Study Guide Test 1 9/29/15 9:51 PMClass 1, Part 1I. Introduction to Personal Selling

A. Perceptionso 95% negative perceptions in a study

B. Why? History and Barrierso Industrial Revolution

Supply and demand were equalo Great Depression

Shock to most companies So many products, no money to buy 1930-1970 were the dark ages or professional selling people remember the negative more than the positive

o so few barriers to entry don’t need to be a graduate or have any qualifications lot of competition because so many people are in sales

(every industry)o in industries with bad reputations, those that do well do VERY

well C. Can it be changed?

o Would take generations to change the stereotypeII. Selling and Salespeople

A. Why learn about it?

o 1. Everybody sellso 2. Role in marketing communications

conduits connection between company and client face of the company

o 3. Role in marketing mix interactive marketing (persuasion) more valuable for the product, the more need for a

sales person B. What do they do?

o 1. Sello 2. Service

farmer’s mentality – delayed gratificationo 3. Provide information

between company and clients C. Describing Sales Jobs

o 1. New vs. Continuing sales people get more profit from new customers (more

new people are hard to find)o 2. Order takers vs. Order makers

order taker – typically works behind a cash register order maker – acts like a small business owner

o 3. Products vs. Services good at one, typically bad at the other

VERY different skill sets required for eacho 4. Field vs. Inside

field sales people go to their clients more profitable – lower overhead

inside people have clients come to themo 5. Consumer vs. Business

consumer sell to final user business sells to resellers

D. Characteristics of Successful Salespeopleo 1. Motivated

externally motivated money, power, recognition

internally motivated performs beyond expectations tend to do better in life than external tend to have externals working for them

o 2. Dependable your word is bond, no exceptions under promise, over deliver

o 3. Ethicalo 4. Customer and Product Knowledge

o 5. Flexible function of maturity understanding the world is not perfect

o 6. Communication Skills someone who can take a complex concept and break it

down so anyone could understand it bad communicators eat up time

o 7. Emotional Intelligence anticipate human behavior before it happens (human

moves) “you studied the watch, while I studied you” people never change their minds, they make new

decisions based off of new information E. Born or Made?

o Combination, but more towards madeo Talk about the client (people love to talk about themselves)

F. Rewardso Independence

Control their own calendars People who are self-employed who cannot manage their

time will eventually work for someone else who knows how to manage theirs

o Responsibility Responsibility is not liability Control your own destiny

o Financial

Best salesman can make as much, if not more than, the CEO of the company

o Sales Management Top sales managers were typically not the top sales

people If you are great, you can’t translate it to someone else

Class 1, Part 2I. Building Partnering Relationships

A. Types of Relationshipso Market Exchanges

Typically a one-time transaction Worst type of sales relationship (convenience stores)

o Functional Relationship Attach ourselves to vendors (Publix – you are satisfied

and know where everything is located in the store)o Strategic Partnership

Strongest relationship – goal of every sales rep You feel like you’re on their payroll Goes from functional to strategic

B. 5 Characteristics of a Good Sales Relationshipo 1. Trust (DCCHL)

D – dependable (always be there) C – competent (knows what to do)

C – customer oriented H – honest L – likable

o 2. Open Communication ability to tell someone anything without repercussions lying will get you no respect and it expends

unnecessary energy people hate giving bad news

o 3. Common Goals / Similar Interestso 4. Commitment to Mutual Gain

can accomplish more together than separatelyo 5. Organizational Support

other people believe in the relationship other than the 2 parties involved in it

C. Evolution of Personal Sellingo 1. Production

people will buy if its readily availableo 2. Product

people will buy based on the features availableo 3. Sales

people will buy based on the amount of promotiono 1-3 are not based on the customero 4. Marketing

break down into target markets and sell through those same goal as before

o 5. Partnering fewer clients, better service

Commodity – something sold at a price (oil, gold) 80/20 rule – customer speaks 80% of the time, sales person speaks

20% of the time

Class 2, Part 1I. Ethical Issues in Selling

Why the Dilemma?o Sales people report to 3 entities

1. Company 2. Customers 3. Themselves

A. Relationships with Customerso Deception – intentional lying

“omission” – not telling the whole trutho Bribes, Gifts, and Entertainment

Gifts/bribes don’t get you customers Entertaining – be physically present, check industry for

max amount of spending, use common sense (if it feels excessive, it probably is)

o Special Treatment

A client benefitting at the expense of another client Never prejudge a situation

o Confidential Information Most people like talking to good listeners who are

strangers When you hear something in confidence, do NOT tell

because your career will die slowlyo Backdoor Selling

When you establish a relationship with a company, it is unethical to go against that relationship

