Personal Selling: Chapter 10


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Personal Selling: Chapter 10

  1. 1. Strengthening The Presentation Chapter 10
  2. 2. Important Questions Answered► How can salespeople use verbal tools to strengthen the presentations?► Why do salespeople need to augment their oral communication through tools such as visual aids, samples, testimonials and demonstrations?► What materials are available to strengthen the presentation? Contd. 2
  3. 3. Important Questions Answered► How can salespeople utilise visual aids and technology most effectively?► What are the ingredients of a good demonstration?► Is there a way to quantify the salesperson’s solution to the buyer’s problem?► How can salespeople reduce presentation jitters? 3
  4. 4. Purpose of the presentation► Knowledge► Beliefs► Desire/Need► Attitude► Conviction 4
  5. 5. Three Essential Steps Within the Presentation 5
  6. 6. The Purpose of the Presentation Main Goal •To sell your product to your customer. Provide •Features •Product knowledge via •Advantages •Marketing plan •Benefits of your •Business proposal. Allow buyer to develop positive personal attitudes toward your product. Other Goals •Attitudes result in desire (or need). •Convert need into want and into the belief that your product can fulfill a certain need. your product is best Convince the buyer that •you are the best source from which to buy. Fully Discuss Your Product •FeaturesThree Essential Steps Within The •Advantages Presentation •Benefits 2.Present Your Marketing Plan. 3.Explain Your Business Proposition (value/cost comparison). Dont worry about making the perfect presentation. •Its more important that you truly believe in your product. Sellers typically presents 6-8 features or benefits in a presentation •Prospect remembers only one Facts About Presentations •39% of the prospects remember that one thing incorrectly 6 •49% percent remember something that was not even mentioned
  7. 7. THE SALES PRESENTATION TOOLBOX Persuasive Communication Construct logical reasoningSeven factors that help you to be a based on:better communicator: •Major premise.I.Using questions. •Minor premise.II.Being empathetic. •Conclusion.III.Keeping the message simple. Make the presentation fun.IV.Creating mutual trust. •Personalize your relationship.V.Listening. •Build trust.VI.Having a positive attitude and •Use body language.enthusiasm. •Control the presentation.VII.Being believable. •Use the Paul Harvey dialogue. 7
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  11. 11. The Sales Presentation Goal Model 11
  12. 12. The Sales Presentation Mix 12
  13. 13. The Ideal Presentation► Your approach technique quickly captures your prospect’s interest and immediately finds signals that the prospect has a need for your product and is ready to listen► The ideal prospect  Is friendly, polite, relaxed, listens  Says “yes” and enthusiastically thanks you► Several weeks later you receive a copy of customer’s letter sent to your company’s president glowing with praise for you► Sometimes it happens but many times there are difficulties 13
  14. 14. Characteristics Of A Strong PresentationCharacteristics of a presentation are: Keeps the buyer’s attention Improves the buyer’s understanding Help the buyer remember what was said Offers proof of salesperson’s assertions Creates a sense of value Contd. 14
  15. 15. Keeps the buyer’s attentionA good salesperson knows that only talking is notenough. To keep the attention and interest of theprospects it is important to make use of humour andaudio-visual devices. Unless the buyer activelyinvolved in the communication process theirattention will probably divert. The buyerspersonality can also affect his or her attention span.For example, one would expect an amiable to listenmore attentively to a long presentation than, say, adriver would. 15
  16. 16. Improves the buyer’s understanding It is difficult to imagine a product or service by reading out a paper or listening about it. On the other hand, multiple-sense appeals .improves the understanding dramaticallyTo help the prospect better understand, five basic channels may be used: the senses of hearing, sight, touch, taste, and smell. 16
  17. 17. Help the buyer remember what was saidA presentation is said to be successful if what is said is remembered afterwards. Studies show that we learn  1% from taste  2% from touch  4% from smell  11% from hearing (only 20% of this we retain)  82% from seeing we retain only 50% of what we hear and see 17
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  19. 19. Offers proof of salesperson’s assertionsPresentation gives the salesperson an opportunity to prove what he/she claims to be true. Simple talk could be taken as mere claims without any proof. Most people just wont believe everything a salesperson tells them. Creating trust is very important. Communication tools provide solid proof to back up the salespersons claims. 19
  20. 20. Proof Statements Build Believability► Past sales help predict the future► The guarantee► Testimonials► Company proof results► Independent research results  Restatement of the benefit before proving it  Proof source and relevant facts or figures about the product  Expansion of the benefit 20
  21. 21. Proof Statements Help Prove What You Say 21
  22. 22. Creates a sense of valueThe way a particular product is handled suggestsits value without even using the words. Carefulhandling gives the impression of value even if nowords are spoken. Careless handling implies thatthe product has little value. 22
