1. © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Using Communication Principles to Build Relationships  What are the basic elements in the communication process?  Why are listening and questioning skills important?  How can salespeople develop listening skills to collect information about customers?  How do people communicate without using words?  What are some things to remember when communicating via technology like phones and e-mail?  How does a salesperson adjust for cultural differences? Some questions answered in this chapter are: 5-2 CHAPTER 5 McGraw-Hill/Irwin

3. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5-3 McGraw-Hill/Irwin “Being able to communicate and dialogue with my customers is the key to being an effective salesperson.” ~Brad Englin BarDan Supply

4. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Building Relationships Through Two-Way Communication The communication process Communication breakdowns caused by: –Encoding and decoding problems –The environment in which the communications occur 5-4 McGraw-Hill/Irwin

5. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5-5 Two-Way Flow of Information McGraw-Hill/Irwin The sender (seller) encodes a message. The receiver (buyer) decodes the message. The sender (buyer) who encodes a reply message. The receiver (seller) then decodes the buyer’s message. Who then becomes…

6. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Sending Verbal Messages Effectively Words are tools Words have different meanings in different cultures and subcultures Word pictures Delivery of words –Pace –Volume –Inflection –Articulation 5-6 McGraw-Hill/Irwin

7. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Active Listening 5-7 McGraw-Hill/Irwin 80-20 listening rule Salespeople should listen 80 percent of the time and talk no more than 20 percent of the time. Speaking-listening differential People can speak at a rate of only 120- 160 words per minute, but they can listen to more than 800 words per minute.

8. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Active Listening (continued) Repeating information Restating or rephrasing information Clarifying information Summarizing the conversation Tolerating silences Concentrating on the ideas being communicated 5-8 McGraw-Hill/Irwin

9. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Reading Nonverbal Messages from Customers Body angle Face Arms Hands Legs 5-9 McGraw-Hill/Irwin Positive Power and authority Underlying tension

10. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Patterns of Nonverbal Reactions to Presentation 5-10 McGraw-Hill/Irwin

11. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No single gesture or position defines a specific emotion or attitude Consider the pattern of signals via a number of channels Signals customers are hiding their true feelings: –Contradictions and verbal mistakes –Differences in two parts of a conversation –Contradictions between verbal and nonverbal messages –Certain nonverbal signals such as hesitation in the voice, small shrugs, and so on 5-11 Body Language Patterns McGraw-Hill/Irwin

12. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. “Perhaps there is some reason you cannot share the information with me.” “Are you worried about how I might react to what you are telling me?” “I have a sense that there is really more to the story than you are telling me. Let’s put the cards on the table so we can put this issue to rest.” 5-12 Encouraging Forthright Discussion McGraw-Hill/Irwin

13. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Sending Messages with Nonverbal Communication Using body language –Facial muscles –Eye contact –Hand movement and hand shaking –Posture and body movements 5-13 McGraw-Hill/Irwin

14. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5-14 The Role of Space and Physical Contact McGraw-Hill/Irwin

15. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Consider the geography –The temperature –The local cultural norms Consider your customers –Their appearance –Their expectations of your appearance Consider your corporate culture –Norms for your industry 5-15 Appearance McGraw-Hill/Irwin

16. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Consider your aspirations –Top levels of your organization –Dress above your position Consider your own personal style –Wait until you have the halo effect –Be reasonable 5-16 Appearance (continued) McGraw-Hill/Irwin

17. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Communicating via technology Face-to-face conversation –40 percent: words –10 percent: voice characteristics –50 percent: nonverbal communications Telephone Practice Prepare Don’t be rushed Smile as you talk Active listening Set objectives 5-17 McGraw-Hill/Irwin

18. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5-18 Comparison of Various Methods of Salesperson Communications McGraw-Hill/Irwin

19. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Immediacy does not equal intimacy. Learn how the customer likes to communicate. Avoid “techno overkill.” Make the conversation meaningful. Customize your messages when using technology. Use speed to impress customers. Don’t deliver bad news via email. Use proper etiquette when leaving voice mail messages. 5-19 Technology Tips McGraw-Hill/Irwin

20. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Salespeople need to recognize that business practices differ around the world Terms have different meanings Time perception 5-20 Adjusting for Cultural Differences McGraw-Hill/Irwin Low-context cultures Most of the information that flows between buyer and seller is in the spoken words themselves. High-context cultures More information is contained in factors surrounding the communication.

21. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. 5-21 Differences Between High- and Low-Context Cultures McGraw-Hill/Irwin

22. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Use common English words, e.g. stop instead of cease. Use words that do not have multiple meanings. Avoid American slang expressions. Use strict rules of grammar. Use action-specific verbs. Never use vulgar expressions, tell off-color jokes, or make religious references. 5-22 Using English in International Selling McGraw-Hill/Irwin

23. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. The communication process consists of a sender, who encodes information and transmits messages, and a receiver, who decodes the messages. Effective communication requires a two-way flow of information. When communicating verbally with customers, salespeople must be careful to use words and expressions their customers will understand. Listening is a valuable communication skill that enables salespeople to adapt to various situations. About 50 percent of communication is nonverbal. Salespeople can use nonverbal communication to convey information to customers. Two-way communication increases when salespeople adjust their communication styles to the styles of their customers. 5-23 Summary McGraw-Hill/Irwin