personal selling

MAR 4400 Personal Selling

Assignment #1

PLEASE WRITE YOUR NAME:

INSTRUCTIONS:
After watching the video ICX – Personal Selling: Helping People Solve Problems.

(http://online.fiu.edu/videos/?vivoId=8a1f51171d0b4cd8abd61d98ebee80ef

Please answer each of the questions below. PLEASE WRITE CLEARLY.

This assignment is worth $20. Use your textbook to answer the questions.

1. What kind of personal selling approach does Michael use (Chapter 1, pages 11-16)? Explain why.

2. What classification or type of sales job does Michael have (Chapter 1, pages 19-21)? Explain why.

3. Name three (3) qualifications or skills that Michael strongly displayed (Chapter 1, pages 21-22). Give examples of how he displayed each one.

4. Describe three (3) trust builders that Michael displayed (Chapter 2). For each, give an example of what he did.

5. Describe three (3) knowledge bases that Michael used to help build trust (Chapter 2). For each, give an example of what he did.

6. Describe ICX’s Needs Gap (Chapter 3, pages 57-58). What’s the actual state? Desired state?

7. Describe the type(s) of buyer needs that ICX had (Chapter 3, pages 57-59): functional, situational, social, psychological, and knowledge.

8. What steps of the organizational (business) buying decision process (Figure 3.1) were actually observed in the video?

Step	What Did You Observe?
1. Recognition of Problem
2. Determination of Characteristics
3. Description of Characteristics
4. Search/Qualify Potential Sources
5. Acquisition & Analysis
6. Evaluation of Proposals
7. Selection
8. Performance & Feedback

8. What type of purchasing decision is illustrated (Chapter 3, pages 67-69)? Explain your answer.

9. What are the different roles of the buying team (users, initiators, influencers, gatekeepers, deciders, purchasers) – (Chapter 3)? Then what are their primary communication/social styles?

Role	Role/Responsibilities	Primary Social Style
Michael	Salesperson – No need to complete this section
Margo (CEO)
Bill (Sales VP)
Jennifer (CFO)
Howard (Project Head)

THOMAS N. INGRAM
Colorado State University

RAYMOND W. LAFORGE
University of Louisville

RAMON A. AVILA
Ball State University

CHARLES H. SCHWEPKER JR.
University of Central Missouri

MICHAEL R. WILLIAMS
Oklahoma City University

TRUST-BASED PROFESSIONAL SELLING

SELL6

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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SELL6
Thomas N. Ingram, Raymond W. LaForge,
Ramon A. Avila, Charles H. Schwepker Jr.,
Michael R. Williams

Senior Vice President, Higher Ed Product,
Content, and Market Development: Erin Joyner

Product Manager: Heather Mooney

Sr. Content Manager: D. Jean Bora

Product Assistant: Lucia Hermo del Teso

Marketing Manager: Andrew Miller

Marketing Coordinator: Rachel Treinen

Sr. Designer: Bethany Bourgeois

Cover Image: ©Digital Vision/Getty Images RF

Intellectual Property Analyst: Diane Garrity

Intellectual Property Project Manager:
Nick Barrows

Production Service: MPS Limited

Printed in the United States of America
Print Number: 01 Print Year: 2019

BRIEF CONTENTSSELL6
1 Overview of Personal Selling 2
2 Building Trust and Sales Ethics 26
3 Understanding Buyers 48
4 Communication Skills 82
5 Strategic Prospecting and!Preparing for Sales Dialogue 108
6 Planning Sales Dialogues and Presentations 126
7 Sales Dialogue: Creating and Communicating Value 148
8 Addressing Concerns and Earning Commitment 170
9 Expanding Customer Relationships 192
10 Adding Value: Self-leadership and Teamwork 216

Endnotes 242
Index 245

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INGRAM / LAFORGE / AVILA / SCHWEPKER / WILLIAMS

iiiBrief Contents

3 Understanding Buyers 48
3-1 Types of Buyers 50

3-2 Distinguishing Characteristics of!Business
Markets 50

3-3 The Buying Process 53

3-4 Types of Buyer Needs 55

3-5 Procedures for Evaluating Suppliers
and!Products 60

3-6 Understanding Postpurchase Evaluation
and the Formation of Satisfaction 64

3-7 Types of Purchasing Decisions 65

3-8 Understanding Communication Styles 68

3-9 Buying Teams 72

3-10 Engaging Customers 74

4 Communication Skills 82
4-1 Sales Communication as a Collaborative Process 85

4-2 Types of Questions Classified by Amount and Specificity
of Information Desired 87

Types of Questions Classified by Strategic Purpose 87

4-3 Strategic Application of Questioning in Trust-Based
Selling 89

4-4 ADAPT Questioning System 90

Using Di”erent Types of!Listening 96

4-5 Active Listening 97

4-6 Understanding the Superiority of Pictures!Over
Words 100

4-7 Nonverbal Communication 101

1 Overview of Personal Selling 2
1-1 Personal Selling Defined 3

1-2 Trust-Based Relationship Selling 5

1-3 Evolution of Professional Selling 7

1-4 Contributions of Personal Selling 8

1-5 Alternative Personal Selling Approaches 10

1-6 The Trust-Based Sales!Process 15

1-7 Sales Careers 16

CONTENTS

2 Building Trust and Sales Ethics 26
How to Establish Trust 26

2-1 What Is Trust? 29

2-2 Why Is Trust Important? 30

2-3 How to Earn Trust 31

2-4 Knowledge Bases Help Build Trust and!Relationships 35

2-5 Sales Ethics 41

Integrity Model Evaluation:
Can my prospect trust me with con!dential information?
Am I truthful with my prospects and clients?
Do I recommend what is best for my customers?
Do I know what I am talking about?
Do I show up on time for my appointments?
Do I give my employer an honest day’s work?

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iv Contents

5 Strategic Prospecting and!Preparing
for Sales Dialogue 108

5-1 The Importance and Challenges of!Prospecting 110

5-2 The Strategic Prospecting
Process 110

5-3 Prospecting Methods 112

5-4 Developing a Strategic Prospecting Plan 118

5-5 Gathering Prospect Information to Prepare for Sales
Dialogue 120

6 Planning Sales Dialogues
and Presentations 126

6-1 Customer-Focused Sales Dialogue Planning 127

6-2 Sales Communications Formats 128

6-3 Sales Dialogue Template 135

6-4 Engaging the Customer 144

7 Sales Dialogue: Creating and
Communicating Value 148

7-1 E”ective Sales Dialogue 149

7-2 Encouraging Buyer Feedback 150

7-3 Creating Customer Value 152

7-4 Interesting and Understandable
Sales Dialogue 153

7-5 Engaging and Involving the Buyer 157

7-6 Supporting Product Claims 161

7-7 Group Sales Dialogue 162

8 Addressing Concerns and Earning
Commitment 170

Resistance Busters 170

Addressing Concerns 173

8-1 Anticipate and Negotiate Concerns
and Resistance 173

8-2 Reasons Why Prospects Raise Objections 173

8-3 Types of Sales Resistance 175

8-4 Using LAARC: a Process for Negotiating Buyer
Resistance 178

8-5 Recommended Approaches for Responding
to Objections 180

8-6 Securing Commitment and Closing 183

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Spending time with
the best prospects is
one of the keys to a

salesperson’s success.

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9 Expanding Customer
Relationships 192

9-1 Assess Customer Satisfaction 194

9-2 Harness Technology to!Enhance Follow-up
and Buyer–Seller Relationships 196

9-3 Ensure Customer Satisfaction 199

9-4 Expand Collaborative Involvement 206

9-5 Work to Add Value and Enhance Mutual
Opportunities 207

10 Adding Value: Self-leadership
and Teamwork 216

10-1 E”ective Self-Leadership 218

10-2 Working with Di”erent!Levels and!Types
of Goals 220

10-3 Account Classification 222

10-4 Establishing Territory Routing Plans 225

10-5 Stage Four: Tapping Technology
And Automation 229

10-6 Increasing Customer Value Through Teamwork 233

10-7 Building Teamwork Skills 237

Endnotes 242
Index 245

vi Contents

1 Overview of Personal Selling

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LEARNING OBJECTIVES
After completing this chapter, you should be able to:

1-1 De!ne personal selling and describe its unique
characteristics as a marketing communications tool.

1-2 Distinguish between transaction-focused traditional
selling and trust-based relationship selling, with the latter
focusing on customer value and sales dialogue.

1-3 Understand sales professionalism as a key driver in the
continued evolution of personal selling.

1-4 Explain the contributions of personal selling to society,
business !rms, and customers.

1-5 Discuss !ve alternative approaches to personal selling.

1-6 Understand the sales process as a series of interrelated
steps.

1-7 Describe several aspects of sales careers, types of selling
jobs, and the key quali!cations needed for sales success.

In the current business environment, buyers are under intense pressure
to solve problems, realize opportunities, and cut costs. They are cautious,
risk-averse, and have an abundant amount of information about
potential!suppliers for the products they purchase. Further, they hate
to!waste time in unproductive meetings with salespeople. This means
that successful salespeople must discard high-pressure sales “pitches” in
favor!of a customer-oriented sales approach. Salespeople must be capable
of establishing dialogue with customers to focus on the customer’s needs
and situation before making a purchase recommendation. According to
a leading sales consulting firm, customers have little interest in meeting
with “talking brochures,” or salespeople that merely dispense information.
Salespeople must adapt to customer’s level of knowledge and information-
gathering preferences. In some cases, prospective customers are experts and
may only value interactions with salespeople later in the buying process. In
other cases, less-expert customers rely heavily on salespeople for critical
tasks in understanding how to solve problems, define alternatives, and

After finishing this chapter, go to PAGE 22 for STUDY TOOLS.

choose a solution. Increasingly, today’s successful salesperson will use a mix
of personal interactions along with sales technologies such as email, video
conferencing, and social media to ensure that customers receive timely,
useful information.1

short-term sales techniques; and has the skills and pa-
tience to endure lengthy, complex sales processes. As
portrayed in the chapter introduction, today’s salesperson
strives to furnish valuable information based on unique
customer needs. Meeting those customer needs requires
teamwork between salespeople and others in the organi-
zation. For more on teamwork, see “Professional Selling
in the twenty-first Century: The Importance of Team-
work in Sales.”

Personal selling, an important part of market-
ing, relies heavily on interpersonal interactions be-
tween buyers and sell-
ers to initiate, develop,
and enhance customer
relationships. The in-
terpersonal communi-
cations dimension sets

A productive sales approach first defines customer
needs, then illustrates how the sales organization can
deliver the value the customer is seeking, and ultimate-
ly leads to customer acknowledgment of the value to be
gained. This results in a mutually beneficial joint deci-
sion between the buyer and seller. With this approach,
the sales process is much more about “selling with”
customers rather than “selling to” customers.

1-1 PERSONAL SELLING DEFINED
The successful professional salesperson of today and the
future is likely a better listener than a talker; is more ori-
ented toward developing long-term relationships with
customers than placing an emphasis on high-pressure,

personal selling An important
part of marketing that relies heavily
on interpersonal interactions between
buyers and sellers to initiate, develop,
and enhance customer relationships.

3CHAPTER 1: Overview of Personal Selling

personal selling apart from other marketing commu-
nications such as advertising and sales promotion,
which are directed at mass markets. Personal selling

is also distinguished
from direct marketing
and electronic market-
ing in that salespeople
are talking with buy-
ers before, during, and
after the sale. This al-
lows a high degree of
immediate customer

feedback, which becomes a strong advantage of per-
sonal selling over most other forms of marketing com-
munications.

Although advertising is a far more visible activity,
personal selling is the most important part of marketing
communications for most businesses. This is particularly
true in business-to-business marketing, where more is
spent on personal selling than advertising, sales promo-
tion, publicity, or public relations. In this book, we typi-
cally describe personal selling in this business-to-business
context, in which a salesperson or sales team interacts with
one or more individuals from another organization.

trust-based relationship
selling A form of personal selling
requiring that salespeople earn
customer trust and that their selling
strategy meets customer needs
and contributes to the creation,
communication, and delivery of
customer value.

