PERSONAL SELLING EXAM 3 STUDY GUIDE

Chapter 11-Elements of a Great Sales Presentation

Sales Presentation Mix-The key communication elements used by the salesperson in the
presentation. (The salesperson assembles to sell the prospects and customers.)
Logical Reasoning-Persuasive techniques that appeal to the prospects common sense by
applying logic through reason.
Suggestive Propositions-Propositions that imply that the prospect should act now.
Prestige Suggestions-A technique in which the salesperson has the prospect visualize using
products that people whom the prospect trusts use.
Autosuggestion-A kind of suggestion that attempts to have prospects imagine themselves using
the product.
Direct Suggestion-An approach that suggests prospects buy rather than telling them to buy.
Indirect Suggestion-A statement by the salesperson recommending that the prospect undertake
some action while making it seem that the idea to do so is the prospects.
Countersuggestion-A suggestion that evokes an opposite response from the prospect.
Simile-A direct comparison statement using like or as.
Metaphor-An implied comparison that uses a contrasting word or phrase to evoke a vivid image.
Analogy-A comparison between 2 different situations that have something in common.
Parable-A brief story used to illustrate a point.
Proof Statements-Statements that substantiate claims made by the salesperson.
Benefit Restatement-A restatement of the benefit before proving it.
Source & Facts-The proof source & relevant facts or figures about the product.
Benefit Expansion-Expansion of the benefit.
Visuals-Illustrative material that aids a prospect in increasing memory retention of a
presentation.
Dramatization-The theatrical presentation of products.
Demonstration-The process of showing a product to a prospect and letting him or her use it, if
possible.
3 Essential Steps of the Sales Presentation in the Correct Order
(1) Fully discuss features, advantages, benefits (FAB) of your product. Tell the whole story. (2)
Present your Marketing Plan. (How they should resell product *wholesalers and retailers*)

(How they can use the product *End Users* (3) Explain Your Business Proposition *Step relates
the value of your product to its cost. *Discussed Last*
Ethical service Golden Rule of Selling says, this is essential for building true relationship
between buyer & seller.
Sales presentation goal mode-Primary purpose of this is determining which elements of sales
presentation mix to use.
5 purposes of the Sales Presentation (KBDAC)
(1) Knowledge > (2) Beliefs > (3) Desire (Sales Success) > (4) Attitude, > (5) Conviction
Pleasant smile
-Considered best nonverbal selling technique
Sales presentation main goal
-Provide information to prospect
Seven Factors that help you be a better communicator:
-Using Questions
- Being Empathic
-Keeping the message simple
-Creating mutual trust
-Listening
-Having a positive attitude and enthusiasm
-Being Believable
All elements should be part of the presentation, it is up to the individual to determine
how much each element is emphasized. This determination is based on:
-Sales Call Objective
-Customer Profile
-Customer Benefit Plan
Six Classes of the Salespersons Presentation Element Mix
-Persuasive Communication
-Participation
-Proof
-Visual Aids
-Dramatization
-Demonstration
SELL Sequence
-term refers to combining a question with a discussion of a product's FABs.
-When a question is coupled with discussing a products FAB it forms the SELL Sequence.
-SELL Sequence is a great method of determining if the FAB is of interest to the buyer.
-SELL Sequence is an effective form of persuasive communication

Persuasive Factors to consider in the presentation

-Logical Reasoning
-Persuasive Suggestions
-Sense of Fun (Make the presentation Fun)
-Personalized Relationships (Personalize Your Relationship)
-Trust (Build Trust)
-Body Language (Use Body Language-Send Green Signals)
-Controlled Presentation (Control the Presentation)
-Diplomacy (Be a Diplomat)
-The Paul Harvey dialogue or conversation style (Use a pleasant dialogue)
-Using words as selling tools (Simile, Metaphor, Analogy, and Parable)
Four Ways to Induce Participation
-Question
-Product Use
-Visuals
-Demonstrations
To help you decide whether to use some or all of the sales presentation mix ingredients.
You need to answer these six questions:
-What is your objective?
-Who is your audience?
-How will you structure your presentation?
-How will you create impact?
-How will you design and display visual aids?
-How will you stage your presentation?
*Your sales presentation goal(s) and the answers to these six questions will be your guide
to skillfully show and tell your customers how your product will fulfill their needs.*
How should you handle competition?
-(1) Do not refer to a competitor unless absolutely necessary
-(2) Acknowledge your competitor only briefly
-(3) Make a detailed comparison of your product and the competitions product
Chapter 12-Welcome Your Prospects Objection
Sales Objection-The prospects opposition or resistance to the salespersons information or
request.
Condition of the Sale- A situation wherein an objection becomes a condition of the sale, such
that if the condition is met, the prospect will buy.
Negotiation- The process by which the buyer and the seller reach a mutually satisfactory
agreement.
Practical Objection- An overt objection based on real or concrete causes.

