1. The Power of Building Relationships The Power of Building Relationships 3-1

2. The extent of the buyer’s confidence that he or she can rely on the salesperson’s integrity. What is Trust? © 2013 by Nelson Education Ltd.

3. Why is Trust Important? © 2013 by Nelson Education Ltd. A fundamental competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers. The ability of those organizations’ salespeople to earn their customers’ trust is essential to the success of that strategy.

4. How to Earn Trust © 2013 by Nelson Education Ltd. Trust Expertise Customer Orientation Dependability Candor Compatibilit y

5. Trust Exercise © 2013 by Nelson Education Ltd.

6. Knowledge Bases Help Build Trust and Relationships © 2013 by Nelson Education Ltd.

7. Industry Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: the dynamics, structure, culture, and forces that affect the industry or industries in which they work. Benefit: ability to 1) develop and execute effective selling strategies, and 2) be viewed as a market information resource.

8. Company Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: understand their company’s culture, mission, goals, policies, and procedures. Benefit: ability to effectively and accurately represent the company when interacting (e.g., negotiating) with its prospective and current customers.

9. Product Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: a thorough understanding of their product offerings and the various sources of value they provide. Benefit: be perceived (by the customer) as experts and capable of accurately matching solutions to the needs of the customer.

10. Service Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: understand their company’s service capabilities, including limitations, fees, time-frames, and the value they add. Benefit: ability to match their company’s service capabilities to the needs of their customers.

11. Promotion and Price Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: understand the details of, and how to manage, promotional programs and the pricing policies of their products. Benefit: ability to 1) facilitate their customers’ participation in promotional programs and 2) effectively negotiate terms.

12. Market and Customer Knowledge © 2013 by Nelson Education Ltd. Knowledge Needs: understand the markets they serve and their customers, including needs, personalities, and communication styles. Benefit: ability to 1) develop and implement effective selling strategies, and 2) clearly communicate relevant solutions.

13. Competitor Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: their competitors and respective market offers and how they are perceived in the market. Benefit: to position their products against those of their competitors’.

14. Technology Knowledge © 2013 by Nelson Education Ltd. Knowledge Need: understand how utilize sales technology hardware and software (e.g., internet, CRM, laptops, smart phones). Benefit: to leverage technology to me more competitive... work smarter not harder.

15. The Power of Relationship Selling To be successful in selling you have to make selling personal People do business with people, not with companies Relationship selling / consultative selling: Working personally with your customer to understand their needs, putting their needs first, and providing consultation to help them make the best decision for themselves or their business 3-15

16. From Personal to Problem Solving Give the customers what they need rather than what you want to sell them Brands must understand how important each moment of truth is when creating relationships with customers o Moment of truth: The moment the customer comes in contact with the brand Example — Service at the point of interaction; meeting the expectations that the customer has of you as a brand Customer relationship allows you to bridge the gap between a customer’s problem and the solution 3-16

17. From Personal to Problem Solving Consultative selling o Gives a reason to buy from you when the competition is priced lower o It defines the relationship before the sale, during the sale, and after the sale 3-17

18. CRM Tools Help you Manage Relationships Customer relationship management (CRM) tools: Technology solutions that organize all of a customer’s interactions with a company in one place o Makes it easier to understand the lifetime value of a customer o Starbucks uses a CRM tool to power their MyStarbucksIdea.com Web siteCRM tool Source: Starbucks Corporation 3-18

19. Under promise and Over deliver The best salespeople say they will do something by a certain day, and then not only do they do it, but they deliver it one day early Trust is built between salesperson and customer, and the relationship goes to the next level: partnership 3-19

20. When Times are Tough Deliver bad news using the following practices: o Open o Honest o Timely communication 3-20

21. Triple Win: The Ultimate Relationship Triple win: All parties in a relationship win—your customer, you, and your company or organization o It results in more business with your existing customers because you have become a partner in solving their problems, and it brings you new business in the form of referrals o It plays a significant role in the negotiating process 3-21

