1   2   3   PREVIOUS FUTRELL

CHAPTER 8

Carefully Select Which Sales Presentation Method to Use

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: PRESENTATION

A. The heart of the sales presentation is the discussion of the product, marketing plan, and business proposition.

B. The selection of the best presentation method for the situation will allow a salesperson to improve the chances of helping the customer.

C. With great presentations you can ethically serve others and build long-term relationships based upon the truth.

II. SALES PRESENTATION STRATEGY

A. Salesperson to buyer.

1. A salesperson discusses issues with a prospect or customer in person or over the phone.

B. Salesperson the buyer group.

1. A salesperson gets to know as many members of the buyer group as possible.

C. Sales team to buyer.

1. A company sales team works closely with the members of the customer’s buying group.

D. Conference selling.

1. The salesperson brings company resource people to discuss a major problem or opportunity.

E. Seminar selling.

1. A company team conducts an educational seminar for the customer company about state-of-the-art developments.

III. SALES PRESENTATION METHODS – SELECT ONE CAREFULLY

A. Memorized sales presentation.

1. Based on one of two assumptions.

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

b. The prospect’s needs have already been stimulated because the prospect has made the effort to seek out the product.

2. National Cash Register Co. (NCR).

a. Pioneered the use of canned sales presentations.

b. Analysis of sales approaches in the 1920’s revealed salespeople saying basically the same thing.

c. Proceeded to prepare a series of standardized sales presentations.

3. Advantages:

a. It ensures that all of the company’s salespeople will give the same information in a well-planned presentation.

b. It both aids and lends confidence to the inexperienced salesperson.

c. It is effective when selling time is short, as in door-to-door or telephone selling.

d. It is effective when the product is a non-technical one.

4. Disadvantages:

a. It presents features, advantages and benefits that may not be important to the buyer.

b. It allows for little prospect participation.

c. It is impractical to use when selling products that require prospect input and discussion.

d. It proceeds quickly through the sales presentation to the close and may appear to the prospect as high-pressure selling.

B. The formula presentation.

1. Often referred to as persuasive selling presentation.

2. The salesperson follows a less structured, general outline in making a presentation; allowing more flexibility and less direction.

3. Attention, interest, desire, and action procedure (AIDA).

4. Smithkline Beecham products example: “the 10-step productive retail sales call”:

a. Plan the call.

b. Review plans.

c. Greet personnel.

d. Check conditions in store.

e. Approach.

f. Presentation.

g. Close.

h. Merchandising.

i. Records and reports.

j. Analyze the call.

5. Advantages:

a. It ensures that all information is presented in a logical manner.

b. It allows for a reasonable amount of buyer-seller interaction.

c. It allows for smooth handling of anticipated questions and objections.

C. The need-satisfaction presentation.

1. Interactive sales presentation.

2. Need-satisfaction format.

a. Need development phase – salesperson allows and encourages prospect to discuss his needs.

b. Need awareness phase – salesman takes control of the conversation by restating the prospect’s needs to clarify the situation.

c. Need fulfillment phase – the salesperson shows how his product will satisfy mutually agreed-upon needs.

D. The problem-solution presentation.

1. This presentation usually consists of six steps.

a. Convince the prospect to allow the salesperson to conduct an analysis of the prospect’s needs.

b. Make the analysis.

c. Buyer and seller mutually agree upon the problems and determine that the buyer wants to solve these problems.

d. Prepare a sales presentation based on the analysis and the proposal.

e. Make the sales presentation.

2. This presentation is a flexible, customized approach involving an in-depth study of a prospect’s needs.

E. The group presentation.

1. Give a proper introduction.

a. State your name

b. State your company.

c. Explain in a clear, concise sentence the premise of your proposal.

2. Establish credibility.

a. Give a brief history of your company.

3. Provide an account list.

a. Have copies of an account list available for everyone in attendance.

4. State your competitive advantages.

a. Right up front you should succinctly tell the group where your company stands relative to the competition.

5. Give quality assurances and qualifications.

a. Get the group on your side by stating guarantees in the beginning.

b. Show pride in your product.

c. Give your company’s qualifications and credentials.

6. Cater to the group’s behavioral style.

a. A group exhibits an overall or dominant style.

b. The group has a decision-making mode that characterizes one of the four behavioral styles.

F. Negotiating so that everyone wins.

1. Negotiating styles:

a. Cooperative.

b. Competitive.

c. Attitudinal.

d. Organizational.

e. Personal modes.

2. Phases of negotiation:

a. Planning – know how your company compares to the competition

b. Meeting – you start by building the relationship by proving you are someone who is credible, trustworthy, and hopefully the type of person your prospect likes to do business with.

c. Studying – look at the big picture and for benefits you can provide.

d. Proposing – tie in features and advantages to benefits and emphasize unique benefits.

G. Which is the best presentation method?

1. Stimulus-response method – used where time is short and the product is simple.

2. Formula setting – used in repeat purchases or when you know the prospect’s needs.

3. Need-satisfaction – used when information needs to be gathered from the prospect first.

4. Problem-solving – useful in selling expensive or technical products, usually requires several calls and a formal business proposal.

IV. SALES PRESENTATION GOES HIGH TECH

A. Videos, CD ROM’s, satellite conferencing, and computer hardware and software increasingly are being used in sales presentations.

V. SELECT THE SALES PRESENTATION, THEN THE APPROACH

A. Before developing the presentation, you must know which presentation method you will you.

VI. LET’S REVIEW BEFORE MOVING ON!

A. What’s important to know?

1. Top performing salespeople use the parallel dimensions of selling to plan, create and execute their presentation.

2. What do you talk about in a presentation?

a. Product

b. Marketing plan

c. Business proposition

d. Suggested purchase

3. Once you master the dimensions of selling, you will be able to:

a. Make a professional sales presentation in any situation.

b. Show a recruiter or your sales manager that you understand the sales process.

c. Train other people to become sales professionals.

d. Know that in a role as a consultant, you can quickly understand any organization’s present selling process and sales program that their sales force will like and that will help them increase sales.

B. The Golden Rule Makes Sense

1. The Golden Rule of Personal Selling makes sense in today’s competitive business world.

2. It sets you apart from all the other salespeople who only want to make a sale and a fast dollar, often by using lies and high pressure tactics.

C. Dale Carnegie gives a word of warning!

1. Author of How to Win Friends and Influence People

2. Gave a word of warning to people who would use his advice to win friends and influence people for their own self-centered purposes.

a. “the principles taught in this book will work only when they are from the heart. I am not advocating a bag of tricks. I am talking about a new way of life.”

3. Practicing the Golden Rule will allow you to win friends and influence people.

4. To be successful in sales over time, you must truly believe in treating others ethically, caring for them as a person and business.

CHAPTER 9

Begin Your Presentation Strategically

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: THE BEGINNING

A. Salespeople should begin their sales presentation knowing the key benefits to be discussed and a reasonable idea of what to suggest the prospect or customer buys to solve their needs.

II. WHAT IS THE APPROACH?

A. For the salesperson, the approach refers to the time from when the buyer is first seen to when the salesperson begins to discuss the product.

B. The approach is the third step in the in the selling process, but it’s the first step in the sales presentation.

III. THE RIGHT TO APPROACH

A. Justify your right to sell to your product to the prospect by showing him how your product will benefit him (and his company).

B. You may earn the right to his attention in a number of ways:

1. By exhibiting specific product or business knowledge.

2. By expressing a sincere desire to solve a buyer’s problem or satisfy a need.

3. By stating or implying that your product will save money or increase the firm’s profit margin.

4. By displaying a service attitude.

IV. THE APPROACH – OPENING THE SALES PRESENTATION

A. Your attitude during the approach.

1. Coping with stress.

a. Creative imagery.

b. Ask yourself questions.

B. The first impression of you is critical to success.

1. Appearance.

2. Attitude.

C. Approach techniques and objectives

1. Approach techniques are grouped into three categories:

a. Statement.

b. Demonstration.

c. Question.

