Anderson Basicppt CH 06

Chapter Six
Sales Presentation and Demonstration: The Pivotal Exchange

PowerPoint presentation prepared by Dr. Rajiv Mehta
Chapter Outline
The first sales call and the sales presentation
Planning the sales presentation General guidelines for effective sales presentations Sales presentations to groups Sales presentation strategies Adaptive versus canned sales presentations Written presentations Selling the long-term relationship
Copyright Houghton Mifflin Company. All rights reserved.
Chapter 6 | Slide 2
Learning Objectives
After reading this chapter, you should understand Alternative sales presentation strategies. Guidelines for effective sales presentations and demonstrations to organizational prospects.
Preparation of written sales presentations.

Sales presentation strategies for different prospect categories. Use of adaptive and canned sales presentations. Sales presentations to prospect groups.
Royalty-Free, Digital Vision/Getty Images
How to make a sales presentation memorable.

Chapter 6 | Slide 3
Figure 6.1: The Personal Selling Process (PSP)

The fourth step of the professional selling cycle
Chapter 6 | Slide 4
The First Sales Call and the Sales Presentation

Successful salespeople think of the sales presentation and demonstration as the pivotal exchange between seller and buyer in the sequence of exchanges that make up the selling process
The approach emphasized in this text is the consultative problem-solving strategy Consider several tasks before making the sales presentation
Chapter 6 | Slide 5
Planning the Sales Presentation

To prepare for the first sales presentation, salespeople can think of 5 planning stages: 1. Gathering information 2. Identifying the prospects problems and needs
3. Preparing and presenting the sales proposal

4. Confirming the sale and/or the relationship 5. Ensuring customer satisfaction
Chapter Review Question: What are the basic steps in planning the sales presentation?
Copyright Houghton Mifflin Company. All rights reserved. Chapter 6 | Slide 6
Table 6.1 Planning the Sales Presentation and Demonstration
Chapter 6 | Slide 7
1. Gathering Information
Too much talk can be detrimental to the sales process. A chronic complaint is that salespeople talk too much, fail to ask the right questions, and do not really listen to the buyer.
Top-performing salespeople understand the need to gather all the relevant information they can about prospects and their perceived problems. First, they make sure theyre talking to decision-makers (those with authority to buy) or key influencers, so neither partys time is wasted. Next, they ask probing questions to encourage prospects to provide information on perceived problems, objectives, financial issues, needs, and personal feelings.
Chapter 6 | Slide 8
2. Identifying the Prospects Problems and Needs

Using a consultative, problem-solving approach, the professional salesperson tries to uncover the prospects perceived problems and needs through skillful questioning and careful listening.
Chapter 6 | Slide 9
3. Preparing and Presenting the Sales Proposal

Before making a sales presentation, take the time and effort to prepare yourself to give a superb performance.
Thus, remember the following:

A. Professional approach to sales presentations B. FAB leads to SELLS
C. Value-added selling (VAS)
Chapter 6 | Slide 10

A. Professional approach to sales presentations
Salespeople should custom-tailor the sales presentation and demonstration to the prospects specific business situation, needs, and individual communication style. The sales presentation strategy can vary depending on different types of prospects as shown in Table 6.2.
Table 6.2 Prospect Categories and Sales Presentation Strategies
Table 6.2 contd

B. FAB leads to SELLS
are the obvious F Features characteristics of the
product. Advantages are the performance traits of the product that show how it can be used to help the customer better solve a problem than present products can. Benefits are what the customer wants from the product.
S Show the products features. E Explain its advantages. into the benefits for the L Lead prospect. L Let the prospect talk. S Start a trial close.

C. Value-added selling (VAS)
A comprehensive strategy, VAS focuses on providing customers with extra, or value-added benefits over those offered by competitors VAS shows customers that the extra overall perceived value is greater than that the competitors are offering VAS presentations go beyond the FAB approach to convincingly present and demonstrate the overall added value (benefits) that the customer will receive from purchasing from their company across four categories:
1. 2. 3. 4. Value-added product benefits Value-added relationship benefits Value-added company benefits Value-added salesperson benefits Chapter Review Question: What is the value-added selling approach to sales presentations? Identify and discuss the four value dimensions.
Table 6.3 Value-Added Benefit Comparison Chart
4. Confirming the Sale and/or the Relationship

Professional salespersons: See their prospects and customers as business partners cultivating a relationship based on trust, mutual interests, and cooperation, instead of aggressively on closing the sale. Spend considerable time trying to undercover and fully understand the needs and concerns of their partners through attentive listening and by serving as trusted advisers, consultants, and even friends. Do not want to sell products or services with which the customer will not be satisfied.
Realize that only by providing continuous customer satisfaction will they obtain the repeat business that leads to long-term customer loyalty and higher commissions for themselves and greater profits for their companies.
5. Building Relationships and Achieving Customer Satisfaction

