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ENGR 134 / 234Selling High Tech Products
Social Obligations &Reciprocity
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4/2/2012 ENGR191 1 - Introduction 2
Todays Roadmap
Yes Readings
Guerrilla Selling Making Enchantment Endure
InfoChachkie Readings
Guest Speaker tonight: Rich Block, CEO SB Zoo Buchanan 1930 5:00
Quiz scores posted to Central Desktop
https://ucsb.centraldesktop.com/engr134/Click Files and Discussions
ENGR134 is user name and password
Email [email protected] if you have access issues
https://ucsb.centraldesktop.com/engr134/mailto:[email protected]:[email protected]://ucsb.centraldesktop.com/engr134/8/2/2019 191 Week 4 Lecture 4 TD 1-12
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ENGR185B/285B Week 2 Lecture 1 3
Job Opportunity
Sales Engineer (the presales, technical type that supports our sales
effort) Support Engineer (entry level tech support type with good technical
skills)
Inside Sales Representative (handles inbound leads, follows salesprocess, good communication skills necessary)
Downtown Santa Barbara location
Desirable skills include: Windows, Mac, Linux, Internet,
Salesforce.com, Technical interest/skills a plusSalary plus performance based compensation
Contact: Chuck Massanari [email protected] aregraduating this Spring
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Internship Opportunity - BioIQ
Roles and Responsibilities Include, but are Not Limited to:
Research, analyze, and provide reports on the healthcare channels and opportunities Communicate with clients and users (in person, phone, and email)
Support relationships with current clients and prospects Assist with ongoing operational tasks Assist in product development and usability studies Take initiative to pursue new projects as they arise
BioIQ is an exciting young healthcare IT company located in downtown Santa Barbara. We arecurrently looking for an individual to play a key role in the growth of the company and makemajor contributions as a member of the BioIQ team.
Start Date: March 2012
Hours: 15-20 hrs/week
Compensation: This is a paid intern position. We understand your time is valuable.
Deadline: Please submit resumes by Monday February 6 th to Jorge Solis [email protected] the subject Internship 2012 and your name.
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Copyright 2012 - Proprietary and Confidentialwww.ringrevenue.com
RingRevenue Current Open Jobs:
Software Engineer
Support / QA Software Engineer
Software Engineer Intern
Administrative & Accounting Intern
Were always hiring great people!To learn more about joining our team
visit: http://www.ringrevenue.com/corporate/about/jobs
http://www.ringrevenue.com/corporate/about/jobshttp://www.ringrevenue.com/corporate/about/jobs8/2/2019 191 Week 4 Lecture 4 TD 1-12
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ENGR 134 / 234
Quiz #3
No quiz if you are late
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ENGR185B/285B 6 Sales and Marketing
Entrepreneurial Challenge: Moores Crossing the Chasm
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Where Do They Fall?