2. Three objectives of the statement or demonstration approach techniques are:

a. To capture the attention of the prospect.

b. To stimulate the prospect’s interest.

c. To provide a transition into the sales presentation.

D. Small talk warms ‘em up.

1. In most sales calls the approach consists of two parts:

a. “Small talk” or rapport building phase.

b. Planned, formal selling technique used as a lead-in to the upcoming discussion of the product.

E. The situational approach.

1. The situation you face determines which approach technique you use to begin your sales presentation.

2. Some common situational variables are:

a. The type of product you are selling.

b. Whether this is a repeat call on the same person.

c. Your degree of knowledge about the customer’s needs.

d. The time you have for making the sales presentation.

e. Whether the customer is aware of a problem.

F. Opening with statements.

1. Introductory approach – needed when meeting a prospect for the first time.

2. Complimentary approach – Stimulates interest and goodwill.

3. Referral approach – the use of someone’s name whom your prospect respects.

4. Premium approach – giving the prospect a sample of your product for free.

G. Demonstration openings.

1. Product approach – the salesman silently hands the prospect his product and waits for the prospect to start the conversation.

2. Showmanship approach – doing something unusual to capture the prospect’s attention (example: dropping a “new unbreakable china” platter to demonstrate durability).

H. Opening with questions.

1. Customer-benefit approach – asking the prospect a question that implies that the product will benefit him.

2. Curiosity approach – make the prospect curious about your product.

3. Opinion approach – ask the prospect for his opinion on your products.

4. Shock approach – the use of a question phrased to make the prospect think seriously about a subject related to your product.

5. Multiple questions approach (SPIN) – ask questions to determine:

a. Step 1—the prospect’s general situation as it relates to your product.

b. Step 2—specific problems, dissatisfactions, or difficulties perceived by the prospect relative to your situation question.

c. Step 3—the implication of the prospect’s problems or how a problem affects various related operational aspects of a home, life or business.

d. Step 4—if the prospect has an important, explicit need.

e. Product not mentioned in the SPIN approach.

V. TECHNOLOGY IN THE APPROACH

A. Technology incorporated in the approach can be a powerful attention getter.

VI. IS THE APPROACH IMPORTANT

A. Many approach techniques are available; it is very important to choose the right one.

VII. USING QUESTIONS RESULTS IN SALES SUCCESS

A. Asking the questions is an excellent technique for:

1. Obtaining information from the prospect.

2. Developing two-way communication.

3. Increasing prospect participation.

B. The direct question:

1. Requires a short answer—usually “yes” or “no.”

C. The nondirective question:

1. Questions that begin with who, what, where, when, how or why.

a. Examples are the situation question and the implication question.

D. The rephrasing question.

1. Allows the salesperson to better clarify what the prospect means.

E. The redirect question.

F. Three rules for using questions.

1. Use only those questions to which you can anticipate the answer (those that won’t put you between a rock and a hard place).

2. Wait for an answer to your question.

3. Just listen.

VIII. IS THE PROSPECT STILL NOT LISTENING?

A. Quickly hand him or simply show him the product.

B. Ask him a question.

IX. BE FLEXIBLE IN YOUR APPROACH

A. Be prepared to make changes in your approach and overall presentation.

CHAPTER 10

Elements of a Great Sales Presentation

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: PRESENTATION

A. Elements of the presentation, both verbal and visual, appeal to the buyer’s human senses, like sight and sound.

B. These elements improve the person’s understanding of the information and and help the person determine if your product fits their needs.

II. THE PURPOSE OF THE PRESENTATION

A. Main goal—to sell your product to your customer.

B. Purpose

1. Provide knowledge via the features, advantages and benefits of your product, marketing plan, and business proposal.

2. Allow buyer to develop positive personal attitudes toward your product.

3. Attitudes result in desire (or need).

4. Convert need into want and into the belief that your product can fulfill a certain need.

5. Convince the buyer that not only is your product the best, but also you are the best source to buy from.

6. When this occurs, he is in the conviction stage.

III. THREE ESSENTIAL STEPS WITHIN THE PRESENTATION

A. Fully discuss the features, advantages and benefits of your product.

B. Present your marketing plan.

C. Explain your business proposition (value/cost comparison).

IV. THE SALES PRESENTATION MIX

A. Persuasive Communication

1. Factors that help you be a better communicator:

a. Using questions.

b. Being empathetic.

c. Keeping the message simple.

d. Creating mutual trust.

e. Listening.

f. Having a positive attitude and enthusiasm.

g. Being believable.

h. The SELL Sequence and trial close.

2. Logical reasoning based on:

a. Major premise

b. Minor premise

c. Conclusion

3. Persuasion through suggestion

a. Types of suggestions

(1) Suggestive propositions—suggest the prospect should act now.

(2) Prestige suggestions—name the famous or respected people or companies that use your product.

(3) Autosuggestion—attempt to have the buyer sell himself by imagining himself using the product.

(4) Direct suggestion—suggest that the prospect buy your product.

(5) Indirect suggestions—make it seem as if the purchase of your product is the buyer’s idea.

(6) Counter-suggestion—gets the buyer to express why he needs the product and will probably also compel him to defend his purchase decision.

4. Make the presentation fun.

5. Personalize your relationship.

6. Build trust.

7. Use body language.

8. Control the presentation.

9. Be a diplomat.

10. Use the Paul Harvey dialogue.

11. Simile, metaphor, and analogy.

a. Simile—a comparison statement using the words “like” or “as.”

b. Metaphor—implied comparison that uses a contrasting word or phrase to evoke a vivid image.

c. Analogy—compares two different situations which have something in common.

B. Participation is essential to success.

1. Four ways to induce participation:

a. Questions

b. Product use

c. Visuals

d. Demonstrations

C. Proof statements build believability.

1. Past sales help predict the future.

2. The guarantee.

3. Testimonials.

4. Company proof statements.

5. Independent research results.

a. For a proof statement referring to an independent research result to be effective, it should contain:

(1) A restatement of the benefit before proving it.

(2) The proof source and relevant facts or figures about the product.

(3) Expansion of the benefits.

D. The visual presentation – show and tell.

1. Visuals

a. Increase retention.

b. Reinforce message.

c. Reduce misunderstanding.

d. Create a unique and lasting impression.

e. Show your buyer that you are a professional.

V. VISUAL AIDS HELP TELL THE STORY

A. Visuals, or visual aids, are devices that chiefly appeal to the prospect’s vision, with the intent of producing mental images of the product’s features, advantages, and benefits

VI. DRAMATIZATION IMPROVES YOUR CHANCES

A. Dramatics – presenting the product in a striking manner.

B. Dramatics should be incorporated into a presentation only when you are 100 percent sure that the dramatics will work effectively.

VII. DEMONSTRATIONS – PROVE IT

A. Sales demonstration checklist:

1. Is the demonstration needed or appropriate?

2. Have I developed a specific demonstration objective?

3. Have I properly planned and organized the demonstration?

4. Have I rehearsed to the point that the demonstration flows smoothly and appears to be natural?

5. What is the probability that the demonstration will go as planned?

6. What is the probability that the demonstration will backfire?

7. Does my demonstration present my product in an ethical and professional manner?

B. Get participation in your demonstration.

1. Let the prospect do something simple.

2. Let the prospect work an important feature.

3. Let the prospect do what he would frequently do.

4. Ask the prospect questions throughout the demonstration.

C. Reasons for using visual aids, dramatics, and demonstrations.

1. Capture attention and interest.

2. Create two-way communication.

3. Involve the prospect through participation.

4. Afford a more complete, clearer explanation of products.

5. Increase a salesperson’s persuasion powers by obtaining positive commitments on a product’s single feature, advantage or benefit.

