AUGUST 5Th 2009 / ISSUe 27

WhAT’S IN A ShOPPeR?

Are you equipped for the post recession shopper?

POlIShING yOUR

cAR WON’T mAke IT GO ANy fASTeR

Work on the inside, not the outside

NZ’s e-mag for sales leaders

TRUST mAkeRS OR BReAkeRS Is it time you applied the reputation lens?

NZSm / AUGUST 5Th 2009 / 2

AUGUST 5Th / ISSUe 27

THIS WEEK’S MUST READ

WHAT’S IN A SHOPPER?

Are you equipped for the post

recession shopper? Jean du Rand

explains the changing nature of

shoppers in a recession and in

the future.

TRUST MAKERS OR BREAKERS

Is it time you applied the

reputation lens? Is anyone or

anything damaging the

reputation of your business?

NZSM CALENDAR

TWO MINUTE TOP-UP

POLISHING YOUR CAR WON’T

MAKE IT GO ANY FASTER

Do “clothes maketh the man”?

SALES TRAINING DIRECTORY

RESOURCE CORNER

TRUST-BASED SELLING

This book by charles h. Green

explains how to deserve and,

therefore, earn a buyer’s trust.

THE CLOSE

8

4

8

10

11

13

14

14

4

11

14

NZSm / AUGUST 5Th 2009 / 3

pauln24 August

having been a regular contributor

to NZSM since the first issue and

seen the fantastic response it has

received, I’m excited and privileged to take

over the editor’s hat from Richard. I welcome

your comment and ideas.

In our lead article, Jean du Rand suggests that he doesn’t know

which of the big brand suppliers to trust anymore. Well cadbury

have certainly added fuel to this fire! The overall winner of the NZ

2009 ‘most Trusted Brand’ award in June, I suspect a new survey

now would show a very different result.

I found their defensive effort to convince the chocolate loving

public that they have lowered their cocoa content (and to my

taste, the product quality) to protect us from the increase in the

cost of cocoa somewhat off the mark.

This is a consumer product, but there is an important lesson

here for anyone in B2B sales and marketing. Rather than hoping

no-one notices, go and have an honest conversation with your

customers first before you change things. If they value your

product and service enough they will probably just accept that

what they trust and depend on is going to cost more.

Happy selling!

Got comments on any of our articles or have any requests for

future articles? email Paul at pauln@nzsalesmanager.co.nz

or drop him a line on (04) 586 4733.

Paul

ABOUT /

Short and sharp, New Zealand Sales

manager is a free e-magazine delivering

thought provoking and enlightening

articles, and industry news and

information to forward-thinking sales

managers, business owners and sales

professionals.

eDITOR / Paul Newsom

ART DIRecTOR / Jodi Olsson

GROUP eDITOR / Trudi caffell

ADVeRTISING/cONTeNT eNQUIRIeS /

Phone Richard on 09 523 4112 or email

richardl@nzsalesmanager.co.nz

ADDReSS / NZ Sales manager,

c/- espire media, PO Box 137162, Parnell,

Auckland 1151, New Zealand

WeBSITe / www.nzsalesmanager.co.nz

NZSm / AUGUST 5Th 2009 / 4

T h I S W e e k ’ S m U S T R e A D

WhAT’S IN A ShOPPeR?

Are you equipped for the post recession shopper?By Jean du Rand

you have been given the latest market data;

your category experts have had unprecedented

success with the most recent new product

development; your figures remain relatively positive

given the current state of the industry, and, finally, your

most recent research seems to indicate that all is well

with your consumers and yes, they still favour you.

you’re lucky, life seems good.

So, let me ask you: Are you equipped for life post this

recession? have you understood what this recession has

meant to the evolutionary momentum that has taken

place in your shopper? Are you aware of what new habits

they have engaged and the possibility that the rampant

consumerism of the past decade has finally begun maturing

into something more akin to cherry picking prudence?

The warning signs have been around for some time. These

little indicators have in large part gone unnoticed by many of

us, smoke screened by the ability of the average family to buy

and consume more and more. Rapid growth over many years

has hidden the flaws in our management of media and in store

marketing. And the warning signs?

