Personal Selling: Chapter 6


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  • Personal Selling: Chapter 6

    1. 1. Adaptive Selling for Relationship Building Chapter 6
    2. 2. Important Questions Answered What is adaptive selling? Why is it important for salespeople to practice adaptive selling? What kind of knowledge do salespeople need to practice adaptive selling? How can salespeople acquire this knowledge? How can salespeople adapt their sales strategies, presentations and social styles to various situations? 2
    3. 3. “I’ve learned the importance of adapting to the specific needs of each customer.” ~Katherine Bowe Account Executive 6-3
    4. 4. Types of Presentations Three types of presentations salespeople use are  Standard memorized presentation  Outlined presentation  Customized presentation 4
    5. 5. Standard memorised presentations These are memorised by the sales persons. The salesperson presents the same selling points in the same order to all customers. Some companies insist that their salespeople memorize the entire presentation and deliver it word for word. Others believe that salespeople should be free to make some adjustments.  Also called a canned presentation  Completely memorized sales talk  Ensures salespeople will provide complete and accurate information  Limited effectiveness  Standard, memorized presentations can be delivered at low cost by unskilled salespeople 7.5
    6. 6. Outlined presentations These are prearranged presentations that list the most important sales points. An outlined presentation can be very effective because it is well organized.  Prearranged presentation that usually includes standard introduction, standard Q&A, and a standard method for getting the customer to place an order 7.6
    7. 7. Customised presentations These presentations are based on detailed analysis of customer’s needs and are prepared carefully and separately for various customers as and when the needs come up. The salesperson may bring in specialists to conduct the study. The customer recognizes the sales representative as a professional who is helping to solve problems, not just sell products  Written and/or oral presentation based on a detailed analysis of the customer’s needs  Allows the salesperson to demonstrate empathy  Customized presentations can be very costly, requiring highly skilled people to analyze the customer’s needs 7
    8. 8. Adaptive Selling and Sales Success Adaptive selling is successful as the sales personnel, each time, change their sales presentations according to the needs during the sales call. This is done to satisfy the client; not to be dishonest to win the orders. An example o non adaptive selling is using the standard memorized presentation, The customized presentation illustrates adaptive selling because the presentation is tailored to the specific needs of the customer.  Adaptive selling forces the salesperson to practice the marketing concept.  The world is made up of diverse people.  Salespeople should adapt to the customer’s desire for a specific type of relationship.  Adaptive selling gives salespeople the opportunity to use the most effective sales presentation for each customer. 8
    9. 9. Knowledge and Adaptive Selling A key ingredient in effective selling is knowledge . Salespeople need to know about the products they are selling, the company they work for, and the cus­ tomers they will be selling to. Product and Company knowledge Organising knowledge of sales situations and customers into categories Approaches for developing knowledge 9
    10. 10. Product and Company knowledge Sales people need to have a good knowledge of their product, their company as well as their competitors. Purchasing agents rate product knowledge as one of the most important attributes of good salespeople. Effective salespeople need to know how products are made, what services are provided with the products, how the products relate to other products, and how the products can satisfy customers needs. 10
    11. 11. PRODUCT KNOWLEDGE Know everything. •External characteristics The Product •How to use Itself •All available options •Adaptability •Life expectancy Performance •Tolerance to wear and stress •Maintenance and supplies needed.Manufacturing •How is it made •Quality control •Distribution strategy. Distribution •Pricing policies Channels •Media support •Target markets Service •Service policies Available 11 •Service personnel
    12. 12. Benefits of Gaining Product Knowledge Gives you pride self confidence in the product Gives you self assurance Allows you to diagnose the customers problems Enables better customer service Gives you an air of competence Can sell to experts and to beginners 12
    13. 13. Knowledge of the Competition Differential Competitive Advantage Product Superiority Service Superiority • Appearance• Versatility • Design • Delivery• Efficiency • Mobility • Merchandising • Inventory• Storage • Packaging • Installation • Credit• Handling Time • Life Expectancy • Maintenance • Training• Safety • Adaptability Source Superiority People Superiority • Personal knowledge and skill• Time Established • Knowledge and skill of support people• Competitive Standing • Integrity and character• Community Image • Standing in the community• Location • Flexibility of call schedule• Size • Interpersonal skills• Financial Soundness • Mutual friends• Policies and practices • Cooperation 13
    14. 14. Organising knowledge of sales situations and customers into categories Even more important than product and company knowledge is detailed information about the different types of sales situations and customers salespeople may encounter and which sales presentation works best in each situation. By developing categories, salespeople reduce the complexity of selling and free up their mental capacity to think more creatively; they also use knowledge gained through past experiences. The ability to organize knowledge into categories leads to better performance in personal selling. 14
