1. Communication for Relationship Building: It’s Not All Talk Chapter 4 McGraw-Hill/Irwin ABC’s of Selling, 10/e Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Main Topics The Tree of Business Life: Communication Communication: It Takes Two Nonverbal Communication: Watch for It Communication through Appearance and the Handshake Body Language Give You Clues Barriers to Communication Master Persuasive Communication to Maintain Control 4-2

3. The Tree of Business Life: Communication The Golden Rule Guided by The Golden Rule, effectively communicate using:  Words  Body language  Visual aids  Listening  Unselfishness to help a person make the correct buying decision I T C Ethical Service Builds T r u e Relationships T TT TTTT TTTT 4-3

4. 4-4  In a sales context, communication is the act of transmitting verbal and nonverbal information and understanding between the seller and buyer. Communication: It Takes Two

5. 4-5  Internalization process is referred to as a black box.  We cannot see into the buyer’s mind  Stimulus-response model Exhibit 3-1: Stimulus-response model of buyer behavior Stimulus Black box Response Sales Presentation Buyer’s Hidden Mental Process Sale/No Sale Why People Buy – The Black Box Approach

6. The Communication Process Basic Model The Communication Process – Basic Model

7. 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

8. 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

9. 2. Sender encodes idea in message 2. Sender encodes idea in message 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

10. 2. Sender encodes idea in message 2. Sender encodes idea in message 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

11. 3. Message travels over channel 3. Message travels over channel 2. Sender encodes idea in message 2. Sender encodes idea in message 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

12. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea The Communication Process – Basic Model

13. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message The Communication Process – Basic Model

14. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message The Communication Process – Basic Model

15. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message 5. Feedback travels to sender 5. Feedback travels to sender The Communication Process – Basic Model

16. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message 5. Feedback travels to sender 5. Feedback travels to sender The Communication Process – Basic Model

17. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message 5. Feedback travels to sender 5. Feedback travels to sender The Communication Process – Basic Model

18. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message 6. Possible additional feedback to receiver 6. Possible additional feedback to receiver 5. Feedback travels to sender 5. Feedback travels to sender The Communication Process – Basic Model

19. 2. Sender encodes idea in message 2. Sender encodes idea in message 3. Message travels over channel 3. Message travels over channel 1. Sender has idea 1. Sender has idea 4. Receiver decodes message 4. Receiver decodes message 6. Possible additional feedback to receiver 6. Possible additional feedback to receiver 5. Feedback travels to sender 5. Feedback travels to sender The Communication Process – Basic Model

20. 4-20 BARRIER Speaker Listener Psychological barrier or filter Exhibit 4-1: What Did You Say? What Did I Hear?

21. Salesperson-Buyer Communication Process Requires Feedback Major communication elements:  Source  Encoding process  Message  Medium  Decoding process  Receiver  Feedback  Noise 4-21

22. Exhibit 4-2: The Basic Communication Model Has Eight Elements 4-22

23. Concept of space  Territorial space  Intimate space – up to 2 feet  Personal space – 2 to 4 feet  Social space – 4 to 12 feet  Public space – more than 12 feet  Space threats – too close  Space invasion – OK to be close Nonverbal Communication: Watch For It 4-23

24. Exhibit 4-3: Office Arrangements and Territorial Space 4-24

25. Communication Through Appearance and the Handshake Style hair carefully Dress as a professional Shake hands firmly and look people in the eye 4-25

26. 4-26  Nonverbal signals come from:  Body angle  Face  Hands  Arms  Legs Body Language Gives You Clues

27. A Light Signal for Vehicles has a Green, Yellow, and Red Light A person also sends three types of messages using body communication signals 4-27

28. You Have the Green Light Acceptance signals – a green light gives the “go ahead.” It indicates the buyer is willing to listen, and The buyer may like what is being said 4-28

29. Body language Gives You Clues  Body angle – leaning forward or upright at attention  Face – smiling, pleasant, relaxed, good eye contact, positive voice tones  Arms – relaxed and generally open  Legs – crossed and pointed toward you or uncrossed  Acceptance Signals  Hands – relaxed and generally open, doing calculations, holding on to a sample as you try to withdraw it, firm handshake

30. You Have the Yellow Light Caution signals - a yellow light gives a neutral or skeptical sign indicating the buyer maybe uncertain about what you are saying Handle the signal properly, or it may change from yellow to red 4-30

31. Body Language Gives You Clues  Body angle – leaning away from you  Face – puzzled, little or no expression, little eye contact, saying little, asking only a few questions  Arms – crossed and tense  Legs – moving, crossed away from you  Caution Signals  Hands – moving, fidgeting with something, clasped, weak handshake

