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This Document Contains Chapters 6 to 7 Chapter Six — Planning Sales Dialogues and Presentations Learning Objectives 6-1 Explain why it is essential to focus on the customer when planning sales calls. 6-2 Understand alternative ways of communicating with prospects and customers through canned sales presentations, written sales proposals, and organized sales dialogues and presentations. 6-3 Discuss the nine components of the sales dialogue template that can be used for planning an organized sales dialogue or an organized sales presentation. 6-4 Explain how to write a customer value proposition statement. 6-5 Link buying motives to benefits of the seller’s offering, support claims made for benefits, and reinforce verbal claims made. 6-6 Engage the customer by setting appointments. Chapter Outline Introduction-139 6-1 Customer-Focused Sales Dialogue Planning-140 6-2 Sales Communications Formats-141 Canned Sales Presentations-141 Written Sales Proposals-142 Organized Sales Dialogues-144 6-3 Sales Dialogue Template-148 Section 1: Prospect Information-149 6-4 Section 2: Customer Value Proposition-151 Section 3: Sales Call Objective-152 6-5 Section 4: Linking Buying Motives, Benefits, Support Information, and Other Reinforcement Methods-153 Section 5: Competitive Situation-154 Section 6: Beginning the Sales Dialogue-154 Initiating Contact-155 Section 7: Anticipating Questions and Objections-156 Section 8: Earning Prospect Commitment-156 Section 9: Building Value Through Follow-Up Action-156 6-6 Engaging the Customer-157 Chapter 6 Case-159 Chapter 6 Role Play-161 Exercises Developing Professional Selling Knowledge 1. Why is sales dialogue and presentation preplanning important? Sales presentation planning 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 a salesperson to ever use a canned sales presentation? Canned sales presentations may be effective when the product line is narrow and there is little variation in the types of value that customers derive from the product(s) or 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 salespeople present. 3. Most salespeople use organized sales dialogues and presentations today. Why? Most salespeople use organized sales dialogues and presentations because they provide greater flexibility and 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 necessary to achieve success as a salesperson. 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 and creates a permanent record of the claims and promises the salesperson makes to the prospective customer. 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. The key elements of written proposals are the executive summary, needs and benefits analysis, company description, pricing and sales agreement, and suggested action 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 interest in the proposal. The needs and benefits analysis section clearly states the customer’s needs and then presents the solution with evidence on how it will uniquely address these needs. The company description 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” while providing pricing information and delivery options. Finally, the suggested action and timetable explains the steps necessary for the buyer to complete placing an order. 6. Why is the planning template for sales dialogue and presentation an important tool for today’s salesperson? The primary advantage of the planning template for sales dialogue and presentation is that it ensures salespeople are organized and that they cover all the pertinent content areas when they develop or prepare for a sales presentation. In addition, a planning template helps the salesperson with the process of uncovering needs and identifying a customized solution. Finally, the salesperson can use information collected while developing the planning template for sales dialogue and presentation 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? 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. secondary objectives) 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? 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? Buying motives refers to the most important facts from the customer’s perspective in making a purchase decision. Buying motives are that which will motivate the buyer to make a purchase. These motives may be rational, emotional, or a combination of both. Benefits, on the other hand, describe added value for the customer—the favourable 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? Salespeople will be more likely to secure an appointment with a prospect if they follow three simple directives: give the prospect a reason why 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, pre-call planning.” Teams prepare a brief report on the best ideas from the search, and 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 the sources used in their reports. Experiential Exercises Demonstrating the Differences Between Features and Benefits Objective: Use this exercise to facilitate student understanding of the differences between 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, and 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? 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 Template as shown in Exhibit 6.4 and discussed on page 148. 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 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 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. Video Exercise Planning Sales Dialogues and Presentations Scene 2B, A Helping Hand, run time 2:20 minutes Sales dialogues may follow or precede other sales communication such as a written proposal. Review this sales call and look for how Jim’s previous communication is used in this sales dialogue. Ask your students 1. How does Jim use both verbal and written communication to effectively present his product? Jim uses a combination of verbal and nonverbal communication to help get his ideas across. Jim’s nonverbal communication is, in general, positive and appropriate for what he is communicating. He smiles periodically, uses appropriate hand gestures, maintains an attentive body posture, uses appropriate voice pitch, speaks at an acceptable rate, and makes regular eye contact with the buyer. 