22. How do you Bring Value? The video Give Value First features Jeffrey Gitomer She discusses the importance of providing value to customers without any expectations To view the video, click hereclick here Source: Buy Gitomer, Inc 3-22

23. How do you Bring Value? Explain with examples, the difference between value-added services provided to the customers and giving value to the customer. A ‘flat 50 percent off’ offer on an apparel brand is a promotional tool and not a value-added service. Substantiate. 3-23

24. Networking: Relationships That Work for You Networking: Art of building alliances or mutually beneficial relationships Networking is a requirement to stay competitive, because it’s virtually impossible to do your job alone Building strong relationships with customers is an excellent way to build your network 3-24

25. Networking Tips of the Trade Start with people you know Join and get involved in professional organizations Attend industry events Keep in touch Create a profile on the major professional social networks Be proactive Mind your manners 3-25

26. Twitter Sells The video How To Use Twitter To Network Before a Conference features Mig Pascual He tells his story on how he used Twitter to engage and build professional relationships with people online prior to meeting them in person at a conference 3-26

27. LinkedIn LinkedIn is a business-oriented social networking site, mainly used for professional networking The Power of Selling group is active on LinkedIn To join the group, click hereclick here

28. Summary Relationships are vital to success in most selling situations. When you understand what the customer wants and needs, you can provide solutions to help your customer meet his goals Adaptive selling occurs when you adapt and customize your selling style based on the behavior of the customer Networking is about exchanging value, not collecting business cards 3-28

29. Step 1: Prospecting / Generating Quality Leads Step 2: Pre Approach - Knowledge gathering and leveraging Step 3: Approach – Making a connection Step 4: Needs Assessment – Discover, confirm or create Step 5: Presentation Step 6: Closing the sale Step 7: Repeat Sales and Referrals Key Skill: Overcoming Objections The 7 Step and 1 Key Skill Sales Process

30. Business Ethics—The Power of Doing the Right Thing 4-30

31. Chapter Objectives Understand ethics and what composes ethical behavior. Discuss the role of values in ethics. Understand how you define your personal code of ethics. Identify how company policies reflect business ethics. 4-31

32. What is Ethics? Ethics: System that defines right and wrong, and provides a guiding philosophy for every decision you make Two aspects to ethics: o The ability to discern right from wrong, good from evil, and propriety from impropriety o The commitment to do what is right, good, and proper 4-32

33. Personal Ethics—Your Behavior Defines you A highly developed set of personal ethics guides you when you are in a situation that challenges you morally To develop a strong sense of ethics: o Do what you believe in o Take actions consistent with your principles 4-33 CONSISTENTLY

34. Categories of Unethical Behaviour Deceptive Practices o Salespeople giving answers they do not know, exaggerating product benefits, and withholding information may appear only to shade the truth, but when it causes harm to the buyer, the salesperson has jeopardized future dealings with the buyer. Noncustomer Oriented Behaviour o Most buyers will not buy from salespeople who are pushy and practice the hard sell. Too much is at stake to fall for the fast-talking, high-pressure salesperson. © 2013 by Nelson Education Ltd.

35. Categories of Unethical Behaviour Illegal Activities – Misusing company assets has been a long-standing problem for many sales organizations. Using the company car for personal use, Charging expenses that did not occur, Selling samples for income. – Some of these violations discovered by company probing also constitute violations of the Canadian Revenue Agency (CRA) and Internal Revenue Service (IRS) and are offenses that could lead to jail or heavy fines. © 2013 by Nelson Education Ltd.

