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8/28 Personal Selling - Perceptions ❖ Human-driven interaction between and within individuals or organizations ➢ Creating value ■ Value is intrinsic (things have a higher price for the same components) ■ Realization: value is extrinsic to the product itself ■ Value = benefits received - price + time/effort ■ Usually, value and benefits outweigh price when making a business decision ■ You must understand the customer’s perception of value (what they desire) Role of Salespeople in a Business ❖ Sales people account for 40 - 45% of value in company ❖ Boundary Spanner 8/31 Client Relationship Manager ❖ Not only to see if there is opportunity to sell, but to offer service to customers Account Team Manager ❖ Team selling is better than selling alone Supply Chain Logistics and Channel Manager ❖ Key managers who work with different partners and vendors Professional Selling ❖ Marketing tool that focuses on interpersonal interactions between buyers and sellers ➢ To initiate, develop and enhance customer relationship ❖ Trust based relationship selling ➢ Requires salespeople to earn trust, meet customer needs, and contribute to the creation, communication, and delivery of customer value Selling and Distribution Channels ❖ Trade sales’ people, employed by manufacturers to sell to distributors ❖ Distributor salespeople, sell products made by diff. manufacturers to businesses Stimulus Response Selling ❖ If a customer says yes 7 times in a row they’re more likely to say yes to your service Mental States Selling or Formula Approach ❖ Assumes buyers can be led thru a series of mental state sin the buying process ❖ AIDA: Mental States ➢ Attention ➢ Interest ➢ Desire ➢ Action Need Satisfaction ❖ Assumes that the customer is buying to satisfy a particular need or set of needs ➢ Flaw: the seller doesn’t know the budget, method does not delve deep Problem Solving Selling

❖ Extension of need satisfaction selling Consultative Selling ❖ Trust-Based Sales Process ❖ Ethics ❖ Perspectives of ethics can vary from country to country and industry to industry Customer Value ❖ Customers’ perception of what they obtain in exchange for what they have to give up Sales Dialogue with a Prospective Customer ❖ Series of conversations between buyers and sellers to forge a relationship for: ➢ Determining the need for further attention ➢ Clarifying the situation and buying processes ➢ Discovering unique needs ➢ Determining priorities ➢ Communicating how the sales organization can create and deliver value ➢ Negotiating a business deal and earning a commitment from the customer ➢ Making the customer aware of additional opportunities to increase the value received ➢ Assessing sales organization performance to ensure customer satisfaction Evolution of Professional Selling ❖ Sales professionalism: customer-oriented approach ➢ Uses truthful, non-manipulative tactics to satisfy long-term needs of the customer and the selling firm ❖ Meets of professional criteria of: ➢ Specialized knowledge ➢ Contribution to society ➢ Define culture and organization of colleagues ➢ Unique set of skills Contributions of Personal Selling ❖ Salespeople help in: ➢ Stimulating the economy ➢ Diffusion of innovation: distribution of new products, services, and ideas to the members of society ➢ Generating revenue and providing feedback through research ➢ Maintaining long-term relationships with customers Alternative Personal Selling Approaches ❖ Adaptive selling: ability of salespeople to change their sales messages based on various customer situations ❖ Stimulus response

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Mental states Need satisfaction Problem solving Consultative selling

Stimulus Response Selling ❖ Various stimuli elicit predictable responses ❖ Sales person provides stimuli -> buyer responses sought -> continue process until purchase decision

Mental States Selling or Formula Approach ❖ Assumes that the buyers can be led through a series of mental states in the buying process ❖ AIDA: mental states ➢ Attention ➢ Interest ➢ Desire ➢ Action Need Satisfaction Selling ❖ Need satisfaction: assumes that the customer is buying to satisfy a particular need or set of needs ➢ Uncover and confirm buyer needs -> present offering to satisfy buyer needs -> continue selling until purchase decision Problem Solving Selling ❖ Extensive of need satisfaction selling Consultative Selling ❖ Helping customers attain strategic goals by using products, services, and expertise of the selling organization ❖ Role of salesperson ➢ Strategic orchestrator: Arranges the use of the organization’s resources to satisfy the customer ➢ business consultant: Uses external and internal sources to gather expertise on the customer's business ➢ Long-term ally: supports the customer even without the possibility of an immediate sale 9/7 ❖ Customers strive for convenience ❖ You must know buyer’s needs to sell something ❖ People buy to:

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➢ Satisfy need or desire ➢ Solve problem ➢ Satisfy impulse Manufacturers buy products to satisfy a quality desire Resellers buy products for turnover/profit Government buys products for price (low value) Derived demand - demand based on what the customer sells Organizational Buying Process ➢ Recognition of need ➢ Decide product type needed ➢ Detailed specifications ➢ Search for qualified suppliers ➢ Analysis of proposals ➢ Evaluation of proposals and selection ➢ Order placement and receipt ➢ Evaluation of product performance Buyers want you to know everything about their needs Shaped by experiences with previous customers Focus on what will happen after the sale Provide insight for future (for buyer) Must understand buyer’s needs Salespeople must identify a “needs gap” ➢ Actual product production, desired product production Multiattribute Model - used to differentiate suppliers and production companies Must exceed buyers’ expectations ➢ *Psychological attributes are good tools New Task - first time; buying Straight rebuy - re-buying a product Modified rebuy - rebuying with new interests 9/11 Noise - anything “self-talk” that interferes with communication ➢ Present in encoding, decoding, and feedback stages of conversation Be aware of speed of speech as well as how loud you are speaking about different points Reactance - mental wall built by people to cope with persuasion Encoding - gathering thoughts into words Decoding (interpreting received message), then feedback (info given to salesperson indicating how he or she is performing) Salesperson should use short words and phrases and avoid slang, trite words, off-color language Salesperson should be listening about 80% of the time, talk no more than 20% ➢ Active listening, listen from speaker’s POV and read body language, repeat information to clarify info ■ Positive body language signals: uncrossed arms and legs, leaning

forward, smiling, nodding, contemplative posture, eye contact, excited reaction ■ Negative body language signals: crossed arms or legs, leaning backward or away from you, furrowed brow, pursed lips, shaking head, distracted, fidgeting, little eye contact ❖ Understanding the character of someone at the beginning of relationship is important (first impression) ❖ If customer shows disinterest, ask a question ❖ Incongruency - verbal/nonverbal don’t match, encourage customer to be frank ❖ Sequence of sales ➢ Rapport-building - showing interest in company, asking beneficial, engaging questions ■ Highly specific, personal questions ■ Unique questions are good to have customers caught off-guard → honesty ■ Appropriate questions are highly beneficial ➢ Asking questions - helps with direction of conversation; helps with engagement of conversation ➢ Feature-Benefit Sequence - be aware of words with different meanings; draw a set of words to best help present features of product or service) ➢ Use of response checks 9/14 **In product plan outline, be sure to include any challenges in industry E.g. retail industry: competitive pressure from online shops ❖ Types of business relationships ➢ Transactional Selling/Buyers ■ Between two people ➢ Trust-based Selling/Buyers ■ May need to involve other people ➢ Enterprise ■ Multiple people involved in transaction ❖ Success in adaptive selling req’s knowledge of product, company, services, and competitor’s products ➢ Customer relationship management → valuable knowledge ■ Allows a company to take feedback from customer action into account for business decisions ■ Test customer’s assessments ■ Concentrate on customer’s behavior and reactions ➢ Social Styles → preferred methods of communication ■ Analyticals like facts, statistics ■ Amiables give importance to close rel., make decisions slowly, avoid risks, change opinions reluctantly, stress products benefits in terms of effects on satisf. of employee ■ Drivers take risks, fact-based decisions, swift and efficient, great desire to

get ahead in their companies Expressives focus on future by directing their time and effort toward achieving vision, personal opinion-based decisions, change minds easily, describe how products will help person personally 9/18 ID who is a good fit for what you have to sell Marketing (branding) vs. Sales (selling) Begin with locating a lead (potential) ➢ Potential prospect that may or may not have what it takes to be a true prospect ➢ A more qualified lead is a prospect The Sales funnel ➢ Leads → Prospects → Customers ➢ A good prospect is made up of ■ Prospect has a want or a need ■ Prospect has ability to pay ■ Prospect has the authority to buy ■ Prospect can be approached favorably ■ Determining factors ● Volume (how much they are planning to spend) ● Geographic (some companies only sell in the East, South, etc) ● Timing of purchase ➢ Good leads include: ■ Satisfied customer (may refer others) ■ Endless chain (even though people may or may not purchase, they may still refer you) ■ Networking (personal relationships formed to secure leads) ■ Center of influence (influential people are willing to supply lead information) ■ Social media (LinkedIn, Facebook, Twitter for leads) ■ Other internet uses (services available for people doing commercial real estate) ■ Marketing dept (branding to generate leads) ■ Shows, fairs, and merchandise markets ■ Webinars and seminars ■ Lists and directories ■ Databases and data mining to generate leads ■ Cold calling (gen leads by calling on totally unfamiliar orgs) ■ Spotting (pay for someone’s lead information) Firms encouraged to calculate a customer referral value Effectiveness vs. Efficiency ➢ Efficiency refers to how likely are you to get the sale ➢ Satisfied customers are one of the most effective tools of a company ■ They should not only rely on this because it is not a guarantee Referral events ■

