CH-4-6 Communication Skills – SELL: Trust Based Professional Selling : Book Guide

This Document Contains Chapters 4 to 6 Chapter Four—Communication Skills Learning Outcomes After completing this chapter, you should be able to: 1. explain the importance of collaborative, two-way communication in trust-based selling. 2. explain the primary types of questions and how they are applied in selling. 3. illustrate the diverse roles and uses of strategic questioning in trust-based selling. 4. identify and describe the five steps of the ADAPT questioning sequence for effective fact-finding and needs discovery. 5. discuss the four sequential steps for effective active listening. 6. discuss the superiority of pictures over words for explaining concepts and enhancing comprehension. 7. describe and interpret the different forms of nonverbal communication. Chapter Outline I. Introduction II. Sales Communication as a Collaborative Process A. Verbal Communication: Questioning III. Types of Questions Classified by Amount and Specificity of Information Desired A. Open-End Questions B. Closed-End Questions C. Dichotomous/Multiple-Choice Questions IV. Types of Questions Classified by Strategic Purpose A. Probing Questions B. Evaluative Questions C. Tactical Questions D. Reactive Questions V. Strategic Application of Questioning in Trust-Based Selling A. SPIN Questioning System VI. ADAPT Questioning System A. Verbal Communication: Listening VII. Using Different Types of Listening VIII. Active Listening A. Verbal Communication: Giving Information IX. Understanding the Superiority of Pictures over Words A. Impact of Grammar and Logical Sequencing XI. Nonverbal Communication A. Facial Expressions B. Eye Movements C. Placement and Movements of Hands, Arms, Head and Legs D. Body Posture and Orientation E. Proxemics F. Variations in Vocal Characteristics G. Speaking Rates and Pause Duration H. Pitch or Frequency I. Intensity and Loudness J. Using Nonverbal Clusters Exercises Developing Professional Selling Knowledge 1. Explain why talking with buyers rather than talking at buyers is critical to success in selling. Answer: Today, success in selling a product requires the establishment of mutually beneficial relationships with the customers. To build such relationships, the salesperson has to identify the needs of the customer. This can be done only through interactive discussion (i.e., talking with the buyer and sharing information). In addition, talking with buyers rather than talking at buyers helps build trust, which is critical for building successful relationships. Students’ answers will vary. However, students should address the points mentioned above. 2. Discuss how salespeople use effective questioning to maintain subtle control over the buyer-seller communication dialogue. Answer: Salespeople can maintain subtle control over the buyer-seller communication dialogue by using effective questioning to guide the course and depth of the conversation. Salespeople can use questions to shift the conversation to an appropriate topic, control the depth of conversation on the topic, and redirect the conversation when the topic’s usefulness diminishes. Salespeople can also use questions to gain, regain, and hold the buyer’s attention. Finally, salespeople can use questions to control the progression of the sales call, moving the customer from the introduction stage all the way to the commitment stage. Students’ answers will vary. However, students should address the points mentioned above. 3. Distinguish between open-end and closed-end questions and describe how each of these question formats might best be used in the trust-based selling process. Answer: Open-end questions encourage free response rather than limiting the buyer’s response to one or two words. Closed-end questions limit the buyer’s response to one or two words. These questions usually ask the buyer to respond with either yes or no. Generally, salespeople use open-end questions early on in the sales call, especially during the needs discovery phase. These questions encourage the buyer to respond freely and allow the salesperson to better understand the unique situation of the buyer. Salespeople use closed-end questions throughout the sales call. Generally, salespeople use closed-end questions to clarify or confirm ideas/information discussed during the sales call. Salespeople also use closed-end questions when seeking the buyer’s commitment (i.e. asking for the order). Students’ answers will vary. However, they should address the points mentioned above. 4. Explain the difference in the uses of probing, evaluative, tactical, and reactive questions in trust-based selling. Answer: Probing questions are used to dig below the surface and uncover detailed information. They are especially useful during need discovery and objection handling. Evaluative questions help the salesperson uncover the buyer’s feelings and attitudes. These questions may be either open-end or closed-end. Tactical questions help the salesperson control the flow and direction of the conversation. Salespeople use these questions to redirect the focus of the conversation when the present topic is of little value or is non-productive. Salespeople use reactive questions when responding to information provided by the buyer. Typically, salespeople use these questions to get the buyer to elaborate on something he or she just said. Students’ answers will vary. However, they should address the points mentioned above. 5. Explain the superiority of using verbal communication skills to create mental pictures compared to simply using words in sales dialogue with buyers. Answer: Salespeople need to communicate effectively and efficiently given the relatively short amount of time they spend with buyers. When words are used to create mental pictures in the minds of buyers during the sales dialogue, the intended message is more efficiently conveyed and understanding is enhanced. Studies in cognitive psychology have long supported the contention that pictures are more memorable than words. To increase the impact of a conversation, salespeople should incorporate (where appropriate) relevant visual aids that support the idea they are attempting to convey. Students’ answers will vary. However, they should address the points mentioned above. 6. Identify and explain each of the individual steps involved in the SPIN sequence of questioning. Develop two example questions for each. Answer: SPIN is a progressive questioning technique that is designed to uncover needs (of the buyer) that the salesperson can satisfy with his or her market offer. SPIN is an acronym for the following four types of questions making up the multiple question sequence: • Situation questions—are fact-finding questions that ask the buyer to provide information about his or her background and/or existing situation. “Who are your current suppliers?” and “What methods of advertising do you use currently?” are examples of situation questions. • Problem questions—probe the buyer for specific difficulties or areas of dissatisfaction. “Have you ever had any problems with your current suppliers?” and “What problems have you experienced with your current methods of advertising?” are examples of problem questions. • Implication questions—ask the buyer to consider the ramifications of the problems uncovered by the problem questions. These questions help motivate the buyer to want to solve the problems. “How is your business affected when your suppliers are late with deliveries?” and “What is the effect of ineffective advertising on your profitability?” are examples of implication questions. • Need-payoff questions—focus the buyer’s attention on the benefits of solving the problem. As with implication questions, these questions help motivate the buyer to want to solve the problem. “How would your business be affected if your suppliers were never late with deliveries?” and “What impact would effective advertising have on your bottom line area?” are examples of need-payoff questions. Students’ answers will vary. However, they should address the points mentioned above. 7. Identify and explain each of the individual steps involved in the ADAPT sequence of questioning. Develop two example questions for each step. Answer: Like SPIN, ADAPT is a progressive questioning technique designed to uncover needs that the salesperson can satisfy with his or her market offer. ADAPT is an acronym for the following five stages of strategic questioning and represents what the salesperson should be doing at each stage: • Assessment questions—are designed to elicit factual information about the customer’s current situation. “With how many suppliers do you currently work?” and “Do you own or lease your cleaning equipment?” are examples of assessment questions. • Discovery questions—arise from the information gained from the preceding assessment questions and seek to uncover problems or dissatisfactions (that the salesperson can positively address) the buyer is experiencing. “How well are your current suppliers performing?” and “Have you ever had any trouble getting your leased equipment serviced?” are examples of discovery questions. • Activation questions—are designed to motivate the buyer to want to solve the problem or dissatisfaction discussed in the previous stage. These questions ask the buyer to consider the ramifications of the problem. “How do the problems you are currently experiencing with your suppliers affect your production efficiency?” and “Do you ever experience downtime while waiting for your leased equipment to be serviced?” are examples of activation questions. • Projection questions—ask the buyer to describe what life would be like if the problem(s) or dissatisfaction(s) were eliminated. These questions are also designed to motivate the buyer to want to solve the problem. “If your suppliers were always on time and orders were always accurate, how would your production efficiency be enhanced?” and “If downtime were eliminated, how would your productivity be affected?” are examples of projection questions. • Transition questions—are designed to help the salesperson make a smooth transition from needs discovery to the presentation of a solution. “Would you be interested in hearing about how you can eliminate the problems you are currently experiencing with your suppliers?” and “Are you interested in learning how you can lease your equipment and still eliminate downtime?” are examples of transition questions. Students’ answers will vary. However, they should address the points mentioned above. The ADAPT sequence of questioning includes: 1. Ask: Start with a broad, open-ended question to gather general information. • Example: "Can you describe the main challenges you're facing with your current system?" • Example: "What are your primary goals for this project?" 