Selling in Action
The Importance of Teamwork in Sales
Christine Corelli, a corporate trainer whose clients
include Honda, Century 21, Pepsi, and Caterpillar,
addresses the importance of teamwork in sales:

The customer rules. If your entire team, including
all sales and service employees, do not excel in
providing an excellent customer experience, buyers
will take their business elsewhere. To provide
excellent customer experiences, it is crucial that sales
and service personnel share goals and communicate
efficiently and effectively. In terms of goals,
Ms. Corelli urges companies to go beyond customer
satisfaction, noting that satisfaction is not enough
and that customer loyalty should be the primary goal
of sales and service personnel. With customer loyalty
as the goal, customers are more likely to become
advocates within their companies for deserving sales
organizations. Further, loyal customers frequently
furnish referrals to other prospective customers and
provide favorable word mouth communications to
industry counterparts. Loyal customers are also more
likely to endorse loyalty-focused sales organizations
on LinkedIn and other business-centered social
media sites.

To foster teamwork between sales and service
personnel, Ms. Corelli cites the importance of
eliminating barriers to great teamwork. Barriers
include unproductive and negative employees who
place blame when problems arise or are overly
competitive with other employees. Another barrier
to teamwork is a sense of territorialism, or “us versus
them” attitudes that can exist between business
areas. This can lead to an “it’s not my job” stance that
compromises the all-important goal of customer
loyalty. Ms. Corelli also says that companies should
enable their employees through training on topics
ranging from how to connect with customers to
how to handle difficult customers and service
challenges. She also suggests cultivating and
sharing best practices in building customer loyalty
throughout the company as part of a continuous
improvement initiative. Clearly, Ms. Corelli knows
that superior teamwork does not happen simply
because it is a good idea. Teamwork requires a
coordinated effort, but the payoff is well worth
the effort.

Source: “Christie Corelli, “Teamwork Essential for Increased Productivity and Profitability,” from
www.christinespeaks.com (August 13, 2016).

1-2 TRUST!BASED
RELATIONSHIP SELLING

Trust-based relationship selling (a form of per-
sonal selling) requires that salespeople earn customer
trust and that their selling strategy meets customer

needs and contributes to the creation, communication,
and delivery of customer value. As illustrated in
Exhibit 1.1, trust-based relationship selling is quite
different from traditional selling. Rather than trying to
maximize sales in the short run (also called a transaction
focus), trust-based relationship selling focuses on
solving customer problems, providing opportunities,

Exhibit 1.1

Comparison of Transaction-Focused Traditional Selling
with Trust-Based Relationship Selling

Transaction-Focused
Traditional Selling

Trust-Based
Relationship Selling

Typical skills required Selling skills, for example,
!nding prospects, making
sales presentations

Selling skills
Information gathering
Listening and questioning
Strategic problem solving
Creating and demonstrating unique, value-added solutions
Teambuilding and teamwork

Primary focus The salesperson and the
selling !rm

The customer and the customer’s customers

Desired outcomes Closed sales, order volume Trust, joint planning, mutual bene!ts, enhance pro!ts
Role of salesperson Make calls and close sales Business consultant and long-term ally

Key player in the customer’s business
Nature of
communications with
customers

One-way, from
salesperson to customer
Pushing products

Two-way and collaborative
Strive for dialogue with the customer

Degree of salesperson’s
involvement in customer’s
decision-making process

Isolated from customer’s
decision-making process

Actively involved in customer’s decision-making
process

Knowledge required Product knowledge
Competitive knowledge
Identifying opportunities
Account strategies

Product knowledge
Selling company resources
Competitive knowledge
Account strategies
Costs
Identifying opportunities
General business and industry knowledge and insight
Customer’s products, competition, and customers

Postsale follow-up Little or none: move on to
conquer next customer

Continued follow-through to:
! Ensure customer satisfaction
! Keep customer informed
! Add customer value
! Manage opportunities

5CHAPTER 1: Overview of Personal Selling

and adding value to the customer’s business over an
extended period. Chapter 2 will provide detailed
coverage of how salespeople can earn buyers’ trust.

1-2a Importance of Customer Value
As personal selling continues to evolve, it is more
important than ever that salespeople focus on deliv-
ering customer value while initiating, developing, and
enhancing customer relationships. What constitutes
value will likely vary from one customer to the next
depending on the customer’s situation, needs, and
priorities, but customer value will always be deter-
mined by customers’ perceptions of what they get in
exchange for what they have to give up. In the simplest
situations, customers buy a product in exchange for
money. In most situations, however, customers define
value in a more complex manner, by addressing ques-
tions such as:

! Does the salesperson do a good job in helping me make
or save money?

! Is this salesperson dependable?

! Does this salesperson help me achieve my strategic
priorities?

! Is the salesperson’s company easy to work with, i.e.,
hassle-free?

! Does the salesperson enlist others in his or her organiza-
tion when needed to create value for me?

! Does the sales representative understand my business
and”my industry?

Personal selling also recognizes that customers
would like to be heard when expressing what they
want suppliers and salespeople to provide for them. In
days gone by, personal selling often consisted of deliv-
ering a message or making a pitch. That approach was
typically associated with a “product push” strategy in
which customers were pressured to buy without much

appreciation for their
real needs. Today, the
most progressive sales
organizations are far
more interested in
establishing a produc-
tive dialogue with cus-
tomers than in simply
pitching products that
customers may or may
not want or need. In
our highly competi-
tive world, professional

buyers have little tolerance for aggressive, pushy
salespeople.

1-2b Importance of Sales Dialogue
Sales dialogue refers to the series of conversations
between buyers and sellers that take place over time in
an attempt to build relationships. The purposes of these
conversations are to:

! Determine if a prospective customer should be targeted
for further sales attention.

! Clarify the prospective customer’s situation and buying
processes.

! Discover the prospective customer’s unique needs
and”requirements.

! Determine the prospective customer’s strategic priorities.
! Communicate how the sales organization can create

and”deliver customer value.
! Negotiate a business deal and earn a commitment from

the customer.
! Make the customer aware of additional opportunities

to”increase the value received.
! Assess sales organization and salesperson performance

so that customer value is continuously
improved.

As you can see, sales dialogue is far more than idle
chitchat. The business conversations that constitute the
dialogue are customer-focused and have a clear purpose;
otherwise, there would be a high probability of wasting
both the customer’s and the salesperson’s time, which no
one can afford in today’s business environment. Whether
the sales dialogue features a question-and-answer for-
mat, a conversation dominated by the buyer conveying
information and requirements, or a formal sales pre-
sentation in which the salesperson responds to buyer
feedback throughout, the key idea is that both parties
participate in and benefit from the process.

Throughout this course, you will learn about new
technologies and techniques that have contributed to the
evolution of the practice of personal selling. This chap-
ter provides an overview of personal selling, affording
insight into the operating rationale of today’s salespeople

customer value The customer’s
perception of what they!get for what
they have to give up, for example,
benefits from buying a product in
exchange for money paid.

sales dialogue Business
conversations between buyers
and!sellers that occur as
salespeople!attempt to initiate,
develop, and enhance customer
relationships. Sales dialogue should
be customer-focused and have a clear
purpose.

Customers want to be heard
loud and clear when expressing

what they want from
suppliers and salespeople.

and sales managers. It also describes different approach-
es to personal selling and presents the sales process as a
series of interrelated steps. The chapter concludes with
a discussion of several important aspects of sales careers,
including types of selling jobs and characteristics and
skills needed for sales success. In the highly competitive,
complex international business community, personal
selling and sales management have never played more
critical roles.

1-3 EVOLUTION OF
PROFESSIONAL SELLING

For the past several decades, there has been a steady
increase in the complexity of the business world, the
level of competitive activity, and buyer expectations.
These developments have driven an increased focus on
sales professionalism by the most progressive sales
organizations. Sales professionalism requires a customer-
oriented sales approach that uses truthful, nonmanipu-
lative tactics to satisfy the long-term needs of both the
customer and the selling firm.

In examining the status of sales as a true profession,
one study found that sales meets four of the six criteria
that define professions, and that progress is still needed
on the other two dimensions.2 This study concluded that
sales meets the criterion of operating from a substantial
knowledge base that has been developed by academics,
corporate trainers and executives, and professional or-
ganizations. Second, sales meets the criterion of making
a significant contribution to society, which is discussed
in the next section of this chapter. Third, through pro-

sales professionalism A
customer-oriented approach that uses
truthful, nonmanipulative tactics to
satisfy the long-term needs of both the
customer and the!selling firm.

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Successful salespeople must be able to
make sales calls and build relationships
at!the same time.

fessional organizations such as the Strategic Account
Management Association (SAMA) and through a com-
mon sales vocabulary such as that found in textbooks and
training materials, sales meets the professional criteria of
having a defined culture and organization of colleagues.
Fourth, sales does have a unique set of professional
skills, although these skills vary depending on the spe-
cific nature of a given sales position.

Two areas in the study indicated that sales needs
additional progress to be viewed as a profession on a
par with law, medicine, and other long-recognized pro-
fessions. The first area has to do with how much au-
tonomy salespeople have to make decisions and the
amount of public trust granted to salespeople. Although
many business-to-business salespeople have consider-
able decision-making autonomy, others have very little.
Public trust could be improved by a widely accepted
certification program such as the Certified Public
Accountant (CPA) designation for accountants. At pres-
ent, however, very few salespeople have professional
certification credentials. Although many salespeople do
have considerable autonomy, public trust in certifica-
tion programs is modest; thus, the results are mixed as
to whether the sales profession meets this professional
criterion.

The final area where sales needs to improve is ad-
herence to a uniform ethical code. Many companies have
employee codes of conduct and some professional orga-
nizations have ethical codes for salespeople, but there is
no universal code of ethics with a mechanism for dealing
with violators. Until such a code is developed and widely
accepted in business, some members of society will not
view sales as a true profession.

Whether or not sales is viewed as a true profes-
sion comparable to law and medicine, salespeople can
benefit tremendously by embracing high ethical stan-
dards, participating in professional organizations, and
working from a continually evolving knowledge base.
In so doing, they will not only be more effective but
also they will help advance sales as a true profession.

Future evolution is inevitable as tomorrow’s profes-
sional salesperson responds to a more complex, dynamic
environment. Also, increased sophistication of buyers
and of new technologies will demand more from the next
generation of salespeo-
ple. For a discussion
of how salespeople are
using sales technology
tools, see “Top Sales-
people Reach Custom-
ers with Techno-Tools.”

7CHAPTER 1: Overview of Personal Selling

1-4 CONTRIBUTIONS OF
PERSONAL SELLING

As mentioned earlier in this chapter, more money is
spent on personal selling than on any other form of mar-
keting communications. Salespeople are usually well
compensated, and salesforces of major companies often
number in the thousands. For example, General Electric
(GE) has 16,400 salespeople, Oracle has 11,445, and
Hewlett-Packard has 5,000.3

We now take a look at how this investment is justified
by reviewing the contributions of personal selling to society
in general, to the employing firm, and to customers.

1-4a Salespeople and Society
Salespeople contribute to their nations’ economic growth
in two basic ways. They stimulate economic transactions
and further the diffusion of innovation.

SALESPEOPLE AS ECONOMIC STIMULI Salespeo-
ple are expected to stimulate action in the business

world—hence the term
economic stimuli.
In a fluctuating econ-
omy, salespeople make
invaluable contribu-
tions by assisting in
recovery cycles and by
helping to sustain pe-
riods of relative pros-
perity. As the world
economic system deals
with issues such as

increased globalization of business, more emphasis on
customer satisfaction, and building competitiveness
through quality improvement programs, it is expected
that salespeople will be recognized as a key force in ex-
ecuting the appropriate strategies and tactics necessary
for survival and growth.