D. Guidelines for using visual aids, dramatics and demonstrations:

1. Rehearse them!

2. Customize them to fit each individual customer.

3. Make them simple, clear and straightforward.

4. Control the demonstration.

5. Make the demonstration true to life.

6. Encourage prospect participation.

7. Incorporate trial closes after showing or demonstrating a major feature, advantage or benefit in order to determine if it is believed or important to the prospect.

VIII. TECHNOLOGY CAN HELP!

A. Provide visually attractive information in a dramatic manner.

IX. THE SALES PRESENTATION GOAL MODEL

A. Six elements of the presentation mix to consider:

1. What is your objective?

2. Who is your audience?

3. How will you structure your presentation?

4. How will you create impact?

5. How will you design and display visual aids?

6. How will you stage your presentation?

X. THE IDEAL PRESENTATION

A. Your approach technique quickly captures your prospect’s interest and immediately identifies signals that the prospect has a need for your product and is ready to listen.

B. The prospect is friendly, polite and relaxed; will not allow anyone to interrupt you; asks questions; and participates in your demonstrations as planned.

C. The ideal customer cheerfully and positively answers each of your questions, allowing you to anticipate the correct moment to ask for the order.

XI. BE PREPARED FOR PRESENTATION DIFFICULTIES

A. How to handle interruptions:

1. If there is a phone call, offer to leave the room.

2. Wait until the prospect’s attention is completely back to you.

3. Restate the selling points that were of interest to the prospect.

4. Invite participation.

5. Make sure interest has been regained, and then proceed.

B. Should you discuss competition?

1. Do not refer to competition.

2. Acknowledge competition and drop it.

3. Make a detailed comparison.

C. Be professional.

D. Where the presentation takes place.

E. Diagnose the prospect to determine your sales presentation.

CHAPTER 11

Welcome Your Prospect’s Objections

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: OBJECTIONS

A. When objections arise view them as challenges to help.

B. Helping through providing ethical service builds relationships.

II. WELCOME OBJECTIONS!

A. Learn to accept objections as a challenge which, when handled correctly, will benefit you and your prospect.

B. If you fear objections, you will fumble your response, often causing you to fail.

III. WHAT ARE OBJECTIONS?

A. Sales objection – a prospects opposition or resistance to the request of the salesperson.

B. The prospect who presents objections is often more easily sold on your product.

IV. WHEN DO PROSPECTS OBJECT?

A. At any time during your sales call—from introduction to close.

V. OBJECTIONS AND THE SALES PROCESS

A. Inexperienced salespeople finish their presentation and wait for the prospect’s response.

B. Experienced salespeople use a trial close.

C. How to move to the real close:

1. If the prospect reacts positively—move to the close.

2. Answer objections and ask another trial close to determine if the objections have been met, and then move to the final close.

3. Be prepared to determine if there are other objections.

4. If an objection has not been overcome, then move back to your presentation.

VI. BASIC POINTS TO CONSIDER IN MEETING OBJECTIONS

A. Plan for objections.

B. Anticipate and forestall.

1. Forestalling an objection involves the salesperson discussing an objection before it is brought up by the prospect.

2. Anticipated objections.

C. Handle objections as they arise.

1. Postponement of objections may result in:

a. The prospect not listening.

b. The prospect feeling that you are hiding something.

c. The appearance that you also feel it’s a problem.

d. The appearance that you’re not able to answer because you do not know the answer.

e. The appearance that you are not interested in the prospect’s opinion.

D. Be positive!

1. Use positive body language and smile.

2. Do not take objections personally.

E. Listen—hear them out.

F. Understand objections.

1. Request more information.

2. A condition.

a. Sometimes prospects may raise an objection that turns into a condition of the sale.

b. Negotiation can overcome a condition.

3. Major or minor objection.

4. Practical or psychological objection.

a. Practical (overt).

b. Psychological (hidden).

G. Meet the objection.

VII. SIX MAJOR CATEGORIES OF OBJECTIONS

A. The hidden objection – a prospect who asks trivial, unimportant questions or conceals his feelings beneath a veil of silence. The salesperson must ask questions and carefully listen in order to smoke out the prospect’s real objection.

1. Smoke out hidden objections – ask questions, observe the prospect, you may have to “read between the lines”; the prospect may not consciously know what the real objections are; finally, as a last resort, you may simply ask the prospect what their objections are.

B. The stalling objection – when the prospect says, “I’ll think it over …” or “I’ll be ready to buy on your next visit” you must determine if the statement is truth or if it is a smokescreen designed to get rid of you.

1. One of the toughest stalls to overcome arises when selling a new consumer product.

2. Another stall occurs when the buyer says he has to get approval from someone else. Since the buyer’s attitude toward your product will influence the firm’s buying decision, you must make it a positive one.

3. Let the buyer know that you are on his side and help him with his objections. If he doe not respond, give him a multiple choice question to display an attitude of genuine caring.

4. Do not get demanding, defensive or hostile.

5. Your goal is to help your prospect realistically examine reasons for and against buying now.

6. The main idea is not to be satisfied with a false objection or stall. Bring out any or all of your main selling benefits now and keep on selling.

C. The no-need objection – the prospect says, “… but I’m not interested now,” and he stays as he presently is.

1. This is widely used because it gets rid of the salesperson.

2. It is tricky because it also includes a hidden objection or a stall.

D. The money objection – encompasses several forms of economic excuses and is simple for the buyer to say.

1. Respond by saying that it is risky to discuss the products price until it can be compared to the product’s benefits. Once you convey the benefits, price becomes a secondary factor, which usually can be dealt with successfully.

2. Quote the price and go right on selling.

3. The price/value formula:

a. Used to determine if a prospect is or is not convinced that the price is too high.

b. Price/value = cost.

(1) Cost—comparison of what is received to money paid.

(2) Value—what the prospect sees the product doing for them.

(3) Price—set at headquarters; not subject to change.

E. The product objection.

1. Not everyone likes the best selling product.

2. Your reaction must be positive; you can use a guarantee, a testimonial, independent research results, or a demonstration.

F. The source objection

1. Some prospect may say that they are happy with their current supplier.

2. You should try to find out what exactly bothers the prospect and call on him routinely over a long period of time.

VIII. TECHNIQUES FOR MEETING OBJECTIONS

A. The dodge does not deny, answer or ignore.

B. Don’t be afraid to pass up an objection.

C. Rephrase an objection as a question.

1. It is easier to answer a question than to overcome an objection.

a. Acknowledge the prospect’s viewpoint.

b. Rephrase objections.

c. Obtain agreement.

d. “Feel-felt-found”:

(1) “I understand how you feel.”

(2) “Bill at XYZ store felt the same way”

(3) “… but he found after reviewing our products …”

D. Postponing objections is sometimes necessary.

1. If you judge that the objection will be handled to your prospect’s satisfaction by your customary method, and that your prospect is truly willing to wait until that later time in your presentation, you may politely forestall.

2. Tactfully used, forestalling can leave you in control of the presentation.

E. Send it back with the boomerang method.

1. Be ready at any time to turn an objection into a reason to buy. Convince the prospect that his objection is in fact a benefit.

2. Requires good timing and quick thinking by the salesperson.

F. Ask questions to smoke out objections.

Q1: “There must be some good reason why you’re hesitating to go ahead now. Do you mind if I ask what it is?”

Q2: “In addition to that, is there any other reason for not going ahead?”

Q3: “Just supposing, Mr. Buyer, you could … then you’d want to go ahead?” If “yes” go forward to discuss this, if “no” go to next question.

Q4: “Then there must be some other reason. May I ask what it is?” When he tells you, then respond with another question 2. If you receive a negative response then go to question 5.

Q5: “What would it take to convince you?”

This series of questions keeps the conversation going and gets the real objections out in the open, which helps increase your sales.

G. Use direct denial tactfully.

1. Incomplete or incorrect objections should be acknowledged from the prospect’s viewpoint, and then answered with complete and correct facts.

2. “Tact” is critical.

