Chapter 8 Carefully Select Which Sales Presentation Method

Chapter 8 Carefully Select Which Sales Presentation Method to Use Mc. Graw-Hill/Irwin ABC’s of Selling, 10/e Copyright © 2009 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Main Topics n n n n 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! 8 -2

Sales Presentation Methods Master the art of creating effective sales presentations q Have fun presenting your product q Select your presentation method based on: w. Prior knowledge of customer w. Sales call objective w. Customer benefit plan q 8 -3

(3) Approach - (4) Presentation The Third Step in the Sales Process (Approach) is the First Step in the Sales Presentation 8 -4

The Sales Presentation n Completely and clearly explains all aspects of the salesperson’s proposition as it relates to a buyer’s needs 8 -5

There are Several Sales Presentation Methods and You Must Select One According to Your: n n n Prior knowledge of the customer Sales call objective Customer benefit plan 8 -6

The Sales Process n A sequence of actions taken by the salesperson which leads toward the customer taking a desired action and ends with follow-up to ensure purchase satisfaction. 8 -7

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

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 8 -9

Sales Presentation Methods–Select One Carefully n The sales presentation involves a persuasive vocal and visual explanation of a business proposition. 8 -10

Sales Presentation Methods–Select One Carefully n The four sales presentation methods are: 1) 2) 3) 4) n Memorized Formula Need-satisfaction Problem-solution The basic difference between the four methods is the percentage of the conversation controlled by the salesperson. 8 -11

Sales Presentation Methods— Select One Carefully n Four Sales Presentation Methods 1. The Memorized Sales Presentation (canned) w Salesperson’s role is to develop initial stimulus into an affirmative response to an eventual purchase request. 2. The Formula Presentation (persuasive selling) w 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 w Designed as a flexible, interactive sales presentation, yet the most challenging and creative form of selling w 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 w Selling highly complex or technical products w It may take several sales calls to develop a detailed analysis w A flexible, customized approach to involving an in-depth study of a prospect’s needs

Exhibit 8 -2: The Structure of Sales Presentations 8 -15

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

Exhibit 8 -3: Participation Time by Customer and Salesperson During a Memorized Sales Presentation 8 -17

Why Choose the Memorized (Canned) Sales Presentation Method? n Because it: Ensures the salesperson gives a well-planned presentation q Ensures all of the company’s salespeople discuss the same information q Both aids and lends confidence to the inexperienced salesperson q n It is effective when: q q Selling time is short, as in door-to-door or telephone selling The product type is non-technical – such as books, cooking utensils, or cosmetics 8 -18

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 8 -19

Exhibit 8 -4: Dyno Electric Cart Memorized Presentation 8 -20

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

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

Exhibit 8 -5: Participation Time by a Customer and Salesperson During a Formula Sales Presentation 8 -23

The 10 -Step Productive Retail Sales Call Step Number 1. Plan the call 2. Review plans 3. Greet personnel 4. Check store conditions 5. Approach 6. Presentation 7. Close 8. Merchandising 9. Records and reports 10. Analyze the call 8 -24

The 10 -Step Productive Retail Sales Call 8 -25

Exhibit 8 -6: The 10 -Step Productive Retail Sales Call, cont. . . 8 -26

Exhibit 8 -7: A Formula Approach Sales Presentation 8 -27

Why Choose the Formula Sales Presentation Method? n Because you: Are contacting similar prospects in similar situations q Know something about the prospect q Have called on the prospect in the past q Want to ensure all information is presented logically q Want to have reasonable amount of buyer-seller interaction q 8 -28

Why Choose the Formula Sales Presentation Method? , cont… Because it allows for smooth handling of anticipated questions and objections n Examples of product types that work well with this method are: n Consumer goods q Pharmaceutical goods q 8 -29

Why Not to Choose the Formula Sales Presentation Method? n Because you: Do not know the prospect’s needs q See a need for the prospect to talk more q Have a complex selling situation such as: q w Selling a technical product w Selling to a group 8 -30

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

The Need-Satisfaction Presentation’s Phases n Need-development Phase q n Need-awareness Phase q n Salesperson allows and encourages the prospect to discuss his needs Salesperson takes control of the conversation by restating the prospect’s needs to clarify the situation Need-fulfillment Phase q The salesperson shows how her product will satisfy mutually agreed-upon needs 8 -32

Exhibit 8 -8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations 8 -33

Exhibit 8 -9: A Need-Satisfaction Presentation 8 -34

Exhibit 8 -9: A Need-Satisfaction Presentation, cont. . . 8 -35

Why to Choose the Need-Satisfaction Sales Presentation Method ù Because you: 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. 8 -36

