Test 2 (Ch 9-11) Flashcards
What is rapport?
A harmonious relationship in which the people involved have mutual understanding and trust
What is a potential prospect or account?
An individual or business that meets the qualification criteria established by you or your company
What is a prospect base?
A list of current or potential customers
In personal selling, what is the difference between prospecting and account development?
Prospecting is identifying potential customers in B2C sales and account development is identifying potential customers in B2B sales
What is customer attrition?
The inevitable loss of customers over a period of time which can be attributed to a variety of causes
What are the main causes of customer attrition?
Account may have a one time need, the customer may move, a firm may go out of business or merge with another company, a local buyer may leave the position, sales may be lost due to competition, companies and salespersons may want to grow and increase the size of their business
What is the ferris wheel model?
It illustrates the relationship between prospecting and loss of customers due to attrition
What can progressive marketers do to improve the quality of their prospecting effort?
Increase # of people who board the ferris wheel, improve the quality of prospects who board, and shorten sales cycle by quickly determining which of the new prospects are qualified prospects
What are the different sources of prospects?
Referrals, prospecting with social media, centre of influence, trade publications & trade shows, directories, telemarketing & email, direct response advertising & sales letters, websites, computerized databases, cold calling, networking, education seminars, prospecting and account development by non-sales employees
What is Barry Siskind’s 3-act process?
Approach someone and engage in conversation, net-chat to collect and give information to find out as much as possible quickly, disengage
What does qualifying mean?
The process of identifying prospects who appear to have a need for your product and should be contacted
What are the 4 ways to establish qualifying criteria?
Need for product, authority to buy product, financial resources to buy product, willingness to buy product
What is sales intelligence?
Information that goes beyond data, giving salespeople access to insights into the prospect’s marketplace, their firm, their competitors, and the prospects themselves. Info must then be entered into the company’s CRM system
What is the sales process model?
A total set of prospects being pursued at any given time. A balanced funnel is a portfolio of prospects where there are a sufficiently large number of prospects at each stage in the sales process. Ensure funnel does not become empty
What are the 3 prescriptions of the presentation strategy?
- Establishing objectives for the sales presentation
- Developing the presale presentation plan needed to meet these objectives
- Renewing one’s commitment to providing outstanding customer service
What is the pre approach vs the approach?
The preapporach is activities that preceded the actual sales call and set the stage for a personalized sales approach, tailored to the specific needs of the prospect. The approach is the first contact with the prospect either face to face or via telephone
What is an action objective? What are examples of action objectives?
An action objective is something that you want the customer to do during the sales presentation. Examples are providing specific financial information, schedule a visit to your manufacturing plant, agree to a trial use of your product, agree to a follow up meeting, and place an order
What is team selling important for?
Team selling is ideal for organizations that sell complex or customized products and services that require direct communication between customers and technical experts. They often results in more precise need identification, improved selection of the product, and more informative sales presentations.
What is adaptive selling?
Adaptive selling involves altering sales behaviour in order to improve communication with the customer. Adjustments are based on relationship needs and product needs of the customer.
What are the 6 steps of the presentation plan?
- Approach
- Need discovery
- Presentation
- Negotiation
- Close
- Servicing the sale
What is the approach?
Initial contact with prospect is called the approach. The approach has 3 important objectives: build rapport through telephone or social contact, capture persons full attention with your businesses contact, and transition to the next stage of the sales process.
What is the difference between social and business contact in the approach?
The social contact has 3 areas of conversation that should be considered, comments on here and now observation, compliments, and search for mutual acquaintances or interests. The business contract is used to convert social contact to the business proposal.
What are the 8 most popular ways to arouse interest during presentations?
Agenda approach, product demonstration approach, referral approach, customer benefit approach, question approach, survey approach, premium approach, combination approach
What is sales call reluctance?
Transition from preapproach to approach can be blocked by sales call reluctance. This includes thoughts, feelings, and behavioural problems that conspire to limit what a salesperson is able to accomplish. It is an internal, often emotional barrier to sales success. Can be caused by fear of taking risk, fear of group presentations, lack of self confidence, and fear of rejection.
How can you deal with sales call reluctance?
Be optimistic about the outcome of the initial contact, to practice yours approach before making the initial contact, recognize that it is normal, and develop a deeper commitment of your goals
What is the importance of asking good questions?
Questions are used to build adaptive selling relationships, discover customer needs, and adapt and present product solutions that meet those needs. The effective use of questions is the starting point of the consultative sales process.
What is consultative selling?
Consultative selling involves meeting customer needs by asking strategic questions, listening to customers, understanding and caring about their problems, selecting appropriate solution, creating sales presentation, and following through after the sale. It is a very customer centric form of selling that creates value for the customer and in the process creating value for the firm.
What is the 4 part need-satisfaction model?
Need discover, selection of solution, need satisfaction through informing, persuading, and reminding, servicing the sale
How does a salesperson create value with need discovery?
The sales person should not recommend purchase of a product without thorough need identification. The only way to determine and confirm the need or problem is to get the other person talking. Need discovery begins with precall preparation when the sales person is acquiring background information on the prospect. This part is also referred to as qualifying the prospect. Need discovery continues once the sales person and the customer are engaged in a real dialogue. Through the process, the sales person establishes two way communication by asking appropriate questions and listening carefully to the prospects responses.
What is the need discovery part of the 4 part need-satisfaction model?
Need discovery helps salespeople create value, meet the needs of customers, and execute the firms commitment to the marketing concept. Review of the behaviours displayed by high performance sales people helps in understanding the importance of precise need discovery. Need discovery in the information economy is a critically important part of the sales presentation. It may begin during the qualifying stage of building the prospect or during the approach.
What is the selection of solution part of the 4 part need-satisfaction model?
An important function of sales people is product selection. Product recommendations in complex sales generally involve writing a detailed product proposal. The sales person must choose the product or service that will provide maximum satisfaction. The sales person must be aware of all product options.
What is the need satisfaction through informing, persuading, and reminding part of the 4 part need-satisfaction model?
This consists of creating a need satisfaction sales presentation and communicating to the customer the satisfaction that the product or service can provide. The sales person place is less emphasis on the use of questions and begins making value adding statements.
What is the servicing the sale part of the 4 part need-satisfaction model?
These activities which occur after closing the sale ensure maximum customer satisfaction and set the stage for a long-term relationship. Service activities include expansion selling, making credit arrangements, following through on assurances and promises, and dealing effectively with complaints.
How do salespeople select solutions that create value?
After identifying the buying motives, the sales person carefully reviews the available product options. At this point the sales person is searching for a specific solution to satisfy the prospects buying motives. Once the solution has been selected, the sales person makes a recommendation to the prospect. The sales person should focus on benefits related to each dimension of value. Sales people must select solutions that create the most value for the customer.
What are the 3 recommendation strategies in consultative selling?
The customer buys immediately, the sales person makes a need satisfaction presentation, or the sales person recommends another source.
What are the 5 steps in the strategic planning process for the need discovery and product selection?
- Review the consultative sales presentation model
- Review existing prospect information
- Preplan questions
- Review product options
- Plan to use time wisely
What are the 5 actions taken during the need discovery and product selection process?
- Re-establish relationship if appropriate
- Ask appropriate questions
- Record customer response
- Acknowledge and summarize customer needs
- Select and recommend appropriate products solutions
