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Selling and Negotiation Skills

Nội dung chính

    What information is needed for a salesperson to make a successful sales presentation?What is the single most important aspect of a sales presentation?What are the elements of sales presentation?Which goals does a salesperson need to accomplish during the first part of a sales presentation?

L 8. SOME IMPORTANT STRATEGIES & TECHNIQUES

Prof. Karen Reuben

The feature-benefit strategy

Some Important Strategies

Prof.
Karen Reuben

The feature – benefit strategy

    Famous words of Frederick W. Smith, founder of Federal Express, who first proposed the concept of overnight delivery, – “We thought we were selling transportation of goods, actually we are selling ‘peace of mind’.”Successful Sales Presentations translate product features into buyer benefits, because –
    ‘people do not buy features, they buy benefits.’Only when a product feature is converted into a buyer benefit, does it make an impact on the buyer.

Prof. Karen Reuben

Difference between features and benefits.

    Features are anything that can be seen, felt, seen or measured. It answers the question- what is it?
    Features include, design, colour, durability, craftsmanship, warranty etc.,They are technical facts about a product, how it was developed, processed, or manufactured.Product features are generally described in the technical section of a brochure or proposal.

Prof. Karen Reuben

Difference between features and benefits

    A product benefit however is something that provides a personal gain or advantage to the customer / user. It is intangible.It answers the question … “So what’s in it for me? – How will I benefit from using the product?” Benefits refer to the ‘customer-derived’ definition of the basic needs and wants that are being satisfied.Some benefits may have more value in the eyes of the customer, therefore high performance
    sales-people, work hard to discover which benefits, the customer really cares about.It is as important to prove the product/ service benefits, as it is to demonstrate the capabilities of your product.

Prof. Karen Reuben

Using Bridge statements

    A bridge statement is a transitional phrase that connects a
    statement of features, with a statement of benefits.It helps customers to relate the features of your product or service with a statement of benefits.For e.g. while introducing a new snack food to a retail chain, you mention – “It is nationally advertised, which means you will benefit from more presold customers”Some people introduce the benefit first and then connect the feature using the word ‘because’. E.g. “You will experience a faster
    turnover, because the first order includes an attractive display rack”

Prof. Karen Reuben

Feature-benefit approach complements consultative selling

    Converting product features into benefits is the integral part of consultative selling. The sales person should approach the customer with a complete knowledge of the features and how they are related
    to specific customer benefits.Once the buyers needs are identified through questioning, the sales person should then discuss features/ benefits that specifically apply to that person. In this way, the sales presentation is individualised for each customer.A sales presentation tailored to individual customers communicates the message “You are important and I want you to be a satisfied customer”.

Prof. Karen Reuben

The SPIN Selling Technique

Some other strategies

Prof. Karen Reuben

SPIN Selling

    SPIN Selling, a great model, was the brainchild of Neil Rackham who authored a book of the same name in 1988. SPIN Selling is based on extensive
    research by Rackham and his company, Huthwaite. They examined more than 35,000 large, complicated sales scenarios. After analysing these sales calls they were able to put to rest a variety of traditional myths about closing.The survey showed that in successful sales calls it’s the buyer who does most of the talking, which means that the salespeople are asking questions.Asking questions means that the salesperson is building rapport with the
    buyer, which allows the buyer to feel more comfortable while talking.

Prof. Karen Reuben

SPIN Selling Technique

    SPIN Selling proposes there are four types of questions, thus SPIN stands for

      S ituation questions P roblem questions I mplication questions N eed-payoff
      questions

    Situation Questions giảm giá with the facts about the buyers existing situation. Problem Questions ask about the buyer’s pain and focus the buyer on this pain while clarifying the problem, before asking implication questions. These give Implied Needs.

