SALES: PROSPECTING, QUALIFYING, AND COMPLETING pdf

We also provide overall course objectives and a course summary to provide both an introduction to and closure on the entire course.. • Define the sales model and understand the details o

Sales: Prospecting, Qualifying, and Completing

Series Product Managers: Charles G Blum and Adam A Wilcox

Curriculum Developers: Russ D Peterson, Jr and Kevin J Karschnik

COPYRIGHT © 2009 Axzo Press

ALL RIGHTS RESERVED No part of this work may be reproduced, transcribed, or used in any form or by any

meansgraphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or

information storage and retrieval systemswithout the prior written permission of the publisher

For more information, go to www.axzopress.com.

Trademarks

ILT Series is a trademark of Axzo Press

Some of the product names and company names used in this book have been used for identification purposes only and

may be trademarks or registered trademarks of their respective manufacturers and sellers

C o n t e n t s

Introduction iii

Topic A: About the manual iv

Topic B: Setting student expectations ix

Topic C: Classroom setup xi

Topic D: Support xiii

Topic A: Introduction to buying and selling 1-2 Topic B: The sales model 1-8 Unit summary: Introduction to selling 1-10

Topic A: Organization 2-2 Topic B: Communication 2-11 Topic C: Personal motivation 2-17 Unit summary: Sales skills 2-24

Topic A: The selling process 3-2 Topic B: The buying process 3-8 Unit summary: The sales process 3-12

Prospecting 4-1

Topic A: Introduction to prospecting 4-2 Topic B: Prospecting methods 4-8 Topic C: Phone prospecting 4-14 Unit summary: Prospecting 4-16

Qualifying 5-1

Topic A: The qualifying process 5-2 Topic B: The questioning process 5-8 Unit summary: Qualifying 5-19

Presenting 6-1

Topic A: Selling process and strategy 6-2 Topic B: Buyer types 6-7 Topic C: Presenting to buyers 6-12 Unit summary: Presenting 6-18

Completing 7-1

Topic A: Negotiating 7-2 Topic B: Closing the sale 7-5 Unit summary: Completing 7-8

Servicing 8-1

Topic A: Customer service 8-2 Topic B: Service as a process 8-4 Unit summary: Servicing 8-7

IE

W

NOT FOR PRINTING OR INSTRUCTIONAL USE

Using what you’ve learned 9-1

Topic A: The implementation phase 9-2Topic B: Resources and tools 9-7Unit summary: Using what you’ve learned 9-9

Topic A: Course summary S-2Topic B: Continued learning after class S-4

Glossary G-1 Index I-1

expectations for the course

C Set up a classroom to teach this course

D Get support for setting up and teaching this course

Topic A: About the manual

I LT Se rie s philosophy

Our goal is to make you, the instructor, as successful as possible To that end, our training manuals facilitate students’ learning by providing structured interaction with the software itself While we provide text to help you explain difficult concepts, the hands-on activities are the focus of our courses Leading the students through these activities will teach the skills and concepts effectively

We believe strongly in the instructor-led class For many students, having a thinking, feeling instructor in front of them will always be the most comfortable way to learn

Because the students’ focus should be on you, our manuals are designed and written to facilitate your interaction with the students, and not to call attention to manuals themselves

We believe in the basic approach of setting expectations, then teaching, and providing summary and review afterwards For this reason, lessons begin with objectives and end with summaries We also provide overall course objectives and a course summary to provide both an introduction to and closure on the entire course

Our goal is your success We encourage your feedback in helping us to continually improve our manuals to meet your needs

Introduction v

Units

Units are the largest structural component of the actual course content A unit begins with a title page that lists objectives for each major subdivision, or topic, within the unit Within each topic, conceptual and explanatory information alternates with hands-on activities Units conclude with a summary comprising one paragraph for each topic, and

an independent practice activity that gives students an opportunity to practice the skills they’ve learned

The conceptual information takes the form of text paragraphs, exhibits, lists, and tables The activities contain various types of questions, answers, activities, and other

information Throughout a unit, instructor notes are found in the left margin

Each unit title page lists an estimated time for completion, but you have a great deal of control over how long it will actually take to get through the material Many of the activities have questions or scenarios designed to stimulate discussion You can adjust the amount of time a unit takes by deciding how many students you ask to respond and how long you allow a discussion to continue

Course summary

This section provides a text summary of the entire course It is useful for providing closure at the end of the course The course summary also indicates the next course in this series, if there is one, and lists additional resources students might find useful as they continue to learn about the software

