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19 chapter 12 &-13_student_tuesday


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19 chapter 12 &-13_student_tuesday

  1. 1. Section 104 – Tuesday Where we are and where we are going Today, November 5th •Chapter 12 – Presentation/Demonstration •Chapter 13 – Negotiation Next Tuesday, November 12th •Chapter 14 – Closing •Chapter 9 – Building a Customer Base ROLE PLAY 2 WEEK OF NOV 18
  2. 2. A Word on the Exam  Improvement over Exam 1 3 question curve  Final grade is reflected in on Blackboard  Come see me if you have questions
  3. 3. A Word about the course I strive to be fair in my assessments  Please  Don’t come see me if you have concerns wait until the end of the semester  Opportunities  So for extra points far – 7 possible extra credit points  Attendance/contribution  Here points to pad the stats and help you out
  4. 4. Learning Objectives  Identify  Learn the three presentation strategies how to create an effective presentation  Keys to Success
  5. 5. Why is the presentation so important?  Adds sensory appeal  Attracts customer attention  Stimulates interest & desire  Improves communication and retention  Provides Proof of buyer benefits  Opportunity to give solution
  6. 6. Planning and Executing
  7. 7. Informative Presentation Strategy  Emphasize  Used to introduce new products/services  Stress  Less facts clarity, simplicity, and directness is more—beware of information overload  Transition from information conveyer to trusted advisor
  8. 8. Persuasive Presentation Strategy  Influence the prospect’s beliefs, attitudes, or behavior & encourage action  Subtle seller transition from rational to emotional appeals  Requires training/experience to be effective
  9. 9. Reminder Presentation Strategy  Also known as “reinforcement presentations”  Helps maintain product awareness  Good when working with repeat customers  Most appropriate with new/emerging or well-established products?
  10. 10. Keys to Success: Customize the Presentation  Tailor the presentation to the needs/problems mutually identified by prospect and salesperson  Make it personal, but…  Do not over-structure  Professor G says: “PLAN IT, DON’T CAN IT.”
  11. 11. Keys to Success: Cover One Idea at a Time  Pacing - Make sure customer understands each point before moving on  Ask Check-In Questions  Summarize  KISS:  Ask your major points Keep It Simple an Straightforward summary-confirmation questions
  12. 12. Keys to Success: Telling, Showing, and Involvement  Balance  Involve   Be all three prospect as much as possible Proverb: “Tell me, I’ll forget; show me, I may remember; but involve me & I’ll understand.” Creative  Use Humor (if applicable)  Appeal to as many senses as possible
  13. 13. Keys to Success: Use Proof Devices  Your presentation is the most convincing proof  Product itself is often best selling aid  Plant tours are excellent source of product info  Photos, illustrations, and brochures  Articles provide credibility  Catalogs show product line and specifications  Graphs, charts, and test results  Websites, Laptops and software  Testimonials
  14. 14. Keys to Success: Create a Demonstration Worksheet
  15. 15. Class Activity - Teams What 3 proof devices you would use when selling: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (Some) Proof Devices A bicycle to an avid rider Product itself A bicycle to a beginner Plant tours CRM software to an office manager Photosillustrations Exhibit space in a ballroom to a vendor Brochures Cookware to a professional chef Articles A home security system to the mother Catalogs of a family of five Graphscharts Life Insurance to a 32-year old married sales professor with no kids at Ohio University  Websites/Laptops Hotel facilities to a conference planner Testimonials A gym membership to someone looking Test results to lose weight Blueprints Catering services for a wedding to the Others?? bride and her parents
  16. 16. Keys to Success: Choose Right Setting  Location  Neutral makes a difference ground, like hotel/conference center  Firm’s conference room  Maybe even Copeland Hall Room 206  Check out meeting room in advance  Why?
  17. 17. Keys to Success: Revisit the Value Prop  Drive home the set of key benefits you will deliver to meet customer needs  Only  say what you can deliver You can’t give everyone the “best” exhibit space Quantify the Solution  Cost-benefit analysis, ROI, opportunity cost  Contribution margin of your product
  18. 18. Keys to Success: Check Sales Tools  Ensure audio/video, computer tools/files are in working order  Be prepared for technology snags  Have a backup (or a backup plan)
  19. 19. Discussion Questions Assume you checked everything before giving a sales presentation, including your laptop and projector, your PowerPoint and Excel files to be used, as well as your wireless Internet connection for accessing your company’s Website live.  What problems could still occur?  What could you do to prevent these problems from ruining your presentation?
  20. 20. Computer-based Tools  Spreadsheets  organize  Convert  Can numbers to prepare quotes to graphs/charts do ‘what-if’ scenarios  Web-based  Real demonstrations time Q&A  Show,  Virtual  Make Tell & Involve tours it interactive
  21. 21. Computer-based Tools: PowerPoint  Pro: Can incorporate charts, graphs, images, audio, and video  Con: Familiarity level can make it be boring  Goal: Be unique & memorable  Alternatives?