  23. 23. How To Strengthen The Presentation A seller should not just grab a method because it sounds trendy or because it worked in a previous sales call. Rather, a seller should strategically select methods and media that will helpfully address the needs of the buyer. This process includes responding to the buyers unique style. The Basic tools to Strengthen the presentation are► Verbal Tools► Visual tools 23
  24. 24. Verbal Tools► Word pictures and stories► Humour 24
  25. 25. Word pictures and storiesThe power of the spoken word can be phenomenal. Stories o all types can be effective.► If at all possible, use stories from your own life► Make sure you have a reason for telling the story.► Use the "hook" of the story to tie back directly into your presentation.► Be accurate and vivid with the words you choose.► Pace the story.► Choose stories that fit your own style.Stories can be quite short-even a few sentences. 25
  26. 26. Humour The wonderful effects of Humor will put everyone more at ease, including the salesperson.► Dont oversell► Dont apologize before telling a joke► Identify any facts that are absolutely necessary for the punch line of the story to make sense► Enjoy yourself while youre relating the humor by smiling and animating your voice and non-verbal.► Practice telling the joke different ways to see which exact wording works best.► Make sure your punch line is clear. 26
  27. 27. Visual tools► Charts► Models, samples and gifts► Catalogues and brochures► Pictures ads, maps and illustrations► Testimonials and Test Results 27
  28. 28. Charts► Know the single point the visual should make► Use current and accurate information.► Dont place too much information on a visual on a textual visual.► Dont use complete sentences.► Use bullets► Dont overload the buyer with numbers.► Recognize the emotional impact of colors and choose appropriate ones.► If possible, use graphics► Use consistent art styles, layouts, and scales► Check your visuals closely for misspelled words, and other errors. 28
  29. 29. Models, samples and giftsVisual selling aids such as models, samples, and gifts may be a good answer to the problem of getting and keeping buyer interest. Miniature models go to the interview as substitutes for products too large or bulky to transport easily. Depending on the service or product, samples can make excellent sales aids. Samples and gifts frequently help to maintain the prospects interest after the call and serve as a reminder for prospects or customers who either buy or do not buy during the presentation 29
  30. 30. Catalogues and brochuresCatalogs and brochures can help salespeople communicate information to the buyer effectively. The salesperson can use them during presentations and then leave them with the buyer as a reminder of the issues covered. Brochures often summarize key points and contain answers to the usual questions buyers pose. Creatively designed brochures usually unfold in a way that enables the salesperson to create and maintain great interest while showing them. 30
  31. 31. Pictures ads, maps and illustrationsPictures are easy to prepare, are relatively inexpensive, and permit a realistic por­trayal of the product and its benefits. Photographs of people may be particularly effective. For example, leisure made possible through savings can be communicated via photographs of retired people at a ranch, a mountain resort, or the seashore. Illustrations drawn, painted, or prepared in other ways also help to dramatize needs or benefits. Copies of recent or upcoming ads may contribute visual appeal. With new technology, even detailed maps can be easily developed. 31
  32. 32. Testimonials and Test ResultsTestimonials are statements, usually letters, written by satisfied users of a prod­uct or service. These letters commend the product or service and attest that the writer believes it to be a good buy. The effectiveness of a testimonial hinges on the skill with which it is used and a careful matching of satisfied user and prospect. Salespeople can also use test results to strengthen the presentation. Tests on the product or service may have been conducted by the sellers firm or some third-party organization 32
  33. 33. The Visual Presentation–Show and Tell► Increase retention► Reinforce the message► Reduce misunderstanding► Create a unique and lasting impression► Show the buyer that you are a professional 33
  34. 34. Use of Sales Aids The Organizer A series of visuals that go step by step through the sales process. (eg A flip chart) Built around benefits •Fosters 2 way communication Company prepared organizers •Leads to the close •Gets the whole story out in less time •Keeps the presentation on track •Personal letters of reference Supplements that you should add •Business cards of clients •Pictures of clients using the product •Pictures of finished installations Other Audiovisual Aids Computers The most popular •Videos Audiovisual Aids •Slides •Presentation software use is growing Rehearse them! •Customize them to fit each individual customer. •Make them simple, clear, and straight forward. •Control the demonstration.Guidelines for Using Visual Aids, Dramatics, •Make the demonstration true to life. Demonstrations. •Encourage prospect participation. •Incorporate trial closes (nail downs) after showing or demonstrating a major feature, advantage, or benefit in order to determine if it is 34 believed or important to the prospect.
