Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CHAPTER 9 STRENGTHENING THE PRESENTATION

LEARNING OBJECTIVES How can salespeople use verbal tools to strengthen a presentation? Why do salespeople need to augment their oral communication through tools such as visual aids, samples, testimonials, and demonstrations? What methods are available to strengthen a presentation? 9-2

LEARNING OBJECTIVES How can salespeople use visual aids and technology most effectively? What are the ingredients of a good demonstration? Is there a way to quantify the salesperson’s solution to a buyer’s problem? How can salespeople reduce presentation jitters? 9-3

CHARACTERISTICS OF A STRONG PRESENTATION Keeps the buyer’s attention Consider the social style of the prospect and adapt the use of communication aids accordingly Improves the buyer’s understanding Multiple-sense appeals: Appealing to more than one sense Increases understanding dramatically 9-4

CHARACTERISTICS OF A STRONG PRESENTATION Helps the buyer remember what was said Skillful and well timed presentation is likely to be remembered Offers proof of the salesperson’s assertions Most communication tools have proof to back up a salesperson's claim Creates a sense of value Product handling suggests its value 9-5

EXHIBIT HOW WE LEARN AND REMEMBER 9-6

HOW TO STRENGTHEN THE PRESENTATION Use imagination and creativity to make a vivid impression on a customer Make presentation different and stronger Strategically select methods and media that addresses the needs of the buyer 9-7

HOW TO STRENGTHEN THE PRESENTATION Respond to buyer’s unique social style Expressives - Strong, intense colors and lots of photos, cartoons, fancy fonts, and positive images Analyticals - Clean and simple, a list of references, and lots of details Amiables - With people and a relatively slow-moving presentation Drivers - Crisp professional visuals with bold lettering to highlight important points 9-8

HOW TO STRENGTHEN THE PRESENTATION How many people will attend Which stage of the buying process they are in What information they need What type of situation this is Strategizing 9-9

HOW TO STRENGTHEN THE PRESENTATION Word pictures and stories Humor Verbal tools Graphics and charts Models, samples, and gifts Catalogs and brochures Photos, illustrations, ads, and maps Visual tools 9-10

VISUAL TOOLS Testimonials: Statements written by satisfied users of a product or service Effectiveness based on skillful usage Carefully match satisfied user and prospect Test results Tests on the product or service, conducted by the seller’s firm or some third-party organization help strengthen the presentation 9-11

USING MEDIA TO DISPLAY VISUALS Chose media appropriate for the situation Portfolio: Collection of visual aids Video Laptops, iPad, and other portable devices 9-12

USING MEDIA TO DISPLAY VISUALS Digital collateral management systems or sales asset management systems: Used to archive, catalog, and retrieve digital media and text Collateral: Collection of documents that are designed to generate sales Simplify the collection Make it possible for salespeople to easily secure and adapt these selling tools for specific situations 9-13

USING MEDIA TO DISPLAY VISUALS Power point presentations Use visuals that encourage two-way conversation Document cameras or visual presenters: Capable of displaying any three-dimensional object without the use of a transparency Electronic whiteboards: Used when working with customers who prefer to brainstorm an issue or problem SMART boards or digital easels 9-14

PRODUCT DEMONSTRATIONS Appeals to the buyer’s senses For effective demonstrations: Be prepared and secure a proper place for the demonstration Check the equipment before beginning the presentation Get the prospect involved in a meaningful way Relate product features to the buyer’s unique needs Make it an integral part of the overall presentation Keep the demonstration simple, concise, and clear 9-15

PRODUCT DEMONSTRATIONS Plan for dead time Time in which the machine is processing on its own Find out whether the prospect has already seen a competitor’s product demonstration Find out whether anyone present has used your product before Probe during and after the demonstration 9-16

HANDOUTS Written documents provided to help buyers remember what was said Increase buyer retention of information, especially over longer periods, when prepared well Contain the conclusion of the presentation 9-17

