Marketing chapter 8a carefully select which sales presentation method to use

Main Topics The Tree of Business Life: Presentation  Sales Presentation Strategy  Sales Presentation Methods–Select One Carefully  The Group Presentation  Negotiating So Everyone W

Carefully Select Which Sales Presentation Method to Use

McGraw-Hill/Irwin

ABC’s of Selling, 10/e

Copyright © 2009 by The McGraw-Hill Companies, Inc All rights reserved

Main Topics

 The Tree of Business Life: Presentation

 Sales Presentation Strategy

 Sales Presentation Methods–Select One Carefully

 The Group Presentation

 Negotiating So Everyone Wins

 Sales Presentations Go High-Tech

 Select the Presentation Method, Then the Approach

 Let’s Review before Moving On!

Sales Presentation Methods

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 Master the art of creating effective sales presentations

 Have fun presenting your product

 Select your presentation method based on:

Prior knowledge of customer

Sales call objective

Customer benefit plan

(3) Approach - (4) Presentation

The Third Step in the Sales Process (Approach)

is the First Step in the Sales Presentation

The Sales Presentation

 Completely and clearly explains all aspects of the salesperson’s proposition as it

relates to a buyer’s needs

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There are Several Sales Presentation Methods and You Must Select One

According to Your:

 Prior knowledge of the customer

 Sales call objective

 Customer benefit plan

The Sales Process

 A sequence of actions taken by the salesperson which leads toward the customer taking a desired action and ends with follow-up to ensure purchase satisfaction

Exhibit 8-1: The Third Step in the Sales Process is the First Step in the Sales

Presentation

 The sales presentation method determines how you open your

presentation

 Salespeople face numerous situations:

 Salesperson to buyer

 Salesperson to buyer group

 Sales team to buyer group

 Conference selling

 Seminar selling

Sales Presentation Strategy

Sales Presentation Methods–Select One Carefully

 The sales presentation involves a persuasive vocal and visual

explanation of a business proposition.

Sales Presentation Methods–Select One Carefully

 The four sales presentation methods are:

1) Memorized

2) Formula

3) Need-satisfaction

4) Problem-solution

 The basic difference between the four methods is the percentage of the

conversation controlled by the salesperson

Sales Presentation Methods—

Select One Carefully

1. The Memorized Sales Presentation (canned)

 Salesperson’s role is to develop initial stimulus into an affirmative response to an eventual purchase

request.

2. The Formula Presentation (persuasive selling)

 The salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction (AIDA) Controls conversation during sales talk; especially at the beginning.

Sales Presentation Methods—

Select One Carefully cont…

 Designed as a flexible, interactive sales presentation, yet the most challenging and creative form of selling

 Three Phases:

1.Need-development phase

2.Need-awareness phase

3.Need-fulfillment phase

Sales Presentation Methods—

Select One Carefully cont…

 Selling highly complex or technical products

 It may take several sales calls to develop a detailed analysis

 A flexible, customized approach to involving an in-depth study of a prospect’s needs

Exhibit 8-2: The Structure of Sales Presentations

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Sales Presentation Methods—

Select One Carefully

Based on one of two assumptions:

 The prospect’s needs may be stimulated by direct exposure to the product through the sales presentation.

 The prospect’s needs have already been stimulated because the prospect has made the effort to seek

out the product.

 National Cash Register Co (NCR)

Exhibit 8-3: Participation Time by Customer and Salesperson During a Memorized Sales

Presentation

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Why Choose the Memorized (Canned) Sales Presentation Method?

 Because it:

 Ensures the salesperson gives a well-planned presentation

 Ensures all of the company’s salespeople discuss the same information

 Both aids and lends confidence to the inexperienced salesperson

 It is effective when:

 Selling time is short, as in door-to-door or telephone selling

 The product type is non-technical – such as books, cooking utensils, or cosmetics

 Because it:

 Presents FABs that may not be important to the buyer

 Allows for little prospect participation

 Is impractical to use when selling technical products that require prospect input and discussion

 Requires the salesperson to proceed quickly through the sales presentation to the close, resulting in several closes or requests for the order, which may be interpreted by the prospect as high pressure selling

 Interruptions – salesperson may get off-track; forget

Why Not to Choose the Memorized (Canned) Sales Presentation

Method

Exhibit 8-4: Dyno Electric Cart Memorized Presentation

Exhibit 8-4: Dyno Electric Cart Memorized Presentation, cont

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Sales Presentation Methods—

Select One Carefully

 Often referred to as the persuasive selling presentation

 Salesperson follows a less structured, general outline allowing more flexibility and less direction

 AIDA – AIDCA

 Straight Rebuy situations

 The SmithKline Beecham products example: “The 10-step Productive Retail Sales Call”

Exhibit 8-5: Participation Time by a Customer and Salesperson During a Formula

Sales Presentation

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The 10-Step Productive Retail Sales Call

9 Records and reports

10 Analyze the call

The 10-Step Productive Retail Sales Call

Exhibit 8-6: The 10-Step Productive Retail Sales Call, cont

Exhibit 8-7: A Formula Approach Sales Presentation

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Why Choose the Formula Sales Presentation Method?

 Because you:

 Are contacting similar prospects in similar situations

 Know something about the prospect

 Have called on the prospect in the past

 Want to ensure all information is presented logically

 Want to have reasonable amount of buyer-seller interaction

Why Choose the Formula Sales Presentation Method?, cont…

 Because it allows for smooth handling of anticipated questions and objections

 Examples of product types that work well with this method are:

 Consumer goods

 Pharmaceutical goods

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Why Not to Choose the Formula Sales Presentation Method?