3. Do not say “you’re wrong,” it closes the prospect’s mind. Instead try, “you know, you’re right to be concerned about this. Let me explain.”

H. The indirect denial works.

1. It initially appears as agreement with the customer’s objection, but moves into denial of the fundamental issue.

2. Done in a natural, conversational way, the salesperson will not offend the prospect.

I. Compensation or counterbalance method.

1. Sometimes a prospect’s objection is valid and must be overcome, which calls for the compensation method.

2. Present advantages to counterbalance the objection.

J. Let a third party answer.

1. Answer it by referring to a third party and using his experience as your “proof or testimony.” If the source is reliable or reputable, this can be especially successful with the expert or skeptical prospect.

IX. TECHNOLOGY CAN EFFECTIVELY HELP RESPOND TO OBJECTIONS

A. Providing buyers the necessary information to make a decision can frequently overcome objections.

X. AFTER MEETING THE OBJECTION—WHAT TO DO?

A. First, Use a trial close.

1. To determine if you have overcome the objection. Next, close the sale or move back into your presentation.

B. Move back into your presentation.

C. Move to close your sale.

1. If finished with your presentation.

D. If you cannot overcome the objection:

1. Admit it and show how your product’s benefits outweigh this disadvantage.

2. You should always ask for the order.

XI. IN ALL THINGS BE GUIDED BY THE GOLDEN RULE

A. The Golden Rule is your moral compass guiding you of your primary purpose in sales and business,

B. These time tested selling techniques are for the good of others.

CHAPTER 12

Closing Begins the Relationship

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: CLOSING

A. When closing, it is extremely important to think about the purpose of the sales call—unselfish service to the other person.

II. WHEN SHOULD I POP THE QUESTION?

A. Closing – the process of helping people make a decision that will benefit them. You help them make that decision by asking them to buy.

B. Attempt to close the sale when the prospect is ready. More specifically, when the prospect is in the “conviction stage” of the mental buying process.

III. READING BUYING SIGNALS

A. Buying Signals—refer to anything prospects say or do to indicate that they are ready to buy.

B. Several ways prospects signal that they are ready to buy:

1. Asks questions.

2. Asks another person’s opinion.

3. Relaxes and becomes friendly.

4. Pulls out an order form.

5. Carefully examines merchandise.

C. A buyer may send verbal and non-verbal signals at any time before and during your sales presentation.

IV. WHAT MAKES A GOOD CLOSER?

A. Good closers have a strong desire to close each sale—they have a positive attitude and know their customers and tailor their presentations to meet each one’s specific needs.

B. Good closers spend time preparing.

C. Successful salespeople do not stop on the prospect’s first no.

D. Ask for the order and be quiet.

1. You must put the prospect in the position of having to:

a. Make a decision.

b. Speak first.

c. Respond to the close.

E. Get the order—then move on!

1. In continuing to talk, you may give information that changes the buyer’s mind.

V. HOW MANY TIMES SHOULD YOU CLOSE?

A. Three to five well-executed closes is a minimum for successful salespeople.

VI. CLOSING UNDER FIRE

A. You must be able to ask a prospect, who may be in a bad mood or may even appear hostile toward you, to buy.

VII. DIFFICULTIES WHEN CLOSING

A. One reason salespeople may fail to close a sale and get an order is that they are not confident in their ability to close.

B. Salespeople often determine on their own that the prospect does not need the quantity or type of merchandise, or that the prospect simply should not buy.

C. The salesperson may not have worked hard enough in developing a customer profile and benefit plan, resulting in a poor presentation.

VIII. ESSENTIALS OF CLOSING SALES

A. Be sure your prospect understands what you are saying in your presentation.

B. Always present a complete story to ensure understanding.

C. Tailor your close to each presentation.

D. Everything you do and say should take into consideration the customer’s point of view.

E. Never stop at the first “no.”

F. Lear to recognize buying signals.

G. Before you close, attempt a trial close.

H. After asking for the order, shut up.

I. Set high goals for yourself and develop a personal commitment to reach your goals.

J. Develop and maintain a positive, confident and enthusiastic attitude toward yourself, your products, your prospects, and your close.

IX. PREPARE SEVERAL CLOSING TECHNIQUES

A. Successful salespeople should be able to adapt their planned presentation to any prospect or situation that may arise.

B. Eleven of the more commonly used closing techniques.

1. Alternative choice close is an old favorite; it provides a choice between something and something; never between something and nothing.

a. Example: “Which do you prefer?” or “Would you prefer A or B?” (I like the second example.)

2. Assumptive close – the salesperson assumes the prospect will buy.

a. Example: “I’ll call your order in tonight.” or “I’ll have this shipped to you tomorrow.”

3. Compliment close—by complimenting them, you get them to listen and respond favorably to your presentation.

4. Summary of Benefits close—summarize the product’s benefits in a positive manner so that the prospect agrees with what you are saying; then ask for the order.

a. You can easily adapt FAB statements, discussed in Chapter 3, for your “summary” close.

5. Continuous-yes close—like the summary close; however, instead of summarizing product benefits, the salesperson develops a series of benefits questions, which the prospect must answer.

6. Minor-points close—similar to the alternative-choice close; but the minor-points close asks the prospect to make a low-risk decision on a minor, usually low-cost element of a single product such as delivery dates, optimal features, etc.

7. T-account or Balance Sheet Close—is based on the process people go through when they make a decision, weighing the cons against the pros. The same as debits and credits, act or not act, etc.

a. Modified T-Account or Balance Sheet Close—only list the reasons to buy. Some salespeople do not remind the prospect of any of the reasons not to buy as they attempt to close the sale.

8. Standing Room Only close—indicate that if they do not act now, they may not be able to buy in the future. It should only be used in complete honesty.

9. Probability close—ask prospects who are delaying what the probability of doing business at a later time is. This permits prospects to focus in on and discover their own hidden objectives.

10. Negotiation close—finds ways for everyone to have a fair share.

11. Technology close—incorporates appropriate technology to close the sale.

X. PREPARE A MULTIPLE-CLOSE SEQUENCE

A. By keeping several difficult closes ready to aid you in any situation, you will put yourself in a better position to close more sales.

XI. CLOSE BASED ON THE SITUATION

A. Since different closing techniques work best for certain situations, salespeople often identify the common objections they encounter and develop specific approaches to closing designed to overcome these objections.

XII. RESEARCH REINFORCES THESE SALES SUCCESS STRATEGIES

A. One research report reinforces several of the key procedures that will improve your sales performance.

B. Six common mistakes that researchers found which prevented successful sales calls:

1. Tells instead of sells; doesn’t ask enough questions.

2. Over-controls the call; asks too many closed-ended questions.

3. Doesn’t respond to customer needs with benefits.

4. Doesn’t recognize needs; gives benefits prematurely

5. Doesn’t recognize or handle negative attitudes effectively.

6. Makes weak closing statements; doesn’t recognize when or how to close.

XIII. KEYS TO IMPROVED SELLING

A. Ask questions to gather information and uncover needs.

B. Recognize when a customer has a real need and how the benefits of the product or service can satisfy it.

C. Establish a balanced dialogue with customers.

D. Recognize and handle negative customer attitudes promptly and directly.

E. Use a benefit summary and an action plan requiring commitment when closing.

XIV. THE BUSINESS PROPOSITION AND THE CLOSE

A. The business proposition is the discussion of costs. Markups, value analysis, or a Return-On-Investment (ROI) profit forecast.

B. Follows discussion of a product’s FABs and marketing plan.

C. The marketing plan explains:

1. For wholesalers or retailers, how they should resell the product.

2. For end users, how they can use the product.

D. Use a visual aid to close.

1. A visual aid works well in discussing the business proposition when closing.

XV. CLOSING BEGINS THE RELATIONSHIP

A. When you make a sale for the first time, a prospect becomes a customer.

B. Earn the right to sell to the customer again.

1. Follow the Golden Rule of Personal Selling.

2. Provide exceptional service after the sale.

XVI. WHEN YOU DO NOT MAKE THE SALE

A. Act as a professional, adult salesperson, and do not take the buyer’s denial personally, but recognize it as a business decision that the buyer must make given the circumstances.