    15. 15. Approaches for developing knowledge The approaches for acquiring knowledge are  Tap the knowledge of sales experts  Read manuals and trade publications  Ask for feedback on what you are doing  Analyse success and failures  Develop an intrinsic orientation toward your work 15
    16. 16. Tap the knowledge of sales experts Companies frequently tap the knowledge of their best salespeople and use this knowledge to train new salespeople. The company developed role plays for each sales situation and used them when training new salespeople. Such role playing enabled the new salespeople to experience the variety of situations they would actually encounter on the job. The strategies recommended by the top salespeople served as a starting point for the trainees to develop their own sales methods for handling these situations. 16
    17. 17. Read manuals and trade publications Information about the salespersons company, its products, and its competitors is available from many sources, including company sales manuals and newsletters, sales meetings, plant visits, and business and trade publications. Knowledgeable salespeople read sales bulletins and announcements from their companies and articles in the trade publications about their customers and their industries. They ask company employees questions about new programs and products 17
    18. 18. Ask for feedback on what you are doing Frequently the feedback salespeople get from their supervisors focuses on performance. However, diagnostic feedback is much more useful than performance feedback for improving performance over the long run. Diagnostic feedback provides information about what someone is doing right and is doing wrong. 18
    19. 19. Analyse success and failures Effective salespeople learn from their mistakes, using them to build a greater knowledge base. They also learn from their success . After making a sale, they should analyze what they did to achieve success. The performance analysis Should focus on sales strategies used, identifying the specific strategies causing the performance and determining weather or how they should be changed in the future. 19
    20. 20. Develop an intrinsic orientation toward your work People can have two types of orientation towards their job.  Intrinsic orientation: People in this category enjoy their work. They find it challenging and fun.  Extrinsic orientation: People in this category view their job as some thing that has to be done to get rewards or to avoid punishment. When salespeople find their jobs as a challenge and fun, they want to learn how to do it better. 20
    21. 21. The Social Style Matrix The social style matrix is a popular training program that companies use to help sales people adapt their communication styles. Dimensions of Social Styles  Assertiveness : The degree to which people have opinions about issues and publicly make positions clear to others is called assertiveness. They attempt to influence others to accept these beliefs.  Responsiveness: Responsiveness is based on how emotional people tend to get in social situations. Responsive people readily express joy, anger, and sorrow. They appear to be more concerned with others and are informal and casual social situations 21
    22. 22. Indicators of Assertiveness 22
    23. 23. Indicators of Responsiveness 23
    24. 24. Relationship between Responsiveness and Social Styles Low responsiveness ls High assertiveness icaLow assertiveness t aly s er An riv D ls ve iab a ssi Am p re Ex High responsiveness24 Contd.
    25. 25. Social Style Matrix 7.26
    26. 26. Suggestions for accurate Assessment Concentrate on the customers behavior and disregard how you feel about the behavior. Avoid assuming that specific jobs or functions are associated with a social style Attempt to get customers to reveal their styles rather than react to your style. Ask questions rather than making statements. Test your assessments. Look for clues and information that may suggest you have made an incorrect assessment of a customers social style. 27
    27. 27. Categories of Social StylesThe two dimensions of social style, assertiveness and responsiveness, form the social style matrix. Each quadrant of the matrix defines a social style type.  Drivers are high in assertiveness and low in responsiveness.  Expressives are high in assertiveness and high in responsiveness.  Amiables are high in responsiveness and low in assertiveness.  Analyticals are low in both assertiveness and responsiveness. 28
    28. 28. THE BEHAVIORAL OR SOCIAL STYLES MODEL Four basic styles based on four functions of human personality Function CharacteristicDriver Quick reactions to here and now sensory[Sensor] inputExpressive Imagination and thought[Intuitive]Amiable Emotional and personal reactions to[Feeling] experiencesAnalytical Logically organizing and analyzing data[Thinking] 29
    29. 29. Drivers Drivers are high on assertiveness and low on responsiveness. Drivers have learned to work with others only because they must do so to get the job done, not because they enjoy people. They have a great desire to get ahead in their companies and careers. Drivers are swift, efficient decision makers. They focus on the present and appear to have little concern with the past or future. To influence a driver, salespeople need to use a direct, businesslike, organized presentation with quick action and follow- up. Proposals should emphasize the effects of a purchase decision on profits. 30
    30. 30. Highlights of Drivers Decisive in action and decision making Likes control; dislikes inaction Prefers maximum freedom to manage self and others Cool, independent, and competitive with others Low tolerance for feelings, attitudes, and advice of others Works quickly and impressively alone Seeks esteem and self-actualization Has good administrative skills 31