2. Comment on the buyer benefits and motives in the scene. The buyer benefits include a managed security system, the possibility of help identifying candidates to fill a systems security position, and the sense of comfort and security that comes from working with a company that has a good reputation and a strong track record of success. The buyer is communicating a mix of needs weighted heavily by situational needs. The primary situational need is the need to have a system in place ASAP because the new software product release date is rapidly approaching. The second need is the need for a relatively low-cost system. This sort of need is based in both situational and functional needs. Other needs bases (i.e., social, knowledge, and psychological) may be woven in here as well, but it’s hard to tell because the clip is relatively short. Chapter 6 Case Nimble foot 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 Trail runner, a regional specialty store chain as a potential prospect for its latest product. Nimble foot’s sales representative, Corey Whyte, hopes to replace a competitor’s product in the Trail runner stores. Corey has begun planning his upcoming sales call on Maria Tupper, head buyer at Trail runner. At a recent trade show, Corey had a brief conversation with Maria and learned that Trail runner’s management is interested in improving the profitability of the chain. Further, Maria made it clear that Trail runner would be interested only in high-quality products. Current Situation Corey and his sales manager, Gabrielle Bellows, have been discussing the plans for the upcoming call on Trail runner. Gabrielle asked Corey to give her a summary of Trail runner’s key buying motives and the related benefits that Nimblefoot could offer. In addition, Gabrielle 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 Nimble foot’s sales message. Corey supplied Gabrielle with the requested information, as shown in Exhibit A. Gabrielle is now reading over Exhibit A and plans to give Corey some feedback tomorrow morning. 1. In the role of Gabrielle Bellows, what specific comments and suggestions do you have for Corey Whyte? Comments and Suggestions for Corey Whyte 1. Highlight Profitability: Emphasize how Nimble foot’s high-quality running shoes can improve Trail runner’s profitability through better margins and higher customer satisfaction. Provide data or case studies showing profitability improvements in other stores that have replaced competitor products with Nimble foot’s shoes. 2. Quality Assurance: Ensure to emphasize the superior quality of Nimble foot’s products. Prepare testimonials, quality certifications, and comparisons to competitor products to substantiate the claims. Bring samples to the meeting for Maria to examine the quality firsthand. 3. Benefit-Supporting Information: Provide concrete evidence supporting the benefits, such as independent reviews, awards, and performance metrics. Prepare detailed product specs and materials highlighting durability, comfort, and design features. 4. Reinforcement Ideas: Utilize visual aids such as brochures, charts, and slides to reinforce verbal claims. Offer a demonstration or trial period for Trail runner to test the shoes in their stores. 5. Customer-Centric Approach: Tailor the presentation to address Maria’s and Trail runner’s specific needs and preferences. Be prepared to discuss how Nimble foot’s shoes align with Trail runner’s brand values and customer expectations. 6. Next Steps: Outline clear next steps and suggest a follow-up meeting to review the results of any trials or additional data needed. Propose a partnership plan that includes marketing support, staff training, and promotional strategies to ensure a successful launch in Trail runner stores. 2. Should a customer value proposition be developed before completing the information in Exhibit A? Yes, a customer value proposition should be developed before completing the information in Exhibit A. It provides a clear framework for highlighting the unique benefits and value Nimble foot’s products offer to Trail runner, ensuring that all information and claims align with the key buying motives and needs of the customer. Role Play Characters: Gabrielle Bellows, sales manager, and Corey Whyte, sales representative Scene: Location—Gabrielle Bellows office; Action—One student plays the role of Gabrielle Bellows, and one student plays the role of Corey Whyte. Gabrielle has told Corey 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 Corey “I will act like the Trail runner buyer, and you try to convince me that your benefits are significant. Be as specific as you can.” Questions (for class discussion after the role play) After completing the role play, address these questions: 1. What were the strengths of Corey Whyte’s performance? Corey Whyte's performance had several strengths: 1. Initial Engagement: Corey effectively initiated contact with Maria Tupper at a trade show, gaining valuable insights into Trail runner’s interests and priorities. 2. Understanding Customer Needs: Corey identified that Trail runner is interested in high-quality products and improving profitability, which are crucial buying motives. 3. Preparation: Corey provided a detailed summary of Trail runner’s key buying motives and the benefits Nimblefoot could offer, demonstrating thorough preparation. 4. Collaboration: Corey engaged in discussions with his sales manager, Gabrielle Bellows, showcasing his willingness to seek feedback and improve his sales approach. 5. Supportive Materials: Corey prepared information to support his claims about the benefits of Nimble foot’s products, indicating a well-rounded approach to reinforcing the sales message. 2. How could Corey’s performance be improved? Corey's performance could be improved by: 1. Developing a Customer Value Proposition: Clearly articulate a unique value proposition tailored to Trail runner’s specific needs and priorities. 2. Gathering More Insights: Conduct deeper research on Trial runner’s current product lines, pain points, and market position to better address their needs. 3. Customizing the Presentation: Tailor the sales pitch to highlight how Nimble foot’s products directly align with Trail runner’s goals of quality and profitability. 4. Practice and Role-Playing: Engage in mock sales calls with his manager to refine his pitch and handle potential objections more effectively. 5. Follow-Up Strategy: Develop a strong follow-up plan to maintain engagement and address any additional questions or concerns Maria might have after the initial meeting. 