As much as 80 per cent of all new product development

fails within the first six months, (in Japan make that 97 per

cent). Many large retailers continue to find their growth in a

combination of efficiencies, supplier funded opportunities,

category and margin switching ideas, inflation pricing and

increased loyalty at a competitors expense. Top line growth is

far more evasive.

Media spend is incredibly inefficient. An AC Nielsen funded

In future, branding will focus on somatic markers.

your work should be to ask and answer the question,

“how do I engage the mental shortcuts of my customers?”

NZSm / AUGUST 5Th 2009 / 5

phone survey in the US in 2007 found the average shopper

could only recall 2.21 commercials of all they had ever seen.

Ever! When you consider that in the USA the average 66 year

old has seen over two million TV commercials that translates

into a lot of wasted TV time.

Price, ever the bluntest of all influencers in shopping

and purchasing behaviour, will become less valuable an

instrument in the next boom cycle. Short sighted retailers

have trained their shoppers with Pavlov like certainty to

salivate based on the size of the ticket. We gawk at the deal

ticket these days, not only the price. To convolute matters

even more, the price promise seems to be made by just

about everyone. Who can I really trust? As a shopper, I

simply don’t know.

In a nutshell, the consumers you advertise to have become

incredibly well suited to filter the permanent advertising

assault. They have developed a kevlar like ability to repel the

ad bullet. With the assistance of technology they are now

able to fast forward your commercials, read ad-free media

sites and simply, yet deliberately, cut your latest $1million ad

right out of their lives. Where you originally promised them

choice, you now deliver them clutter.

So, where do we look to make sure we are truly ready

for this next wave of post recession shoppers? here are

some tips to consider. They are not exclusive and they

are not new, but they may just be the difference between

the success and failure of your next new line, category

strategy or range extension.

chAlleNGe cONVeNTION IN yOUR RANGeSWhether you are a retailer, manufacturer or fisherman, an

age old philosophy encourages you to “fish where the fish

are biting”. That may be true when you’re on a boat but it’s

not always that smart in range management.

consider this: your store or category may have gone

backward by 10% over the past year. Prudent shoppers

engaging in value shopping? It would seem so.

Recent shopper data suggests that basket size, frequency of

purchase and average value have all decreased in the first half

of this year in grocery. In other words, the shoppers who are

loyal to you have all cut back, hence your drop in sales.

But what about the shoppers who are NOT loyal to you, those

who shop at all stores and for whom loyalty means little? The

switchers, as a recent article in the hBR calls them, are up for

grabs. Any gain in switchers is a net gain for you. To go after

them you have to know why they choose someone else over

you, what could convince them to become more loyal to you

and then you have to tempt them instore with your range.

engage the latest technologies in store and the media.

ever heard of “somatic marking”? If not, it refers to the

cognitive shortcuts we make with our purchasing decisions. It is

incredibly obvious in a supermarket; most decisions in store are

still impulse and the great majority take mere seconds to make.

The key question is “why then, do we choose the product type

we do?” Somatic markers are to shoppers what ‘favourites’ is to

web surfers – shortcuts that allow us to make instant decisions

based on a history of a million, seemingly unconnected

events. They are associations of experiences you have had that

influence your shopping patterns.

In future, branding will focus on somatic markers. your work

should be to ask and answer the question, “how do I engage

the mental shortcuts of my customers?” Again, the proof is

all around. consumers choose coke over Pepsi because of

the ubiquitous nature of coke – it seems to be everywhere;

Vegemite is healthy because it was when you were a kid.

Same for milo. Think what Swine flu has done to anti

bacterial hand soaps and you have the chance to create a

marker for all your future soap ads. fear, as the life insurance

NZSm / AUGUST 5Th 2009 / 6

Jean du Rand is a Director of JSDc, an NZ based company specializing in the manufacturer, retailer, shopper and consumer value chain. Visit Jean’s website at www.jsdc.co.nz.

industry so efficiently expose, is a powerful somatic marker.

BecOme yOUR ShOPPeRmany manufacturers have for years invested heavily in

shopper research. By this I do not mean shopper data that

comes from traditional research methods and POS data, but

qualitative data about what shoppers are doing when they

navigate your store. how they walk, what they see, what

they think and what they do.