Psychological Objection-A hidden objection based on the prospects attitudes.

Hidden Objection- An objection that disguises the actual objection either with silence or
triviality.
Stalling Objection-An objection that delays the presentation or the sale.
No-Need Objection- An objection in which the prospect declares her or she does not need the
product and implies the end of the selling effort, but which may actually be either a hidden or a
stalling objection.
Money Objections- A price-oriented objection.
Product Objections-An objection relating directly to the product.
Source Objections- A loyalty-related objection by which the prospect states a preference for
another company or salesperson and may specify a dislike for the salespersons company or
self.
Dodge-Doesn't deny, answer, or ignore the objection, but simply temporarily dodges it.
Pass Up-The option of a salesperson not to pursue a presentation or sale, or not to respond to
an objection.
Rephrasing Question-A question in which the salesperson rephrases what the prospect has
said in order to clarify meaning and determine the prospects needs.
Postpone the Objection-The option of a salesperson to respond to an objection later during
the sales presentation.
Boomerang Method-The process of turning an objection into a reason to buy.
Intelligent Questions-Questions relating to a prospects business that show the salespersons
concern for the prospects needs.
Five-Question Sequence- The 5 step process of overcoming objections in which facts, logic,
and tact are used.
Direct Denial-The method of overcoming objections through the use of facts, logic, and tact.
Indirect Denial-An apparent issue with the prospect used by the salesperson to deny the
fundamental issue of the objection.
Compensation Method-The method of offsetting negative product aspects with better benefit
aspects.

Third- Party Answer- The technique of responding to an objection with testimony from
authoritative sources.
Price/Value= Cost
Why Do You Use a Trial Close After Answering an Objection?
-To see if you have answered the objection!
If You Cannot Overcome the Objection, What Are Three Alternatives to Consider?
- (1) Return to presentation concentrating on new or previously discussed FABs of your
product
- (2) Admit it. Compensate for it by showing how your product's benefits outweigh the
disadvantages.
- (3) If 100% sure the customer will not buy:
-Go ahead and close
-Always ask for the order
-Allow the buyer to say "no" - don't say it yourself
Objections help you determine if you are on the right track to:
-Over prospects' needs and if they believe your product will fulfill those needs
Objections show inadequacies in:
-A salesperson's presentation or product knowledge
Sales objection indicates:
1) prospect's interest
2) Determines prospect's stage in buying cycle
Uncover prospect's hidden objections and:
- eliminate them
After Meeting the Objection-What to Do?
-First, use a trial close - ask for opinion.
Basic Points to Consider in Meeting Objections:
-Plan for objections.
-Anticipate and forestall.
-Handle objections as they arise.
(Postponement may cause a negative mental picture or reaction)
-Be positive.
-Listen - hear them out
-Understand objections
(Request for information)
[A condition (negotiation can overcome a condition)]
(Major or minor objection)

(Practical or psychological objection)

-Meet the objection
What Does a Prospect mean by an Objection? Is the prospect's response a...
-Request for more Info?
-Condition?
-True Objection?
-Hopeless Objection?
True Objection
-Can be major or minor, practical or psychological
Practical Objections:
-Price
-Product not needed
-Prospect overstocked w/your or your competitor's product
Psychological Objections:
-Resistance to spending $
-Resistance to domination
-Predetermined beliefs
-Negative Image of salespeople
Six Major Categories of Objections:
(1) Hidden objections
(2) Stalling objections
(3) No-need objections
(4) Money objections
(5) Product objections
(6) Source objections
What to do AFTER meeting the Objection?
1. Trial Close
2. Move back into presentation
3. Close the sale
Ten Techniques for Meeting Objections
1- The dodge
2- Pass up
3- Rephrase as question
4- Postpone
5- Boomerang
6- Ask Questions (5 Question Sequence)
7- Denial
8- Indirect Denial
9- Compensation

