Anderson Basicppt Ch 06

8/13/2019 Anderson Basicppt Ch 06

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Chapter Six

Sales Presentation

andDemonstration:

The Pivotal

Exchange

PowerPoint presentation prepared by

Dr. Rajiv Mehta


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Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 2

Chapter Outline

The first sales call and the sales presentation

Planning the sales presentation

General guidelines for effective sales presentations Sales presentations to groups

Sales presentation strategies

Adaptive versus canned sales presentations

Written presentations

Selling the long-term relationship


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Learning Objectives

After reading this chapter, you should understand

Alternative sales presentation strategies.

Guidelines for effective sales presentations

and demonstrations to organizationalprospects.

Preparation of written sales presentations.

Sales presentation strategies for different

prospect categories.

Use of adaptive and canned sales

presentations.

Sales presentations to prospect groups.

How to make a sales presentation memorable.Royalty-Free, Digital Vision/Getty Images


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Figure 6.1:

The Personal Selling Process (PSP)

The fourth step of the professional selling cycle


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The First Sales Call and the

Sales Presentation

Successful salespeople think of the sales presentation and

demonstration as the pivotal exchange between seller and

buyer in the sequence of exchanges that make up the

selling process

The approach emphasized in this text is the consultative

problem-solving strategy

Consider several tasks before making the sales

presentation


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Planning the Sales Presentation

Gathering information1.

Identifying the prospects problems and needs2.

Preparing and presenting the sales proposal3.

Confirming the sale and/or the relationship4.

Ensuring customer satisfaction5.

To prepare for the first sales presentation, salespeople can think of 5planning stages:

Chapter Review Question:

What are the basic steps in planning the

sales presentation?


7/54Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 7

Table 6.1 Planning the Sales

Presentation and Demonstration



1. Gathering Information

Too much talk can be detrimental to the sales process. A chronic

complaint is that salespeople talk too much, fail to ask the right

questions, and do not really listen to the buyer.

Top-performing salespeople understand the need to gather all therelevant information they can about prospects and their perceived

problems.

First, they make sure theyre talking to decision-makers (those with

authority to buy) or key influencers, so neither partys time is wasted.

Next, they ask probing questions to encourage prospects to provide

information on perceived problems, objectives, financial issues, needs,

and personal feelings.



2. Identifying the

Prospects Problems and Needs

Using a consultative,

problem-solving approach,

the professional salespersontries to uncover the

prospects perceived

problems and needs through

skillful questioning andcareful listening.Royalty-Free, Digital Vision/Getty Images



3. Preparing and Presenting the

Sales Proposal

Before making a sales presentation,

take the time and effort to prepare

yourself to give a superb

performance.

Thus, remember the following:

A. Professional approach to sales

presentations

B. FABleads to SELLSC. Value-added selling (VAS)

Royalty-Free, Digital Vision/Getty Images





Sales Proposal

A. Professional approach to sales presentations

Salespeople should custom-tailor the sales presentation anddemonstration to the prospects specific business situation, needs,

and individual communication style.

The sales presentation strategy can vary depending on different

types of prospects as shown in Table 6.2.



Table 6.2 Prospect Categories and

Sales Presentation Strategies



Table 6.2 contd




Sales Proposal

B. FAB leads to SELLS

Featuresare the obviouscharacteristics of the

product.Advantagesare the

performance traits of theproduct that show how itcan be used to help thecustomer better solve a

problem than presentproducts can.

Benefi tsare what thecustomer wants from theproduct.

Showthe products features.

Explainits advantages.

Leadinto the benefits for theprospect.

Letthe prospect talk.

Starta trial close.

F

A

B

S

E

L

LS


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Sales Proposal

C. Value-added selling (VAS)

A comprehensive strategy, VAS focuses on providing customers withextra, or value-added benefitsover those offered by competitors

VAS shows customers that the extra overall perceived value is greaterthan that the competitors are offering

VAS presentations go beyond the FAB approach to convincingly presentand demonstrate the overall added value (benefits) that the customerwill receive from purchasing from their company across four categories:

1. Value-added product benefits

2. Value-added relationship benefits

3. Value-added company benefits

4. Value-added salesperson benefits

Chapter Review Question:What is the value-added

selling approach to sales

presentations? Identify and

discuss the four value

dimensions.


