Carefully Select Which Sales Presentation Method to Use

Carefully Select Which Sales Presentation Method to Use Mc. Graw-Hill/Irwin Copyright © 2007 by The Mc. Graw-Hill Companies, Inc. All rights Chapter 8

Main Topics ù ù ù ù 4 The Tree of Business Life: Presentation Sales Presentation Strategy Sales Presentation Methods–Select One Carefully The Group Presentation Negotiating So Everyone Wins Sales Presentations Go High-Tech Select the Presentation Method, Then the Approach Let’s Review before Moving On! Chapter 8

The Tree of Business Life: Presentation True ice Et hi rv ca l Se T T TT T T Builds Relationships T 5 I C Guided by The Golden Rule: Rule ù Master the art of creating effective ù ù ù sales presentations. Have fun presenting your product. Select your presentation method based on: ù Prior knowledge of customer ù Sales call objective ù Customer benefit plan You will see that ethical service builds true relationships.

The Tree of Business Life: Presentation True ice Et hi rv ca l Se T T TT T T Builds Relationships T 6 I C ù No matter who a salesperson meets with, their purpose is the same – to help the person or organization. ù By taking time to carefully select the best presentation for the group the salesperson is meeting with, he or she will be better able to meet their needs, thus serving them better

(3) Approach - (4) Presentation The Third Step in the Sales Process (Approach) is the First Step in the Sales Presentation 7

The Sales Presentation ù Completely and clearly explains all aspects of the salesperson’s proposition as it relates to a buyer’s needs. 8

There are Several Sales Presentation Methods and You Must Select One According to Your: ù Prior knowledge of the customer ù Sales call objective ù Customer benefit plan 9

The Sales Process ù A sequence of actions taken by the salesperson which leads toward the customer taking a desired action and ends with followup to ensure purchase satisfaction. 10

Exhibit 8 -1: The Third Step in the Sales Process is the First Step in the Sales Presentation ù The sales presentation method determines how you open your presentation. 11

Sales Presentation Strategy ù Salespeople face numerous situations: ù Salesperson to buyer group ù Sales team to buyer group ù Conference selling ù Seminar selling 12

Sales Presentation Methods–Select One Carefully ù The sales presentation involves a persuasive vocal and visual explanation of a business proposition. 13

Sales Presentation Methods–Select One Carefully ù The four sales presentation methods are: 1) Memorized 2) Formula 3) Need-satisfaction 4) Problem-solution ù The basic difference between the four methods is the percentage of the conversation controlled by the salesperson. 14

Sales Presentation Methods— Select One Carefully ù Four Sales Presentation Methods 1. The Memorized Sales Presentation (canned) ù Salesperson’s role is to develop initial stimulus into an affirmative response to an eventual purchase request. 2. The Formula Presentation (persuasive selling) ù The salesperson follows a less structured, general outline in making a presentation, allowing more flexibility and less direction (AIDA). Controls conversation during sales talk; especially at the beginning.

Sales Presentation Methods— Select One Carefully cont… 3. The Need-Satisfaction Presentation ù Designed as a flexible, interactive sales ù presentation, yet the most challenging and creative form of selling Three Phases: 1. Need-development phase 2. Need-awareness phase 3. Need-fulfillment phase

Sales Presentation Methods— Select One Carefully cont… 4. The Problem-Solution Presentation ù Selling highly complex or technical ù ù products It may take several sales calls to develop a detailed analysis A flexible, customized approach to involving an in-depth study of a prospect’s needs

Exhibit 8 -2: The Structure of Sales Presentations 18

Sales Presentation Methods— Select One Carefully 1. The Memorized Sales Presentation Based on one of two assumptions: ù The prospect’s needs may be stimulated by direct ù ù exposure to the product through the sales presentation. The prospect’s needs have already been stimulated because the prospect has made the effort to seek out the product. National Cash Register Co. (NCR)

Exhibit 8 -4 a: Dyno Electric Cart Memorized Presentation (page 257) 20

Exhibit 8 -4 b: Dyno Electric Cart Memorized Presentation, cont. 21

Exhibit 8 -3: Participation Time by Customer and Salesperson During a Memorized Sales Presentation Salesperson talking time Customer talking time 22

Why to Choose the Memorized (Canned) Sales Presentation ù Because it: Method ù Ensures the salesperson gives a well-planned presentation ù Ensures all of the company’s salespeople discuss the same information ù Both aids and lends confidence to the inexperienced salesperson ù It is effective when: ù Selling time is short, as in door-to-door or telephone selling ù The product type is non-technical – such as books, cooking utensils, or cosmetics 23

Why Not to Choose the Memorized (Canned) Sales Presentation Method ù Because it: ù Presents FABs that may not be important to the buyer ù Allows for little prospect participation ù Is impractical to use when selling technical products that require prospect input and discussion ù Requires the salesperson to proceed quickly through the sales presentation to the close, resulting in several closes or requests for the order, which may be interpreted by the prospect as high pressure selling ù Interruptions – salesperson may get off-track; forget 24