10- Third party

Five Question Sequence Method of Overcoming Objections:
- Question 1: There must be a good reason why you're hesitating to go ahead now. Do you
mind if I ask what it is?
-Question 2: In addition to that, is there any other reason for not going ahead?
-Question 3: Just supposing you convince yourself that...Then you'd want to go ahead with it?
[If positive response, go back to selling; if negative response, go to question 4]
- Question 4: Then there must be some other reason. May I ask what it is?
-Question 5: What would it take to convince you?
Chapter 13-Closing Begins the Relationship
Alternative-choice close Gives the prospect a choice between two alternatives.
Assumptive Close- A type of close that assumes the prospect will buy.
Buying Signal -Anything that prospects say or do indicating they are ready to buy.
Closing -The process of helping people make a decision that will benefit them by asking them to
buy.
Compliment Close- A close wherein the salesperson ends with a compliment to the prospect.
Continuous-yes close -A kind of close whereby the salesperson develops a series of benefit
questions that the prospect must answer.
Minor-Points Close- A close in which the salesperson asks the prospect to make a low-risk
decision on a minor element of a product.
Negotiation Close- A close in which buyer and seller find ways for everyone to have a fair deal.
Probability Close- A close that permits the prospect to focus on his or her real objections, which
a salesperson attempts to reverse with a persuasive sales argument.
Standing-Room-Only Close -A close whereby a salesperson suggests that if a prospect does not
act now he or she may not be able to buy in the future, thus motivating the prospect to act
immediately.
T-account close -A close that is based on the process that people use when they make a decision
by weighing the pros against the cons.
Technology Close- A close in which the seller uses technology to present information.
Summary-of-benefits close-A close wherein the salesperson summarizes the benefits of the
product in a positive manner so that the prospect agrees with what the salesperson says.

Exit technique-Act as a professional. Leave the door open for a return visit.
-"Would you think about what we discussed?"
-"May I come back in a month?"
When to close?

-When the prospect is in the conviction stage of the mental buying process
Examples of buying signals:
-Asking questions
-Asking another person's opinion
-Relaxing and becoming friendly
-Pulling out a purchase order form
-Carefully examining merchandise
A Good Closer:
-You must be able to handle objections
-Ask for the Order and Be Quiet
-Get the order-Then Move on!
How Many Times Should You Close?
Three closes is a minimum
Answer prospect's buying signal question with a question
-Buyer: What's your price?
-Seller: In what quantity?
Closing Under Fire
-Ask a prospect who may be in a bad mood/hostile toward you to buy
Techniques for Closing the Sale:
-Alternative-choice close
-Assumptive close
-Compliment close
-Summary-of-benefits close
-Continuous-yes close
-Minor-points close
-T-account or balance sheet close
-Standing-room-only close
-Probability close
-Negotiation close
-Technology close
Constantly Look For
-Buyer signals

For some salespeople, the discussion of the business proposition

-Provides an excellent opportunity to close
Closing begins the Relationship
-When you make a sale for the first time, you change the person or organization from a prospect
to a customer.
The purpose of the negotiation close
-Is to find ways for everyone to have a fair deal
Common salesperson mistakes resulting in unsuccessful sales calls
-Tells instead of sells, doesn't ask enough questions
-Over-controls the call, asks too many closed-end questions
-Doesn't respond to customer needs with benefits
-Doesn't recognize needs, gives benefits prematurely
-Doesn't recognize or handle objections, indifference (no need), or skepticism effectively
-Makes weak closing statements, doesn't recognize when or how to close
The Business Proposition and the Close
-The Business Proposition is the discussion of costs, markups, value analysis, or a return-oninvestment (ROI) profit forecasts.
-It follows the discussion of a products FABS and Marketing Plan.
-The Use of Visual Aid works well in discussing the business proposition and when closing.
Chapter 14-Service and Follow-up for Customer Retention
Acquaintances -People you know little about.
Business Friendship -The relationship formed between a salesperson and client that revolves
around business-related issues.
Customer Satisfaction-Feelings toward the purchase. (Meeting Expectations)
Customer Service -Activities and programs provided by the seller to make the relationship a
satisfying one for the customer.
Follow-up- Maintaining contact with a customer (or prospect) in order to evaluate the
effectiveness of the product and the satisfaction of the customer.
Friends -People known for some time and with whom we share common interests and/or
hobbies.
Intimate friends -People known on a deeper, more personal level than a friend.
Knowledge -Knowing something gained through experience and/or training. - having these
facts.

Proverb- A short, wise, easy-to-learn saying that calls a person to think and act.
Wisdom -Ability to make good use of knowledge - or applying these facts to taking care of
customers.
80/20 rule
-20% of customers represent 80% of profit
Transaction Selling- the salesperson sells to customers and does not contact them again.
Relationship Selling -after the purchase the seller finds out if the customer is satisfied and has
future needs.
Partnering- the seller works continually to improve the customer's operations, sales, and profits.
Relationship Marketing (or customer relationship marketing)- The creation of customer
loyalty and retention -- provides the key to retaining customers - i.e. sending birthday cards and
Christmas cards or writing letters to the customers.
What you should do when a customer complains
1. Listen to them
2. Acknowledge and apologize
3. Give them something - go above and beyond the call of duty (getting customer's to say we
exceeded expectations)
Increased retention 2-5% means
- Increased profit up to 100% which is the same as reducing costs by 5%
4 P's of Marketing
- Product (the product purchased has no defects)
-Price (fair value for the price)
-Place (the product is available when and where needed and promised)
-Promotion (correct, honest information in ads, from salespeople, and on product labels) in
addition exchange transaction (handled correctly, quickly, and professionally the first time) after
the sale (warranty honored, repairs or exchanges made cheerfully)
What is the Goal of Service?
-To exceed customer satisfaction
Account Penetration -The ability to work and contact people throughout the account, discussing
your products. (Service that account by uncovering needs & problems)
A salesperson should consider _____ when determining how often he or she should call on
an account.
-Present and potential sales to the account
T/F: A business partnership differs significantly from a personal friendship.
-False

