Answer & Explanation:Read the Mid-Town Office Products case at the end of Chapter 7. Each question should be discussed thoroughly in 200-250 words and at least 4 -5 references for all 4 questions.1.Provide a summary of the case including an analysis of the key facts and potential dilemma.2.Identify the potential sources of concern that Ron is likely to encounter when he begins to make calls on his customers in downtown Los Angeles. 3. Pick one of the concerns you listed in the previous question and examine it in further detail with consideration given to the basic points of negotiating a win-win solution. 4.Assume you are Ron and a customer has expressed the following concern: “We don’t want you delivering during banking hours. Bringing in big boxes of supplies will upset our operations and our customers who are here trying to conduct business. Our current supplier makes deliveries before 6:30 in the morning and I don’t see any need to change.” How to you respond?
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Elements of Relationship Selling
G
O
R
D
O
N
,
Chapter 5
Prospecting and
Sales Call Planning
Chapter 6
Communicating the
Sales Message
Chapter 7
Negotiating for Win–
Win Solutions
Chapter 8
Closing the Sale and
Follow-up
Chapter 9
Self-Management:
Time and Territory
PART TWO
describes the
process of buyer–seller interchange that is the
J
heart and soul of relationship selling. Chapter 5
E
discusses two important tasks that must be done before
Smeeting with a customer—prospecting and sales call planning,
S
including a preapproach.
I
Once you have an appointment
scheduled with your customer, preparing and delivering
C
a great sales presentation becomes key. In Chapter 6 you will learn about ways to make a
A for approaching the customer for the first time, and chargood first impression, strategies
acteristics of different types of sales presentations. Then you will learn how to use the sales
L
presentation to build the relationship
and convey the value proposition to your customers.
E
I
and provides specific negotiation strategies to get there.
G
Closing is about achieving the goals set for a specific sales call. Chapter 8 provides several
H
approaches to closing, as well as ideas for dealing with rejection and maintaining a profes-
Chapter 7 gives you tips on keeping the buyer–seller dialogue focused on win–win solutions,
sional attitude. Also in Chapter 8 you will learn how to recognize buying signals and avoid
1
8
The final chapter in Part Two, Chapter 9, provides a bridge from relationship selling to sales
7
management. It covers the importance of good time and territory management to salespeo1
ple and their managers, including a number of tips on efficient and effective self-management.
B
In order to directly connect the sales process to sales management, each chapter in Part
U
several classic mistakes in closing, as well as how to do great follow-up after the sale.
Two concludes with a section on the sales manager’s role in the element of the sales process
covered in that chapter.
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5
chap te r
Learning Objectives
G
O
R
D
O
N
,
Prospecting and Sales
Call Planning
This chapter explores important issues in how salesJ
people successfully prospect and plan for a sales call (the
preapproach). These important activities in advance of aE
sales call set the stage for success in relationship selling. S
After reading this chapter, you should be able to
S
• Describe how to qualify a lead as a prospect.
• Explain why prospecting is important to long-term
success in relationship selling.
I
C
A
• List various sources of prospects.
• Prepare a prospecting plan.
• Explain call reluctance and point out ways to
overcome it.
• Describe elements of the preapproach and why
planning activities are important to sales call success.
• Understand the sales manager’s role in prospecting
and sales call planning.
L
E
I
G
H
1
8
7
1
B
U
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e x p e r t advice
Expert:
Company:
Business:
Education:
Jack Gillespie
Founder and Broker, South Bay Brokers, Inc., Manhattan Beach, CA
Second largest residential real estate brokerage firm in the South Bay
area of Los Angeles.
G Presently employs 110 agents.
BS in Political Science, California State University Northridge
Where do most of your new clients come from? That is,
what brings them to South Bay Brokers instead of somewhere else?
South Bay Brokers is unique in that our company was
founded within the communities from which our business
thrives. We have the distinct ability to fully concentrate
on branding our name and expertise in our neighborhoods
without bring restricted to a broad national identity. Our
intimate knowledge of the area and quality of expertise in
the field are keys to creating a solid first impression; however, our propensity to exceed expectations is what keeps
our clients loyal, and keeps the referrals coming. These
new and existing clients, buyers and sellers alike, also
respond to our company’s consistent market presence,
which is reinforced by the volume of property listings that
feature our signs and our informative advertising in our
community publications.
Winning new clients and then ultimately fostering loyalty and repeat business from those clients is the lifeblood
of a successful real estate brokerage firm. How do you go
about keeping customers loyal to your firm?
We concentrate on maintaining relationships within our
spheres of influence; mainly our affiliations, our clients,
and the community in which they live. By supporting the
fundraisers, events, and campaigns of our neighborhoods,
schools, and charity organizations, we better our community and demonstrate that our realm of business extends
beyond just the real estate transaction. Such personal
136
O
R
D
O
N makes our clients more inclined to use us as a
attention
,
resource
for anything real estate related—from valuations
for financial planning to contractor referrals for property
maintenance. Besides traditional forms of real estate marJ
keting, one exclusive form of personal correspondence our
E offers is a bimonthly e-newsletter that emphacompany
S the latest market area information and statistics as
sizes
well
Sas useful community information links. Each agent
can monitor “clicks” on various articles presented in the
I
newsletter and use that feedback to anticipate the needs
Cinterests of his or her client. Ultimately, it is our ethics,
and
A and willingness to serve that keeps our clients
honesty,
loyal to South Bay Brokers.
