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Selling: Principles

and Methods
Week 2B
Communication skills
(LO1)

Dr. Nikola Drašković, assistant professor


Agenda – Communication skills (LO1)

• Sales communication
• Types of questions
• SPIN
• ADAPT
• Using different types of listening

Corresponding reading: SELL6, chapter4.


SALES COMMUNICATION
Trust-based sales communication

• Collaborative and two-way form of communication


• Allows buyers and sellers to:
• Understand the need situation
• Work together to create the best response for resolving customer needs
Internet changed the buying-selling environment

 Communication is faster
 Buyers are well-informed (product, alternatives, prices, competition)
 Internet-based technologies reduced need for meetings in person
 COVID-19 additionally reduced need for meetings in person
 Push and hard-selling approach are vanishing
Rapport-building is still essential

 Selling is basically an interpersonal communication


 Communication skills are essential
 No more “talking at the customer”, instead “talking with the
customer”
Sales communication as a collaborative process

 Collaborative and two-way form of communication


 Allows buyers and sellers to understand the need by working together to create the
best solution for customers
Verbal communication - questioning

• Salespeople must ask carefully crafted questions to:


• Elicit information from a prospective buyer regarding his or her current situation, needs, and
expectations
• Actively involve the buyer in the selling process
• Redirect, regain, or hold the buyer’s attention
TYPES OF QUESTIONS
Types of questions based on the amount and specificity of
information desired

 Open-end - allows free customer response


• Can you, please, describe your current experience with my company.
• What happens when….?
• How do you feel about…?
 Closed-end - limits the customers’ response to one or two words
• Are you satisfied with the service provided by my company?
• Do you…?
• How often…?
• How many…?
Types of questions based on the amount and specificity of
information desired

 Dichotomous/multiple choice - customer needs to select from two or more


options
• Which freight option do you prefer – by railway or by road?
• Which do you prefer, the ____ or the _____?
Types of questions based on strategic purpose

 Probing question - provokes articulate and precise responses from the customer
• Can you share with me an example of that?
• How long has this been a problem?
• How are you dealing with that situation now?
• What is your experience with ______?
Types of questions based on strategic purpose

 Evaluative question - uses open-end and closed-end question formats to discover


attitudes, opinions, and preferences that the prospect holds
• How do you feel about _____?
• Do you see the merits of _____?
• What do you think _____?
Types of questions based on strategic purpose

 Tactical question - used to shift the topic when the conversation goes off course
• Earlier you mentioned that ____.
• Could you tell me more about how that might affect _____?
Types of questions based on strategic purpose

 Reactive question - question based on the information provided previously by the


other party
• You mentioned that ____. Can you give me an example of what you mean?
• That is interesting. Can you tell me how it happened?
The purpose of questions and questioning

 Generate buyer involvement


 Provoke thinking
 Gather information
 Clarification and emphasis
 Show interest
 Gain confirmation
 To move along the sales process
SPIN
SPIN

• The SPIN system sequences four types of questions designed to


uncover a buyer’s current situation and inherent problems, enhance the
buyer’s understanding of the consequences and implications of those
problems, and lead to the proposed solution.
SPIN

Situation Problem

Implication Need-payoff
Situation questions

 Assessment of the current situation, explorative questions, general in


nature

• Who are your current suppliers?

• Do you typically purchase or lease?

• Who is involved in purchasing decisions?


Problem questions

 More specific probing questions, focus specific difficulties,


developing problems, and areas of dissatisfaction

• How critical is this component for your production?

• What kinds of problems have you encountered with your current suppliers?