B. The proper handling of a no-sale situation actually helps build a sound business relationship with your customers.

C. Ask why you lost out—learn from your no-sales as well as your successes.

CHAPTER 13

Service and Follow-up for Customer Retention

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: SERVICE

A. Service and follow-up after the sale shows you truly care

B. By providing outstanding service you place the interest of the customer before your self-interest.

II. THE IMPORTANCE OF SERVICE AND FOLLOW-UP

A. A salesperson helps customers through follow-up by maintaining contact with a customer (or prospect) in order to evaluate the effectiveness of the product and the satisfaction of the customer.

B. Words of sales wisdom:

1. Caring for people is the beginning of wise sales knowledge which can be referred to as wisdom.

2. Sales proverbs:

a. Customer choice between suppliers has never been greater. b. You lose “X” percent of sales or customers per year.

c. You do business with the one you trust and you trust the one you know.

d. Eighty percent of your profits come from about 20 percent of your customers.

e. Obtaining new customers and selling more products to current customers are the ways to increase sales.

f. For some types of selling, customer referrals are the best way to find new prospects. Having a satisfied customer tell a prospect how great a product is and that the salesperson can be trusted is a wonderful way to obtain new customers.

g. It is always easier to sell a satisfied customer or prospect than an unsatisfied one.

h. The cost of acquiring a new customer is much higher than keeping a current customer.

3. Knowledge versus wisdom

a. We may amass knowledge, but without wisdom, our knowledge is useless.

b. In this age of information, knowledge is plentiful, but wisdom is scarce.

4. Wisdom is learned.

a. We must trust and honor people.

b. We must realize that our purpose is to help people.

c. We must make a life-long series of right choices and avoid moral pitfalls.

d. We must learn from our errors and recover.

C. True Caring Builds Relationships and Sales

1. Once the sales prospect feels the salesperson understands needs, confidence improves in what the salesperson recommends.

2. People like to buy and be remembered, not sold and forgotten

3. Caring is seen

a. More than just warm feelings, it is an attitude that reveals itself in action.

4. Caring is Hard to Do

a. Since its hard to do, people notice when the seller does it, and how customers know the seller can be trusted.

b. Through caring comes exceptional service to the customer, which in turn brings peace to the relationship.

III. BUILDING A LONG-TERM BUSINESS FRIENDSHIP

A. What is a Business friendship

1. The relationship formed between a salesperson and a client that revolves around business-related issues.

B. How to Build a Business Friendship

1. Just like friendships outside of work, business relationships do not just happen, they take time to develop.

a. Level 1 – Acquaintances—people whose names you know, you see occasionally, and of whom you know little about.

b. Level 2 – Friends—people whom we spend more time with and with whom we share common interests and hobbies.

c. Level 3 – Intimate friends—often called “best friends,” these are the people we know on a deeper level.

2. Several things happen between people before they become friends.

a. Self disclosure – sharing a few things about yourself and allowing your client to share a few things about him or herself.

b. Acknowledgement – everyone has a desire to be heard, acknowledged and understood; take time to listen to your client.

(1) Step 1 – Repeat back—repeat what your client tells you in summarized fashion.

(2) Step 2 – Don’t invalidate—avoid telling or making your client feel that they are wrong.

(3) Step 3 – Don’t try to change—do not attempt to change your client’s mind on an issue; simply listen to what is said and formulate a solution based on their perceived problems.

c. Attending – pay attention, or attend to your client, use body language to show you’re paying attention.

d. Talking – the foundation of any good relationship is good communication; be a great listener, share information, and allow information to be shared.

3. Structure for survival.

a. A good relationship needs structure to survive; this structure must be established at the beginning and reaffirmed to avoid confusion.

4. Avoid control and one-upmanship

a. Do not try to control your client, and do not allow yourself to be controlled.

5. Do you pressure a true friend?

a. To have a lasting, wonderful relationship your self-interest must come last.

C. What is most important?

1. If you make decisions based on your own needs, at times you will take advantage of your “friends.”

D. How many friends?

1. “A person with too many friends comes to ruin.”

IV. RELATIONSHIP MARKETING AND CUSTOMER RETENTION

A. Three levels of customer relationship marketing:

1. Transaction selling – a customer is sold and not contacted again.

2. Relationship selling – after the purchase, the seller finds out if the customer is satisfied and has future needs.

3. Partnering – the seller works continually to improve the customer’s operations, sales, and profits.

B. Relationship marketing builds friendships.

1. Relationship marketing – a creation of customer loyalty and retention.

2. An organization using relationship marketing is not seeking simply a sale or a transaction; the goal is to retain customers.

V. THE PRODUCT AND ITS SERVICE COMPONENT

A. A person buying a product is buying a bundle of tangible and intangible attributes, including packaging, color, and brand, plus the services and even the reputation of the seller.

B. Buyers have expectations of what an organization should deliver:

1. Product – the product purchased has no defects.

2. Price – fair value for the price.

3. Place – the product is available when and where needed and promised.

4. Promotion – correct, honest information and advertisements, from salespeople, and on product labels.

5. Exchange transaction – handled correctly, quickly and professionally—the first time.

6. After the sale – warranty honored, repairs or exchanges made cheerfully; written information or company representative available to discuss how to put together, hook-up or use the product.

7. Customer service – the activities and programs provided by the seller to make the relationship a satisfying one for the customer.

C. Expectations Determine Service Quality

1. Service quality is a customer’s perception of how well service provided by a seller meets their expectations

VI. CUSTOMER SATISFACTION AND RETENTION

A. Customer satisfaction – customer’s feelings toward a purchase.

B. Continued customer satisfaction leads to customer retention which is critical to the long-run success of a salesperson.

VII. EXCELLENT CUSTOMER SERVICE AND SATISFACTION REQUIRE TECHNOLOGY

A. Providing good service to customers in today’s competitive marketplace is not enough; service must be excellent.

VIII. SO, HOW DOES SERVICE INCREASE YOUR SALES?

A. A salesperson increases sales by obtaining new customers and selling more products to present customers.

B. The best way to obtain new customers is through referrals

C. Customers provide referrals when they are pleased with the salesperson’s service.

IX. TURN FOLLOW-UP AND SERVICE INTO A SALE

A. A High-performance salesperson can convert follow-up and service situations into sales.

X. ACCOUNT PENETRATION IS A SECRET TO SUCCESS

A. Account penetration – the ability to work and contact people throughout the account discussing your products.

B. Penetration can be determined by:

1. Your total and major brand sales growth in an account.

2. Distribution of the number of products in a product line, including sizes, used or merchandized by an account.

3. Level of cooperation you obtain, such as reduced resale prices, shelf space, advertising and display activity, discussion with their salespeople, and freedom to visit with various people in the account.

