CH 9-14 Summary Part 2

Part 2
Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved
Selling Today
Fourteenth Edition
Chapter 9
Developing and Qualifying
Prospects and Accounts
What is a salesperson’s main
purpose?
“The main purpose of a salesperson is not to make
sales, but to create customers.”
Gerhard Gschwendtner, of Selling Power
• Do you agree or disagree?
Prospecting
• Identifying and developing potential customers
– Prospecting in B2C
– Account or business development in B2B
• Who is a prospect?
– An individual or business who meets the qualification
criteria established by you or your company.
Reasons for Customer Attrition
There are a number of reasons for customer attrition, which
is the inevitable loss of customers over a period of time.
• One-time need or an extended time between purchases
• Movement outside of territory
• Customer business failure or merger
• Loyal buyer or purchasing agent changed positions
• Sales are lost to the competition
Prospecting and Account
Development Requires Planning
Three things to improve the quality of the prospecting effort:
1. Increase the number of people or accounts who board
the Ferris wheel.
2. Improve the quality of the prospects who board the
Ferris wheel.
3. Shorten the sales cycle by quickly determining which of
the new prospects are qualified prospects—qualified as
to need, authority to buy, ability to pay, and authority to
purchase the product.
Sources of Prospects and Accounts
• Referrals • Website
• Friends and family • Databases
• Directories • Cold calling
• Trade publications • Networking
• Trade shows • Educational seminars
• Direct-response • Non-sales prospecting
marketing
Referrals
• A referral is a prospect that
has been recommended by
a current customer or by
someone who is familiar
with the product.
• When you build value into

your sales process, you
increase the odds that the
customer will give you a
referral.
Prospecting with Social Media
• Social media provide an excellent opportunity for finding
prospects and reaching out to them.
• Examples of social media tools:
– LinkedIn
– Twitter
– FollowerWonk
– TweetDeck
– HootSuite
– SproutSocial
Qualifying Prospects and Accounts
• Qualifying is the process of identifying prospects who
appear to have a need for your product and should be
contacted.
• Every salesperson needs to establish qualifying criteria
and this process involves finding answers to several basic
questions.
• Does the prospect or account…
– have a need for my product?
– have the authority to buy my product?
– have the financial resources to buy my product?
– have the willingness to buy my product?
Sales Intelligence
• Sales intelligence is necessary when the sale is complex
and requires a long closing cycle.
• Sales intelligence goes beyond sales data to include
insights about a prospects’…
– Marketplace
– Firm
– Competitors
– The prospects themselves
Figure 9.7
CR M Sales Funnel
Selling Today
Fourteenth Edition
Chapter 10
Approaching the Customer with
Adaptive Selling
What is a Presentation Strategy?
The presentation strategy is a well-conceived plan that
includes three prescriptions:
1. Establishing objectives for the sales presentation.
2. Developing the presale presentation plan.
3. Renewing one’s commitment to providing outstanding
customer service.
Develop a Presentation Strategy
Figure 10.1 The Strategic/Consultative Selling Model provides the foundation for a value-
added consultative presentation strategy.
Establishing Presentation Objectives
During the first sales call on a new prospect:
• Establish rapport
• Obtain permission to ask need identification questions
• Obtain information to establish the customer’s file
During stage 2 of the buying process:
• Involve customer in product demonstration
• Provide value justification
• Compare and contrast different solutions (if applicable)
Team Presentation Strategies
• Team selling has emerged as a major development.
• Sales team presentations require:
– A more detailed precall plan
– Clear understanding of role
– Clear presentation objectives
The Six-Step Presentation Plan:
Focus on Step 1—Approach
1. Approach
2. Need discovery
3. Presentation
4. Negotiation
5. Close
6. Servicing the sale
Objectives for the Approach
The approach has
three key objectives:
• Build rapport
• Capture person’s full
attention
• Transition to the next
stage of the sales
process
Making Sales Appointments by
Phone
• Use the following practices:
• Plan in advance what you will say.
• Politely identify yourself and the company you represent.
• State the purpose of your call and explain how the
prospect can benefit from a meeting.
• Show respect for prospect’s time by telling the person how
much time the appointment may take.
• Confirm the appointment with a brief note, e-mail
message, or letter with the date, time, and place of your
appointment.
Guidelines for Good Social Contact (1 of 2)
1. Prepare for the social contact

• Research topics of interest to prospect
• Review prospect database
• Read relevant industry reports
2. Initiate social contact

• Ask open-ended questions
• Apply nonverbal communication skills such as good
eye contact and a smile
Guidelines for Good Social Contact (2 of 2)
3. Respond to the customer’s conversations