    31. 31. Expressives Expressives are high on assertiveness and high on responsiveness. Warm, approachable, intuitive, and competitive, expressives view power and politics as important factors in their quest for personal rewards and recognition. People with an expressive style focus on the future, directing their time and effort toward achieving their vision. They have little concern for practical details. Salespeople need to demonstrate how their product will help the customer achieve personal status and recognition. They prefer presentations with product demonstrations and creative graphics rather than factual statement and technical details. 32
    32. 32. Highlights of Expressives Spontaneous actions and decisions Likes involvement Exaggerates and generalizes Tends to dream and get others caught up in those dreams Jumps from one activity to another Works quickly and excitedly with others Seeks esteem and group identification Has good persuasive skills 33
    33. 33. Amiables Amiables are high in responsiveness and low in assertiveness. Close relationship and cooperation are important to Amiables. They achieve their objective by working with people, developing an atmosphere of mutual trust rather than by using power and authority. Sales people may have difficulty determining an Amiables true feeling. Amiables are particularly interested in receiving guarantees about a products performance. They do not like salespeople who agree to undertake activities and then do not follow through on commitments. Salespeople selling to amiables should stress the products benefits in terms of its effects on the satisfac­tion of employees. 34
    34. 34. Highlights of Amiables Slow in making decisions or taking actions Likes close, personal relationships Dislikes interpersonal conflict Supports and actively listens to others Weak in goal setting and self-direction Seeks security and identification with a group Has good counseling and listening skills 35
    35. 35. Analyticals Analyticals are low on assertiveness and low on responsiveness. They like facts, principles, and logic. Suspicious of power and personal relationships, they strive to find a way to carry out a task without resorting to these influence methods. Salespeople need to use solid, tangible evidence when making presentations to analyticals. Analyticals are also influenced by sales presentations that recognize their technical expertise and emphasize long-term benefits. They tend to disregard personal opinions. analyticals loyalty is based on their feeling that well reasoned decisions do not need to be reexamined. 36
    36. 36. Highlights of Analyticals Cautious in decisions and action Likes organization and structure Dislikes involvement Asks specific questions Prefers objective, task-oriented, intellectual work Wants to be right, so collects much data Works slowly, precisely, and alone Seeks security and self-actualization Has good problem-solving skills 37
    37. 37. Cues for Recognizing Social Styles 38
    38. 38. Social Styles And Sales Presentations The presentation style depends upon the personality of the sales person and the type of the customer. Effective selling involves more than communicating a products benefits. Sales­people must also recognize the customers needs and expectations. In the sales interaction, salespeople should conduct themselves in a manner consistent with customer expectations. Although each customer type requires a different sales presentation, the sales­ persons personal social style tends to determine the sales technique he or she typically uses. 39
    39. 39. Presenting to each of the four social styles Driver Expressive Planning Planningo Short term results o Discover their goals and plans at the preapproacho Your product should show immediate benefits o Concentrate on your offerings exclusive aspects o Stress their personal and company benefits Presenting Presentingo Personal relationship is not important. o They are visionaries, dreamerso Dont spend too much time on the relationship o Open with innovative suggestions for them to growo Move quickly to a substantial benefit with a payback o Learn and relate to their "game plan" Lots of questionso Be brief stress the bottom line o Discuss ideas and concepts with respecto Get them involved. Let them lead o Use some showmanshipo Drivers test your mettle. Prepare for a debate. o Dont get into argumentso Answer objections. Dont bluff o Ask if they want you to respond to their "blue sky" comments.o Present alternatives. Let the prospect choose o Testimonials are importanto Use an action close. o Let them see how it fits into their plan. Analytical Amiable Planning Planningo Structured. They study everything o They want to know you.o Know their business thoroughly o They need your enthusiasmo Use facts o Approach with lots of personal informationo Prepare several alternatives o Bring testimonials, case studies and third party references o Develop a personal relation ship with the prospect Presenting Presenting o Convince of your sincerity.o Data oriented o They have a hard time saying yes.o Structured approach o Dont sound "canned."o Low key, logic based o Make it look real informal but well organizedo Be sure that they understand your structure o Empathize. Reflect their feelingso Emphasize test proven benefits o Spend time on the relationship during the presentationo Visual aides, charts and graphs. "Leave behinds" o Be open and candido Don’t exaggerate or act flamboyantly o Use an interesting, entertaining styleo Point out positives and negatives of your offering o Assume the sale and move to the next step.o Use a detailed summary as a close. 40
    40. 40. Customer Expectation based on Social style 41