Manual conventions

We’ve tried to keep the number of elements and the types of formatting to a minimum

in the manuals We think this aids in clarity and makes the manuals more classically elegant looking But there are some conventions and icons you should know about

Item Description

Instructor note/icon

Italic text In conceptual text, indicates a new term or feature

Bold text In unit summaries, indicates a key term or concept In

an independent practice activity, indicates an explicit item that you select, choose, or type

Instructor notes In the left margin, provide tips, hints, and warnings for

Setup icon Setup notes provide a realistic business context for

instructors to share with students, or indicate additional setup steps required for the current activity

Projector icon Projector notes indicate that there is a PowerPoint slide

for the adjacent content

Introduction vii

Activities

The activities are the most important parts of our manuals They are usually divided into two columns, with questions or concepts on the left and answers and explanations on the right To the far left, instructor notes provide tips, warnings, setups, and other information for the instructor only Here’s a sample:

Do it! A-1: Identifying the brainstorming process

Question and answer

1 Sequence the steps for brainstorming

Have students arrange the

brainstorming steps in the

correct order Begin generating ideas Select the purpose

Select the purpose Organize the session

Organize the session Review the rules

Ask questions and clarity ideas Begin generating ideas

Review the rules Ask questions and clarity ideas

so it is not necessary to have PowerPoint installed on your computer

The ILT Series PowerPoint add-in

The CD also contains a PowerPoint add-in that enables you to do two things:

• Create slide notes for the class

• Display a control panel for the Flash movies embedded in the presentations

To load the PowerPoint add-in:

1 Copy the Course_ILT.ppa file to a convenient location on your hard drive

2 Start PowerPoint

3 Choose Tools, Macro, Security to open the Security dialog box On the Security Level tab, select Medium (if necessary), and then click OK

4 Choose Tools, Add-Ins to open the Add-Ins dialog box Then, click Add New

5 Browse to and select the Course_ILT.ppa file, and then click OK A message box will appear, warning you that macros can contain viruses

6 Click Enable Macros The ILT Series add-in should now appear in the Available Add-Ins list (in the Add-Ins dialog box) The “x” in front of Course_ILT indicates that the add-in is loaded

7 Click Close to close the Add-Ins dialog box

After you complete this procedure, a new toolbar will be available at the top of the PowerPoint window This toolbar contains a single button labeled “Create SlideNotes.”

Click this button to generate slide-notes files in both text (.txt) and Excel (.xls) format

By default, these files will be saved to the folder that contains the presentation If the PowerPoint file is on a CD-ROM or in some other location to which the slide-notes files cannot be saved, you will be prompted to save the presentation to your hard drive and try again

When you run a presentation and come to a slide that contains a Flash movie, you will see a small control panel in the lower-left corner of the screen You can use this panel to start, stop, and rewind the movie, or to play it again

Introduction ix

Topic B: Setting student expectations

Properly setting students’ expectations is essential to your success This topic will help you do that by providing:

• A description of the target student

• A list of the objectives for the course

• A skills assessment for the course

Course objectives

You should share these overall course objectives with your students at the beginning of the course This will give the students an idea about what to expect, and it will help you identify students who might be misplaced Students are considered misplaced when they lack the prerequisite knowledge or when they already know most of the subject matter

to be covered

After completing this course, students will know how to:

• Discuss the history of selling, the barriers to making a sale, and various selling methods

• Identify the core sales skills of organization, communication, and motivation

• Define the sales model and understand the details of the buying and selling processes

• Discuss prospecting methods, define their target markets and customers, and develop a cold-calling script

• Qualify prospects by using effective listening and questioning techniques

• Discuss positioning, identify buyer types, write an elevator pitch to prepare for presenting a sales pitch, and handle objections

• Negotiate to work toward an agreement and close the sale

• Identify the customer service process and techniques, such as Responsive CARE, that can be used to build customer loyalty

• Work toward improving sales skills by using the 21-day habit, writing down

satori moments, and committing to being a better sales representative

Skills inventory

Use the following form to gauge students’ skill levels entering the class (students have copies in the introductions of their student manuals) For each skill listed, have students rate their familiarity from 1 to 5, with five being the most familiar Emphasize that this

is not a test Rather, it is intended to provide students with an idea of where they’re starting from at the beginning of class If a student is wholly unfamiliar with all the skills, he or she might not be ready for the class A student who seems to understand all

of the skills, on the other hand, might need to move on to the next course in the series

