Today, November 5th

•Chapter 12 – Presentation/Demonstration•Chapter 13 – Negotiation

Next Tuesday, November 12th

•Chapter 14 – Closing•Chapter 9 – Building a Customer Base

Where we are and where we are goingSection 104 – Tuesday

ROLE PLAY 2 WEEK OF NOV 18

A Word on the Exam

Improvement over Exam 1 3 question curve Final grade is reflected in on Blackboard Come see me if you have questions

A Word about the course

I strive to be fair in my assessments Please come see me if you have

concerns Don’t wait until the end of the semester Opportunities for extra points So far – 7 possible extra credit points Attendance/contribution points

Here to pad the stats and help you out

Learning Objectives

Identify the three presentation strategies Learn how to create an effective

presentationKeys to Success

Why is the presentation so important? Adds sensory appeal

Attracts customer attention Stimulates interest & desire Improves communication and

retention Provides Proof of buyer benefits Opportunity to give solution

Planning and Executing

Emphasize facts Used to introduce new products/services Stress clarity, simplicity, and directness Less is more—beware of information

overload Transition from information

conveyer to trusted advisor

Informative Presentation Strategy

Persuasive Presentation Strategy Influence the prospect’s beliefs, attitudes, or behavior & encourage action

Subtle seller transition from rational to emotional appeals

Requires training/experience to be effective

Reminder Presentation Strategy Also known as “reinforcement

presentations” Helps maintain product awareness Good when working with repeat

customers Most appropriate with new/emerging or

well-established products?

Keys to Success:Customize the Presentation Tailor the presentation to the needs/problems

mutually identified by prospect and salesperson Make it personal, but… Do not over-structure Professor G says: “PLAN IT, DON’T CAN IT.”

Keys to Success:Cover One Idea at a Time

Pacing - Make sure customer understands each point before moving on Ask Check-In Questions

Summarize your major points KISS: Keep It Simple an Straightforward

Ask summary-confirmation questions

Keys to Success:Telling, Showing, and Involvement Balance all three Involve prospect as much as possible

Proverb: “Tell me, I’ll forget; show me, I may remember; but involve me & I’ll understand.”

Be Creative Use Humor (if applicable)

Appeal to as many senses as possible

Keys to Success:Use Proof Devices Your presentation is the most convincing proof Product itself is often best selling aid Plant tours are excellent source of product info Photos, illustrations, and brochures Articles provide credibility Catalogs show product line and specifications Graphs, charts, and test results Websites, Laptops and software Testimonials

Keys to Success:Create a Demonstration Worksheet

Class Activity - TeamsWhat 3 proof devices you would use when selling:

1. A bicycle to an avid rider

2. A bicycle to a beginner

3. CRM software to an office manager

4. Exhibit space in a ballroom to a vendor

5. Cookware to a professional chef

6. A home security system to the mother of a family of five

7. Life Insurance to a 32-year old married sales professor with no kids at Ohio University

8. Hotel facilities to a conference planner

9. A gym membership to someone looking to lose weight

10. Catering services for a wedding to the bride and her parents

(Some) Proof DevicesProduct itselfPlant toursPhotos\illustrationsBrochuresArticlesCatalogsGraphs\chartsWebsites/LaptopsTestimonialsTest resultsBlueprintsOthers??

Location makes a difference Neutral ground, like hotel/conference

center Firm’s conference room Maybe even Copeland Hall Room 206

Check out meeting room in advance Why?

Keys to Success:Choose Right Setting

Drive home the set of key benefits you will deliver to meet customer needs Only say what you can deliver You can’t give everyone the “best” exhibit space

Quantify the Solution Cost-benefit analysis, ROI, opportunity cost Contribution margin of

your product

Keys to Success:Revisit the Value Prop

Ensure audio/video, computer tools/files are in working order

Be prepared for technology snags Have a backup (or a backup plan)

Keys to Success:Check Sales Tools

Discussion QuestionsAssume you checked everything before giving a sales presentation, including your laptop and projector, your PowerPoint and Excel files to be used, as well as your wireless Internet connection for accessing your company’s Website live.

What problems could still occur? What could you do to prevent these problems

from ruining your presentation?

Computer-based Tools Spreadsheets

organize numbers to prepare quotesConvert to graphs/chartsCan do ‘what-if’ scenarios

Web-based demonstrationsReal time Q&AShow, Tell & Involve

Virtual toursMake it interactive

Computer-based Tools: PowerPoint

Pro: Can incorporate charts, graphs, images, audio, and video

Con: Familiarity level can make it be boring

Goal: Be unique & memorable Alternatives?

Rehearse, Rehearse, Rehearse Get mistakes out of the way beforehand Have presentation videotaped

Do a role play with your professor Because what are we sittin’ here, talkin’

‘bout?

