ANDREW ZIELINSKI, MBA

4. Product/Service Presentation Covered in this Section Product and Service Categories Features and Benefits Words that Work Building Sales Pitches 5. Effective Presentations (later) We will complete this section over the next two classes when Assignments 5.2 – 5.3 are completed

Where we are: Objectives – 10 Steps to Professional Sales in 7 Weeks Professional Sales Call Preparation – Pre-Approach Professional Client Relations – The Approach Needs Analysis Product/Service Presentation - 1:1 and to Groups 5. Handling Objections 6. Negotiation 7. Closing 8. Follow-Up 9. Merchandising and Promotion 10. After-Sales Service Starting Section 5 of Module early due to exam and extra time to complete Assignments 5.1 – 5.3

Activity Developing Feature Statements 1. Think of the companies you are targeting for internship 2. Pick one product or service from one of those companies 3. Use the template on the next slide. You can copy it to a Word document 4. Write the name, brand, or model of this product or service on the first line of the template and save as: Assignment561_FirstName_LastName.docx or you save save as pdf 5. By searching the internet, find 4 features on this product or service and fill in the first column of the template 6. For each feature, find advantages and benefits that your customer would enjoy if they purchased this product or service and enter this information in the second column of the template 7. For each feature, in the third column, indicate two types of customers that would be interested by that feature 8. Copy the features in the first column to the template on the second slide, after this slide. Indicate the type of feature that each of your four features represents 9. Print a copy of your final table, write your name on all pages and hand in at next class

Activity Developing Feature Statements FeatureAdvantage/BenefitCustomer Type

Activity Developing Feature Statements FeatureEnterpriseCommercialTechnicalPsychologicalEnvironmental

Activity Using Words the Work 1. Download Activity from class web site (Class 25) 2. Transform the sentences provided into more positive pitches 3. Save the template, with your answers as: Assignment562.docx (or pdf) 4. Print and bring to next class 5. Please staple to Assignment561 before handing it in

Activity Building Pitches 1. Find customer motives or needs and create convincing pitches that are based on customer’s reason for visiting your business 2. Work with features, benefits, advantages as seen in this section 3. See handout for cases

The Short Presentation

Handling Objections and Negotiations In this Section…  Handling Objections  Types  Proven Responses by Type  Negotiations  Key Elements  Strategic Attitudes

Why Customer Didn’t Buy NOW…  Looking for more information  Doesn’t have the money  Not really interested/doesn’t really need it  Still shopping (comparing)  Unsure about its quality  Not sure that it answers their needs  Doesn’t understand the benefits  Needs re-assurance  Not in a hurry to buy  They are not the decider  Afraid of regretting the expense  Didn’t understand what salesperson said  No trust in salesperson  Testing salesperson’s knowledge  Already got a better offer elsewhere  They like to bargain  Afraid of “being had”

Objections are Not an Attack  They don’t understand something  Not convinced it’s a good buy Experts say that the mere fact that a prospect expresses an objection indicates some degree of interest, otherwise prospect would just leave

Types Objection TypeDefinitionExample Doubt or further consideration Customer not yet ready to commit. Delay of closing “I need to think about it” “Still shopping” “Want to check out a few other places, first” Emotion-based or principle-based Customer links an emotional attribute to the objection (friendship, loyalty, habit, etc.) “I’ve been doing business with your competitor for over 5 years” “It’s always been this way” “I liked the young lady that work here before”

Types Objection TypeDefinitionExample EscapesCustomer wants to avoid the problem or escape the responsibility of committing to a purchase “I need to speak with my husband first” “I am not the decider” Lack of informationCustomer want more information. Wants to better understand the benefits “Is it certain that I will get those results?” “I want to revisit this part” “I have more questions regarding the guarantee”

Sub-Types of Objections Sub-TypeDefinitionExample Product or Service RelatedQualitative or quantitative aspects of the product or service “It’s too complicated” “It’s not the size I had imagined” “This model is out of style” Price RelatedEither customer doesn’t want to pay the price or doubts the value “It’s too expensive” “It’s out of my price range” “I did not expect this expense” Brand or Location RelatedUsually happens after a bad previous experience or bad atmosphere in store “I once bought this brand. It’s no good” It’s hard to move around in your store” “It’s always dirty, here” “I rarely buy here. Usually, I go to…”

Sub-Types of Objections Sub-TypeDefinitionExample Staff RelatedUsually occur due personal differences between a salesperson and customer “I would like another salesperson to serve me, please” “I prefer being served by a woman (man)” Competition RelatedCustomer thinks they have a better deal somewhere else – price, product,, service, other conditions “Same product at XYZ store but lower price” “I got a better guarantee at the other store” “I’ve been doing business with them for years” Time RelatedLack of time, need time to think, to research, to get advice, to compare, etc. “I want to think about it some more” “I want to take the time to shop around” “I’m in a rush”