3. How important is sales call planning in determining sales call performance? Sales call planning is crucial in determining sales call performance because: 1. Preparation: It ensures the salesperson is well-prepared with relevant information, tailored messages, and anticipated questions or objections. 2. Customization: Allows for the sales pitch to be customized to the specific needs and priorities of the prospect, making the presentation more relevant and impactful. 3. Efficiency: Helps in making the sales call more efficient and focused, maximizing the use of both the salesperson's and the prospect’s time. 4. Confidence: Increases the salesperson’s confidence, as they know they are well-prepared and have a clear plan for the meeting. 5. Relationship Building: Demonstrates professionalism and a genuine interest in the prospect’s business, which can help in building stronger relationships and trust. 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 (for class discussion after the role play) After completing the role play, address the following questions: 1. Did the sellers demonstrate that they knew the difference between features and benefits? Yes, the sellers demonstrated their understanding of the difference between features and benefits. The Kindle representative highlighted features such as the extensive Kindle library and long battery life and linked them to benefits like access to a wide range of academic resources and fewer interruptions for charging. The Nook representative emphasized features like expandable storage and in-store support, translating them into benefits such as ample space for course materials and personalized assistance. 2. Did the sellers have sufficient information to be convincing? The sellers had a good amount of information to be convincing. They provided detailed comparisons of the e-readers, addressing aspects such as display quality, user interface, and content availability. Both representatives used relevant statistics and user testimonials to support their claims, demonstrating a thorough understanding of their products and their competitive advantages. 3. Can you suggest additional ways that the sellers could improve their sales communications? To improve their sales communications, the sellers could: 1. Personalize the Pitch: Tailor their messages more specifically to the needs of the university, focusing on how each e-reader can enhance students' learning experiences and outcomes. 2. Use Visual Aids: Incorporate visual aids such as comparison charts, demo videos, or live demonstrations to make their points more tangible and engaging. 3. Address Potential Concerns: Proactively address any potential concerns or objections the buyer might have, such as cost, durability, or ease of use. 4. Provide Testimonials and Case Studies: Share testimonials or case studies from other universities that have successfully integrated e-readers into their programs, highlighting measurable benefits. 5. Follow-Up Strategy: Develop a clear follow-up strategy, including additional resources or contacts for further questions, to keep the conversation going and reinforce their points after the meeting. 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 knows that it is important to plan her sales calls in advance to maximize the time she spends in face-to-face selling. In this selling environment, most customers are not interested in all the features of Brenda’s products. Brenda has to determine what was important to each customer and customize her presentations accordingly. Further, she has 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 nonprofit 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 analogue copier. Brenda hopes to sell EFP a modern digital copier that offers several advantages over the analogue copier currently in use. Questions 1. Using an Internet search engine such as Google, find the general benefits of digital copiers over analogue 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 six to eight potential benefits of a digital copier to EFP. •Reduces the need for equipment–saving money (multifunction–serves as printer, copier, and fax) •Time saving–documents may be distributed electronically •Reduces expenses via lower maintenance costs (fewer moving parts to break down) •Reduces expenses via lower production costs (documents may be distributed electronically, saving paper) •Is consistent with sustainability initiatives •Higher quality output (digital technology produced a superior reproduction) 2. From the listing developed in question 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. Here is an example: “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. Reduces the Need for Equipment – Multifunctionality "Our digital copiers combine the functions of a printer, copier, and fax machine into one device, reducing the need for multiple pieces of equipment and ultimately saving your organization money." 2. Reduces Expenses via Lower Maintenance Costs "Digital copiers have fewer moving parts compared to analogue models, which means lower maintenance costs and less downtime, ensuring that your operations run smoothly without unexpected interruptions." 3. Is Consistent with Sustainability Initiatives "Our digital copiers align with your sustainability goals by significantly reducing paper waste through electronic document distribution and efficient energy usage, helping EFP promote environmentally friendly practices." 4. Higher Quality Output "With our digital technology, you can expect superior reproduction quality for all your printed materials, ensuring that your communications with potential donors and stakeholders are professional and clear." By highlighting these specific benefits, Brenda can make a compelling case to EFP, demonstrating how a modern digital copier will meet their needs and support their organizational goals. 3. For the four benefits identified in question 2, describe what information Brenda should have on hand when she makes the sales call to the EFP buyer. Also describe how this information would be best communicated; that is, what support materials will Brenda need to enhance her verbal communications? 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 colourful 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, graph) supporting the time and money savings. Use of the testimonials vs. the data would depend on the communication style of the buyer. 