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Table 6.3 Value-Added Benefit

Comparison Chart


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4. Confirming the Sale and/or the

Relationship

Professional salespersons:

See their prospects and customers as bus iness partnerscultivating arelationship based on trust, mutual interests, and cooperation, instead ofaggressively on closing the sale.

Spend considerable time trying to undercover and fully understand theneeds and concerns of their partners through attentive listening and byserving as trusted advisers, consultants, and even friends.

Do not want to sell products or services with which the customer will notbe satisfied.

Realize that only by providing continuous customer satisfaction will theyobtain the repeat business that leads to long-term customer loyalty andhigher commissions for themselves and greater profits for theircompanies.


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5. Building Relationships and

Achieving Customer Satisfaction

Some underperforming salespeople neglect post-purchase customerservice. Immediately after the sale, their interest, contact, andrelationship with the customer fall off rapidly.

Such shortsightedness or indifference is a relationship killer, and thesesalespeople may later have to work doubly hard to reestablish rapportand rebuild the relationship with that customer.

High performing salespeople are committed to providing prospects andcustomers with totally satisfying service throughout the long-runrelationshipbefore, during, and after the sale.

They understand that fully satisfying current customers generates repeatsales, referrals to other prospects, and increased sales as customerneeds grow.


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General Guidelines for

Effective Sales Presentations contd

In sales presentations and demonstrations, salespeople can facilitateprospect involvement and the learning process by using 4 learningprinciples

1. Participation

Prospects who participate in the sales presentation anddemonstration retain more information and develop morefavorable attitudes

2. Association

Prospects remember new information better if they can connectit to their personal knowledge, past experiences, or frames ofreference


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3. Transfer

Prospects who see the product being used in situations similar

to their own can better visualize its benefits

4. Insight

Product demonstrations should weave facts and figures from

the sales presentation into the prospects own experience


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Prospects want to understand a product with all their senses, so whereappropriate in the demonstration help prospectssee, hear, feel, smell, andtastea product.

Eightplanning steps to prepare for the demonstration are:

1. Demonstrate benefits that arecustom-tailored to the prospect'sneeds

2. Decide what to say about thebenefits from the prospect's

perspective

3. Select sales aids that involve themost human senses and will makethe most positive impact



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4. Pre-check all sales aids to make sure

everything is working smoothly

5. Decide when and where to make the

demonstration (usually a controlled

environment is best)6. Involve the prospect in the

demonstration. Remember the motto:

"If they try it, they'll buy it

7. Prepare a written demonstration outlining three columns:

Benefit to demonstrate

What to say

What to do

8. Rehearse the demonstration many times until you have the right timingof actions and words

Royalty-Free, Digital Vision/Getty

Images


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Dressing for Success

Additional suggestions for dressing for success are found in Table 6.4

An important part of anysales presentation is the

salesperson'spersonal

appearance



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Table 6.4 Dressing for Sales

Presentation Success


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Effective Behavior and

Listening Principles

Look like a successful salesperson

Develop rapport early

Adjust to the customer's communication style

Present the strongest customer benefits and selling points

first

Establish credibility

Make the presentation fun Arouse as many of the customer's five senses as possible

Combine factual and emotional appeals


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Effective Behavior and

Listening Principles

Look for and use responsive behaviors

Help prospects draw the right conclusions

Avoid making puns

Never tell ethnic or offensive jokes

Never disparage another company or individual

Assume a relatively firm negotiating position initially

Help prospects draw the right conclusions Use humor with discretion and only when appropriate

Readily admit minor product weaknesses


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Table 6.5 Behavioral Guidelines for Effective

Sales Presentations and Demonstrations


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General Guidelines for Effective Sales

Presentations: Listening Principles

The old maxim The reason you have two ears and one mouth is

that you should listen twice as much as you talkis especially true

for a salesperson

Salespeople must act

professionally and listen

reactively to their

prospects

Royalty-Free/CORBIS


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Table 6.6 Keys to Good Listening


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Table 6.6 Keys to Good

Listening contd


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Sales Presentations to Groups

Sales presentations to organizational prospects and

customers must include a business strategy (business plan)

explaining how the product can profitably be resold or used

to make other products

When making presentations to groups, salespeople may

wish to use a presentation planning checklist

Organizational customers must be convinced of the

soundness of the overall business strategy before they will

buy the product


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A. Sales Presentation Format

Salespeople succeed usingmany different kinds of grouppresentations. One populargroup presentation formatfollows this sequence:

2. Product

1. Problem

3. Benefits

4. Evidence

5. Summary

6. Action


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B. Alignment of the Sales Presentation

Before your talk, align the sales presentation by knowing:

1. Who is the prospect audience?

2. What benefits are the prospects

seeking?