When do Objections Arise? When?DefinitionExampleHow to Handle OpeningChallenging to overcome since usually not related to the deal. Customer objects even before you start to present. Maybe your attitude puts them off. Feels forced “It’s okay; I’m just looking” Take some time to observe from a distance After seconds, approach again, differently During Presentation Often a sign of interest. Customer questions specific points. Objects because not yet convinced of benefits “It’s a bit out of our price range” “It’s less expensive elsewhere” Stay calm and respectful Don’t contradict Listen carefully and reformulate to signal that you have indeed understood Never put down the customer

When do Objections Arise? When?DefinitionExampleHow to Handle At the endCustomer still not convinced. Can be a way for customer to not commit to purchase without frustrating you “Interesting. I will think about it some more” Be courteous and composed Try to highlight the benefits If customer really doesn’t want to buy, let it be Stay professional and let them know that you are available to them at the next call

Understanding their Objections Clearly…  This is where we put into practice all the communication skills we covered in Module 2: 1. Be prepared – research and understand which types of objections arise most commonly in your product/service area. Do some research on your client. The more you know ahead of time about them and their buying situation, the better 2. Be empathetic 3. Avoid confrontation 4. Listen 5. Demonstrate interest 6. Smile 7. Stay cool 8. From one sales engagement to another, note what works and what does not

Avoid…  Appearing indifferent  Appearing to agree with the objection  Contradict the customer  Hold to your base proposition  Putting down the competition  Taking objections personally

How to Respond to Objections  Openers that matter  “You are right to focus on this point…”  I understand you point of view…”  I empathize with your situation…”  It is understandable that you say that…”

Some Effective Responses TechniqueDefinitionExample BoommerangTurns an objection into a reason to buy Used to re-enforce your sales argument You bring customer to decide by eliminating their doubts “On that point, you are right. Now, let me show you…” “I am happy that you said that…” “Exactly, this feature will help you…” QuestioningHelps to better hone in on customer’s real concerns and thereby determine best response. Requires customer to explain their objection “What are you saying, exactly?” “Can you provide more information on this point?” “If I understood you correctly, you want more information on…”

Some Effective Responses TechniqueDefinitionExample Re-FramingHighlights the positive aspect of the issue raised. Turns a negative into a positive by re-framing the customer’s concerns “Let’s look at this situation from a different angle…” “If you are not convince, I can demonstrate how it works” BumpingMoves, or bumps, the answer to the question to a later time. Allows opportunity to first focus on product features. Helps customer first understand the product and may even answer the customer’s question “I’ll get to that in a minute” “Let me first explain this part…” “Let’s hold that question and get to it in a little bit…”

Some Effective Responses TechniqueDefinitionExample Re-directionWeakens the objection by re-directing it along solution lines intended by the product. Re-formulates the client’s objection in more positive terms, more favorable terms and to re-ignite their interest “It true; some pickier people may not like the taste, but our studies have shown that they are few “ “Less handy people may find this project more complex but the more advanced builders are really proud to see the end-results” ImplicationCustomer answers the question themselves. Makes customer feel involved in the process and engaged in the communication. Customer will understand product and service more clearly “As you, yourself, said this model will…” “Referring back to what you said before…”

Activity Identifying Types of Objections Case 1: Customer says: “I don’t want to take your time but I am really looking for an organic product.” Salesperson answers: “The tomatoes and basil that go into the production of this sauce come from hydroponic greenhouses that are well controlled.” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 2: Customer says: “Your product is not innovative. There are already 10 models like this on the market” Salesperson answers: “What you want to know is how our product is different. Is that correct?” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 3: Customer says: “It’s heavy for a product that size.” Salesperson answers: “I am happy that you noticed the quality of construction and ruggedness of this product.” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 4: Customer says: “I don’t understand how this will help me save.” Salesperson answers: “I will get to that in a minute. For now, I would like to mention that many customers have purchase this new model recently and really enjoy it” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 5: Customer says: “I can find a similar product elsewhere, at a better price.” Salesperson answers: “Like I mentioned earlier, this model is exclusive to us and offer features that the other, similar, models don’t.” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 6: Customer says: “It seems like this system is complicated to install.” Salesperson answers: “Some people are not handy in that way and might need some support to install the system. For you, though, you said earlier that you are into this type of technology.” What technique did the salesperson use? ________________________________________________

Activity Identifying Types of Objections Case 7: Customer says: “I don’t your products very well. I usually buy from the store across the street.” Salesperson answers: “You will quickly come to see our large product selection. I’m available to answer any questions you may have.” What technique did the salesperson use? ________________________________________________

Negotiating  A negotiation is not an objection  Your company determines the degrees of freedom you will have in any negotiation  It’s not always about price