LAre there any specific customer groups that you have
targeted
E as especially high potential prospects?
AnIadept knowledge of multiple property types and a
diverse
G clientele are the core of our business. To overly
target one segment of the marketplace would limit our
H
proficiency and longevity. Our clients, both buyers and
sellers alike, come to us with many different yet specific
needs.
1 For example, we need to be prepared to meet the
requirements
of a first time home buyer as well as an
8
extremely savvy investor. “Farming” a specific clientele—
7
that is, focusing on cultivating a particular client group—is
1way for a salesperson to gain recognition and garner
one
sales.
B But over the long run, in our business the best
approach
U is a well-rounded perspective on prospecting
due to the unpredictability of market conditions.
CHAPTER FIVE
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Prospecting: Customers Don’t Start Out as Customers
We have talked a lot about customers. It is now time to realize an important aspect
of selling that has not yet come up in our discussion: today’s customers didn’t start
out as your customers at all. Somehow, your company, through its various selling
and marketing efforts, brought them to you, you to them, or both.
Your customers have probably gone through a series of stages with you. The
process may start out with a lead, which is the name of someone who might have
the potential to buy from your company. Leads come from many places, and later
G those sources. Many (if not most) leads never make
in the chapter we will review
it past that stage to become
O prospects. Unlike mere leads, prospects have to meet
certain criteria to be considered potential customers. Prospects are considered a
Rcustomers. The process of analyzing a lead to see if it
very likely set of potential
meets the criteria to be a D
prospect is called qualifying the prospect.
O
Qualifying the Prospect
N
The criteria applied to qualify potential prospects vary somewhat from company
,
to company, but several standard qualifications exist for leads to be considered
full-fledged prospects. Here are five key qualifying questions.
J appear to have a need for your product or service? This
1. Does the potential prospect
criterion is fundamental.
E You have already learned that relationship-building
approaches to selling don’t involve arm-twisting, hard-sell techniques. You
S the long run and eventually gain referrals (leads)
want to do business over
from current happy customers
about potential new customers. Thus, success
S
in relationship selling depends on understanding that what you sell can satisfy a potential buyer’sI needs.
C derive added value from your product in ways that you can
2. Can the potential prospect
deliver? This criterion A
is closely related to #1. In Chapter 3 you saw a number
of ways beyond price and the product itself that a seller can add value for
customers. To answer this question accurately, you must analyze the different
ways you might do this
L with a potential customer. The more ways you can
add value, the more likely you have a good prospect.
E
3. Can you effectively contact and carry on communication/correspondence with the
I and communication with potential customers might
potential prospect? Contact
seem easy, but this is actually a very important point. Some customers look
G
good on paper but are not really accessible. The potential customer’s geoH ability to get an appointment with him or her fall
graphic location and your
within this criterion. Consider what type of contact is needed to develop the
relationship. If access and communication lines are significant barriers, then it
1 another prospect.
may be wise to move to
4. Does the potential prospect
8 have the means and authority to make the purchase?
Quite often, as you learned in Chapter 2, a wide variety of people contribute
7
to the ultimate purchase decision. The salesperson must determine (a) if the
1 as a potential prospect can and will make a purchase
person being considered
and (b) how much effort
B and investment might be needed to see the purchase
through to completion. Xerox pioneered a sales training package in the 1960s
U
called Xerox PSS (for Professional
Selling Skills). One of its classic training
role plays partners a salesperson with a buyer to try to make a sale. The script
P RO S P E C T I N G A N D S A L E S C A L L P L A N N I N G
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L e a d e r s h i p 5.1
Four Classic Categories of Prospects
It happens over and over again. The sales representative
delivers an outstanding presentation to the prospect. She
not only knew all the facts about her product, but also about
all of her competitors. Her vocal skills were impeccable,
and she portrayed professionalism and confidence. Her
close was strong and affirmative.
But her prospect—a very prominent physician—said he
would “consider” using her product if it became “appropriate.” He may as well have said, “No.” What went wrong?
While it is true that everyone is different and unique, it’s
also true that people tend to fall into four basic behavioral
types when it comes to buying a service or product. The
success (or failure) of the sales call is dependent upon the
sales representative being able to distinguish the correct
behavioral type of the prospect, the sales message and also
the appropriate communication style. For example, a sales
representative cannot sell the same way to Donald Trump
as he can to Richard Simmons, and vice versa. The product is the same in both sales calls, but in order to close the
sale effectively, the approach and the message would (or
should) be different to each of the four categories.
1.
2.
The Donald Trump—The Direct Type. This buyer is
usually a Type A personality—think “Donald Trump.”
They are usually in a hurry and tend to be very direct in
their conversation. Direct Type buyers are often blunt
and even interrupt the sales representative constantly.
They state their opinions as fact. They are impatient and
demanding, wanting to get to “the bottom line” quickly.