Prof. Karen Reuben

SPIN Selling Technique

    Implication Questions discuss the effects of the problem, before talking about solutions, and develop the seriousness of the problem to increase the buyer’s motivation to change. Need-Payoff Questions get the buyer to tell you about their Explicit Needs and the benefits your solutions offers, rather than forcing you to explain the benefits to the buyer. Getting the buyer to state the benefits has greater impact while sounding a lot
    less pushy. What these questions do is probe for explicit needs. The research uncovered the following facts :

The first students trained in the “SPIN” model showed an average of 17% improvement in sales results. People do not buy from salespeople because they understand their products but because they felt the salesperson understood their problems

Prof. Karen Reuben

Counselor Selling Model – by Larry Wilson

Some other strategies

Prof. Karen Reuben

Counselor Selling

    The Counselor Salesperson (CSP) uses a 4-step consultative selling process that helps salespeople transition from simply making transactions to solving real business problems. CSP focuses on adopting a Counselor Mindset, a mindset that builds profitable, long-term customer relationships. CSP establishes a basic philosophy of selling with a common and easily understood approach. CSP provides a win-win approach to selling that emphasizes problem solving from the customer’s point of view. Counselor Mindset How to understand the selling process as a function of the buying
    process and learning how to see the role of the salesperson as a consultant or counselor.

Prof. Karen Reuben

Counselor Approach Model

Prof. Karen Reuben

Counselor Selling

    Relating- How to
    build trust the beginning of a consultative relationship. How to establish credibility, express empathy and come to agreement on the purpose, process and payoff of the relationship. Discovering – How to understand the buyer’s needs by asking appropriate fact and feeling finding questions and learning how to listen and organize information and learning to get the buyer’s agreement on the true nature of the problem. Advocating – How to develop and present solutions that clearly address and solve the customer’s business problems. How to bring out concerns, resolve objections and agree on next steps. Supporting – How to reinforce and tư vấn the customer’s decision to buy. How to avoid and resolve dissatisfaction. And how to ask for new business and referrals.

Prof. Karen Reuben

Preparing Sales Presentations

Some other strategies

Prof. Karen Reuben

Creating the Consultative Sales Presentation

    Today we need a broader range of presentations to cater to the specific client requirements discovered during a sales call.Once
    we assess their needs, then we select the type of product/service that will best meet that need and then decide whether to use

      an informative, persuasive or a reminder presentation to show case the solution.

Prof. Karen Reuben

Informative Presentation strategy

    Clarity is important
    in any presentation but more so in a presentation whose primary purpose is to inform.The informative presentation, emphasises factual information often taken from technical reports, company prepared sales literature, or written testimonials from persons who have used the product.This type of presentation is normally used to introduce new products or services and appeals to the technical buying influence.Salespersons need to keep in mind
    the “less is more” concept and avoid giving too much information and detail. This type of presentation is useful for complex and high tech products that can be custom fitted for unique needs. E.g. cooling solutions.It is generally stated factually and devoid of too much emotion.

Prof. Karen Reuben

Persuasive Presentation Strategy

    The major goal of the persuasive presentation is to influence the prospect’s beliefs, attitudes or behaviour and to encourage buyer action.In the field of personal selling, persuasion is an acceptable strategy, once a need has been identified and a suitable product has been selected.When it is clear that the buyer can benefit from the ownership of the product or service, an enthusiastic and persuasive sales presentation is usually
    appropriate.Can be used to convince the user buying influence and the economic buying influence. With the economic buying influence however, the emotional appeal is lower.

Prof. Karen Reuben

Reminder Presentation Strategy

    Studies show that awareness of a company’s products and services decline after a period of time,
    particularly when promotion is stopped.This is where the salesperson plays a role to help maintain a client’s awareness and familiarity with their product lines.Used particularly to reinforce benefits and thus maintain market share.Advertisers the retail level frequently use this strategy. Salespersons understand the value of ‘repetition’, as most recommendations need reinforcement before they are accepted.