WRITTEN PROPOSALS Request for proposal: Document issued by a prospective buyer asking for a proposal Contains customer’s specifications for the desired product, including delivery schedules Used when the customer has a firm idea of the product needed 9-18

WRITTEN PROPOSALS Executive summary: One-or two-page summary that provides: Total cost minus the total savings Brief description of the problem to be solved Brief description of the proposed solution Describe the current situation in relation to the proposed solution and a budget 9-19

GUIDELINES FOR WRITING PROPOSALS Writing guidelines Use polished writing skills and skip buzzwords Focus on actual results that the prospect can gain from going with your proposal Presenting the proposal Convince the prospect about the need for the product Compare the product and terms of sale with those of competitors 9-20

VALUE ANALYSIS: QUANTIFYING THE SOLUTION Process of showing the prospect that the cost of the proposal is offset by added value Common ways to quantify a solution Value propositions Cost-benefit analysis Return on investment Payback period Net present value Opportunity cost 9-21

CUSTOMER VALUE PROPOSITION Way in which a given product will meet the prospect’s needs Identifies how the offerings is different from that of competitors, especially the next-best alternative Should have following features One or more key features of the product/service complete with external proof Benefits, both economical and emotional 9-22

CUSTOMER VALUE PROPOSITION Positioning of your company as the prospect’s long-term partner Personal problem solver Should have solid, clear information is critical 9-23

COST–BENEFIT ANALYSIS Simple cost-benefit analysis: Lists the costs to the buyer and the savings the buyer can expect from the investment Information needed to calculate savings must be supplied by the buyer Comparative cost–benefit analysis: Comparing the present situation’s costs with the value of the proposed solution or the seller’s product with a competitor’s product 9-24

RETURN ON INVESTMENT (ROI) Net profits (or savings) expected from a given investment Expressed as a percentage of the investment ROI = Net profits (or savings)  Investments To ensure accuracy, collect data about costs and savings that the buyer can expect 9-25

PAYBACK PERIOD Length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings Calculated by adding up estimated future cash inflows and dividing them into the investment cost When expressed in years: Payback period = Investment  Savings (or profits) per year 9-26

NET PRESENT VALUE Discounting the cash flows - Firms calculate the value of future cash inflows in today’s dollars Net value today of future cash inflows minus the investment Assesses the validity of an opportunity Net present value = Future cash inflows discounted into today’s dollars - Investment 9-27

OPPORTUNITY COST Return on investment earned from a different use of the same investment capital Successful salespeople: Identify other realistic investment opportunities Help the prospect compare the returns of the various options Never forget that prospects have a multitude of ways to invest their money 9-28

SELLING VALUE TO RESELLERS Profit margin: Net profit the reseller makes, expressed as a percentage of sales Inventory turnover: Calculated as: Annual sales  Average retail price of inventory on hand Measures how fast a product sells relative to how much inventory has to be carried How efficiently a reseller manages its inventory 9-29

COMPONENTS OF INVENTORY MANAGEMENT SYSTEM Efficient consumer response (ECR) Quick response (QR) Automatic replenishment (AR) Just-in-time (JIT) Reduce average inventory and transportation expenses Make products available when end users want them Electronic data interchange (EDI): Computer-to-computer transmission of data from a reseller and back 9-30

RETURN ON SPACE One of the key investment that resellers make Assessed as investment is sales per square foot or sales per shelf foot 9-31

DEALING WITH THE JITTERS Know your audience well Know what you’re talking about Prepare professional, helpful visuals Be yourself Get a good night’s sleep Presentations to groups, feed off the energy and enthusiasm of several friendly, happy-looking people in your audience 9-32

DEALING WITH THE JITTERS Recognize the effect of fear on your body and reduce the accompanying stress manifestations Visualize the audience as friends Think of previous success Realize that everyone gets nervous before a presentation Practice well 9-33