While you want to be direct and specific, provide
alternatives so that the Direct Type buyer can make the
decision to buy. Let this buyer speak and you listen. Do
not go into all the details or try to control the situation.
Ensure he/she “wins.” You must act quickly, because
this buyer type decides fast. Whatever happens, don’t
take issues personally.
The Richard Simmons—The Interpersonal Buyer. This
buyer is very friendly and excitable, often animated—think
“Richard Simmons.” They cannot focus on details and jump
from subject to subject. Because they don’t always have
the ability to listen for long periods, they may ask the same
question several times. Interpersonal buyers are more
interested in forming a relationship than they are in buying.
Schedule time for chatting and let this buyer speak,
giving recognition as appropriate. Talk about people and
feelings. As you converse with this buyer type, move closer
and maintain a positive atmosphere. You want to show how
your product will help to achieve popularity and recognition.
Focus on the people aspects. Do not fail to socialize. Also,
do not set hard restrictions, unless absolutely necessary.
138
3.
The “Aunt Bee”—The Safety or Status Quo Type. These
buyers usually appear calm and do not get easily excited;
imagine speaking with “Aunt Bee” from the old Andy
Griffith show. They listen carefully and ask specific
questions. Completely new ideas/things make these
buyers uncomfortable.
G It is key to slow down your presentation and build
Provide the necessary information that this buyer
Otrust.
needs logically, and secure commitment piece by piece.
RAsk specific questions to find out true needs, and then
support. It is also advantageous to provide
Dprovide
precedents or examples of previous success to reduce
Ouncertainty. Be sincere and do not dominate.
4. The Albert Einstein—The Contemplative Buyer. These
Nbuyers are usually very quiet. They focus on details and
, ask questions. The “Albert Einstein” characters of the
world study specifications and other information carefully.
In fact, they may have even done some research on your
or service prior to your sales call.
Jproduct
When selling to this type, patiently provide facts
Eand plenty of detailed information. Go slowly and do
not invade his or her private space. Avoid talking about
Spersonal issues or small talk. Listen carefully, and then
Sanswer questions calmly and carefully. Be thorough;
remember to include all relevant information, utilizing
I written supporting documentation. Find out what the key
are and focus on them. Don’t move too fast, move
Cissues
too close, or lose patience in providing all the requested
Ainformation. Also, don’t expect decisions right away.
In order to be successful, sales representatives must tailor their approaches and messages very differently to each
L Behavioral Type. Let’s examine the differences below:
Buyer
AsE
the numbers suggest, sales representatives who try to
useI the same “canned” message will be effective only 25
percent of the time because the approach and message will
beG
effective only for the buyer behavior type it was designed
for. The ability to recognize the various behavior types and
H
adapt the sales call appropriately takes training and practice.
Also, just as buyers fall into one of each of these buying
types,
1 so do sellers. More times than not, sales representatives will have to learn (and train) themselves on how to
8 their own behavioral type to the specific prospect
adapt
they’re calling on. Success in the sales arena will increase
7
exponentially by training sales representatives on how
to 1
properly identify the behavioral type of their prospect,
and how to adapt the sales approach and message
B
appropriately.
U
Source: Alan G. Bayham, “Do You Know Who You’re Selling
to?” American Salesman, April 2008, p. 7.
CHAPTER FIVE
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(each player reads only the script for his or her role) gives the person playing
the salesperson the task of making initial entry into the buyer’s firm to present
a new product. Unfortunately, the person role playing the buyer is told in the
script that he or she has no authority to buy and cannot do anything to further
the relationship until the salesperson starts to ask questions relevant to means
and authority to make the purchase. Most salespeople participating in the role
play never solve the dilemma. Sadly, this is a common problem in qualifying
prospects.
5. Does the potential prospect have the financial capability to make the purchase? This
issue is directly related
Gto #4. Obviously, little is to be gained by pursuing a
potential customer who does not have access to the money needed to buy
Oimportant criterion is determining the prospect’s
what you sell. Thus, an
financial status. The credit
R department of your firm may perform this role, or
you may have to personally investigate the prospect’s financial strength. It is
far better to determineDin advance that a prospect cannot afford to buy than to
waste time pursuing someone
who ultimately will not become your customer
O
for this very straightforward reason.
N
Qualifying prospects effectively is fundamental to success in selling. It often
,
involves ranking leads according
to their attractiveness. A prospects might be most
attractive and most worthy of pursuit by the sales force, B prospects next, and
C prospects last. Prioritizing customers is discussed in more detail in Chapter 9.
J
Leadership 5.1 provides insights on four categories of prospects and how a salesperson might best prepare
E for each.
The overall process of moving from leads to prospects to customers is best porS
trayed as an upside-down triangle (see Exhibit 5.1). There are many, many leads,
S
fewer leads that can be successfully
qualified as prospects, and ultimately many
fewer customers.
I
A CRM system as described in Chapter 2 can be of great help in tracking and
C
qualifying leads and ultimately
ensuring that prospects really are likely customers. The database aspect A
of CRM provides bountiful information on potential customers that is readily available to anyone with a laptop computer. By definition
and design, a CRM system tracks the very infor …
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