1. Reduces the Need for Equipment – Multifunctionality Information to Have On Hand: Technical specifications of the digital copier highlighting its multifunction capabilities. Cost comparison showing the savings from consolidating multiple devices into one. Testimonials or case studies from similar organizations that have experienced these savings. Support Materials: A detailed brochure or flyer with images and descriptions of the multifunctional capabilities. A PowerPoint presentation with cost-saving graphs and charts. Video testimonials from satisfied customers. 2. Reduces Expenses via Lower Maintenance Costs Information to Have On Hand: Maintenance records or reports showing lower frequency of breakdowns in digital copiers. Cost analysis of maintenance expenses for digital vs. analogue copiers. Warranty details and service plan options. Support Materials: Infographics showing maintenance cost comparisons. A detailed cost-benefit analysis document. A presentation slide with maintenance savings statistics. 3. Is Consistent with Sustainability Initiatives Information to Have On Hand: Environmental impact reports showing the reduction in paper and energy usage. Certifications and awards related to sustainability of the digital copiers. Examples of organizations that have improved their sustainability metrics using digital copiers. Support Materials: A brochure or handout highlighting the environmental benefits. Charts or graphs showing reductions in paper and energy consumption. Digital mock-ups or case studies demonstrating the environmental impact. 4. Higher Quality Output Information to Have On Hand: Sample printouts showing the quality difference between digital and analogue copiers. Technical specifications emphasizing the resolution and color accuracy of the digital copier. Testimonials or feedback from users about the quality of outputs. Support Materials: High-quality printed samples to show during the meeting. A portfolio of printed materials created using the digital copier. A video demonstrating the copier's printing capabilities. By having detailed and relevant information, along with supporting materials such as brochures, presentations, infographics, sample printouts, and testimonials, Brenda can effectively communicate the benefits of the digital copier to EFP. These materials will help reinforce her verbal communication and provide a clear, tangible understanding of the advantages offered by the modern digital copier. 4. Assume that the buyer acknowledged interest in at least two of benefits identified in question 2. Write a realistic buyer-seller dialogue of Brenda’s interaction with the EFP buyer concerning these benefits. Below is a sample dialogue. Brenda: Previously, you mentioned that you create donor material and have one person work on distributing the material via email, and another person copying the material for distribution via a mailer. You also mentioned that having two people doing the work is costly, is that right? Buyer: Yes. Brenda: Our copiers use digital technology, meaning 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 labour cost and you’ll 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 (analogue) copiers. As you can see from this graphic, they concluded that digital copiers reduced the time on task by 35%. How would a 35% reduction in the amount of time spent on these mailers benefit you? Buyer: Well, we could…. Chapter Seven — Sales Dialogue Learning Objectives 7-1 Describe the key characteristics of effective sales dialogue. 7-2 Describe the differences among features, potential benefits, and confirmed benefits, and describe the role they play in benefits selling. 7-3 Describe how verbal support can be used to communicate value in an interesting and understandable manner. 7-4 Discuss how sales aids can engage and involve buyers. 7-5 Explain how salespeople can support product claims. 7-6 Discuss the special considerations involved in sales dialogue with groups. Chapter Outline Introduction-163 7-1 Effective Sales Dialogue-164 7-2 Needs-Gap Analysis-165 Linking Solutions to Needs-165 Benefit Selling-166 Encouraging Buyer Feedback-167 Creating Customer Value-169 7-3 Interesting and Understandable Sales Dialogue-171 Voice Characteristics-171 Examples and Anecdotes-171 Comparisons and Analogies-173 7-4 Engaging and Involving the Buyer-173 Types of Sales Aids-174 Using Sales Aids in the Presentation-176 7-5 Supporting Product Claims-177 Statistics-178 Testimonials-178 Case Histories-179 7-6 Group Sales Dialogue-179 Sales Tactics for Selling to Groups-180 Handling Questions in Group Dialogue-181 Chapter 7 Case-184 Chapter 7 Role Play-185 Exercises Developing Professional Selling Knowledge 1. What are the key characteristics of effective sales dialogue? The key characteristics of effective sales dialogue 1. Are planned and practiced by salespeople 2. Encourage buyer feedback 3. Focus on creating value for the buyer 4. Present value in an interesting and understandable way 5. Engage and involve the buyer 6. Support customer value through objective claims 2. What are the advantages of using response-checks during a sales dialogue? The primary advantages of response-checks are increased buyer interaction, the ability to understand what the buyer is thinking, and how he or she feels about the ideas being expressed. These questions advance the selling process when they are used to confirm needs, confirm benefits, gauge the buyer’s interest level, and confirm that objections have been addressed satisfactorily. 3. What is the relationship between confirmed benefits and customer value? Confirmed benefits are the benefits the buyer indicates are important and, accordingly, are the source of customer value. The salesperson’s job is to present solutions that produce (or otherwise lead to) the confirmed benefits so that the customer perceives value in the solution. 4. How can salespeople make sales dialogue interesting and understandable for buyers? Salespeople can make sales dialogue interesting and understandable by developing and incorporating attention-getting sales aids/tools. Types of sales aids/tools include anecdotes, comparisons, analogies, visual materials, electronic materials, and product demonstrations. Sales tools and visual aids give the salesperson the capability to present information in a format best suited for the buyer’s communication and learning style. In addition, well-designed visual sales tools and aids maximize the effectiveness of a sales dialogue because they help salespeople capture and hold the buyer’s attention, and boost the buyer’s involvement and understanding. Finally, these tools and aids enhance recall and may increase the credibility of the salesperson’s claims. 