Chap 8 - Planning a Sales Call is a Must - Summary of Major Selling Issues Careful planning of the sales call is essential to success in selling Planning builds self-confidence, develops an atmosphere of goodwill, creates professionalism, and increases sales Sales call planning Have a sales call objective that is SMART Develop or review the customer profile Develop your customer benefit plan

Chap 8 - Planning a Sales Call is a Must – Overview of the Selling Process Uncover The Prospect’s Five Mental Steps in Buying Attention – Interest – Desire – Conviction - Purchase Getting the prospect’s attention and interest by having the prospect recognize a need or problem, and stating a wish to fulfill the need or solve the problem Uncovering and answering the prospect’s questions and revealing and meeting or overcoming objections results in more intense desire Desire is transformed into the conviction that your product can fulfill the prospect’s needs or solve problems

Carefully Select Which Sales Presentation Method to Use 9 Chapter Carefully Select Which Sales Presentation Method to Use McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.

9 9-5 Chapter

9 Main Topics Chapter The Tree of Business Life: Presentation 9-6 Chapter Main Topics The Tree of Business Life: Presentation Sales Presentation Strategy Sales Presentation Methods–Select One Carefully The Group Presentation Negotiating So Everyone Wins Sales Presentations Go High-Tech Select the Presentation Method, Then the Approach Let’s Review before Moving On!

The Tree of Business Life: Presentation Methods Guided by The Golden Rule: Master the art of creating effective sales presentations Have fun presenting your product Select your presentation method based on: Prior knowledge of customer Sales call objective Customer benefit plan You will see that ethical service builds true relationships T T Ethical Service T T T T T T T T Builds T r u e Relationships T C I

The Sales Presentation A Sales Presentation… Completely and clearly explains all aspects of the salesperson’s proposition as it relates to a buyer’s needs

There are Several Sales Presentation Methods and You Must Select One According to Your: Prior knowledge of the customer Sales call objective Customer benefit plan

Exhibit 9-1: The Third Step in the Sales Process is the First Step in the Sales Presentation The sales presentation method determines how you open your presentation

Sales Presentation Strategy Salespeople face numerous situations: Salesperson to buyer A sales person discusses issues with a prospect or customer in person or over the phone Salesperson to buyer group A sales person gets to know as many members of the buyer group as possible Sales team to buyer group A company sales team works closely with the members of the customer’s buying group Conference selling The salesperson brings company resource people to discuss a major problem or opportunity Seminar selling A company team conducts an educational seminar for the customer company about state-of-the-art developments

Exhibit 9-2: The Structure of Sales Presentations The clients needs can be stimulated by the sales presentation or the client is already interested and is wanting more information The sales person does 80-90% of the talking during a memorized sales presentation Sales person does not necessarily have to know the client Sales person does not attempt to determine the prospect’s needs, but gives the same presentation to every customer

Exhibit 9-3: Participation Time by Customer and Salesperson During a Memorized Sales Presentation

Why Choose the Memorized (Canned) Sales Presentation Method? Because it: Ensures the salesperson gives a well-planned presentation Ensures all of the company’s salespeople discuss the same information Both aides and lends confidence to the inexperienced salesperson It is effective when: Selling time is short, as in door-to-door or telephone selling The product type is non-technical – such as books, cooking utensils, or cosmetics

Why Not to Choose the Memorized (Canned) Sales Presentation Method? Because it: Presents FABs that may not be important to the buyer Allows for little prospect participation Is impractical to use when selling technical products that require prospect input and discussion Requires the salesperson to proceed quickly through the sales presentation to the close, resulting in several closes or requests for the order, which may be interpreted by the prospect as high pressure selling

Exhibit 9-2: The Structure of Sales Presentations Assuming that similar prospects in similar situations can be approached with similar presentations. The Salesperson must first know something about the prospective buyer. The sales person controls the conversation during the sales talk, especially near the beginning of the sales presentation Sales person may attempt to solicit comments from the buyer when using trial closes, questions and objections Derived from AIDA – Attention, interest, desire and action (Chapter 8, Exhibit 8.10)

Exhibit 9-5: Participation Time by a Customer and Salesperson During a Formula Sales Presentation

Why Choose the Formula Sales Presentation Method? Because you: Are contacting similar prospects in similar situations Know something about the prospect Have called on the prospect in the past Want to ensure all information is presented logically Want to have reasonable amount of buyer-seller interaction

Why Choose the Formula Sales Presentation Method?, cont… Because it allows for smooth handling of anticipated questions and objections Examples of product types that work well with this method are: Consumer goods Pharmaceutical goods

Why Not to Choose the Formula Sales Presentation Method? Because you: Do not know the prospect’s needs See a need for the prospect to talk more Have a complex selling situation such as: Selling a technical product Selling to a group

