Approach of Sales Conversations

7/31/2019 Approach of Sales Conversations

1/12

Sales and Acquisiti on Replacement Assignm ent August 11 , 2012

Page 0 of 11

Sales and Acquisi t ionReplacement AssignmentAppr oach of Sales conversations

8/11/2012Student

M arco Engler


2/12


Page 1 of 11

1 Execut ive Sum m ary Salesm en have to b e aware o f changes, behaviour s and th eir environm ent . They need t o be

tr ustful, reliable and convincible for p ot ent ial cl ient s. Several im port ant facts l ike the

locatio n, th e dress code and t he po liteness can be imp ort ant f or a successful cont ract

format ion.

The w ay of sell ing in all segm ent s, at least, w ithin th e business to b usiness market is

comparable. The circumstances l ike the location and t he m arket- specific procedure are

slight ly differen t and r esult s in experiences and t ypical, social and cultural behaviours and

customs.

These results in differ ent approaches for every com pany but th e m ain aspects of sell ing are

similar. Com panies have to b e t rustful and can reach it w ith tr ansparency and a kindambience.

ObjectFab is mo re f lexible t han SNT in dealing w ith custo m ers wishes and needs. The

approach is th erefore slight ly different . ObjectFab is m ore int erested in t heir ow n know -how

w hile SNT is using the n am e and re feren ces. This is a result in t he com pany sizes and t heir

target group s.

SNT is interested in keeping the contacts on runn ing and ObjectFab is developing softw are

for a changing custo m er base. Therefor e, ObjectFab has m ore invest in p reparation and

cannot use a long custom er relationship to convin ce the client ..


3/12


Page 2 of 11

2 PrefaceThe aim of t he repo rt is to evaluate t he approach of a sales conversation w ith r eference of

tw o different com panies. These com panies are operat ing in different segment s and wit h a

different focus on pot ential custo m ers. Thus, th ere is a possibil i ty t o cover up a br oader

basis of b ehavio urs in sales conver sat ions.

I w orked out a quest ionnaire and asked business people t o get information about the

prep arati ons, cont ent s, result s, experien ces, psychological aspect s and cult ur al differ ences. I

received inform ation from tw o people and wr ote a report about 5 t i l l eight pages, rather

th an approxim ately 1 500 w ords. SNT sent m e a longer email w ith answer s and ObjectFabs

CEO Steff en Gemkow answ ered m y questions via a conversation.

In fact, t his report is just slightly differen t f rom th e original task. I did not observe aninterview but I asked several questio ns about experiences. The peop le w ho w ere asked w ere

Ariane Fhrer fro m SNT and Steff en Gemkow fro m ObjectFab. However, I did some research

in the internet to get more inform ationanout ot her segments that supported a clearer view

on th ings.

The report is based on t he know ledge of the last year Int ernatio nal Business M anagem ent

St udies and t he con te nt s and expe riences of t he Sales and Acquisitio n classes.

M arco Engler, Leeuw arden, 11 t h November 2011


4/12


Page 3 of 11

Table of Cont ent s

1 Execut ive Sum m ary .....................................................................................................................1

2 Preface........................................................................................................................................23 Int ro du cti on ................................................................................................................................4

4 Com m on ru les of bu siness and sales m eet ings ............................................................................5

4.1 App ro ach .............................................................................................................................5

4.2 Prepar ati on .........................................................................................................................5

4.3 Locat ion ..............................................................................................................................6

4.4 Psycho logical Aspect s ..........................................................................................................7

4.5 Presence ..............................................................................................................................7

4.6 Behavi ou r ............................................................................................................................8

4.7 Iden ti ficat ion .......................................................................................................................9

4.8 Dur at ion ..............................................................................................................................9

4.9 Con vin cing ...........................................................................................................................9

4.10 M ind -set ..............................................................................................................................9

5 Conclusion ................................................................................................................................ 10

6 Que stio nn aires .......................................................................................................................... 11


5/12


Page 4 of 11

3 IntroductionThis rep ort is abou t p sycholo gical aspects and cult ural dif feren ces as w ell as prep arat ions,

content s, results, experiences of sales m eetings. The int erview is based on som e infor m ation

of f i l led in questionnaires from business people. The questions were t hankfully answered by

M r Stef fen Gemko w from ObjectFab and Ariane Fhrer fro m SNT. ObjectFab is a Germany

soft w are solutio n prod ucer and SNT is offer ing telephone and ot her com m unication services

for business clients.