• Acknowledge the message verbally and nonverbally.
• Listen actively and use gestures to indicate ongoing
interest.
4. Keep the social contact focused on the customer
• Keep the conversations topics relevant to the
customer.
Approaches to Gain Prospect
Attention
Seven common
approaches:
• Agenda approach
• Product demonstration
approach
• Referral approach
• Customer benefit approach
• Question approach
• Survey approach
• Premium approach
Sales Call Reluctance
Sales call reluctance includes the thoughts, feelings, and
behavioral patterns that conspire to limit what a salesperson
is able to accomplish.
Causes:
• Fear of taking risks
• Fear of group presentations
• Lack of self-confidence
• Fear of rejection
Dealing with Sales Call Reluctance
Suggestions to manage sales call reluctance:
• Be optimistic about the outcome.
• Practice your approach before making the initial contact.
• Recognize that it is normal to feel anxious.
• Develop a deeper commitment to your goals.
Selling Today
Fourteenth Edition
Chapter 11
Determining Customer Needs
with a Consultative Questioning
Strategy
Focus on Step 2—Need Discovery
1. Approach
2. Need discovery
3. Presentation
4. Negotiation
5. Close
Consultative Sales Process and
Value
• Increased customer
satisfaction
• More sales closed
• Fewer order cancellations
• Fewer returns
• Increased repeat business
• Increased referrals
Figure 11.2
The Consultative Sales Process Guides
How Much Time on Need Discovery?
Need discovery time
varies based on:
• Sophistication of
product
• Selling price
• Customer’s knowledge
• Product applications
• Time available
SPI N Selling
• Situation questions Questions help clarify the
• Problem questions exact dimensions of the
problem, help the customer
• Implication questions
evaluate a range of solutions,
• Need-payoff questions and assist the customer in
evaluating the potential
outcome of the solution that is
implemented.
Survey Questions
General survey questions: Specific survey questions:
• “Tell me about the new • “How do you feel about
challenges you are facing installing another server to
in the area of data your system?”
storage.”
Active Listening
To fully understand the customer, one must listen
closely and acknowledge every response.
Active listening is the process of sending back to the

prospect what you as a listener think the person meant, both
in terms of content and feelings.
Practices to Learn Active Listening
Active-listening skills can be learned by any
salesperson willing to make the commitment.
Use the following three practices:

• Focus your full attention
• Paraphrase the customer’s meaning
• Take note
Selling Today
Fourteenth Edition
Chapter 12
Creating Value with the
Consultative Presentation
The Six-Step Presentation Plan
Focus on Step 3—Presentation
1. Approach
2. Need discovery
3. Presentation
4. Negotiation
5. Close
Valuable Presentations
Canned Presentations: Consultative
Memorized or scripted Presentations:
presentation built around Customized, personalized
a standard set of steps presentation built around
and presented as a specific needs of each
repetitive speech given customer.
to all customers
interested in a particular
item.
Effective Presentations (1 of 2)
Actions to make sales presentations effective:
• Adapt the presentation to meet unique needs of the
customer.
• Cover one idea at a time using appropriate level of detail.
• Use proof devices to demonstrate buyer benefits.
• Appeal to as many senses as possible.
• Balance telling, showing, and interest.
• Develop creative presentations.
Effective Presentations (2 of 2)
Further actions to make sales presentations effective:
• Consider the use of humor (in moderation)
• Choose the right setting/location for the presentation
• Document the value proposition
• Quantify the solution
• Check sales tools
• Summarize major points
Quantify the Solution
The process of determining
whether or not a sales
proposal adds value.
• May use a simple cost-
benefit analysis.
• May use estimates of return
on investment, calculated
as net profits as a
percentage of the original
investment.
ROI = Net Profits or Savings  / Investment * 100
Enhancing Success of the
Persuasive Presentation Strategy (1 of
2)
Guidelines for preparation of a persuasive presentation:
• Place special emphasis on the relationship
• Target emotional links
• Use a persuasive vocabulary
• Sell benefits
Enhancing Success of the
Persuasive Presentation Strategy (2 of
2)
Guidelines for preparation of a persuasive presentation:
• Use showmanship
• Minimize negative impact of change
• Place strongest appeal at start or end
• Use power of association with stories
Use Persuasive Vocabulary
Some of the most important words in selling:
You
Advantage
New
Benefits
Guidelines for a Group Presentation
• Identify the titles and roles
of those who will attend.