Some retailers actively attempt to increase dwell-time,

the amount of time the shopper stays in store. There is a

definite and positive correlation between the length of

time in a store and the number of items in the basket – it

varies, but approximately each extra four minutes in store

will translate into one extra item.

Walking your floor with a predetermined shopper

objective unearths the most interesting of events. Watch,

Record, Trial and measure should be your key driver in

testing new adjacencies, new Point of Purchase displays,

traffic flows and promotion opportunities. I tend to spend

time asking shoppers the only question that counts –

“would you recommend this store to your friends?”, and

then I ask why!

RememBeR, eVeRyThING yOU kNOW IS hISTORyIt pays to remember that all the research we typically do

tells us how well (or not so well) we have performed. It tells

us nothing of what we should do. To know what it means to

look forward, remember the following:

Understand that range management is simply a measure of

your appetite for risk, and that loyalty is a double edged sword

as it helps in good times but hurts in the bad times. Spend

some time chasing the disloyal on occasion.

Reinvent your brand spend or your store magnetism by

understanding the mental shortcuts shoppers take. When I

was a kid boys would not be caught dead wearing pink. my

somatic marker told me pink was for girls. Thanks to current

boyhood heroes like matthew hayden, Adam Gilchrist and

more recently the NRl Rugby league teams, boys now have

a different marker altogether. Pink is cool. Pink is hip. Pink is

tough. know what drives your shoppers.

Be a shopper too. more than half of all decisions are made

in store. Impulse was, is and will continue to be, massive.

Watch, record, trial, measure and watch again, and you

may be very surprised at the ideas and results a little in store

shopper marketing can do.

In retail, like in life, history teaches nothing on an oh, so

frequent basis. The last 18 months have resulted in some

potentially evolutionary changes in our shoppers and

consumers. Do you know where to from here?

http://www.businessmentors.org.nz

NZSm / AUGUST 5Th 2009 / 8

By hannah Samuel

Is it time you applied the reputation lens?

Standing back and applying a reputation lens to our

business is a useful way of ascertaining whether

someone, or something internally, may be enhancing

our reputation, or damaging it. Whether we’re building trust

or breaking it.

everything we do has an impact on how we are perceived

and judged. Unfortunately, however hard we might work to

control our reputation, the reality is we can’t control it – we

can only influence it. We can’t control it because we can’t

control what others think of us, and what they think of us is

our reputation – in their opinion.

however, it makes sense to periodically review what we can

control, and these largely fall into three groups that can have

a huge affect on the level of trust and reputation you have. I

call them the Three P’s:

PeOPle

If you’re a solo-operator this is you. If you employ others, it’s every

one of them and you. Are the people that answer your phone, send

out your newsletters, visit clients and do your bookkeeping helping

build trust or damaging it?

Do they understand and support your values and have the training

and confidence to make sound judgment calls when dealing with

a difficult customer or situation? Is the way they come across and

behave representing you in ways that enhance your reputation and

build trust?

If not, it’s up to you to help them understand the impact of their

choices and actions and provide the training and support to enable

them to step up and represent you confidently and with ease.

PROceSSeS

Do you periodically carry out ‘mystery’ or ‘secret

shopper’ checks to see how the processes you

have in place may affect your reputation? Do you

encourage ongoing, wide-ranging feedback from

clients and customers and give any suggestions for

improvement serious consideration? Do you give

people options so they can interact with you in ways

that suit them, rather than one way that suits you?

encouraging both formal and informal feedback

from staff, customers, suppliers and others will

enable you to monitor and adjust the impact

your processes may be having and ensure you

remain relevant, rather than redundant.

NZSm / AUGUST 5Th 2009 / 9

hannah Samuel is a specialist reputation advisor, author and professional speaker, and founder of online

performance-based service directory, TRUSTcite. Visit Hannah's website at www.hannahsamuel.com.

PARTNeRShIPS

Who and what are you associated with, formally and

informally, that may affect your reputation and the level of

trust someone has in you?

Partnerships’ relates not only to legal partnerships, but

also includes your associations – formal or otherwise, with

professional bodies, individuals, companies, brands, joint-

venture initiatives, co-operative groups and so on.

Is being associated with them helping or hindering you? Are

there others you should consider being associated with? have

you considered possible effects if their reputation is damaged

in some way and you’re formally or loosely associated with

them? What might you do in those circumstances?

