Principle of sales notes-ch. 5-15

Amiables tend to make decisions slowly, building a consensus among people involved int eh decision. They avoid risks and change their opinions reluctantly. Salespeople selling to amiables should stress the product’s benefits in terms of its effects on the satisfaction of employees. Salespeople may have difficultly detecting an amiable’ s true feelings. They avoid conflict, they often say things to others to please them despite their personal opinions. They don’t like salespeople who agree to undertake activities and then do not follow through on commitments. Salespeople need to build personal relationships with amiables. They are particularly interested in receiving guarantees about a product’s performance. Analyticals- are low on assertiveness and low on responsiveness. They like fats, principles, and logic. Suspicious of power and personal relationships, they strive to find a way to carry out a tasks without resorting these influence methods. The steps John should take based on the social style training program in the correct order of occurrence. 1. He identifies whether he is emotional or rational. 2. He finds out whether his customer is emotional or rational. 3. He adjusts his behavior to match that of his customer. Why should salespeople know about their own products and their competitors' products? As the salespeople are regularly required to compare their products with their competitors' products Sales training methods, such as the social style matrix, that help develop adaptive selling skills emphasize the need to encourage salespeople to base their sales presentations on customer analysis . In the context of the types of sales presentations, a customized presentation given by a salesperson acts as a crucial step in cultivating a partnering relationship with customers because it __ What happens when salespeople classify customer types or types of sales situations? The complexity of selling decreases. In the context of the social style training program, the process of altering one's behavior to match or mirror that of his or her customer is known as style flexing . This system divides all people into four different types or categories that are based on two dimensions. The goals as a salesperson is to first identify which of the four types you are. You adjust your behavior to mirror or match your customer. Analytical- technical background. Achievement awards on wall. Office is work oriented, showing much activity. Conservative dress. Likes solitary activities (e.g., politics, team sports). Driver- technical background. Achievement awards on wall. No posters or slogans on office walls. Calendar prominently displayed. Furniture is placed so that contact with people is across desk. Conservative dress. Likes group activities (e.g., politics, team sports). Amiable- Liberal arts background. Office has friendly, open atmosphere. Pictures of family displayed. Personal momentos on wall. Desk placed for open contact with people. Casual or flamboyant dress. Likes solitary activities (e.g. reading, individual sports). Expressive- Liberal arts background. Motivational slogans on wall. Office has friendly, open atmosphere. Cluttered, unorganized desk. Desk placed for open contact with people. Casual or flamboyant dress. Likes group activities (e.g., politics, team sports). Sales training methods, such as the social style matrix, that help develop adaptive selling skills are limited because they categorize customers based on the form of communication.

failure . A single sales call can have more that one primary call objective: True CH.8 Making the sales call Arrange the processes that are part of the Four As that describe the selling process in the correct order of occurrence. Acknowledge, acquire, advise, assure . 1. A seller acknowledges a customer by greeting, welcoming, or honoring and earning trust. 2. A seller obtains information through needs analysis and its summary outlining the agreement between a customer and the seller about the current situation and its solution. 3. A seller creates specific options, sells the options’ benefits, watches for buying signals, and asks for the order from a customer. 4. A seller assures a customer after the sale by enhancing satisfaction with the purchase decision and providing with proper follow-up and referrals. Managing a customer’s opinion about a salesperson is known as impression management. In order to create a good first impression with a customer, salespeople should enter confidently with an erect posture, a lengthy stride, and a lively pace . How and what an individual does in one thing changes another person’s perceptions of other things the individual does. This seems to function in many sales calls and is referred to as the halo effect . Openings, which are used to gain a customer’s attention, are more important with partnering customers whom a salesperson has already met than with new customers. False Identify the components of the Four As that describe the selling process. Acknowledge, acquire, advise, assure . While making a sales call, in order to develop rapport with a customer, salespeople can converse about mutual friends, hobbies, current news and the like that usually breaks the ice for the actual presentation. This is often termed small talk . Impression management ceases when a salesperson makes an appointment with a customer. False Olivia, a salesperson, makes a sales call with Harry, a buyer. When asking questions about Harry’s buying needs during the call, Olivia should develop credibility and trust. According to generation gap experts, it can be easy for a millennial salesperson to relate to a Gen Z buyer. False What happens if a salesperson is perceived by a prospect as effective at the beginning of a sales call? The prospect will perceive the salesperson as effective during the rest of the call. Which of the following is an example of a closed question asked by salespeople to a customer during a sales call?  Did you participate in the decision-making process that resulted in your current supplier?  Have you ever experienced computer downtime as a result of an electrical storm?  Do you have a favored vendor? A method designed for salespeople to obtain a prospect’s attention and interest quickly and to make a smooth transition into the next part of a sales presentation is known as an opening .