Identifying the stages of the sales process Identifying the stages of the buying process Defining your target market and customer

Identifying the buyer’s decision-making criteria

Writing and delivering an elevator pitch

Providing customer service with Responsive CARE Using the 21-day technique to improve your skills

Introduction xi

Topic C: Classroom setup

In addition to a manual, each student should be provided with a pad and pens or pencils for jotting down notes and questions Students should have a comfortable place to sit and ample table space to spread out their materials

Computer requirements

If you wish to use the PowerPoint presentations, you’ll need the following:

• A keyboard and a mouse

• A Pentium-class or better computer

• Windows NT, 2000, or XP operating system

• A minimum of 32 MB of RAM, depending on your operating system

• A CD-ROM drive

• A Super VGA monitor

• An overhead monitor projector

• PowerPoint 2000 or later, or PowerPoint viewer

First-time setup instructions

The first time you teach this course, you will need to perform the following steps:

1 Download the PowerPoint presentations for the course to your computer

a Connect to www.axzopress.com

b Under Downloads, click Instructor-Led Training

c Browse the subject categories to locate your course

2 Download the data for the course to your computer

a Connect to www.axzopress.com

b Under Downloads, click Instructor-Led Training

c Browse the subject categories to locate your course

3 Print data files to give to students as handouts

CertBlaster pre- and post-assessment software

CertBlaster pre- and post-assessment software is available for this course To download and install this free software, complete the following steps:

1 Connect to www.axzopress.com

2 Click the link for Sales

3 Save the EXE file to a folder on your hard drive (Note: If you skip this step, the CertBlaster software will not install correctly.)

4 Click Start and choose Run

5 Click Browse and then navigate to the folder that contains the EXE file

6 Select the EXE file and click Open

7 Click OK and follow the on-screen instructions When prompted for the

password, enter c_sales

B Describe the sales process

Topic A: Introduction to buying and selling

“The outstanding leaders of every age are those who set up their own quotas and constantly exceed them.”

—Thomas J Watson (1874-1956), Chairman of IBM

Explanation Successful sales professionals understand that the definition of selling is uncovering a

prospect’s needs and then positioning the product or service as the best selection to fulfill that need Why do people buy? People buy to fill a need Think about the last car you bought Why did you buy that particular car? You wanted something specific—

perhaps great mileage, good visibility, comfortable seats, or space for your spouse, four kids, a dog, luggage, and skis

Barriers

The road to sales success is not an easy one, but it can be navigated if you’re armed with the proper sales tools Along this bumpy path, what types of obstacles can you expect to run into?

Internal barriers

Besides the external factors working against you, there will be internal barriers as well

Salespeople who take the word “no” too personally will have a difficult time making that next sales call You have to remember that when prospects tell you “no,” they are not saying “no” to you; they are saying “no” to your company’s product or service

To keep yourself on an even keel and break through your internal barriers, you might

want to learn how to recognize and correct various kinds of cognitive distortions (faulty

ways of thinking) Popularized by cognitive psychologists such as Albert Ellis and Aaron T Beck, these distortions include all-or-nothing thinking, overgeneralizing, mental filtering, and catastrophizing, among others

All-or-nothing thinking is viewing situations or people as all good or all bad—black or

white, with no gray areas Overgeneralizing is assuming that because something

happened once, it will always happen; or if it hasn’t happened yet, it will never happen

Introduction to selling 1–3

(For example, “I always mess up my presentations” or “I never get past the

gatekeeper.”) Mental filtering is focusing on one negative detail and dwelling on it so

much that you view the entire situation as negative; you’ve filtered out any positive information (You stumble a little when responding to one objection, so you decide that your presentation “bombed”—even though the rest of it went smoothly.)

Catastrophizing is imagining the worst possible outcome of a situation and then having

an emotional reaction to that dire outcome

Let’s look at how a salesperson might “catastrophize” a situation—anticipating all the things that are going to go wrong and then behaving as if those imaginings are real1 For example:

• “She will never buy my service when she is already buying from my competitor.”

• “He is an executive and will probably make me look inferior in the presentation.”

• “She will never let me set an appointment with the VP because I have not met her in person.”

Don’t let yourself fall into these traps For example, if you hear yourself saying

“always” or “never” (overgeneralizing), you can correct yourself: “My presentation didn’t go well today, but I usually do give effective presentations.” If you find yourself assuming the worst and imagining disastrous results (catastrophizing), you can review the facts and remind yourself that you don’t really know how things will turn out

“She’s buying from my competitor now, but she might decide that my service offers a better value and start buying from me.” Being a salesperson is challenging enough;

don’t let your own faulty thinking make your job more difficult

Why do people buy?

