Carefully Select Which Sales Presentation Method to Use Chapter 8 Carefully Select Which Sales Presentation Method to Use McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 8

Main Topics Chapter 8 Sales Presentations Sales Presentation Methods - Select One Carefully Sales Presentations Go High Tech Select the Presentation Method, Then the Approach Let’s Review Before Moving On! McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

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... Completely and clearly explains all aspects of the salesperson’s proposition as it relates to a buyer’s needs

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

Exhibit 8-1: 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 Salesperson to buyer group Sales team to buyer group Conference selling Seminar selling

Exhibit 8-2: The Structure of Sales Presentations

Exhibit 8-3: Participation Time by Customer and Salesperson During a Memorized Sales Presentation

Why Choose the Memorized (Canned) Sales Presentation Method? Ensures the salesperson gives a well-planned presentation Ensures all of the company’s salespeople discuss the same information It 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 is nontechnical - such as books, cooking utensils, and cosmetics

Why Not to Choose the Memorized (Canned) Sales Presentation Method? 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 Proceeds quickly through the sales presentation to the close, requiring the salesperson to close or ask for the order several times, which may be interpreted by the prospect as high pressure selling

Exhibit 8-4a: Dyno Electric Cart Memorized Presentation

Exhibit 8-4b: Dyno Electric Cart Memorized Presentation

Exhibit 8-5: Participation Time by a Customer and Salesperson During a Formula Sales Presentation

Why Choose the Formula Sales Presentation Method? If you are contacting similar prospects in similar situations You 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 Allows for smooth handling of anticipated questions and objections Examples of salespeople using this method are: Consumer goods Pharmaceutical

Why Not to Choose the Formula Sales Presentation Method? 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 8-6: The 10-Step Productive Retail Sales Call

Exhibit 8-6: The 10-Step Productive Retail Sales Call cont... Step Number 1. Plan the call 2. Review plans 3. Greet personnel 4. Check store conditions 5. Approach 6. Presentation 7. Close 8. Merchandising 9. Records and reports 10. Analyze the call.

Exhibit 8-7: A Formula Approach Sales Presentation

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

Why Choose the Need-Satisfaction Sales Presentation Method? Need a flexible, interactive sales presentation Need to uncover needs by asking questions Need for the prospect to talk about their needs This is the first time to call on a prospect Typically need to make multiple sales calls Examples of salespeople using this method are: Financial services Systems High priced goods/services as vehicles, real estate, computer systems, industrial equipment

Why Not to Choose the Need-Satisfaction Sales Presentation Method? Need more control over the conversation Feel should not ask too many questions During your first week/month in sales

The Need-Satisfaction Presentation’s Phases Need-development phase Need-awareness phase Need-fulfillment phase

Exhibit 8-9a: A Need-Satisfaction Presentation

Exhibit 8-9b: A Need-Satisfaction Presentation

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

Why Choose the Problem-Solution Sales Presentation Method? Selling highly complex or technical products Required to make several sales calls to develop a detailed in-depth analysis of a prospect’s needs Need a flexible, customized presentation based upon findings

The Problem-Solution Presentation’s 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 determing 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

Sales Presentation Methods— Select One Carefully cont… The group presentation May be less flexible than a one-on-one meeting The larger the group, the more structured your presentation

Sales Presentation Methods— Select One Carefully cont… Give the proper introduction Establish credibility Provide an account list State your competitive advantages Give quality assurances and qualifications Cater to the group’s behavioral style

Sales Presentation Methods— Select One Carefully cont… Negotiating so everyone wins Many salespeople negotiate during the confirming phase of the sale Phases of negotiation Planning Meeting Studying Proposing

What Is the Best Presentation Method? Stimulus-response Formula Need-satisfaction Problem-solution Group

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 presentation Select approach/opening

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