4. Your reputation as the authority on your type of merchandise for the buyer.

C. General rule—the greater your account penetration the greater your chances of maximizing sales within the account.

XI. SERVICE CAN KEEP YOUR CUSTOMERS

A. First: concentrate on improving account penetration.

B. Second: contact new accounts on a frequent and regular schedule.

C. Third: handle your customer’s complaints promptly.

D. Fourth: always do what you say you will do.

E. Fifth: provide service as you would to royalty.

F. Sixth: practical suggestions to show your appreciation:

1. Phone immediately when a solution to a customer’s problem arises.

2. Mail your prospect interesting clippings.

3. Write congratulatory notes.

4. Send clippings about customers’ families.

5. Send holiday cards.

6. Send birthday cards.

7. Prepare a brief, informative newsletter.

XII. YOU LOSE A CUSTOMER—KEEP ON TRUCKING

A. Four things can be done to win back a customer:

1. Visit and investigate.

2. Be professional.

3. Never criticize a competing product your customer has purchased.

4. Keep calling.

XIII. RETURNED GOODS MAKE YOU A HERO

A. The salesperson should examine the merchandise carefully.

B. Cheerfully return the merchandise following the company’s returned good policies.

XIV. HANDLE COMPLAINTS FAIRLY

A. Customers may be dissatisfied with products for a number of reasons.

1. The product delivered is a different size, color, or model than the one ordered.

2. The quantity delivered is less than the quantity ordered.

3. The product does not arrive by the specified date.

4. Agreed on discounts are not rendered by the manufacturer.

5. The product does not have a feature or perform a function that the customer believed it would.

6. The product is not of the specified grade or quality.

XV. IS THE CUSTOMER ALWAYS RIGHT?

A. Some academics believe the answer is “yes,” but what if the customer asks you to do something unethical or illegal?

B. Occasionally a dishonest customer may require you and your company not to honor a request; always have a plan for problem solving.

1. Obtain as much relevant information from your customer as possible.

2. Express sincere regret for the problem.

3. Display a service attitude.

4. Review your sales records to ensure the customer purchased the merchandise.

5. If the customer is right, quickly and cheerfully handle the complaint.

6. Follow up to make sure the customer is satisfied.

C. Dress in your armor; be prepared to meet a dishonest customer.

XVI. BUILD A PROFESSIONAL REPUTATION

A. Eight considerations:

1. Be truthful and follow through on what you tell your customer.

2. Maintain an intimate knowledge of your firm, its products, and your industry.

3. Speak well of others, including your company and your competitors.

4. Keep customer information confidential; maintain a professional relationship with each of your accounts.

5. Never take advantage of a customer by using unfair, high-pressure techniques.

6. Be active in community affairs by helping to better your company.

7. Think of yourself as a professional and always act as a professional.

8. Provide service “above and beyond the call of duty.”

XVII. DO’S AND DON’TS FOR BUSINESS SALESPEOPLE

A. Most important traits are:

1. Willingness to “go to bat” for the buyer within the supplier’s firm.

2. Thoroughness and follow-through after the sale.

3. Knowledge of his or her firm’s product line.

4. Market knowledge and willingness to “keep the buyer posted.”

5. Imagination in applying one’s products to the buyer’s needs.

6. Knowledge of the buyer’s product line.

7. Preparation for sales calls.

8. Regularity of sales calls.

9. Diplomacy in dealing with operating departments.

10. Technical education (knowledge of specifications and applications).

B. “Seven deadly sins of Business Selling” are:

1. Lack of product knowledge.

2. Time-wasting.

3. Poor planning.

4. Pushiness.

5. Lack of dependability.

6. Unladylike or ungentlemanly conduct.

7. Unlimited optimism.

XVIII. THE PATH TO SALES SUCCESS: SEEK, KNOCK, ASK, SERVE

A. In any type of sales remember to:

1. Seek customers to serve and you will find them.

2. Knock and people will open their doors

3. Ask and people will buy

4. Provide service after the sale and customers will buy again.

CHAPTER 14

Time, Territory, and Self-Management: Keys to Success

LECTURE OUTLINE

I. THE TREE OF BUSINESS LIFE: TIME

A. How you spend your time determines your life.

B. It greatly influences your level of success in sales—and school.

C. Managing time and territory is one of the most important factors in selling.

II. CUSTOMERS FORM SALES TERRITORIES

A. Sales territory – comprises a group of customers or a geographical area assigned to a salesperson.

B. Why establish sales territories?

1. To obtain thorough coverage of the market.

2. To establish a salesperson’s responsibility.

3. To evaluate performance.

4. To improve customer relations.

5. To reduce sales expense.

6. To allow better matching of salespeople to customer needs.

7. Benefit to salespeople and the company.

C. Why sales territories may not be developed.

1. Restriction by a territory.

2. Company may be too small.

3. Not enough time or knowledge.

4. Personal friendship may be the basis for attracting customers.

III. ELEMENTS OF TIME AND TERRITORY MANAGEMENT (TTM)

A. Salesperson’s sales quota.

B. Account analysis.

1. Identification and estimate of sales potential.

a. The undifferentiated selling approach – use the same approach on accounts which are basically the same.

b. The account segmentation approach – accounts that have heterogeneous needs and differing characteristics, require different selling strategies.

(1) Key account.

(2) Unprofitable account.

(3) Regular account.

2. Multiple selling strategies.

3. Multivariable account segmentation.

C. Develop account objectives and sales quotas.

D. Territory-time allocation.

1. Number of accounts in the territory.

2. Number of sales calls made to customers.

3. Time required for each sales call.

4. Frequency of customer sales calls.

5. Travel time around territory.

6. Non-selling time.

7. Return on time invested.

a. Sales time should be in direct proportion to potential sales for each account.

b. Break-even analysis may be used to analyze cost. Break-even point in dollars = Salesperson’s fixed costs Percentage of gross profit

c. Time Management

(1) Plan by the day, week and month.

(2) Qualify the prospect.

(3) Use waiting time.

(4) Have a productive lunch break, invite prospects.

(5) Keep records and reports.

E. Customer sales planning.

1. Developing a sales call objective, a customer profile, customer benefit program, and selling strategies for individual customers.

F. Scheduling and routing.

1. Scheduling – refers to establishing a fixed time (day and hour) when the salesperson will be at a customer’s place of business.

2. Routing – the travel pattern that he/she uses in working the sales territory. They enable the company to:

a. improve territory coverage

b. minimize waste time

c. establish communications between management and the sales force in terms of location and activities

G. Using the telephone for territorial coverage.

1. Sales generating.

2. Order processing.

3. Customer servicing.

H. Territory and customer evaluation.

1. Territorial control is the establishment of standards of performance for the individual territory in the form of qualitative and quantitative quotas or goals.

2. Actual performance is then compared to these goals.

PowerPoint Slides

Test Questions

ABC's of Relationship Selling

Example Test Questions

Chapter 1

Question 1 : Which of the following statements about the importance of salespeople and selling is FALSE?

A.     Salespeople have no direct impact on the success of new products.
B.     No other profession generates more revenue in our economy than the selling profession.
C.     The orders produced by salespeople are largely responsible for the operation of the nation's
         distributing system. 
D.     Salespeople have direct impact on the constructing of manufacturing facilities,
E.     The efforts of salespeople are instrumental in keeping existing products on retailers' shelves. 

Answer : A

Question 2 : Order-                  salespeople obtain new and repeat business using a creative sales strategy
                      and a well-executed sales presentation.

A.    collector.
B.    taker.
C.    capture.   
D.    detail.
E.    getter.

Answer : E

Question 3 : A senior salesperson who calls on larger, more important customers is referred to as a:

A.     detail salesperson.
B.     sales management.
C.     order taker.
D.     key account salesperson.
E.     regional sales representative.

Answer : D

Question 4 : The Pareto principle indicates:

A.     successful salespeople should listen twice as much as they talk.
B.     that in any human activity, the biggest results usually arise from a small number of activities.
C.     the mind is like a muscle; if it is unused, it deteriorates.
D.     to persuade a prospect to purchase your product you must first persuade him to "buy" your service.
E.     none of A, B, C, D.

Answer : B

Question 5: Locating potential buyers is part of which step of the selling process?

A.     prospecting.
B.     preapproaching.
C.     trial close.
D.     meeting objections.
E.     follow-up and service.

Answer :  A

ABC's of Relationship Selling

Example Test Questions

Chapter 2

Question 1 : Any group within or outside an organization that has a stake in the organization's
                      performance is called a:

A.     stakeholder.
B.     bystander.
C.     proxy.
D.     legal representative.
E.     purveyor.

Answer : A

Question 2 : Two major influences on the ethical behavior of sales personnel are:

A.     employees and organizations.
B.     production and finance.
C.     "pushing" and "pulling".
D.     corruptness and law enforcement.
E.     publicity and advertising.

