Chapter 12: Creating value with sales demonstration

Question 1

1. List and describe 3 types of need-satisfaction presentation strategy.

Answer 1

1. Informative Presentation Strategy: Emphasizes factual information, which is often taken from technical reports, company-prepared sales literature, or written testimonials from people who have used the product.
   It is commonly used to introduce new products, highly complex products, and services of a technical nature.
2. Persuasive Presentation Strategy: Strategy that influences the prospect’s beliefs, attitudes, or behaviour and encourages action.
   Persuasive sales presentations include a transition stage where dialogue shifts from an intellectual emphasis to an emotional appeal. In personal selling persuasion is an acceptable strategy once a need has been identified and a suitable product has been selected. The persuasive strategy when handled poorly will trigger fear or distrust.
   ->Persuasion: Communication process by which you motivate someone else to voluntarily do something you’d like them to.
3. Reminder Presentation Strategy (Reinforced Presentation): This strategy assumes that the prospect has already been involved in an informative or persuasive presentation and understands at least the basic product features and buyer benefits.
   This presentation is sometimes a dimension of service after the sale. Some customers get used to quality and service and begin to view the product as a commodity and begin to ask for a price reduction. To keep customers focused on value rather than price remind them of the value-added services.

Question 2

2. Present guidelines for creating consultative presentations that add value.

Answer 2

*Canned Presentation (Memorized or Scripted Presentation): is built around a standard set of steps, ignores the unique needs of each customer, and is presented in the form of a repetitive speech given to all customers interested in a particular item.

*Guidelines for creating a presentation that adds value:
1. Adapt the presentation to meet the unique needs of the customer.
2. Cover one idea at the time and use an appropriate amount of detail.
->There are at least 2 types of presentations that are doomed to failure: 1. A presentation that is too basic and leaves the prospect with the feeling of being “patronized” (it is important to avoid “talking down” to a customer. 2. A presentation that provides a prospect with too much detail, it is overly technical and leaves buyer confused and frustrated.
Make sure terms and ideas are familiar to customers.
3. Use proof devices to demonstrate buyer benefits.
A well-planned/well-executed sales demonstration is one of the most convincing forms of proof.
*Proof device: A device such as a statement, report, testimonial, customer data, or photograph that is used to enhance the salesperson’s credibility during a sales presentation.
4. Appeal to as many senses as appropriate.
Each of the five senses (sight, hearing, smell, touch, and taste) represents an avenue by which the salesperson can attract the prospect’s attention and build desire. Appeals add value, when more than one sense is involved, the sales presentation is more informative and persuasive.
5. Balance telling, showing, and involvement.
Some of the most effective sales demonstrations combine selling, showing, and involvement. When appropriate and possible, try to involve the customer in a sales presentation.
6. Develop creative presentations.
Creativity is needed to adapt a sales presentation that can gain attention, increase desire, and add value.
7. Consider the use of humour in moderation.
Moderate amount of humour can break barriers, build rapport, and foster long-term and mutually beneficial customer relationships.
8. Choose the right setting.
The location of the sales demonstration can make a difference, a controlled environment will provide no noise and other interruptions (such as hotels, motels and conference centres).
9. Document and value proposition.
Salespeople must be prepared to substantiate the points presented during the sales presentation. Failure to demonstrate and document claims of savings and benefits to the customer is a common barrier to closing the sale.
The most effective value proposition in one that focuses on favourable points of difference between your product and the next best alternative (competition).
10. Quantifying the solution.
If the cost of the proposal is offset by added value, closing the sale will be much easier.
*Cost-Benefit Analysis: Analysis of the costs versus the benefits to the customer as a result of making a particular purchase.
*Return on Investment (ROI): The net profits or savings that the customer will see from investing in a particular purchase.
11. Check Sales Tools.
Be sure to check every item to be used in conjunction with the sales demonstration (carry an extension cord, an extra bulb, extra laptop batteries, external hard drive, etc.)
12. Summarize Major Points.
The customer is bombarded with about 1900 words in 15 minutes, the salesperson should occasionally use a summary-confirmation question to summarize and confirm major points. The customer needs this form of value-added assistance.

