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National Cash Register developed an offshoot of the MSP called the Canned Sales Presentation or CSP. The CSP basic structure is:
CSP was developed by NCR where the firm prepares a series of standardised sales presentation based on findings of its sales approach analysis. Finally sales force are required to memorize these approaches during sales calls.
Since it worked well with NCR, it was eventually adopted by other firms. CSP are still used today, mainly in telesales and door to door selling.
A part of any presentation can be canned, linked with a free form conversation.
Overtime, most salespeople develop proven selling sentences, phrases and sequences in which to discuss the information. They can use this all in their presentation.
For example, the salesperson may make a sales start to draw information from the buyer, using trial closes, answering questions, and handling objections.
At the end of the participation curve, the salesperson regains control over the discussion and moves to close the sale.
The formula selling approach derives its name from acronym AIDA which stands for attention, interest, desire and action , a procedure of developing and giving the sales presentation.
Straight rebuy (repeat buying) and modified rebuy situation, especially with consumer goods lend themselves to this method. Many prospects or customers buy because they are familiar with the salesperson’s company and its product.
Formula selling is an effective tool for calling on customers who currently buy and for prospects about whose operations the salesperson has learned a great deal. Formula selling offers significant advantages:
It ensures that all information is presented logically
It allows a reasonable amount of buyer-seller interaction
It allows smooth handling of anticipated (expected) questions and objections
Disadvantages of Formula Selling
Any stop or disruption, a break in flow may cause the salesperson to lose his or her rhythm of the sales presentation.
Failure to correctly identify the prospect’s needs and wants can be disastrous.
Possibility of prospect’s or customer’s objection may arise if sufficient prior preparatory work is not done.
The formula selling is not adaptable to a number of complex selling situations
The Need- Satisfaction Presentation (NSP) Method
What is the NSP Method?
The Need – Satisfaction Presentation designed as flexible, interactive sales presentation. It is considered as the most challenging and creative form of selling.
The salesperson may choose to start the presentation with a probing question like: “What are you looking for in the investment property? Or “What type of computer needs does your company have?
This type of opening starts a discussion of the prospect’s needs and also gives the salesperson an opportunity to determine whether any of the products being offered might be useful.
When the prospect fails to understand the salesperson, the salesperson has to seek an answer by questioning the prospect
or repeating what has been said again.
Otherwise, the salesperson may also choose to rephrase the said sentence in more simplistic tone or in a language (lingo) familiar to the prospect.
The type of presentation is best suited for the sales of industrial and technical goods with stringent specification and high price tags.
As per the above diagram, the 50 to 60 percent of the conversation time (also referred to as the need-development phase) is focused to the discussion of the buyer’s needs.
Upon becoming aware of the prospect’s needs (the needs awareness phase), from here the salesperson takes charge of the communication by emphasizing the prospect’s needs to clarify any doubts and ensure that prospect is clear or understands completely what is in offer from the salesperson.
Towards the last stage of the presentation, at the need fulfilment (or need satisfaction) phase, the salesperson should show how the product would satisfy mutual needs.
If you should call back at the prospect’s office for a second time, as it may be in the case of selling industrial product, you may resort to using the formula sales presentation method when calling upon the prospect.
From the buyer’s response to your question you can gather what to do. If there is any objection raised, you can respond to it positively.
If further information is required you can provide it. Once you are convinced that the buyer is pleased with your product, you may go to close the sale and make a request for a purchase order.
THE NSP DIAGRAM (Explanation)
Advantages of the Needs – Satisfaction Presentation (NSP) method
Advantages of NSP
It is a flexible, interactive style of two way communication of sales presentation.
Well suited for especially for the sale of industrial and technical goods with stringent specification and high price tags.
Helps the prospect to clarify by asking questions or by restating what has been already said by the salesperson
A lot can be determined by the prospect or buyer’s response (body language and gestures) during course of the interactive sales presentation
It helps to bring about mutual benefits and rapport to both the prospect and the salesperson.