To understand the psychology of selling, you need to understand the situation from the customer’s point of view In other words, you need to understand the psychology of buying Once you understand how a person makes a purchasing decision, you can better understand how to position and sell your product or service

At a primitive level, people buy for only two reasons: to avoid pain or to increase happiness However, having reasons for making a purchase does not necessarily make the decision process any easier

Buying is much more than agreeing to make a payment in exchange for a product or service Reaching that agreement might involve a lengthy decision-making process

How does a buyer make a decision to buy? What options does the buyer weigh? What criteria will the buyer use to make the decision?

Think about all the options you weigh when you’re making a purchasing decision What types of data do you consider before making a selection?

If you were going to purchase a new DVD player, you might investigate the following kinds of data before considering a purchase

Buying factors Description Quality Is the DVD player well built, and will it work reliably? You might consider brand

names and their reputations, perceived quality based on higher prices, and the place of purchase

Price Is it within your budget? Is the price fair?

Support Does it have a warranty? Is support service local?

Features Does it have the features you require? (Surround sound, resolution requirements,

TV or sound system compatibility, etc.) Delivery Does it have to be ordered and shipped? Can you take it home today?

A salesperson must consider the buyer’s thought processes and emotions It has been said that all purchases, at some level, are made with emotion If buyers can envision the future with your product or service eliminating the need they have today, they will feel a sense of happiness, accomplishment, relief, pride, and even joy It’s up to the

salesperson to help create that vision

Perceptions

Successful sales professionals empathize with their customers and focus on their perceptions It can be said that in sales, perception is reality If your company has the highest quality rating from J.D Power and Associates, but your customer does not know that, the customer might have a negative perception of your organization—especially if that person just heard about one bad experience that a friend or colleague had with your company

Perceptions must be uncovered and then corrected, if necessary Customer perceptions can be managed through a non-confrontational presentation of the facts Perceptions are often weak because customers are left alone to develop their own opinions with no assistance from you Communicating your message on a regular basis can help to align customers’ perceptions with your company’s

Just as information available to your customers can change on a daily basis, so can their perceptions Make certain that you check in with your customers periodically:

• Request their feedback on a regular basis

• Use regular communications and presentations of factual data to maintain alignment

• Do not use negative comments to taint the customer’s perception of your competition

Unsuccessful salespeople will lose credibility when they use negative selling techniques

to try to win business In other words, the salespeople might badmouth the competition

in the hope that negative information might sway the prospect Although the prospect’s perception of that competitor might be slightly changed or questioned, this can backfire and just reflect badly on you The salesperson who regularly speaks poorly of the competition will lose credibility with prospects Ultimately this strategy does not pay

Introduction to selling 1–5

History of selling

Over the past 200 years, selling as a profession has undeniably matured From the days

of the Wild West snake-oil salesmen to the door-to-door salesmen of the 1940s and

’50s, and then to the consulting salesperson of the 21st century, the profession has definitely changed It’s important to be familiar with the origins and phases of selling so that you can understand why techniques that worked in the past will not work now In true Darwinian fashion, as a professional salesperson, if you don’t adapt your selling skills to your changing environment, you will be eliminated from the herd The following table describes the different types of selling used in recent American history

Time period

Type of selling

Assets required Description

1920 to 1950 Door-to-door

distribution

Persistence Friendliness Reliability

Purchasing options were not plentiful, and many manufacturers used door-to-door salesmen as their primary distribution channel

Without much competition, selling was more a matter of establishing a territory for distributing products

1950 to 1965 Feature Product knowledge

Persistence Ability to educate

Technology was beginning to introduce products that were designed to simplify our lives One problem was that customers did not know how to use the products Salespeople had

to educate buyers about the products’

capabilities and proper use

1960 to 1975 Benefit Product knowledge

Listening skills Some empathy

After buyers became more educated about products and services, and consumer choices increased, salespeople found themselves discussing the benefits of the features, as opposed to showing the technology itself