5. What are the advantages and disadvantages of the different types of sales aids? It should include something similar to the example below. Visual Materials: Advantages—easy to carry, can be left behind easily, can present complex information in a simplified format Disadvantages—relatively expensive to produce for distribution, do not engage the buyer directly, once developed are not customizable Electronic Materials: Advantages—greater sensory presentation of materials, low cost to distribute and use, can present complex information in a simple format Disadvantages—may be expensive to produce the original, requires access to a power source, requires equipment, and may fail to operate Product Demonstrations: Advantages—engages the buyer directly, gives the buyer the opportunity to see the product in action (makes the concept real); by focusing on the targeted solutions (i.e., features producing confirmed benefits), the salesperson can demonstrate value creation Disadvantages—May be difficult to arrange; product failure is a potential deal-killer and hard to recover from 6. How can electronic materials be used as sales aids? Electronic materials include slides, videos, or other multimedia presentations. They can be presented via computer face-to-face, online in real-time, online on demand, to large groups using an LCD projector, or compressed into a format suitable for viewing on cell phones and personal media devices (e.g., iPhone, iPad, iPod Touch). 7. What are the four stages of the SPES Sequence for effectively using sales aids? 1. State the selling point and introduce the sales aid 2. Present the sales aid 3. Explain the sales aid 4. Summarize The SPES Sequence is designed to facilitate the effectiveness of sales tools and aids by providing a clear structure of introducing, presenting, explaining, and summarizing the sales aid. The first step is to state the selling point and introduce the sales aid; the goal is to prepare the buyer for the visual aid and inform him or her that attention is required. The second step is to present the sales aid, which involves showing the aid and allowing a few moments for the customer to examine the aid and familiarize him or herself with it before using it. The third step, explaining the sales aid, is the step in which the salesperson points out the material information and explains how it supports his or her points. The final step is to summarize, wherein the salesperson reviews the aid’s contributions and then removes the sales aid so as to prevent it from serving as a distraction. 8. How can testimonials be used to support product claims? Salespeople use testimonials to support product claims when the testimonials are relevant to the product claim and when the prospect is able to identify with the source of the testimonial (e.g., a customer with similar needs). Testimonials add credibility to the salesperson’s claims, making it easier for the buyer to believe he or she will realize (after purchase) the particular benefit and associated value. Testimonials serve to reduce the prospect’s perceived risk in making a purchase decision. 9. What are the key challenges of selling to groups versus individuals? Selling to a group is more challenging than selling to an individual because the salesperson is working simultaneously with people and processing different personalities, communication styles, needs, expertise, and responsibilities. The salesperson must be able to deliver a sales presentation that is accommodating to each of the different members of the buying group. This means that the salesperson must be able to adapt, on the spot, to each member and be prepared to present information in a variety of ways. In addition, because each member of the buying group is likely to have his or her own areas of expertise related to needs or possible solutions, the salesperson should be prepared to answer difficult questions from the buying group. 10. How should salespeople handle questions during a group dialogue? The best way for a salesperson to handle questions from the audience is to listen carefully, maintain eye contact with the person asking the question, restate or rephrase the question to ensure understanding, and then provide a clear, concise, and convincing answer. Group Activity Divide the class into groups of three to five. Each group assumes the role of a salesperson for the CanDo Laptop Company selling laptops to a small firm that wants to equip its sales force with laptop computers. Previous meetings with the buyer indicate that its salespeople need laptops that are easy to transport and allow salespeople to show multimedia segments during a sales dialogue. CanDo laptops excel in each of these areas. Each group should identify one sales aid to use for each confirmed benefit and explain how the sales aid would be used during a sales dialogue. Experiential Exercises Interesting and Understandable Sales Dialogue Objective: To help students understand how examples, anecdotes, comparisons, and analogies can be used effectively to make sales dialogue more interesting and understandable for the buyer. Time Required: 30 to 40 minutes Teaching Tip: Provide the class with a benefit statement such as: “XYZ copiers are the most dependable copiers on the market.” Ask students to create examples, anecdotes, comparisons, and analogies to make this statement more interesting and understandable. Then, have 2–3 students present their ideas for each element and discuss these in class. You can then compare the different elements and have the class determine the best example, anecdote, comparison, and analogy presented during the class session and why it was effective. Individual or Group Sales Dialogue for Getting a Job Objective: To help students understand the key differences between individual and group sales dialogue. Time Required: 20 to 30 minutes Teaching Tip: This exercise works best if it is assigned during the prior class. Ask each student to come to class with an outline of a sales dialogue to be used in an individual job interview. During the beginning of class, have 2 or 3 students present their individual sales dialogue outline to the class. Sometimes companies conduct group job interviews. Instruct the students to assume that they have a group job interview tomorrow