Exam 1 Flashcards
What did Jim Koch say regarding his selling of Samuel Adams Beer? What is the crucial feedback loop?
What he needed was a customer.
Crucial Feedback Loop: If you really understand customer needs and solve for them, you will be successful.
How Sales professionals demonstrate value to customers:
by providing productive information
by helping identify and solve problems
Textbook definition of Personal Selling
the process of seeking out people who have a particular need, assisting them to recognize and define that need, demonstrating to them how a particular service or product fills that need, and persuading them to make a decision to use that service or product.
4 Types of Sales Jobs and examples:
Trade Selling: Increase business through merchandising and promotions. (Lindsey House from Mars Chocolate.)
Missionary Selling: Educating buyers who decide what product the consumer will use. (Pharmaceutical Sales, Medicine, etc).
Technical Selling: Specialist with technical expertise selling to firms who use their products. (Electronic sales, Phone sales, etc).
New Business Selling: Seeks out and persuades new customers to buy for the very first time. (Realtors, Houses).
What does it take to be good at Sales? (9)
Enthusiasm
Empathy
Goal Directed
Ability to ask questions
Resourcefulness
Administrative ability
Initiative
Perseverance
Pleasant personality
What we did NOT list for characteristics. (What is NOT good)
Aggressive/assertive
Extrovert
Winning at any cost
Physical size
Fast talker
What are some downside issues in a Sales Career?
Rejection! (THIS IS THE BIGGEST DOWNSIDE).
Irregular hours and travel
Variable income in commission-based sales
Dealing with people who are, to say the least, challenging
Relationship Builders:
1: Treat customers like lifelong partners.
2: Become a solutions provider.
3: Deliver more service than you promise.
4: Schedule regular service calls.
5: Open and honest communication.
6: Use the “we can” approach.
7: Take responsibility for mistakes.
8: Be an ally for the customer’s business.
Relationship Breakers:
1: Focus only on making the sale.
2: Wait for problems to develop.
3: Over-promise and under-deliver.
4: Wait for customers to call you.
5: Lie or make exaggerated claims.
6: Use the “us vs. them” approach.
7: Blame others, knock competitors.
8: Focus on your personal gain
A true sales professional will succeed if they can handle _____, harness ______, and _____ to customer evolving needs, in order to ______ get what they want.
Change, Technology, respond, help people.
Relationship Selling Model vs Traditional Sales Model.
Relationship:
40% Build Trust
30% Question / Listen
20% Sell Benefits.
10% Reassure Close.
Traditional:
10% Telling.
20% Qualification
30% Present Feature.
40% Close Long and hard.
Qualifed Prospects must have:
Some Pre-Approach Activites include:
Needs, Money, Authority.
Action plans and social media research on prospect.
As a class, what did we agree that was the most important tip for a new salesperson?
1: BE PREPARED
The Fraud Tree:
Corruption:
Asset Misappropriation:
Financial Statement Fraud:
Ethics in Modern Society:
Individual people are unethical, not organizations.
Business Ethics is an aspect of societal ethics.
Ethics in selling is NOT a contradiction.
Inside the Fraud Triangle:
Pressure: Employees faces personal financial problems.
Opportunity: Employee recognizes that pressure can be relieved by theft, and it can be hidden from exposure.
Rationalization: Employee finds justification for the misconduct in order to maintain a personal sense of self-worth.
Deontological:
A system that relies on the use of expressly stated rules, such as the 10 commandments or the Golden Rule.
Teleological:
a system that defines right and wrong only in terms of outcome (aka the greatest good for the greatest number).
As a salesperson (or in any function actually), you need to know where the company stands on ethics, and whether its stand is ______.
And the time to do this is _____ you’re hired, not after!
consistent with your own, before
Global Rule of Thumb:
Salespeople should follow the laws of their country and the rules of their company
Influences on a Salesperson’s Ethics:
Company Code of Ethics: Government action and fear of retribution have convinced more companies to adopt a code
The Bottom Line: Survival and Profit
Group Think: Peer Pressure
Gamesmanship: Winning only for the sake of winning.
Unethical behavior can occur in sales when people forget the real purpose of professional selling:
to satisfy the needs of others
Consumer behavior is:
the set of actions that make up an individual’s consideration, purchase, and use of products and services.
5 Stages of the Purchase Decision Process:
Problem Recognition (Motive Arousal).
Searching for Alternatives: (External and Internal)
Evaluation of Alternatives:
Purchase Decision
Post-Purchase Evaluation.
How do Organizational Buyers buy?
Decision Maker – usually a buying center
Buying Criteria – more complex
Length Of Relationship – desire to stay with suppliers longer
Buying Motives - rational, economic, and/or emotional
The Buying Center
An ad hoc, cross-departmental, decision-making unit consisting of all individuals who play a role in formulating a purchasing decision
5 Roles Played by Members of a Buying Center
Users: Individuals who will use the product or service.