SALESPEOPLE AND DIFFUSION OF INNOVATION
Salespeople play a critical role in the diffusion
of innovation, the process whereby new products,
services, and ideas are distributed to the members of
society. Consumers who are likely to be early adopters
of an innovation often rely on salespeople as a primary
source of information. Frequently, well-informed, spe-
cialized salespeople provide useful information to poten-
tial customers. Sometimes those customers ultimately
purchase the new product from a lower-cost outlet;
nonetheless, the information provided by the original
well-informed salesperson contributes critically to the
adoption of the innovation and more widespread popu-
larity of the new product. The role of salespeople in the
diffusion of industrial products and services is particu-
larly crucial. Imagine trying to purchase a companywide
computer system without the assistance of a competent
salesperson or sales team!

While acting as an agent of innovation, the salesper-
son invariably encounters a strong resistance to change
in the latter stages of the diffusion process. The status
quo seems to be extremely satisfactory to many parties,
even though, in the long run, change is necessary for con-
tinued progress or survival. By encouraging the adoption
of innovative products and services, salespeople may in-
deed be making a positive contribution to society.

1-4b Salespeople and The
Employing”Firm
Because salespeople are in direct contact with the
all-important customer, they can make valuable contri-
butions to their employers. Salespeople contribute to
their firms as revenue producers, as sources of market
research and feedback, and as candidates for manage-
ment positions.

SALESPEOPLE AS REVENUE PRODUCERS Sales-
people occupy the somewhat unique role of
revenue producers in their firms. Consequently,
they usually feel the brunt of that pressure along with
the management of the firm. Although accountants and
financial staff are concerned with profitability in bottom-
line terms, salespeople are constantly reminded of their
responsibility to achieve a healthy “top line” on! the

economic stimuli Something
that stimulates or incites activity in the
economy.

diffusion of innovation The
process whereby new products,
services, and ideas are distributed to
the members of society.

revenue producers A role
fulfilled by salespeople that brings
in revenue or income to a firm
or!company.

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Sales is becoming more professional,
as indicated by a growing number of
publications and a market for Web sites
with professional development materials
and reviews.

Technology in Sales
“Top Salespeople Reach Customers with
Techno-Tools.”
According to a LinkedIn study, the technology
tools that a salesperson uses is highly correlated
to their sales performance, with top salespeople
24 percent more likely to attribute their success to
sales technology than lower-performing salespeople.
Popular tools include social media, email tracking,
sales intelligence software, and customer relationship
management (CRM) systems. Salespeople are
increasingly using social selling software that helps
salespeople initiate and establish relationships with
buyers on social media sites such as Twitter, Facebook,
LinkedIn, Snapchat, and Instagram. LinkedIn’s Sales
Navigator is a popular tool for creating prospect
lists and contacting prospective customers. Email
tracking alerts the seller when a recipient opens an
email or clicks on a link in an email. Sales intelligence
software provides contact and company information
to help build prospect profiles and prioritize sale

opportunities. Popular intelligence providers include
DiscoverOrg which provides organizational charts
to companies that target information technology,
finance, and marketing departments. CRM software
is one of the more mature products in the sales
technology space, yet less than one-third of large
companies use CRM to bolster and manage sales.
This is surprising given that 80 percent of the top
salespeople in the LinkedIn study report that CRM is
“critical” or “extremely critical” to their success.

As the use of sales technology spreads, some
experts are concerned about potential abuses by
overly-aggressive salespeople who use technology
to deploy pushy sales tactics. This could sour buyers
on the new technology and the salespeople who
use it. If abuses make social media sites less relevant
over time, more private sites such as Kik, WeChat,
Facebook Messenger, and Slack will likely become more
important for salespeople.

Source: Pete Caputa, “Top Salespeople are More Likely to use These Tools Than the Rest of You,”
from HubSpot’s Sales Blog, online at https://blog.hubspot.com, June 15, 2016.

profit and loss statement. This
should not suggest that salespeo-
ple are concerned only with sales
revenue and not with overall
profitability. Indeed, salespeople
are increasingly responsible for improving profitability,
not only by producing sales revenues but also by improv-
ing the productivity of their actions.

MARKET RESEARCH AND FEEDBACK Because
salespeople spend so much time in direct contact with
their customers, it is only
logical that they would play
an important role in market
research and in providing
feedback to their firms. For
example, Xerox uses a sys-
tem called SCOOP to store

customer information
gathered by the sales-
force. This information
fully describes each
sales territory in terms

of Xerox and competitive products currently in use, ma-
chine types, age, and potential replacement dates. Mar-
keting executives use this information to develop market
forecasts and to help develop marketing and sales strate-
gies for various customer segments.4

The emergence of com-
munications technologies gives
salespeople and their orga-
nizations more opportunities
to gather customer feedback.
For example, retailers and
service providers routinely use

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Along with the management of
a firm, salespeople occupy the

somewhat unique role of revenue
producers in their firms.

9CHAPTER 1: Overview of Personal Selling

Facebook to solicit customer feedback. In the business-
to-business sector, buyers are increasingly sharing their
opinions, identifying problems, and asking for vendor
recommendations via Twitter and LinkedIn. Customer
relationship management programs such as Chatter by
Salesforce.com are incorporating social media to improve
collaboration between customers and the sales organization.

Some would argue that salespeople are not trained
as market researchers, or that salespeople’s time could
be better used than in research and feedback activities.
Many firms, however, refute this argument by finding
numerous ways to capitalize on the salesforce as a res-
ervoir of ideas. It is not an exaggeration to say that many
firms have concluded that they cannot afford to operate
in the absence of salesforce feedback and research.

SALESPEOPLE AS FUTURE MANAGERS In recent
years, marketing and sales personnel have been in strong
demand for upper management positions. Recognizing
the need for a top management trained in sales, many
firms use the sales job as an entry-level position that
provides a foundation for future assignments. As pro-
gressive firms continue to emphasize customer orienta-
tion as a basic operating concept, it is only natural that
salespeople who have learned how to meet customer
needs will be good candidates for management jobs.

1-4c Salespeople and”The”Customer
Given the increasing importance of building trust
with! customers and an emphasis on establishing and
maintaining long-term relationships, it is imperative
that salespeople are honest and candid with custom-
ers. Salespeople must also be able to demonstrate
knowledge of their products and services, especially
as they compare competitive offerings. Customers
also expect salespeople to be knowledgeable about
market opportunities and relevant business trends
that may affect a customer’s business. There has been
a long-standing expectation that salespeople need to
be the key contact for the buyer, who expects that
they will coordinate activities within the selling firm
to deliver maximum value to the customer.

The overall conclusion is that buyers expect
salespeople to contribute to the success of the buy-
er’s firm. Buyers value the information furnished
by salespeople, and they expect salespeople to act
in a highly professional manner. See “An Ethical
Dilemma” for a scenario in which the salesperson must
think about where to draw the line in sharing information
with customers.

As salespeople serve their customers, they simulta-
neously serve their employers and society. When these
parties’ interests conflict, the salesperson can be caught
in the middle. By learning to resolve these conflicts as
a routine part of their jobs, salespeople further contrib-
ute to developing a business system based on progress
through problem solving. Sales ethics will be discussed
in detail in Chapter 2.

1-5 ALTERNATIVE PERSONAL
SELLING APPROACHES

In this section, we take a closer look at alternative ap-
proaches to personal selling that professionals may choose
from to best interact with their customers. Some of these
approaches are simple. Other approaches are more so-
phisticated and require that the salesperson play a strate-
gic role to use them successfully. Five basic approaches
to personal selling have been in use for decades: stimulus
response, mental states, need satisfaction, problem solv-
ing, and consultative selling.5 All five approaches to sell-
ing are practiced today. Furthermore, many salespeople
use elements of more than one approach in their own
hybrids of personal selling.

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Salespeople that figure out that all
customers are different and can adapt,
will!be the most successful.

As salespeople serve
their customers, they

simultaneously serve their
employers and society.

Recall from earlier in the chapter that personal sell-
ing differs from other forms of marketing communica-
tions because it is a personal communication delivered
by employees or agents of the sales organization. Because
the personal element is present, salespeople have the
opportunity to alter their sales messages and behaviors
during a sales presentation or as they encounter unique
sales situations and customers. This is referred to as
adaptive selling. Because salespeople often encoun-
ter buyers with different personalities, communications
styles, needs, and goals, adaptive selling is an important
concept. Adaptive selling is prevalent with the need sat-
isfaction, problem- solving, and consultative approaches.
It is less prevalent with mental states selling and essen-
tially nonexistent with stimulus response selling.

1-5a Stimulus Response Selling
Of the five views of personal selling, stimulus
response selling is the simplest. The theoretical back-
ground for this approach originated in early experiments
with animal behavior. The key idea is that various stimuli
can elicit predictable responses. Salespeople furnish the
stimuli from a repertoire of words and actions designed
to produce the desired response. This approach to sell-
ing is illustrated in Figure 1.1.

An example of the stimulus response view of selling
would be continued affirmation, a method in which a
series of questions or statements furnished by the sales-
person is designed to condition the prospective buyer
to answering “yes” time after time, until, it is hoped, he
or she will be inclined to say “yes” to the entire sales
proposition. This method is often used by telemarketing
personnel, who rely on comprehensive sales scripts read
or delivered from memory.

Stimulus response sales strategies, particularly when
implemented with a canned sales presentation, have

The salesperson attempts to gain favorable responses from the customer by providing stimuli, or cues, to influence the buyer.
After the customer has been properly conditioned, the salesperson tries to secure a positive purchase decision.

FIG. 1.1 STIMULUS RESPONSE APPROACH TO SELLING

Salesperson
Provides Stimuli:
Statements

Questions

Actions

Audio/Visual Aids

Demonstrations

Buyer
Responses
Sought:
Favorable

Reactions and

Eventual Purchase

Continue
Process Until
Purchase
Decision

some advantages for the
seller. The sales mes-
sage can be structured
in a logical order. Ques-
tions and objections
from the buyer can
usually be anticipated
and addressed before
they are magnified dur-
ing buyer–seller inter-
action. Inexperienced
salespeople can rely
on stimulus response
sales methods in some
settings, and this may
eventually contribute
to sales expertise.

The limitations
of stimulus response

adaptive selling The ability of
salespeople to alter their sales messages
and behaviors during a sales presentation
or as they encounter different sales
situations and different customers.

stimulus response selling
An approach to selling where the key
idea is that various stimuli can elicit
predictable responses from customers.
Salespeople furnish the stimuli from a
repertoire of words and actions designed
to produce the desired response.

continued affirmation
An example of stimulus response
selling in which a series of questions
or statements furnished by the
salesperson is designed to condition
the prospective buyer to answering
“yes” time after time, until, it is hoped,
he or she will be inclined to say “yes”
to the entire sales proposition.

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Telemarketing sales representatives use
stimulus response selling, relying on
comprehensive scripts that are read or
delivered from memory.

11CHAPTER 1: Overview of Personal Selling

methods, however, can be severe, especially if the sales-
person is dealing with a professional buyer. Most buyers
like to take an active role in sales dialogue, and the stim-
ulus response approach calls for the salesperson to domi-
nate the flow of conversation. The lack of flexibility in
this approach is also a disadvantage, as buyer responses
and unforeseen interruptions may neutralize or damage
the effectiveness of the stimuli.

Considering the net effects of this method’s advan-
tages and disadvantages, it appears most suitable for
relatively unimportant purchase decisions, when time
is severely constrained and when professional buyers
are not the prospects. As consumers in general become
more sophisticated, this approach will become more
problematic.

1-5b Mental
States Selling
Mental states selling,
or the formula approach
to personal selling, as-
sumes that the buying
process for most buy-
ers is essentially identi-
cal and that buyers can
be led through certain
mental states, or steps,
in the buying process.
These mental states are
typically referred to as
AIDA (attention, inter-
est, desire, and action).

Appropriate sales messages provide a transition from
one mental state to the next. The mental states method
is illustrated in Exhibit 1.2.

As with stimulus response selling, the mental states
approach relies on a highly structured sales presentation.
The salesperson does most of the talking, as feedback
from the prospect could be disruptive to the flow of the
presentation.

A positive feature of this method is that it forces the
salesperson to plan the sales presentation prior to calling
on the customer. It also helps the salesperson recognize
that timing is an important element in the purchase de-
cision process and that careful listening is necessary to
determine which stage the buyer is in at any given point.