32. Body Language Gives You Clues  Adjust to the situation by slowing up or departing from your planned presentation  Use open ended questions to encourage buyers to talk and express their attitudes and beliefs  Listen and respond to what buyers say  How to Handle Caution Signals  Project acceptance signals yourself

33. You Have the Red Light Disagreement signals – a red light indicates the person may not be interested in your product 4-33

34. Body Language Gives You Clues  Body angle – retracted shoulders, leaning away from you, entire body is back – wants to move away  Face – tense, showing anger, wrinkled face and brow, very little eye contact, negative voice tones, may become suddenly silent  Arms – tensed, crossed over chest  Legs – crossed and away from you  Disagreement Signals  Hands – tensed and clenched, weak handshake

35. Body Language Gives You Clues  Use open-ended questions  Project acceptance signals yourself  Stop your planned presentation  Let the buyer know that you are there to help, not to sell at any cost  How to Handle Disagreement Signals  Reduce or eliminate pressure-to-buy talk  Use direct questions to determine attitudes and beliefs

36. Recognizing Body Signals Knowing body signal guidelines can improve your communication ability by allowing the salesperson to:  Be able to recognize nonverbal signals  Be able to interpret them correctly  Be prepared to alter a selling strategy  Respond positively both nonverbally and verbally to a buyer’s nonverbal signals 4-36

37. What Would You Do? You arrive at the industrial purchasing agent’s office on time. This is your first meeting. After you have waited five minutes, the agent’s secretary says, “She will see you.” After the initial greeting, she asks you to sit down. For each of the following three situations determine:  What nonverbal signals is she communicating?  How would you respond nonverbally? 4-37

38. She sits down behind her desk. She sits up straight in her chair. She clasps her hands together and with little expression on her face says, “What can I do for you?” What nonverbal signal is she communicating? How would you respond nonverbally? Green (acceptance) nonverbal signal Yellow (caution) nonverbal signal What Would You Do? Situation #1 4-38

39. As you begin the main part of your presentation, the buyer reaches for the telephone and says, “Keep going; I need to tell my secretary something.” What nonverbal signal is she communicating? Yellow (caution) or red (disagreement) nonverbal signal How would you respond nonverbally? Green (acceptance) nonverbal signal What Would You Do? Situation #2 4-39

40. In the middle of your presentation, you notice the buyer slowly lean back in her chair. As you continue to talk, a puzzled looks comes over her face. What nonverbal signal is she communicating? How would you respond nonverbally? Green (acceptance) nonverbal signal Yellow (caution) nonverbal signal What Would You Do? Situation #3 4-40

41. 4-41 Barriers To Communication  Differences in perception – buyer and seller should share a common understanding of information contained in presentation  Buyer does not recognize a need for product  Selling pressure – enthusiasm and some sales pressure is necessary, high pressure techniques erect communication barriers  Information overload – presenting too much technical information may confuse or offend buyer

42. 4-42 Barriers To Communication  Disorganized sales presentation can frustrate buyer  Distractions – telephone calls and people entering the office may sidetrack buyer’s thoughts  Poor listening – at times buyer may not listen to you  How and what you say – controlled and caring talk are positive; conniving and careless talk are negative  Not adapting to buyer’s style – match your style to your customer’s style

43. Exhibit 4-8: Barriers To Communication Which May Kill a Sale 4-43

44. 4-44 PP ersuasion is the ability to change a person’s belief, position, or course of action. FF eedback guides your presentation. PP robing – asking questions RR emember to use trial closes. EE mpathy puts you in your customer’s shoes. KK eep it Simple Salesperson (KISS) CC reating mutual trust develops friendship. Master Persuasive Communication To Maintain Control

45. Master Persuasive Communication To Maintain Control, cont… Listening clues you in  Hearing  Listening  Listen to words, feelings, and thoughts  Three levels of listening  Marginal listening  Evaluative listening  Active listening Technology helps to remember 4-45

46. Your Attitude Makes the Difference 9 Factors of a Great Sales Attitude  Caring  Joy  Harmony  Patience  Kindness  Moral Ethics  Faithfulness  Self-Control Enthusiasm  Show your excitement towards the customer 4-46

47. Proof Statements Make You Believable Credibility through:  Empathy  Listening  Enthusiasm Proof statements substantiate claims 4-47

48. Summary of Major Selling Issues Communication is the transmission of verbal and nonverbal information and understanding between a salesperson and prospect Modes of communication – words, gestures, visual aids Communication process model Barriers may hinder or prevent constructive communication during a sales presentation Barriers must be recognized and overcome or eliminated 4-48

49. Summary of Major Selling Issues, cont… Nonverbal communication is a critical component of the overall communication process  Territorial space, handshake, eye contact, body language Enhancing overall persuasive power through development of several key characteristics  Empathy, more listening and less talking, positive attitude, enthusiastic manner 4-49