1. Relationship Selling Mark W. Johnston Greg W. Marshall McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Communicating the Sales Message Chapter 6

3. 6-3

4. Learning Objectives Understand the characteristics of a sales presentation Identify sales presentation strategies Discuss the steps in preparing for the sales presentation Discuss the steps involved in approaching the customer 6-4

5. Learning Objectives Understand how to apply your sales knowledge to the customer’s needs Understand how important product demonstrations are in the presentation Define the keys to a great sales presentation Understand the role sales managers play in sales presentations 6-5

6. Sales Presentation Delivery of information relevant to solving the customer’s needs Often involves a product demonstration 6-6

7. Exhibit Characteristics of a Great Sales Presentation 6.1 Explains the Value Proposition Asserts the advantages and benefits of the product Enhances the customer’s knowledge of the company, product, and services Creates a memorable experience 6-7

8. Exhibit Sales Presentation Strategies 6.2 Presentation Strategy Focal Point of Presentation Talk/Listen Ratio MemorizedProduct90/10 FormulaProduct70/30 Need satisfactionCustomer40/60 Problem solvingCustomer30/70 6-8

9. Memorized Presentations May discuss some areas not important to the customer and leave out some that are Tend to seem high pressure Ensure consistent delivery Are able to deliver more information in the same amount of time 6-9

10. Formula Presentations - AIDA Get the customer’s attention Create interest in the product Develop a strong desire for the product Move the customer to action 6-10

11. Need identification stage – questioning the customer to discover needs Need analysis stage – by combining knowledge of the company’s products and services with the recognition of the customer’s needs, determining how to best meet those needs Need satisfaction stage – presenting the company’s solution to the customer’s needs Need Satisfaction Presentations 6-11

12. Problem-Solving Presentations Focus on customer Considered the most complex and difficult presentation strategy Preferred presentation strategy in relationship selling 6-12

13. Presentation Goals and Objectives Educate the customer Get the customer’s attention Build interest for the company’s products and services Nurture the customer’s desire and conviction Obtain a customer commitment to action (purchase) 6-13

14. Approach the Customer Before the meeting – never make the customer wait Greeting the customer Dress appropriately Turn off or silence all wireless communication devices Be organized The first three minutes Build rapport Non-controversial subjects 6-14

15. Objectives of the Customer Approach Get the customer’s attention Create enough interest in you, your company, and its products and services that you can continue the presentation 6-15

16. Leadership Never Underestimate the Power of Your First Impression 6.1 Portray a confident but not superior manner A clean, neat appearance is essential to making a positive first impression It’s important to smile Try to use your prospect’s name when conversing 6-16

17. Leadership Never Underestimate the Power of Your First Impression 6.1 Show that this meeting is important to you Don’t apologize for taking your prospect’s time Be comfortable and relaxed Position yourself through everything you say and do 6-17

18. Exhibit Approaches to the Sales Presentation 6.3 Referral Customer Benefit Question Assessment Product demonstration 6-18

19. Exhibit The Sales Presentation 6.4 6-19

20. Exhibit Categories of Questions 6.5 Question TypeAdvantageDisadvantage Unrestricted Encourages customer to speak Time consuming RestrictedGets specific informationDiscourages dialogue Data CollectionUncovers relevant dataWastes customer time Investigation Helps uncover customer needs Difficult to manage responses ValidationProvides customer buy-inCan derail presentation 6-20

21. Questioning Drives a Great Presentation Unrestricted/restricted questions – encourage the customer to share information Unrestricted – encourage the customer to speak more freely and salesperson to develop a richer understanding of the customer’s needs Restricted – provide specific information from the customer that the salesperson can use to shape the presentation 6-21

22. Questioning Drives a Great Presentation Data collection questions Gather basic data about customer’s current business or historical perspective Limit use in presentations May provide information that interferes with elements of the presentation Customer may perceive a lack of preparation Investigation questions – assess the customer’s current state of mind 6-22

23. Questioning Drives a Great Presentation Validation questions – help get agreement from the customer Situation questions – provide basic information about the customer’s situation Problem questions – get the customer concentrating on particular issues 6-23

24. Questioning Drives a Great Presentation Implication questions – help the customer recognize a problem’s implications Need payoff questions – directly connect the problem with the value proposition 6-24

25. Leadership The SPIN Selling Approach 6.2 Situation Questions Finding facts about the customer’s existing situation Problem Questions Learning about the customer’s problems Implication Questions Learning about the effects of the customer’s problems Need Payoff Questions Learning about the value of a proposed customer solution 6-25

26. Listening In sales, listening is as, or more, important than talking Most people listen actively only 25% of the time Most people can hear up to 800 words per minute, but only speak around 140 words per minute Active listening - requires commitment to focus on the speaker, concentrate on what is being said, and take in nonverbal as well as verbal messages 6-26

27. Exhibit Guidelines for Active Listening 6.6 Listen patiently Try to understand the feeling the other person is expressing Restate the person’s feeling Allow time for discussion to continue without interruption Avoid direct questions and arguments about facts 6-27

28. Exhibit Guidelines for Active Listening 6.6 Repeat points you want to know more about Listen for what is not said When solicited, be honest in your reply Do not get emotionally involved BE QUIET 6-28

29. Sell FAB Feature – any material characteristic or specification of the company’s products or services Advantage – a particular product/service characteristic that helps meet the customer’s needs Benefit – the beneficial outcome to the buyer from the advantage found in the product feature 6-29

30. Satisfy Customer Needs Get customer agreement Minimize change conflict Establish the relationship 6-30

31. Exhibit Demonstration Checklist 6.7 Justify the need for a product demonstration State the objective of the demonstration Design the demonstration Rehearse the demonstration Plan for unforeseen circumstances 6-31

32. Demonstrations Benefits Can build credibility with customers Create a greater connection between the customer and the product Enhance the effectiveness of your communication Prepare Develop objectives Get customers involved Practice, practice, practice 6-32

33. Innovation McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. All rights reserved. How to be a Better Communicator 6.3 Focus on listening Ask for clarification Be brief Don’t repeat yourself Ask, “Am I making sense?” Have an open-door policy Use self-deprecating humor 6-33

34. Value Proposition Summary of value customer receives based on expected benefits and costs Should be part of every presentation Build a financial business case 6-34

35. Nonverbal Communication Nonverbal communication is the most important element in the communication process Less than 10% of communication is based on what we say 6-35

36. Customer Nonverbal Communication Face – single most important feature in nonverbal communication Arms and hands – open indicate person is open to communication Body language Leaning forward = interest Leaning backward = lack of concentration Quick movements = change of mind 6-36

37. Territorial Space 6-37

38. When Things Go Wrong Interruptions during the Presentation Assess nature of interruption Consider as an opportunity to plan where to take the presentation from here Inappropriate Environment - be prepared for less than ideal conditions Technology Failure – always have a backup plan 6-38

39. Sales Manager’s Role Mentor – help salespeople improve their presentation skills Salesperson – especially at presentations to large customers Equip salespeople for success Training Equipment Motivation 6-39

40. Role Play 6-40 http://www.mhhe.com/business/marketing/videos/RS/06_RP_communicating_sales_message.mp4

41. 6-41