CHAPTER 9 STRENGTHENING THE PRESENTATION Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVES • How can salespeople use verbal tools to strengthen a presentation? • Why do salespeople need to augment their oral communication through tools such as visual aids, samples, testimonials, and demonstrations? • What methods are available to strengthen a presentation? 9-2 LEARNING OBJECTIVES • How can salespeople use visual aids and technology most effectively? • What are the ingredients of a good demonstration? • Is there a way to quantify the salesperson’s solution to a buyer’s problem? • How can salespeople reduce presentation jitters? 9-3 CHARACTERISTICS OF A STRONG PRESENTATION • Keeps the buyer’s attention • Consider the social style of the prospect and adapt the use of communication aids accordingly • Improves the buyer’s understanding • Multiple-sense appeals: Appealing to more than one sense • Increases understanding dramatically 9-4 CHARACTERISTICS OF A STRONG PRESENTATION • Helps the buyer remember what was said • Skillful and well timed presentation is likely to be remembered • Offers proof of the salesperson’s assertions • Most communication tools have proof to back up a salesperson's claim • Creates a sense of value • Product handling suggests its value 9-5 EXHIBIT 9.1 - HOW WE LEARN AND REMEMBER 9-6 HOW TO STRENGTHEN THE PRESENTATION • Use imagination and creativity to make a vivid impression on a customer • Make presentation different and stronger • Strategically select methods and media that addresses the needs of the buyer 9-7 HOW TO STRENGTHEN THE PRESENTATION • Respond to buyer’s unique social style • Expressives - Strong, intense colors and lots of photos, cartoons, fancy fonts, and positive images • Analyticals - Clean and simple, a list of references, and lots of details • Amiables - With people and a relatively slow-moving presentation • Drivers - Crisp professional visuals with bold lettering to highlight important points 9-8 HOW TO STRENGTHEN THE PRESENTATION How many people will attend Which stage of the buying process they are in Strategizing What information they need What type of situation this is 9-9 HOW TO STRENGTHEN THE PRESENTATION Verbal tools • Word pictures and stories • Humor Visual tools • Graphics and charts • Models, samples, and gifts • Catalogs and brochures • Photos, illustrations, ads, and maps 9-10 VISUAL TOOLS • Testimonials: Statements written by satisfied users of a product or service • Effectiveness based on skillful usage • Carefully match satisfied user and prospect • Test results • Tests on the product or service, conducted by the seller’s firm or some third-party organization help strengthen the presentation 9-11 USING MEDIA TO DISPLAY VISUALS • Chose media appropriate for the situation • Portfolio: Collection of visual aids • Video • Laptops, iPad, and other portable devices 9-12 USING MEDIA TO DISPLAY VISUALS • Digital collateral management systems or sales asset management systems: Used to archive, catalog, and retrieve digital media and text • Collateral: Collection of documents that are designed to generate sales • Simplify the collection • Make it possible for salespeople to easily secure and adapt these selling tools for specific situations 9-13 USING MEDIA TO DISPLAY VISUALS • Power point presentations • Use visuals that encourage two-way conversation • Document cameras or visual presenters: Capable of displaying any three-dimensional object without the use of a transparency • Electronic whiteboards: Used when working with customers who prefer to brainstorm an issue or problem • SMART boards or digital easels 9-14 PRODUCT DEMONSTRATIONS • Appeals to the buyer’s senses • For effective demonstrations: • Be prepared and secure a proper place for the demonstration • Check the equipment before beginning the presentation • Get the prospect involved in a meaningful way • Relate product features to the buyer’s unique needs • Make it an integral part of the overall presentation • Keep the demonstration simple, concise, and clear 9-15 PRODUCT DEMONSTRATIONS • Plan for dead time • Time in which the machine is processing on its own • Find out whether the prospect has already seen a competitor’s product demonstration • Find out whether anyone present has used your product before • Probe during and after the demonstration 9-16 HANDOUTS • Written documents provided to help buyers remember what was said • Increase buyer retention of information, especially over longer periods, when prepared well • Contain the conclusion of the presentation 9-17 WRITTEN PROPOSALS • Request for proposal: Document issued by a prospective buyer