3. How do the prospects prefer to

communicate?



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Table 6.7 Sales Presentation Alignment

and Guidelines for Prospect Groups


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Guidelines for

Sales Presentations to Groups

1. Begin with an audience-focused statement of purpose

2. Translate the product into prospect benefits

3. Energize the sales presentation and make it memorable by usingS A D T I E:

S Statistics

A Analogies, similes, and metaphors

D Demonstrations

T Testimonials

I Incidents

E Exhibits


In context of making

presentations to groups, what

does the acronym SADTIE stand

for?

Define and give an example of

each of the following aids for

sales presentations: (a)

analogies, (b) similes, and (c)

metaphors.


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Guidelines for

Sales Presentations to Groups contd

4. Encourage interaction and

participation

5. Show your commitment to

customer service

6. Ask for specific action

7. Critique the sales presentationRoyalty-Free, Digital Vision/Getty Images


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Sales Presentation Strategies contd

In preparing sales presentations to achieve specific objectives, you canuse several alternative strategies, including:

Stimulus-response

Salesperson asks a series of

positive leading questions

Formula

Salesperson leads the prospect

through the mental states of buying

(attention, interest, desire, and action)

Need satisfaction

Salesperson tries to find dominant

buying needs


List and briefly describe thebasic sales presentation

strategies. Which one is

generally considered best for

professional salespeople?

Why?

Royalty-Free/CORBIS


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Sales Presentation Strategies contd

4. Consultative problem solving

This is the most frequently recommended and most successful sales

presentation strategy for today's professional salespeople by

a) Focusing on the prospect's problems, not the seller's products

b) Emphasizing the partnership of buyer and seller and stresses

"win-win"outcomes in negotiations


What is the consultative

problem-solving sales

presentation strategy? Givean example of a selling

situation where this strategy

would be especially

appropriate?

5. Depth selling

Employs a combination of several sales

presentation methods

6. Team selling

Presentation made to a group of decision

makers from different functional areas


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Table 6.8 Sales Presentation Strategies


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Table 6.8 Sales Presentation

Strategies contd

Ad i V C d


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Adaptive Versus Canned

Sales Presentations contd

Adaptive selling stresses the adaptation of each sales presentation and

demonstration to fit each individual prospect

Canned selling is any highly structured or patterned selling approach

Both adaptive and canned sales presentations can beeffective when matched with the appropriate prospect in adesignated sales situation


Explain the difference between adaptive

and canned sales presentations.


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Written Presentations

Whether used at the time of the verbal sales presentation or mailed asa follow-up after the sales call, a written presentationcan be very

effective in winning sales

Several suggestions for writing effective sales presentation include:

1. Tailor each written salespresentation to the specificcustomer

2. Make the opening paragraph ofthe presentation sparkle

3. Sequence benefits in the mosteffective order

4. Be positive and upbeatRoyalty-Free, Digital Vision/Getty Images


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Written Presentations contd

5. Use a natural, conversational style inwriting

6. Use a lively and logical format

7. Never disparage competitors8. Ask for action

9. Personalize the proposal with ahandwritten note

10. Double-check and proofread everything


Give some basic guidelines for written

sales presentations.


T bl 6 9 Ti f


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Table 6.9 Tips for a

Written Sales Presentation


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Selling the Long-term Relationship

As many industries seek to improve quality and reduce

costs, the trend toward closer supplier relationships, longer-

term contracts, and fewer suppliers is increasing

Salespeople must go beyond mere selling to serving theircustomers much like consultants or business partners

What these trends tell selling organizations is that selling the

long-term relationshipis not just another strategy, it is fast

becoming the only viablestrategy


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Key Terms

FAB A memory-aid acronym that stands for a products Features, Advantages,

and Benefits that will appeal most to a salespersons customer.

