Professional Selling - MKt-3860, Fall 2019
All written submissions for Assignment 2 are due Friday,October 11th, 2019 by 5:00pm[submitted on Moodle]. The oral debate presentations will be conducted as per the outlined schedule.
2 are due Friday,October 11th, 2019 by 5:00pm[submitted on Moodle]. The oral debate presentations will be conducted as per the outlined schedule.
Weight: 10% of final grade
As outlined in Assignment #1, operate under the assumption that your prospective customer is an established business already purchasing a similar product from one of your competitors.
Section 1, Needs and Gap Identification
The Sales Call/Meeting
Many salespeople "miss-out" on sales, success, revenue and potential deals because they don't plan/prepare properly for their sales calls. As the old saying goes, "who works harder and smarter.... wins"! Look at it like a musician practicing the guitar hours on end, or a hockey player shooting pucks late into the night. Practice and preparation are the keys to success.
Whether you are speaking to your prospect over the phone, digital communications or face-to-face, being prepared for all interactions with prospective clients is crucial in achieving success in sales.Sales call planning is a fundamental aspect of the role - it must be done, and done well. Whether it's a small company or a large company, you need to know who is in the room, who the account is, the objectives of each person in the room, and the objective of the overall company.
#1 Research your prospect and the industry.
#2 Know the prospect's competitors and their competitive environment.
#3 Know your objective for the calland how it fits with your overall plan.
#4 Plan your questions.
#5 Anticipate objections.
Section 2, Negotiation Exercise
Even if the salesperson properly qualified the prospect and was able to manage their expectations precisely, the deal will most likely end up in a negotiation. The sales rep who took the role of a consultant should now take up the role of a negotiator to engineer the deal, defining a win-win agreement. In the midst of all that tension, going back and forth, negotiations can make things go array and you can lose the deal. Using the right skills and tactics, sales reps can turn negotiations into a positive leaving both parties leaving the table content.
Answer these following questions to prepare yourself in the process.
#1. What is your absolute bottom line, the lowest price, maximum discount that you are willing to give to get this business?
a) The best way to prepare for a negotiation is to define clearly your bottom line. What you are willing to settle for and beyond which is unacceptable? When you are compromising price, you are shredding the margin the company should have earned. Explain what the absolute bottom line would be in a worst-case scenario, and why you would expect that price. Anything less should be blindly refused. The use of figures to explain your position is appropriate.
In the worst-case scenario of PH Snowboard we will accept the cost that went through manufacturing plus distribution.
The bottom line for Ph Snowboards is pricing.
Price that we can accept:
Price that we can accept
80 - 130 cm
140 - 170 cm
High end & race
Beyond the above price we will not be able to compromise.
#2. Even though you have confirmed in the pre-call who the decision makers are, how will you determine whom you should be negotiating with?
a) Salespeople make the common mistake of negotiating with people who are not the decision makers. The biggest and basic rule of negotiation is to always negotiate with the decision maker [i.e., the signing authority]. Explain who the prospect's negotiating body is and why? What steps will you take to confirm this information?
The prospect's negotiating bodies are SportCheck and Burton Snowboards which is the two big distributors within Canada and outside. With their growing popularity we reach our consumer directly. The steps to make them our ally are as follows:
- First step: We can give them a commission on the sales of your product.
- Second step: We will offer partnership if the first year of our business is successful with our product.
#3. How should you prepare for the negotiations portion of the sales call and build value to justify the asking price?
a) Being prepared before entering negotiations accounts for 90% of negotiation success. The more and better prepared you are, the more likely the outcome of negotiation is going to be positive. Provide example(s) of what you will do in negotiations. List questions that you expect to be asked and formulate responses for them.
The things that we will do in negotiations are as follows:
- We won't be afraid to ask what we want at the end we want to make money.
- We will try to talk less and listen more so that we can have a clear idea.
- We will not be in a hurry and finish the negotiations.
- We will do our homework before negotiations so that we can put our points.
- We will always aim high so that our outcome will be higher.
The list of the expected questions and their responses are as follows:
- What kind of materials used? About is durability.
Talking about the material, we use the best wood, plastics & metals and our boards are tested by elite athletes. On top of that provide 2 years of warranty.
- How fast we can delivered?
We have tie-up with best delivering companies like DHL and FedEx. So, when ever our distributor wants, we can deliver within 24hrs.
- How can selling our snowboards can help boost their profits?
Our snowboards are specially designed and hand made and talking about the price, we give best value for cost of the board. Our quality is world class and can last longer than 100 of riding.
- What's in it for them?
Our boards are world class and the price is quite reasonable and seeing the craze and popularity of our boards more customers will visit the store which can ultimately help sell other products and increase profits.
- What is the unique selling points of the products?
We also provide after sale services like P-tex, Waxing and we do have financing service for our customers.
b) Before entering the crossfire, build value in your prospect's mind by focusing on the underlying interests of your prospect. If you are able to quantify the values that can be gained through your product/service, convincing the prospect will be easier. Give your price legitimacy by providing prospects with reasonable justifications. Remember, decision makers buy values and benefits, not features. List and explain 5 of the most relevant features of your product to the prospective buyer(s) and the associated values and benefits.
The list and the explanation of 5 of the most relevant features of our product to prospective buyers and the associated values and benefits are as follows:
- Design and tested by the help of dedicated elite athletes
- Weight, length, shape, and material composition carefully considered and tested.
- Handmade boards
- Custom board making
- Unique graphics
- After-sales services like P-Tex and Waxing
#4. Can you offer alternatives to cash discounts that cost less? What will you get in return for discounts?
a) Prospects typically throw in the price towel in every negotiation, demanding discounts and rebates in the price. To counter this, offer prospects with alternatives to cash discounts that cost little or less in comparison. Provide examples of alternatives you can provide that would be of high value to the customer but will not be a direct discount to the price.
b) A straight price reduction is the most expensive discount a company can offer, and the hardest to avoid in a negotiation. Therefore, even if you try justifying the price or offer alternatives to discounts, there will be a deal, where you will have no other option other than discounts. Turn it into a positive. Since you gave up on price, ask something in return. Giving away discounts will invariably hurt your company's bottom line, so make sure you get something in return. Provide examples of what you aim to get in return.
Here are some examples of what you could ask for return:
- Shorter payment terms or prepayment.
- A larger order (up-sell) or fewer deliveries.
- Purchase additional products/services (Cross-sell)
- Opportunities for recurring revenue (business).
#5. Should you ever walk away?a) If so, by walking away you are in essence stopping the sale. Provide three examples of when you would away and detail how you would approach the conversation. b) What are your walk away points?
Recently Asked Questions
- 3. Finally, you will discuss if the pricing strategy is aligned with the messaging strategy in the promotions. For example, if the pricing strategy is premium
- How private do you believe your information is? How often do you notice advertisements tailored to you when casually browsing the internet?
- Which issue is the most important to you, with regards to economic, legal, ethical or social issues from the Ted Talk "Ethical Collecting Data" by Marie