The report gives an overview about th e m ost imp ort ant facts which affects a sales m eeting

and there approaches how to deal with i t . Afterwards, the report concludes with a

conclusion.

Salesm en have t o be w ell prepared for sales m eetings. This means they have t o be able t ogive answ ers of everyt hing the pot ential custo m er w ants to know . Even if th e salesm an is

just engaged sin ce a coup le o f w ee ks, he has t o perform t he com pan y as best as p ossib le . He

or she has also be p repared f or all kinds of qu estio ns about th e pro ducts, the services, the

company it self, experiences, internal and external facts wh ich affects t he com pany and

several other th ings.

M oreover, salesm en have to appeal honest ly and t rustful t o create a bo nd w ith t he pot ent ial

custo m ers. Therefor e, there is a certain level of fr iendliness needed. Time aft er t ime, t he

relationship bet w een custo m ers and com pany can changes.

The repor t gives an overview of im por tant facts based on experiences and concludes w ith a

summary.


6/12


Page 5 of 11

4 Com m on rul es of b usiness and sales m eet ingsAccording t o t he qu estion naires th ere are som e fields which have to be considered. There

are different w ays of sell ing. These ways depends on cultural behaviours, the kind of

business relationship and t he character of t he part icipants. At f irst, we are looking fo r t he

general circumstances.

4.1 ApproachBoth com panies are dealing w ith business clients. The m ain differen ce is th at ObjectFab`s

business segment is m ore diff icult th an t he pro duct r ange of SNT. The softw are developer

know s th at t heir cl ients are not m uch involved w ith t he pro cess. This can be a benefit b ut

also result in a lack of t rust.

The know -how is in t his m arket segment thus mu ch more im port ant t han the psychologicalapproach; in cont rast to SNT; which are o ffering custom er orient ed service. The first step is

m ostly done by t he client. Both com panies see it as a benefit as the custom ers has to check

th e market and f ind a point w hich convinces him t o get in contact. In th is case, th e people

are interested in anything w hich m akes the image of a company trustful o r att ract ive.

Anot her aspect is th at th ese people know already som eth ing about t he company l ike

references.

ObjectFab is w orking in a m uch shor ter t erm w ith th e clients than SNT. ObjectFab is

developing soft w are and hand it out respectively, in som e cases, accom pany th e project f ora certain t ime.

4.2 PreparationSNT could not give me clear answ er how m any people are invo lved. ObjectFab uses for t he

first sales conversation on e chief developer to get a closer view o f w hat t he custo m er w ants

and needs. There is also a p roject m anager and a secretarial t hat m akes not es. They are

creating a funct ional specification docum ent s w hich includes th e most im port ant point s of

th e project, the t imeline and a forecast o f w orking hour s. W hich docum ents is used as a

binding cont ract and has to be signed.


7/12


Page 6 of 11

4.3 LocationI recognized that t here are a couple of com panies w hich w ants to perfo rm sales

conversations at t heir ow n place. People to ld m e th at t here is a big advantage if the

conversations taking place at t he ow n com pany. In t his case, the businesses are able to

convince the com pany in bot h, the range of prod ucts and services and the w orkingcircumst ances as w ell.

The pot ent ial custo m ers have to f eel comf ort able and can be p ossibly surpr ised if he o r she

sees th e ambience, the first ow n percept ions and especially the w orking condit ions.

A com pany w hich receipt s a pot ent ial custom er takes charge for them and can be convincing

th rough a good service.

A lot o f com panies are trying to convince their partners wit h a corporate im age, the

amb ience and t he p resence. This procedure is not depend ing on several businesses orm arket segment s. Especially sm aller com panies have problem s wit h t he capacity.

On the ot her hand , som e comp anies respectively salesm en feeling uncom fort able by taking

charge of bigger com panies representat ives.

I have applied at SNT a few years before I have com e to Sten den. All applicants w ere

concent rated in the huge cant een. In this way, SNT could en sure t hat t he visito rs gett ing in

contact w ith w orkers and paying money f or lunch. This seem ed quit e conf ident , because

they w ere not concerned that w e could badly inf luenced..