 Because you:

 Do not know the prospect’s needs

 See a need for the prospect to talk more

 Have a complex selling situation such as:

Selling a technical product

Selling to a group

Sales Presentation Methods—

Select One Carefully

 The most challenging and creative form of selling

 Interactive sales presentation

 Need-Satisfaction Format

Exhibit 8-8: Participation Time by Customer and Salesperson During Need-Satisfaction and

Problem-Solution Sales Presentations

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Exhibit 8-9: A Need-Satisfaction Presentation

Exhibit 8-9: A Need-Satisfaction Presentation, cont

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Why to Choose the Need-Satisfaction Sales Presentation Method

 Need a flexible, interactive sales presentation

 Need to uncover needs by asking questions

 Need the prospect to talk about his needs

 Use this method the first time you call on a prospect.

 Should you have to come back a second time, you would use the formula sales presentation method.

Why Not to Choose the Need-Satisfaction Sales Presentation Method

 Because you:

 Need more control over the conversation

 Feel should not ask too many questions

 Are new to the sales profession

Sales Presentation Methods—

Select One Carefully

 Flexible, customized approach involving an in-depth study of a prospect’s needs

 May require several sales calls to develop a detailed analysis

 Usually consists of six steps

The Problem-Solution Presentation’s Six Steps

Step 1 - Convincing the prospect to allow the salesperson to conduct the analysis

Step 2 - Making the actual analysis

Step 3 - Agreeing on the problems and determining that the buyer wants to solve the problem

Step 4 - Preparing the proposal for a solution to the prospect’s needs

Step 5 - Preparing the sales presentation based on the analysis and proposal

Step 6 - Making the sales presentation

8-41 Exhibit 8-8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-

Solution Sales Presentations, cont…

Why to Choose the Problem-Solution Sales Presentation

Method

 Because you:

 Are selling highly complex or technical products

 Are required to make several sales calls to develop a detailed in-depth analysis of a prospect’s needs

 Need a flexible, customized presentation based on findings

What Is the Best Presentation Method?

What Is the Best Presentation Method?

Exhibit 8-10: Important Characteristics of Types of Sales Calls

Characteristics Memorized (Structured) Formula (Semistructured) Need-Satisfaction (Unstructured) Problem-Solution (Customized)

Relationship Transactional Relationship Partnering Partnering Partnering

When Used New customer door-to- Repeat customer New customer, New customer;

door; telesales new opportunity new opportunity

Opening Canned Reminder of past status Questions Request for study

Presentation Time Minutes Half hour(s) Day(s) Week(s)

Multiple Calls? No Sometimes Frequently Always

Type of None Several Variables Multiple Variables ComplexScript

Negotiations

Flexibility None Modest No script No script

Assumed Already established, Already established Not established, Not known

Interest Level or can be generated or not known

Prior Contact Not usually Usually Not necessarily Not necessarily

with Buyer?

Type Product Trivial; simple Simple; previously sold Industrial/Technical Complex

Sample Product Vegetable dicer, Premium cable channel Home entertainment center, Internet network,

warehouse system vacuum cleaner, consumer goods, cars computer, real estate company insurance

cosmetics

Salary ($) 30-50K 40-70K 50-90K 80-200K

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The Group Presentation

 Either you or your team presents the proposal to a group of decision makers

 The flexibility of the presentation depends on size:

 The larger the group, the more structured your presentation

 You can structure the presentation and provide a question-and-answer period at the end or

during the presentation

The Group Presentation, cont…

 Give a proper introduction

 State your name, company, and proposal

 Establish Credibility

 Give a brief history of your company

 Provide an Account List

 Have copies of an account list available

 State your Competitive Advantages

 Tell the group where your company stands relative to the competition

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The Group Presentation, cont…

 Give Quality Assurances and Qualifications

 State Guarantees in the beginning

 Cater to the Groups Behavioral Style

 Determine the overall dominant style in order to hold their attention

 Get people involved

 The proposal

 No prices

 Summarize Benefits

Negotiating So Everyone Wins

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Negotiating So Everyone Wins

 There are many negotiating

Negotiating So Everyone Wins, cont…

 Phases of Negotiation

 Planning- know how your company compares with the competition.

 Meeting- build a relationship that eases the negotiation process

 Studying- look for benefits you can provide.

 Proposing- what you do in the presentation sets the stage for what may come later

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Sales Presentations Go High Tech

Select the Presentation Method,

Then the Approach

 Know which method to use before developing the presentation

 Plan the presentation

 Select the approach/opening

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Selling Process Buyer’s Mental Steps

Prospecting Preapproach

Follow-up & Service

Approach Presentation Trial Close Determine Objections Meet Objections

Desire

Conviction

Present Marketing Plan

Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty

Explain Business Prop

List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis

Suggest Purchase

Product, Quantity, Features, Delivery, Installation, Price

Money Authority Desire

Present Marketing Plan

Explain Business Proposition

Exhibit 8-11:The Parallel Dimensions of Selling

Let’s Review Before Moving On!

 It’s important to know that:

 Parallel dimensions interact

The Golden Rule Makes Sense

 Its use sets you apart from all of the other salespeople who only want to make a sale and a fast dollar

 Treat your prospects and customers as your business neighbors

Summary of Major Selling Issues

 You must master the art of giving a good sales presentation

 The sales presentation method selected should be based on prior knowledge of the

customer, your sales call objective, and your customer benefit plan

 Show that you have a right to present your product because it has key benefits for the prospect

 Many different presentation methods are available

 There is no one best method; each one must be tailored to meet the particular

characteristics of a specific selling situation or environment

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