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Sales Presentation and Demonstration: The Pivotal Exchange

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1 Sales Presentation and Demonstration: The Pivotal Exchange
Chapter Six Sales Presentation and Demonstration: The Pivotal Exchange PowerPoint presentation prepared by Dr. Rajiv Mehta

2 After reading this chapter, you should understand
Learning Objectives After reading this chapter, you should understand Alternative sales presentation strategies. Guidelines for effective sales presentations and demonstrations to organizational prospects. Preparation of written sales presentations. Sales presentation strategies for different prospect categories. Use of adaptive and canned sales presentations. Sales presentations to prospect groups. How to make a sales presentation memorable. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

3 The First Sales Call and the Sales Presentation
Successful salespeople think of the sales presentation and demonstration as the pivotal exchange between seller and buyer in the sequence of exchanges that make up the selling process The approach emphasized in this text is the consultative problem-solving strategy Consider several tasks before making the sales presentation Copyright © Houghton Mifflin Company. All rights reserved.

4 Planning the Sales Presentation
To prepare for the first sales presentation, salespeople can think of 5 planning stages: Gathering information 1. Identifying the prospect’s problems and needs 2. Preparing and presenting the sales proposal 3. Confirming the sale and/or the relationship 4. Ensuring customer satisfaction 5. Chapter Review Question: What are the basic steps in planning the sales presentation? Copyright © Houghton Mifflin Company. All rights reserved.

5 1. Gathering Information
Too much talk can be detrimental to the sales process. A chronic complaint is that salespeople talk too much, fail to ask the right questions, and do not really listen to the buyer. Top-performing salespeople understand the need to gather all the relevant information they can about prospects and their perceived problems. First, make sure you’re talking to decision-makers (those with authority to buy) or key influencers, so neither party’s time is wasted. Next, ask probing questions to encourage prospects to provide information on perceived problems, objectives, financial issues, needs, and personal feelings. Copyright © Houghton Mifflin Company. All rights reserved.

6 2. Identifying the Prospect’s Problems and Needs
Using a consultative, problem-solving approach, the professional salesperson tries to uncover the prospect’s perceived problems and needs through skillful questioning and careful listening. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

7 3. Preparing and Presenting the Sales Proposal
Before making a sales presentation, take the time and effort to prepare yourself to give a superb performance. Thus, remember the following: A. Professional approach to sales presentations B. FAB C. Value-added selling (VAS) Royalty-Free, Digital Vision/Getty Images Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

8 3. Preparing and Presenting the Sales Proposal
A. Professional approach to sales presentations Salespeople should custom-tailor the sales presentation and demonstration to the prospect’s specific business situation, needs, and individual communication style. The sales presentation strategy can vary depending on different types of prospects as shown in Table 6.2. Copyright © Houghton Mifflin Company. All rights reserved.

9 3. Preparing and Presenting the Sales Proposal
B. FAB leads to SELLS F S —Features are the obvious characteristics of the product. —Advantages are the performance traits of the product that show how it can be used to help the customer better solve a problem than present products can. —Benefits are what the customer wants from the product. —Show the product’s features. —Explain its advantages. —Lead into the benefits for the prospect. —Let the prospect talk. —Start a trial close. E A L L B S Copyright © Houghton Mifflin Company. All rights reserved.

10 3. Preparing and Presenting the Sales Proposal
C. Value-added selling (VAS) A comprehensive strategy, VAS focuses on providing customers with extra, or value-added benefits over those offered by competitors VAS shows customers that the extra overall perceived value is greater than that the competitors are offering VAS presentations go beyond the FAB approach to convincingly present and demonstrate the overall added value (benefits) that the customer will receive from purchasing from their company across four categories: Value-added product benefits Value-added relationship benefits Value-added company benefits Value-added salesperson benefits Chapter Review Question: What is the value-added selling approach to sales presentations? Identify and discuss the four value dimensions. Copyright © Houghton Mifflin Company. All rights reserved.

11 Table 6.3 Value-Added Benefit Comparison Chart
Copyright © Houghton Mifflin Company. All rights reserved.

12 4. Confirming the Sale and/or the Relationship
Professional salespersons: See their prospects and customers as business partners cultivating a relationship based on trust, mutual interests, and cooperation, instead of aggressively on “closing the sale.” Spend considerable time trying to undercover and fully understand the needs and concerns of their partners through attentive listening and by serving as trusted advisers, consultants, and even friends. Do not want to sell products or services with which the customer will not be satisfied. Realize that only by providing continuous customer satisfaction will they obtain the repeat business that leads to long-term customer loyalty and higher commissions for themselves and greater profits for their companies. Copyright © Houghton Mifflin Company. All rights reserved.

13 5. Building Relationships and Achieving Customer Satisfaction
Some underperforming salespeople neglect post-purchase customer service. Immediately after the sale, their interest, contact, and relationship with the customer fall off rapidly. Such shortsightedness or indifference is a “relationship killer,” and these salespeople may later have to work doubly hard to reestablish rapport and rebuild the relationship with that customer. High performing salespeople are committed to providing prospects and customers with totally satisfying service throughout the long-run relationship—before, during, and after the sale. They understand that fully satisfying current customers generates repeat sales, referrals to other prospects, and increased sales as customer needs grow. Copyright © Houghton Mifflin Company. All rights reserved.