2. Discover: Dig deeper to uncover specific needs or problems. • Example: "What issues have you encountered with your current workflow?" • Example: "How do these challenges impact your team's productivity?" 3. Advocate: Propose potential solutions or alternatives based on discovered needs. • Example: "Have you considered integrating a new software to streamline processes?" • Example: "What would be the impact if we introduced automated reporting tools?" 4. Propose: Suggest a tailored solution or plan of action. • Example: "Would a customized training program address the skills gap you've identified?" • Example: "How would adopting our solution align with your project goals?" 5. Test: Seek feedback to ensure the proposed solution meets needs. • Example: "What aspects of this solution do you find most beneficial?" • Example: "Are there any concerns or adjustments needed to better fit your requirements?" 6. Confirm: Validate the solution’s effectiveness and address any remaining concerns. • Example: "Do you feel confident this solution will solve your main issues?" • Example: "Is there anything else you'd like to modify or discuss before moving forward?" 8. Discuss how the four sequential elements of sensing, interpreting, evaluating, and responding (SIER) combine to create what is referred to as active listening. Answer: Active listening is the cognitive process of actively sensing, interpreting, evaluating, and responding to the verbal and nonverbal messages of present or potential customers. In other words, it means concentrating on identifying the message the buyer is trying to convey through both verbal and nonverbal communication. Sensing is the process of receiving the verbal and nonverbal messages sent by the buyer. It requires the salesperson to both hear what the buyer is saying and see how the buyer is putting the message across (i.e. body language). Interpreting is the process of drawing meaning from the message (both verbal and nonverbal). Salespeople must make sure they consider the buyer’s experiences, knowledge, and attitudes when deriving meaning from the message. Evaluating is the process of determining the extent to which the salesperson agrees with what the buyer is communicating. Salespeople should wait until the buyer has finished communicating his or her message and until they are sure they understand the message before evaluating it. Finally, responding is the process of providing the buyer with feedback, verbal and/or nonverbal, related to the message. The salesperson should use responses to communicate understanding, encourage elaboration, and control the flow of the conversation. 9. Explain what is meant by nonverbal clusters and why they are important to salespeople. Answer: Nonverbal communication is often broken down into several individual components. Nonverbal clusters are groups of related expressions, gestures, and movements. A single isolated gesture or movement cannot be taken as a reliable indication of the true intent or meaning of a message. Rather, sensing and interpreting groups or clusters of nonverbal cues provides a more reliable indicator of the message and intent. It is important for salespeople to be able to identify and read nonverbal clusters so that they are better able to capture what the buyer is conveying through the set of nonverbal expressions, gestures or movements (i.e. nonverbal clusters). 10. What is meant by proxemics? Why is it important for salespeople to understand the concept of proxemics? Answer: Proxemics refers to the personal distance that individuals prefer to keep between themselves and other individuals and is an important element of nonverbal communication. The physical distance between the salesperson and the buyer is a form of nonverbal communication and affects the comfort level of the buyer. A buyer who feels a salesperson is standing too close may be uncomfortable and feel that the salesperson is pushy or aggressive. In contrast, a buyer who feels the salesperson is standing too far away may perceive the salesperson as uninterested and not customer-oriented. Salespeople should understand the concept of proxemics so that they can effectively communicate with their customers. Group Activity Have the class divide into groups of three to five. Next, present the class with one of the phrases listed below. Allow the groups five minutes to list as many different meanings as possible from the phrase. Remind them that they can use verbal and nonverbal variations to convey different meanings. Then, ask each group to articulate the phrase with a meaning that has not already been offered by another group. The group should tell the class the meaning it hopes to convey and then attempt to convey it. Let the class or the instructor decide whether they were successful. The last group to come up with a unique meaning gets a point and first try at the next phrase. Phrases • Hello • Goodbye • Are you a smart guy? (guy meant in the generic sense) • Bring me the pizza • I like you • I said I didn’t steal the money Experiential Exercises 1. Developing Effective Listening Skills Objective: Your students will practice the concentration, discrimination, and comprehension necessary for effective listening. Time Required: 15 to 20 minutes in class and 10 to 15 minutes individually outside class. Teaching Tip: Students should first complete the outside of class activity and then come together as a class for discussion of their experiences. Instruct students that the next time they are involved in conversation with another party, to listen carefully to what the other party is saying and to NOT respond until they have completed these three actions: • Paraphrase what they heard the other person say. • Ask for confirmation that their paraphrasing is correct. • Receive a positive confirmation that their paraphrasing is correct. Following the positive confirmation, the student may continue the conversation by responding and making appropriate remarks. Using the elements of the SEIR model of active listening discussed in the text, have the students observe the different levels of active listening they are using: sensing, evaluating, interpreting, and responding (SEIR) and come to class prepared to discuss these differences. Chapter Four Case Tech Solutions and Bartlett & Associates Background This case involves a salesperson representing the institutional sales division of Tech Solutions, a leading reseller of technology hardware and software and Gage Waits, Director of Technology for Bartlett & Associates, a prominent, Dallas-based law firm specializing in corporate litigation. Bartlett & Associates is preparing to move to larger facilities and want to update their computer technology in the new facilities. Chicago-based Tech Solutions has established itself as a major competitor in the technology marketplace specializing in value-added systems solutions for business institutions and government entities nationwide. This past year, Tech Solutions has added sales and distribution centers in Burlington, New York, Los Angeles, California, and Dallas, Texas. Current Situation As an integral part of their move to new and larger facilities, Bartlett & Associates want to replace their computers and information technology systems including laptop/desktop combinations for each of their 21 attorneys, desktop systems for their 10 staff members, along with archive and e-mail servers. Tech Solutions specializes in this type of systems selling and uses their network of hardware and software providers in combination with their own in-house engineering, programming, and systems group to consistently provide higher value solutions than the competition. In preparation for an initial meeting with Gage Waits, the Tech Solutions sales representative is outlining his/her information needs and developing a draft set of needs discovery questions. These needs discovery questions will be the focus of the meeting with Gage Waits and enable Tech Solutions to better identify and confirm the actual needs, desires, and expectations of Bartlett & Associates in relation to new and expanded computer and information technology capabilities. Questions 1. What information does the Tech Solutions salesperson need in order to fully understand the technology needs of Bartlett & Associates? Answer: Tech Solutions salesperson might need the following information in order to understand the technology needs: • The preferred operating system • The number of laptop and desktop computers needed • Need for on-line access to company’s information systems • The type of software needed • Storage space requirements (varies depending upon the amount of video and intensive media used by the firm) • Training needs • Other characteristics that inform the amount of RAM, the type of video card, and so forth. Students’ answers will vary depending upon their knowledge of computer systems. However, they should address the points mentioned above. 