A problem with the mental states method is that it is
difficult to determine which state a prospect is in. Some-
times a prospect is spanning two mental states or mov-
ing back and forth between two states during the sales
presentation. Consequently, the heavy guidance struc-
ture the salesperson implements may be inappropri-
ate, confusing, and even counterproductive to sales ef-
fectiveness. We should also note that this method is not
customer oriented. Although the salesperson tailors the
presentation to each customer somewhat, this is done
by noting customer mental states rather than needs.
See “An Ethical Dilemma” for a situation in which the
salesperson is contemplating the movement of the pros-
pect into the “action” stage.

1-5c Need Satisfaction Selling
Need satisfaction selling is based on the notion that
the customer is buying to satisfy a particular need or set of

Exhibit 1.2

Mental States View of Selling
Buyer’s Mental State Common Sales Tactics

Attention Build rapport with the prospect, ask questions to generate excitement”for the
sales”o#ering

Interest Discover buyer needs; uncover purchase decision process; gain precommitment
to”consider purchase of seller’s product

Desire Build a sense of urgency; demonstrate the product; persuade the buyer to try the
product, for example, a test drive or hands-on involvement with the product

Action Overcome buyer resistance and make the sale; multiple attempts to”close the sale
are sometimes used

mental states selling An
approach to personal selling that
assumes that the buying process for
most buyers is essentially identical
and that buyers can be led through
certain mental states, or steps, in the
buying process; also called the formula
approach.

AIDA An acronym for the various
mental states the salesperson must
lead customers through when using
mental states selling: attention,
interest, desire, and action.

need satisfaction selling An
approach to selling based on the
notion that the customer is buying
to satisfy a particular need or set of
needs.

The salesperson attempts to uncover customer needs that are related to the product or service o!ering. This may require
extensive questioning in the early stages of the sales process. After confirming the buyer’s needs, the salesperson proceeds
with a presentation based on how the o!ering can meet those needs.

FIG. 1.2 NEED SATISFACTION APPROACH TO SELLING

Uncover and

Needs
to Satisfy Buyer
Needs

Continue Selling
Until Purchase
Decision

The salesperson defines a customer problem that may be solved by various alternatives. Then an o!ering is made that
represents at least one of these alternatives. All alternatives are carefully evaluated before a purchase decision is made.

FIG. 1.3 PROBLEM!SOLVING APPROACH TO SELLING

Problem
Generate
Alternative
Solutions

Evaluate
Alternative
Solutions

Continue
Selling Until
Purchase Decision

needs. This approach is shown in Figure 1.2. It is the sales-
person’s task to identify the need to be met, then to help
the buyer meet the need. Unlike the mental states and
stimulus response methods, this method focuses on the
customer rather than on the salesperson. The salesperson
uses a questioning, probing tactic to uncover important
buyer needs. Customer responses dominate the early por-
tion of the sales interaction, and only after relevant needs
have been established does the salesperson begin to relate
how his or her offering can satisfy these needs.

Customers seem to appreciate this selling method
and are often willing to spend considerable time in pre-
liminary meetings to define needs prior to a sales pre-
sentation or written sales proposal. Also, this method
avoids the defensiveness that arises in some prospects
when a salesperson rushes to the persuasive part of the
sales message without adequate attention to the buyer’s
needs.

1-5d Problem-Solving Selling
Problem-solving selling is an extension of need sat-
isfaction selling. It goes beyond identifying needs to de-
veloping alternative solutions for satisfying these needs.
The problem-solving approach to selling is depicted in
Figure 1.3. Sometimes even competitors’ offerings are
included as alternatives in the purchase decision.

The problem-solving approach typically requires
educating the customer about the full impact of the exist-

ing problem and clearly communicating how the solution
delivers significant customer value. This is true in cases
where the customer does not perceive a problem or even
when the solution seems to be an obviously beneficial
course of action for the buyer. According to The Brooks
Group, a leading sales training firm, problem-solving sell-
ing is not so much about convincing someone to buy, but
rather it is about offering a logical solution to a problem
faced by the client. Of course, the salesperson is trying to
make the sale as soon as possible, but first they must learn
exactly what the problem is and determine the best solu-
tion from the customer’s perspective.6 To be successful in
problem-solution selling, salespeople must be able to get
the buyer to agree that a problem exists and that solving
it is worth the time and effort required.

The problem-solving approach to selling can
take a lot of time. In some cases, the selling company
cannot afford this much time with each prospective
customer. In other cases, the customers may be un-
willing to spend the time. Insurance salespeople, for
example, report this customer response. The problem-
solving approach appears to be most successful in tech-
nical industrial sales situations, in which the parties
involved are usually
oriented toward sci-
entific reasoning and
processes and thus
find this approach to
sales amenable.

problem-solving selling An
extension of need satisfaction selling
that goes beyond identifying needs to
developing alternative solutions for
satisfying these needs.

13CHAPTER 1: Overview of Personal Selling

1-5e Consultative
Selling
Consultative selling
is the process of helping
customers reach their
strategic goals by using
the products, services,
and expertise of the sales
organization.7 Notice
that this method focuses
on achieving strategic
goals of customers, not
just meeting needs or
solving problems. Sales-
people confirm their cus-
tomers’ strategic goals,
and then work collab-
oratively with customers
to achieve those goals.

In consultative sell-
ing, salespeople fulfill
three primary roles:

Bill Jackson is a sales representative for Best Bags, a
supplier of custom-print shopping bags in Chicago. His
customers are upscale retailers who see the value of
colorful shopping bags not only as a convenience for
customers, but also as “walking billboards” that help
advertise for the retailer. BestBags offers a variety of
sizes and colors. Pricing to the retailers depends on
the size of the bag ordered, quantities ordered, and
how many colors are used in custom-print designs.
Bill has been successful in this market for two years,
but a recent economic slump has had a slight nega-
tive impact on his performance. His retail customers
are cutting costs by ordering less expensive bags or
by using generic shopping bags instead of the more
expensive options from BestBags. Jeffrey Bergeron, the
sales manager at BestBags, recently told Bill, “You have
slipped a bit over the past couple of months. I would

hate to see you miss out on your year-end bonus if you
don’t make your quota this year. You have to find a way
to get your customers into the more expensive bags.
Tell them that the best time to advertise is when things
are slow. When the upturn comes, tell them they will
be glad they invested more in their business.” Bill tried
to sell the more expensive items for a couple of weeks
without any results. Customers pushed back hard, say-
ing now was simply not the time to spend more.

What should Bill do?
1. Keep trying to follow Jeffrey’s directive—after all,

he is the boss.
2. Try to convince Jeffrey that a customer-oriented

approach will work best over the long run.
3. Tell Jeffrey that he is working on selling the more

expensive bags, but don’t push expensive bags to
the customers.

An Ethical Dilemma

strategic orchestrator, business consultant, and long-
term ally. As a strategic orchestrator, the salesper-
son arranges the use of the sales organization’s resources
in an effort to satisfy the customer. This usually calls
for involving other individuals in the sales organiza-
tion. For example, the salesperson may need expert
advice from production or logistics personnel to ad-
dress a customer problem or opportunity fully. In the
business consultant role, the salesperson uses inter-
nal and external (outside the sales organization) sources
to become an expert on the customer’s business. This
role also includes an educational element—that is, sales-
people educate their customers on products they offer
and how these products compare with competitive offer-
ings. As a long-term ally, the salesperson supports the
customer, even when an immediate sale is not expected.

Peter Lang, CEO of UhuruNetwork, a digital mar-
keting agency, says: “We have abandoned the traditional
‘sales pitch’ approach in favor of a process where we
work cooperatively with potential clients to see if we
are a good fit. It’s called consultative selling because
we conduct a series of consultations to determine
whether or not we would benefit from working with

consultative selling The
process of helping customers reach
their strategic goals by using the
products, services, and expertise of!the
sales organization.

strategic orchestrator
A role the salesperson plays in
consultative selling where he or
she arranges the use of the sales
organization’s resources in an effort to
satisfy the customer.

business consultant A role the
salesperson plays in consultative selling
where he or she uses internal and
external (outside the sales organization)
sources to become an expert on the
customer’s business. This role also
involves educating customers on the
sales firm’s products and how these
products compare with competitive
offerings.

long-term ally A role the
salesperson plays in consultative selling
where he or she supports the customer,
even when an immediate sale is not
expected.

one another.”8 Mr. Lang has found that the consulta-
tive approach builds trust with potential clients based
on Uhuru’s ability to ask the right questions throughout
the sales process to determine their client’s strategic
priorities and, in response, provide high-quality action-
able advice. Determining the right questions to ask be-
gins with customer research prior to first sales call. By
knowing the prospective client’s company and industry,
the Uhuru sales team is able to outline areas where they
think the client could improve business operations. Af-
ter the initial sales call, the Uhuru sales team meets
with prospects to explore in depth the potential fit of
the two companies. Ultimately a joint decision is made
about working together or not. Mr. Lang reports that
the consultative approach is a good fit for his agency
and their clients. Most importantly, Uhuru’s sales team
consistently succeeds with consultative selling.9

1-6 THE TRUST!BASED
SALES”PROCESS

The nonselling activities on which most salespeople
spend a majority of their time are essential for the

successful execution of the most important part of the
salesperson’s job: the sales process. The sales process
has traditionally been described as a series of interre-
lated steps beginning with locating qualified prospective
customers. From there, the salesperson plans the sales
presentation, makes an appointment to see the custom-
er, completes the sale, and performs postsale activities.

As you should recall from the earlier discussion
of the continued evolution of personal selling (refer
to Exhibit! 1.1), the sales process is increasingly being
viewed as a relationship management process, as depict-
ed in Figure 1.4.

In this conceptualization of the sales process, sales-
people strive to attain lasting relationships with their
customers. The basis for such relationships may vary,
but the element of trust between the customer and
the salesperson is an essential part of enduring relation-
ships. To earn the trust
of customers, sales-
people should be cus-
tomer oriented, honest,
and dependable. They
must also be compe-
tent and able to display
an appropriate level of

sales process A series of
interrelated steps beginning with
locating qualified prospective
customers. From there, the salesperson
plans the sales presentation, makes
an appointment to see the customer,
completes the sale, and performs
postsale activities.

The three major phases of the sales process are initiating, developing, and enhancing customer relationships. Salespeople
must possess certain attributes to earn the trust of their customers and be able to adapt their selling strategies to di!erent
situations. Throughout the sales process, salespeople should focus on customer value, first by understanding what it is, then
by working with customers to create value, communicate value, and continually increase customer value.

FIG. 1.4 TRUST!BASED SALES PROCESS

Enhancing Customer
Relationships

Building value through
postsale follow-up
Assessing value and
relationship performance
Creating new value
opportunities
Increasing customer value
through self-leadership and
teamwork

Understanding Creating and Delivering and

Customer Communicating Increasing

Value Customer Value Customer Value

Selling Strategy
Based on Customer
Needs and Value

Sales Territory
Each Customer
Each Sales Call

Initiating Customer
Relationships

Strategic prospecting
Assessing the prospect’s
situation
Discovering prospect’s
needs
Planning value-based sales
dialogue and
presentations

Selling Foundations

Trust and Ethics
Understanding
Buyers
Communications
Skills

Developing Customer
Relationships

Engaging prospects and
customers through
sales dialogue and
presentations
Cocreating and
validating customer
value
Earning customer
commitment

15CHAPTER 1: Overview of Personal Selling

expertise to their customers. Finally, the trust-building
process is facilitated if salespeople are compatible with
their customers; that is, if they get along and work well
with each other.10 These attributes are reflected by Jor-
dan Lynch, who works in strategic business development
with Ultimate Software in Denver, Colorado.