Some underperforming salespeople neglect post-purchase customer service. Immediately after the sale, their interest, contact, and relationship with the customer fall off rapidly.
Such shortsightedness or indifference is a relationship killer, and these salespeople may later have to work doubly hard to reestablish rapport and rebuild the relationship with that customer. High performing salespeople are committed to providing prospects and customers with totally satisfying service throughout the long-run relationshipbefore, during, and after the sale.
They understand that fully satisfying current customers generates repeat sales, referrals to other prospects, and increased sales as customer needs grow.
General Guidelines for Effective Sales Presentations contd

In sales presentations and demonstrations, salespeople can facilitate prospect involvement and the learning process by using 4 learning principles 1. Participation Prospects who participate in the sales presentation and demonstration retain more information and develop more favorable attitudes 2. Association Prospects remember new information better if they can connect it to their personal knowledge, past experiences, or frames of reference

3. Transfer Prospects who see the product being used in situations similar to their own can better visualize its benefits 4. Insight Product demonstrations should weave facts and figures from the sales presentation into the prospects own experience

Prospects want to understand a product with all their senses, so where appropriate in the demonstration help prospects see, hear, feel, smell, and taste a product. Eight planning steps to prepare for the demonstration are:
1. Demonstrate benefits that are custom-tailored to the prospect's needs 2. Decide what to say about the benefits from the prospect's perspective 3. Select sales aids that involve the most human senses and will make the most positive impact

4. Pre-check all sales aids to make sure everything is working smoothly 5. Decide when and where to make the demonstration (usually a controlled environment is best) 6. Involve the prospect in the demonstration. Remember the motto: "If they try it, they'll buy it 7. Prepare a written demonstration outlining three columns: Benefit to demonstrate What to say What to do 8. Rehearse the demonstration many times until you have the right timing of actions and words

Dressing for Success
An important part of any sales presentation is the salesperson's personal appearance
Additional suggestions for dressing for success are found in Table 6.4
Table 6.4 Dressing for Sales Presentation Success
Effective Behavior and Listening Principles
Look like a successful salesperson

Develop rapport early Adjust to the customer's communication style Present the strongest customer benefits and selling points first Establish credibility Make the presentation fun
Arouse as many of the customer's five senses as possible

Combine factual and emotional appeals
Effective Behavior and Listening Principles

Look for and use responsive behaviors Help prospects draw the right conclusions Avoid making puns Never tell ethnic or offensive jokes Never disparage another company or individual Assume a relatively firm negotiating position initially Help prospects draw the right conclusions
Use humor with discretion and only when appropriate

Readily admit minor product weaknesses
Table 6.5 Behavioral Guidelines for Effective Sales Presentations and Demonstrations
General Guidelines for Effective Sales Presentations: Listening Principles

Salespeople must act professionally and listen reactively to their prospects
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The old maxim The reason you have two ears and one mouth is that you should listen twice as much as you talk is especially true for a salesperson
Table 6.6 Keys to Good Listening
Table 6.6 Keys to Good Listening contd
Sales Presentations to Groups

Sales presentations to organizational prospects and customers must include a business strategy (business plan) explaining how the product can profitably be resold or used to make other products
When making presentations to groups, salespeople may wish to use a presentation planning checklist Organizational customers must be convinced of the soundness of the overall business strategy before they will buy the product
A. Sales Presentation Format

1. Problem 2. Product
Salespeople succeed using many different kinds of group presentations. One popular group presentation format follows this sequence:
3. Benefits
4. Evidence
5. Summary
6. Action
B. Alignment of the Sales Presentation

Before your talk, align the sales presentation by knowing: 1. Who is the prospect audience? 2. What benefits are the prospects seeking? 3. How do the prospects prefer to communicate?
Table 6.7 Sales Presentation Alignment and Guidelines for Prospect Groups
Guidelines for Sales Presentations to Groups

1. Begin with an audience-focused statement of purpose
2.
3.
Translate the product into prospect benefits

Energize the sales presentation and make it memorable by using S A D T I E:
Chapter Review Question: In context of making presentations to groups, what does the acronym SAD TIE stand for?
S Statistics A Analogies, similes, and metaphors D T I E Demonstrations Testimonials Incidents Exhibits
Define and give an example of each of the following aids for sales presentations: (a) analogies, (b) similes, and (c) metaphors.
Guidelines for Sales Presentations to Groups contd

4. Encourage interaction and participation 5. Show your commitment to customer service 6. Ask for specific action
7. Critique the sales presentation
Sales Presentation Strategies contd

