “I understand how you feel …” Acknowledges their feelings and honors them.“Many advertisers have felt the same way …”Reinforces and legitimizes their opinions so they know they aren’t way out, unusual, or silly.“But we have found that higher CPMs are based on three things: highly targeted inventory, high demand, and high renewal rates.”
50Effective Listening Exercise Find a partnerOne is the salesperson, the other the clientClient states an objection, salesperson goes through the four steps of Effective Listening.Practice repeating the phrases.“Let me make sure I understand what you are saying.”“Is that correct?”“I understand how you feel, others have felt the same way, but we have found …”Switch roles after three attempts.
51Solutions SellingPosition features, advantages, and benefits positively as solutions to advertising and marketing problems.Don’t knock the competition.You can’t sell what they don’t have.You can only sell the features, advantages, and benefits you have.
52Don’t Knock the Competition When you knock, you:Waste time.Lose credibility (not objective).Lower your image (stay above it).Open up areas you can’t control.Client/buyer may like competitive salesperson.Build competitors’ image.Bring them up to your level.Rolex doesn’t advertise that’s it’s “better than a Timex.”
53Ways of Dealing with the Competition Don’t mention the competition if you don’t have to -- ignore them.If you have to mention them or are asked a question about them:Compliment the competition.Talk first about your strengths (don’t answer the question directly--like politicians do).Expose generic weaknesses.“Yahoo has very high-traffic and is the best of the portals, but portals aren’t very sticky.”
54The Six Steps of Selling ProspectingIdentifying Problems (discovery)Generating Solutions (research and strategy)PresentingNegotiating and ClosingServicing
55Set Objectives for Each Step Criteria for MADCUD objectives:MeasurableAttainable (accepted)Consistent with company goalsUnder the control of the personDeadlinedMADCUD goals must be flexible
57Goals and ObjectivesThe purpose of goals (long term) and objectives (short term) is to make people feel like winners.Must be bottom-up, not top-downBudgets and quotas are not motivational for all people.
58Goals Set time-spent goals for the five steps of selling. For example: Prospecting %Identifying problems (discovery) %Generating solutions(research,strategy) %Presenting %Closing %How much time spent on each varies according the the experience of the person, type of account list, etc.
59Set Activity Goals Calls/Contacts Meetings Critical skills: Building rapport and trustPresentingSolving problemsOvercoming objectionsAddressing concerns
60Set Activity Goals As Well As Revenue Goals OrdersCritical elements:Creating valueSelling an ideaSelling the proposalSelling the plan (inventory spread and pricing)NegotiatingClosing
61Set Activity Objectives As Well As Revenue Objectives Set activity and revenue objectivesRevenue objectives don’t work for everyone.Calls, appointments, and presentations lead to sales, which lead to revenue--imperative to make the connection.By focusing on activities that lead to revenue, the control of the goal stays with the salesperson.Salespeople can’t always control the size of the order they get.But they can control how many calls they make and effective their sales presentation is.
62Set Activity and Revenue Objectives There must be a well-organized system for tracking and reporting on calls, meetings, presentations, opportunities, and orders.And details on why opportunities were won or lost.Objective-setting exercise in workbook.
63Prospecting: Creating Opportunities Developing new business: finding prospects who have advertising and marketing problems.No one is completely satisfied with their advertising.Make contacts:Write out your telephone pitch in advance.Use the prospect’s name, introduce yourself and your organization.Use a referral if possible. (“Jeff Bezos suggested I call you.”)
64ProspectingState the purpose of the call is to set up an appointment, not to sell anything.Mention a motivating benefit (“special reason” or “special idea”).The word “idea” is magic, consultative.
65Prospecting Pacing is the key on the telephone. Get to the point quickly.Pause often.Match prospect’s style and pace.Put a mirror on your desk and stand up.More animated, friendly, dynamic
66Prospecting On the phone, be persistent (but not obnoxious). If you get a “yes,” reconfirm the time and day.“Do you have your Blackberry handy?”Generally, don’t reconfirm the day of the appointment unless it’s out of town.In town, have your assistant call and say, “She’s on her way for her 10:00a.m. appointment.”
67Prospecting If you get the “don’t-come-see me” stopper: Ask “why”Compliment their business.“If one of your salespeople...”Appointments are imperative.Getting appointments is the most difficult part of selling new business and requires creativity and, most of all, persistence.
68Prospecting Prospecting success ratios: By telephone %Cold calling %Play the odds, use the telephone.Use voice mail effectively.
69Prospecting On cold calls never say: “May I have a few minutes of your time?”“I just happened to be in the neighborhood?”“I’m sorry I interrupted you.”On cold calls always state the purpose of the call and how long it will take.
70Prospecting Methods By Current Advertisers in Other Media By Season By CategoryBy Geographic RegionBy Inactive AdvertisersBy Current AdvertisersBy Business, Civic, and Other Organizations
71Persistence in Prospecting The key to prospecting, in fact, to all selling is persistence.Never, never, never, never, never give up.Every client has at least one problem (perhaps they are unaware of it) that is searching for a solution.