Cross selling- The practice of selling or suggesting related or complimentary products to a

prospect or customer.
The path to sales success:
-Seek customers to serve and you will find them
-Knock and people will open their doors
-Ask and people will buy
-Serve (Provide service after the sale and customers will buy again.)
Selling takes the three Fs:
-Faith
-Focus
-Follow-through
Chapter 15-Time, Territory, and Self-Management: Key to Success
Sales territory- Comprises a group of customers or a geographical area assigned to a
salesperson.
Account analysis- Identifying accounts and their varying levels of sales potential.
Undifferentiated Selling- approach selling strategies are designed and applied equally to all
accounts; needs are similar; same sales presentation may be used in selling an entire product
strategy.
Account Segmentation Approach- Recognize that their territories contain accounts with
heterogeneous needs and differing characteristics that require different selling; classify
customers to identify profitable ones (segment by key accounts, unprofitable account, regular
account); classified by ELMS system (extra-large, large, medium and small); 80/20 principle
(key accounts are 80 percent of a company's profitable sales but they only represent only 20
percent of total accounts.
Key Accounts- Accounts the loss of which would greatly affect sales and profits.
ELMS System-The process of dividing customers into varying size accounts.
Eighty/Twenty Principle (80/20)-A situation in which a few key or large account bring in 80
percent of profitable sales.
Sales Response Function-The relationship between sales volume and sales calls.
Break-Even Analysis-A quantitative technique for determining the level of sales at which total
revenues equal total costs.
Scheduling- Establishing a fixed time (day and hour) for visiting a customer's business.
Routing- Travel pattern used in working a territory.

How you spend your time:

- Determines your life
Reasons Companies Develop and Use Sales Territories:
1- To Obtain thorough coverage of the market
2- To Establish each salesperson's responsibilities
3- To Evaluate performance
4- To Improve customer relations
5- To Reduce sales expense
6- To allow better matching of salesperson to customer's needs
7-To benefit both salespeople and the company
Why Sales Territories May Not Be Developed:
-Restricted by a particular territory
-The company may be too small to be concerned with segmenting the market into sales areas.
-Management may not want to take time the time or may not have the know-how territory
development
-Personal friendships may be the basis for attracting customers
A salesperson's manager typically establishes
-The total sales quota that each salesperson is expected to reach
Once this quota is set, it is the salesperson's responsibility
-To develop territorial sales plans for reaching the quota.
Multiple Selling Strategies -Develop their sales force organizational structure to service key
accounts; depends on the account type (size).
Multivariable Account Segmentation -using more than one criterion to characterize the
organization's accounts.
Time and Territory Management (TTM) -A continuous process of planning, executing &
evaluating the sales & service provided to customers.
Forms of Account analysis:
-Undifferentiated selling approach
-Account segmentation approach
*ELMS system
*80/20 principle
-Multiple selling strategies
-Multivariable account segmentation
Elements of Time and Territory Management for the Salesperson:
(1) Salesperson's territory's sales quota
(2) Account analysis
(3) Set account objectives/quotas

(4) Territory-time allocation

(5) Customer sales planning
(6) Scheduling and routing
(7) Territory & customer evaluation
7 Basic Factors to Consider in Territory-time allocation:
-# of accounts in the territory
-# of sales calls made on customer
-Time required for each sales call
-Frequency of customer sales calls
-Travel time around the territory
-Non-selling time
-Return on time invested
What is Involved in Customer Sales Planning?
-Develop sales call objectives
-Review/create customer profile
-Create customer benefit plan
-Select FABs
-Develop marketing plan
-Develop business proposition
-Develop suggested order
-Develop your sales presentation
Using the Telephone for Territorial Coverage:
-Satisfy part of the service needs of accounts by telephone
-Assign smaller accounts that contribute less than 5 percent of business to mostly telephone
selling
-Do prospecting, marketing data gathering, and call scheduling by telephone
-Carefully schedule personal calls to distant accounts