36. Do the Right Thing Unethical behavior: Acting in a way that is not responsible or deemed to be the standard of what is right, good, and fair Essence of ethics - Choosing to do the right thing when you have a choice of actions Source: Steven R. Hoover 4-36

37. High-Profile Unethical Behavior in Business 4-37

38. High-Profile Unethical Behavior in Business Enron o Began to expand - borrowed money to fund the new businesses o The debt made the company look less profitable o Senior management created “paper companies” in order to keep the debt off the books o This accounting made Enron look extremely profitable - more people bought stock in the company o On October 16, 2001 the company announced a loss of $638 million 4-38

39. Ethical Behavior in Sales The most visible positions in any organization in terms of ethics is sales o Because it is the salesperson that comes in contact directly with the customer o Salesperson’s conduct is a direct reflection of the organization and its ethics; he represents the company “Start with what is right, rather than what is acceptable” Peter Drucker Famous Management Consultant and Author 4-39

40. Selling from the Customer’s Point of View The customer is always right, except when he asks you to do something unethical In such situations, to uphold your ethics and maintain your relationship SellingPower.com suggests the following steps: o Evaluate the situation with a clear head o Don’t jump to conclusions o Identify the criteria you are using to make this judgment o Seek counsel 4-40

41. Character and its Influence on Selling Character: Features and beliefs that define you It is composed of six core ethical values: o Trustworthiness o Respect o Responsibility o Fairness o Caring o Citizenship Source: Josephson Institute 4-41

42. You’re Only as Good as Your Word Not everyone in sales is ethical or honest The video Honesty in the Workplace highlights the problem of lying in the workplace To view the video, click hereclick here Bottom Line – Honesty is HARD Source: NBC Universal, Inc 4-42

43. Where the Rubber Meets the Road: Facing Challenges In a situation that challenges your ethics: o Follow your code of ethics and the company’s code of ethics In a situation where you feel pressured to do something unethical: o Talk to your supervisor about it o Talk to someone in the human resources department (if you don’t feel that you can talk to your supervisor or your supervisor is part of the problem) 4-43

44. Legal Implications of Professional Selling All Canadian provinces and territories have established a ‘cooling off’ period during which the consumer may void a contract to purchase goods or services. © 2013 by Nelson Education Ltd.

45. Legal Implications of Professional Selling It is also important to remember that sales representatives often have to engage in a contract with an individual or firm in order to secure the sale. – A contract is simply a promise or promises that the courts will enforce. Oral contracts are enforceable, but written contracts are preferable, as they reduce the possibility of disagreement. © 2013 by Nelson Education Ltd.

46. What Company Policies Say and What They Mean Conflict of interest: A situation in which a person, such as a public official, an employee, or a professional, has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties Family interests: When a relative of yours is either someone from whom you might purchase goods or services for your employer or when you have influence over the potential hiring of a family member of yours Gifts: Something received without compensation or exchange Private use of employer property: Using an employer’s property— cars, software, staplers, and so on—for nonbusiness purposes 4-46

47. What Company Policies Say and What They Mean Moonlighting: Holding down a second job on the si de Bribe: Money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust; something that serves to induce or influence Noncompete agreement: A contract that prevents you from taking a job with a competitor after you’ve quit or been fired Trade secrets: Something (as a formula) which has economic value to a business because it is not generally known or easily discoverable by observation and for which efforts have been made to maintain secrecy 4-47

48. The Competition Act The major federal legislation in Canada that defines illegal practices, including the following: price fixing - agreements between two or more people to prevent or unduly lessen competition, or to unreasonably enhance the price of a product. bid rigging – an agreement whereby competitors agree in advance as to which will win the bid based on the tenders submitted. price discrimination a seller knowingly and systematically sells the same goods or services at different prices to buyers. © 2013 by Nelson Education Ltd.

49. The Competition Act predatory pricing - when a firm or individual deliberately sets prices to incur losses for a long period of time to eliminate a competitor, or inhibit competition in the expectation that the firm will be able to recoup its losses by charging prices above competitive levels. bait and switch selling - firms and/or individuals are prohibited from advertising products at bargain prices that they do not have available in reasonable quantities. pyramid selling- fees or commissions are not paid on the basis of product sales but on the recruitment of others to make sales. © 2013 by Nelson Education Ltd.