Our People, Processes and Partnerships hold our reputation in their hands...they have the power to make or break trust on a daily basis

Our People, Processes and Partnerships hold our reputation

in their hands...they have the power to make or break trust

on a daily basis, yet rarely do we consider just how much

impact they can have on how we are perceived.

If you haven’t applied a reputation lens to the Three P’s in

your business lately it would certainly be worth doing so.

We’re only as strong as our weakest links. Better to identify

and minimise chinks in our armour before they become

triggers that can severely damage our reputation and breach

the trust people have in us.

Professional Selling Skills coreAchieveGlobalAuckland

Personal Planning & Time managementZealmark GroupAuckland

Professional Selling Skills coreAchieveGlobalAuckland

Territory managementGeewizWellington

Sales BasicsGeewizAuckland

Negotiation SkillsZealmarkAuckland

key Account managementDavid formanchristchurch

Sales Skills 1Zealmark GroupAuckland

Sales Basics SeminarGeewizchristchurch

Sales DevelopmentDavid foremanTauranga(17-20 August)

Advanced Sales Development David foremanWellingtonkey Account managementDavid foremanWellingtonSales Skills 3emAAuckland

Sales Skills 1Zealmark GroupAuckland

key Account managementDavid formanchristchurch

Professional Selling Skills coreAchieveGlobalAuckland

exceeding customer expectationsGeewizWellington

Sales DevelopmentDavid foremanAuckland(24-27 August)

Advanced Sales Development David foremanWellingtonkey Account managementDavid foremanWellington

fRI 4 SePTThU 3 SePT

mON 31 AUGWeD 26 AUG

TUeS 25 AUGmON 24 AUG

WeD 19 AUGTUe 18 AUGmON 17 AUGfRI 14 AUG

fRI 28 AUG

Sales DevelopmentDavid foremanchristchurch(10-13 August)

consultative SellingNZIm centralWellington(27-28 August)

Telephone Selling SkillsemA Auckland

SUN 30 AUG

SAT 29 AUG

SUN 23 AUG

SAT 22 AUGfRI 21 AUGThU 20 AUG

SUN 16 AUG

SUN 9 AUG

SAT 8 AUG

SUN 6 SePT

SAT 5 SePT

NZSmcAleNDAR

mON 10 AUG

ThU 6 AUGWeD 5 AUG fRI 7 AUG

ThU 13 AUGWeD 12 AUGTUe 11 AUG

SAT 15 AUG

ThU 27 AUG

TUe 1 SePT WeD 2 SePT

NZSm / AUGUST 5Th 2009 / 11

The adage “clothes maketh the man” is an interesting

concept. It is true that we all feel a couple of inches

taller and proudly walk with a better posture when

we’re dressed in our best clothes and on our way to a

wedding. Our psychology does affect our physiology. People

at the wedding reception tell you how great you are looking

which in turn makes you feel great. The reverse is also true.

Our physiology (body language and posture) has a direct impact

on the way we feel. If you are not convinced, try this exercise.

Stand up tall and proud. Put a great big smile on your face and

hold it there. Now try to feel miserable at the same time.

What happened? I’m prepared to bet that if you really

concentrated on your positive posture and smile, you found that

you couldn’t feel miserable however hard you tried. There is an

abundance of scientific evidence that proves the human mind

cannot focus on polar opposites at the same time.

Polishing your car won’t make it go any faster! You can shine

and polish your car all you like. Put it in its Sunday best

clothes, add mag wheels, fluffy dice and a new stereo but it

still won’t go any faster or drive any smoother.

The truth is that to a greater or lesser degree, we all do this in

life. The cars we drive, the houses we live in and particularly

the stories we tell both to ourselves and to others all serve

the purpose of creating and maintaining the image we want

the world to see and believe.

making ourselves look good on the outside is all well and good,

but the real work needs to be done on the engine inside. That’s

why self development in which ever form you choose to get it,

will ultimately make the internal engine perform as well as the

POlIShING yOUR cAR WON’T mAke IT GO

ANy fASTeR

Part 3 of a 3 part series by michael Taplin

external chassis looks.