In preparing sales presentations to achieve specific objectives, you can use several alternative strategies, including: Stimulus-response
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Salesperson asks a series of positive leading questions
Formula Salesperson leads the prospect through the mental states of buying (attention, interest, desire, and action) Salesperson tries to find dominant buying needs
Chapter Review Question: List and briefly describe the basic sales presentation strategies. Which one is generally considered best for professional salespeople? Why?
Need satisfaction
Sales Presentation Strategies contd

4. Consultative problem solving
This is the most frequently recommended and most successful sales presentation strategy for today's professional salespeople by a) Focusing on the prospect's problems, not the seller's products b) Emphasizing the partnership of buyer and seller and stresses "win-win" outcomes in negotiations 5. Depth selling Employs a combination of several sales presentation methods Presentation made to a group of decision makers from different functional areas
Chapter Review Question: What is the consultative problem-solving sales presentation strategy? Give an example of a selling situation where this strategy would be especially appropriate?
6. Team selling
Table 6.8 Sales Presentation Strategies
Table 6.8 Sales Presentation Strategies contd
Adaptive Versus Canned Sales Presentations contd

Adaptive selling
stresses the adaptation of each sales presentation and demonstration to fit each individual prospect
Canned selling
is any highly structured or patterned selling approach
Both adaptive and canned sales presentations can be effective when matched with the appropriate prospect in a designated sales situation
Chapter Review Question: Explain the difference between adaptive and canned sales presentations.
Written Presentations
Whether used at the time of the verbal sales presentation or mailed as a follow-up after the sales call, a written presentation can be very effective in winning sales Several suggestions for writing effective sales presentation include: 1. Tailor each written sales presentation to the specific customer Make the opening paragraph of the presentation sparkle Sequence benefits in the most effective order Be positive and upbeat
2. 3.
4.
Written Presentations contd
5. Use a natural, conversational style in writing 6. Use a lively and logical format 7. Never disparage competitors 8. Ask for action 9. Personalize the proposal with a handwritten note 10. Double-check and proofread everything
Chapter Review Question: Give some basic guidelines for written sales presentations.
Table 6.9 Tips for a Written Sales Presentation
Selling the Long-term Relationship

As many industries seek to improve quality and reduce costs, the trend toward closer supplier relationships, longerterm contracts, and fewer suppliers is increasing
Salespeople must go beyond mere selling to serving their customers much like consultants or business partners What these trends tell selling organizations is that selling the long-term relationship is not just another strategy, it is fast becoming the only viable strategy
Key Terms
FAB
A memory-aid acronym that stands for a products Features, Advantages, and Benefits that will appeal most to a salespersons customer.
SELLS
A memory-aid acronym: Show your products key features, Explain its major advantages; Lead into specific benefits for the prospect; Let the prospect do most of the talking; and Start a trial close, and use more throughout the presentation
Value Added
Providing customers extra or added-value benefits than offered by competitors.
SAD TIE
A memory-aid acronym that stands for Statistics, Analogies, Demonstrations, Testimonials, Incidents, and Exhibits, one or all of which the salesperson may use to spice up a sales presentation.
Key Terms contd

Core Selling Team
Members of the selling firm assigned to particular prospects or customers to develop and maintain ongoing buyer-seller relationships with them.
Selling Center
Members of the selling organization assigned to a certain prospect to close a particular sales transaction. After the sale is consummated, the selling center is likely to disband.
Adaptive Selling
Modifying each sales presentation and demonstration to accommodate each individual prospect.
Canned (or Programmed) Selling

Any highly structured or patterned selling approach.
Written Presentation
In sales presentations to organizational prospects, the salespersons explanation of how the prospect can profitably use the product. Also called a sales proposal or business plan.
Chapter Review Questions

1. Why are the sales presentation and demonstration so important in the Personal Selling Process?
2. Why are clothing and accessories important considerations in making an effective sales presentation?
Topics for Thought and Class Discussion

1. Why do you think the consultative problem-solving sales presentation is the most successful strategy for professional salespeople? What are the benefits of this strategy to the prospect or customer? 2. Name at least five special prospect categories, and describe an appropriate strategy for a sales presentation to each. 3. Which do you think is more effective for most business-tobusiness selling, an oral or a written sales presentation? Why? 4. Do you think sales presentations and demonstrations are more important for tangible products or for intangible services? Why?
Internet Exercises
1. Using an Internet search engine, find three firms that specialize in sales presentation training, and visit their websites to determine whether they use other types of sales presentation strategies in addition to those identified and described in this chapter.
2. Use Google or any other search engine to locate two examples of sales presentation strategies being demonstrated using Flash or streaming video.
Projects for Personal Growth

1. Contact two business-to-business salespeople and ask them about their methods of preparing sales presentations, dress style during the presentation, and demonstration techniques. Research the following two industries and report on the methods and approaches that each uses to sell its products: (a) airplane manufacturers, and (b) manufacturers of household products. Contact three salespeople (one who sells to manufacturers, one who sells to resellers, and one who sells to the national government) and ask them how they prepare for their sales presentations and demonstrations. Are there major differences? What similarities emerged?
2.
3.
Projects for Personal Growth contd