  22. 22. Rehearse, Rehearse, Rehearse  Get mistakes out of the way beforehand  Have  Do presentation videotaped a role play with your professor  Because ‘bout? what are we sittin’ here, talkin’
  23. 23. Professional Selling: MKT 3580 Chapter 13: Negotiation
  24. 24. Learning Objectives To Understand:  Common types of buyer concerns  Specific methods of negotiating buyer concerns  Methods for creating value in formal negotiations  How to work with trained buyers
  25. 25. Negotiation Defined  Working to reach an agreement that is satisfactory to both buyer and seller  Ability to negotiate problems or concerns is most effective way to create value  Negotiation  Not is a process a once-and-done  Knowledge = Power Own Interest Common Interest Own Interest
  26. 26. Negotiation: A Win-Win Strategy     Selling is not an “us versus them” process If you gain trust negotiation becomes a partnership If not, it can be combative Goal = Maintain long-term relationship
  27. 27. Planning for Formal Negotiations 1. PLANNING b) Gather information before negotiation Anticipate questions and be prepared with answers c) Develop empathy (put yourself in their shoes) a) 2. Understand value of what you are offering a) 3. Determine goals and financial objectives a) 4. Value Proposition and Benefits Set minimum requirements that you will accept Prepare an agenda & use Negotiation worksheet
  28. 28. Conducting the Negotiation Session Understand the problem 1. a) Is there a difference between disagreement and misunderstanding? Create alternative solutions that can add value 2. a) “So your concern is X. Is that correct?” – why say this? b) Gives you time to think about a response and shows concern Periodically review points of agreement 3. a) Put disagreements in perspective Do not make concessions too quickly 4. a) Shows a weak position Be mindful of your timing 5. a) Negotiations often happen in last part of meeting Know when to walk away 6. a) When might you do this?
  29. 29. Common Types of Buyer Concerns 1. Need for the product – We already have our own organic soda brand. 2. Product itself– I’m not sure GuS is for Kroger 3. Source of the product – I’m going to check with Dry Soda first 4. Time – I need a month to think it over 5. Price – that price is too high for our gross margin.
  30. 30. Need for Product  Conditioned response: “I don’t need the product” – why?  Not convinced of your product’s benefits  How can you overcome this?  Avoid it by solid pre-planning  Prove your product fits their need  Prove they have that need in the first place
  31. 31. The Product Itself  Product is not well established  All comes down to your product being… Source of the Product  Buyer may have a loyal, established partner   This means there could be an emotional tie Ways to overcome:  Point out profits of adding a second line  Point out specific problems your company can solve
  32. 32. Concerns Related to Time  Also known as “the stall”  Customer does not perceive benefits of buying now  Use probing questions to determine negative feelings  “Is it X that concerns you?” BUY GuS?
  33. 33. Options for Negotiating Buyer Concerns  Direct denial  John Smith says “GuS is higher calorie than Simple Truth.”    How do you refute that opinion or belief? Be firm, not offensive; think win-win Indirect denial  Prospect may have a point (limitation, con, etc.)  Feel-Felt-Found – “I understand how you feel. Others have felt that way until they used the product and found it quite easy and reliable.”
  34. 34. Options for Negotiating Buyer Concerns  Questions  Convert problem into need-satisfaction question  J.S.: “We already have 3 organic soft drinks.”   Superior benefit    Yes, but do you have one at this price point? Acknowledge prospect has valid concern Focus on superior benefit that outweighs that concern Demonstration   Discuss competitive advantages of your product Demonstrations overcome buyer skepticism effectively
  35. 35. Options for Negotiating Buyer Concerns  Trial offer    Prospect tries product without purchase commitment “I know you’re happy with your current provider, let us ship you some free of charge and see what you think.” Third-party testimony    Neutral third-party adds credibility Almost never triggers an argument from the client Postpone method  It’s OK to get back to a concern later in the meeting
  36. 36. Role Play…teams You are selling OU to a high school senior. They object: 1. It’s too big. 2. Too far from home. 3. Nothing to do there. 4. The teachers are lame. •Convert problem to need-satisfaction question 5. The dorms aren’t nice. 6. It’s too small. 7. It’s haunted. Methods to Alleviate Concern •Direct Denial of issue – You’re wrong. •Indirect Denial – You are partly correct. •Offer Superior Benefit to that concern •Demonstrate your value somehow •Trial offer of your value •Third-party testimony •Postpone method 8. I don’t like nature. 9. My boyfriend/girlfriend is going to another school. 10. It’s too close to home. My parents will visit me. 11. I come from an all boys/girls high school, I’ll lose focus.
  37. 37. Concerns Related to Price  Price is one of the most common buyer concerns.  To most buyers, value is more important than price.  Position product with convincing value proposition.  Customers who perceive added value are less likely to object on basis of price.
  38. 38. Dealing with Price Concerns  Do clarify price concerns with questions  Do add value with a cluster of satisfactions  Do not make price focal point  Do not apologize for the price  Do point out the relationship between price/quality
  39. 39. The Price Iceberg, aka, the Priceburg Price is only the tip of the iceberg. Remind customer of valueadded factors below the tip.
  40. 40. Price Concerns: Trained Buyers  Budget limitation tactic   You can try unbundling and reconfiguring Take-it-or-leave-it tactic  Review the added value, try to close again  Let’s-split-the-difference tactic  “If . . . then” tactic   “If you cut your price by 20%, then we can talk.” “Sell low now, make profits later” tactic  “Reduce your price this once and I’ll come back to you in the future.”