• What types of reliability problems do you experience with your current system?
Implication questions

 Implication questions follow and relate to the information flowing


from problem questions. Their purpose is to assist the buyer in
thinking about the potential consequences of the problem.
• How does this affect profitability?
• What impact does the slow response of your current supplier have on the
productivity of your operation?
• How would a faster piece of equipment improve productivity and profits?
• What happens when the supplier is late with a shipment?
Need-payoff questions

 Based on the implications of a problem, salespeople use need-payoff questions to


propose a solution and develop commitment from the buyer.
• Would more frequent deliveries allow you to increase productivity?
• If we could provide you with increased reliability, would you be interested?
• If we could improve the quality of your purchased components, how would that help you?
• Would you be interested in increasing productivity by 15 percent?
ADAPT
ADAPT

 Logic-based funnelling sequence of questions that identifies


and assesses the buyer’s situation

Assessment
Discovery
Activation
Projection
Transition
ADAPT
ADAPT

 Assessment questions
• Q: What types of operating arrangements do you have with your suppliers?
• A: We use a Just-in-Time (JIT) system with our main suppliers.
• Q: Who is involved in the purchase decision-making process?
• A: I make the decisions regarding supplies. . . .
ADAPT

 Discovery questions
• Q: I understand you prefer a JIT relationship with your suppliers—how have they been
performing?
• A: Pretty well . . . an occasional late delivery . . . but pretty well.
• Q: How do you feel about your current supplier occasionally being late with deliveries?
• A: It is a real problem . . . for instance . . .
ADAPT

 Activation questions
• Q: What effect does your supplier’s late delivery have on your operation?
• A: It slows production. . . . Operating costs go up.
• Q: If production drops off, how are your operating costs affected, and how does that affect your
customers?
• A: Customer orders are delayed. . . . Potential to lose customers.
ADAPT

 Projection questions
• Q: If a supplier was never late with a delivery, what effects would that have on your JIT operating
structure?
• A: It would run smoother and at a lower cost.
• Q: If a supplier helped you meet the expectations of your customers, what impact would that have
on your business?
• A: Increased customer satisfaction would mean more business.
ADAPT

 Transition questions
• Q: So, having a supplier who is never late with deliveries is important to you?
• A: Yes, it is.
• Q: If I can show you how our company ensures on-time delivery, would you be interested in
exploring how it could work for your organization?
• A: Yes, if I am convinced your company can guarantee on-time delivery.
SPIN vs. ADAPT

• Situation – Assessment questions


• Problem – Discovery
• Activation – Implication
• Need-payoff – Projection, Transition
USING DIFFERENT TYPES OF
LISTENING
Effective listening

 Pay attention - listen to understand, not to reply


 Monitor nonverbals
 Paraphrase and repeat
 Make no assumptions - ask questions
 Encourage the buyer to talk
 Visualize what the buyer is saying
Types of listening

• Informal mode of listening associated


Social with day-to-day conversation and
entertainment

• Involves sorting, interpreting, understanding,


and responding received messages
Serious • Active listening: Actively sensing,
interpreting, evaluating, and responding to
verbal and nonverbal messages
SIER hierarchy of active listening
Keys to effective listening

Find areas of interest


Keep an open mind Judge content not delivery

Capital on fact that Keys to Hold your fire until


thought is faster full consideration
than speech effective
listening

Listen for ideas


Exercise the mind

Resist distractions Be flexible

Work at listening
Verbal Communication

 Statements of fact, opinion, and attitude encoded in the form of words,


pictures, and numbers to convey meaning to a receiver
 Words and symbols mean different things to different people
 To maximize clarity, understand and use the vocabulary and
terminology that corresponds with the perspective of the customer
Superiority of pictures

 Pictures tend to be more memorable than their verbal counterparts


 Verbal message should be constructed in a manner that generates a mental picture
in the receiver’s mind
 Words and phrases that convey concrete and detailed meaning should be used
 Relevant visual sales aids should be incorporated into verbal communication
Nonverbal communication

 Facial expressions and eye movements


 Placement and movements of hands, arms, head, and legs
 Body posture and orientation
 Proxemics
 Variation in voice characteristics
 Speaking rate and pause duration, pitch or frequency, and intensity and loudness
 Nonverbal clusters - are groups of related expressions, gestures, and movements.
Personal space
Common nonverbal clusters (textbook)
Common nonverbal clusters (textbook)
Thank you!

Q&A
What’s next…

• When: Wednesday, Mar 2, at 17:00 TBA

• Lecture: Planning sales dialogues and sales presentation

• Group project: Phase 2 presentation (submission: Mar 4)

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