Chapter 8

Carefully Select Which Sales

Presentation Method to Use

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
ABC’s of Selling, 10/e
 Main Topics
 The Tree of Business Life: Presentation
 Sales Presentation Strategy
 Sales Presentation Methods–Select One Carefully
 The Group Presentation
 Negotiating So Everyone Wins
 Sales Presentations Go High-Tech
 Select the Presentation Method, Then the
Approach
 Let’s Review before Moving On!

8-2
 Sales Presentation Methods

 Master the art of creating effective sales

presentations
 Have fun presenting your product

 Select your presentation method based on:

Prior knowledge of customer

Sales call objective
Customer benefit plan

8-3
 (3) Approach - (4) Presentation

The Third Step in the Sales Process (Approach)

is the First Step in the Sales Presentation

8-4
 The Sales Presentation

 Completely and clearly explains all aspects of the

salesperson’s proposition as it relates to a buyer’s
needs

8-5
There are Several Sales Presentation Methods
and You Must Select One According to Your:

 Prior knowledge of the customer

 Sales call objective
 Customer benefit plan

8-6
 The Sales Process

 A sequence of actions taken by the salesperson

which leads toward the customer taking a desired
action and ends with follow-up to ensure purchase
satisfaction.

8-7
Exhibit 8-1: The Third Step in the Sales Process
is the First Step in the Sales Presentation
 The sales presentation method
determines how you open your
presentation

8-8
 Sales Presentation Strategy

 Salespeople face numerous situations:

 Salesperson to buyer
 Salesperson to buyer group
 Sales team to buyer group
 Conference selling
 Seminar selling

8-9
Sales Presentation Methods–Select
One Carefully
 The sales presentation involves a
persuasive vocal and visual explanation
of a business proposition.

8-10
Sales Presentation Methods–Select
One Carefully
 The four sales presentation methods are:
1) Memorized
2) Formula
3) Need-satisfaction
4) Problem-solution
 The basic difference between the four methods
is the percentage of the conversation controlled
by the salesperson.

8-11
 Sales Presentation Methods—
Select One Carefully
 Four Sales Presentation Methods

1. The Memorized Sales Presentation (canned)

 Salesperson’s role is to develop initial stimulus into an
affirmative response to an eventual purchase request.
2. The Formula Presentation (persuasive selling)
 The salesperson follows a less structured, general outline in
making a presentation, allowing more flexibility and less
direction (AIDA). Controls conversation during sales talk;
especially at the beginning.
 Sales Presentation Methods—
Select One Carefully cont…

3. The Need-Satisfaction Presentation

 Designed as a flexible, interactive sales
presentation, yet the most challenging and
creative form of selling
 Three Phases:
1. Need-development phase
2. Need-awareness phase
3. Need-fulfillment phase
Sales Presentation Methods—
Select One Carefully cont…
4. The Problem-Solution
Presentation
 Selling highly complex or technical
products
 It may take several sales calls to develop
a detailed analysis
 A flexible, customized approach to
involving an in-depth study of a prospect’s
needs
Exhibit 8-2: The Structure of Sales
Presentations

8-15
 Sales Presentation Methods—
Select One Carefully
1. The Memorized Sales Presentation
Based on one of two assumptions:
 The prospect’s needs may be stimulated by direct exposure
to the product through the sales presentation.
 The prospect’s needs have already been stimulated because
the prospect has made the effort to seek out the product.
 National Cash Register Co. (NCR)
 Exhibit 8-3: Participation Time by Customer and
Salesperson During a Memorized Sales Presentation

8-17
 Why Choose the Memorized (Canned)
Sales Presentation Method?
 Because it:
 Ensures the salesperson gives a well-planned
presentation
 Ensures all of the company’s salespeople discuss the

same information
 Both aids and lends confidence to the inexperienced

salesperson
 It is effective when:
 Selling time is short, as in door-to-door or telephone
selling
 The product type is non-technical – such as books,
cooking utensils, or cosmetics
8-18
 Why Not to Choose the Memorized
(Canned) Sales Presentation Method

 Because it:
 Presents FABs that may not be important to the buyer
 Allows for little prospect participation
 Is impractical to use when selling technical products that
require prospect input and discussion
 Requires the salesperson to proceed quickly through the
sales presentation to the close, resulting in several closes
or requests for the order, which may be interpreted by the
prospect as high pressure selling
 Interruptions – salesperson may get off-track; forget

8-19
Exhibit 8-4: Dyno Electric Cart
Memorized Presentation

8-20
Exhibit 8-4: Dyno Electric Cart
Memorized Presentation, cont...