Prof. Karen Reuben

Points for Value Added Presentations

Some other strategies

Prof. Karen Reuben

Guidelines for preparing Value Added Presentations

    Here are some points to bear in mind while preparing an effective persuasive presentation1. Place special emphasis on the relationship – Robert Cialdini said “People like those who like them.” Establishing a good rapport is a prerequisite.2. Sell Benefits and Obtain Customer Reactions – People do not buy an auto battery, they buy a sure start on a cold morning. So every feature needs to be converted to a buyer benefit, then obtain a reaction from the customer, by asking an arritude question.3. Minimise the negative impact of the
    change. Whenever possible you should try to help the customer view the change in the positive way, so that they are more acceptable to change and are not threatened by it.

Prof. Karen Reuben

Guidelines for preparing Value Added Presentations

    Place the strongest appeal the beginning or the end – Research shows that appeals made the
    beginning or the end of a presentation are most effective than those given in the middle.Target Emotional Links – Emotional links are the connectors between your message and the internal emotions of the prospect. Some common emotional links are those related with problems the customer is facing like quality, timely delivery, reduced expenses etc.Use Metaphors, Stories and Testimonials – Metaphors sometimes called figurative
    language, are highly persuasive sales tools. They help suggest pictorial relationships between objects or ideas. They command attention and help maintain interest.

Prof. Karen Reuben

Guidelines for preparing Value Added Presentations

    Strengthen the Presentation Strategy with an effective Demonstration – Many salespeople encounter
    doubt or skepticism during the sales presentation and the prospect wants some kind of assurance or proof.

      The following can be used in a demonstration – the product itself, photos and illustrations, graphs and charts, testimonials and case histories, bound paper presentations, etc.

    Keep your presentation Simple and Concise – The best way to achieve this is to preplan your sales call to decide what you are going to say. Learn how to use the Power-Point software effectively to create a professional slide presentations.

Prof. Karen Reuben

Closing the sale – the beginning of the partnership

Some important strategies

Prof. Karen Reuben

Guidelines for Closing the sale.

    Closing, or obtaining commitment to the order, should be viewed as the logical outcome of the well-planned strategy.Closing should be attempted after you have provided the relevant benefits to the client and dealt with any resistance or issues in the mind of the customer.One should avoid surprises the close – many a times sales people make the mistake of waiting until the close to reveal information that may come as a
    surprise to the prospect. The surprise could be additional charges for some necessary accessories, extra taxes, limited warranty terms, etc. These could threaten the sale.Display self-confidence the time of the close – so that the customer feels confident while giving you the order as well.

Prof. Karen Reuben

Guidelines for Closing the sale.

    Ask for the order – Michael LeBoeuf reports that two-thirds of all sales calls conclude without the salesperson asking for the order. Fear of rejection holds them back and some give up, as soon as a customer says the first ‘no’. If you have understood the customers problem correctly and know that you have the right solution for him, don’t give up easily. Seek clarity on their perceptions and try to resolve the issue and attempt to close again.Recognise
    closing clues – A closing clue is an indication, either verbal or non-verbal, that the prospect is preparing to make a buying decision. They could be verbal or non verbal clues. A trial close can be attempted when you encounter these clues.

Prof. Karen Reuben

Guidelines for Closing the sale.

    Verbal clues can be

      Questions – like “How soon can we get delivery?”, “Do you have a credit plan for this product?”Recognitions – Any positive statement concerning your product or company – like “Your product fits our requirements well”Requirements – Sometimes customers outline a condition which should be met such as delivery date, staff training, certifications. If you are able to meet this requirement, it may be a good time to try
      to close the sale.

Prof. Karen Reuben

Guidelines for Closing the sale.

    Nonverbal clues – Nonverbal clues can be difficult to detect and once detected can be difficult to interpret. Nevertheless, one should look out for positive body toàn thân movement, facial expression, tone of voice. etc.The following
    actions may suggest that the prospect is ready to buy

      The prospect may widen his eyes and genuine interest is clear from his face.The prospects begins to shows agreement to your suggestions by noddingThe prospect leans forward and appears to be intent on hearing your proposal.The prospect begins to study the sales literature closely.