  35. 35. Make Your Statements Visual Simile a comparison statement using the words "like" or "as" implied comparison that uses a contrasting word or phrase to evoke a vivid Metaphor image. Analogy compares two different situations which have something in common. Past sales help predict the future. •The guarantee. •Testimonials. •Company proof results. •Facts and Statistics Proof •Demonstrations - show the product in use Statements •Testimonials 1.Have your referral call the prospect 2.Bring letters •Samples - appeal to the senses if possible •Case Histories Independent Restate the benefit before proving it. research •State the source and relevant facts or figures about the product. results •Expand of the benefit. Ask Questions. •Product use. •Visuals.Induce Participation •Demonstrations. •Listen •Encourage the prospect to ask questions Increase retention. •Reinforce message. The Visual •Reduce misunderstanding. Presentation •Create a unique and lasting impression. Show and Tell •Show your buyer you35 a professional. are •VISUAL AIDS HELP TELL THE STORY
  36. 36. Media Used to Display Visual Tools► Sales Portfolios► 35 MM Slides► VCRs► Computer H/W and S/W► Visual Projectors 36
  37. 37. Sales PortfoliosPortfolio, which is simply a paper-based collection of visual aids, often placed in some sort of binder or container, that can be used to enhance communication during a sales call. the portfolio should contain a broad spectrum of visual aids the salesperson can find quickly should the need arise. Portfolios can also be carried in a binder. The contents may be labeled by tabs and punched to fit rings in a binder. Binders make the material easy to find and are convenient to carry and use. 37
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  39. 39. 35 MM SlidesSlides have been effective selling aids for years. Anadvantage of slides has always been the relatively lowcost of producing them. Also, salespeople can easilytailor the show to any buyer simply by remov­ingand/or reordering the slides. The most effective slideshows utilize multiple projectors and multiplescreens along with a stereo sound track 39
  40. 40. VCRsVCRs improve on slides in that the former portray action. Salespeople use VCRs to help the buyer see how quality is manufactured into the product, how others use the product or service and promotional support offered with the product. VCRs are used not only by salespeople in one-on-one and group presentations but also at trade shows and for training the buyers employees after the sale. 40
  41. 41. Computer H/W and S/WMore and more salespeople have adopted laptop computers, notebook computers, and palm PCs for use in sales calls. The beauty of these devices is their capability to store large amounts of easily retrievable information, including text, audio, video, and still images. Inputting all of this data is made much easier with the increasing sophistication of scanners, digital cameras, and software A phrase has been coined, digital sales assistant (DSA), to indicate any software tool that is designed to help salespeople get their message across.Computers not only offer excellent visuals and graphics but also allow the salesperson to perform what-if analyses 41
  42. 42. Tips for the use of Computer H/W and S/W Dont develop so many slides that you are going to drown your prospect. Dont get carried away by using every tool in the DSA. Dont cram too much information on a slide. Keep the text big. And use colors strategically. If youre going to showcase Web pages as a part of your presentation, it may be wise to download the pages into your presentation software instead of using a live Internet connection 42
  43. 43. Visual ProjectorsTraditional overhead projectors can be an effective visual medium. The image projected on a wall can be up to 25 times larger than that on a written page, drawing more attention and creating greater impact. Such projectors are noiseless and simple to operate. Overhead transparencies can be made quickly and inexpensively on a copier or computer printer. 43
  44. 44. Tips For Visual Projectors Face your audience, not the screen. And dont block anyones view with your body or the projector itself. Change your transparencies smoothly and never leave an empty screen. Tape the power cord to the floor to keep yourself from tripping over it!. Have a spare bulb. If you have no light you have no presentation. 44
  45. 45. Product DemonstrationsOne of the most effective methods of appealing to the buyers senses is through product demonstrations, or performance tests. Customers and prospects have a natural desire to prove the products claims for themselves. Obviously, the proof is much more satisfying and convincing to anyone who is a party to it. Some products can be sold most successfully by getting the prospect into the showroom for a hands-on product demonstration. Showrooms can be quite elaborate and effective. 45
  46. 46. Demonstrations Prove ItA successful demonstration► Lets the prospect do something simple► Lets the prospect work an important feature► Lets the prospect do something routine or frequently repeated► Has the prospect answer questions throughout the demonstration (feedback) 46
  47. 47. Seven Points to Remember about Demonstrations 47