8-21
 Sales Presentation Methods—
Select One Carefully
2. The Formula Sales Presentation
 Often referred to as the persuasive selling presentation
 Salesperson follows a less structured, general outline
allowing more flexibility and less direction
 AIDA – AIDCA
 Straight Rebuy situations
 The SmithKline Beecham products example: “The 10-step
Productive Retail Sales Call”
Exhibit 8-5: Participation Time by a Customer and
Salesperson During a Formula Sales Presentation

8-23
The 10-Step Productive Retail Sales Call

Step Number
1. Plan the call
2. Review plans
3. Greet personnel
4. Check store
conditions
5. Approach
6. Presentation
7. Close
8. Merchandising
9. Records and reports
10. Analyze the call

8-24
The 10-Step Productive Retail
Sales Call

8-25
Exhibit 8-6: The 10-Step Productive
Retail Sales Call, cont...

8-26
Exhibit 8-7: A Formula Approach
Sales Presentation

8-27
 Why Choose the Formula Sales
Presentation Method?
 Because you:
 Are contacting similar prospects in similar situations
 Know something about the prospect

 Have called on the prospect in the past

 Want to ensure all information is presented logically

 Want to have reasonable amount of buyer-seller

interaction

8-28
 Why Choose the Formula Sales
Presentation Method?, cont…
 Because it allows for smooth handling of
anticipated questions and objections
 Examples of product types that work well with this
method are:
 Consumer goods
 Pharmaceutical goods

8-29
Why Not to Choose the Formula Sales
Presentation Method?
 Because you:
 Do not know the prospect’s needs
 See a need for the prospect to talk more

 Have a complex selling situation such as:

 Selling a technical product

 Selling to a group

8-30
 Sales Presentation Methods—
Select One Carefully

3. The Need-Satisfaction Presentation

 The most challenging and creative form of
selling
 Interactive sales presentation
 Need-Satisfaction Format
 The Need-Satisfaction
Presentation’s Phases
 Need-development Phase
 Salesperson allows and encourages the prospect to
discuss his needs
 Need-awareness Phase
 Salesperson takes control of the conversation by
restating the prospect’s needs to clarify the situation
 Need-fulfillment Phase
 The salesperson shows how her product will satisfy
mutually agreed-upon needs

8-32
 Exhibit 8-8: Participation Time by Customer and
Salesperson During Need-Satisfaction and Problem-Solution
Sales Presentations

8-33
Exhibit 8-9: A Need-Satisfaction
Presentation

8-34
Exhibit 8-9: A Need-Satisfaction
Presentation, cont...

8-35
 Why to Choose the Need-Satisfaction
Sales Presentation Method
 Because you:
 Need a flexible, interactive sales presentation
 Need to uncover needs by asking questions
 Need the prospect to talk about his needs
 Use this method the first time you call on a
prospect.
 Should you have to come back a second
time, you would use the formula sales
presentation method.
8-36
 Why to Choose the Need-Satisfaction
Sales Presentation Method, cont…
 Examples of product types that work well
with this method are:
 Financial services
 Systems
 High priced goods/services such as vehicles, real
estate, computer systems, industrial equipment

8-37
 Why Not to Choose the Need-
Satisfaction Sales Presentation Method
 Because you:
 Need more control over the conversation
 Feel should not ask too many questions

 Are new to the sales profession

8-38
 Sales Presentation Methods—
Select One Carefully

4. The Problem-Solution Presentation

 Flexible, customized approach involving an in-
depth study of a prospect’s needs
 May require several sales calls to develop a
detailed analysis
 Usually consists of six steps
 The Problem-Solution
Presentation’s Six Steps
Step 1 - Convincing the prospect to allow the
salesperson to conduct the analysis
Step 2 - Making the actual analysis
Step 3 - Agreeing on the problems and determining
that the buyer wants to solve the problem
Step 4 - Preparing the proposal for a solution to the
prospect’s needs
Step 5 - Preparing the sales presentation based on
the analysis and proposal
Step 6 - Making the sales presentation
8-40
Exhibit 8-8: Participation Time by Customer and Salesperson
During Need-Satisfaction and Problem-Solution Sales
Presentations, cont…

8-41
 Why to Choose the Problem-
Solution Sales Presentation Method
 Because you:
 Are selling highly complex or technical products
 Are required to make several sales calls to develop a
detailed in-depth analysis of a prospect’s needs
 Need a flexible, customized presentation based on
findings

8-42
What Is the Best Presentation Method?
 Memorized – short time simple product
 Formula – repeat purchases; when you know
prospect’s needs
 Need-Satisfaction – need to gather information
from prospect first
 Problem-Solution – high-cost tech products;
several calls and business proposal
 What Is the Best Presentation Method?