B. Relationships within the Companyo Expense Accounts

Forging expense accounts – lying about amounts for personal profit

1. Make money from customers, not company 2. Auditors look through expense reports all day (you

WILL get caught) 3. When people get away with stuff, they usually tell

someoneo Reporting Work-Time Activities

Lying about the number of clients, sales, etc. Wastes bosses time

o Switching Jobs Do NOT bad mouth previous employers (negative

energy) Reflects on your decision making ability for

working there in the first place Clients follow good sales people, but clients aren’t yours

to contact once switched jobs / companies unless: You’re self-employed

Partner with equity Firm goes bankrupt Independent contractor

Do NOT copy confidential info or carry materials over to new company

C. Relationships with Colleagueso Sexual Harassment illegal

2nd fastest growing litigation Work should be a sanctuary Don’t date someone you work with

o Taking Advantage of Other Salespeople Cowardly Don’t take people’s clients People hire others with the same ethics as themselves

D. Relationships with Competitorso Must respect / admire competitiono Focus on what you can do, not what others cannot do

Class 2, Part 2I. Buying Behavior and the Buying Process

Derived vs. Direct Demando Derived demand – secondary demand behind it

Tirescars

Companies use derived demand Customers use direct demand – end user

Companies and Consumers buy the same way except:o 1. Developing product specifications

businesses buy on spec consumers buy on availability

o 2. Placing an Order and Receiving the Product businesses reorder (automatic) consumers make another purchase (return to the store)

A. Steps in the Buying Processo Recognizing a Need or Problemo Defining the type of product neededo Developing product specificationso Searching for qualified supplierso Acquiring and analyzing proposalso Placing an order and receiving the producto Evaluating product performance

B. Types of Organizational Buying Decisionso New task – new product, new vendoro Straight rebuy – same product, same vendoro Modified rebuy – change one, but not both factors

C. Buying Center – all the people involvedo User – uses producto Influencer – people not on payroll who assist in the decisiono Gatekeeper – control flows of info to the decidero Decider – formal or informal buying authority

Class 3, Part 1I. Introduction to Personality Types

No one can agree on how many personality types there are No one is 100% of a personality type, we all have a dominant trait These 4 personality types are represented equally across society

(all 25%)o 1. Analytical

everyone buys from emotion, but they use logic the most

they like numbers and percentages typical professions: accounting, finance, engineering,

most scienceso 2. Amiable

moved by relationship itself piggy back on salesman’s confidence in their

recommendations typical professions: nursing, caretaker, nonprofit,

teachers give up trust quicker than everyone else, but take it

back the quickest tooo 3. Steady Relator

moved by status and image they must be/have the newest and the best constantly comparing everything heavily influenced by celebrities most competitive and externally motivated sales people typical profession: athlete

o 4. Driver must be in control and not wasting time – immediate

answers typical profession: CEO no one is born a driver, typically starts amiable with a

loss of faith or trust they make the best, most loyal clients because they

always honor their wordII. How People Interpret Information

1. Visual seeing things 2. Auditory hearing things

o paint word pictures for themo tell a multi-part story, if they keep up then they are auditory

3. Kinetically touching or feelingo very infrequent

no correlation between personality type and interpretation it is irrelevant what the sales person’s natural personality type is

because they must adapt to the customer’s type compensation technique – cant handle the objection, so you try to

minimize it in the big picture to make it seem less important

III. Communication Principles A. Verbal Messages

o Use of words Characteristics

1. Abstract vs. concrete 2. Emotional vs. neutral

painting word pictures they feel like they are experiencing it explain images in your head

tailoring words to the customer visual – “demonstrative”, “observe” auditory – “Announce”

B. Voice Characteristicso Speech rate

Average is 140 words per minute Until you can figure out how fast someone is listening,

speak fast rather than slow Speaking too slow can be condescending Always can repeat yourself

o Loudness NO microphone Calibration

o Inflection Monotone – boring

People will adapt but the message gets destroyed Must change tone

o Articulation Words that are difficult to pronounce, slow down and hit

every syllable C. Questions

o Open-ended: cannot be answered with “yes” or “no” Using “why” demands an explaination Used to collect information Don’t use more than 3 in a row (fatigue factor)

o Close-ended: only answered “yes” or “no” Using “can” typically or “is” To confirm information Seal position on the mountain so we don’t go backwards Don’t ask more than 3 in a row

o Spacing Switching between open- and close-ended questions Never more than 3 in a row of one type

o Leading A question you already have the answer to (rhetorical)