Elise Arthurs
John I Larry l The Smiths
STP = Segment, Target, Position
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Mohr, Sengupta, Slater 2005 9
Market Development Model
EarlyMarket
Chasm Bowling Alley
Establish a niche beachhead
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Note: I share in all the credit and blame I was part of the team
First generation product: NASA robotic arm revised to hold laparoscope
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Note: I share in all the credit and blame I was part of the team
First Generation
NASA robotic arm revised to hold laparoscope
Task previously done by a skilled surgical nurse / tech
Innovators loved the idea of a robot in the OR
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Second Generation
Foot pedal replaced with voice recognition Voice-controlled robot in OR is very sexy
More buzz and a few Early Adopter sales
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Second Generation
Foot pedal replaced with voice recognition Voice-controlled robot in OR is very sexy
More buzz and a few Early Adopter sales
Took focus away from Pragmatists:
MOST surgeons were happy with a human holding the laparoscope Nurses HATED the robot; used the hand-controller
Most robots were used by one Surgeon per hospital collected a lot of dust
The baby was ugly
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Third Generation
Brilliant case of doing the best with what wehad
Three robotic arms and bicycle brakes
Focused on wrong early adopters MIS cardiac robotic
Life and death, high-profile procedures
FDA said No way so we took off for Europe
Some early adopter sales but difficult to repeat
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Third Generation
Interface was difficult to usenot Intuitive Forced to work within the constraints of NASA robot
A few Early Adopter surgeons mastered theinterface
Most would not invest the required time
DOS vs. Windows
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ENGR185B/285B 6 Sales and Marketing
Computer Motion Falling Into the Chasm
Lessons Learned
Pulled out a victory - $148M exit
Intellectual Property saved the stakeholders equity
Intuitive Surgical focused on Pragmatic, high-volume procedures
Fast FDA clearance, broad market acceptance
Honestly assess degree you are locked-intoan inferior technology
See your value proposition through the eyesof Pragmatists
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ENGR185B/285B 6 Sales and Marketing
Entrepreneurial Challenge: Moores Crossing the Chasm
Computer Motions
Customers
Intuitive Surgicals
Customers
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ENGR185B/285B 6 Sales and Marketing
Guerilla Selling
Gs are principled salespeople
Plan carefully Systematic
Courteous, direct, businesslike
Must be comfortable with lower status JG: keeping his ego in check
Care about prospects businessand personal lives
Assume prospects are experts, rely on them for advice
Determine: Need, Budget and Commitment level
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ENGR185B/285B 6 Sales and Marketing
Guerilla Selling
Selling Stages
NaB and CaPTuRe Need
Must do up-front
If not match, ask for referrals and head out of Dodge Budget
Commitment
Objections are buying signs
Feel, felt, found
Invert the objection, Your windows are hard to open and close
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ENGR185B/285B 6 Sales and Marketing
Guerilla Selling
NaB and CaPTuRe
Presentation Do I ask questions that show I care?
Do I really listen to the answers?
Do I give my prospect control over sales meetings?
Do I act professionally? Do I relate to my prospect on their terms?
Transaction Let customer close you; difficult to pull off
Reward Let customers hit the jackpot
Reward customers with something extra - recency
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ENGR185B/285B 6 Sales and Marketing
Guerilla Selling
Nine Word Credo
1. CommitmentGs are deadly serious2. InvestmentGs invest time, energy and money
3. Consistent Poor selling done consistently beats great
selling done sporadically4. ConfidentGs know they are selling quality
5. Patient Needs eventually arise
Oracle
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ENGR185B/285B 6 Sales and Marketing
Guerilla Selling
Nine Word Credo
7. Assortment Offer variety8. Subsequent 60% of time
focused on existing customers
9. ConvenientGs make themselves buyer friendly Take care of all paperwork do all the heavy lifting
10. ExcitementGs areenthusiastic; militantly optimistic
Doing something differently w/ less
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4/2/2012 ENGR191 1 23
Is fast talking effective persuasiontechnique?
Depends on the audience
Counter-attitudinal fast talk moreeffective; less time to dispute
If people agree with you slow down
Bottom line should you cuss quickly withdisagreeable people?
Cussing Quickly
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Science of Persuasion
Weapons of Influence
Instant understanding = sustained survival
Tribal shortcuts that bind societies together
Judgmental Heuristics: expensive = quality
popular = good
expert = valued opinion
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25
Science of Persuasion
Weapons of Influence
Not Machiavellian
Inoculation from manipulation
Insights into selling process Who was William Thompson?
"Have you confidence in me to
trust me with your watch until
tomorrow?"
Understood the power of reciprocity
Christmas cards from strangers
Much obliged = Thank youThe Original Con Man
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4/2/2012 Source: Kevin Bebak, student 26
Combining Persuasion Techniques
Why were so many smart people duped by Madoff?