If you’re brave enough, next time

you’re in a social setting or a business

meeting, examine the way you are

really feeling and the image you are

portraying to the people you meet. Is

it the real you or is it what you want

them to see and believe? Often we find

we have been playing a role for so long

we can’t even tell the difference.

By Paul kernot

Work on the inside, not the outside

founder of Pk Sales Training, Paul

kernot is a highly respected New

Zealand motivational speaker and

corporate trainer. you can visit his

website at www.paulkernot.com

T W O m I N U T e T O P - U P

CUSTOMER: NZIM AUCKLAND INC PROOF TIME 8/05/2009 11:44:23 a.m.REP ID: 960 LAST RUN: 14/05/09

SIZE: 9X46848644AA

Looking for a new training/conference venue?NZIM Northern in Auckland CBD

NZIM Northern is excited to announce our new training and networkingfacilities in Auckland central are available for hire. Whether you are lookingto save costs on expensive hotels or simply looking for a change, ouroutstanding new premises are a perfect choice for a venue.

Physical Address: Level 4 DLA Phillips Fox Tower, 209 Queen StFull day and half day packages with or without cateringSmart Boards, broadband internet, video conferencingExtensive selection of on-site management training resourcesFull-time conference staffSimple flat fee pricing structure

For more information and to download a guide please go to www.nzimnorthern.co.nzor contact Conference Coordinator Sera Churchward on 0800 800 694

6848644AA

PLEASE READ ALL COPY CAREFULLY. CHECK SPELLING AND PHONE NUMBERS.

Once proof is approved APN Newspapers will not accept responsibility for incorrect copy or layout.PROOF

Whether you’re an enthusiastic weekend snapper or a beginner who

wants to learn more, NZ Photographer is the free and fun e-magazine for all Kiwi camera owners!

Delivered direct to your inbox every • three weeks NZ Photographer gives you easy to follow tips, tricks and tutorials on the basics to help you take better photos and make the most of your camera.Plus you’ll keep up to date with • the latest in photo gadgets and the world of New Zealand photography, and be eligible for regular prize draws, competitions, and exclusive NZ Photographer events.To subscribe just visit our website • at www.nzphotographer.co.nz and you’ll receive a great new issue of NZ Photographer via email every three weeks — for free!

NZ’s FREE E-mag FoR camERa owNERs

KIWI M.I.L.K.

Issue 1 July 8th 2009

TOP TIPS:How To BUY THE RIGHT CAMERAFoR YoU

PhOTO ESSaySwHAT ARE THEY & wHAT ARE YoU wAITInG FoR?!

PLUS:

DownLo

AD THE F

ULL

InTE

RvIEw w

ITH

GEoFF

BLA

CkwEL

L:

THE M

An BEH

InD M

.I.L.k

.

CoMPETIT

IonS

PHoTo

SHoP

TIPS

CooL STU

FF

&

MoRE!

kIwI PHoToGRAPHERS wIn 4 PLACES In THE

woRLDwIDE FRESH M.I.L.k. CoMPETITIon

Helping you take better photos

sign up for free at www.nzphotographer.co.nz!

goT a camERa? INTRoDucINg...

NZSm / AUGUST 5Th 2009 / 13

paulkernot.com

NZSm / AUGUST 5Th 2009 / 14

“ “

continuous effort, not strength or intelligence, is the key to unlocking our potential. Winston Churchill

Have you subscribed to New Zealand Sales Manager? It’s free!Simply visit www.nzsalesmanager.co.nz to get a copy of New Zealand Sales manager delivered

straight to your inbox every third Wednesday!

Sales based on trust are uniquely powerful. learn from charles Green, co-

author of the bestseller The Trusted Advisor how to deserve and, therefore,

earn a buyer’s trust. Buyers prefer to buy from people they trust. however,

salespeople are often mistrusted. Trust-Based Selling shows how trust between

buyer and seller is created and explains how both sides benefit from it.

heavy with practical examples and suggestions, the book reveals why trust

goes hand-in-hand with profit; how trust differentiates you from other sellers;

and, how to create trust in negotiations, closings, and when answering the six

toughest sales questions.

Trust-Based Selling is a must for anyone in sales,

is especially invaluable for sellers of complex,

intangible services.

TRUST-BASeD SellINGBy charles h. Green Published by mcGraw hill

$52.53 from

R e S O U R c e c O R N e R