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➢ Gatherings (e.g. sports games) organized to network 9/21 ❖ Social selling ➢ Using social media to develop new clients ➢ Less stressful, talking to people who already have an interest ➢ Buyers use LinkedIn, Twitter, etc to look for sellers ➢ How can you represent yourself online to differentiate yourself from others selling online ❖ Personal Branding ➢ What are you known for? ➢ How does your uniqueness translate to value? ➢ LinkedIn ■ Focus on what makes you unique, what you can offer ■ Have a professional photo ■ Have a compelling headline ● Use clear, concise, keywords that people search for ■ Profile URL should be cleaner and more professional ■ Your summary should develop your brand; tell people who you are and how you add value, focus on skills rather than tasks ■ List your work history; do list employers ■ Include your major and relevant coursework ■ Get two or more recommendations from former employees or people who know you ■ List 5-7 skills where you have [developing] expertise ■ List things that make you interesting and human, hobbies or things that make you relatable ➢ Networking ■ Types of networks to have: ● The Advocate - family or friends that you know ● The Strategic “In” - well connected individuals who are willing to make connections on your behalf; alumni, mentor, professor or internship advisor ● The Subject Matter Expert - offers superior insight on a particular industry; can give an unbiased opinion; likely someone you connect with on LinkedIn ■ LinkedIn Groups - collections of people with similar interests, goals, jobs, etc ● Allow you to meet professionals who share your career interests ● Post or ask questions in group conversations to market yourself, build credibility and learn industry lingo ■ Alumni ● Ask about interests in companies when trying to connect with alumni 9/28

❖ *Incorporate rapport building, SPIN selling, feature-benefit sequence, closing in role play ❖ SPIN Selling ➢ Buyer does most of the talking ➢ Top of funnel figure: Situation questions ■ Ask about facts, explore buyers present situation ■ Should complete presale research ■ E.g. how many people do you employ at this location? Could you tell me how the system is configured? ➢ Next level of funnel figure: Problem Questions ■ Extremely powerful ■ What is the problem that this sale can fix? (NOT direct) ■ E.g. How satisfied are you with the present system? ➢ Next level of funnel figure: Implication Questions ■ Most powerful ■ What is the impact of x (x being the product offered)? ■ Once you’ve uncovered the problem, inform the customer of how your product will fix it ■ Will motivate the buyer to take action ■ E.g. could this lead to more cost? ➢ Final level of funnel figure: Need Pay Off Questions ❖ Transition statement ➢ E.g. Thank you for taking the time to talk to me today. I hope to learn a little bit more about your company today and hope to help you improve it with ease ❖ Feature-benefit Sequence ➢ Explains what the product does ➢ What features does it have? ➢ What are the benefits of the features? ➢ Link benefits to the company’s problem 10/2 ❖ ROLE PLAY ➢ Step 1 to step 2, transition statement ➢ Step 2 to step 3, transition statement ➢ Feature-benefit sequence ❖ Midterm ➢ Customer lifetime value ➢ Importance of a code of ethics ➢ What is selling? ➢ Examples of unethical practices ➢ Concept of derived demand ■ They’re not buying it because they need it they’re buying it to fulfill the needs of someone else ➢ Steps in the buying process ➢ Types of buying (new task, rebuy, modified rebuy) ➢ Active listening definition