The key to having productive relationships with
your customers is genuine trust. From day one,
I work to earn the customer’s trust by consis-
tently doing what I say I will do. This means
that I must be realistic and not overpromise
in terms of what we can do for our customers.
It is important to show the customer that you
truly care about their success, and of course,
basic honesty is essential. Customers expect me
to be an expert in our !eld, and to get answers
quickly if I need to call in other experts to suit
the customer’s needs. I want to do business with
trustworthy people, and I !rmly believe that my
customers feel the same way.11

Another important element of achieving sound rela-
tionships with customers is to recognize that individual
customers and their particular needs must be addressed
with appropriate selling strategies and tactics. In sell-
ing, we discuss strategy at four levels: corporate, busi-
ness unit, marketing department, and the overall sales
function. An individual salesperson is strongly guided
by strategy at these higher levels in the organization but
must also develop selling strategies and tactics to fit the
sales territory, each customer, and, ultimately, each sales
call. Our coverage in this text focuses on developing sales
strategies for individual customers and specific sales calls.

When studying the sales process, note that there are
countless versions of the process in terms of number and

names of steps. If, however, you were to examine popu-
lar trade books on selling and training manuals used by
corporations, you would find that the various depictions
of the sales process are actually more alike than differ-
ent. The sales process shown in Figure 1.4 is comparable
to most versions of the sales process, with the exception
of those versions that advocate high- pressure methods
centering on how to get the customer to “say yes” rather
than focusing on meeting the customer’s true needs. Our
version of the sales process suggests that salespeople
must have certain attributes to inspire trust in their cus-
tomers and that salespeople should adapt their selling
strategy to fit the situation.

Another point that should be stressed is that the
sales process is broken into steps to facilitate discussion
and sales training, not to suggest discrete lines between
the steps. The steps are actually highly interrelated and,
in some instances, may overlap. Further, the stepwise flow
of Figure 1.4 does not imply a strict sequence of events.
Salespeople may move back and forth in the process with a
given customer, sometimes shifting from step to step sev-
eral times in the same sales encounter. Finally, claiming
a new customer typically will require multiple sales calls.

1-7 SALES CAREERS
In this section, we first discuss various aspects of sales
careers, and then describe several different types of per-
sonal selling jobs. The chapter concludes with a discus-
sion of the skills and qualifications necessary for success
in sales careers. For some advice on how to achieve suc-
cess in a sales career, see “From the Classroom to the
Field: Building a Successful Career in Sales.”

1-7a Characteristics of Sales Careers
An important element in career success is the match be-
tween the individual’s capabilities and career goals with
the chosen profession. As you read the following sections
on the characteristics of sales careers, you might think
about what you expect from a career and whether your
expectations could be met by working in sales. The char-
acteristics to be discussed are:

! Occupational outlook

! Advancement opportunities

! Immediate feedback

! Job variety

! Independence

! Compensation

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In consultative selling, the salesperson
is a lot like an orchestra conductor. The
salesperson must involve all parts of
the!selling firm.

Mallory Wilbourn, sales manager with Insight Global,
a major sta$ng services company, is a graduate of
Colorado State University. She shares these thoughts
with new college graduates about getting a sales
career o# to a good start:

You need a good foundation that includes
understanding your services and how you and
your company can bene!t your clients. To get this
understanding, you will study like you did in college,
but it’s also important to think like your customer and
understand how they think. Ultimately, your success
depends on your ability to build great relationships
with your clients. To build relationships, you need
to be genuine—just be yourself. You need to !nd
common ground with your clients. Some of that might

be personal, but being on the same page in terms
of helping the customer is the key. Good customer
relationships are based on mutual trust. If you and your
clients trust each other, business is more e$cient and
also more enjoyable. New salespeople must learn to be
fully accountable for their actions. Rather than placing
blame when things go wrong, look to yourself !rst
to solve the problem. When you !rst start out, don’t
hesitate to ask a lot of questions to those in your own
company. More experienced people have walked in your
shoes, so bene!t from their experience. Finally, have a
positive attitude. Things don’t always go perfectly, and
it is important to stay positive as you work through any
bumps in the road. Sales is a great career because you
largely control your own destiny—make the most of it!

From the Classroom
to the Field
Building a Successful Career in Sales

OCCUPATIONAL OUTLOOK As shown in Exhibit 1.3,
the U.S. government projects stable demand for sales-
people through 2024.12 Compared to overall labor force
growth rates, sales and sales management occupations
are expected to increase at average rates.

Salespeople are revenue producers and thus enjoy
relatively good job security compared with other oc-
cupational groups. Certainly, individual job security
depends on individual and company performance, but
in general, salespeople are usually the last group to be
negatively affected by personnel cutbacks. Competent
salespeople also have some degree of job security based
on the universality of their basic sales skills. In many cas-
es, salespeople are able to move successfully to another
employer, maybe even change industries, because sales
skills are largely transferable. For salespeople working in
declining or stagnant industries, this is heartening news.

ADVANCEMENT OPPORTUNITIES As the business
world continues to become more competitive, the ad-
vancement opportunities for college-educated sales-
people remains an attractive dimension of sales careers.

One reason that many successful salespeople ultimately
find their way into top management is that they display
some of the key attributes required for success in execu-
tive positions. Top executives must have highly developed
personal skills, be able to communicate clearly and per-
suasively, and have high levels of self-confidence, motiva-
tion, business judgment, and determination.

IMMEDIATE FEEDBACK Salespeople receive con-
stant, immediate feedback on their job performance.
Usually, the results of their efforts can be plainly ob-
served by both salespeople and their sales managers—
a source of motivation and job satisfaction. On a daily
basis, salespeople receive direct feedback from their
customers, and this can be stimulating, challenging,
and productive. The opportunity to react immediately
to customer feedback during sales presentations is a
strong benefit of adaptive selling, and it distinguishes
selling from other forms of marketing communications
such as advertising and public relations. The sponta-
neity and creativity involved in reacting to immediate
feedback is one dimension of selling that makes it such
an interesting job.

17CHAPTER 1: Overview of Personal Selling

work away from headquarters, therefore working from their
homes and making their own plans for extensive travel.

Despite its appeal, however, independence does
present some problems. New recruits working from
their homes may find the lack of a company office some-
what disorienting. They may need an office environment
to relate to, especially if their past work experience pro-
vided regular contact in an office environment.

The independence of action traditionally en-
joyed by salespeople is being scrutinized by

sales managers more heavily now
than in the past. The emphasis on
sales productivity, accomplished in
part through cost containment, is

encouraging sales managers to take a
more active role in dictating travel plans

and sales call schedules.

COMPENSATION Compensation is gen-
erally thought to be an advantage of sales

careers. Pay is closely tied to perfor-
mance, especially if commissions and
bonuses are part of the pay package.
Starting salaries for inexperienced
salespeople with a college degree typi-

cally average $45,000–$50,000, with
opportunities to earn more through
bonuses and commissions. Between

Exhibit 1.3

Occupational Outlook for Salespeople

Job Type 2014 Employment
Projected Growth

2014–2024 Percentage

Manufacturers and wholesalers (nontechnical) 1,453,100 6

Manufacturers and wholesalers (technical) 347,800 7

Advertising sales representatives 168,000 23

Real estate agents 421,300 3

Insurance agents 466,100 9

Securities, commodities, and !nancial services 341,500 10

Retail 4,859,600 7

Sales engineers 69,900 7

Sales managers 376,300 5

JOB VARIETY Salespeople rarely vegetate due to
boredom. Their jobs are multifaceted and dynamic.
Multicultural diversity is increasing in most customer
segments, and selling into global markets is on the rise.
For a person seeking the comfort of a well-established
routine, sales might not be a good career choice. For
those who dislike office jobs, sales can be an especially
good fit. In sales, day-to-day variation on the
job is the norm. Customers change, new
products and services are developed,
and competition introduces new
elements at a rapid pace. In addi-
tion to interacting with customers,
many salespeople spend a consider-
able amount of time on activities
such as training, attending trade
shows, working with other sales-
people at the distributor and
retail levels to stimulate demand,
and completing administrative tasks.

INDEPENDENCE Independence of ac-
tion and freedom to make decisions are
usually presented as advantages that sales
positions have over tightly supervised jobs.
This independence is frequently a
byproduct of decentralized sales op-
erations in which salespeople live and Billion Photos/Shutterstock.com

the extremes of the highly experi-
enced salesperson and the inex-
perienced recruit, the average
salesperson earns approximately
$65,000–$75,000 per year. More
experienced salespeople, includ-
ing those who deal with large cus-
tomers, often earn in the $90,000–
$150,000 range. The potential for higher
earnings is based on performance and the
complexity of the job. For example, salespeople
at technology companies such as IBM, Adobe,
Salesforce.com, Microsoft, and Cisco Systems
earn an average of $150,000–$210,000 per year.13

1-7b Classification of Personal
Selling Jobs
Because there are so many unique sales jobs, the term
salesperson is not by itself very descriptive. A salesperson
could be a flower vendor at a busy downtown intersection
or the sales executive negotiating the sale of Boeing aircraft
to a major airline.

We briefly discuss six types of personal selling jobs:
! Sales support

! New business

! Existing business

! Inside sales (nonretail)

! Direct-to-consumer sales

! Combination sales jobs

1-7c Sales Support
Sales support personnel are not usually involved in the di-
rect solicitation of purchase orders. Rather, their primary
responsibility is dissemination of information and per-
formance of other activities designed to stimulate sales.
They might concentrate at the end-user level or another
level in the channel of distribution to support the overall
sales effort. They may report to another salesperson who
is responsible for direct handling of purchase orders, or
to the sales manager. There are two well-known catego-
ries of support salespeople: missionary or detail sales-
people and technical support salespeople.

Missionary salespeople usually work for a man-
ufacturer but might also work for brokers and manufac-
turing representatives, especially in the grocery industry.
Sales missionaries, like religious missionaries, are ex-
pected to “spread the word” with the purpose of conver-
sion, in this case, to customer status. Once converted,

the customer receives reinforcing messages, new infor-
mation, and the benefit of the missionary’s activities to

strengthen the relationship between buyer and seller.
In the pharmaceutical industry, the

detailer is a fixture. Detailers working
at the physician level furnish valu-

able information regarding the
capabilities and limitations of

medications in an attempt
to get the physician to pre-
scribe their product. An-
other sales representative
from the same pharmaceu-

tical company will sell the
medication to the wholesaler or
pharmacist, but it is the detailer’s
job to support the direct sales ef-
fort by calling on physicians.

Technical specialists are sometimes considered to be
sales support personnel. These technical support
salespeople may assist in design and specification
processes, installation of equipment, training of the cus-
tomer’s employees, and follow-up service of a technical
nature. They are some-
times part of a sales
team that includes an-
other salesperson who
specializes in identifying
and satisfying customer
needs by recommend-
ing the appropriate
product or!service.

1-7d New
Business
New business is gener-
ated for the selling firm
by adding new custom-
ers or introducing new
products to the mar-
ketplace. Two types
of new-business sales-
people are pioneers
and order-getters.

Pioneers, as the
term suggests, are con-
stantly involved with
new products, new cus-
tomers, or both. Their
task requires creative

missionary salespeople
A category of sales support personnel
who are not typically involved in the
direct solicitation of purchase orders.
Their primary roles are disseminating
information, stimulating the sales
effort to convert prospects into
customers, and reinforcing customer
relationships.

detailer A category of
sales support personnel in the
pharmaceutical industry working
at the physician level to furnish
information regarding the capabilities
and limitations of medications in
an attempt to get the physician to
prescribe their product.

technical support
salespeople Technical specialists
who may assist in the design and
specification process, installation of
equipment, training of customer’s
employees, and follow-up technical
service.

pioneers Salespeople who are
constantly involved with either new
products, new customers, or both.
Their task requires creative selling and
the ability to counter the resistance to
change that will likely be present in
prospective customers.

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19CHAPTER 1: Overview of Personal Selling

selling and the ability to counter the resistance to change
that will likely be present in prospective customers. Pio-
neers are well represented in the sale of business fran-
chises, in which the sales representatives travel from city
to city seeking new franchisees.

Order-getters, also called hunters, are salespeo-
ple who actively seek orders, usually in a highly competi-
tive environment. Although all pioneers are also order-
getters, the reverse is not true. An order-getter may serve
existing customers on an ongoing basis, whereas the
pioneer moves on to new customers as soon as possible.
Order-getters might seek new business by selling an ex-
isting customer additional items from the product line.
A well-known tactic is to establish a relationship with a
customer by selling a single product from the line, then
to follow up with subsequent sales calls for other items
from the product line.