Answer : A

Question 3 : A "house account" is:

A.     a large account handled by someone from the home office or a key salesperson.
B.     a small account which a salesperson typically handles by telephone from his or her home.
C.     an account located in the same city as the salesperson's place of residence.
D.     the same thing as a "leased department."
E.     an account that the salesperson asks the sales manager to remove from his or her territory,
         usually because of its low volume.

Answer : A

Question 4 : Cooling-off laws apply only to :

A.     sales over $24.99, made door-to-door.
B.     sales made in out-of-town offices, regardless of value.
C.     sales for which verbal guarantees are given.
D.     sales over $50, made door-to-door.
E.     none of A, B, C, D.

Answer : A

Question 5: An ethical ombudsman:

A.     writes the company's code of ethics.
B.     interacts with the organizational stakeholders on a daily basis.
C.     is also called a whistle-blower.
D.     handles all negative publicity for an organization.
E.     is an official who assumes the role of corporate conscience.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 3

Question 1 : The                     model of buyer behavior assumes a prospect will respond to the sales
                     presentation in some predictable manner. 

A.     FAB.
B.     stimulus-response.
C.     buying process.
D.     selective choice.
E.     Maslow need hierarchy.

Answer : B

Question 2 : The statement "Made of pure vinyl," is an example of a/an:

A.     feature.
B.     segmentation basis.
C.     advantage.
D.     achievement.
E.     benefit.

Answer : A

Question 3 : The process by which a person selects, organizes, and interprets information is called:

A.     benefit recognition.
B.     perception.
C.     personality reflection.
D.     reception.
E.     retention.

Answer : B

Question 4 : There is a moderate level of buyer involvement in a/an              buying decision.

A.     routine.
B.     limited.
C.     extensive.
D.     selective.
E.     unconscious.

Answer : B

Question 5: Showing the buyer how to properly use the product and making realistic claims about
                    the products are two ways to:

A.     reduce satisfaction.
B.     lower the buyer's level of dissonance.
C.     increase dissatisfaction.
D.    reduce routine decision making.
E.     do all of A, B, C, D.

Answer :  B

ABC's of Relationship Selling

Example Test Questions

Chapter 4

Question 1 :                       is the act of transmitting verbal and nonverbal information and understanding
                    between seller and buyer.

A.    Communication.
B.     Encoding.
C.     Persuasion.
D.     Decoding.
E.     Broadcasting.

Answer : A

Question 2 :                      can distort communication between the buyer and the seller.

A.     Encoding.
B.     Feedback.
C.     Decoding.
D.     Noise.
E.     Caution Signals.

Answer : D

Question 3 : To change caution signals into acceptance signals the salesperson should:

A.     slow up or change his planned presentation.
B.     use open ended questions.
C.     carefully listen and respond to her buyer's message.
D.     project all acceptance signals.
E.     do all of A, B, C, D.

Answer : E

Question 4 : The text describes three levels of listening. Which of the following is the lowest level?

A.     marginal listening.
B.     non-evaluative listening.
C.     hollow listening.
D.     negligible listening.
E.     dubious listening.

Answer : A

Question 5:                          refers to a statement that substantiates claims made by the salesperson.

A.     KISS.
B.     Feedback.
C.     Enthusiasm.
D.     Source credibility.
E.     Proof statement.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 5

Question 1 : Which of A, B, C, D do not benefit when a salesperson develops greater selling knowledge?

A.     the salesperson's competitors.
B.     the salesperson him/herself.
C.     the salesperson's company.
D.     the salesperson's customers.
E.     all of A, B, C, D do benefit from a salesperson's greater knowledge.

Answer : A

Question 2 : Which of the following is NOT an example of a consumer sales promotion?

A.     free samples.
B.     contests.
C.     displays.
D.     coupons.
E.     all A, B, C, D ARE consumer sales promotions.

Answer : C

Question 3 : "3/15 net 60," is an example of a                    discount.

A.     trade.
B.     cash.
C.     noncumulative quantity.
D.     consumer.   
E.     cumulative quantity.

Answer : B

Question 4 : Markup is:

A.     the money available to cover the costs of marketing the product, operating the business, and profit.
B.     based on the product's selling price.
C.     based on the product's cost.
D.     often expressed as a percentage.
E.     all of A, B, C, D.

Answer : E

Question 5: Salespeople can use computers to:

A.    create a permanent lead file.
B.    help in territory management.
C.    help develop more persuasive presentations.    
D.    monitor their accounts more efficiently.
E.    do all of A, B, C, D.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 6

Question 1 : After the presentation, the next step in the selling process is:

A.    the approach.
B.    determining objections.
C.    follow-up.
D.    meeting objections.
E.     trial close.

Answer : E

Question 2 : A simple way to remember the qualifying process is to think of the word MAD. The letter D
                     reminds you to ask yourself if the prospect has the                    to buy.

A.     dexterity.
B.     determination.
C.     device.
D.     desire.
E.      deference.

Answer : D

Question 3 : An insurance salesperson might join a sales club to:

A.     meet other insurance salespeople.
B.     modify the organizational culture of its prospects.
C.     share leads and prospecting tips.
D.     practice new sales presentation.
E.     rewrite her own mission statement.

Answer : C

Question 4 : What is the best prospecting model for a salesperson to use?

A.     cold canvassing.
B.     direct mail.
C.     observation.
D.     public demonstration or exhibitions.
E.     none of A, B, C, D is always best.

Answer : E

Question 5: Developing friends within the prospect's firm can contribute to a salesperson's
                    success. Key elements to developing these friends are:

A.     respect.
B.     trust.
C.     friendship.
D.     timing.
E.     all of A, B, C, D are important elements.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 7

Question 1 : Which of the following is a reason for salespeople to plan their sales calls?

A.    to create professionalism.
B.    to build self confidence.
C.    to develop an atmosphere of goodwill.
D.    to increase sales.
E.     all of A, B, C, D are reasons to plan sales calls.

Answer : E

Question 2 : A good sales call objective should be :

A.     easily fulfilled.
B.     unencumbered with time restrictions.
C.     measurable.
D.     open-ended and non-specific.
E.     all of A, B, C, D.

Answer : C

Question 3 : Your                 contains the nucleus of the information used in your sales presentation.

A.     sales call objective(s).
B.     customer profile.
C.     company's marketing plan.
D.     business proposition.
E.     customer benefit plan.

Answer : E

Question 4 : The second of the five mental steps that a prospect goes through in deciding to buy from you is:

A.     insight.
B.     intent.
C.     inference.
D.     incubation.
E.     interest.

Answer : E

Question 5: In which of the mental steps does the product decide he should buy from you because there
                    are no remaining doubts in his mind?

A.    action.
B.    acceptance.
C.    arousal.
D.    conviction.
E.    purchase.

Answer : D

ABC's of Relationship Selling

Example Test Questions

Chapter 8

Question 1 : The                 , by definition, involves a persuasive vocal and visual explanation of a business proposition.

A.     sales presentation.
B.     preapproach.
C.     display premise.
D.     trial close. 
E.     benefit close.

Answer :  A

Question 2 : The               method of sales presentation is described as semi-structured.

A.     memorized.
B.     stimulus response.
C.     need-satisfaction.
D.     formula.
E.     problem-solving.

Answer : D

Question 3 : For which of the following products would a salesperson be most likely to use a problem
                     solution sales presentation?

A.     a set of nonstick cookware.
B.     lipstick, mascara, and facial powder.
C.     life insurance.
D.     a set of books by Charles Dickens.
E.     none of A, B, C, D.

Answer : C

Question 4 : In the beginning of a group sales presentation, a salesperson should:

A.     cater to the group's behavioral style.
B.     give quality assurances and qualifications.
C.     provide every member of the group with a copy of its customer profile.
D.     state his company's competitive advantage.
E.     do all of A, B, C, D.