2. Following the ADAPT methodology for needs discovery questioning, develop a series of salesperson questions and anticipated buyer responses that might apply to this selling situation. Answer: Students’ answers will vary based on their knowledge of computer technology. However, their answers should reflect an understanding of the ADAPT questioning sequence. Below is an example of one need. Assessment Questions: Seller: How do your attorneys currently access the corporate databases? Buyer: Over the firm’s LAN. Seller: Do the attorneys ever work from home or a location other than the firm. Buyer: Yes, often. Discovery Questions: Seller: What challenges do your attorneys face while working at home or away from the office? Buyer: They often complain about not having remote access to the firm’s information system. This makes it difficult for them to be as productive away from the office as they could be. Seller: How often does that problem occur? Buyer: Fairly often, I would say two or three times a week. Activation Questions: Seller: You indicated it affects their productivity. How so? Buyer: Our attorneys will often begin working on a project off-site. They progress as far as they can until they need access to information contained in our information systems. They then have to either stop what they are doing and come to the office or put the work on hold until they get back to the office the next day. In either case, their rhythm and momentum are broken and that adversely affects productivity. Projection Questions: Seller: How would your attorneys respond if you installed a system that would give them secure access to the firm’s information system from anywhere in the world? Buyer: I’m sure they could complete projects sooner, and perhaps be able to take on more clients/projects. Seller: Is that something they would like? Buyer: Yes, they are paid by the billable hour and the number of clients with which they work. More clients mean greater compensation, and that’s something I know they will like. Transition Questions Seller: Are you interested in hearing about how our information systems will give your attorneys that sort of secure access? Buyer: Yes. Situation Questions: • Salesperson: "Can you describe your current copier setup and how it supports your expanding medical office?" • Buyer: "We have multiple copiers for each division, but we’re running out of capacity and efficiency as we expand." Problem Questions: • Salesperson: "What challenges are you facing with your current copiers, especially with your growth plans?" • Buyer: "The copiers frequently break down, and they’re not keeping up with our increased volume." Implication Questions: • Salesperson: "How do these issues impact your daily operations and overall efficiency?" • Buyer: "It causes delays and additional stress on our staff, affecting our service to patients." Need-Payoff Questions: • Salesperson: "How would improved copier performance and reliability benefit your office’s efficiency and patient service?" • Buyer: "It would streamline our processes, reduce downtime, and improve our overall productivity and patient satisfaction." Role Play Situation: Review the above Tech Solutions-Bartlett & Associates case and the ADAPT questions you developed in response to the questions associated with this case. Characters: Yourself, salesperson for Tech Solutions; Gage Waits, Director of Technology for Bartlett & Associates Scene: Location—Gage Waits’ office at Bartlett & Associates Action—As a salesperson for Tech Solutions, you are making an initial sales call to Gage Waits for the purpose of identifying and detailing the specific needs and expectations Bartlett & Associates has for new and expanded computers and information technology. Role play this needs discovery sales call and demonstrate how you might utilize SPIN or ADAPT questioning sequences to identify the technology needs. Chapter 4 Role Play AppLab Services Background AppLab Services specializes in providing wireless information technology for businesses having 10 to 500 employees and needs for wireless communication, information processing, and digital data transmittal. The company offers a full range of services ranging from the one-time design of applications for smart phones and digital devices to the design and building out of full enterprise systems. As a business development specialist for AppLab, you are making an initial sales call to Mark Crandall, technology manager for Southwest Claims & Adjusters, LLC. As a preferred provider for inspection and adjusting insurance claims across the southern U.S., Southwest serves as an outsource provider of claims and adjusting services to many of the top 25 property and casualty insurance companies and has experienced rapid growth over the last five years. The company currently employs 65 people: 50 adjusters out in the field, 10 assistants located at company headquarters in Tulsa, and 5 administrative and executive staff members. The purpose of this initial call is to assess Southwest’s current use and needs for wireless communication and data services. According to the initial information you gained from a short phone conversation with Crandall, Southwest is currently using a variety of different smart phones on Sprint’s cellular and data service. However, they are exploring the combination of custom designed apps for the Microsoft Surface Pro Tablet for use by their adjusters in the field. This combination would enable adjusters to complete and submit data forms complete with pictures and eliminate the added processing required in their current use of paper-based forms and records. During the phone conversation, Crandall mentioned that some of the benefits are obvious; nevertheless they have concerns about the custom apps and transitioning to a fully digital system. Role Play Location—Mark Crandall’s office at Southwest Claims & Adjusters. Action—Role play this needs discovery sales call and demonstrate how you might utilize SPIN or ADAPT questioning sequences to identify the needs and concerns of the prospect. Chapter 4 Continuing Case Sharpening the Selling Tools Brenda Smith is working in the office this morning preparing for tomorrow’s sales call with Gage Waits, managing partner, and Anna Kate Autry, operations manager, at Energy Based Funds LLC. Energy Based Funds is a major investment banking organization specializing in managing and marketing a variety of energy based mutual funds. The company operates throughout the U.S. and employs 175 people with offices occupying the top three floors of a major office building in the heart of the financial district. For the past several years, Energy Based Funds has been leasing and purchasing office equipment from Altima Systems, one of Brenda’s biggest competitors. Brenda has been working her network in order to get a chance to begin a sales dialogue with Energy Based Funds and she finally has an appointment with the main players on the purchasing team—Waits and Autry. Brenda knows that planning is a key part of success in selling and is diligently working on her strategy and plans in preparation for tomorrow’s sales call with Waits and Autry at Energy Based Funds. According to the Sales Call Plan that Brenda is developing, the purpose of this initial meeting is twofold: (1) to discover more about Energy Based Funds’ current operations, future plans, and the nature of their use of and needs for copiers; (2) to begin acquainting Waits and Autry with NCC and the value they can provide Energy Based Funds. At this point in her sales call plan, Brenda is considering the different pieces of information she needs to get from the dialogue and what questions she might use to elicit that information from Waits and Autry. Questions 1. Based on the purpose of probing questions explained in your text, explain how Brenda should utilize probing types of questions in her initial sales dialogue with Waits and Autry at Energy Based Funds. Consider the types of information Brenda needs and develop several illustrative examples of probing questions Brenda might use. Answer: Brenda needs to use probing questions to learn as much as she can about Energy Based Funds LLC’s (EBF) current operations, future plans, and the nature of their use and needs for copiers. She also needs to ask probing questions to better understand the relationship between EBF and Altima Systems—EBF’s current copier supplier company. The purpose of these questions is to determine the extent of the potential fit between the products she carries and EBF’s needs and to identify areas of opportunity. Below are some sample probing questions that Brenda might use in her sales dialogue: • How is the organization structured? • How many different copiers are you using throughout the organization? • For what sorts of work/projects do your employees use the copiers? Do their needs vary across departments? How? • Are the computers connected to the company’s computer network? • What challenges are you experiencing with your current supplier? 2. Evaluative questions are also effective in sales conversations. Explain the purpose of evaluative questions and how Brenda might effectively utilize them in this initial sales call. Provide several illustrative examples of evaluative questions Brenda could use. Answer: Evaluative questions are used to gain confirmation and to uncover the attitudes, opinions, and preferences that the prospect holds. Unlike fact-oriented questions, these questions are designed to uncover the prospect’s perceptions and feelings toward existing and desired circumstances as well as potential solutions to problems. Below are some sample evaluative questions that Brenda might use in her sales dialogue: • In your opinion, how well is your current supplier meeting your needs? • How do you feel about the durability and functionality of your current copiers? • Do you see the value of having a relationship with a copier company that can help you streamline your processes and reduce your expenses? • What characteristics are you looking for in the ideal copier? Why? Evaluative questions help assess the buyer's preferences, priorities, and decision criteria, allowing the salesperson to align their solution more closely with the buyer’s needs. Brenda might use them to gauge how Energy Based Funds views the value of different features or solutions. Examples: • "How important is copier speed and reliability compared to cost for your team?" • "Which features of a copier do you find most crucial for improving your office’s efficiency?" 3. The ADAPT questioning system is a logic-based sequence of questions designed for effective fact-finding and gaining information about a buyer’s situation. Develop a series of ADAPT questions that Brenda might use in her sales call to develop the information she needs regarding Energy Based Funds, their operations, and needs for copiers. Answer: Below is a sample set of ADAPT questions that reveal the need for copiers that allow for wireless network connectivity at EBF: • Assessment: How do your employees get their work to the copier for copying? How far away, on average, are your employees from the nearest copier? • Discovery: Do your employees ever complain about having to wait for access to the copier or their proximity to the copier? If yes, what are the complaints? • Activation: How has the waiting time and time spent going back and forth to the copier affected their productivity? • Projection: How would your employees react to having wireless access to any copier in your company, given access control of course? • Transition: Are you interested in discussing how our wireless copiers can help your employees increase their productivity and reduce their complaints? Situation Questions: • Brenda: "Can you describe how your current copiers are utilized across your divisions and any issues you’re experiencing?" • Buyer: "Each division has its own copier, but we’re facing frequent breakdowns and inefficiencies." Problem Questions: • Brenda: "What specific problems are arising with your current copiers that affect your operations?" • Buyer: "The copiers are slow and often jam, causing interruptions and delays in our workflow." Implication Questions: • Brenda: "How do these copier issues impact your team’s productivity and overall efficiency?" • Buyer: "They lead to significant downtime and affect our ability to handle client documentation promptly." Need-Payoff Questions: • Brenda: "How would resolving these copier issues with a new, reliable solution enhance your operational efficiency and support your growth?" • Buyer: "A new solution would reduce downtime, improve workflow, and allow us to handle our increased volume more effectively." 