Exhibit 9-6: The 10-Step Productive Retail Sales Call – SmithKlineBeechham

Exhibit 9-7: A Formula Approach Sales Presentation

Exhibit 9-2: The Structure of Sales Presentations This is designed as a flexible, interactive sales presentation – challenging and creative. The sales person generally opens with probing questions to gain a better understanding of the client. Three primary Phases: Need-Development – devoted to a discussion of the buyer’s needs Need-Awareness – clarify the client needs by restating the buyer’s needs Need-Fulfillment – sales person knows how the product will satisfy mutual needs and demonstrates these needs to the customer

Exhibit 9-8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations

Why Choose the Need-Satisfaction Sales Presentation Method? Because you: Need a flexible, interactive sales presentation Need to uncover needs by asking questions Need the prospect to talk about his needs Use this method the first time you call on a prospect Should you have to come back a second time, you would use the formula sales presentation method

Why Choose the Need-Satisfaction Sales Presentation Method?, cont… Examples of product types that work well with this method are: Financial services Systems – software and/or hardware systems High priced goods/services such as vehicles, real estate, computer systems, industrial equipment

Why Not to Choose the Need-Satisfaction Sales Presentation Method? Because you: Need more control over the conversation Feel should not ask too many questions Are new to the sales profession

Exhibit 9-9a: A Need-Satisfaction Presentation

Exhibit 9-9b: A Need-Satisfaction Presentation

Exhibit 9-2: The Structure of Sales Presentations Used to develop a detailed analysis of a prospect’s needs. After the analysis the sales person will develop a solution(s) and present written and orally. The sales person is considered more of a partner or partnering, helping creatively resolve a problem

Exhibit 9-8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations

Why Choose the Problem-Solution Sales Presentation Method? Because you: Are selling highly complex or technical products Are required to make several sales calls to develop a detailed in-depth analysis of a prospect’s needs Need a flexible, customized presentation based on findings

The Problem-Solution Presentation’s Usually Consists of Six Steps Step 1 - Convincing the prospect to allow the salesperson to conduct the analysis Step 2 - Making the actual analysis Step 3 - Agreeing on the problems and determining that the buyer wants to solve the problem Step 4 - Preparing the proposal for a solution to the prospect’s needs Step 5 - Preparing the sales presentation based on the analysis and proposal Step 6 - Making the sales presentation

Exhibit 9-2: The Structure of Sales Presentations See EXHIBT 9.10 on page 291 for an excellent quick reference

Sales Presentation Methods– Select One Carefully, cont… The group presentation – the audience may be one, two or many. You must change your presentation style depending on your audience: May be less flexible than a one-on-one meeting The larger the group, the more structured your presentation Communication medium may change and need to include: Video conferencing, power-point, video, meeting space, etc.

Sales Presentation Methods–Select One Carefully, cont… General steps of a group sales presentation: Give the proper introduction Establish credibility (yourself and company-industry awards, etc) Provide an account/client list (testimonials) State your competitive advantages Give quality assurances and qualifications Cater to the group’s behavioral style (Chap 4) Also, know the political hierarchy Who is the decision maker Who’s needs need to be addressed first

Sales Presentation Methods–Select One Carefully, cont… Negotiating so everyone wins – Negotiating is a two-way street: Many salespeople negotiate during the confirming (or end) phase of the sale Phases of negotiation: Planning Plan ahead by knowing your strengths/weaknesses compared to your competition; what can you offer or overcome to beat your competitors bid Meeting Establish a trustworthy client relationship and you can ease tough negotiations – (easier to negotiate with someone you know and trust) Studying Study your client’s business and determine the “must haves” and “would like to have”; understand these can make negotiating decision much easier Proposing Your proposal needs to be based on mutual trust and honesty Your proposal also needs to outline what’s important to the client and how you separate yourself from the competition

What Is the Best Presentation Method? Memorized Formula Need-satisfaction Problem-solution Group Each of these methods is the best one when properly matched with the situation

Sales Presentations Go High Tech Videos CD-ROMs Satellite conferencing Computer hardware and software

Select the Presentation Method, Then the Approach Know which method to use before developing the presentation Plan the presentation Select the approach/opening

The Parallel Dimensions of Selling* Discussion Sequence Selling Process Buyer’s Mental Steps Discuss Product Show Feature Explain Advantage Lead into Benefit Let Customer Talk Prospecting Money Authority Desire Preapproach Approach Attention Interest Present Marketing Plan Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty Presentation Desire Presentation Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Trial Close Conviction Determine Objections Explain Business Prop List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis Meet Objections Trial Close Action (Purchase) Suggest Purchase Product, Quantity, Features, Delivery, Installation, Price Close Follow-up & Service

The Golden Rule Makes Sense Its use sets you apart from all of the other salespeople who only want to make a sale and a fast dollar Treat your prospects and customers as your business neighbors

Let’s Review Before Moving On! It’s important to know that: Parallel dimensions interact Discussion sequence Selling process Buyer’s mental steps

Summary of Major Selling Issues You must master the art of giving a good sales presentation The sales presentation method selected should be based on prior knowledge of the customer, your sales call objective, and your customer benefit plan Show that you have a right to present your product because it has key benefits for the prospect Many different presentation methods are available There is no one best method; each one must be tailored to meet the particular characteristics of a specific selling situation or environment