 Memorized Each of these methods

 Formula is the best one when
 Need-satisfaction properly matched with
the situation
 Problem-solution

8-44
 Exhibit 8-10: Important Characteristics
of Types of Sales Calls
Characteristics Memorized (Structured) Formula (Semistructured) Need-Satisfaction (Unstructured) Problem-Solution (Customized)
Relationship TransactionalRelationship Partnering Partnering Partnering

When Used New customer door-to- Repeat customer New customer, New customer;
door; telesales new opportunity new opportunity

Opening Canned Reminder of past status Questions Request for study

Presentation Time Minutes Half hour(s) Day(s) Week(s)

Multiple Calls? No Sometimes Frequently Always

Type of None Several Variables Multiple Variables ComplexScript

Negotiations

Flexibility None Modest No script No script

Assumed Already established, Already established Not established, Not known

Interest Level or can be generated or not known

Prior Contact Not usually Usually Not necessarily Not necessarily

with Buyer?

Type Product Trivial; simple Simple; previously sold Industrial/Technical Complex

Sample Product Vegetable dicer, Premium cable channel Home entertainment center, Internet network,
warehouse system
vacuum cleaner, consumer goods, cars computer, real estate company insurance
cosmetics

Salary ($) 30-50K 40-70K 50-90K 80-200K

8-45
 The Group Presentation
 Either you or your team presents the proposal to a
group of decision makers.
 The flexibility of the presentation depends on size:
 The larger the group, the more structured your
presentation
 You can structure the presentation and provide a
question-and-answer period at the end or during the
presentation

8-46
 The Group Presentation, cont…

 Give a proper introduction

 State your name, company, and proposal
 Establish Credibility
 Give a brief history of your company
 Provide an Account List
 Have copies of an account list available
 State your Competitive Advantages
 Tell the group where your company stands relative to
the competition

8-47
 The Group Presentation, cont…

 Give Quality Assurances and Qualifications

 State Guarantees in the beginning
 Cater to the Groups Behavioral Style
 Determine the overall dominant style in order to hold
their attention
 Get people involved
 The proposal
 No prices
 Summarize Benefits

8-48
Negotiating So Everyone Wins

8-49
 Negotiating So Everyone Wins

 There are many negotiating styles-

Cooperative
Competitive

Attitudinal

Organizational

Personal

 The experienced sales person will negotiate in a

way that achieves satisfaction for both parties

8-50
Negotiating So Everyone Wins, cont…

 Phases of Negotiation
 Planning- know how your company compares with the
competition.
 Meeting- build a relationship that eases the negotiation
process.
 Studying- look for benefits you can provide.

 Proposing- what you do in the presentation sets the

stage for what may come later.

8-51
 Sales Presentations Go High Tech

 Videos
 CD-ROMs
 Satellite conferencing
 Computer hardware and software

8-52
 Select the Presentation Method,
Then the Approach
 Know which method to use before developing the
presentation
 Plan the presentation
 Select the approach/opening

8-53
 Exhibit 8-11:The Parallel Dimensions
of Selling
Discussion Sequence Selling Process Buyer’s Mental Steps
Prospecting Money
Discuss Product Authority
Show Feature Desire
Explain Advantage Preapproach
Lead into Benefit
Let Customer Talk
Approach Attention
Interest
Present Marketing Plan
Availability, Delivery, Presentation
Guarantee, Merchandising, Desire
Presentation Installation, Maintenance,
Discuss Product Promotion, Training, Warranty Trial Close
Present Marketing Plan
Explain Business Proposition
Suggest Purchase Determine Objections
Explain Business Prop
List Price, Shipping Cost,
Discounts, Financing, ROI, Meet Objections Conviction
Value Analysis

Trial Close

Suggest Purchase Close Action

Product, Quantity, Features, (Purchase)
Delivery, Installation, Price
Follow-up & Service

8-54
 Let’s Review Before Moving On!

 It’s important to know that:

 Parallel dimensions interact
 Discussion sequence
 Selling process
 Buyer’s mental steps
 Discussion sequence

8-55
 The Golden Rule Makes Sense

 Its use sets you apart from all of the other

salespeople who only want to make a sale and a
fast dollar
 Treat your prospects and customers as your
business neighbors

8-56
 Summary of Major Selling Issues
 You must master the art of giving a good sales
presentation
 The sales presentation method selected should be
based on prior knowledge of the customer, your
sales call objective, and your customer benefit plan
 Show that you have a right to present your product
because it has key benefits for the prospect
 Many different presentation methods are available
 There is no one best method; each one must be
tailored to meet the particular characteristics of a
specific selling situation or environment
8-57