Most corporations emphasize sales growth, and
salespeople operating as pioneers and order-getters are
at the heart of sales growth objectives. The pressure
to perform in these roles is fairly intense; the results
are highly visible. For these reasons, the new-business
salesperson is often among the elite in any company’s
salesforce.

1-7e Existing Business
In direct contrast to new-business salespeople, other sales-
people’s primary responsibility is to maintain and further
cultivate relationships with existing customers. Salespeo-
ple who specialize in this role include order-takers or
farmers. These salespeople frequently work for wholesal-
ers and, as the term order-taker implies, they are not too
involved in creative selling. Route salespeople who work
an established customer base, taking routine reorders of
stock items, are order-takers. They sometimes follow a
pioneer salesperson and take over the account after the
pioneer has made the initial sale.

These salespeople are no less valuable to their firms
than the new-business salespeople, but creative selling

skills are less impor-
tant to this category of
sales personnel. Their
strengths tend to be re-
liability and competence
in ensuring customer
convenience. Custom-
ers grow to depend on
the services provided by
this type of salesperson.
As most markets are be-
coming more competi-

tive, the role of existing-business salespeople is some-
times critical to prevent erosion of the customer base.

Many firms, believing that it is easier to protect and
maintain profitable customers than it is to find replace-
ment customers, are reinforcing sales efforts to existing
customers. For example, Frito-Lay uses 18,000 route
service salespeople to call on retail customers at least
three times weekly. Larger customers see their Frito-
Lay representative on a daily basis. These salespeople
spend a lot of their time educating customers about the
profitability of Frito-Lay’s snack foods, which leads to in-
creased sales for both the retailer and for Frito-Lay.

1-7f Inside Sales
In this text, inside sales refers to nonretail salespeople
who remain in their employer’s place of business while
dealing with customers. The inside-sales operation has
received considerable attention in recent years not only
as a supplementary sales tactic but also as an alternative
to field selling.

Inside sales can be conducted on an active or passive
sales basis. Active inside sales includes the solicitation of
entire orders, either as part of a telemarketing operation or
when customers walk into the seller’s facilities. Passive in-
side sales imply the acceptance, rather than solicitation, of
customer orders, although it is common practice for these
transactions to include add-on sales attempts. We should
note that customer service personnel sometimes function
as inside-sales personnel as an ongoing part of their jobs.

1-7g Direct-To-Consumer Sales
Direct-to-consumer salespeople are the most numerous
type of salespeople. There are approximately 4.9 million
retail salespeople in this country and more than a million
selling real estate, insurance, and securities directly to
consumers. Add to this figure another several million
selling direct to the consumer for companies such as
Tupperware, Mary Kay, and Avon.

This diverse category of salespeople ranges from the
part-time, often temporary salesperson in a retail store to
the highly educated, professionally trained stockbroker
on Wall Street. As a general statement, the more chal-
lenging direct-to-consumer sales positions are those in-
volving the sale of intangible services such as insurance
and financial services.

1-7h Combination Sales Jobs
Now that we have reviewed some of the basic types of
sales jobs, let us consider the salesperson who performs

order-getters Also called
hunters, these salespeople actively
seek orders, usually in a highly
competitive environment.

order-takers Also called farmers,
these salespeople specialize in
maintaining current business.

inside sales Nonretail salespeople
who remain in their employer’s
place of business while dealing with
customers.

multiple types of sales jobs within the framework of a
single position. We use the case of the territory man-
ager’s position with GlaxoSmithKline (GSK) Consumer
Healthcare to illustrate the combination sales job
concept. GSK, whose products include Aqua-Fresh
toothpaste, markets a wide range of consumer health-
care goods to food, drug, variety, and mass merchandis-
ers. The territory manager’s job blends responsibilities
for developing new business, maintaining and stimu-
lating existing business, and performing sales support
activities.

During a typical day in the field, the GSK territory
manager is involved in sales support activities such as
merchandising and in-store promotion at the individ-
ual retail store level. Maintaining contact and goodwill
with store personnel is another routine sales support
activity. The territory manager also makes sales calls
on chain headquarters personnel to handle existing
business and to seek new business. And it is the ter-
ritory manager who introduces new GSK products in
the marketplace.

1-7i Qualifications and Skills Required
for”Success By Salespeople
Because there are so many different types of jobs in sales,
it is rather difficult to generalize about the qualifications
and skills needed for success. This list would have to vary
according to the details of a given job. Even then, it is
reasonable to believe that for any given job, different
people with different skills could be successful. These
conclusions have been reached after decades of research
that has tried to correlate sales performance with physi-
cal traits, mental abilities, personality characteristics,
and the experience and background of the salesperson.

Being careful not to suggest that sales success is
solely a function of individual traits, let us consider some
of the skills and qualifications that are thought to be
especially critical for
success in most sales
jobs. According to the
O*NET Resource Cen-
ter, a centralized source

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An enthusiastic attitude mixed with enthusiasm for sales usually will lead to great results
and!plenty of recognition.

combination sales job A sales
job in which the salesperson performs
multiple types of sales jobs!within the
framework of a single position.

21CHAPTER 1: Overview of Personal Selling

of occupational information developed by the U.S. De-
partment of Labor/Employment salespeople in a wide va-
riety of industries need these attributes to be successful.14

! Active listening—to include asking appropriate ques-
tions, and not interrupting at inappropriate times

! Service orientation—actively seeking ways to help
customers

! Oral communications skills—including persuasive
communications

! Coordination and problem solving—to include bringing
others together and reconciling differences

! Written communications skills—including computer and
other technologically facilitated communications

! Logical reasoning resulting in rational reasons to
take”action

! Strategic and organizational skills so work can be
planned and executed efficiently

! Dependability and attention to detail

! Motivation and persistence in the face of obstacles

! Integrity—honest and ethical

! Initiative—willing to take on responsibilities and
challenges

! Adaptability—open to change and devoted to
continual learning

In addition to these attributes, sales recruiters are look-
ing for enthusiastic job candidates. They are usually referring
to dual dimensions of enthusiasm—an enthusiastic attitude
in a general sense and a special enthusiasm for selling. On-
campus recruiters have mentioned that they seek students
who are well beyond “interested in sales” to the point of
truly being enthusiastic about career opportunities in sales.

Our discussion of factors related to sales success is
necessarily brief, as a fully descriptive treatment of the
topic must be tied to a given sales position. Veteran sales
managers and recruiters can often specify with amaz-
ing precision what qualifications and skills are needed
to succeed in a given sales job. These assessments are
usually based on a mixture of objective and subjective
judgments.

Professional selling offers virtually unlimited career
opportunities for the right person. Many of the skills and
qualifications necessary for success in selling are also im-
portant for success as an entrepreneur or as a leader in a
corporate setting. For those interested in learning more
about sales careers, consult these sources: Sales & Market-
ing Management magazine at http://salesandmarketing
.com; Selling Power magazine at http://sellingpower
.com; the Sales Management Association at http://www
.salesmanagement.org; and SalesHQ, an online community
for sales professionals at http://www.saleshq.monster
.com/.

The remainder of this book explores the sales process
shown in Figure 1.4. Chapter 2 discusses the important
topics of building trust and sales ethics. Chapter 3 pro-
vides in-depth coverage of buyer behavior, and Chapter 4
focuses on the communications skills necessary for sales
success. Strategic prospecting is covered in Chapter 5.
Chapter 6 covers planning value-based sales dialogue and
presentations as well as initiating contact with the cus-
tomer. Chapter 7 discusses issues that arise during sales
dialogues and presentations, and Chapter 8 discusses
how salespeople can validate customer value and earn
customer commitment. Chapter 9 focuses on how sales-
people add customer value through follow-up and self-
leadership and teamwork is covered in Chapter 10.

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1 CHAPTER CASE
LO E X P O S U R E O U T E R WA R E

B A C K G R O U N D
LoExposure Outerware, a Colorado-based company, sells
two primary product lines to specialty outdoor stores
throughout the United States. One product line, called
No-Sun, protects consumers from exposure to sunshine,
and the other (No-Cold) is functional in cold temperatures.
LoExposure has been in business for eight years, and
has become a favorite of outdoor enthusiasts who value
quality over price. Accordingly, LoExposure is among the
higher-priced suppliers in the market. LoExposure promotes
it brands through social media with avid followers on
Facebook and Instagram. Occasionally the company will use
extreme athletes to promote its brands at specific events,
but does not believe in hiring celebrity spokespersons on a
longer-term basis. LoExposure does no formal advertising or
sales promotion, preferring word-of-mouth and social media
to spread the word about its product lines.

C U R R E N T S I T U AT I O N
Kelly Kinard recently joined LoExposure as a sales
representative in Salt Lake City, Utah. Kelly’s primary
customers are outdoor specialty stores in Salt Lake City,
the university towns of Logan and Provo, and in nearby
ski areas such as Park City, Deer Valley, and Snowbird. With
the No-Cold and No-Sun product lines available, Kelly’s
potential for year-round sales is excellent. Kelly is a recent
college graduate with a degree in marketing. He had several
part-time jobs as he worked his way through college. He
also did an internship with LoExposure during his senior
year and was excited to land a full-time sales position upon
graduation. During his internship with LoExposure, Kelly
became totally sold on the quality of the products. By the
time he finished his initial product knowledge and sales
training with the company, Kelly was genuinely enthusiastic
about representing LoExpoure in his sales territory. After a
few months in the field, Kelly was doing well with existing
customers and had added several new accounts. After
a great week in the field ended with adding a new retail
account, Kelly told a friend, “this is a great job. The products
are so good, they practically sell themselves!”

Despite his success, Kelly had run into an obstacle with
UpMountain Gear Shop, a small chain with four stores in his

territory. When Kelly first began pursuing UpMountain, he
did some Web-based research on the company. Kelly found
that UpMountain was proud of its sales growth in recent
years and that the company attributed a lot its success to
providing the highest-quality products at competitive prices.
Its customers seemed very pleased according to posts on
UpMountain’s Web site and in social media. According to
Kelly’s research, UpMountain seemed concerned about the
environment, taking an especially strong stance against
the “throwaway society.” Kelly was pleased to learn these
things about UpMountain, as his company had similar views.
LoExposure also attributed its success to providing the
best customer experience possible. In addition, LoExposure
made extremely durable products backed by a generous
repair warranty that kept its products in use well beyond the
typical life span for outdoor clothing.

When Kelly first approached Amanda Wilson, the lead
clothing buyer for UpMountain, things went well. Amanda
was impressed that Kelly had done his homework on
UpMountain and pleased that the two companies shared
core values related to the customer experience and
environmentally friendly practices. In their first meeting, Kelly
had provided Amanda with an overview of his two product
lines and tried to determine what would be important to
Amanda if she were to further consider adding LoExposure
as a supplier. Amanda was open with Kelly and indicated
that she was impressed with the products, but not sure they
would fit in her stores. Near the end of their first meeting, the
following conversation took place:

Kelly: Amanda, I hope you will agree that our products fit the
bill in terms of high-quality at a competitive price.

Amanda: I agree on the high-quality piece, but am not sure
about the pricing. Our customers want high quality, but they
also want really good value.

Kelly: I understand completely and we have thousands of
customers who tell us that our products are worth the price.
And of course you know that a higher retail price means
more profits for UpMountain.

Amanda: Well, yes that’s obvious if it something we can
sustain in the long run. But if we get greedy, we can lose
those loyal customers.

Kelly: We both know that customers vote with their dollars
and we have a great record of pleasing our customers. In my

23CHAPTER 1: Overview of Personal Selling

opinion, your customers will see the value and price will not
be a major concern. Sure, you have some customers that
won’t buy our products, but those who are seeking long-
term value will gladly pay the price.

Amanda: They may be, but I am not convinced just yet.

Kelly: I know we are running out of time before your next
meeting, so could I summarize where we are for now?

Amanda: Sure, go ahead.