• Check out meeting room
in advance.
• Be sure presentation is
characterized by clarity
and simplicity.
• Anticipate the diversity
of questions.
Selling Tools for Effective
Demonstrations
• Product and plant tours
• Models
• Photos, illustrations, and
brochures
• Portfolios
• Reprints
• Catalogs
• Paper or computer (e.g.,
tablet, laptop)
presentations
Selling Today
Fourteenth Edition
Chapter 13
Negotiating Buyer Concerns
The Six-Step Presentation Plan Focus
on Step 4—Negotiation
• Approach
• Need discovery
• Presentation
• Negotiation
• Close
• Servicing the sale
Understanding Negotiation
• Negotiation is
working to reach an
agreement that is
mutually satisfactory
to both buyer and
seller.
Planning for Formal Negotiations
• Gather information before.
• Decide team versus individual negotiations.
• Understand the value of what you are offering.
• Determine your goals and financial objectives.
• Prepare an agenda.
• Review adaptive selling styles.
• Prepare a negotiations worksheet.
BATN A and ZOP A
BATN A—Best Alternative to Negotiated Agreement
• What alternatives will be acceptable to you if your
negotiation does not succeed?
• What alternatives will be acceptable to your customer if
his or her negotiation does not succeed?
Z O P A—Zone of Possible Agreement
• What is the space between the seller’s walk-away point
and the buyer’s highest willingness to pay?
Handling Objections
Table 13.1 Handling Objections
OBJECTION SOURCE OF HESITATION REQUEST FOR . . .

“Price too high” Perceived cost versus benefit Value articulation
“Think about it” Afraid to make a bad decision Create comfort, provide proof
“Talk to boss” Unable to justify decision Risk reduction, benefit review
“Need more quotes” Unsure you’re their best option Targeted solutions, value
“Set with current Doesn’t see benefit of change Differentiation
provider”
“Bad history” Past experience is affecting current Offer proof of change
view
Source: Adapted from “Hide-and-Seek,” a table from Nancy J. Martini (formerly Stephens), President & C E O, P I
Worldwide, Wellesley Hills, M A, “Objections Are a ‘Yes’ About to Happen,” Selling, November 1998, p. 3. Printed with
permission of Nancy J. Martini.
Conducting the Negotiation Session
Some golden rules for success in formal negotiations:
• Understand the problem.
• Create alternative solutions that can add value.
• Periodically review acknowledged points of agreement.
• Do not make concessions too quickly.
• Remember most negotiations will conclude in the final 20
percent of time allowed.
• Know when to walk away.
Negotiating across Cultures
• It is important to understand and accommodate the
customer’s culture when negotiating in the international
area.
• Selling in certain cultures often requires more time in
bonding and building a rapport.
• Several meetings may be needed to lay the groundwork
for the actual sale.
Selling Today
Fourteenth Edition
Chapter 14
Adapting the Close and
Confirming the Partnership
Focus on Step 5—Close
• Approach
• Need discovery
• Presentation
• Negotiation
• Close
• Servicing the sale
Review the Value Proposition from
the Customer’s Perspective
Closing the sale is usually easier if you look at the value
proposition from the prospect’s point of view:
• Have you effectively summarized the mix of key benefits?
• Will your proposal provide a solution that solves the
customer’s problem?
• Is your proposal strong enough to win over a customer
who is experiencing buying anxieties?
Buyer’s Remorse
Buying often causes emotional stress, which is sometimes
referred to as “buyer’s remorse.”
Typical buying anxieties explaining why some customers are

reluctant to commit to your proposal include:
1. Loss of options
2. Fear of making a mistake
3. Social or peer pressure
Guidelines for Closing the Sale
• Focus on dominant buying motives.
• Achieve incremental commitments throughout the sales
process, especially situations involving long selling cycles.
• Negotiate the tough points before attempting the close.
• Avoid surprises at the close.
• Display a high-degree of self-confidence at the close.
• Ask for the order more than once.
Recognize Closing Clues
• A closing clue is an indication, either verbal or nonverbal,
that the prospect is preparing to make a buying decision.
• Closing clues are called “buying signals”
Verbal clues: Nonverbal clues:
• Questions • Body movement
• Recognitions • Facial expression
• Requirements • Tone of voice
Methods for Closing the Sale
Trial close Multiple options close
Direct appeal close Balance sheet close
Assumptive close Management close
Summary-of-benefits close Impending event close
Special concession close Combination close
Adapting to the Customer’s
Communication Style
• A prospect’s
communication style
must be taken into
consideration when
deciding how to adapt
the close.
• The four styles include:
– Supportive
– Emotive
– Reflective
– Directive
When the Buyer Says YES
• Congratulations! You have
closed the sale.
• Now reassure the customer,
which is the confirmation
step in closing the sale and
prevents buyer’s remorse.
• Thank the customer for the
order.
When the Buyer Says NO
After a lost sale:
1. Make sure the deal is really dead
2. Review the chain of events
3. Interview the client
Thank You : )

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Part 2

Gerhard Gschwendtner, of Selling Power

• Do you agree or disagree?

• When you build value into

1. Prepare for the social contact

2. Initiate social contact

3. Respond to the customer’s conversations

Active listening is the process of sending back to the

Use the following three practices:

of those who will attend.

OBJECTION SOURCE OF HESITATION REQUEST FOR . . .

Typical buying anxieties explaining why some customers are

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