Carefully Select Which Sales Presentation Method to Use Chapter 8 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Carefully Select Which Sales Carefully Select Which Sales Presentation Method to UsePresentation Method to UseCarefully Select Which Sales Carefully Select Which Sales Presentation Method to UsePresentation Method to Use

Chapter

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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter

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Main TopicsMain TopicsMain TopicsMain Topics

The Tree of Business Life: Presentation Sales Presentation Strategy Sales Presentation Methods–Select One Carefully The Group Presentation Negotiating So Everyone Wins Sales Presentations Go High-Tech Select the Presentation Method, Then the Approach Let’s Review before Moving On!

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The Tree of Business Life: Presentation

Guided by The Golden The Golden RuleRule: Master the art of creating effective

sales presentations. Have fun presenting your product. Select your presentation method

based on: Prior knowledge of customer Sales call objective Customer benefit plan

You will see that ethical service builds true relationships.

IT C

Ethi

cal Service

Builds

T r

u e

Relationships

TT T

T T T TT T T T

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The Sales Presentation

Completely and clearly explains all aspects of the salesperson’s proposition as it relates to a buyer’s needs.

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There are Several Sales Presentation Methods and You Must Select One According to Your:

Prior knowledge of the customer Sales call objective Customer benefit plan

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Exhibit 8-1: The Third Step in the Sales Process is the First Step in the Sales Presentation

The sales presentation method determines how you open your presentation.

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Salespeople face numerous situations:Salesperson to buyerSalesperson to buyer groupSales team to buyer groupConference sellingSeminar selling

Sales Presentation Strategy

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Sales Presentation Methods–Select One Carefully

The four sales presentation methods are:MemorizedFormulaNeed-satisfactionProblem-solution

The basic difference between the four methods is the percentage of the conversation controlled by the salesperson.

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Exhibit 8-2: The Structure of Sales Presentations

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Salesperson talking time

Customer talking time

Exhibit 8-3: Participation Time by Customer and Salesperson During a Memorized Sales Presentation

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Exhibit 8-4a: Dyno Electric Cart Memorized Presentation

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Exhibit 8-4b: Dyno Electric Cart Memorized Presentation

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Why to Choose the Memorized (Canned) Sales Presentation Method

Because it: Ensures the salesperson gives a well-planned presentation Ensures all of the company’s salespeople discuss the

same information Both aides and lends confidence to the inexperienced

salesperson

It is effective when: Selling time is short, as in door-to-door or telephone selling The product type is nontechnical – such as books, cooking

utensils, or cosmetics

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Because it: Presents FABs that may not be important to the buyer Allows for little prospect participation Is impractical to use when selling technical products that

require prospect input and discussion Requires the salesperson to proceed quickly through the

sales presentation to the close, resulting in several closes or requests for the order, which may be interpreted by the prospect as high pressure selling

Why Not to Choose the Memorized (Canned) Sales Presentation Method

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Salesperson talking time

Customer talking time

Exhibit 8-5: Participation Time by a Customer and Salesperson During a Formula Sales Presentation

PresentationApproach Close

AI D C A

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Step Number

1. Plan the call

2. Review plans

3. Greet personnel

4. Check store conditions

5. Approach

6. Presentation

7. Close

8. Merchandising

9. Records and reports

10. Analyze the call.

The 10-Step Productive Retail Sales Call

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Exhibit 8-6: The 10-Step Productive Retail Sales Call

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Exhibit 8-7: A Formula Approach Sales Presentation

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Why to Choose the Formula Sales Presentation Method

Because you:Are contacting similar prospects in similar

situationsKnow something about the prospectHave called on the prospect in the pastWant to ensure all information is presented

logicallyWant to have reasonable amount of buyer-seller

interaction

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Why to Choose the Formula Sales Presentation Method, cont…

Because it allows for smooth handling of anticipated questions and objections

Examples of product types that work well with this method are:Consumer goodsPharmaceutical goods

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Why Not to Choose the Formula Sales Presentation Method

Because you:Do not know the prospect’s needsSee a need for the prospect to talk more Have a complex selling situation such as:

Selling a technical productSelling to a group

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Salesperson talking time

Customer talking time

Exhibit 8-8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations

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The Need-Satisfaction Presentation’s Phases

Need-development phase Need-awareness phase Need-fulfillment phase

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Well, it does, but it’s only one mile.

How do your executives get to the plant area?

They walk through our underground tunnel. Some walk on the road when we have good weather.

When they get to the plant area, how do they get around the plant?

Well, they walk or catch a ride on one of the small tractors the workers use in the plant.

Have your executives ever complained about having to do all that walking?

All the time!

Mr. Pride, you really have a large manufacturing facility. How large is it?

We have approximately 50 acres under roof, with our main production building almost 25 acres under one roof. We use six buildings for production.

How far is it from your executives’ offices to your plant area? It looks like it must be two miles over to there.