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➢ Adaptive selling definition ➢ Social styles types and their characteristics ➢ Definition of style flexing ■ Adapting your style to meet the social style of the buyer ➢ Definition of a lead and a prospect and diff. Between them ➢ What constitutes a qualified prospect ➢ Different types of prospecting ➢ Steps in setting call objective ➢ Criteria for effective call objective 10/5 Role Play Prep ➢ Need payoff questions not required ➢ Seller: tell buyer which company they are representing ■ Tell seller problem you are trying to solve ➢ Problem and implication questions: ■ Targeted to uncover the problems you’re trying to solve ➢ Transition statement ■ E.g. “Thanks for sharing that with me, now I’d like to tell you how i can help” ➢ Feature statement ■ Link the need to the problem that it will solve ■ 2-3 is sufficient ➢ Visual Aids ■ Brochure, picture of the product, video of the product ➢ Response checks ■ Restate features, then ask questions ■ E.g. Do you see how this is going to save you money? Does this make sense to you? Do you see how this can help you? Impression management - activities a salesperson engages in to affect and manage the buyer’s impression of them Halo effect - manner in which you do one thing can change a person’s perceptions of other things you do Functional need vs. Psychological need ➢ Actual, legitimate needs versus secondary needs (e.g. the admiration that comes with working on Wall Street) Feature dumping - discussing features that are of little interest to the customer and wasting the buyer’s time ➢ E.g. What need is the company trying to solve by hiring someone for this position? 10/23 ADAPT ➢ Assessment - need based questions ➢ Discovery ➢ Activation

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Projection Transition

Select feature - What is unique or particularly helpful about your product? Explain advantage - Why do I need that? How do I use that feature? How is it beneficial? ➢ Lead to benefits - e.g. gym treadmill will increase customer memberships and satisfaction ➢ Let customer talk - e.g. Do you see how this gym treadmill will increase customer memberships and satisfaction? ❖ Product Demonstration 10/26 ❖ Responding to objections ➢ Spurious objections - excuses vs. genuine objections ➢ When faced with objections ■ Look for sales opportunities ■ Feedback about what is really on the prospect’s mind ➢ LAARC ■ Listening - hear and understand the entire problem ■ Acknowledge ■ Assessing the validity of the objection e.g. If we were to change the price, is there anything else that would hold you back from buying? Based on my background and resume, do you think I am fit for this position? ■ Responding ● Forestall: prevent by doing something ahead of time, bring up obj before it comes up ● Friendly silent questioning stare: encourages buyers to elaborate or explain fully what their concerns are ● If buyer makes a statement that is factually not true ◆ Direct denial: provide proof to show that it is incorrect ◆ Indirect denial: avoid contradiction, much more subtle, start with a statement proving that the question is a good one, recognize position and continue with proof that it isn’t true ● If buyer makes true statement ◆ Compensation method; acknowledge validity and proceed to show advantages ➢ *Superior benefit method - benefit of one attribute overcomes concern about a less important attribute ■ I understand how you feel. Many other customers felt that way initially, but what they found was ______________. ◆ Acknowledge method; let the buyer talk, acknowledge it, move onto another topic after a pause ◆ Postpone method; salesperson asks to acknowledge the

obj and answer to it later Confirming that the objection has been answered 10/30 ❖ Rapport building ➢ SPIN ➢ Presentation ➢ Feature-benefit sequence with link to problems → response checks ➢ Objection handling ➢ Commitment ■ Discuss pricing ■ Defines status of client ■ Let customer set the pace ● Be assertive but not aggressive ■ Direct request - asking buyer for commitment with a price ■ Benefit summary - Remind buyer of the agreed-on benefits of the proposal ■ Balance sheet - list pros and cons, salesperson highlights the advantages of product ■ Probing - ask customer a series of “yes” questions to influence a “yes” to the sale ■ Tells salesperson what to do next ■ Results in financial rewards for the salesperson 11/2 ❖ Formal Negotiation ➢ Bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements ➢ Win-lose negotiating → attempt to win all important concessions and thus triumph over the opponent ➢ Win-win negotiating → negotiator attempts to secure an agreement that satisfies both parties ➢ In negotiation, one should not be afraid of conflict ➢ E.g. Dell ■ Financial terms → 8%, negotiate for 2% ■ Installation → 30 days, negotiate for 14 days ■ Support → 48 hours, negotiate for 12 hours ➢ Target position → what a company hopes to achieve at the negotiation session ➢ Minimum position → Absolute minimum level of acceptance, established before the meeting ➢ Opening position → Initial proposal, which should: ■ Reflect higher expectations than target position ■ Supported with solid information ❖ Second Role Play ➢ Assumptive close ■

➢ Direct request close ➢ Rapport building ■ Where you went to school ■ How do u like working at RCI ■ What do you enjoy about your company ➢ Transition (set agenda) ■ Thank you for taking the time to meet with me today ■ I know you’re very busy so today I want to get down to it and ask questions about your company, then identify solutions that AT&T can possibly help with, and finally conclude with questions you have for me ■ How does that sound ➢ SPIN Questions ■ *Role play is second meeting, focus on presenting solutions ■ Situation: *Reiterating e.g. You’...