4. What recommendations would you provide Brenda regarding nonverbal communication and how she might use it for more effective communication in this sales call? Answer: First, Brenda needs to realize that nonverbal communication often conveys more meaning than verbal communication. Brenda needs to pay attention not only to the nonverbal communication coming from her customers but, more importantly, her own nonverbal communication. Brenda needs to be aware of how her eye movements, the way she is sitting or standing, her gestures, and her proxemics affect her communication with her customers. In addition, she needs to consider how her speech rate, frequency, intensity, and loudness can affect communication. Accordingly, Brenda should spend some time learning how to manage her nonverbal communication so that she may use it to enhance her verbal communication. Ultimately, Brenda needs to make sure that her nonverbal communication projects interest, confidence, enthusiasm, and customer orientation. Chapter Five—Strategic Prospecting and Preparing for Sales Dialogue Learning Outcomes After completing this chapter, you should be able to: 1. discuss why prospecting is an important and challenging task for salespeople. 2. explain strategic prospecting and each stage in the strategic prospecting process. 3. describe the major prospecting methods and give examples of each method. 4. explain the important components of a strategic prospecting plan. 5. discuss the types of information salespeople need to prepare for sales dialogue. Chapter Outline I. Introduction II. The Importance and Challenges of Prospecting III. The Strategic Prospecting Process A. Generating Sales Leads B. Determining Sales Prospects C. Prioritizing Sales Prospects D. Preparing for Sales Dialogue IV. Prospecting Methods A. Cold Canvassing B. Networking C. Company Sources D. Commercial Sources V. Developing a Strategic Prospecting Plan VI. Gathering Prospect Information to Prepare for Sales Dialogue A. Basic Information about the Prospect B. Information about the Selling Situation C. Sources of Information Exercises Developing Professional Selling Knowledge 1. Why is prospecting an important activity for salespeople? Answer: Prospecting is an important activity for salespeople because it is the primary means of generating revenue and guarding against the effects of customer turnover. While it’s possible to increase revenue by raising prices, the most effective way to increase revenue and grow market share is to acquire new customers. Next, given that customer turnover is inevitable, prospecting allows salespeople to keep new customers who replace those that are lost. While it is possible and even desirable to grow business with existing customers, it is unlikely that such growth could ever be great enough to make up for business lost to turnover. 2. What are the objectives of strategic prospecting? Answer: The primary objective of strategic prospecting is to identify, qualify, and prioritize sales opportunities. The basic objective of the strategic prospecting process is to provide salespeople with a list of prioritized sales prospects. Strategic prospecting should involve the use of one or more criteria that can help salespeople improve their prospecting effectiveness continuously. The focal point of a strategic prospecting plan should be the goal stating the number of qualified prospects to be generated. 3. Why is prospecting difficult for some salespeople? Answer: Prospecting is difficult for some salespeople because it is a process filled with rejection. This is problematic to some salespeople for some reasons. First, many salespeople fear or, at least, don’t like rejection. Second, because it is filled with rejection, many salespeople may feel that prospecting is an inefficient use of their time. In either (or both) case(s), salespeople will find prospecting difficult because they will not allocate resources necessary for making this process more effective. 4. What are the disadvantages of cold canvassing prospecting methods? Answer: The primary disadvantages of cold canvassing prospecting are that it is inefficient and can have a detrimental impact on the image of the salesperson. Cold canvassing is inefficient because of the low success rate. Salespeople engaged in cold canvassing generally know little to nothing about the prospects; therefore, they do not qualify as good salespeople. This process might result in salespeople spending a great deal of time calling on prospects who do not meet the qualifying criteria. Cold canvassing can be detrimental to the image of a salesperson because cold calls are unannounced. The potential prospects may feel as though the salesperson is inconsiderate because he or she did not call to make an appointment. In addition, the potential prospects may perceive the salesperson to be unorganized because the salesperson had little to no information about the buyer and did not make an appointment. 5. What are the basic criteria used to qualify leads as sales prospects? Answer: Qualified sales prospects are leads who: • Have a need for the product or service • Have the budget or financial resources to purchase the product or service • Have the authority to make the purchase decision 6. What approaches can be used to prioritize sales prospects? Answer: One approach is to create an ideal customer profile and then analyze sales prospects by comparing them with this ideal customer profile. A second approach is to identify one or more criteria, evaluate sales prospects against these criteria, and either rank all of the sales prospects based on this evaluation or place the sales prospects into A, B, and C categories, with A sales prospects representing the best sales opportunities. 7. What are the major components of a strategic prospecting plan? Answer: The major components of a strategic prospecting plan include the following: • Goal stating the number of qualified prospects to be generated • Allocation of time to conduct prospecting activities • Tracking system to track the leads and prospects through the sales pipeline and the relative costs associated with acquiring the leads • A system for analyzing and evaluating the results of prospecting activities • A program to review and stay up-to-date on product knowledge and competitor information 8. What types of information should salespeople gather to prepare for sales dialogue? Answer: The salesperson should collect information about the prospect and the prospect’s organization. Regarding the prospect, the salesperson should, at least, know the prospect’s name and title (the salesperson should pronounce them correctly). As the sales process progresses, the salesperson can learn additional information about the prospect (e.g., hobbies, interests, and so forth), which includes the prospect’s risk tolerance. The salesperson should also gather information about the prospect’s organization, its type, the industry and marketing channels in which it operates, and its competitors and customers. Students’ answers will vary. However, students should address the points mentioned above. 9. How can salespeople use electronic networking as a prospect method? Answer: Salespeople can use electronic or social networking to enhance prospecting in a variety of ways. First, social networking sites (e.g., LinkedIn and Plaxo) can help salespeople identify prospects, either directly or through referrals. Second, salespeople can use social networking to learn about the prospect and the prospect’s organization, either from the prospect’s social networking page or from other members of the social network who are familiar with the prospect. Students’ answers will vary. However, students should address the points mentioned above. 10. What company sources can be used for prospecting? Answer: Many organizations provide a variety of ways to help salespeople generate leads and identify sales prospects. These sources include company records, advertising inquiries, inbound telemarketing, outbound telemarketing, trade shows, and seminars. Group Activity Divide the class into groups of three to five. Each group has been hired as a consultant by a new company to develop a strategic prospecting strategy. The company brews and bottles a specialty tea beverage. The tea is rich in vitamins, anti-aging nutrients, and natural anti-carcinogens. The tea is expensive to brew and has a suggested retail price of $3.00 per 16 oz. bottle. The company is located in your town. It can produce 5,000 bottles per day and does not sell the tea directly to consumers. The strategic prospecting strategy should include: • How leads will be generated • How leads will be qualified • How sales prospects will be prioritized • How information to prepare for sales dialogue will be obtained • How the strategic prospecting strategy will be tracked and evaluated Experiential Exercises 1. The Effectiveness of Different Prospecting Methods Objective: To help your students understand the advantages and disadvantages of different prospecting methods. Time Required: 30 to 40 minutes Teaching Tip: This exercise can be assigned during the previous class session. At the beginning of this class session, allow about 15 minutes for students individually or in groups to compile the advantages and disadvantages of cold canvassing, networking, company sources, and published sources prospecting methods. Then, call on students individually or by groups to present their results. You should summarize these on a blackboard or flip chart. Conclude the exercise with a summary and then a discussion of how different prospecting methods might be used together to capitalize on the strengths of each method. 