Exhibit 8-9a: A Need-Satisfaction Presentation

Salesperson:

Buyer:

Salesperson:

Buyer:

Salesperson:

Buyer:

Salesperson:

Buyer:

Salesperson:

Buyer:

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What don’t they like about the long walk?

Well, I hear everything from “It wears out my shoe leather,” to “It’s hard on my pacemaker.” The main complaints are the time it takes them and that some older executives are exhausted by the time they get back to their offices. Many people need to go to the plant but don’t.

It sounds as if your executives are interested in reducing their travel time and not having to exert so much energy. By doing so, doesn’t it seem they would get to the plant as they need to, saving them time and energy and saving the company money?

I guess so.

Mr. Pride, on the average, how much money do your executives make an hour?

Maybe $30 an hour.

If I could show you how to save your executives time in getting to and from the plant, would you be interested?

Yes, I would. [Now the salesperson moves into the presentation.]

Exhibit 8-9b: A Need-Satisfaction Presentation

Salesperson:

Buyer:

Salesperson:

Buyer:

Salesperson:

Buyer:

Salesperson:

Buyer:

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Why to Choose the Need-Satisfaction Sales Presentation Method

Because you:Need a flexible, interactive sales presentationNeed to uncover needs by asking questionsNeed the prospect to talk about his needs

Use this method the first time you call on a prospect.

Should you have to come back a second time, you would use the formula sales presentation method.

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Why to Choose the Need-Satisfaction Sales Presentation Method, cont…

Examples of product types that work well with this method are:Financial servicesSystemsHigh priced goods/services such as vehicles, real

estate, computer systems, industrial equipment

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Why Not to Choose the Need-Satisfaction Sales Presentation Method

Because you:Need more control over the conversationFeel should not ask too many questionsAre new to the sales profession

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Exhibit 8-8: Participation Time by Customer and Salesperson During Need-Satisfaction and Problem-Solution Sales Presentations, cont…

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The Problem-Solution Presentation’s Six Steps

Step 1 - Convincing the prospect to allow the salesperson to conduct the analysis

Step 2 - Making the actual analysis

Step 3 - Agreeing on the problems and determining that the buyer wants to solve the problem

Step 4 - Preparing the proposal for a solution to the prospect’s needs

Step 5 - Preparing the sales presentation based on the analysis and proposal

Step 6 - Making the sales presentation

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Why to Choose the Problem-Solution Sales Presentation Method

Because you:Are selling highly complex or technical productsAre required to make several sales calls to develop

a detailed in-depth analysis of a prospect’s needs Need a flexible, customized presentation based on

findings

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Each of these methods can be the

best one when properly matched with the situation

What Is the Best Presentation Method?

Memorized Formula Need-satisfaction Problem-solution

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The Group Presentation

May be less flexible than a one-on-one meeting

The larger the group, the more structured your presentation.

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The Group Presentation, cont…

Give the proper introduction Establish credibility Provide an account list State your competitive advantages Give quality assurances and qualifications Cater to the group’s behavioral style

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Negotiating So Everyone Wins

Many salespeople negotiate during the confirming phase of the sale.

Phases of negotiationPlanningMeetingStudyingProposing

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Sales Presentations Go High Tech

Videos CD-ROMs Satellite conferencing Computer hardware and software

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Select the Presentation Method, Then the Approach

Know which method to use before developing the presentation.

Plan the presentation. Select the approach/opening.

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PresentationDiscuss ProductPresent Marketing PlanExplain Business PropositionSuggest Purchase

Selling Process Buyer’s Mental Steps Prospecting

Preapproach

Follow-up & Service

Approach

Presentation

Trial Close

Determine Objections

Meet Objections

Desire

Conviction

Present Marketing PlanAvailability, Delivery,Guarantee, Merchandising,Installation, Maintenance,Promotion, Training, Warranty

Explain Business PropList Price, Shipping Cost,Discounts, Financing, ROI,Value Analysis

Suggest PurchaseProduct, Quantity, Features,Delivery, Installation, Price

MoneyAuthorityDesire

Action

(Purchase)

Attention

Discussion SequenceDiscuss ProductShow FeatureExplain AdvantageLead into BenefitLet Customer Talk

Interest

Trial Close

Close

Exhibit 8-11: The Parallel Dimensions of Selling

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The Golden Rule Makes Sense

Its use sets you apart from all of the other salespeople who only want to make a sale and a fast dollar.

Treat your prospects and customers as your business neighbors.

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Let’s Review Before Moving On!

It’s important to know that:Parallel dimensions interact

Discussion sequenceSelling processBuyer’s mental steps

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Summary of Major Selling Issues You must master the art of giving a good sales

presentation. The sales presentation method selected should be

based on prior knowledge of the customer, your sales call objective, and your customer benefit plan.

Show that you have a right to present your product because it has key benefits for the prospect.

Many different presentation methods are available. There is no one best method; each one must be

tailored to meet the particular characteristics of a specific selling situation or environment.

End of Chapter 8End of Chapter 8End of Chapter 8End of Chapter 8

Chapter

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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.