  48. 48. Demonstration Catch the buyers interest •Fortify your points •Help the prospect understand A well planned •Keep you interested and enthusiasticdemonstration will •Cut down on the number of objections •Help you close •Get the prospect "involved" Concentrate the Prospect’s Attention on You Planning a •Demonstrate Your Interest in the Prospect - start off by handing them Demonstration something •Demonstrate Benefits not features Getting Let the prospect do something simple. Participation •Let the prospect work an important feature. in a •Let the prospect do what he would frequently do. demonstration •Ask the prospect questions throughout the demonstration. Is the demonstration needed and appropriate? •Have I developed a specific demonstration objective? •Have I properly planned and organized the demonstration? Sales •Have I rehearsed to the point that the demonstration flows smoothly and Demonstration appears to be natural? Checklist. •What is the probability the demonstration will go as planned? •What is the probability the demonstration will backfire? •Does my demonstration present my product in an ethical and professional manner? "You know your product better than you know how your clients businessThe salespersons can use it." curse •You must determine what kind of buying decision to recommend to the 48 prospect
  49. 49. Reasons for Using Visual Aids and Demonstrations► Capture attention and interest► Create two-way communication► Involve the prospect through participation► Afford a more complete, clear explanation of products► Increase a salesperson’s persuasive powers by obtaining positive commitments on a product’s single feature, advantage, or benefit► People receive 87 percent of their information on the outside world through their eyes and only 13 percent through the other four senses► The addition of participation is much more persuasive than dramatization alone 49
  50. 50. HandoutsHandouts are written documents provided to buyers to help them remember what was said. A well-prepared set of handouts can be one of the best ways to increase buyer retention of information, especially over longer time periods. A common practice is to make a printed copy of the overheads and give that to the buyers at the conclusion of the presentation. 50
  51. 51. Tips for Hand outs► Dont forget the goal of your meeting.► Make sure the handouts look professional.► Dont cram too much information on a page.► Dont drown your prospect in information. 51
  52. 52. Written Proposals The RFP process Writing proposals Presenting the proposal 52
  53. 53. The RFP processA document issued by a prospective buyer asking for a proposal may be called a request for proposal (RFP), request for quote (RFQ), or request for bid (RFB). The RFP should contain the customers specifications for the desired product, including delivery schedules. RFP are used when the customer has a firm idea of the product needed. when the resulting product truly meets the needs of the customer, that outcome is only fair. 53
  54. 54. Writing proposals Proposals do the selling job when the salesperson cannot be present. A key issue is keeping the customers needs in mind. Always write down what the customer needs during the initial meeting. If not, two days later the salesperson will have forgotten some details she or he wanted to cover in the proposal. Proposals, then, have three parts► An executive summary► A description of the current situation in relation to the proposed solution► A budget 54
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  56. 56. Presenting the proposalProspects use proposals in many different ways.Proposals can be used to con­vince the home officethat the local office needs the product, or proposalsmay be used to compare the product and terms ofsale with those of competitors. When the proposal isgoing to be sent to the home office, it is wise tosecure the support of the local deeision maker.Although that person is not the ultimate decisionmaker, the decision may rest on how much effort thatperson puts into getting the proposal accepted. 56
  57. 57. Each unit or mini presentation consists of five elements Buying Motives To Associate With A BenefitI.FeatureII.BenefitIII.Buying motiveassociated withthis benefitIV.Evidence or •Qualityproof statements •ConvenienceV.Nail down or trial •Cost savingclose •Status •Security 57
  58. 58. Features Benefits •Benefits are the value to the customer •Translating features into benefits is one of your most•The components of your product or important skillsservice •Transitional phrases•They are the same no matter who connect features to benefitsuses the product or service. •Because .. •This lets you … •That means … •What this gives you 58
  59. 59. Units of Conviction Concise, carefully prepared "mini presentations"•Building blocks in constructing the information you present.•Prepared ahead of time•Practiced until you are comfortable•Add them to your store of available options for later use.•Become a permanent part of your selling arsenal.•Learn how to personalize units of conviction•Recall them in the best order for helping the prospect see them clearly 59
  60. 60. Feature benefit worksheet•You need to develop a general sheet•A specific sheet for each customer The Nail Down or Trial Close Nail Down or Trial close should always be made•A yes/no question that confirms that the prospect agrees that the benefit isapplicable•If the prospect says no then go back over this benefit •After making a feature - benefit sequence•This gives you feedback and builds commitment •After the presentation. •After answering an objection. •Immediately before you move to close the sale Forms of Nail Downs (Trial Closes) Hasnt he? Havent they? Arent They? Dont you agree? Hasnt she? Wasnt it? Arent you? Dont we? Isnt it? Wont they? Cant you? Shouldnt it? Isnt that right? Wont you? Couldnt it? Wouldnt it? Didnt it? Doesnt it? Standard Nail Down Put the nail down at the end Example: "After seeing this feature you can really see the benefit. Cant you?" Inverted Nail Down Put the nail down at the beginning. Example: "Cant you see the benefit of this feature?" Internal Nail Down Embed in the middle of the sentence. Example: "After seeing this feature, cant you see the benefit?" When the customer says something positive, reinforce with a nail Tag on Nail Down down. 60 Customer: "I can see the benefit of that feature." Example: Seller: "Cant you?"