2. Developing a Strategic Prospecting Strategy for Getting a Job Objective: To help your students understand the strategic prospecting process by applying it to a situation of interest to them. Time Required: 30 to 40 minutes Teaching Tip: This exercise is best done by each student individually. Each student should indicate the type of job they would like to obtain upon graduation. Then, give each student about 15 minutes to address the following questions: • What prospecting methods would be used to identify potential job leads? Answer: Prospecting Methods for Identifying Job Leads: • Networking: Utilize personal connections, attend industry events, and engage in professional organizations or LinkedIn groups to discover job opportunities and gain referrals. • Online Job Boards: Search on platforms like Indeed, Glassdoor, and LinkedIn for available positions. • Company Websites: Visit the career sections of companies of interest to find job postings and company information. • Recruitment Agencies: Register with agencies that specialize in the desired industry or job role to receive tailored job leads. • How would these leads be qualified as job prospects? Answer: Qualifying Leads as Job Prospects: • Job Fit: Evaluate if the job role aligns with your skills, qualifications, and career goals. • Company Fit: Ensure the company's values, culture, and industry align with your personal and professional preferences. • Role Requirements: Check that the job requirements match your experience and skills to determine if you are a competitive candidate. • How would these job prospects be prioritized? Answer: Prioritizing Job Prospects: • Interest Level: Prioritize jobs and companies that strongly align with your career interests and long-term goals. • Fit and Demand: Focus on roles where your skills are highly sought after and the company has a good reputation. • Application Deadlines: Give precedence to opportunities with upcoming deadlines or those that are actively hiring. • What types of information would the student gather prior to contacting the best job prospects? Answer: Types of Information to Gather Prior to Contacting Job Prospects: • Company Background: Research the company’s mission, values, culture, and recent news to understand its market position and work environment. • Role Details: Review the job description thoroughly, including responsibilities, required skills, and qualifications. • Hiring Manager Information: Find out about the hiring manager’s role, background, and any mutual connections to personalize your approach. • Industry Trends: Stay informed about trends and challenges in the industry to tailor your application and interview responses effectively. After students have addressed these questions, call on individual students to present their answers to each question. Conclude the exercise with a synthesis and summary of the discussion. Chapter 5 Case Developing a Strategic Prospecting Plan Background Jennifer Hamman graduated from the state university and was hired as a sales representative for the Logistics Company. The Logistics Company is a transportation broker that links companies needing products shipped with trucking firms to carry the shipments. After an initial training program, Jennifer was given a couple of existing company customers and a small list of leads to get her started. She began by serving the shipment needs of the existing customers. This gave her some confidence, but she realized that for her to be successful, she must begin prospecting and try to identify the best sales opportunities. The Logistics Company provides an ongoing list of leads that can be accessed by all salespeople. Once a salesperson contacts one of these leads, no other salesperson can contact them. Jennifer started her prospecting by contacting these leads. Current Situation Jennifer has been calling a number of leads each day, but has not been very successful in generating much business. She feels like she is wasting much of her time on leads that are not good sales opportunities. The leads provided by her company are not qualified in any way and the training program she attended focused on cold calling as the basic prospecting method. Jennifer took a professional selling class in college and remembered that the chapter on prospecting emphasized the need to follow the strategic prospecting process to identify the best sales opportunities. She found her professional selling textbook, went to the chapter on prospecting, and decided to create a strategic prospecting plan. Questions 1. What methods should Jennifer use to generate sales leads beyond those provided by her company? Answer: Jennifer should refrain from cold calling. Cold calling is an inefficient method when it comes to prospecting. Jennifer can use referrals—sales leads that a customer or some other influential person provides—in her sales dialogue. Jennifer should use different networking methods that are effective for prospecting. Also, company records can be a useful source of prospects. Directories offer an inexpensive, convenient means of identifying leads. Students’ answers to this question will vary. However, they should address the points mentioned above. 2. How should Jennifer qualify the leads provided by her company and those she generates herself? What is the profile of an ideal prospect? Answer: Jennifer can qualify the leads provided by her company in the following ways: • Online searches • Online and print directories • Prospect’s Web site • Social media • Annual reports • Trade and business press • Professional organizations • Company databases • Contact with prospect An ideal prospect would be one whose needs match the product at hand. Also, the ideal prospect is one who shows interest and cooperates with the salesperson in solving problems. Students’ answers to this question will vary. However, students should address the points mentioned above. 3. How should Jennifer prioritize her qualified prospects? Answer: Jennifer can create an ideal customer profile and then analyze sales prospects by comparing them with this ideal customer profile. Those who most closely fit the profile are deemed to be the best sales prospects. Another approach is to identify one or more criteria, evaluate sales prospects against these criteria, and either rank all of the sales prospects based on this evaluation or place the sales prospects into A, B, and C categories, with A sales prospects representing the best sales opportunities. 4. What information should Jennifer collect to prepare for sales dialogue with a prospect? Answer: Jennifer should collect basic information about the prospect. Buyer’s name, title, contact information, and educational and work background is the basic information that Jennifer should collect. Information about the selling situation is also valuable. Type of purchase, motivation for buying, current supplier, etc., are examples of secondary information. 5. Jennifer used LinkedIn during college and wanted to employ it in her strategic prospecting process. How can she best use LinkedIn? Answer: She can use LinkedIn as a source for identifying ideal prospects. She can also use this as a tool to check or qualify the prospects she and her company have provided. She can also use the website to get basic and secondary information about the prospect. The website will help Jennifer in networking well with the prospects. Role Play Situation: Read case and prepare a strategic prospecting plan. Characters: Jennifer and her sales manager. Scene: Jennifer has implemented her strategic prospecting plan and been very successful. She has been the top seller in her office for the past two months. Her sales manager is impressed and he asks her what she is doing to be so successful. She indicates that her success is due to spending most of her time with the best sales opportunities. He wants to talk to her about her strategic prospecting plan and sets up a meeting. Location: Sales manager’s office. Action: Role play the meeting between Jennifer and her sales manager. The sales manager should ask many questions and Jennifer will respond to these questions. The use of LinkedIn has been valuable to Jennifer and no other salespeople at the Logistics Company are using LinkedIn, so make sure the role of LinkedIn is included in the role play. Chapter 5 Role Play Prospecting and Gaining Prospect Information Background Preston Adams has just completed the sales training program for the Office Copier Company (OCC). Adams has been assigned a territory in Illinois that includes the metro areas of Bloomington, Decatur, and Peoria. The company once commanded a significant market share in these markets. However, due to a problem with a previous salesperson in these markets three years ago, OCC has not been directly working this particular region of central Illinois. Although there is a large number of their machines still in use across this territory, it has been a while since a salesperson has called on any accounts. As with any geographic area, there have likely been a lot of changes with existing companies moving or even going out of business and new companies opening up. Current Situation Adams’s sales manager, Eric Waits, is coming in two weeks to spend three days in the field with Adams calling on prospective accounts. Adams is working to develop a list of leads that he can qualify and then contact in order to set up the sales calls he will be making with his manager. Role Play Situation: Read the Role Play Prospecting and Gaining Prospect Information. Characters: Preston Adams, salesperson for OCC; Jerri Spencer, office manager with purchasing responsibilities for Peoria-based McKelvey and Walters, Attorneys-at-Law. Scene: Location—Preston Adams's office at OCC. Action—In the course of Adams's prospecting activities, Spencer and the McKelvey and Walters law firm have come up as a strong prospect for Xerox's new line of professional copiers. McKelvey and Walters operate a large office in Peoria that occupies most of two floors in the Planter's Bank Building and a branch office in Bloomington. They were previously a customer of OCC, but the information that Adams has obtained indicates that they are using an unspecified variety of different brands of copiers. Role play the phone conversation between Adams and Spencer as Adams introduces himself and his company to Spencer, gathers needed information to better qualify the prospect, and