1970 to 1995 Relationship Listening skills

Empathy Communication skills

Organization skills Amiability

Relationship selling became prominent when competing products and services were comparable Companies differentiated themselves in the marketplace by forming stronger relationships between the buyers and sellers Relationship selling is a strategic approach to the individuals that a salesperson will interact with to complete a sale It’s also the first sales methodology that truly focused

on the customers’ needs and provided solutions for them

You can point out that

this is the most common

type of selling today

1990 to Present

Consultative Listening skills

Business acumen Questioning skills Negotiating skills

In today’s sales environment, customers often have complex problems that require complex solutions A salesperson who is selling a single device is expected to understand how the customer plans to use that device to solve a larger problem In addition, customers expect salespeople to understand how buying decisions are made to support the business and ultimately increase revenues, increase profits, or decrease costs Consultative selling is based entirely on understanding the complex needs of a customer, understanding how those needs affect the entire business, and knowing what type of solution can address those needs

Features, Advantages, and Benefits (FABs)

Throughout the 1960s and most of the 1970s, successful salespeople realized that selling products based on their features was no longer as effective as it once was As a result, salespeople began to focus more on how the customer would benefit from using their products or services With that, benefit selling was born

Although benefit selling is no longer as prominent or effective in today’s marketplace, it can still provide an effective means to guide a conversation Conversations that move to

a technical discussion about the feature set might be educational, but they are not an effective selling technique

Benefit selling involves three components: features, advantages, and benefits These are commonly referred to as “FABs.”

• A feature is a physical characteristic of a product

• An advantage is the performance characteristic that the feature provides

• A benefit is the favorable result the buyer receives because of the advantage

The following table provides three examples of benefit selling

This golf ball has a new titanium core

It will provide an extra 10 yards on your drives

You can lower your overall score

This computer server has a new dual power unit

It provides consistent electricity even if the first power unit dies

Your Web site will not be taken offline by a power failure

This home has a efficiency roof and insulation beyond building-code requirements

high-It will take less energy to keep your house cool in the summer

Ultimately, you will save money on your electric bills

Extended home warranty

Provides for fixing all components for the next three years

Involves less stress for you and saves you money

Have students fill in the

blanks If time permits,

have students use their

own products or

services

Home estate agency (selling houses)

real-Home assessment and neighborhood economic analysis

Helps you price your home competitively for the current market

Pharmaceutical drugs

Topic B: The sales model

Explanation Sales success requires elements of professionalism that will include both skills and

tools At the core of a salesperson’s skill set is the knowledge of their product or service The next layer of skills, as illustrated in Exhibit 1-1, can be divided into the following areas: communication, organization, and motivation Skills in these three categories must be sharpened to the point that each becomes a core strength

Exhibit 1-1: The sales model developed by iSpeak

Product and service knowledge

In today’s professional selling environment, where consultative selling is the norm, customers will expect their sales representatives to be experts in their fields Prospects want to view a sales representative as someone who can answer their questions and provide thoughtful solutions for their needs

In this environment, it becomes critical that all sales professionals be well versed in their own products or services In technical sales, many individuals who begin their careers as product engineers make successful transitions to sales careers, leveraging their tremendous product and service knowledge These individuals did not become successful on product knowledge alone, but it was definitely an admired aspect of the salesperson’s capabilities

Make sure that you have a solid understanding of the products and services your company has to offer Although many technical sales departments partner a salesperson with a technical engineer as they pursue business, it can only help if the salesperson has

a solid understanding of what can and cannot be delivered P R

The sales process

Surrounding the product knowledge and three skill sets is the entire sales process Your understanding of this process can help you properly navigate an opportunity to close a sale, regardless of the type of product or service you’re selling

As shown in Exhibit 1-1, the sales process consists of the following phases:

Do it! B-2: Discussing the sales model

Questions and answers

1 What is the core skill set that every salesperson needs to have?

Solid knowledge of the products and services they are selling

2 What are the three categories that a salesperson’s primary skills can fall into?

Organization, communication, and motivation

3 What are the five phases of the sales process?

Unit summary: Introduction to selling

Topic A In this topic, you learned about the barriers to making a sale You also discussed a brief

history of selling and the different types of selling that have been used through the

years

Topic B In this topic, you learned about the sales model that was developed by iSpeak At the

core, salespeople need to have strong knowledge of their products or services Then, salespeople need three basic skill sets: organization, communication, and motivation

The sales model’s phases are prospecting, qualifying, presenting, completing, and servicing

3 What five buying factors affect the final purchasing decision?

Quality, price, support, features, and delivery

4 Which of the following type of selling was a result of technology being added to products?

6 What does the abbreviation FAB represent?

Features, Advantages, Benefits

7 What are the five phases of the sales process?