story.  Use 28 point type for titles  Use Arial or Helvetica as the font. business is referred to as a(n) ______ ______ , also called formal bidding and formal competitive bidding. Competitive tenders. The process of strengthening a sales presentation by showing a prospect that the cost of a proposal is offset by added value is known as ___. Quantifying the solution. Identify a true statement about a request for proposal (RFP) issued by a prospective buyer. It should contain the buyer’s specifications for a desired product. In the context of a selling situation, how should a salesperson create a customer value proposition (CVP)?  By brainstorming with the sales team  By communicating with the customers. A buying firm decides to spend $200 million to by and of the following: a new computer system, a new production machine, or a controlling interest in another firm. To quantify a solution in a selling situation, salespeople should estimate the return the buying firm would have earned from this investment. This is referred to as the ___ opportunity cost. Identify a guideline for salespeople developing charts and related visuals for a sales presentation. Use layouts, scales, and art styles with consistency for a collection of charts and figures. To quantify a solution for retail buyers during a sales presentation, salespeople must ___. Prove turnover and profit margins. In the context of a selling situation, identify the main parts of a typical customer value proposition (CVP) created by a salesperson.  The product’s or service’s tangible and intangible benefits, including economical and emotional.  The salesperson offering himself or herself as the personal problem solver. To quantify a solution in a selling situation, salespeople estimate the return a buyer would have earned from a different use of the same investment capital. This return is known as the ___ ___. Opportunity cost. To process of strengthening a sales presentation by showing a prospect that the cost of a proposal is offset by added value is known as ___. Quantifying the solution CH.10 The Goal is to Build Relationships and Sell Value Which of the following is considered the worst type of objection from a buyer? The one the buyer refuses to disclose because a hidden objection cannot be dealt with. Which of the following are reasons for buyers to offer objections during the beginning of a sales presentation? When they disagree with statements that sellers A salesperson should understand that selling is easier when _____. Buyers raise their concerns.

socializers, and with customers they spend a lot of time talking about families, restaurants, and movies. _____. Help the buyers purchase a product or service they want or need. They should follow up promptly with a thank-you and reminder note. CH. 12 The bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements is known as ____. Negotiation. Typically, a good negotiator should be _____. Willing to take risks The initial proposal a selling firm makes at a negation session with a buyer is referred to as the _____. Opening position. The good guy-bad guy routine of win-lose negotiators is based on the _____. Hurt and rescue principle. Joseph, a salesperson, plans to conduct a negotiation meeting on the price of digital printers with a buyer team. In the context of making concessions effectively, Joseph should ______. Help the buyer team perceive the value of any concessions he agrees to. Match the philosophies that can guide negotiations (in the left column) with their descriptions (in the right column). Win-lose negotiation- A negotiator tries to win all the important concessions and thus triumph over an opponent. Win-win negotiation- A negotiator tries to secure an agreement that satisfies the negotiator and an opponent. Successful salespeople always make great negotiators. False The absolute lowest level a selling firm will accept at a negotiation session is known as the _____. Minimum position. During a negotiation meeting, Matthew, a member of a buyer’s team, asks a seller’s team for a 20% discount on wireless keyboards. Robert, another member of the buyer’s team, interrupts Matthew and says that the seller can offer an 18% discount as the buyer has been a good customer for a long time. The seller’s team perceives this as a win-win solution and accepts the buyer’s terms. Based on the strategies used by win-lose negotiators, this scenario exemplifies the concept of the _____. Good guy-bad guy routine . Isabella, a salesperson, plans to conduct a negotiation meeting with a buyer team. In the context of making concessions effectively, Isabella should _____. Know the best alternative to a negotiated agreement (BATNA)