Sales Presentation Methods— Select One Carefully 2. The Formula Sales Presentation ù Often referred to as the persuasive selling presentation ù Salesperson follows a less structured, general outline ù ù ù allowing more flexibility and less direction AIDA – AIDCA Straight Rebuy situations The Smith. Kline Beecham products example: “The 10 step Productive Retail Sales Call”

The 10 -Step Productive Retail Sales Call Step Number 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 26 Action Plan the call Review plans Greet personnel Check store conditions Approach Presentation Close Merchandising Records and reports Analyze the call.

Exhibit 8 -6: The 10 -Step Productive Retail Sales Call 27

Exhibit 8 -5: Participation Time by a Customer and Salesperson During a Formula Sales Presentation Salesperson talking time Customer talking time Approach Presentation AI 28 D Close C A

Exhibit 8 -7: A Formula Approach Sales Presentation 29

Why to Choose the Formula Sales Presentation Method ù Because you: ù Are contacting similar prospects in similar situations ù Know something about the prospect ù Have called on the prospect in the past ù Want to ensure all information is presented logically ù Want to have reasonable amount of buyer-seller interaction 30

Why to Choose the Formula Sales Presentation Method, cont… ù Because it allows for smooth handling of anticipated ù questions and objections Examples of product types that work well with this method are: ù Consumer goods ù Pharmaceutical goods 31

Why Not to Choose the Formula Sales Presentation Method ù Because you: ù Do not know the prospect’s needs ù See a need for the prospect to talk more ù Have a complex selling situation such as: ù Selling a technical product ù Selling to a group 32

Sales Presentation Methods— Select One Carefully 3. The Need-Satisfaction Presentation ù The most challenging and creative form of ù ù selling Interactive sales presentation Need-Satisfaction Format

The Need-Satisfaction Presentation’s Phases ù Need-development Phase ù Salesperson allows and encourages the prospect to discuss his needs ù Need-awareness Phase ù Salesperson takes control of the conversation by restating the prospect’s needs to clarify the situation ù Need-fulfillment Phase ù The salesperson shows how her product will satisfy mutually agreed-upon needs 34

Exhibit 8 -8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations Salesperson talking time Customer talking time 35

Exhibit 8 -9 a: A Need-Satisfaction Presentation Salesperson: Mr. Pride, you really have a large manufacturing facility. How large is it? Buyer: We have approximately 50 acres under roof, with our main production building almost 25 acres under one roof. We use six buildings for production. Salesperson: How far is it from your executives’ offices to your plant area? It looks like it must be two miles over to there. Buyer: Well, it does, but it’s only one mile. Salesperson: How do your executives get to the plant area? Buyer: They walk through our underground tunnel. Some walk on the road when we have good weather. Salesperson: When they get to the plant area, how do they get around the plant? Buyer: Well, they walk or catch a ride on one of the small tractors the workers use in the plant. Salesperson: Have your executives ever complained about having to do all that walking? Buyer: All the time! 36

Exhibit 8 -9 b: A Need-Satisfaction Presentation Salesperson: What don’t they like about the long walk? Buyer: Well, I hear everything from “It wears out my shoe leather, ” to “It’s hard on my pacemaker. ” The main complaints are the time it takes them and that some older executives are exhausted by the time they get back to their offices. Many people need to go to the plant but don’t. Salesperson: It sounds as if your executives are interested in reducing their travel time and not having to exert so much energy. By doing so, doesn’t it seem they would get to the plant as they need to, saving them time and energy and saving the company money? Buyer: I guess so. Salesperson: Mr. Pride, on the average, how much money do your executives make an hour? Buyer: Maybe $30 an hour. Salesperson: If I could show you how to save your executives time in getting to and from the plant, would you be interested? Buyer: Yes, I would. [Now the salesperson moves into the presentation. ] 37

Why to Choose the Need. Satisfaction Sales Presentation ù Because you: Method ù Need a flexible, interactive sales presentation ù Need to uncover needs by asking questions ù Need the prospect to talk about his needs ù Use this method the first time you call on a prospect. ù Should you have to come back a second time, you would use the formula sales presentation method. 38

Why to Choose the Need. Satisfaction Sales Presentation cont… ù Examples of. Method, product types that work well with this method are: ù Financial services ù Systems ù High priced goods/services such as vehicles, real estate, computer systems, industrial equipment 39

Why Not to Choose the Need. Satisfaction Sales Presentation Method ù Because you: ù Need more control over the conversation ù Feel should not ask too many questions ù Are new to the sales profession 40