In cont rast t o SNT, w hich prefer t o take t he ow n location; ObjectFab can be m ore flexible

and arrange and deal w ith last- minu te changes and w ishes of t he custo m er.


8/12


Page 7 of 11

4.4 Psycho logical A spect sI w orked in a comp any w hich w as sell ing all kinds of softw are. There w ere small business

clients l ike Universit ies which w ere inter ested in m ath calculating or graph draw ing soft w are

and also b igger one w hich needed m uch m ore com plex softw are.

The problem in this market segment is that the po tent ial clients need to understand w hat i t

is w ort h. The soft w are was developed and w ritt en on a disc but th e clients cannot

understand w hy t hey have to pay 10,000 or 20,000 for a silver disc.

Therefor e, such companies put a lot of eff ort in m arketing. They are produ cing a big

colourful box fo r t he DVD, th ere is a brochure in it or small business presents as w ell. People

feel better i f t hey can see and t ouch i t . The costs for t he box and t he brochure or t he

business gifts are not higher th an 60 but th e client s are m uch m ore satisfied.

This w ay of pr esenting is a kind of a benefit .

This leads to t he fact and also a quot ation of o ne of m y form er docents that salesm en have

m uch mo re to d eal wit h desires th an needs. Sales conversations are not related t o

rationality bu t t o desires and w ishes.

The com panies are also using female att ractiveness even if th ey try t o highlight t hat it has

nothing to do w ith a perf idy w ay of convincing.

SNT was not speaking about costs but for ObjectFab costs are an im port ant f act and are

discussed qu iet ly direct in sales conversatio ns.

The transparency is quiet im port ant f or a com pany. The biggest plus is th at t he pot ent ial

clients know w ho t hey are, part icularly if they do t he first step. The m inus is th at

competi tors can also gain im portant informations.

4.5 PresenceThe salesm en have t o pr esent th e comp any and also t heir im age. The vocabulary, the dress

code and t he behaviour are the m ost im port ant t hings.

A sales conversation is m eeting of t w o or m ore eq ual parties. Therefo re, it is necessary th atevery party is not in inferior p osit ion or segregated. The segregation could t ake place wit h

different iation in dr ess codes, vocabulary or the b ehaviour, instance of unkno w n cultur al

custo m s or polit eness.

People are very different and needs a cert ain level of awareness and int erpret ation skil l

during a conversation. Salesm en have to be aw are of changes in the behaviour of th e

conversat ion part m ust get proact ive i f the people gett ing borrow ed or annoyed.

To present th e com pany the re are no using com m on doct rines or guidelines of certain

expert s like Edw ard Bernays.


9/12


Page 8 of 11

4.6 BehaviourThe behaviour is slightly t he same like t he p resence. During my research, I have fo und outthat people would recomm end copying the b ehaviour of the ot her conversat ion party. This

seems trustful ly and p ol i tely for t he ot her company. Instance of be aw are i f the partners

take a cup in his or her hands do it as w ell. This cont radicts the m ent ioned fact t hat every

party has to be equally but especially for new com ers is it a good hint .

The salesm en have t o be aw are of th e part ners positioning. He or she has to recognize

w hether t he people to w hom I am negotiat ing and sell ing are an offensive or a defensive

person is. The salesm en have t o decide w hich kind of strat egy is needed.

The comp anies are not conf ront ed w ith strengt hs or benefit s of com pet ito rs, especially

because the po ten tial cl ient s do t he first step.


10/12


Page 9 of 11

4.7 Identif icationDuring our comm unicat ion plan, we recognized th at t he em ployees percept ion is much

w orse than th e perception o f th e custom ers. W e can take it as a general view or a special

prob lem of ING but nevert heless. The emp loyees are more f ocused on t he inter nal

environm ent of a comp any. They are the first peop le wh ich recognizing if anything is goingw rong. The custo m ers and pot ent ial partn ers gett ing only an external picture of t he

company`s im age. Therefore , it is the task for every salesm an or w om an to h ide or ignore

problems w ithin t he w orking place and d el iver the mo st posit ive com pany image. People

w ant com panies w hich are going str aight ah ead in one direction. The identif ication level

m ust be very high for salesm en.