asking for a proposal • Contains customer’s specifications for the desired product, including delivery schedules • Used when the customer has a firm idea of the product needed 9-18 WRITTEN PROPOSALS • Executive summary: One-or two-page summary that provides: • Total cost minus the total savings • Brief description of the problem to be solved • Brief description of the proposed solution • Describe the current situation in relation to the proposed solution and a budget 9-19 GUIDELINES FOR WRITING PROPOSALS • Writing guidelines • Use polished writing skills and skip buzzwords • Focus on actual results that the prospect can gain from going with your proposal • Presenting the proposal • Convince the prospect about the need for the product • Compare the product and terms of sale with those of competitors 9-20 VALUE ANALYSIS: QUANTIFYING THE SOLUTION • Process of showing the prospect that the cost of the proposal is offset by added value • Common ways to quantify a solution • Value propositions • Cost-benefit analysis • Return on investment • Payback period • Net present value • Opportunity cost 9-21 CUSTOMER VALUE PROPOSITION • Way in which a given product will meet the prospect’s needs • Identifies how the offerings is different from that of competitors, especially the next-best alternative • Should have following features • One or more key features of the product/service complete with external proof • Benefits, both economical and emotional 9-22 CUSTOMER VALUE PROPOSITION • Positioning of your company as the prospect’s long-term partner • Personal problem solver • Should have solid, clear information is critical 9-23 COST–BENEFIT ANALYSIS • Simple cost-benefit analysis: Lists the costs to the buyer and the savings the buyer can expect from the investment • Information needed to calculate savings must be supplied by the buyer • Comparative cost–benefit analysis: Comparing the present situation’s costs with the value of the proposed solution or the seller’s product with a competitor’s product 9-24 RETURN ON INVESTMENT (ROI) • Net profits (or savings) expected from a given investment • Expressed as a percentage of the investment • ROI = Net profits (or savings) Investments • To ensure accuracy, collect data about costs and savings that the buyer can expect 9-25 PAYBACK PERIOD • Length of time it takes for the investment cash outflow to be returned in the form of cash inflows or savings • Calculated by adding up estimated future cash inflows and dividing them into the investment cost • When expressed in years: • Payback period = Investment Savings (or profits) per year 9-26 NET PRESENT VALUE • Discounting the cash flows - Firms calculate the value of future cash inflows in today’s dollars • Net value today of future cash inflows minus the investment • Assesses the validity of an opportunity • Net present value = Future cash inflows discounted into today’s dollars - Investment 9-27 OPPORTUNITY COST • Return on investment earned from a different use of the same investment capital • Successful salespeople: • Identify other realistic investment opportunities • Help the prospect compare the returns of the various options • Never forget that prospects have a multitude of ways to invest their money 9-28 SELLING VALUE TO RESELLERS • Profit margin: Net profit the reseller makes, expressed as a percentage of sales • Inventory turnover: Calculated as: • Annual sales Average retail price of inventory on hand • Measures how fast a product sells relative to how much inventory has to be carried • How efficiently a reseller manages its inventory 9-29 COMPONENTS OF INVENTORY MANAGEMENT SYSTEM • Efficient consumer response (ECR) • Quick response (QR) • Automatic replenishment (AR) • Just-in-time (JIT) • Reduce average inventory and transportation expenses • Make products available when end users want them • Electronic data interchange (EDI): Computer-to-computer transmission of data from a reseller and back 9-30 RETURN ON SPACE • One of the key investment that resellers make • Assessed as investment is sales per square foot or sales per shelf foot 9-31 DEALING WITH THE JITTERS • Know your audience well • Know what you’re talking about • Prepare professional, helpful visuals • Be yourself • Get a good night’s sleep • Presentations to groups, feed off the energy and enthusiasm of several friendly, happy-looking people in your audience 9-32 DEALING WITH THE JITTERS • Recognize the effect of fear on your body and reduce the accompanying stress manifestations • Visualize the audience as friends • Think of previous success • Realize that everyone gets nervous before a presentation • Practice well 9-33