Kelly: You like our products, but you are not sure the price
point fits your customer base. You like the durability of our
products and the fact that we don’t sell throwaway items.
Am I right about those two things?

Amanda: No arguments from me.

Kelly: I think the only way to answer the price-point issue
is for you to give our products a try. I am sure they will sell
without any problem—let the market decide.

Amanda: Well, I am not prepared to make that decision today
and I really do need to get to my next meeting.

Kelly: Is there anything other than the price-point issue that
we need to discuss before you make a decision?

Amanda: Well, yes there is. I ask all of our suppliers to give
me a plan for how they would help drive consumer traffic
to my stores and then, through merchandising and personal
selling, help convert that traffic to sales in the store. I have
to run now, but I would be willing to meet again if you have
some concrete ideas on those topics.

Kelly: That works for me. Would 2:00 p.m. next Thursday work
for you?

Amanda: I will put it on my calendar, see you then.

Kelly left Amanda’s office with mixed feelings. It was clear
that Amanda did not think LoExposure’s products would “sell
themselves” as Kelly believed. Further Kelly was concerned

that Amanda wanted marketing ideas for driving consumer
traffic to the UpMountain stores. LoExposure did not use
traditional advertising or sales promotion. Kelly thought, “well
I am a salesperson, and I could definitely train UpMountain’s
salespeople on how to sell the products in the store. Maybe I
can come up with something on driving consumer traffic to
the stores and merchandising our products in the store.” Later
that day, Kelly scheduled a meeting with his sales manager,
Shannon Morin, to plan his upcoming meeting with Amanda.

Q U E S T I O N S
1. How would you evaluate Kelly’s performance in the

situation? Include any positive and negative aspects of
Kelly’s performance.

2. What recommendations can you make for Kelly’s next
meeting with Amanda?

R O L E P L AY
Characters: LoExposure sales representative Kelly Kinard
and his sales manager, Shannon Morin.

Scene:
Location—Shannon Morin’s office.

Action—Shannon has directed Kelly to plan for his next
sales call with Amanda at UpMountain. One step in the
planning will be to role-play with Shannon playing the role
of Amanda. In setting up the role-play, Shannon told Kelly,
“decide how you want to proceed. You should come in
with some ideas for marketing, merchandising, and in-store
selling. But there might also be some questions for Amanda
to set the stage for the rest of the sales call. I just want to
critique your first few minutes of how you plan to approach
Amanda the next time you see her.” Following the role-play,
Shannon will provide Kelly with feedback.

B A C K G R O U N D
Assume that you are seeking a job as a sales representative
with a company that you want to work for after graduation
from college. The recruiter has told you that you should
come prepared to talk about five of your attributes that
would make you a good candidate for the position. The
recruiter told you that you could pick five of your strengths
from the following list of attributes:

1. Active listening—to include asking appropriate
questions, and not interrupting at inappropriate times

2. Service orientation—actively seeking ways to help
customers

3. Oral communications skills—including persuasive
communications

4. Coordination and problem solving—to include
bringing others together and reconciling differences

5. Written communications skills—including computer
and other technologically facilitated communications

6. Logical reasoning resulting in rational reasons to take
action

7. Strategic and organizational skills so work can be
planned and executed efficiently

8. Dependability and attention to detail

9. Motivation and persistence in the face of obstacles

10. Integrity—honest and ethical

11. Initiative—willing to take on responsibilities and
challenges

12. Adaptability—open to change, and devoted to
continual learning

The recruiter told you that you will discuss your five
strengths, with one minute allowed for each strength. After
you discuss each strength, the recruiter may have questions
before you move on to the next strength until all five of your
chosen strengths have been covered.

R O L E P L AY
Situation: Before the role play, all students choose five
attributes from the list of twelve above and prepare to briefly
explain (one minute per attribute) why these attributes are
strengths for you.

Characters: There are three characters: a sales recruiter; a
student applying for a sales position; and an assistant to the
recruiter who will take notes and evaluate the job applicant’s
performance.

Scene: Commence with the exercise and, upon conclusion,
provide feedback to the job applicant. For example, did the
applicant make a convincing case? What did they do well?
What could they have done better?

Repeat the exercise until all three students have played the
role of the applicant, the recruiter, and the assistant to the
recruiter.

CHAPTER ROLE PLAY
Interviewing for a Sales Position1

25CHAPTER 1: Overview of Personal Selling

2 Building Trust and Sales Ethics
Developing Trust and Mutual Respect with!Clients

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LEARNING OBJECTIVES
After completing this chapter, you should be able to explain and understand:

2-1 What trust is.

2-2 Why trust is important.

2-3 How to earn trust.

2-4 Knowledge bases help build trust and relationships.

2-5 Sales ethics.

HOW TO ESTABLISH TRUST
The sales story I am about to relate came early in my selling career,
and was inspired by my mentor at the time. Our organization was a
small, relatively unknown medical implant company. We sold directly
to physician surgeons in the ophthalmic market. Up to this point my
selling experience had been fairly successful, and my territory sales were
growing rapidly. I had achieved a certain momentum with the sales of a
new implant product. A number of physicians in my territory had switched
from a standard product to our new design, and we were having very
good results.

THE PROBLEM PROSPECT There was, however, one
physician who did not want to see me. Every call I made
on this account would end with the nurse saying, “The
doctor is too busy to see you, and he does not see sales
representatives. Would you like to leave some literature?
I can make sure he gets it.”

Well, I left literature so many times at that office
that I could have wallpapered my apartment with it. The
doctor was obviously busy, and I knew he had a very busy
surgical practice. I really felt he would see the benefits
of using the product but I just couldn’t get in to discuss
it with him.

After finishing this chapter, go to PAGE 45 for STUDY TOOLS.

sincere, and not aggressive or pushy in any way,” my
boss said.

He taught me about the “feeling, thinking, and act-
ing self model” and I still rely on its value, particularly
when the sale involves an out-of-the ordinary approach
such as this.

This model is described in box above. To live a life
of high integrity, a salesperson must be congruent in his
feelings, thinking, and acting self.

If I feel that my potential customers will benefit
from what I have to offer, and I think I have some
valuable information to present to him with regard to
those benefits, then I will act in line with this feel-
ing and thinking, and my prospect should perceive my
integrity.

THE CALL The nursing staff at the front desk brought
me back to an exam room. There they dropped a dila-
tion drug into both my eyes. I had never had an eye
exam before and at this point I had thoughts that the
office staff and doctor were on to my scheme. The eye
drops stung and my vision was getting blurred. I thought
at any moment the doctor would walk in and say, “Hey,
nice try but don’t waste my time with stunts like this!”

THE COMPETITION’S VIEW At this point, I had tried
everything. I had stopped by at different times of the
day, tried to catch him at the end of the day, at surgery, at
lunch, on Saturday. Nothing seemed to work.

Most of the competitive sales representatives that I
talked to told me that they had given up on this doctor
because he was so difficult to see. I began to think the
same thing, and considered giving up many times. The
one thing that kept me from giving up was that I knew
how much this surgeon was respected in the medical com-
munity. I knew that if I could get this guy to try the im-
plant, he would benefit from the design, and his patients
would be happier, and he would then be happier, and he
would tell others.

MANAGEMENT SAYS… My boss suggested that I
book an eye exam with this doctor, and see him that way.
My initial response was that this approach would be too
aggressive and not at all in line with my ethics or per-
sonal selling style.

Despite my feelings, I decided to attempt it. My
boss told me that as long as my intentions were true,
and my integrity was congruent, my message would be
heard by the doctor. “He will see your intentions are

27CHAPTER 2: Building Trust and Sales Ethics

I’m afraid that these thoughts were only in my imag-
ination. My pain was causing all sorts of negative think-
ing. But I wiped the negative thought out of my head
and proceeded to relax and wait for the doctor to come
in and examine my eyes.

In a short while the doctor did come in, and in-
troduced himself. He sat down at my side to look into
my eyes. I thought it best to confess first and try to sell
later, so I began, “Well, doctor, I have a confession to
make. I’m really not here to have my eyes examined.
My eyes are just fine, that is they will be fine again,
after these drops wear off. My name is Jay Greiling. I
represent Eye Technology, and this is the only way I
thought I could introduce myself and my product to
you. Your schedule is very busy, and I assure you I will
take no more time than it would have taken for you to
see me today as a patient. I will also pay for the time as
if it were an eye exam. My intentions are not to waste
your time or earnings from your day of work in the
office.”

I spoke as quickly as I could. All the while I was talk-
ing, I was observing the doctor’s body language and ver-
bal response. During my speech, I also presented him
with my sales literature. My sales presentation started
with some open-ended questions, and followed along in
a usual format.

At first he seemed shocked, then surprised that
someone would go to this trouble to see him. At times
I felt he might be getting upset about the whole idea.
However, I proceeded with the knowledge that my in-
tentions were good, and I had nothing to lose and ev-
erything to gain. I was determined to make him glad

that I had called on
him, even if it was in
this unusual manner.

After my usual
presentation, I closed
with a very sincere
“Thank you” and asked
for the opportunity to
follow up with another
sales call. He said that
he would look over the
literature and read the
testimonials that I had
presented him. He did
not consent to a sales
call, but did thank me
for the information
while he walked me to

the front of the office. He told the receptionists at the
front desk that there was no charge, and said “Good-
bye.”

THE RESULT I walked out of that call feeling rather
good about the result. I felt I had established some be-
ginning level of trust at least toward my intentions. I
wanted that sales call though, and I was not sure what
the response might be on my next visit.

I decided to pursue a different tact. In my sales pre-
sentation, the doctor had responded to one of the testi-
monials I showed him. He told me that he had a great
deal of respect for one of the doctors who had written a
testimonial for my product.

I called the doctor and asked him to call my pros-
pect directly and talk to him about the use of our implant
in surgery. I did some selling here, too. Physicians don’t
always like to place calls of this nature to professional
colleagues.

The end result was that the follow-up strategy
worked. The trust may have first started with the physi-
cian from the testimonial, but my personal trust with the
doctor was improved with that phone call. The physician
turned out to be one of my best customers, and we later
talked about my presentation and sales call that began as
an eye appointment. The trust was established through a
high level of integrity at the start.

We’ve all heard that saying that nothing happens
until someone sells something. That is true, but nothing
gets sold until someone trusts first.

Remember to evaluate yourself on the integrity
model, and plan a strategy, that develops, trust in at
least one area of the sales relationship, and you can suc-
ceed even in the most unusual circumstances and selling
situations.

Jay Greiling

The extent of the buyer’s confidence in the salesperson’s
integrity is known as trust. But trust can mean different
things to different people. According to John Newman,1
vice president of the Integrated Supply Chains Seg-
ment at A. T. Kearney, trust is defined in many ways.
Buyers define trust with such terms as openness,
dependability, candor, honesty, confidentiality,
security, reliability, fairness, and predictability.2
For example, in a Kearney study, one manufacturer
related trust to credibility: “What trust boils down to, in
a nutshell, is credibility, and when you say you are going
to do something, you do it, and the whole organization
has to be behind that decision.” Another manufacturer

trust The extent of the buyer’s
confidence that he or she can rely on
the salesperson’s integrity.

openness Completely free from
concealment: exposed to general view
or knowledge.

honesty Fairness and
straightforwardness of conduct.

confidentiality The state of
being entrusted with information from
a buyer that cannot be shared.

security The quality of being free
from danger.

reliability Consistency of a
salesperson over time to do what is right.

fairness Impartiality and honesty.

Trust means di!erent things to di!erent people. Trust can be developed by using any of the trust builders. It is the salesperson’s
job through questioning to determine what trust attributes are critical to relationship building for a specific buyer.