Question 3

3. Describe the elements of a persuasive presentation strategy.

Answer 3

Guidelines for a persuasive presentation strategy that adds value:
1. Place special emphasis on the relationship.
Relationships are enhanced by the salesperson’s ability to communicate in compelling and creative ways. Good rapport between the salesperson and the prospect establishes a foundation for an open exchange of information. Establish a bond with the prospect early by uncovering areas of common interests, using praise when it’s appropriate, being trustworthy, accommodate your communication style to the needs of the customer, and use smart-social media strategies.
2. Target emotional links and use a persuasive vocabulary.
*Emotional links: connectors that link a salesperson’s message to the customer’s emotions and increase the chance of closing a sale (quality improvement, on-time delivery, service, innovation).
When targeting emotional links use persuasive words.
3. Sell specific benefits and obtain customer reactions.
People do not buy things; they buy what the things will do for them. After stating the feature and converting into a buyer benefit, obtain a reaction from the customer by using confirmation or need-satisfaction questions. Involving the customer with appropriate questions helps you maintain 2-way communication.
Also known as the Feature-Benefit-Approach (FBR)
4. Use of showmanship.
*Showmanship: An interesting and attractive way of communicating an idea to others.
Appropriate use of showmanship can improve persuasiveness and effectiveness of a presentation.
Showmanship is the act of presenting product features and benefits in a manner that will gain attention and increase desire, effective showmanship is never based on deceit or trickery, it should not be gaudy or insincere. When showmanship detracts from the image, the product, or the salesperson, it is counterproductive.
5. Minimize the negative impact of change.
Customers resist change. Sales people should try to help the prospect view change in a positive and realistic way. Change is more acceptable for people who understands the benefits of it and not see it as a threat.
6. Place the strongest appeal at the beginning or end.
Appeals made at the beginning or end of a presentation are more effective than those given in the middle. Doing it at the beginning gets the prospect’s attention/interest. Doing it at the end sets the stage for closing the sale.
7. Use the power of association with metaphors, stories, and testimonials.
Salespeople who use the power of association through sharing information they previously experienced with other clients help their customers better understand their own needs and make smarter buying choices.

Question 4

4. Describe the elements of an effective group presentation.

Answer 4

Rule 1: Identify the titles and roles of the people who will attend. Anticipate that the audience will include demanding, high-level decision makers who will likely as difficult questions.
Rule 2: Check out the meeting room in advance (room configuration, audiovisual capabilities, seating, lighting, heating/ac). Arrive at the room 60 mins before presentation, use first 40 mins to double check presentation tools, seating arrangements, lighting, etc. Use left time to build rapport with attendees.
Rule 3: Be sure your presentation is characterized by clarity and simplicity (minimize number of features you present). Focus on benefits that appeal to the prospect. Don’t use jargon, make sure each team member understands their responsibility.
Rule 4. Anticipate diversity of questions such as finance, delivery, competition, and service, traditional product issues. Be prepared with answers that are concise and persuasive.

Guidelines for a group sales presentation:
1. Enhancing the group presentation with mental imagery.
*Mental Imagery: Ability to visualize an object, concept, or action not actually present.
2. Audiovisual presentation fundamentals.
Audiovisual aids as videotapes of computer-based presentations. Suggestions on how to use audiovisuals: do not rely heavily on AV aids (its only support) to sell, Make sure prospect knows purpose of the presentation, Be prepared to stop presentation to answer questions, At conclusion of presentation review key points and answer questions.

Question 5

5. Develop selling tools that add value to your demonstration.

Answer 5

1. Product and plant tours.
   Plant tours provide an excellent source of product information.
2. Models.
   If the product is too big is easier to demonstrate a small scale/cross-section of the actual product to give the prospect a clear picture of how it operates.
3. Photos, illustrations, and brochures.
   These 3 methods provide a great deal of information to the prospect. Brochures can be effective during the initial discussion of needs when the salesperson wants to provide a brief overview of possible solutions.
4. Portfolios.
   *Portfolio: Portable case or loose-leaf binder containing a wide variety of sales-supporting materials. It is used to add visual life to the sales message and to prove claims.
5. Reprints.
   Featured articles that directly or indirectly support the salesperson’s product. Prospects are far more impressed with the good points of the product if a third party presents them.
6. Catalogues.
   A catalogue shows the range and comprehensiveness of the product line. May include specifications and price of the product, before giving catalogues review important features (index and appendix material).
7. Graphs, charts, and test results.
   Graphs are descriptive, interpret the graph for the prospect, do not move to quickly.
8. Bound paper presentations.
   Bound paper presentations are still popular for sales/marketing organizations.
9. Laptop computer and demonstration software.
   Personal computers with the support of online presentation technologies and presentation software, have played an important role in the increasing sales force productivity.
10. Rehearse the presentation.
    Rehearse both what you are going to say and what you are going to do. Say the words aloud exactly as if the prospect were present. Rehearsal is the best way to avoid an embarrassing situation.
11. Plan for the dynamic nature of selling.
    During a typical presentation, the salesperson asks questions, discusses features, and demonstrate the appropriate product benefits. Because of the dynamic nature of the sales presentation, the salesperson must be prepared to apply several different selling skills to meet the variety of buyer responses.