    When you observe or sense one of these nonverbal
    buying clues, do not hesitate to ask for commitment.

Prof. Karen Reuben

Specific methods for close

    Summary of benefits close – The goal in this type of close is to re-emphasize the value-added benefits that the buyer seems interested in, that can help bring about a favorable decision.Assumptive close –
    here you ask the customer to make a minor decision, assuming that the customer has already decided to buy. E.g. Will you be taking the installment payment option or the single payment option? This is a subtle way to bring the sales process to a close.Special concession close – This close method offers the buyer an extra incentive to act immediately, in the form of concessions or additional benefits. One should be careful when you are offering this concession as
    some buyers are skeptical of concessions.Multiple Options close – This type of close allows flexibility to the buyer to examine several different options and let’s the salesperson assess the level of interest in each one.

Prof. Karen Reuben

Specific methods for close

    The Balance Sheet close – This
    method is useful for those customers who may have a difficulty making a decision. E.g. to decide whether to buy now or later. The Balance Sheet can be prepared by drawing a ‘T’ and listing the reasons to buy now and the reasons for not buying now. The buyer and seller discuss the pros and try to reach an agreement through dialogue.Management Close – To close a major account, salespeople sometimes call on the top management for help. One good reason for doing so is
    to make the prospect feel important and that your whole company’s resources will be available to tư vấn them.Direct Appeal Close – is a simple and clear method of simply asking for the order. Many buyers find the straightforward approach quite attractive. Timing however is important here, for it to be successful.

Prof. Karen Reuben

Confirming
the partnership

Some important techniques

Prof. Karen Reuben

Confirming the partnership

    Once the sale is closed, it is important to re-build the customer’s confidence. This confirmation step is essential to reassure the customer that he has made a good decision and that you will live up to expectations, as very often people experience ‘buyer remorse’.
    Buyer remorse is a common emotional response that can take the form of ‘feelings of regret, fear or anxiety’.Another important step after closing an order is to thank the customer for the business, even if the order is small. In some cases a follow-up thank you letter is appropriate. This sets a strong foundation for the business relationship and facilitates future orders.

Prof. Karen Reuben

What to do when the answer is ‘no’?

    Abraham Zalezik, professor emeritus of HBS, says that the way we handle disappointment is often more important in reaching success, than our focus on success itself.Never treat a lost sale as a defeat. When you adopt the win-win relationship strategy, there is never a winner and a loser. Besides, a strong display of disappointment or resentment is likely to close the door
    to future sales. If you recall an important point that was overlooked earlier, don’t hesitate to mention it after an initial ‘no’. It could re-open the door and set the stage for the close. A third party can sometimes help reopen the door and set the stage for a close.

Prof. Karen Reuben

What information is needed for a salesperson to make a successful sales presentation?

Structure of a Sales Pitch. A Stellar Cover Slide.. A Value Proposition.. A Powerful Story.. Enticing Solutions.. Proofs.. A Clear Call-to-Action..

What is the single most important aspect of a sales presentation?

Having your prospect physically involved is the single most important aspect in the presentation process.” Strengthen presentation with effective demonstration (shows how features & benefits can solve problems).

What are the elements of sales presentation?

Here are seven of the most important elements to a good sales pitch.. Element 1: Thorough Research. … . Element 2: Define The Problem & Offer a Solution. … . Element 3: Make Compelling Points. … . Element 4: Make It Urgent. … . Element 5: Add Additional Value. … . Element 6: Focus on Benefits. … . Element 7: Follow Up..

Which goals does a salesperson need to accomplish during the first part of a sales presentation?

Which goals does a salesperson need to accomplish during the first part of a sales presentation? The salesperson and the organization must deliver the right product or service on time. The salesperson must be ready to giảm giá with questions or issues promptly.
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