and have them suggest the key things they need to do to make this group job interview successful. End the class with a summary of the most important points presented. Video Exercise Sales Dialogue: Creating and Communicating Value Scene 2A, An Innovative Solution, run time 2:32 minutes. Benefit selling, both potential and confirmed, is at the core of creating value for customers. A variety of sales tools are available to salespeople to communicate information such as verbal support, printed material, and computer-based presentations. Ask your students: 1. Explain how Lisa uses SPIN and ADAPT to relate the benefits of her product. Lisa first indicates that her system will provide the same features that the product Mark is currently using provides, plus additional features that will solve Mark’s security needs. She then introduces one of the features—24/7 monitoring—and then explains how that feature benefits Mark. She then answers a question about the feature and secures Mark’s interest in the feature. Finally, she asks Assessment and Projection questions in an effort to demonstrate how her product has a competitive advantage over Mark’s current solution. 2. Comment on SPES process and how effectively Lisa uses her sales aids. How does the meeting setting affect her ability to effectively use her sales aids? Lisa States the selling point but doesn’t directly introduce the sales aid. Instead, she Presents the sales aid by turning the computer toward Mark (as she is speaking) so that he can see it. The sales aid, which is a graphic representing the 24/7 monitoring feature, is relatively simple and easy to understand. Lisa does not Explain the sales aid, probably because it doesn’t need explanation. She does not really Summarize the sales aid, but does explain the benefit of the feature. Given that the concept of 24-hour 7-day monitoring and alerting isn’t overly complex, and that the computer graphic she is using isn’t animated, the sales aid as presented doesn’t add much value. The meeting setting, which includes one buyer and a round table (indoors) is a good setting for her use of computer-based (electronic) sales aids. Chapter 7 Case Office Furniture Company Background The Ennismore Furniture Company specializes in providing customers with office furniture solutions that are customized and designed to address productivity and aesthetic needs. It sells office furniture from the leading manufacturers, but creates value by analyzing the specific needs of each customer and then developing a customized design to meet those needs. There are several competitors in the office furniture industry, but most of them focus on low prices. Customers usually pay more for an Ennismore Furniture Company solution, but receive more value in terms of increased productivity and business effectiveness. Current Situation Arnold & Associates is a small but growing accounting firm. The company plans to add more office staff and to increase the number of its accountants. This planned growth means that the firm will have to find new office space because it will have outgrown its current location. Because it plans continued growth in the future, it is looking for a new office that will accommodate current and future growth objectives. Arnold & Associates also wants to purchase new and better furniture for its new office. You are a sales representative for the Ennismore Furniture Company and have been meeting with partner Sarah Arnold as well as accountants and staff at Arnold & Associates. Based on these meetings, you have identified the following office furniture needs. 1. Arnold & Associates has met typically with clients at their offices. It would like to have most client meetings in the future at its new office. This means they desire furniture for these meetings that facilitates these meetings and communicates a professional and customer-friendly image. 2. Their current office furniture did not provide much storage for accountants or staff. Thus, important documents were stored at the end of a long hallway. Employees wasted a lot of time trying to retrieve important documents. Thus, they desire furniture that provides more storage for each employee. 3. Technology is changing at a rapid pace, so furniture that can be easily adapted to new technologies is very important. 4. As Arnold & Associates continues to grow, it will probably have to reorganize itself and is likely to need to adapt the physical office to different organizational arrangements. Office furniture that is adaptable to different configurations is important. You have created an office equipment design for Arnold & Associates that addresses each of the issues presented above and are preparing for a meeting with the partner, Sarah Arnold, the office manager, and a representative for the firm’s accountants. You know that a competitor has already made a presentation to the same group and their offer will cost less than what you will be able to charge. Questions 1. How will you try overcoming the lower price offer by a competitor? By emphasizing the long-term value and benefits of our customized office furniture solutions, highlighting factors such as increased productivity, professionalism, and adaptability, which may justify the higher initial investment. 2. What specific value can you offer Arnold & Associates? We can offer Arnold & Associates customized office furniture solutions tailored to their specific needs and growth objectives, providing furniture that facilitates client meetings, improves document storage and retrieval efficiency, and seamlessly integrates with evolving technologies. 3. How can you most effectively communicate the value of your proposed office equipment design? By presenting case studies or testimonials from previous clients who have experienced tangible benefits from our solutions, demonstrating how our furniture designs have enhanced their productivity, professionalism, and overall work environment. 