Why to Choose the Need-Satisfaction Sales Presentation Method, cont… ù Examples of 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 8 -37

Why Not to Choose the Need. Satisfaction Sales Presentation Method n Because you: Need more control over the conversation q Feel should not ask too many questions q Are new to the sales profession q 8 -38

Sales Presentation Methods— Select One Carefully 4. The Problem-Solution Presentation w Flexible, customized approach involving an indepth study of a prospect’s needs w May require several sales calls to develop a detailed analysis w 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 8 -40

Exhibit 8 -8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations, cont… 8 -41

Why to Choose the Problem. Solution Sales Presentation Method n Because you: Are selling highly complex or technical products q Are required to make several sales calls to develop a detailed in-depth analysis of a prospect’s needs q Need a flexible, customized presentation based on findings q 8 -42

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

What Is the Best Presentation Method? n n Memorized Formula Need-satisfaction Problem-solution Each of these methods is the best one when properly matched with the situation 8 -44

Exhibit 8 -10: Important Characteristics of Types of Sales Calls Characteristics Relationship Memorized (Structured) Transactional. Relationship Formula (Semistructured) Partnering Need-Satisfaction (Unstructured) Partnering Problem-Solution (Customized) Partnering When Used New customer door-todoor; telesales Repeat customer New customer, new opportunity New customer; new opportunity Opening Canned Reminder of past status Questions Request for study Presentation Time Minutes Half hour(s) Day(s) Week(s) Multiple Calls? No Sometimes Frequently Always Type of Negotiations None Several Variables Flexibility None Modest Assumed Interest Level Already established, or can be generated Already established Multiple Variables No script Not established, or not known No script Not known Prior Contact with Buyer? Not usually Usually Type Product Trivial; simple Simple; previously sold Industrial/Technical Complex Vegetable dicer, Premium cable channel Home entertainment center, vacuum cleaner, cosmetics consumer goods, cars computer, real estate Internet network, warehouse system company insurance 30 -50 K 40 -70 K Sample Product Salary ($) Not necessarily Complex. Script 50 -90 K Not necessarily 80 -200 K 8 -45

The Group Presentation n n Either you or your team presents the proposal to a group of decision makers. The flexibility of the presentation depends on size: The larger the group, the more structured your presentation q You can structure the presentation and provide a question-and-answer period at the end or during the presentation q 8 -46

The Group Presentation, cont… n Give a proper introduction q n Establish Credibility q n Give a brief history of your company Provide an Account List q n State your name, company, and proposal Have copies of an account list available State your Competitive Advantages q Tell the group where your company stands relative to the competition 8 -47

The Group Presentation, cont… n Give Quality Assurances and Qualifications q n Cater to the Groups Behavioral Style q n n State Guarantees in the beginning Determine the overall dominant style in order to hold their attention Get people involved The proposal No prices Summarize Benefits 8 -48

Negotiating So Everyone Wins 8 -49

Negotiating So Everyone Wins n There are many negotiating styles. Cooperative q. Competitive q. Attitudinal q. Organizational q. Personal q n The experienced sales person will negotiate in a way that achieves satisfaction for both parties 8 -50

Negotiating So Everyone Wins, cont… n Phases of Negotiation Planning- know how your company compares with the competition. q Meeting- build a relationship that eases the negotiation process. q Studying- look for benefits you can provide. q Proposing- what you do in the presentation sets the stage for what may come later. q 8 -51

Sales Presentations Go High Tech n n Videos CD-ROMs Satellite conferencing Computer hardware and software 8 -52

Select the Presentation Method, Then the Approach n n n Know which method to use before developing the presentation Plan the presentation Select the approach/opening 8 -53

Exhibit 8 -11: The Parallel Dimensions of Selling Discussion Sequence Selling Process Discuss Product Prospecting Show Feature Explain Advantage Lead into Benefit Let Customer Talk Preapproach Approach Present Marketing Plan Presentation Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty Buyer’s Mental Steps Money Authority Desire 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 Close Action (Purchase) Follow-up & Service 8 -54

Let’s Review Before Moving On! n It’s important to know that: q n Parallel dimensions interact w Discussion sequence w Selling process w Buyer’s mental steps Discussion sequence 8 -55

The Golden Rule Makes Sense n n Its use sets you apart from all of the other salespeople who only want to make a sale and a fast dollar Treat your prospects and customers as your business neighbors 8 -56

Summary of Major Selling Issues n n n You must master the art of giving a good sales 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 8 -57