It helps to create a better understanding and improved working relationship between both parties.
Drawbacks of the Needs – Satisfaction Presentation (NSP) method
The disadvantages of NSP method
Asking of too many questions can alienate or discourage the prospect.
Salesperson may be ill prepared or unaware of the type of probable question that may asked by the prospect
Salesperson feels they may be losing control of the selling situation
Salesperson may feel there is insufficient time to perform to their best as the time allocated is limited.
The salesperson must be observant and monitor any gestures and body language from the prospect during the presentation and act accordingly.
The Problem-Solution Presentation (PSP) Method
What is PSP Method?
A salesperson has to make several sales calls to develop a detailed analysis of the prospect’s needs.
This arises in the selling of highly complex or technical products such as insurance, industrial equipment, accounting system, office equipment and computers etc.
After developing this detailed analysis a written analysis is prepared.
The salesperson moves on to arrive at a solution to the prospect’s problems by using written analysis and oral presentation.
The Six Steps in Problem – Solution Presentation
Convince the prospect to allow you the salesperson to conduct the analysis.
Making the actual analysis
Agreeing on the problems and determining (desire) that the buyer wants to solve them.
Preparing the proposal for a solution to the prospect’s needs
Preparing the sales presentation based on the analysis and proposal.
Frame the issue as a joint problem that you can solve together.
Start with the other side's main points or concerns.
Step 3: Exploring
Also important is to actively listen for facts and reasons behind other party’s position and explore underlying needs of the other party. If conflict exists, try to develop creative alternatives. In a difficult situation, do not say anything. Take time out. When we say nothing we give nothing away .
Step 4: Selecting, Refining, and Crafting an Agreement
It is a step in which both parties present the starting proposal. They should listen for new ideas, think creatively to handle conflict and gain power and create cooperative environment.
Step 5: Reviewing and Recapping the Agreement:
This is the step in which both parties formalize agreement in a written contract or letter of intent.
Reviewing the negotiation helps one to learn the lessons on how to achieve a better outcome. Therefore, one should take the time to review each element and ask oneself, "what went well?" and "what could be improved next time"
Attention has become one of today’s scarce resources. Many of the people we need to meet with are facing a time constraint and distracted by bombardment of information overload. They are unable to focus, and must learn how to connect with prospects and then come to a decision on how to get the attention of the prospect (customer).
A telephone call provides a quick and inexpensive way to schedule your appointments with the prospect.
Some salespeople use the telephone to establish and maintain contact with the customer. One way is through the Telesales.
Telesales should not to be confused with telemarketing, include many of the same elements as traditional sales: gathering customer information, determining needs, prescribing solutions, negotiating objections and closing sales.
Telephone Contact – Guidelines in its usage with prospects or customers
When you make an appointment by telephone use the following practice:
Plan in advance what you want to say
Be courteous when you identify yourself for the company you represent .
Inform clearly the receiver the purpose of your call
Be specific and prompt in the time utilized to meet the prospect.
Indirectly directing the prospect’s attention from the social contact to the business proposal has to be subtle and gradual without being obvious to the prospect. When you hold and convert your prospect’s attention you have fulfilled an important step in the selling process.
SELL Sequence Technique is a sequence of things to do and say to stress the importance of benefits to the customer: show the features, explain the advantages, lead into the benefit, and let the customer talk by asking a questions about the benefits .
Sell Sequence Technique Explain your business proposition. This step relates the value of your product to its cost. It should be discussed last, since you always want to present your product’s benefits and marketing plan relative to your product’s price. Step 3 Present your marketing plan. For wholesalers and retailers, this is your suggestion on how they should resell the product. For end users, it is your suggestion on how they can use the product. Step 2 Fully discuss the features, advantages and benefits of your product. Tell the whole story. Step 1 Method Sequence
This is a powerful proof technique. It assures prospect that if they are dissatisfied with their purchase, the salesperson or the company will replace or take product back and refund the purchase price to customer.