Answer :  E

Question 5: Which sales presentation method is the all around best approach?

A.     memorized.
B.     problem-solution.
C.     need-satisfaction.
D.     formula.
E.     none of A, B, C, D is always best.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 9

Question 1 : Successful salespeople have learned a relaxation and concentration technique, called                  ,
                     which allows them to cope with stress.

A.    forced concentration.
B.    creative imagery.
C.    doubt referral.
D.    complimentary imaging.
E.     positive demonstrations.

Answer : B

Question 2 : Which approach is such a weak opening that it usually must be used in conjunction with another approach?

A.     introductory.
B.     referral.
C.     premium.
D.     complimentary.
E.     product.

Answer : A

Question 3 : The first category of question in the SPIN approach is called the                    question.

A.     stand-by.
B.     situation.
C.     speculation.
D.     sustaining.
E.     simple.

Answer : B

Question 4 : The fourth category of question in the SPIN approach is called the                    question.

A.     need-payoff.
B.     no way.
C.     not now.
D.     negotiation.
E.     never mind.

Answer : A

Question 5: "How often would you use four-wheel drive?" is an example of what category of question?

A.     direct.
B.     redirect.
C.     nondirective.
D.     rephrasing.
E.     specific.

Answer : C

ABC's of Relationship Selling

Example Test Questions

Chapter 10

Question 1 : The               refers to the elements the salesperson assembles to sell to prospects and customers.

A.    key account list.
B.    sales presentation mix.
C.    marketing mix.
D.    activities list.
E.    question mix.

Answer : B

Question 2 : "I suggest you buy the model 1000 copier," is an example of a/an:

A.     suggestive proposition.
B.     prestige suggestion.
C.     direct suggestion.
D.     autosuggestion.
E.      counter suggestion.

Answer : C

Question 3 : Which of the following can be used to induce prospect participation in the presentation?

A.     demonstrations.
B.     product use.
C.     visuals.
D.     questions.
E.     any of A, B, C, D

Answer : E

Question 4 : Which of the following is NOT an example of a visual aid?

A.     order form.
B.     a chart.
C.     the prospect.
D.     a model of the product.
E.      sales manuals.

Answer : C

Question 5: To have an effective demonstration in a sales presentation, you, as the salesperson, should:

A.     remember the importance of spontaneity and not rehearse.
B.     develop an all-purpose demonstration that can be used in all selling situations.
C.     encourage prospect participation in your demonstration.
D.     develop an elaborate, complex demonstration that will cause the prospect to ask questions.
E.     do all of the above.

Answer : C

ABC's of Relationship Selling

Example Test Questions

Chapter 11

Question 1 : When should the salesperson be prepared to handle the prospect's objection(s)?

A.    after the close.
B.    after the presentation.
C.    during the approach.
D.    after the demonstration.
E.     anytime during the sales call.

Answer : E

Question 2 : "True" objections come in two types:

A.     hopeless and conditional.
B.     practical and impractical.   
C.     agreeable and disagreeable.
D.     major and minor.
E.     physical and psychological.

Answer : D

Question 3 : The best example of a stalling objection is:

A.     "Your price is too high."
B.     "Sounds good, but I'm not really interested."
C.     "You've got to do better than that."
D.     "Sounds good! I'll buy 10 cases on your next visit."
E.     none of A, B, C, D.

Answer : D

Question 4 : The price/value formula teaches us:

A.     to smoke out stalling objections.
B.     that a good way to meet a price objection is by increasing the perceived value of your product.
C.     to handle objections in proper order, beginning with hidden objections and proceeding to price objections.
D.     that to a buyer price and cost are identical.
E.     to handle objections as they arise.

Answer : B

Question 5: What is the most commonly postponed objection?

A.     source.
B.     forestalling.
C.     no-need.   
D.     product.
E.     price.

Answer : E

ABC's of Relationship Selling

Example Test Questions

Chapter 12

Question 1 :  If your experience as a salesperson is typical, much of  the time, your close will take place:

A.     directly after the presentation.
B.     directly after the follow-up.
C.     before the preapproach.
D.     directly after the preapproach.
E.     after buying signals have been erased.

Answer : A

Question 2 : According to the text, the minimum number of times a salesperson should attempt to close is:

A.     one.
B.     two.
C.     three.
D.     four.
E.     dependent on the situation and the prospect.

Answer : C

Question 3 : "You like the size, weight, and feel of this tennis racket, right?" is an example of which close?

A.     summary of benefits.
B.     alternative choice.
C.     minor-points.
D.     assumptive.
E.     assertiveness.

Answer : A

Question 4 : Most sales negotiations focus on two major themes:

A.     price and value.
B.     delivery and invoice terms.   
C.     quality and delivery.
D.     price and delivery.
E.     availability and quality.

Answer : A

Question 5: The business proposition :

A.     should never be used during the sales presentation.
B.     is a weak selling tool.
C.     should be used only if the prospect has multiple objections.
D.     should follow the discussion of the product's FABs and marketing plan.
E.     typically does not help you close the sale.

Answer : D

ABC's of Relationship Selling

Example Test Questions

Chapter 13

Question 1 : A salesperson who promises customer service would be referring to :

A.    availability of warranties.
B.    speed of delivery.
C.    gift wrapping.
D.    convenient computer-to-computer ordering.
E.    all of A, B, C, D

Answer : E

Question 2 : The relationship of sales volume to sales calls is referred to as the:

A.     response function of the customer to the salesperson's calls.
B.     elasticity of sales curve.
C.     volume-value equation.
D.     cost-volume-profit equation.
E.     best predictor of the account skimming potential of the customer.

Answer : A

Question 3 : Sally has lost an account to a competitor, she should:

A.     treat the former customer like a prospect.
B.     quit contacting the customer.
C.     point out to the customer what's wrong with the competing product he has bought.
D.     show the customer that she considers his action a personal affront.
E.     do none of A, B, C, D.

Answer : A

Question 4 : Part of your job in handling a customer complaint is to:

A.     obtain as much relevant information from your customer as you can.
B.     express sincere regret for the problem.
C.     handle the complaint quickly.
D.     follow up to make sure the customer is satisfied.
E.     do all of A, B, C, D.

Answer : E

Question 5: Which one of the following is one of the "Seven Deadly Sins of Business Selling?:

A.     over planning.
B.     unlimited optimism.
C.     timidity.
D.     thoroughness after the sale.
E.     strong product knowledge.

Answer : B

ABC's of Relationship Selling

Example Test Questions

Chapter 14

Question 1 : The first of the seven key elements of proper time and territory management for the salesperson is:

A.    setting the salesperson's territory's quota.
B.    customer sales planning.
C.    account analysis.
D.    territory and customer evaluation.
E.    none of A, B, C, D

Answer : A

Question 2 : Dividing accounts on the basis of types of accounts and sales volume would be an example of:

A.     multivariate account segmentation.
B.     bisegmentation marketing.
C.     two-way sales division.
D.     total territory management.
E.     double positioning.

Answer : A

Question 3 : When you work in sales, your sales manager expects your frequency of sales calls on a
                      particular customer will increase as:

A.     the complexity of the products sold decreases.
B.     the number of orders placed diminishes.
C.     future sales potential decreases.
D.     the number of product lines sold increases.
E.     none of A, B, C, D.

Answer : D

Question 4 : Establishing a travel pattern to be used in working your territory is called:

A.     account grouping.
B.     account time allocation.
C.     customer sale planning.
D.     routing.
E.     scheduling.

Answer : D

Question 5: Molly is practicing territorial evaluation when she:

A.     engages in routing and scheduling activities.
B.     establishes territorial goals and evaluates her performance against those goals.
C.     divides the accounts in her territory according to their potential.
D.     limits the number of new accounts she will accept each year.
E.     develops a sales call objective, profile, benefit program and selling strategy for an individual customer.

Answer : B

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