    41. 41. Style Summary Driver Expressive Amiable Analytical Backup Style Autocratic Attacker Acquieser Avoider Measures Accuracy Personal Results Applause Security "Being Values By: Right:For Growth Needs Listen Check Initiate Decide to Allows to build Inspires to reachNeeds climate that Provides Details Suggests own structure goals Takes time to be Efficient Stimulating Agreeable Accurate Principles Conclusions and Dreams and Relationships Support their and actions Intuition and feelings thinking Present benefits What Who Why How that tell TestimonialsFor decisions give Options and Guarantees and Evidence and and them probabilities assurances service incentives Their specialty is Controlling Socializing Supporting Technical 42
    42. 42. VersatilityThe effort people make to increase the productivity of a relationship by adjusting to the needs of the other party.  Versatile salespeople : Those able to adapt their social styles are much more effective than salespeople who do not adjust their sales presentations. effective salespeople adjust their social styles to match their customers styles. 43
    43. 43. Less Versatile VS More Versatile 44
    44. 44. The Role of Knowledge Social style matrix illustrates the importance of knowledge, organised into categories, in determining selling effectiveness through adaptive style. Sales training based on the social style matrix teaches salespeople the four customer categories, or types (driver, expressive, amiable, and analytical). Salespeople learn the cues for identifying them. Salespeople also learn which adjustments they need to make in their communication styles to be effective with each cus­tomer type 45
    45. 45. Adjusting Social Styles 6-46
    46. 46. Alternative Training Systems for Developing Adaptive Selling Skills Training methods such as the social style matrix and expert systems are simply a first step in developing knowledge for practicing adaptive selling. Salespeople should avoid rigidly applying the classification rules. When salespeople prepare for global assignments, they learn to categorise customers according to the culture. Here it is important to know in detail, the  Expert systems  Limitation of training methods 47
    47. 47. Expert systems A computer programme developed to assist salespeople to be able to understand the customers and develop effective sales strategies. The computer programme mimics a human expert. The program contains the knowledge, rules, and decision processes employed by experts and then uses these elements to solve problems, suggest strategies, and provide advice similar to that of an expert. 48
    48. 48. Limitation of training methods Training methods like social style matrix and expert systems are a first step in developing knowledge for practicing adaptive selling. They emphasize the need to practice adaptive selling to use different presentations with different customers and stimulate salespeople to base their sales presentations on an analysis of the customer. But these methods are limited; they present only a few types of customers, and classification is based on the form of communication (the social style), not on the content of the communication (the specific features and benefits stressed in the presentation). 49
    49. 49. Features and Benefits Features  The components of your product or service  They are the same no matter who uses the product or service. Benefits  Benefits are the value to the customer  Translating features into benefits is one of your most important skills  Transitional phrases connect features to benefits  Because ..  This lets you …  That means …  What this gives you … 50
    50. 50. Sales Force Automation Systems Also known as SFA system to support their salespeople. It has an online collection of information such as policy manuals, sales literature, analyses, price lists and product description. It has following categories:  Key business issues facing the customer  How can salesperson’s company meet these needs  Competitive offerings.  Most effective sales presentations for a particular customer. 51
    51. 51. Sales Force Automation  - Computers in Selling •Laptops •Pen based computers •PalmtopsPersonal •Contact Management SoftwareProductivity •Mapping programs and GPS •Calendar and scheduling •Geodemographic segmentation •Smart Card ReaderImproved •E mailCommunication •Internet and videoconferencing •TelecommutingTransactional •Electronic data interchange for order processingProcessing •Corporate contact management •Online databases for ordering •Marketing strategy built around benefits important to customers. •Emphasis on serviceProduct Positioning •Focusing on the few attributes that really set you apart means you can’t be all things to all people. •Keep an eye on how your competitors are positioning themselves. •Positioning: The Battle for Your Mind •A computer system that coordinates the marketing elements and provides feedback for measurement. Using computer databases to coordinate all marketing functionIntegrated •Combining demographic characteristics with geographic variables to develop clusters of similar individuals.Marketing •Modules within a firm use common information to deliver communications tailored to the market needs •Account management software facilitates relationship selling because it allows salespeople to match corporate capabilities against the needs of the customer.Databases •a collection of related records or transactions. 52 •storing customer and prospect information on a computer.
    52. 52. Summary Extensive knowledge of customer and sales situation types is a key ingredient in effective adaptive selling. Experienced salespeople organize customer knowledge into categories. The social style matrix illustrates the concept of developing categorical knowledge to facilitate adaptive selling. The social style matrix is one example of a categorical scheme salespeople can use to improve their knowledge and adaptability. 53
    53. 53. End of Chapter 6
    54. 54. Thank you