72The Process of Preparation: Identifying Problems Set objectives.Ask Discovery Questions:“What is the age, sex, and lifestyle of your best customers?“What problems do you expect interactive to solve for you?”“What advertising are you doing now?”“What do like best, least about your current advertising?”
73Identifying Problems, Needs (Discovery) The best questions are follow-up questions.Discovery requires solid detective work.Information is power.The more information you get, the more problems you uncover, the more objections and concerns you uncover, the more precise and helpful your solutions will be.See workbook for Discovery Questions.
74Generating Solutions (Research and Strategy) The process of preparationResearch prospect’s category.Advertising and marketing expenditures.Category growth profileResearch prospect’s industry.Rank order of players and their market share.Media expenditures of playersCreative campaigns and approaches of playersMarketing strategy of players
75Generating Solutions (Research and Strategy) Research prospect company’s marketing and advertising goals, strategies, and problems in achieving these goals.Prioritize problems.Research prospect company’s customers.Research prospect’s strengths and weaknesses.Research prospect’s major competitors’ strengths and weaknesses.Research prospect’s current creative approach.
76Generating Solutions (Research and Strategy) Create effective promotions (if appropriate) that will solve the prospect’s problems.TargetedMaximize reachReceptive audience.Brainstorm to generate several solutions.Order, anchor, and frame solutions effectively.
77Generating Solutions (Research and Strategy) Anticipate your competitors’ attacks on you (what they say about you to prospect).Anticipate prospect’s objections and prepare appropriate answers.Keep your sales objectives in mind at all times.Create an account-entry strategy.Create an overall sales strategy – a detailed, step-by-step plan of attack (who does what when).Create a killer presentation.See checklist in the workbook.
78Presenting Confidence is everything! Confidence is an attitude, which you control:OptimismPositive goals (winning, not avoiding a loss)VisualizationMental RehearsalDo the right thing (honesty)
79Presenting: Call Structure GreetingSet tone of the meeting and build rapportNew informationProvide new, relevant information to enhance your source credibility and expertise.OpeningA well-planned statement to pique interest in your proposal and solutionRecap and purposeRecap what challenges and problems you will be addressing and state the purpose of the call.
80Discussion Summary and close Move prospects from desire to conviction that your solution is the best one.Dealing with objectionsConditionsDiscussion tacticsSummary and closeSummarize key points – no more than three – and ask for the order. No ask; no order.
81Dealing With Objections No objection; no saleFigurative and literal objectionsFigurative are not real – they are negotiating tactics and can be ignored.Literal objections are real and must be addressed.Probe to understand.Compliment, restate, and get agreement.Empathize, reassure, and support (“feel, felt, found”).
82Use trial closesForestall objectionsUse “Yes, but…” and compare.Use case histories (case studies).Use “coming to that…”Pass on objections
83Dealing With the Price Objection Hope it comes up; otherwise you’ve underpriced your product.Always talk quality.Break price into smallest possible units.Talk value, not price.Refer to investments, not costs.Advertising is an investment in future profitsUse “you get what you pay for.”
84ConditionsCan’t be overcome; they are legitimate reasons for not buying.
85Discussion Tactics Vary your style. ContrastMovementNoveltyUse equivalencies to dramatize numbers.Narrow down objections and reconfirm understanding.Change the basis for evaluation if necessary.Reassure doubts.Continually evaluate reactions and adjust.
86Summary and Close Summarize three key points Close Ask for the order No ask; no order.Move the sale along.Get a commitment for next steps
87Presenting You’re a marketing solutions provider, not a “seller.” Always keep in mind your #1 sales objective: To get results for customers.Don’t sell customers stuff that won’t work.Don’t sell them something they like just to get an order. Sell them what works best -- you’re the expert.Don’t sell them more than they need – no gouging, they won’t renew.
88Closing Help buyers make the right decision. Create a sense of urgency.Use a variety of closes:The Clincher CloseThe Assumption CloseThe SRO CloseThe Minor-Point CloseThe T-Account CloseThe Pin-Down Close
89Closing Ask for a decision. Once you reach an agreement, scram! Non-binding Letter of Intent (LOI)Commitment to send IO48-hour hold“What else is left?”“If I can resolve these issues, do we have an agreement?”Once you reach an agreement, scram!Don’t be around when buyer’s remorse sets in.
90Closing Be careful about trying to close too aggressively. You can create a sense of urgency, but the timetable has to be theirs.Too much pressure can kill a prospective sale.High pressure raises suspicion.People want to buy, they don’t like being “sold” or “closed.”
91Servicing You are the unique competitive advantage. Set servicing and business increase goals.“You never ‘close’ a sale, you open a long-term relationship.” Dennis WaitleyWhich order is the most important one -- first or second?TangibilizeSend notes (more personal than s), cards, small gifts, etc.
92Servicing Always say “thank you” memorably. Don’t forget anyone (review your account list regularly).Always present new ideas – increases.Pre-sellHandle complaints immediately and honestly (see them as an opportunity to prove how good you are at servicing).
93Solutions Selling Managing relationships Creating value Making proposals that will get results for customersTracking results and making adjustmentsGetting enthusiastic renewals at larger investmentsSee Servicing Exercise in workbook.
94SummaryWhat are three lessons you learned and will put into practice immediately?Write them down in the workbook.