This must be done within a stipulated time period usually ranging from 14 days to a month (30 days).
Testimonials are an excellent way to build trust and confidence during or before presentation of the product’s features, advantages and benefits. Professional buyers are impressed by testimonials from prominent people, experts and satisfied customers
Company Proof Results
Information available within a company such product data, test market information, current sales data all act as indicator of the product performance. Company product research information is used by industrial salespeople as proof of product’s performance. Salespeople with consumer goods manufacturer use test market information in their presentation on a new product being market nationally.
Independent Research Results
Evidence provided by reputable sources outside the company usually has more creditability than company generated data. Pharmaceutical salespeople frequently tell physician about medical research findings in the medical journals/magazines of Lancet (British Medical Association), JAMA (American Medical Association) and MMA (Malaysian Medical Association) of their company products as proof of the product’s performance.
People retain about 10 percent of what they hear but 50 percent of what they see. You have five times the chance of making a lasting impression with an illustrated sales presentation than with words alone.
Visuals are most effective when you believe in them and have woven them into your sales presentation message. Use them to:
Increase retention (memory recall)
Reinforce the message
Create a unique and lasting impression
Show the buyer or prospect that you are a professional.
Rehearse by practicing in front of a mirror, on a tape recorder, and/or on videotape. Once you have finished you may begin using it with the less important prospects. This allows you time to polish up the presentation before contacting important key accounts.
Customizing them to the sales call objective – the prospect’s customer profile and the customer benefit plan – and concentrating on the prospect’s important buying motives, using suitable multiple appeals to sight, touch, hearing, smell and taste. E.g. At a perfume/cologne counter in a shopping mall you can get the salesperson to allow you to experience your sensory reception to a particular perfume or cologne.
Making them simple, clear and straightforward.
Being sure you control the demonstration by not letting the prospect divert you from selling.
Making them true to life.
Encouraging prospect participation.
Include trial closes (questions) after showing or demonstrating major FABs to determine if the prospect believes the presentation and considers its importance.
Dramatics refers to talking or presenting the product in a striking (unique way), showy (acting), or extravagant manner. Sales expertise can involve dramatization or a theatrical presentation of products.
You must be 100 percent sure that it would work effectively before you engage dramatics in your presentation. If implemented correctly, dramatics will be an effective way of a good presentation. One can develop your skills in dramatics by watching television commercials.
Use a dramatic demonstration to set yourself apart from many mundane salespeople that buyers see daily. Buyers, such as industrial purchasing agents, like to see you, as they know you will have an informative and often entertaining sales presentation.
One of the best ways to convince a prospect that a product is needed is to show the merits (good side) of the product through a demonstration. If a picture is worth a thousand words, then a demonstration is a thousand pictures.
Therefore, it is best to show how the product/s, if possible, and have the prospect to use it. If this is not possible, then use pictures, models, videotapes, films or slides as the best alternatives. Whatever the salesperson is attempting to sell, the prospect should be able to see it.
Demonstrations are part of the dramatization and fun of your presentation. Do not think demonstrations are not important, no matter how simple they are, they are most helpful and capable of making sales.
The only way to ensure a smooth demonstration is to practice (practice make perfect). Yet, there is always the possibility that the demonstration will not go as planned or will backfire (something may go wrong) no matter how simple, but most of all be prepared at all times
In an ideal presentation, your approach technique quickly captures your prospect’s interest and immediately identifies signals (non verbal cues) that the prospect has a need for your product and is ready to listen actively.
The ideal prospect is friendly, polite and relaxed, will not allow you to be interrupted, asks questions, and participates in your demonstration as planned. This helps you to move on swiftly with ease through your presentation without much difficulty.
The satisfied customer gladly answers each of your questions, allowing you to anticipate the correct moment to ask for an order.
You should be at ease and completely relaxed and know for sure when to come to a close. The customer is happy and says yes and happily thanks you for your valuable time. After a week or so you receive a commendation and words of thanks and possible future support from your customer and their organization.