The combination for four techniques:
ScarcityThe fund is closedbut maybe we can get you in
Authority Former Chairmen of NASDAQ
Social Proof Lots of other smart people were doing it
LikingBernie was likeable, he was liked his clients
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27
Yes! Creating Social Obligations - Reciprocity
Reciprocity Quid pro quo = sustained survival
Starbucks - pay it forward 490 customers in a row
Many paid more than next persons tab
Pool of money collected and donated to charity
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28
Yes! Creating Social Obligations - Reciprocity
Reciprocity Our gift to you
Return address labels 35% vs. 18%
Flowers you dont want Reciprocity overwhelms Liking
Applicability to selling? 1st give something OF WORTH
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4/2/2012 ENGR191 1 29
Object Lesson Social Obligation
Did creating a social obligation work?
What happened?
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4/2/2012 ENGR191 1 30
Yes! Creating Social Obligations - Reciprocity
Remind recipients of the gifts value
Receive a $250 security program at no cost to you
Raffle tickets + unsolicited gift of a coke: % increase?
100% - twice as many tickets purchased
Why are handwritten notes effective? Are Post-It notes effective?
Cover letter and survey = 36% completion
Cover letter, survey & handwritten message = 48% completion
Cover letter, survey & handwritten Post-It note = 75% completion
Even blank Post-It Note = 69% completion
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4/2/2012 ENGR191 1 31
Yes! Creating Social Obligations - Reciprocity
What are the characteristics ofeffective gifts?
Significant, unexpected & personalized
One mint = 3.3% tip increase
Two mints = 14.1% tip increase
One mintwait for itsecond mint = 23% tip increase
What is the Rejection and Retreat method of influence?
Boy Scout - $10 circus ticket followed by
$5 candy bar One concession deserves another & Perceptual
Contrasts
Heads I win, tails you lose
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4/2/2012 ENGR191 1 32
Yes! Creating Social Obligations - Reciprocity
Reciprocity vs. incentives hotel towels
Well donate $ ifyou reuse = 0% increase in compliance Cite donation first, then ask for cooperation - 45% higher reuse
First offer unconditional help, then appeal to reciprocity
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4/2/2012 ENGR191 1 33
Yes! Creating Social Obligations - Reciprocity
Both bread to recipient, wine togiver
Recipient values favormore than
giver, immediately after receipt
Recipient values favorless, over
time
Giver values favormore over time
Restate value of prior favor
How is your job (that I helped
you get) going?
Are favors like Bread or Wine?
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4/2/2012 ENGR191 1 34
Enchantment: Making It Endure
Recreational Equipment Cooperative (REI)
3.5M active members
> 100 stores
Travel services
Customers internalizedREIs values
What is the story with the ice axe?
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4/2/2012 ENGR191 1 35
Stages of Internalization
Conformity Not enchantment
Wont last without force, unless
Identification
Common, shared interests
Seek Enchanters approval
Internalization
Enchantment Beliefs = feelings
Anyone? Bueller? Bueller? Bueller?
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4/2/2012 ENGR191 1 - Introduction 36
Making Enchantment Endure
Goal of enchantment is a long-lasting change
Separate believers to avoid pluralistic ignorance
Set up satellite office mile from headquarters
Catalyze Commitment Tell others about a persons commitment
Invoke reciprocity
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4/2/2012 ENGR191 1 37
Reciprocity Helps Enchantment Endure
Give:
With joy
Early
Often & generously Unexpectedly
Ask for reciprocation
I know youd do the same for me
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4/2/2012 ENGR191 1 38
Community / Ecosystem Participants
Entice people to share in your success
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4/2/2012 ENGR191 1 39
Diverse Teams
Various points of view keep cause fresh and relevant
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4/2/2012 ENGR191 1 40
Promote Spreadability
What does this mean?
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AssignmentsNext Class Required Reading
Enchantment
Chapter 8: How To Use Push Technology p. 112
Yes!
Chapters 14 through 19, 49, Appendix p. 225 227
PsyBlog Email of Face-to-Face Communications?
infoChachkie Reader
Next Class Object Lesson Labeling Technique or Inconvenience a Rival you choose
Next Class Recommended Reading
Maximize Your Exit & Headlines Are Written By The Hopeless
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