asks for an appointment for an initial sales call. Chapter 5 Continuing Case Fishing for New Customers Brenda Smith has been very successful at getting existing customers to upgrade or purchase new copiers during the past two months. She is, however, disappointed in her efforts to get new customers. In order to add more new customers, Brenda has been spending a great deal of time prospecting. These efforts have produced a large number of leads. Once she generates a lead, she contacts the firm and tries to set up an appointment. Unfortunately, most of these leads are not interested in talking about copiers and are not willing to schedule a meeting with her. This has been so frustrating that she decided to make several cold calls this week to see if this would be a good way to get to meet with prospective customers. The cold calls were also not very successful and were extremely time consuming. Brenda did finally get a few leads to agree to meet with her, but these appointments were not very productive. The leads were typically satisfied with the copiers they were using and were not interested in learning about NCC copiers. Pat Brady, her sales manager, accompanied her on a recent sales call to a lead. After the sales call, Pat expressed his disappointment that they had really wasted their time with this meeting. Pat then asked Brenda about her prospecting process, because it was clear that she was not identifying and spending her time with the best sales opportunities. Her approach was not working well and was taking a lot of time. If she continued doing the same things, Brenda was not likely to generate many new customers and might lose some existing customers, because she was spending too much of her time prospecting. Brenda realizes that she must improve her prospecting process, but is not sure exactly how to proceed. Questions 1. What is Brenda doing wrong? What would you recommend Brenda do to improve her prospecting efforts? Answer: First, Brenda needs to develop a strategic prospecting plan that incorporates the elements discussed in the text. Next, she needs to assess her lead generation methods and qualifying criteria. It’s likely she is not getting good leads, and it is also likely she is not doing a good job qualifying leads. Finally, I would recommend that Brenda work on generating referrals from her current satisfied customer base. Using referrals is much more effective and efficient than cold calling. 2. Explain the strategic prospecting process to Brenda and discuss how she can implement it. Answer: Strategic prospecting process is a process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. Strategic prospecting involves the following components: • Generating sales leads • Determining sales prospects • Prioritizing sales prospects • Preparing for sales dialogue Students’ answers will vary. However, students should address the points mentioned above. 3. What secondary lead sources would you recommend Brenda use to identify the best attorneys, architects, accountants, and medical professionals as prospects? Answer: There are a variety of secondary lead sources available to Brenda. The first is the phone book (yellow pages). This will give her a list of the various attorneys, architects, accountants, and medical professionals, along with their basic contact information. She could also use Hoover’s, the NAICS website, and other web-based lead search tools such as salesgenie.com. 4. What specific types of information should Brenda obtain before contacting a qualified prospect? Answer: At the very least, Brenda should know the name and title of the lead she is hoping to contact. She should learn something about the prospect’s organization, including markets they serve, competitors, and any current external forces that may be affecting their business. She can use this information to help gain access to the lead. Chapter Six—Planning Sales Dialogues and Presentations Learning Outcomes After completing this chapter, you should be able to: 1. explain why it is essential to focus on the customer when planning sales calls. 2. understand alternative ways of communicating with prospects and customers through canned sales presentations, written sales proposals, and organized sales dialogues and presentations. 3. discuss the nine components in the sales dialogue template that can be used for planning an organized sales dialogue or presentation. 4. explain how to write a customer value proposition statement. 5. link buying motives to benefits of the seller’s offering, support claims made for benefits, and reinforce verbal claims made. 6. engage the customer by setting appointments. Chapter Outline I. Introduction II. Customer-Focused Sales Dialogue Planning III. Sales Communications Formats A. Canned Sales Presentations B. Written Sales Proposals C. Writing Effective Proposals Executive Summary Customer Needs and Proposed Solution Seller Profile Pricing and Sales Agreement Implementation and Timetable D. Evaluating Proposals Before Submission E. Organized Sales Dialogues IV. Sales Dialogue Template A. Section 1: Prospect Information V. Section 2: Customer Value Proposition A. Section 3: Sales Call Objective VI. Section 4: Linking Buying Motives, Benefits, Support Information, and Other Reinforcement Methods A. Section 5: Competitive Situation B. Section 6: Beginning the Sales Dialogue C. Initiating Contact D. Section 7: Anticipate Questions and Objections E. Section 8: Earn Prospect Commitment F. Section 9: Build Value through Follow-up Action VII. Engaging the Customer Exercises Developing Professional Selling Knowledge 1. Why is sales dialogue and presentation preplanning important? Answer: Sales presentation preplanning is important because it helps keep the salesperson organized and focused. The key element to sales presentation planning is the creation of one or more sales call objectives. These objectives are important because they help the salesperson manage accounts through the sales process and they serve as a tool for measuring performance. 2. Do you see the need for any salesperson to ever use a canned sales presentation? Answer: Canned sales presentations may be effective when the product line is narrow, and when there is little variation in the types of value customers that can derive from the product(s) or in the needs the product addresses. In addition, canned sales presentations may be helpful to inexperienced salespeople or when an organization wants tight control over the information presented by salespeople. 3. Most salespeople use organized sales dialogues and presentations today. Why? Answer: Most salespeople use organized sales dialogues and presentations because they provide greater flexibility and effective interaction with the prospective customer. This form of interaction allows salespeople to learn about their customers’ needs and then customize solutions to those needs. After all, the customer is interested only in hearing about how the salesperson’s market offer may solve his or her problem. Using a canned presentation that, for example, covers all the products’ features may bore, confuse, or otherwise disinterest the customer. 4. Explain why both verbal and written communication are a necessity for a successful salesperson. Answer: Both verbal and written forms of communication are important because each plays a crucial role in the purchase decision. Verbal communication is important for learning about the customer’s situation and particular needs and then presenting solutions to those needs in a manner the customer understands. Written communication is important because it is often perceived as being more credible; word processing programs have subroutines to check spelling and grammar. It creates a permanent record of claims and intentions. Because written communication is much less flexible, it must clearly convey the intended message. Written and verbal communications are often used together and should be mutually supportive to maximize the impact of the message and to reduce ambiguity. 5. Explain the key elements of written proposals. Answer: The key elements of written proposals are the executive summary, customer needs and proposed solution, seller profile, pricing and sales agreement, and implementation and timetable. The executive summary, usually limited to two typewritten pages, explains the customer’s problems, the nature of the proposed solution, and the benefits. It also builds a desire to read the full proposal. The customer needs and proposed solution section clearly states the customer’s problems and needs and then presents the solution with evidence on how it will address them uniquely. The seller profile offers an overview of the supplier company, emphasizing its capabilities and successes in providing services to past customers. The pricing and sales agreement officially “asks for the order” by providing pricing information and delivery options. Finally, the implementation and timetable section explains the steps necessary for the buyer to complete placing an order with the timetable detailing a schedule of key implementation events. 6. Why is the planning template for sales dialogues and presentations an important tool for today’s salesperson? Answer: The primary advantage of the planning template for sales dialogues and presentations is that it ensures that salespeople are organized and cover all the pertinent content areas when they develop or prepare a sales presentation. In addition, a planning template helps the salesperson with the process of uncovering the needs and identifying a customized solution. Finally, salespeople can use the information collected while developing the planning template to learn more about their territories, their customers, and their performance. 7. Why is it important for a salesperson to establish objectives for each sales call? Answer: It is important for salespeople to establish sales call objectives because doing so keeps them organized, focused, and goal-directed. Setting multiple sales call objectives (e.g., during an introductory call the objective may be simply to introduce the salesperson and his or her company and to gather information on the buyer’s needs) helps the salesperson have a plan to keep the sales moving forward when the primary objective is not met (i.e., a fallback plan). Finally, having to set sales call objectives reminds salespeople to have a purpose for each sales call, reducing the likelihood that they will waste their time and their customers’ time. 8. What are characteristics of a well-written customer value proposition? Answer: A good customer value proposition will be a simple statement that clearly directs upcoming sales dialogues by explaining why a customer would be better off choosing the product of the salesperson and his or her firm. It should explain only the key benefits for the buyer and avoid listing all of the benefits. At the same time, it should be as specific as possible on tangible outcomes and relate any product or service dimensions that would add value to the buyer’s operations. Finally, the customer value proposition should promise only what can be consistently delivered, keeping in mind that appropriate guarantees can be added as the sales process moves along. 