Sales Presentation Methods— Select One Carefully 4. The Problem-Solution Presentation ù Flexible, customized approach involving an in-depth ù ù study of a prospect’s needs May require several sales calls to develop a detailed analysis Usually consists of six steps

The Problem-Solution Presentation’s Six Steps Step 1 - Convincing the prospect to allow the salesperson to conduct the analysis Step 2 - Making the actual analysis Step 3 - Agreeing on the problems and determining that the buyer wants to solve the problem Step 4 - Preparing the proposal for a solution to the prospect’s needs Step 5 - Preparing the sales presentation based on the analysis and proposal Step 6 - Making the sales presentation 42

Exhibit 8 -8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations, cont… 43

Why to Choose the Problem. Solution Sales Presentation Method ù Because you: ù Are selling highly complex or technical products ù Are required to make several sales calls to develop a detailed in-depth analysis of a prospect’s needs ù Need a flexible, customized presentation based on findings 44

What Is the Best Presentation Method? ù Memorized ù Formula ù Need-satisfaction ù Problem-solution 45 Each of these methods can be the best one when properly matched with the situation

What Is the Best Presentation Method? ù Memorized – short time simple product ù Formula – repeat purchases; when you know prospect’s needs ù Need-Satisfaction – need to gather information from prospect first ù Problem-Solution – high-cost tech products; several calls and business proposal

The Group Presentation ù May be less flexible than a one-on-one meeting ù The larger the group, the more structured your presentation. 47

The Group Presentation 1. Give the proper introduction a. State your name b. State your company c. Explain in clear and concise sentence the premise of your proposal 2. Establish credibility a. Give brief history of your company 3. Provide an account list a. Have copies of an account list available for attendees

The Group Presentation 4. State your competitive advantages a. Right up front, succinctly tell the group where your company stands relative to the competition 5. Give quality assurances and qualifications a. Get group on your side by stating guarantees in the beginning b. Show pride in your product c. Give your company’s qualifications and credentials 6. Cater to the group’s behavioral style a. A group exhibits an overall or dominant style b. The group has a decision-making mode that characterizes one of the four behavioral styles

Negotiating So Everyone Wins ù Many salespeople negotiate during the confirming phase of the sale. ù Phases of negotiation ù Planning ù Meeting ù Studying ù Proposing 50

Negotiating so everyone wins ©Phases of negotiation ©Planning – know how your company compares to the competition ©Meeting – you start building the relationship by proving you are someone who is credible, trustworthy, and hopefully the type of person your prospect likes doing business with ©Studying – looking at the big picture for benefits you can provide ©Proposing – tie in features and advantages to benefits and emphasize unique benefits

Sales Presentations Go High Tech ù Videos ù CD-ROMs ù Satellite conferencing ù Computer hardware and software 52

Select the Presentation Method, Then the Approach ù Know which method to use before developing the presentation. ù Plan the presentation. ù Select the approach/opening. 53

The Golden Rule Makes Sense ù Its use sets you apart from all of the other salespeople who only want to make a sale and a fast dollar. ù Treat your prospects and customers as your business neighbors. 54

Let’s Review Before Moving On! ù It’s important to know that: ù Top performing salespeople use parallel dimensions of selling to plan, create, and execute their presentation ù Parallel dimensions interact ù Discussion sequence ù Selling process ù Buyer’s mental steps 55

Exhibit 8 -11: The Parallel Dimensions of Selling Discussion Sequence Discuss Product Show Feature Explain Advantage Lead into Benefit Let Customer Talk Present Marketing Plan Presentation Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty Selling Process Buyer’s Mental Steps Prospecting Money Authority Desire Preapproach Attention Interest Presentation Desire Trial Close Determine Objections Explain Business Prop List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis Meet Objections Conviction Trial Close Suggest Purchase Product, Quantity, Features, Delivery, Installation, Price 56 Close Action (Purchase) Follow-up & Service

Let’s Review Before Moving On! ù What do you talk about in a presentation? ù Product ù Marketing Plan ù Business Proposition ù Suggested Purchase 57

Let’s Review Before Moving On! ù Once you master the dimensions of selling, you will be able to: ù Make a professional sales presentation in any situation ù Show a recruiter or your sales manager that you understand the sales process ù Train other people to become sales professionals ù Know that in a role as a consultant, you can quickly understand the present selling process and sales program that an organization and its sales force will like and that will help them increase sales 58

Summary of Major Selling Issues ù You must master the art of giving a good sales ù ù presentation. The sales presentation method selected should be based on prior knowledge of the customer, your sales call objective, and your customer benefit plan. Show that you have a right to present your product because it has key benefits for the prospect. Many different presentation methods are available. There is no one best method; each one must be tailored to meet the particular characteristics of a specific selling situation or environment. 59

End of Chapter 8 Mc. Graw-Hill/Irwin Copyright © 2007 by The Mc. Graw-Hill Companies, Inc. All rights Chapter 8