categorized as: Analyticals Amiables Expressives Drivers. Focus on the needs and desires of the other party. the middle in terms of cooperativeness and assertiveness. Compromisers attempt to arrive at a win- win solution. Conflict-Handling Behavior Modes (3) People in the collaborating mode are both assertive and cooperative. Seek to maximize the satisfaction of both parties and reach a truly win-win solution. Have the motivation, skill, and determination to: Really dig into an issue or a problem. Explore all possible solutions. Information Control Selling team leader needs to limit access to all information. Buyers can learn about the seller’s team and plans, including the seller’s opening, target, and minimum positions. Buyers can become interested in the seller’s team membership and decision rules. Negotiation Meeting (1) Ambush negotiating or a sneak attack: Buyers engaging in a win-lose tactic of negotiating when the other party does not expect it. Occurs prior to the negotiation meeting or during installation of a new product. Seller should never negotiate in such a situation until prepared to deal with the issue completely. Negotiation Meeting (2) Preliminaries Conversation to break the ice before getting down to business. Ensuring a comfortable environment. Establishing a win-win environment. Preparing an agenda. Agenda: Listing of what will be discussed and in what sequence. General guidelines Listening carefully. Keeping track of issues discussed or resolved. Considering cultural differences. Dealing with Win-Lose Negotiators (1) Good guy-bad guy routine: Works on the hurt and rescue principle. Bad guy: Makes all sorts outlandish statements and requests Good guy: Offers a win-win solution by presenting a lower demand. Lowballing: occurs when one party intentionally underestimates or understates a cost. Used in buyer: seller negotiations in industrial situations. Best response is to say no. Dealing with Win-Lose Negotiators (2) Underscores the importance of getting signatures on contracts and agreements as soon as possible. Nibbling; Small extra, or add-on, the buyer requests after the deal has been closed. Variation of lowballing. Dealing with Win-lose negotiators (3) Emotional outburst tactics Used by buyers to make the sellers uncomfortable so they give in to their demands. Budget limitation tactic or budget bogey: Buyer team claims budget ceilings. Dealing with Win-lose Negotiators (4) Browbeating: Attempting to alter the selling teams enthusiasm and self-respect Response would be to practice negotiations jujitsu. Negotiation jujitsu : Salesperson steps away from the opponents attack and directs the opponent back to the issues being discussed. Other Win-Lose Tactics (1) Limited authority. Red herring Bringing up a minor point first to distract the other side from considering the main issue.

line sell. Cross-sell. Commitment- secure complete commitment from both companies. Manage change. Dissolution- limited relationships. Failure to monitor competitors or industry. Complacency. To be most effective at ensuring proper initial use of a product or service, a salesperson should wait until a user has trouble with the product or service. False What is the effect of improving customer satisfaction by companies? The companies will experience positive financial results . Arrange the stages of a buyer-seller relationship in the order of occurrence. Awareness Exploration Expansion Commitment Dissolution Identify the guidelines for salespeople to begin a buyer-seller relationship properly. Set the right expectations for buyers Keep a track of order processing In the context of helping service a product, identify the responsibilities of salespeople. They should get to know their company’s maintenance and repair personnel. They should be able to take care of minor adjustments and repairs. How can salespeople avoid complaints from buyers in the exploration stage of a buyer-seller relationship? By setting proper expectations for buyers. How can salespeople ensure correct use of a product after its initial delivery? By visiting new customers right after the delivery . Identify a true statement about cross-selling used by salespeople in the expansion stage of a buyer-seller relationship. It involves selling additional products that are not directly associated with the initial products. Identify a true statement about companies dealing with customer complaints. They can reduce the frequency of customer complaints. Which of the following steps is included in the exploration stage of a buyer-seller relationship? Handling complaints Service requirements by customers give salespeople a chance to show the customers that their company’s interest has not ended with the delivery of the product. True In the exploration stage of a buyer-seller relationship, salespeople should _____. Know that the buyers’ expectations are largely based on sales presentations. Cross-selling , used by salespeople in the expansion stage of a buyer-seller relationship, requires additional training. True Stages of Partnerships Awareness Exploration: Set correct expectations, Monitor order processing, ensure proper initial use, follow up, make personal visits, handle complaints, achieve customer satisfaction. Stages of Partnerships Expansion - Generate reorders, upgrade, full-line sell, cross-sell. Stages of Partnerships Commitment : Secure complete commitment from both companies. Dissolution: Limited relationships Failure to monitor competitors or industry. Follow-Up by the Salesperson (1) Calling to thank the customer and checking whether the product is working