9. What is the difference between buying motives and benefits? Answer: Buying motives refer to the most important facts from the customer’s perspective in making a purchase decision. Buying motives motivate the buyer to make a purchase, and they may be rational or emotional or a combination of both. Benefits, on the other hand, describe added value for the customer—the favorable outcome derived from a feature. Benefits are the sources of value that address the buyer’s buying motives. Salespeople should present benefits that, at a minimum, address the buyer’s buying motives. 10. How can salespeople enhance their chances of securing an appointment with a prospect? Answer: Salespeople will be more likely to secure an appointment with a prospect if they follow three simple directives: give the prospect a reason an appointment should be granted; request a specific amount of time; and suggest a specific time for the appointment. In general, salespeople need to show that they recognize that the prospect’s time is valuable. Group Activity Preparing for Sales Calls: Using the Internet and the Views of a Sales Professional Form student teams and have them access a search engine like Yahoo.com. The teams should investigate topics such as “sales, planning the call” or “sales, precall planning.” Teams prepare a brief report on the best ideas from the search, then interview a salesperson or sales manager for additional ideas on how to prepare for sales calls. Each team should present their findings in class. Teams should document sources used in their reports. Experiential Exercises 1. Demonstrating the Differences Between Features and Benefits Objective: Use this exercise to facilitate student understanding of the differences in features and benefits. By using a product they are familiar with, students gain confidence in converting features into benefits. Time Required: Students will need only a few minutes to prepare, either before or in class. The demonstrations will vary in length, but each can be completed in less than five minutes. Teaching Tip: To get an interesting mix of products, give the students advance notice of this assignment, and stress that they must use the product to demonstrate features and benefits. Have students bring a product to class and demonstrate three features and three related benefits to the class. Alternatively, students can pair up for this exercise, then switch buyer-seller roles. Class discussion should follow presentations with a focus on how to improve the explanation of features and benefits. For example, if the feature/benefit explanation was too complicated or not clear, how could the presenter improve the explanation? 2. Linking Buying Motives to Benefits and Reinforcing Benefits Objective: Students gain experience in selecting benefits that relate to the buyer’s key motives, and they learn how to support benefit claims with information and sales support materials. Note that this exercise utilizes the Sales Dialogue and Presentation Planning Template as shown in Exhibit 6.4 and discussed on page 136. Time Required: Two hours outside of class, plus a ten-minute presentation in class. Teaching Tip: Limit the in class presentation to ten minutes per team rather than insisting that all benefits are included in the presentation. If the team demonstrates that they understand how to complete Section 4 of the Sales Dialogue and Presentation Planning Template (Exhibit 6.4) for a few benefits, they can do the same for as many benefits as might be appropriate in a sales situation. Have student teams select a real product to be sold to a real prospect. The teams identify at least two key buying motives for the prospect. The buying motives must be approved by the instructor. Students then complete Section 4 of the Sales Dialogue and Presentation Planning Template. This requires linking benefits to the buying motives, identifying information to support claims made for each benefit, and specifying appropriate methods for reinforcing verbal content. Teams present a ten-minute briefing to the class for discussion and feedback. Chapter 6 Case Nimblefoot Background Nimblefoot is a manufacturer of women’s running shoes, which are sold through major sporting goods chain stores and specialty stores. Nimblefoot has targeted Trailrunner, a regional specialty store chain as a potential prospect for its latest product. Nimblefoot’s sales representative, Bradley Jackson, hopes to replace a competitor’s product in the Trailrunner stores. Bradley has begun planning his upcoming sales call on Susan Holloway, head buyer at Trailrunner. At a recent trade show, Bradley had a brief conversation with Susan and learned that Trailrunner’s management is interested in improving the profitability of the chain. Further, Susan made it clear that Trailrunner would only be interested in high-quality products. Current Situation Bradley and his sales manager, Ashley Zamora, have been discussing the plans for the upcoming call on Trailrunner. Ashley asked Bradley to give her a summary of Trailrunner’s key buying motives and the related benefits that Nimblefoot could offer. In addition, Ashley wanted to review the information that would be required to support any claims made for the benefits, as well as additional ideas for how to reinforce the verbal content of Nimblefoot’s sales message. Bradley supplied Ashley with the requested information, as shown in Exhibit A. Ashley is now reading over Exhibit A and plans to give Bradley some feedback tomorrow morning. Questions 1. In the role of Ashley Zamora, what specific comments and suggestions do you have for Bradley Jackson? Answer: Students’ answer will vary depending on their grasp of the material and their individual preferences for visual aids. Nevertheless, the students should allude to one or more of the following bits of feedback: Since Trailrunner’s buying motive is to improve profitability, reinforcement of verbal content (6% higher profit margin) can be done through charts/graphs. Providing a time frame for the increase in the profit margin would make it clearer. For high-quality products, the related Nimblefoot benefits mentioned in the exhibit are closer to features and don’t seem like benefits (in terms of benefits for Trailrunner). Support information in the Nimblefoot website isn’t as credible as independent third party sources. Reinforcement of verbal content through Running World magazine is good; customer interviews are okay, but not independent (because they are on the website and likely generated by Nimblefoot and thus lack credibility). Comments and Suggestions for Bradley Jackson: • Clarify Benefits: Ensure the benefits of Nimblefoot’s products are directly aligned with Trailrunner’s key buying motives, particularly emphasizing high quality and profitability. • Support Claims: Provide concrete data and customer testimonials to substantiate quality claims and illustrate how Nimblefoot’s shoes improve profitability, such as case studies or sales performance metrics from similar stores. 2. Should a customer value proposition be developed before completing the information in Exhibit A? Answer: Yes, the general customer proposition should have been developed before completing the information in Exhibit A. However, as a sales process progresses, the value proposition may become more customized to the individual prospect. In preparing for a sales call in which solutions (to needs previously uncovered) will be presented, a more customized value proposition can be developed using value-driven benefits directly associated with the solutions to be presented. Role Play Characters: Ashley Zamora, sales manager, and Bradley Jackson, sales representative Scene: Location—Ashley Zamora's office Action—One student plays the role of Ashley Zamora, and one student plays the role of Bradley Jackson. Ashley has told Bradley that she thinks it would be good exercise to act out the presentation of the key benefits shown in section four of the template. She said to Bradley “I will act like the Trailrunner buyer, and you try to convince me that your benefits are significant. Be as specific as you can.” Questions After completing the role play, address these questions: 1. What were the strengths of Bradley Jackson's performance? Answer: Strengths of Bradley Jackson's Performance: • Clear Communication: Bradley articulated the key benefits of Nimblefoot’s products clearly, focusing on how they meet Trailrunner’s need for high-quality items. • Tailored Benefits: He effectively aligned product benefits with Trailrunner’s goals of improving profitability, showing an understanding of the buyer's needs. 2. How could Bradley’s performance be improved? Answer: How Bradley’s Performance Could Be Improved: • Evidence and Examples: Bradley should provide more concrete evidence and examples to support the benefits, such as case studies or data showing the impact on similar stores. • Engage Buyer: Increase engagement by asking more probing questions to understand Susan’s specific concerns and interests better, allowing for a more tailored pitch. 