4.8 DurationCom panies can get in cont act w ith p ot ential clients in tw o w ays. Either t hey are proactive or

th e custo m er t akes th e first steps. Instance of SNT, th e first step com es from th e client s.

Therefor e th ere is a benefit f or SNT. The client s looked f or good comp anies and cont act one

or m ore t han one t o get an offer. This means they are slight ly convinced from the company.

The durat ion of start ing a part nership is differ ent. SNT to ld me t hat t here are around t hree

or fo ur m eetings or arrangement s to sign up t he cont ract in Germany. SNT is also able to

offer standard of fers for sm aller cl ient s. The durat ion bet w een getting in cont ract and

singing up a cont ract are differen t. It can be expected t hat t he average durat ion exceeds

m ore or less one m onth.

4.9 ConvincingThe comp anies tr y to convince the po tent ial custo m ers w ith a program o f taking charge and

under lines form er p rojects w ith norm al visualisations l ike Pow erPoint . ObjectFab is also

using chosen pro ject and applications to m ake the softw are mo re reliable and visible.

4.10 M ind-setEvery side w ants to get th e best cond itions for t hem selves. The m ain problem is th ere is, in

particularly in th e private secto r, a huge lack tr ust.

The t ask of salesm en is to sell everything. The p ro blem is that m ostly salesm en are n ot

interested in t he desires or needs of t heir cl ients. The m ain task is to sell anything for t he

best conditions to th e custo m ers. The m ind- set seems not fair because people are not ab le

to under stand and know all facts of th e basics of ot her t opics l ike insurances or legal

regulations. The m odels, especially the AIDA mod el are based on em ot ions to catch inter est

and attent ion. In m y m ind, I would prefer t o be credible, honest ly, rat ional and object ive. I

assum e custo m er are able t o recognize it and are m uch for convinced. In part icularly

because there com es no t ime a rude awakening.


11/12


Page 10 of 11

5 ConclusionSalesm en have to b e aware o f changes, behaviour s and th eir environm ent . They need t o be

tr ustful and convincible for pot ent ial cl ient s. Several imp ort ant facts l ike the location, t he

dress code and t he polit eness can be im port ant f or a successful cont ract form ation.

The w ay of sell ing in all segm ent s, at least, w ithin th e business to b usiness market is

comparable. The circumstances l ike the location and t he m arket- specific procedure are

slight ly differen t and r esult s in experiences and t ypical, social and cultural behaviours and

customs.

This result in diff erent appro aches for every comp any but th e m ain aspects of sell ing is

similar. Com panies have to b e t rustful and can reach it w ith tr ansparency and a kind

ambience.

Furt herm ore, a salesm an has to be able to deal w ith all kinds of custo m ers and is a

reprehensive of a com pany. The company`s image is more import ant t han t he ow n m ind- set

and percept ion. A comm on p roblem o f sell ing is the fact that a lot o f salesm en are bonded

on f inal prof i ts and not on t he needs of custom ers.

So, they have t o sell everything even if t he custo m er needs a smaller volum e of a pr odu ct.


12/12


Page 11 of 11

6 QuestionnairesApproach:

What is m ore import ant? Phycology or know how ? Who are m ore impo rtant? Current or pot ent ial custom ers? Do you prefer a neutral locat ion or ow n hou se or t he custom er locat ion? W ho do es th e first step yo ur client or yo u? Is it a benefit ? ObjectFab: How m any client s do yo u have simu ltaneously? On w hich kind of custo m ers are you focused?

Preparation

How m any people are invo lved in your sales conversations?

Do you t ry to use female att ractiveness to convince clients? How do yo u p repare for sales conversations?

Psychology

Which type of benef i ts do you use? Which kind of corporate ident i ty do you use? W hen do you speak about th e costs?

Behaviours

Are you confront ed w ith th e strengths of you com peti tors? Do you use any guidelines how to comm unicate yourself? Do you n ot ice disagreeableness or claims if th e com pany contacts you some years

later?

How do you deal with di f ferent behaviours of custom ers?Convincing

W hich kind o f visualisation t o highlight prof itabil i ty do you u se? How m uch t ime do you need to convince custom ers? What do you t hink? How m uch transparency can you afford? How m uch tim e do you need fo r a sales conversation ?

Approach of Sales Conversations

Documents

Transcript of Approach of Sales Conversations