Can occur at any point Can be caused by: Maintaining few personal relationships Failing to monitor competitor actions or the industry. Falling in complacency. Truly effective salespeople attempt to develop multiple relationships within an account 3-by-3 strategy Having tree personal relationships at three levels or the organization. Chances of getting surprised and losing an account are substantially reduced. Successful salespeople monitor competitor action even when the account seems invulnerable. Ways to be informed about competitor actions. Checking the visitor’s log at the front desk to see who has dropped by. Keeping up with competitor actions and asking buyers for their opinions. Developing relationships with the many potential influencers in an account. Thinking about the benefits competitors offer, what their products do, and what their selling strategies are. Plan of action to avoid Complacency Complacency: Failing to continue to work as hard to keep the business as salespeople did initially to earn the business. Salesperson should regularly audit his or her own customer service by doing the following: Understanding each individual’s personal characteristics Keeping a record of promises made Following up on customer requests and deliveries promptly Ensuring paperwork is done accurately and on time. Constantly trying to find something new in order to be ahead of the competition. Conflict Probable causes of customer-supplier conflict. Conflicting policies within the customer’s organization. Conflict between parts of the organization. Steps to avoid trust-destroying conflicts. Give a clear product description Define who has authority For both the customer and for the selling organization Recognize complaints as the beginning of major conflict. Steps to Repair Damage in Trust- Destroying Conflicts Observe and acknowledge Take responsibility for actions Gain support Put the experience in the larger context to affirm one’s commitment to the relationship. Shift focus from assigning blame to problem solving. Implement the solution Let go and move on. CH. 15- Managing your time and territory In the final stage of self-management process in selling, salespeople assess performance to determine whether the set goals will be reached. - True Identify the examples of performance goals in sales. The number of sales generated. The number of prospects identified. Conversion goals of a salesperson are important because they ______. Show how efficiently the salesperson uses resources to achieve performance

1 st stage: setting goals 2 nd stage: allocating resources and determining strategies to meet those goals. 3 rd stage: the salesperson implements the time management strategies by making sales calls, sending e-mails or direct mail pieces, or executing whatever action the strategy calls for. 4 th stage: final stage, the salesperson evaluates performance to determine whether the goals will be reached, and the strategies are effective or whether the goals cannot be reached and the strategies must change. goals. Activity goals of a salesperson are independent of his or her performance and conversion goals. False Match the ranks that salespeople assign to activities in their to-do lists (in the left column) with their descriptions (in the right column). Rank A-Activities that require immediate action Rank B- Activities that are of secondary importance Rank C- Activities that are likely to be done only if time permits. Arrange the stages of self-management process in selling the correct order of occurrence.  Set goals  Allocate resources and determine strategies to meet goals.  Implement time management strategies  Evaluate performance. Customer relationship management (CRM) programs can generate to-do lists and calendars by listing certain customer types or through a tickler file. True In the context of sales, goals relating to outcomes are known as _______ ______. Performance goals Unlike performance goals of a salesperson, the salesperson’s conversion goals _____. Express relative accomplishments . Salespeople should set activity goals as the last type of goal because they ______. Will be determined by the desired level of performance at a certain rate of conversion. When developing an effective schedule, which of the following should salespeople do as part of follow-up? Compare how much time an activity actually took with how long they thought it would take. In the context of customer relationship management (CRM) programs, a file or calendar that salespeople use to remember when to call specific accounts or take other actions is called a(n) ____ _____. Tickler file Lifestyle - Where and how you live, importance of family, personal growth, etc. Career - What you want to accomplish in your current position, your current company, your career. Sales Goal - Performance- Number of new accounts. Total sales revenue, sales in units.

