1. CHAPTER 10 CHAPTER 10 Conviction and Motivation

2. “A man always has two reasons for doing anything; a good reason and the real reason” John Pierpont Morgan

3. 2 10 The Conviction and Motivation Steps The salesperson must convince her prospects of the validity and desirability of her offer and motivate them toward completing the transaction

4. Only by selling value can the salesperson be convincing

5. 2 10 Customer-Perceived Value What is the source of customer-perceived value? Does value derive from the product, the brand image, or the sales firm? Is the prospect's value objectively defined or perceived?

6. Table 10.1 Components of Prospect/Customer-Perceived Value EconomicNon-economic Intrinsic (Product) Performance Reliability Technology Price Maintenance Durability Brand name Styling Packaging Appearance Extrinsic (Seller)Operator training Maintenance training Warranty Parts availability Post-purchase costs Reputation Reliability Responsiveness Salesperson relationship Service Adapted from Tzokas, N., and M. Saren (2000), “Value Transformation in Relationship Marketing,” http://www.relationshipmarketing.com

7. = Core solution + Additional services Price + Relationship Customer- Perceived Value

8. 2 10 Competitive Advantage An advantage is an aspect of the salesperson's offering that is superior to that of a competitive offering Salespeople must know:  Their competitors' offerings  How their own offerings compare to those of their competitors

9. 2 10 Role of Product Knowledge and Self-Knowledge Self-confidence and enthusiasm are enhanced when salespeople know their products and are sold on the products themselves Salespeople should review their knowledge before every prospect contact

10. 2 10 Knowledge Checklist In order to build prospect conviction, salespeople must understand:  How customers/clients use products  How salespeople can increase value to prospects  How prospects measure success  What might occur to change a prospect's use of a product See Table 10.2 Knowledge Checklist

11. 2 10 Gaining Conviction To successfully perform the conviction step the salesperson should be sure to:  Explain what the product or service is and how it works  Explain the facts and features and their related benefits  Establish the prospect's belief in the salesperson by presenting evidence  Explain any related information that the prospect would like to know

12. 2 10 Misrepresentation Salespeople are often accused of misrepresenting their products or services Salespeople must be positive that what they say is true

13. 2 10 Providing Evidence A salesperson should never tell a prospect anything about a product or service unless that claim can be supported with materials that prove or provide a mode of proof  Documentation beats speculation!

14. 2 10 Securing Agreement Secure the prospect's agreement with a wrap- up question (i.e., a trial close) “How important is this to you?”

15. 2 10 Structuring A Complete Unit Of Conviction Step 1  State fact or feature Step 2  Offer evidence to document fact or feature Step 3  Show related buyer benefits with "which means to you” Step 4  Secure agreement with a wrap-up question

16. 2 10 Handling Objections Effective salespeople are able to:  Anticipate objections  Answer them with confidence  Probe for more concerns  Quickly get back to motivating the prospect/customer to make a decision in favor of purchasing

17. 2 10 Anticipating Objections Salespeople must be able to anticipate:  Prospects’ objections and prepare answers before making sales calls  Questions concerning how the technical aspects of the product/service solution can help prevent the occurrence of problems  Value improvements

18. 2 10 Value Improvements Value improvements can be anything that will help prospects see that their overall situation can be improved through the purchase of a product or service

19. 2 10 Types of Objections Three common types of objections are: 1.Stoppers 2.Stalls 3.Searches

20. 2 10 Stoppers Stoppers are genuine objections to all or part of the salesperson’s proposal

21. 2 10 Stalls Stalls are invalid objections (i.e., excuses)

22. 2 10 Searches Searches are requests for more information either from the salesperson, the competition, or both

23. 2 10 Overcoming Objections The salesperson’s formula for handling objections has five parts: 1.Listen very carefully to the prospect's objection 2.Clarify the concern 3.Cushion the objection 4.Classify the objection to determine when and how to answer it 5.Answer the objection with concern, conviction, and enthusiasm The salesperson’s formula for handling objections has five parts: 1.Listen very carefully to the prospect's objection 2.Clarify the concern 3.Cushion the objection 4.Classify the objection to determine when and how to answer it 5.Answer the objection with concern, conviction, and enthusiasm

24. 2 10 Five Classic Objection-Handling Techniques Forestall the Objection Compensate Counter Boomerang Feel, Felt, Found

25. 2 10 Negotiation Generally, if salespeople have to negotiate, they have not convinced the prospect/ customer that the offer has enough value However, when salespeople do have to negotiate terms, win-win negotiating is the rule

26. 2 10 Creating a Win-Win Outcome To create a win-win outcome, both buyers and sellers have to be willing to make concessions How many sales are lost because salespeople do not concede on minor issues?

27. The Stalemate

28. 2 10 Critical Components In Negotiating Fairness Commitment Communication

29. 2 10 When to Walk Away It is helpful for businesspeople to establish in advance at what point they will walk away Disagreement during a particular negotiation does not necessarily mean that the partnership dissolves Often such business relationships are reconciled and become very successful partnerships

30. 2 10 Obvious Reasons to Walk Away The final best offer is not acceptable A better alternative is found Something seriously disturbing is uncovered about the other party

31. 2 10 Motivational Selling The salesperson using motivational selling asks the prospect a preselected set of questions to determine the prospect’s dominant buying urge This knowledge is then used to show the prospect how buying the product/service will help to satisfy that urge

32. 2 10 Building Wants Salespeople have to make prospects want what they are selling as well as they know how to tell prospects what they are selling Salespeople must detect the real reasons that prospects want what they are offering

33. A prospect does not just want to save money; the prospect wants to save money for a reason

34. 2 10 The RAP Method Use the RAP method to formulate the motivation step Reviewing the problem Answering the prospect's questions Projecting the prospect as a satisfied customer by painting a mental image of the prospect using the product RAPRAP

35. 2 10 Reviewing the Problem Salespeople should review what each prospect wants most

36. 2 10 Answering the Prospect’s Questions Salespeople should confirm their understanding of what the prospect says she wants most

37. 2 10 Projecting the Prospect as a Satisfied Customer Salespeople should ask prospects to visualize success as a result of purchasing the product or service Get prospects to think about accomplishing both their personal and professional goals

38. 2 10 Imaginative Visualization and Creative Imagery Through imaginative visualization and creative imagery, salespeople can help their prospects anticipate how they will use and enjoy products  Salespeople can make prospects: Feel Want Act

39. 2 10 Using the RAP Method Effectively Using the RAP method effectively involves:  Creative Imagination  Empathy  Enthusiasm

40. 2 10 Creative Imagination Creative imagination refers to the ability to create mental images, or pictures of things not yet in existence Salespeople must first be able to picture their own mental and physical reactions in their own mind

41. 2 10 Empathy Empathy is the ability to mentally put oneself in the other person's place—to look at that person’s situation through his eyes Empathy is the most important characteristic of a salesperson

42. 2 10 Enthusiasm If salespeople are sincerely interested in prospects and excited about the value and benefits of their products, their enthusiasm will show  The key is sincerity

43. Remember Emotions arouse, sustain, and direct human behavior

44. “That’s what you really want, isn’t it?” Salespeople who get a positive reaction at this point should immediately ask for the order

45. 2 10 Trial Close Again After answering all the prospect's questions and concerns, it is time to trial close again The salesperson can ask the prospect any of the following questions:  “What do you think?"  "How does all of this sound?"  "How do you feel about what I’ve said so far?"