Buyers: Have formal authority to make a purchase.
Influencers: Provide information to members of the buying center.
Deciders: Have power and authority to choose suppliers.
Gatekeepers: Influence and control the flow of information needed to make a decision.
Watch for these signs that the buyer is either not understanding or not accepting the message:
Tugging the ear suggests the desire to interrupt
Pinching the nose and closing the eyes says that a matter is being given serious thought
Tightly clasped hands or fists indicate tenseness
Steepling of the hands indicates smugness, self-confidence, or feelings of superiority
Problem Recognition:
In relationship selling, sometimes hinges on the seller’s ability to uncover a need
May occur when the buyer re-evaluates the current situation and perceives a void or dissatisfaction
Purchase Decision:
Chooses a supplier/vendor
Can be made easier by a salesperson
Involves a set of related criteria:
Tangible features of the product
Financial considerations: price, discounts, credit policies
Intangible factors: reputation, past performance, or delivery dates
Post-Purchase Evaluation. Define Cognitive Dissonance.
Cognitive Dissonance is….Post Purchase Anxiety!
The level of anxiety depends on the importance of the
decision and the attractiveness of rejected alternatives
How can a seller reduce cognitive Dissonance?
Reinforcing the buyer’s belief that the right decision was made
Demonstrating the capabilities and quality of the product or service
CPG Example – reducing cognitive dissonance
Providing examples of past performance.
Tracking and communicating results.
Characteristics of organizational buyers:
Fewer in numbers
Larger dollar volume purchases
Less freedom of decision
Define Deconding:
Decoding is the mental process by which the buyer figures out the meaning of a message
How they translate the symbols used in your presentation into something that relates to their needs
Psychological Influences on the Purchase Decision Process
Perception: What buyers perceive as important to them may not be what you believe.
Current Mood: The buyer’s mood at the moment, can influence buying.
Attitudes: Buyers can often display an attitude of what worked/didn’t work in the past.
Self-Image: Self explanatory.
Proxemics:
The physical distance individuals prefer to maintain between themselves and others.
*Successful salespeople move closer to a client when closing
The four styles:
Driver, Expressive, Amiable, Analytical.
Magnus Geiger Bonus Question – Who is his buddy?
Kosta the English Spaniel
Personal Selling
process of seeking out people who have a particular need, assisting them to recognize and define that need, demonstrating to them how a particular service or product fills that need, and persuading them to make a decision to use that service or product.
partnership selling
understand your customer’s unique needs and indentifying solutions to mutually grow the business
Sean from our class video worked for which company?
Nestle~ Purina.
primary reason for encoding
1: Influence the attitude/behavior of buyer
2: Move buyer through mental shift
3: Reach shared understanding
Craig’s personality is?
Driver and Expressive
Relationship selling cycle:
- Phase one:
-Identifying a qualified prospective.
-Planning preapproach activities. - Phase two
-Approaching the prospect
-Discovering needs.
-Making the presentation.
-Handling objections and gaining commitment. - Phase three
-Close sale.
-Follow ups.
True/False.
You have to be extroverted to be a sales rep.
False
Pace: the speed at which a person prefers to move
Low in assertiveness (analytical and amiable) prefer a _______
High in assertiveness (drivers and expressive) prefer a ______
1: Slower Pace.
2: Faster Pace.
Priorities: what a person considers important
Low in responsiveness (drivers and analytical) put _____ at the top.
High in responsiveness (expressive and amiable) put _____ at the top.
1: Priorities
2: Relationships
Assertiveness: The _____
effort a person makes to influence or control thoughts and actions of others.
Responsiveness:
The willingness with which a person outwardly shares feelings
The 4 styles:
Driver: Based on the sensing function and results-driven reactions.
EXPRESSIVE: Based on the intuitive function of imagination and thought
Amiable: Based on the feeling function of personal and heart-led reactions.
Analytical: Based on the thinking function of organizing and analyzing.
THE DRIVER:
Decisive in action and decision making
Likes control; dislikes inaction
Prefers maximum freedom to manage self and others
Cool, independent, and competitive with others
Low tolerance for feelings, attitudes, and advice of others
Works quickly and impressively alone
Has good administrative skills
The EXPRESSIVE
Spontaneous actions and decisions
Likes involvement
Exaggerates and generalizes
Tends to dream and engage others in those dreams
Jumps from one activity to another
Works quickly and excitedly with others
Seeks esteem and group identification
Has good persuasive skills
The AMIABLE
Takes time in making decisions or taking actions
Likes close, personal relationships
Dislikes interpersonal conflict
Supports and actively listens to others
Has good counseling and listening skills
Less interested in goal setting
Seeks security and identification with a group
The ANALYTICAL
Cautious in decisions and action
Likes organization and structure
Dislikes involvement
Asks specific questions
Wants to be right, so collects much data
Works slowly, precisely, and alone
Prefers objective, task-oriented, intellectual work
Has good problem-solving skills