4. What sales aids could you use to make your presentation more engaging and effective? Visual aids such as 3D renderings or virtual tours of proposed office layouts, interactive demonstrations showcasing the functionality and adaptability of our furniture designs, and sample materials or swatches to illustrate the quality and customization options available. Role Play Situation: Read the Ennismore Equipment Company case. Characters: Sarah Arnold, partner; Tricia MacDonald, office manager; Jessica Attaway, accountant representative Scene: Location—Current Arnold & Associates office; Action—Role plays this meeting. Be sure to address the specific needs identified earlier, to communicate effectively with each person in the meeting, and to incorporate sales aids appropriately. After completing the role plays, address the following questions: 1. How would you evaluate the role play in terms of interesting, understandable, and engaging sales dialogue? What improvements would you recommend? The role play demonstrated engaging sales dialogue by effectively addressing the specific needs of Arnold & Associates and highlighting the value of Ennismore's office furniture solutions. To improve, I would recommend incorporating more interactive elements, such as asking open-ended questions to encourage participation and feedback from the characters. 2. How well did you involve each person in the meeting? What improvements would you recommend? Each character was involved in the meeting by addressing their individual concerns and preferences regarding office furniture needs. To improve involvement, I would recommend allocating more time for each character to express their thoughts and opinions, ensuring that everyone feels heard and valued in the decision-making process. 3. Evaluate the effectiveness of each sales aid used? What improvements in the use of sales aids would you recommend? The sales aids, such as visual representations of proposed office layouts and sample materials, effectively conveyed the design and functionality of Ennismore's office furniture solutions. To enhance effectiveness, I would recommend providing more detailed explanations and demonstrations of how each feature addresses the specific needs identified by Arnold & Associates, ensuring a clear understanding of the proposed solutions. Chapter 7 Role Play Chemong Insurance Company and National Networks Background The Chemong Insurance Company has 3,200 sales agents spread across five regions that cover all of Canada. The company is moving toward the development of a national network that would tie each of the agent offices together with the regional offices and corporate headquarters. The improved communication capability will allow all company personnel to have full access to customer records and will form the core of a comprehensive customer relationship management system that is to be rolled out in 18 months. Current Situation Jim Roberts is a network account specialist for National Networks, a specialist in large corporate network solutions, and has been working with the technology-buying group at Chemong Insurance for several months now. Roberts has worked through several meetings with the buying group members and has a meeting scheduled for next Wednesday to present his recommendations and demonstrate why they should select National Networks as the supplier for this sizable project. Joyce Fields (director of information systems), John Harris (comptroller and CFO), Javid Quadri (Director of Agent Services), and Dianne Sheffield (Director for Customer Services) will make the final decision. Roberts also knows that there is one other competitor who will be making a presentation in hopes of landing the project. The equipment both vendors are proposing is virtually identical due to the detailed specifications that Chemong Insurance had included in the RFP. Prices are also likely to be pretty similar. The decision will most likely come down to the services each competitor includes in their proposals. Based on the information that Roberts has collected from different sources, he has come up with a comparison of customer services National Networks and the competitor (see the table below) offer. Role Play Situation: Read “Chemong Insurance and National Networks” background and current situation. Characters: Jim Roberts, Salesperson for National Networks; Joyce Fields, Director of Information Systems for Chemong Insurance; John Harris, Comptroller and CFO for Chemong Insurance; Javid Quadri, Director of Agent Services for All Risk Insurance; Dianne Sheffield, Director for Customer Services for Chemong Insurance Scene: Location—A conference room at Chemong Insurance; Action—As described, Jim Roberts is presenting the National Networks proposal for a corporate computer network linking Chemong Insurance’s corporate offices with each of its five regional offices and 3,200 sales agents out in the field. Role play Roberts’s presentation of each of the feature-benefit sets incorporating sales aids suitable for use in the group presentation.
Features Capability of National Networks Capability of Competitor Benefits
Service and repair centres 175 affiliated service and repair centres across Canada 21 affiliated service and repair centres across Canada Ensures fast and reliable repairs for hardware and software
Installation and testing Installation and testing done by National Networks employees Installation and testing outsourced to several different companies Knowledge that all installations will be done the right way
Customer call centre 24 hours, 7 days per week, and staffed by National Networks employees 24 hours, 7 days per week, and staffed by an outsource commercial provider Knowledgeable staff always available to assist Chemong Insurance employees with problems
Questions After completing the role plays, address the following questions: 1. What other sales tools and aids might prove useful to Roberts in preparing his proposed solution to the Chemong Insurance buying team? Roberts could utilize interactive presentations or demonstrations showcasing the user interface and functionality of the proposed network solution. Additionally, visual aids such as charts, diagrams, and case studies illustrating successful implementations of similar projects could help reinforce the benefits and credibility of National Networks' solution. 