Activities- Number of calls, Number of proposals presented, number of demonstrations given. Conversion goals -Number of new account calls necessary to sell one new account. Number of proposals necessary to sell one new account. Number of demonstrations necessary to sell one unit. Nature of Goals : Specific, measurable, achievable, realistic, time based. People tend to set goals and then forget them. To avoid this, goals should be written down and posted. Performance goals : Related to outcomes Should be set first. Example: Personal development goals. Activity goals : Behavioral objectives Reflect the efforts of the salesperson Intermediate goals Conversion goals : Measures of a salesperson’s efficiency. Benchmarking; Comparing one’s performance with the best in the organization. Helps one see where he or she is falling short. Setting Sales Goals : Activity goals should be set after performance and conversion goals are set. Determined by the desired level of performance at a certain rate of conversion. Resources to be Allocated and where to allocate them: Resources to be allocated : Physical resources: represent a cost to the company. Considered by salespeople as investments that yield sales. Where to allocate resources -Salespeople allocate resources by finding the customers or companies that are most likely to buy. Allocate selling resources to maximize the opportunities they offer. Account Classification and Resource Allocation Salesperson should classify customer on the basis of their sales potential. Must concentrate more on the most profitable customers, Less on the customers who offer little opportunity for profitable sales. Managing customers includes allocation of resources at the salesperson’s disposal in the most productive manner. Classification Schemes : ABC Analysis Ranks accounts by sales potential. Accounts with the greatest sales potential are prioritized. Effective for industries requiring regular contact with the same accounts. Classifies accounts as: A accounts: 20% of the salesperson’s accounts that could buy the most. B accounts: 80% of the salesperson’s accounts. C accounts: Noncustomers or accounts with low potential for sales. Relationship Analysis (1) Classifying accounts by relationship type. Methods Dividing relationships into: New Short relationships Long relationships Win-back, or customers that were lost to competitors but available to win back. Relationship Analysis (2) Using the types of relationships. Transactional Functional Relational partnerships Strategic partnerships Classification Schemes: Grid Analysis (1) Sales call allocation grid Strength of Position Segment 1- Strong (high) Accounts are very attractive Strength of Position Segment 2- Attractiveness : (high)

Classifies accounts on the basis on the company’s competitive position with an account along with the account’s sales potential. Helps determine which accounts should receive more resources. Classification is determined by the salespersons evaluation of the account on the dimensions of account opportunity and strength of position. Effective tool for analyzing current customers. because they offer high opportunity, and the sales organization has a strong position. Sales call strategy: Accounts should receive a high level of sales calls because they are the sales organization’s most attractive accounts. Accounts are potentially attractive because they offer high opportunity, but the sales organization currently has a weak position with accounts. Sales call strategy: Accounts should receive a high level of sales calls to strengthen the sales organization’s position. Strength of Position Segment 3- Strong (low) Accounts are very attractive because the sales organization has a strong position, but future opportunity is limited. Sales call strategy: Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization’s position. Strength of Position Segment 4- Strong (low) Accounts are very unattractive because they offer low opportunity, and the sales organization has a weak position. Sales call strategy: Accounts should receive a minimal level of sales calls and efforts should be made to selectively eliminate or replace personal sales calls with telephone sales calls, direct mail, etc. Classification Schemes: Grid Analysis (2) Companies looking to increase account share, rather than the number of accounts. Customer share, or account share: Average percentage of business received from a company’s accounts in a particular category. Share of wallet: Similar to customer share but for an individual. Classification Schemes: Investing in Accounts (1) Salespeople invest time, free samples or trials, customer training, displays, and other resources in their customers. Companies use predictive modeling to determine which accounts are likely to be more productive . Predictive modeling helps salespeople determine where to invest resources . Classification Schemes: Investing in Accounts (2) Pipeline analysis is used to identify and manage sales opportunities. Also known as opportunity management. Assisted by customer relationship management or CRM software. Determines conversion ratios. Ensures that enough opportunities to reach sales goals are created. Requires identifying which stage an account is in. Tips for Managing Time as a Salesperson Starting early Managing responsiveness Scheduling in advance Using downtime wisely. Implementing the Time Management Strategy Good understanding of work habits is a prerequisite for effective time planning. Time for prospecting and customer care should be included in daily activities. Some companies set guidelines. Guidelines are based on experience with Activities Planning Process Make a list activities that should be performed. Determine the priority of each activity. Estimate how much time each activity will take. Develop a schedule for doing the activities. Compare the estimated time with the actual time spent on the activity. Planning Process: Points to Consider Many CRM program incorporate time- planning elements. Can generate to-do lists and calendars through a tickler file or by listing certain customer types. Tickler file: File or calendar used to