Sources  Getting to Yes Getting to Yes  Getting Past No Getting Past No  Who Says Elephants Can’t Dance? Who Says Elephants Can’t Dance? Objective  We will look at how to work a negotiation situation to an amicable close. Negotiation and closing are closely related… to the extent that in many cases they are the same

Getting to Yes is a book originally published in 1981 by Williams & Ury, two professors working in a leading group researching negotiation, at Harvard University Proposed approach to negotiations: 1. " Separate the people from the problem" 2. "Focus on interests, not positions" 3. "Invent options for mutual gain" 4. "Insist on using objective criteria" 5. "Know your BATNA (Best Alternative To Negotiated Agreement)" BATNA (Best Alternative To Negotiated Agreement)"

Getting Past No is a follow-up to Getting to Yes  First published in September 1991 it focused on collaborative negotiation in difficult situations. As a negotiating style, it is neither aggressively competitive nor accommodating and cooperative, but both aggressively cooperative  Written by William L. Ury and revised in March 2007 Written by William L. Ury and revised in March 2007

Overview  Have the joint problem-solving mentality together  Break the 5 barriers to cooperation: your reaction, their emotion, their position, their dissatisfaction, their power.  Prepare, prepare, prepare yourself by identifying/developing:  Interests of each side  Options  Standards  BATNA - Best Alternative To a Negotiated Agreement BATNA - Best Alternative To a Negotiated Agreement  What do you aspire to? What would you be content with? What could you live with?

Proposed Approach to Negotiations 1. Don't react: Go to the balcony 2. Don't argue: Step to their side 3. Don't reject: Reframe 4. Don't push: Build them a golden bridge 5. Don't escalate: Use power to educate Details

In-Class Simulation

Activity Negotiation Scenarios 1. Go to web site, Class 28, and download the document: Activity 5.7.2web site 2. For all cases, determine how you would answer your client and how you would behave

Back to Previous Section…. 4. Product/Service Presentation Covered in this Section 1. Product and Service Categories 2. Features and Benefits 3. Words that Work 4. Building Sales Pitches 5. Effective Presentations

The purpose of presentations

 Presentations are a powerful way to communicate your message to a group.  They are an opportunity to gather your audience together to engage in a two-way dialogue.

 Persuade the audience to take a particular course of action  Convey something you want the audience to know  Tailor information to meet the needs of a particular audience

 Provide a forum for discussion of controversial or challenging ideas  Find out how people are reacting to a situation or an idea  Gain commitment and alignment  Engage people in generating solutions to problems

There are many different types of presentations that meet specific needs. These are some examples:  Sales: Outlines the benefits, features, and reasons to buy a product or service  Persuasion: Provides the reasons or support to pursue a particular idea or path

 Status report: Details the progress of a project, a task force, or product sales  Product demonstration: Shows how something works  Business plan or strategy: Sketches out what an organization plans to do next, or articulates the company's goals

Sharing detailed information is not a good use of a presentation. Audiences will not remember detail. Thus, your purpose drives the type of presentation you choose.

 USE PRESENTATION: You can use a presentation to inform an audience about a major change or initiative.  USE WRITTEN FORM: Use written forms of communication for the details.

your purpose drives the type of presentation you choose.

Your objective drives how you develop your presentation.

Maximize the impact of your presentation by learning more about your audience.

Many of us have experienced the paralysis of knowing what we want to accomplish, but having trouble putting down the actual words and ideas. Usually, the easiest way to proceed is to divide the work into stages.

 Stage 1: Define your key message. What do you want people to remember and what action you want them to take? This message flows directly from your objective. You can have a number of supporting arguments, ideas, and facts, but only one key message.

 Stage 2: Identify the arguments that support your message. Avoid excessive detail but be sure to talk about more than just the facts. It is important to identify and address the emotional underpinnings of your message. Why should the audience care about it?

 Stage 3: Finally, identify when it is important to get audience participation, reactions, agreement, or buy-in.

After you have generated your initial set of ideas on content, you are ready to review and refine them.

 Is the key message you have selected really the most critical?  Does it support the objectives of the presentation?  Are the arguments you have made understandable to all levels of your audience?

 Will your content convince the audience to agree with you?  Are logical connections explicit?  What arguments need to be developed?  What contrary arguments do you need to neutralize?

 Then, ask yourself what else you can do or say that may help to persuade your audience. Remember: Include only those details that will persuade. If you are not sure about the impact of a point, leave it out.

 Simplicity in communication is key—especially in large organizations.  Be aware that people can interpret the same words differently, so keep communication concise to avoid the potential for misunderstanding.

Effective Presentations  10 Tips for More Effective Powerpoint Presentations 10 Tips for More Effective Powerpoint Presentations  Watch slideshow on class web siteweb site