2. How might Roberts employ other tactics for selling to a group to increase the effectiveness of his presentation and advance the sale toward getting an order. Roberts could personalize the presentation by addressing specific concerns or priorities of each buying team member, such as emphasizing cost savings for the CFO, enhanced communication capabilities for the Director of Information Systems, and improved customer service for the Director of Customer Services. Additionally, he could encourage active participation from the group by asking questions, seeking feedback, and facilitating discussions to ensure that everyone feels engaged and invested in the decision-making process. Chapter 7 Continuing Case Up for the Challenge Brenda has a meeting today with the office manager at the law firm Arseneau and Lake (A&L). A&L is a local law firm with five attorneys and one main office. During her initial telephone conversation, the office manager indicated that the firm was reasonably satisfied with their current copiers but that he was always looking for ways to increase office productivity. He also mentioned that he was a little concerned that the firm was paying for many copier features that were not really used. The law firm needed to make a lot of legal-sized copies and be able to collate and staple them. There was little need for other “bells and whistles.” It was also important that a copier be dependable because the law firm made many copies each day. When the copier did break down, fast service was needed to get it repaired as soon as possible. The office manager had some familiarity with NCC products and was eager to talk to Brenda. However, he made it clear that any decision to switch to NCC copiers would require that Brenda also meet with the attorneys and office personnel to get their approval. If Brenda convinced him that NCC copiers would increase office productivity at the law firm, he would be glad to set up a meeting for her with the attorneys and office personnel. Brenda is excited about this opportunity. She knows that NCC copiers are very dependable and that NCC provides exceptional service. She can also offer the law firm a copier with the specific features A&L needs. Questions 1. Prepare the sales dialogue Brenda might use and an anecdote to communicate the dependability of NCC copiers to the office manager. Examples should be relatively short and may not refer to a real event. Anecdotes are short stories that refer to a specific incident or occurrence. Below are sample answers. Example: Our copiers are extremely dependable and rarely break down. 85% of our customers have had zero downtime over the past three years. Anecdote: Our copiers are extremely reliable. Wilson Corporation has been using 20 of our copiers through its offices for the past ten years. During that time, they’ve had only one copier break down, and that was due to someone spilling coffee on the copier. We had the copier up and running within two hours of the service call, and at no charge. 2. Brenda will not be able to demonstrate a copier during this sales call. Describe the types of sales aids she should use to show the buyer an NCC copier with the exact features needed. Since Brenda won't be able to physically demonstrate the copier during the sales call, she can use various types of sales aids to effectively showcase the NCC copier with the exact features needed. Some suitable sales aids include: 1. Digital Presentations: Brenda can create a dynamic digital presentation that visually showcases the key features and benefits of the NCC copier. This presentation can include images, videos, animations, and interactive slides to engage the buyer and provide a comprehensive overview of the product. 2. Product Brochures and Flyers: Brenda should provide printed brochures and flyers detailing the specifications, capabilities, and benefits of the NCC copier. These materials can serve as handy references for the buyer to review after the meeting and share with other decision-makers. 3. Virtual Demonstrations: If feasible, Brenda can arrange for a virtual demonstration of the NCC copier via video conferencing or screen sharing. This allows the buyer to see the copier in action remotely and witness its functionality firsthand. 4. Case Studies and Testimonials: Brenda can share case studies, success stories, and testimonials from satisfied customers who have used the NCC copier. These real-world examples demonstrate the practical application and effectiveness of the product in similar business environments. 5. Visual Aids and Charts: Utilizing visual aids such as charts, graphs, and infographics can help illustrate key selling points, such as cost savings, productivity gains, and environmental benefits associated with the NCC copier. By leveraging these sales aids effectively, Brenda can effectively convey the value proposition of the NCC copier to the buyer, even without a physical demonstration. 3. How can Brenda best use statistics and testimonials to support the excellent service provided by NCC? Brenda can present service call response data incorporating the average time it took (historically) to get a repair technician on-site once a call was placed, and the average time it took to get the copier up and running again. This information could be placed in a line graph if Brenda wanted to show changes over time, or it could be placed in a bar graph to show how it compares with competitors’ response times. Brenda could also use testimonials from current customers. She would need to secure testimonials from current customers that address the issue of the quality of service provided by NCC. Ideally, these would be testimonials from customers with similar needs. 4. Brenda did a terrific job in her sales call with the office manager. He is interested in NCC copiers and has scheduled a meeting for Brenda with the five attorneys and the office personnel. Discuss the major things Brenda should do during her sales call to this group. First, Brenda should be prepared to work with and present to people with different needs, communication styles, and concerns. To help alleviate this issue, if possible and appropriate, Brenda should attempt to pre-sell the group by communicating with the members individually. If that’s not possible, Brenda needs to make sure she arrives early, sets up her materials (checking to make sure everything is in working order), and greets each member by name as they arrive. During the meeting, Brenda needs to make periodic eye contact with each member, invite participation from each member (by name), and be diplomatic should a disagreement between members arise. She should also expect and be prepared to handle difficult questions. That includes listening carefully, restating or rephrasing the question, answering it as thoroughly as possible, and, finally, checking to make sure the question was answered. Solution Manual for SELL Thomas N. Ingram, Raymound W. (Buddy) LaForge, Ramon A. Avila, Charles H. Schwepker, Michael R. Williams, Kirby Shannahan 9780176622107