buyers and when they are available. Designed to maximize prime selling time. remember when to call specific accounts or take actions. Plans need to be flexible. Schedules should be revised if more time for one account leads to better sales results. Techniques to increase the Time Spent with Customers (1) Routing: Planning sales calls in a specific order to minimize travel time. Types of sales call patterns that can be efficient with effective routing. Routine call patterns: Seeing the same customers regularly. Variable call patterns: Calling on accounts in an irregular order. Types of routing plans Circular routing Leapfrog routing Straight-line routing. Cloverleaf routing. Techniques to increase the time spent with customers (2) Zoning: Dividing the territory into zones based on ease of travel and concentration of customers. Each area is the center of a zone. Works best for; Compact territories. Situations in which salespeople do not call regularly on the same accounts. Salespeople can combine zoning with routing using a circular approach within a zone. Techniques to Increase the Time spent with customers (3) Using e-mail and telephone. Does not interfere with other pressing responsibilities of the customer and he or she can respond whenever they have time. Enables the salesperson to make more customer care calls. Not all customer care activities should be handled by e-mail or phone. Can be used profitably for prospecting. Handling Paperwork and Reports Paperwork provides information that helps: A salesperson determine what should be improved. Management decide what types of marketing plans work and should be used again. Ways to minimize the impact of paperwork on prime selling time. Think positively about paperwork and do not let paperwork accumulate. Use nonproductive time. Set aside of block of nonselling time. Evaluating Performance (1) Postcall analysis. After every call, salespeople write down what occurred and what needs to be done. Information can be filled into a printed form or entered into a territory management program. Information can be used when preparing for the next call. Should include reflecting on whether initial sales call objectives were reached. Activity analysis Salespeople set activity goals when planning their time in order to evaluate their own performance. Helps salespeople manage their efficiency and reduce Sales Evaluation Measures (1) Evaluation measure: Conversion rate Calculation How to use it For total performance by customer type by product type Number sales number of calls Are your strategies effective? Do you need to improve by working smarter (that is , a better strategy to improve your hit rate)? Compare yours to

your company and/or industry average. Sales achievement Actual sales in dollars by sales goal in dollars Is your overall performance where you believe it should be? Are you meeting your goals? Your company’s goals? Commission Actual commission in dollars by earnings goal Is your strategy delivering the dollars you need? Sales Evaluation Measures (2) Evaluation Measure: Sales volume, in dollars How to Use it By customer type Where are you most effective? Do you need help with a customer type? By product category Are you selling the whole line? By market share How are you doing relative to your competition? By new customers Are you building new business? By new customers Are you building new business? By old customers Are you servicing Sales Evaluations Measures (3) Evaluation Measure: Sales calls How to use it Prospecting calls Account calls Sales presentations Call frequency by customer type Are your efforts in the right place?

your accounts properly?