SELLS

A memory-aid acronym: Show your products key features, Explain its major

advantages; Lead into specific benefits for the prospect; Let the prospect domost of the talking; and Start a trial close, and use more throughout thepresentation

Value Added

Providing customers extra or added-value benefits than offered bycompetitors.

SAD TIE

A memory-aid acronym that stands for Statistics, Analogies,Demonstrations, Testimonials, Incidents, and Exhibits, one or all of whichthe salesperson may use to spice up a sales presentation.


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Key Terms contd

Core Selling Team

Members of the selling firm assigned to particular prospects or customers todevelop and maintain ongoing buyer-seller relationships with them.

Selling Center

Members of the selling organization assigned to a certain prospect to close a

particular sales transaction. After the sale is consummated, the sellingcenter is likely to disband.

Adaptive Selling

Modifying each sales presentation and demonstration to accommodate eachindividual prospect.

Canned (or Programmed) Selling

Any highly structured or patterned selling approach. Written Presentation

In sales presentations to organizational prospects, the salespersonsexplanation of how the prospect can profitably use the product. Also called asales proposal or business plan.


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Chapter Review Questions

1. Why are the sales presentation and demonstration so

important in the Personal Selling Process?

2. Why are clothing and accessories important considerations

in making an effective sales presentation?

T i f Th ht d


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Topics for Thought and

Class Discussion

1. Why do you think the consultative problem-solving salespresentation is the most successful strategy forprofessional salespeople? What are the benefits of thisstrategy to the prospect or customer?

2. Name at least five special prospect categories, anddescribe an appropriate strategy for a sales presentation toeach.

3. Which do you think is more effective for most business-to-business selling, an oralor a writtensales presentation?

Why?4. Do you think sales presentations and demonstrations are

more important for tangible products or for intangibleservices? Why?


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Internet Exercises

1. Using an Internet search engine, find three firms that

specialize in sales presentation training, and visit their

websites to determine whether they use other types of

sales presentation strategies in addition to those identifiedand described in this chapter.

2. Use Google or any other search engine to locate two

examples of sales presentation strategies beingdemonstrated using Flash or streaming video.


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Projects for Personal Growth

1. Contact two business-to-business salespeople and ask them abouttheir methods of preparing sales presentations, dress style during the

presentation, and demonstration techniques.

2. Research the following two industries and report on the methods and

approaches that each uses to sell its products: (a) airplane

manufacturers, and (b) manufacturers of household products.

3. Contact three salespeople (one who sells to manufacturers, one who

sells to resellers, and one who sells to the national government) andask them how they prepare for their sales presentations and

demonstrations. Are there major differences? What similarities

emerged?


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Projects for Personal Growth contd

4. With a classmate, take turns playing the role of a publishing companysales rep trying to sell a new textbook to a college professor who mightbe nicknamed Skeptical Sid. Then prepare a writtensalespresentation to sell a textbook to the instructor of your personal sellingclass. Depending on how creative or cooperative your instructor is, you

may want to ask him or her to play one of the prospect stereotypesdescribed in Table 6.2.

5. Assume that you are a sales representative for a manufacturer ofautomatic fire sprinkler systems for commercial buildings. Outline sales

presentations using each of the seven basic strategies. For eachstrategy, create and then describe the individual prospect or group ofprospects to whom youre presenting.

Case 6 1: Self Analysis of a


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Case 6.1: Self-Analysis of a

Sales Presentation

1. What should Peter say and do now? How do you think Mr.Spearman will react? Why?

2. What do you think about Peters sales presentation? What

could he have done better?

3. What advice would you give Peter for capitalizing on the

interest Mr. Spearman showed in environmental

packaging?

4. Should Peter mention the union strike at Megastar?

Case 6 2: What Makes Him


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Case 6.2: What Makes Him

So Successful?

1. What do you think Dan will tell Wanda about his sellingphilosophy and use of different sales presentationstrategies?

2. Describe in a few sentences the most important lesson youthink Wanda should have learned on her day in the fieldwith Dan.

3. What advice would you offer Wanda to help her sell moresuccessfully in her sales territory?

Case 6.2 is found online at

http://college.hmco.com/pic/andersonps2e.
http://college.hmco.com/pic/andersonps2ehttp://college.hmco.com/pic/andersonps2e

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