  61. 61. Quantifying The Solution Salespeople can strengthen the presentation by showing the prospect that the cost of the proposal is offset by added value; this process is often called quantify­ing the solution.► Simple cost-benefit analysis► Comparative cost-benefit analysis► Return on investment► Payback period► Net present value► Opportunity cost► Other methods of quantifying the solution 61
  62. 62. Simple cost-benefit analysisPerhaps the simplest method of quantifying the solution is to list the costs to the buyer and the savings the buyer can expect from the investment, often called the simple cost-benefit analysis. For this analysis to be realistic and meaningful, information needed to calculate savings must be supplied by the buyer. 62
  63. 63. Comparative cost-benefit analysisIn many situations the salesperson also provides a comparison of the present sit­uations costs with the value of the proposed solution. Or the salesperson com­pares his or her product with a competitors product. 63
  64. 64. Return on investmentThe return on investment (ROI) is simply the net profits (or savings) expected from a given investment, expressed as a percentage of the investmentROI = Net profits (or savings) + Investment 64
  65. 65. Payback periodThe payback period is the length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings. To calculate the payback period, you simply add up estimated future cash inflows and divide into the investment cost. If expressed in years, the formula isPayback period = Investment / Savings (or profits) per year 65
  66. 66. Net present valueA tool to assess the validity of an opportunity is to calculate the net present value (NPV), which is simply the net value today of future cash inflows (i.e., dis­counted back to their present value today at the firms cost of capital) minus the investment. The actual method of calculating NPV is beyond the scope of this book, but many computer programs and calculators can calculate NPV quickly and easily. NPV=Future cash inflows discounted into today dollars - Investment 66
  67. 67. Opportunity costThe opportunity cost is the return a buyer would haveearned from a different use of the same investmentcapital. Thus a buyer could spend $100 million to buyany of the following: a new computer system, a newproduction machine, or controlling interest inanother firm. Successful salespeople identify otherrealistic investment opportunities and then help theprospect compare the returns of the various options. 67
  68. 68. Other methods of quantifying the solutionAmong the many ways to quantify the solution are turnover, contribution mar­gin, accounting rate of return, and after-tax cash flows. Salespeople should use methods that are understandable to the prospect and reflect the prospects unique needs and concerns 68
  69. 69. Dealing With The Jitters► Know your audience well► Know what youre talking about.► Prepare professional, helpful visuals.► Be yourself. Dont try to present like someone else.► Get a good nights sleep.► Recognize the effect of fear on your body► Visualize your audience as your friends-people► Psych yourself up for the presentation.► Think of the successes you have had in your life► Realize that everyone gets nervous before a presentation at times. 69
  70. 70. Handling special situations •Their office •Your officeThe Setting for •Restaurant the a.Less interruptionsSales Interview b.Your prospect is obligated to listen c.Non threatening atmosphere d.Less stressful Wait until the prospects attention is completely back to you. •Restate the selling points that were of interest to theInterruptions prospect. •Invite participation. •Make sure interest has been regained, then proceed. Offer to leave the room if the prospecy must take a call Phone Calls •Turn off or silence your cell phone or pager. 70
  71. 71. End of Chapter 10
  72. 72. Thank you