Exam 2 Flashcards
The Importance of setting objectives
They provide focus, motivation, progress, and direction for an organization.
Consumer Value Proposition
A Written statement of how purchasing the proposed product can solve customer’s business issue
Steps of setting objectives
- Specific
- Measurable
- Achievable
- Time Based
Selling Techniques
- Under the screen
- Over the screen
Go over the screen: This strategy might include reaching out directly to the executive, bypassing the gatekeepers, possibly through mutual connections or leveraging referrals.
Go under the screen: This approach could involve finding indirect ways to engage with the executive, such as connecting via social media or participating in industry events where the executive is present.
What are call objectives
Understand the relationship to be established with the prospect
Consider:
-Firm’s goals
-Sales team’s goals
-Salesperson’s goals
Return on gross margin
How effectively a company generate profit from its sales after accounting for COGS
Return on Investment
Evaluate the profitability of the investment
Understand Customer Value Proposition
Way in which a given product will meet the prospect’s needs.
—Differentiate from competitors
—Have solid and clear information, its critical
What is important to this specific prospect?
How does your solution create value for this specific project?
Can you demonstrate your capabilities?
Calculate gross margin
Gross Margin = Total Revenue - COGS
SPIN Selling
- Situation Questions: “What car do you currently drive?”
- Problem Questions: “ What issues have you encountered?”
- Implications Questions: “ What happens if not fixed soon?”
- Need-Payoff Questions: “How would resolving this issue improve your overall efficiency?”
Calculate Profit Margin
(Net Profit / Total Revenue) x 100 = Profit Margin
Probing Method
Asking targeting questions to gain deeper insights into the customer needs, concerns, motivations.
Understand cash discounts
Ex: 2/10, n/30 discount
Ex: 2/10, EOM discount
Allowed for early payment, and are the last discount taken
Ex: Deducting 2% from bill if paid within 10 days, otherwise paying full amount in 30 days
Ex: 10 day period begins at the end of the month
Benefits Statement
Highlights how a product or service addresses a customer’s needs, wants, and improves their situation.
Open vs. Closed Questions
Open: Encourages detailed and deeper responses
EX: “Can you describe your current challenges?”
Closed: Very broad and low leveled responses
EX: “Was this good or bad?” , “Do you have it or not?”