14 General Guidelines for Effective Sales Presentations cont’d
Prospects want to understand a product with all their senses, so where appropriate in the demonstration help prospects see, hear, feel, smell, and taste a product. Eight planning steps to prepare for the demonstration are: Demonstrate benefits that are custom-tailored to the prospect's needs Decide what to say about the benefits from the prospect's perspective Select sales aids that involve the most human senses and will make the most positive impact Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

15 General Guidelines for Effective Sales Presentations cont’d
Pre-check all sales aids to make sure everything is working smoothly Decide when and where to make the demonstration (usually a controlled environment is best) Involve the prospect in the demonstration. Remember the motto: "If they try it, they'll buy it” Royalty-Free, Digital Vision/Getty Images 7. Prepare a written demonstration outlining three columns: Benefit to demonstrate What to say What to do 8. Rehearse the demonstration many times until you have the right timing of actions and words Copyright © Houghton Mifflin Company. All rights reserved.

16 General Guidelines for Effective Sales Presentations cont’d
Dressing for Success An important part of any sales presentation is the salesperson's personal appearance Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

17 Table 6.4 Dressing for Sales Presentation Success
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18 Effective Behavior and Listening Principles
Look like a successful /well organized salesperson Develop rapport early Adjust to the customer's communication style Present the strongest customer benefits and selling points first Establish credibility Make the presentation fun Arouse as many of the customer's five senses as possible Combine factual and emotional appeals Copyright © Houghton Mifflin Company. All rights reserved.

19 Effective Behavior and Listening Principles
Look for and use responsive behaviors Help prospects draw the right conclusions Avoid making puns Never tell ethnic or offensive jokes Never disparage another company or individual Use humor with discretion and only when appropriate Readily admit minor product weaknesses Copyright © Houghton Mifflin Company. All rights reserved.

20 General Guidelines for Effective Sales Presentations: Listening Principles
Salespeople must act professionally and listen reactively to their prospects © Royalty-Free/CORBIS The old maxim “The reason you have two ears and one mouth is that you should listen twice as much as you talk” is especially true for a salesperson Copyright © Houghton Mifflin Company. All rights reserved.

21 Table 6.6 Keys to Good Listening
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22 Table 6.6 Keys to Good Listening cont’d
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23 Selling the Long-term Relationship
As many industries seek to improve quality and reduce costs, the trend toward closer supplier relationships, longer-term contracts, and fewer suppliers is increasing Salespeople must go beyond mere “selling” to “serving” their customers much like consultants or business partners What these trends tell selling organizations is that selling the long-term relationship is not just another strategy, it is fast becoming the only viable strategy Copyright © Houghton Mifflin Company. All rights reserved.

24 Chapter Review Questions
Why are the sales presentation and demonstration so important in the Personal Selling Process? Why are clothing and accessories important considerations in making an effective sales presentation? Copyright © Houghton Mifflin Company. All rights reserved.

25 Topics for Thought and Class Discussion
Why do you think the consultative problem-solving sales presentation is the most successful strategy for professional salespeople? What are the benefits of this strategy to the prospect or customer? Name at least five special prospect categories, and describe an appropriate strategy for a sales presentation to each. Which do you think is more effective for most business-to-business selling, an oral or a written sales presentation? Why? Do you think sales presentations and demonstrations are more important for tangible products or for intangible services? Why? Copyright © Houghton Mifflin Company. All rights reserved.

26 Internet Exercises Using an Internet search engine, find three firms that specialize in sales presentation training, and visit their websites to determine whether they use other types of sales presentation strategies in addition to those identified and described in this chapter. Use Google or any other search engine to locate two examples of sales presentation strategies being demonstrated using Flash or streaming video. Copyright © Houghton Mifflin Company. All rights reserved.

27 Projects for Personal Growth
Contact two business-to-business salespeople and ask them about their methods of preparing sales presentations, dress style during the presentation, and demonstration techniques. Research the following two industries and report on the methods and approaches that each uses to sell its products: (a) airplane manufacturers, and (b) manufacturers of household products. Contact three salespeople (one who sells to manufacturers, one who sells to resellers, and one who sells to the national government) and ask them how they prepare for their sales presentations and demonstrations. Are there major differences? What similarities emerged? Copyright © Houghton Mifflin Company. All rights reserved.

28 Projects for Personal Growth cont’d
With a classmate, take turns playing the role of a publishing company sales rep trying to sell a new textbook to a college professor who might be nicknamed “Skeptical Sid.” Then prepare a written sales presentation to sell a textbook to the instructor of your personal selling class. Depending on how creative or cooperative your instructor is, you may want to ask him or her to play one of the prospect stereotypes described in Table 6.2. Assume that you are a sales representative for a manufacturer of automatic fire sprinkler systems for commercial buildings. Outline sales presentations using each of the seven basic strategies. For each strategy, create and then describe the individual prospect or group of prospects to whom you’re presenting. Copyright © Houghton Mifflin Company. All rights reserved.

29 Case 6.1: Self-Analysis of a Sales Presentation
What should Peter say and do now? How do you think Mr. Spearman will react? Why? What do you think about Peter’s sales presentation? What could he have done better? What advice would you give Peter for capitalizing on the interest Mr. Spearman showed in environmental packaging? Should Peter mention the union strike at Megastar? Copyright © Houghton Mifflin Company. All rights reserved.

30 Case 6.2: What Makes Him So Successful?
What do you think Dan will tell Wanda about his selling philosophy and use of different sales presentation strategies? Describe in a few sentences the most important lesson you think Wanda should have learned on her day in the field with Dan. What advice would you offer Wanda to help her sell more successfully in her sales territory? Case 6.2 is found online at Copyright © Houghton Mifflin Company. All rights reserved.


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