BAD in selling D. Listening

o Reactive – listen then respondo Proactive or active listener

1. Hear what’s being said 2. Filter out important info 3. Formulate a response maximizes rebuttal time

E. Repeating Infoo Word-for-word no changes

F. Clarifying Infoo Take someone else’s words and put them into your own

personality typeo Weakness in pro selling (must do this silently)

G. Summarizing Infoo Done to build emotion

H. Silenceso 3 running clocks

1. Amount of actual silence 2. How long it appears to the sales person (much

longer) 3. How long it appears to the person who went quiet

(much shorter)o shut up during silences – don’t break their train of thought

Class 3, Part 2I. Non-Verbal Communication

A. Body Languageo 1. Angle

rocking back and forth (north/south) positive shifting side to side (east/west) negative leaning forward positive leaning back negative

o 2. Face watch their eyes eyes get bigger when interested (pupils dialate) staring straight at you passively receiving info (not

interpreted yet) turn head or eyes to the right examining logic of what

was just said turn head or eyes to the left examining emotion staring straight down intensely concentrating

positive blushing tension / embarrassment tightness in cheeks, jawline, or neck tension or anger

o 3. Arms greater arm movement stronger opinion

arms crossed extremely negativeo 4. Hands

open and relaxed positive clenched negative

o 5. Legs men and woman not wearing skirts, uncrossed legs

positive crossed legs and turned body negative

crossed legs alone is not negative B. Sending Messages Non-Verbally

o 1. Face smile: don’t practice it, must be natural

o 2. Eye Contact a MUST perceived as having something to hide when no eye

contact do not stare

o 3. Hand Movements don’t point at people aggressive

o 4. Posture people interpret the product as you carry yourself overly stiff inflexible product slouched lazy or underperforming product

o 5. Matching

copy body language good 1. Do not match bad body language 2. Don’t catch up body language 3. First time will be bad – won’t know how to do it

o 6. Handshakes and Touching never extend hand first (some people don’t like

touching) let people dictate to you how they want to be greeted

C. Appearanceo 1. Dress professionally neutral

shouldn’t pull from message in either directiono 2. If you have multiple meetings in one day, default to the

most conservative outfitII. Income Exercise

Car sales (commission based job)o Annual income: $100,000o Must know:

Average commission per sale: $1,000 Closing ratio: 10% Work weeks per year: 50

1. Annual income / work weeks per year100,000/50=2,000

2. Answer from #1 / average commission per sale

2,000/1,000=23. Answer from #2 / closing ratio

2/.10=20 clients per week to earn an annual salary of $100,000

Cases1. Justin Diamond

i. Taking the course in personal selling – his parents don’t want him to be a sales person

2. New Buyer, Old Accounti. School board in CA got new members and they didn’t want to

continue with suppliers of 10 years because they no longer had a relationship

3. One Too Manyi. Monahans’s biggest client was Damon, but they are producing

an add for their competitor Haddock4. Tom Winger

i. Predecessor died so Tom takes over his account and Child’s World wants a $500 bribe to put in an order

5. Coffee Delightsi. Trying to sell decaf coffee to Giant Markets, but the buyer is not

responding to the seller’s strategy, but seller does not change her ways

6. Staplesi. Chen accuses salesman of being 15 minutes late; appointment

went downhill from there and Doering did not even end up presenting to the potential buyer

7. Cable Visioni. Quincy is not adapting to Ross’ personality type and gives very

vague answers to a driver so he tells her to get back to his assistant when she gets specific info

Videos

1. Roerigi. Nick Porella is a pharma rep

2. How Not to Selli. Ignores the rule of 80/20 selling dictation machines

3. Ethics: Knocked over pencils trying to peak at information while lying in a promise to a customer

4. Ethics: Toy store with the unethical manager trying to sell an old product by lying to customers who think its new

5. Ethics: Bad marriage video where couple argues about allowing a fur company to advertise through her company

6. 2 Part Trade Show Videoi. company ICX wanting to do trade show for their new product

Solstice; Howard (VP of Marketing) is making the decision on which company they will use

ii. 3 sales people competing are Sally, Jeff, and Michael-Sally: blew off his joke, gives multiple visuals at a time, finished meeting on the phone, doesn’t leave when Howard gets a call-Jeff: doesn’t listen to Howard’s concerns or suggestions, Jeff pushed Howard’s questions to the end of the meeting, interrupts and sucks the energy out of the room-Michael: lays out visuals one-by-one, mentions marketing relationship, controls the meeting in a positive way and doesn’t act like he already has the job, picks up interpreting skills quickly and uses visuals when needed

9/29/15 9:51 PM

9/29/15 9:51 PM