Professional Selling: MKT 3580Chapter 13: Negotiation

Learning ObjectivesTo Understand:

Common types of buyer concerns Specific methods of negotiating buyer

concerns Methods for creating value in formal

negotiations How to work with trained buyers

Negotiation Defined Working to reach an agreement that is

satisfactory to both buyer and seller

Ability to negotiate problems or concerns is most effective way to create value

Negotiation is a process Not a once-and-done

Knowledge = Power

Own Interest

Own Interest

Common Interest

Negotiation: A Win-Win Strategy Selling is not an “us versus them” process If you gain trust negotiation becomes a

partnership If not, it can be combative Goal = Maintain long-term relationship

Planning for Formal Negotiations1. PLANNING

a) Gather information before negotiation

b) Anticipate questions and be prepared with answersc) Develop empathy (put yourself in their shoes)

2. Understand value of what you are offeringa) Value Proposition and Benefits

3. Determine goals and financial objectivesa) Set minimum requirements that you will accept

4. Prepare an agenda & use Negotiation worksheet

Conducting the Negotiation Session

1. Understand the problem

a) Is there a difference between disagreement and misunderstanding?

2. Create alternative solutions that can add value

a) “So your concern is X. Is that correct?” – why say this?

b) Gives you time to think about a response and shows concern

3. Periodically review points of agreement

a) Put disagreements in perspective

4. Do not make concessions too quickly

a) Shows a weak position

5. Be mindful of your timing

a) Negotiations often happen in last part of meeting

6. Know when to walk away

a) When might you do this?

Common Types of Buyer Concerns1. Need for the product – We already

have our own organic soda brand.

2. Product itself– I’m not sure GuS is for Kroger

3. Source of the product – I’m going to check with Dry Soda first

4. Time – I need a month to think it over

5. Price – that price is too high for our gross margin.

Need for Product Conditioned response: “I don’t need the product” –

why?

Not convinced of your product’s benefits

How can you overcome this? Avoid it by solid pre-planning

Prove your product fits their need

Prove they have that need in the first place

The Product Itself Product is not well established

All comes down to your product being…

Buyer may have a loyal, established partner This means there could be an emotional tie

Ways to overcome: Point out profits of adding a second line Point out specific problems your company can

solve

Source of the Product

Concerns Related to Time Also known as “the stall”

Customer does not perceive benefits of buying now

Use probing questions to determine negative feelings

“Is it X that concerns you?”

BUY GuS?BUY GuS?

Options for Negotiating Buyer Concerns Direct denial

John Smith says “GuS is higher calorie than Simple Truth.” How do you refute that opinion or belief?

Be firm, not offensive; think win-win

Indirect denial Prospect may have a point (limitation, con, etc.)

Feel-Felt-Found– “I understand how you feel. Others have felt that way

until they used the product and found it quite easy and reliable.”

Options for Negotiating Buyer Concerns

Questions Convert problem into need-satisfaction question J.S.: “We already have 3 organic soft drinks.”

Yes, but do you have one at this price point?

Superior benefit Acknowledge prospect has valid concern Focus on superior benefit that outweighs that concern

Demonstration Discuss competitive advantages of your product Demonstrations overcome buyer skepticism effectively

Options for Negotiating Buyer Concerns

Trial offer Prospect tries product without purchase commitment

“I know you’re happy with your current provider, let us ship you some free of charge and see what you think.”

Third-party testimony Neutral third-party adds credibility

Almost never triggers an argument from the client

Postpone method It’s OK to get back to a concern later

in the meeting

Role Play…teamsYou are selling OU to a high school senior. They object:

1. It’s too big.

2. Too far from home.

3. Nothing to do there.

4. The teachers are lame.

5. The dorms aren’t nice.

6. It’s too small.

7. It’s haunted.

8. I don’t like nature.

9. My boyfriend/girlfriend is going to another school.

10. It’s too close to home. My parents will visit me.

11. I come from an all boys/girls high school, I’ll lose focus.

Methods to Alleviate Concern

•Direct Denial of issue – You’re wrong.

•Indirect Denial – You are partly correct.

•Convert problem to need-satisfaction question

•Offer Superior Benefit to that concern

•Demonstrate your value somehow

•Trial offer of your value

•Third-party testimony

•Postpone method

Concerns Related to Price Price is one of the most common buyer

concerns.

To most buyers, value is more important than price.

Position product with convincing value proposition.

Customers who perceive added value are less likely to object on basis of price.

Dealing with Price Concerns Do clarify price concerns with questions

Do add value with a cluster of satisfactions

Do not make price focal point

Do not apologize for the price

Do point out the relationship between price/quality

The Price Iceberg, aka, the Priceburg

Price is only the tip of the iceberg. Remind customer of value-added factors below the tip.

Price Concerns: Trained Buyers

Budget limitation tactic You can try unbundling and reconfiguring

Take-it-or-leave-it tactic Review the added value, try to close again

Let’s-split-the-difference tactic “If . . . then” tactic

“If you cut your price by 20%, then we can talk.”

“Sell low now, make profits later” tactic “Reduce your price this once and I’ll come back

to you in the future.”