3. How important is sales call planning in determining sales call performance? Answer: Importance of Sales Call Planning: • Essential for Success: Sales call planning is crucial as it allows the salesperson to align their pitch with the buyer’s needs and objectives, enhancing the relevance of the presentation. • Prepares for Objections: Effective planning helps anticipate potential objections and prepare responses, increasing the likelihood of a successful outcome. Chapter 6 Role Play Kindle versus Nook Background For this role play, students will assume one of three roles: (1) sales representative for Amazon's Kindle; (2) sales representative for Barnes and Noble's Nook; or (3) a buyer for a major university that is considering the purchase of e-readers for students. Prior to the role play, all students should conduct a comparison of the features and benefits of the Kindle and the Nook. To do the comparison, begin by using a search engine such as Google. Enter “Kindle vs. Nook” to find features and benefits of both products. Role Play: Characters: One Kindle representative, one Nook representative, and a buyer for the university Scene 1: Location—The buyer’s office Action—Both sellers present their products to the buyer with a focus on explaining their product’s benefits to the buyer. Questions After completing the role play, address the following questions: 1. Did the sellers demonstrate that they knew the difference between features and benefits? Answer: • Kindle Representative: Yes, the Kindle representative effectively highlighted how specific features, like long battery life and integration with Amazon’s ecosystem, translate into benefits such as convenience and access to a vast library. • Nook Representative: Yes, the Nook representative also made clear distinctions, focusing on features like expandable storage and its compatibility with public libraries, emphasizing benefits like personalization and cost savings on books. 2. Did the sellers have sufficient information to be convincing? Answer: • Kindle Representative: Yes, the Kindle representative provided detailed comparisons of e-reader capabilities, customer service, and exclusive content, which were relevant and persuasive. • Nook Representative: Yes, the Nook representative offered comprehensive information on unique features like adjustable lighting and compatibility with a variety of file formats, making a strong case for their product. 3. Can you suggest additional ways that the sellers could improve their sales communications? Answer: • Kindle Representative: Incorporate real-life user testimonials and case studies to demonstrate how Kindle has enhanced the reading experience for university students. • Nook Representative: Provide a live demo or hands-on experience to showcase the e-reader’s functionality and user interface, allowing the buyer to experience its benefits firsthand. Chapter 6 Continuing Case Custom Product, Custom Presentation During the past three months, Brenda had improved her prospecting process. She was identifying more prospects that represented better sales opportunities. Brenda knew that it is important to plan her sales calls in advance to maximize the time she spent in face-to-face selling. In this selling environment, most customers were not interested in all of the features of Brenda’s products. Brenda had to determine what was important to each customer, and customize her presentations accordingly. Further, she had to clearly communicate the benefits of her products, and not overwhelm potential buyers with too much technical language. Assume that Brenda has an appointment with EFP, a non-profit organization that raises money to promote environmentally friendly practices such as recycling. The organization uses email, Web-based communications, and direct mail campaigns to reach potential donors. EFP currently uses an older-generation analog copier. Brenda hopes to sell EFP a modern digital copier that offers several advantages over the analog copier currently in use. Questions 1. Using an Internet search engine such as Google, find the general benefits of digital copiers over analog copiers. You might enter “benefits of digital copiers” in the search engine, or examine data from copier providers such as Ricoh, Canon, or Xerox to find these benefits. List 6–8 potential benefits of a digital copier to EFP. Answer: Benefits of digital copiers include the following: • Reduces the need for equipment as digital copiers have multiple functions—it serves as a printer, copier, and fax machine—which in turn saves money • Saves time as documents may be distributed electronically • Reduces expenses as copiers have lower maintenance costs (fewer moving parts to break down) • Reduces expenses as copiers have lower production costs (documents may be distributed electronically, saving paper) • Is consistent with sustainability initiatives • Higher quality output (digital technology produces a superior reproduction). 2. From the listing developed in # 1, select four benefits. For each benefit, write a sentence or two that Brenda might use to communicate these benefits during her sales call with EFP. Answer: Students’ answers will vary, but each should be tied to EFP’s needs. Some examples include the following: The copier handles multiple functions and will save you time and money. You can create your donor material and use the copier to send digital copies to your donors via email, reproduce the material for use in the mailer, or fax the material. Do you see how this will save you time and money? 1. Enhanced Document Management • "Our copiers streamline document organization with advanced management features, improving workflow efficiency and file retrieval." 2. High-Quality Printing • "Experience crisp, professional-quality prints every time, which enhances your company’s image and reduces the need for reprints." 3. Cost Efficiency • "Our copiers are energy-efficient and cost-effective, helping you save on operational costs with lower energy use and minimal maintenance." 4. Advanced Security Features • "Protect sensitive information with our copiers’ robust security features, including encrypted data transfer and secure access controls." 3. For the four benefits identified in # 2, describe what information Brenda should have on hand when she makes the sales call on the EFP buyer. Also describe how this information would be best communicated, i.e., what support materials will Brenda need to enhance her verbal communications? Answer: Students’ answers will vary. Below is an example Answer: Assuming a live demo isn’t possible, Brenda should have a video clip (on her laptop) showing how the copier can perform all the functions. In addition, she should have a colorful diagram/chart showing how the copier may perform all the functions (in case there is a problem with using the laptop). Finally, Brenda should have testimonials and data (table, chart, or graph) supporting the savings in time and money. Use of the testimonials vs. the data would depend on the communication style of the buyer. 1. Enhanced Document Management • Information Needed: Details on document management features and customer success stories. • Communication: Use product brochures and case studies to illustrate workflow improvements and efficiency gains. 2. High-Quality Printing • Information Needed: Specifications on print resolution and sample prints. • Communication: Bring sample prints and technical sheets showcasing print quality to demonstrate the product’s capabilities. 3. Cost Efficiency • Information Needed: Data on energy consumption, cost savings, and maintenance comparisons. • Communication: Provide cost analysis reports and comparison charts to highlight long-term savings and operational efficiency. 4. Advanced Security Features • Information Needed: Details on security protocols and compliance standards. • Communication: Present security feature documentation and certifications to reassure the buyer about data protection and compliance. 4. Assume that the buyer acknowledged interest in at least two of benefits identified in # 2. Write a realistic buyer-seller dialogue of Brenda’s interaction with the EFP buyer concerning these benefits. Answer: Students’ answers will vary. Below is a sample dialogue. Brenda: Previously you mentioned that you create donor material and have one person working on distributing the material via email, and another person copying the material for distribution via a mailer. And having two people doing the work is costly, is that right? Buyer: Yes. Brenda: Our copier uses digital technology; it scans the image of the original into memory and stores it as an electronic file. The benefit to you is that once scanned, the document can be sent out via email while it’s being copied for use in a mailer. This will reduce your labor cost and you will be able to get the materials out faster. Buyer: Okay, but how much time will we save? Brenda: The Davidson Group conducted a study of the performance of digital copiers compared to traditional analog copiers. As you can see from this graphic, they concluded that digital copiers reduced the time taken on a particular task by 35%. How would a 35% reduction in the amount of time spent on these mailers benefit you? Buyer: Well, we could . . . Brenda: "I'm glad to hear you're interested in our enhanced document management and advanced security features. Let’s start with document management. Our copiers offer advanced capabilities for organizing and retrieving documents efficiently. For instance, you can create custom workflows and easily integrate with your existing digital systems. This can significantly reduce time spent on document handling." EFP Buyer: "That sounds promising. Can you provide an example of how this has benefited a similar organization?" Brenda: "Certainly! One of our clients, a large law firm, saw a 30% reduction in time spent on document retrieval and management after implementing our solution. They were able to streamline their processes, which helped improve overall productivity." EFP Buyer: "Interesting. And what about the security features you mentioned?" Brenda: "Our copiers come with robust security measures, including encrypted data transfer and secure user authentication. For example, our secure print release feature ensures that sensitive documents are only printed when the authorized user is present at the machine. This helps protect against unauthorized access and ensures compliance with data protection regulations." EFP Buyer: "I appreciate the details. How do these security measures compare to industry standards?" Brenda: "We meet and often exceed industry standards, and our products are compliant with the latest security certifications. I can provide you with detailed documentation and compliance reports to review." EFP Buyer: "Great, that would be helpful. Let’s schedule a time for a deeper demonstration of these features." Brenda: "Absolutely, I'll set up a demo at your convenience to showcase these benefits in action. Thank you for your interest!" Solution Manual for SELL: Trust Based Professional Selling Thomas N. Ingram, Raymond (Buddy) W. LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams 9781305662094, 9781305662087