4. With a classmate, take turns playing the role of a publishing company sales rep trying to sell a new textbook to a college professor who might be nicknamed Skeptical Sid. Then prepare a written sales presentation to sell a textbook to the instructor of your personal selling class. Depending on how creative or cooperative your instructor is, you may want to ask him or her to play one of the prospect stereotypes described in Table 6.2. Assume that you are a sales representative for a manufacturer of automatic fire sprinkler systems for commercial buildings. Outline sales presentations using each of the seven basic strategies. For each strategy, create and then describe the individual prospect or group of prospects to whom youre presenting.
5.
Case 6.1: Self-Analysis of a Sales Presentation

1. What should Peter say and do now? How do you think Mr. Spearman will react? Why? 2. What do you think about Peters sales presentation? What could he have done better? 3. What advice would you give Peter for capitalizing on the interest Mr. Spearman showed in environmental packaging? 4. Should Peter mention the union strike at Megastar?
Case 6.2: What Makes Him So Successful?

1. What do you think Dan will tell Wanda about his selling philosophy and use of different sales presentation strategies? 2. Describe in a few sentences the most important lesson you think Wanda should have learned on her day in the field with Dan. 3. What advice would you offer Wanda to help her sell more successfully in her sales territory?
Case 6.2 is found online at http://college.hmco.com/pic/andersonps2e.

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Chapter Six

Sales Presentation and Demonstration: The Pivotal Exchange

Copyright Houghton Mifflin Company. All rights reserved.

Preparation of written sales presentations.

How to make a sales presentation memorable.

Copyright Houghton Mifflin Company. All rights reserved.

Figure 6.1: The Personal Selling Process (PSP)

Copyright Houghton Mifflin Company. All rights reserved.

The First Sales Call and the Sales Presentation

Copyright Houghton Mifflin Company. All rights reserved.

Planning the Sales Presentation

3. Preparing and presenting the sales proposal

Table 6.1 Planning the Sales Presentation and Demonstration

Copyright Houghton Mifflin Company. All rights reserved.

Copyright Houghton Mifflin Company. All rights reserved.

2. Identifying the Prospects Problems and Needs

Royalty-Free, Digital Vision/Getty Images

Copyright Houghton Mifflin Company. All rights reserved.

3. Preparing and Presenting the Sales Proposal

Royalty-Free, Digital Vision/Getty Images

Thus, remember the following:

C. Value-added selling (VAS)

Royalty-Free, Digital Vision/Getty Images

Copyright Houghton Mifflin Company. All rights reserved.

3. Preparing and Presenting the Sales Proposal

Copyright Houghton Mifflin Company. All rights reserved.

Table 6.2 Prospect Categories and Sales Presentation Strategies

Copyright Houghton Mifflin Company. All rights reserved.

Table 6.2 contd

Copyright Houghton Mifflin Company. All rights reserved.

3. Preparing and Presenting the Sales Proposal

Copyright Houghton Mifflin Company. All rights reserved.

3. Preparing and Presenting the Sales Proposal

Copyright Houghton Mifflin Company. All rights reserved.

Table 6.3 Value-Added Benefit Comparison Chart

Copyright Houghton Mifflin Company. All rights reserved.

4. Confirming the Sale and/or the Relationship

Copyright Houghton Mifflin Company. All rights reserved.

5. Building Relationships and Achieving Customer Satisfaction

Copyright Houghton Mifflin Company. All rights reserved.

General Guidelines for Effective Sales Presentations contd

General Guidelines for Effective Sales Presentations contd

Copyright Houghton Mifflin Company. All rights reserved.

General Guidelines for Effective Sales Presentations contd

Royalty-Free, Digital Vision/Getty Images

Copyright Houghton Mifflin Company. All rights reserved.

General Guidelines for Effective Sales Presentations contd

Copyright Houghton Mifflin Company. All rights reserved.

General Guidelines for Effective Sales Presentations contd

An important part of any sales presentation is the salesperson's personal appearance

Royalty-Free, Digital Vision/Getty Images

Table 6.4 Dressing for Sales Presentation Success

Copyright Houghton Mifflin Company. All rights reserved.

Effective Behavior and Listening Principles

Look like a successful salesperson

Arouse as many of the customer's five senses as possible

Copyright Houghton Mifflin Company. All rights reserved.

Effective Behavior and Listening Principles

Use humor with discretion and only when appropriate

Copyright Houghton Mifflin Company. All rights reserved.

Copyright Houghton Mifflin Company. All rights reserved.

General Guidelines for Effective Sales Presentations: Listening Principles

Copyright Houghton Mifflin Company. All rights reserved.