FIG. 2.1 TRUST BUILDERS

Expertise

Customer
Orientation

Dependability

Candor

Compatibility

Trust

related trust to confidentiality in that “they were afraid
that the sales guys were going around and telling ac-
count B what account A is doing,” which was identified
as a violation of trust. Another company related trust to
openness, claiming “we have to share information that
traditionally is not shared.” One president told how
his engineers were sharing manufacturing secrets with
their suppliers that would have cost the engineers their
jobs five years earlier.3

Research reveals that little is known about what on-
going behaviors (i.e., service behaviors) salespeople can
employ to satisfy and build trust with customers.4 Recent
research shows that consultative tasks and personal rela-
tionship behaviors play a vital role in influencing buyer
perceptions, trust, and relationship loyalty.5 A salesper-
son has to determine what trust means to each of his or
her buyers, as shown in Figure 2.1. If it is confidentiality,
then the salesperson must demonstrate how his or her
company handles sensitive information. If credibility is
the concern, then the salesperson must demonstrate that
all promises will be kept. Therefore, the buyer defines
trust; it is the salesperson’s job through questioning to
determine what trust attributes are critical to relation-
ship building for a specific buyer.

In this chapter, we first discuss the meaning of trust
in the sales context. Next, we explore the importance of
trust to salespeople. This is followed by a discussion of
how to earn trust and what knowledge bases a salesper-
son can use to build trust in buyer–seller relationships.
Finally, we review the importance of sales ethics in
building trust.

2-1 WHAT IS TRUST?
Trust is earned when an industrial buyer believes and
can rely on a salesperson’s claims or promises when the
buyer is dependent on the salesperson’s honesty and reli-
ability.6 One of the keys to a long-term relationship with
any client is to create a basis of trust between the sales
representative and the client organization.7

Thus, gaining trust is essential in order to be seen
as a reliable salesperson. Long-term sales success in
any industry will generally be built on the concept of
referral, in which trust plays an important role. Others
argue that truthfulness is valuable for its own sake
and instrumental to other goals, such as improved
long-term relationships.8 Clients obviously seek a
salesperson they can trust. The problem is, depend-
ing on the industry and the situation, previous bad
experiences might make them wary of future partners.
Consultative salespeople are in a unique position to
capitalize on building credibility with customers who
place a high value on trust. Customers are looking for
trustworthy business partners but may have difficulty
trusting most salespeople; the salesperson should
recognize this as an opportunity. Brittany Gardner,
a recent college graduate, discusses the importance
of trust during her brief sales career. (See From the
Classroom to the Field.)

The “trust” described here is beyond the typical
transaction-oriented trust schema. Many issues—Will the
product arrive as promised? Will the right product actually

29CHAPTER 2: Building Trust and Sales Ethics

be in stock and be shipped on time? Will the invoice con-
tain the agreed-on price? Can the salesperson be found if
something goes wrong?—are only preliminary concerns.
In relationship selling, trust is based on a larger set of fac-
tors due to the expanded intimacy and long-term nature
of the relationship. The intimacy of this relationship will
result in both parties sharing information that could be
damaging if leaked or used against the other partner.

Trust answers the questions:

1. Do you know what you are talking about?—
competence; expertise

2. Will you recommend what is best for me?—
customer orientation

3. Are you truthful?—honesty; candor

4. Can you and your company back up your
promises?—dependability

5. Will you safeguard con!dential information
that I share with you?—customer orientation;
dependability

Trust is an integral part of the relationship between
customers and suppliers and results in increased long-term
revenues and profits.9 In addition, a salesperson’s ethical
behaviors have an impact on his or her performance.10

2-2 WHY IS TRUST IMPORTANT?
In today’s increasingly competitive marketplace, buyers
typically find themselves inundated with choices regard-
ing both products and suppliers. In this virtual buyers’
market, traditional selling methods that focused on clos-
ing the sale have been found to be inefficient and often
counterproductive to the organization’s larger, longer-
term marketing strategy. In this new competitive envi-
ronment, buyers are demanding unique solutions to their
problems—product solutions that are customized on the
basis of their particular problems and needs. Additionally,
the adversarial, win–lose characteristics so customary in
traditional selling are fading fast. In their place, long-term
buyer–seller relationships are evolving as the preferred
form of doing business. Although buyers are finding it
more effective and efficient to do more business with few-
er suppliers, sellers are finding it more effective to develop
a continuing stream of business from the right customers.
Such long-term relationships develop mutually beneficial
outcomes and are characterized by trust, open communi-
cation, common goals, commitment to mutual gain, and
organizational support.11 Additionally, recent research has
shown perceived ethical treatment has been positively re-
lated to trust in a salesperson and purchase intentions, and
trust has been positively related to purchase intentions.12

This shift toward relationship selling has altered both
the roles salespeople play and the activities and skills
they exercise in carrying out these roles—the selling pro-
cess itself. Today’s more contemporary selling process is

A short time ago, Brittany Gardner (2016 Graduate) was
in the classroom at Ball State University learning about
trust and ethics in sales. Today, Brittany is with Cintas and
here are her thoughts about ethics in her sales career.

“My professors in college stressed the importance
of trust and ethics in my classes. It has not taken me
long to determine how important trust is in my day-
to-day activities. It’s not only critical but vital to my

success. Clean uniforms on time, document shredding
done correctly, bathrooms cleaned at the highest level
possible is what Cintas does. Customers count on us
to do what we say we are going to do. Too much is at
stake with each client if we fail them by not keeping
our promises. I can’t let my customers down; being
trustworthy is a major part of what I do.”
Brittany Gardner

Trust is an integral part of the
relationship between customers

and suppliers.

From the Classroom
to the Field

embedded within the relationship marketing paradigm. As
such, it emphasizes the initiation and nurturing of long-
term buyer–seller relationships based on mutual trust and
value-added benefits. As Sean Wheat emphasized in the
opening vignette, it is difficult for a salesperson to build
a relationship or sustain trust with a prospect or client if
they are misrepresenting themselves or their company by
answering a question they don’t know the answer to. The
level of problem-solving activity common to relationship
selling requires deliberate and purposeful collaboration
between both parties. These joint efforts are directed at
creating unique solutions based on an enhanced knowl-
edge and understanding of the customer’s needs and the
supplier’s capabilities so that both parties derive mutual
benefits. The nature of this integrative, win–win, and col-
laborative negotiation relies on augmented communication
and interpersonal skills that nurture and sustain the recip-
rocal trust that allows all parties to share information fully
and work together as a strategic problem-solving team.

The skills and activities inherent to relationship
selling can be classified according to their purpose
as (1)! initiation of the relationship (Chapters 5 and 6);
(2) development of the rela-
tionship (Chapters 7 and 8);
and (3) enhancement of the
relationship (Chapters 9 and
10). As the activities compris-
ing the selling process have
changed, so too have the relative importance and degree
of selling effort devoted to each stage of the process.

2-3 HOW TO EARN TRUST
Trust is important to any relationship. Several critical
variables help salespeople earn a buyer’s trust, such as
expertise, dependability, candor, customer orienta-
tion, and compatibility. The importance of each is briefly
discussed.

2-3a Expertise
Inexperience is a difficult thing for a young salesperson
to overcome. Most recent college graduates will not have
the expertise to be immediately successful, especially in
industrial sales. Companies spend billions of dollars to
train new recruits in the hope of speeding up the ex-
pertise variable. Training to gain knowledge on com-
pany products and programs, industry, competition, and
general market conditions are typical subjects covered
in most sales training programs. Young salespeople can

shadow more experienced salespeople to learn what it
takes to be successful. They must also go the extra mile
to prove to their customers their dedication to service.
For example, Karl Decker, a sales rep for Stryker Neuro/
Spine for five years, has witnessed over four hundred

hip replacements. Karl is in
the operating room to an-
swer the orthopedic surgeons’
questions and to assist in the
fitting of the hip. Sizing the ti-
tanium rod that goes into the
femur and the polyurethane

ball that goes into the socket are critical for success in a
hip replacement. Karl must be available for emergency
surgeries and several of these have taken place at 3:00
or 4:00 “.#.

Another factor to consider is that many organiza-
tions have recently been downsized, thus dramatically
cutting the purchasing area in terms of both personnel
and support resources. As a result, buyers are having to
do more with less and, as such, are thirsty for expertise,
be it current insights into their own operations, financial
situation, industry trends, or tactical skills in effectively
identifying emerging cost-cutting and revenue opportu-
nities in their business. Of course, expertise will be even
more critical with certain buyers who are technical, de-
tail-driven, and/or just uninformed in a certain area.

Salespeople should strive to help clients meet their
goals. As an example, individuals or business owners can
go online and trade stocks for themselves, but if they think
a financial planner or securities company is more knowl-
edgeable and brings
more expertise to the
table, then they will em-
ploy him or her.

A salesperson can build trust by
demonstrating dependability when

assisting in an order delivery.

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om

A salesperson can build trust by
demonstrating dependability when
assisting in an order delivery.

expertise The ability, knowledge,
and resources to meet customer
expectations.

31CHAPTER 2: Building Trust and Sales Ethics

Today’s buyers will respond positively to any attempts
to assist them in their efforts to reach bottom-line objec-
tives, be it revenue growth, profitability, or financial or
strategic objectives. Thus, “expertise” will take on an even
more important role in the customer’s assessment of the
seller’s credibility. For some buyers, especially those with
economic or financial responsibilities (e.g., CFO, treasur-
er, owner-manager), a representative’s ability to “contrib-
ute” to the bottom line will dominate the perception of a
seller’s credibility. This is a very important consideration
for salespeople, given their pivotal strategy of penetrat-
ing accounts at the economic buyer level. Salespeople are
seeking to convince clients that they are (1) actively dedi-
cated to the task of positively influencing their bottom-
line objectives and (2) capable of providing assistance,
counsel, and advice that will positively affect the ability to
reach objectives.13 This is easier said than done because
salespeople frequently do not understand the long-term
financial objectives of their client.14

Buyers today want recommendations and solu-
tions, not just options. Salespeople must be prepared
to help their clients meet their goals by adding value.

Buyers are continually asking themselves whether
or not the salesperson has the ability, knowledge, and
resources to meet his or her prospective customers’
expectations. Not only are salespeople selling their
knowledge, but also the entire organization and the
support that they bring to the buyer. Does the sales-
person display a technical command of products and
applications (i.e., is he or she accurate, complete, ob-
jective)? During one sales call, a buyer asked about a
specific new product that the company was promoting
in its advertising. The salesperson responded that the
product was launched before he was trained on it. This
not only casts doubt on the salesperson’s ability but also
on the company for failing to train the salesperson.

Expertise also deals with the salesperson’s skill,
knowledge, time, and resources to do what is promised
and what the buyer wants. Customers from small ac-
counts must think that they are being treated as well as
customers from large accounts and have access to the
same resources.

Salespeople must exhibit knowledge generally ex-
ceeding that of their customer, not just in terms of the
products and services they are selling but in terms of

the full scope of the customer’s financial and business
operations (e.g., products, programs, competitors, cus-
tomers, vendors). They must bring skills to the table,
be it discovery, problem solving, program and systems
development, financial management, or planning. These
skills must complement those of the customer and offer

Salespeople must be prepared to
update their customers on product

upgrades or industry trends.

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Salespeople must be prepared to update
their customers on product upgrades or
industry trends.

Selling in Action
The Importance of Intent
Nathan Schmidt, Senior Sales Representative for PCE
Insurance in Muncie, IN, talks about the importance
of building long-term relationships. Nathan says, “it is
critically important for me to build trust with each client
and transform this trust into long-term partnerships.
My goal must be to not only build trust but also long-
term relationships. It is important that I have a customer
orientation. I think sales has everything to do with
“intent.” If my clients think my “intent” is to sell them
something on each sales call, then it will be difficult
for me to grow the relationship. If my client believes
my “intent” is to help them reduce their stress with
their insurance needs, then I will have an opportunity
to enhance the relationship. Then if I have a strong
customer orientation and my intent is to help, then my
chances of success will have gone up dramatically.”

insight into the best practices in the customer’s indus-
try. It is not enough to be an expert. This expertise must
translate into observable results and contributions for
the buyer.

2-3b Dependability
Dependability centers on the predictability of the
salesperson’s actions. Buyers have been heard to say, “I
can always depend on her. She always does what she
says she is going to do.” Salespeople must remember the
promises they make to a customer or prospect. Once a
promise is made, the buyer expects that promise to be
honored. The buyer should not have to call the salesper-
son to remind him or her of the promise. The salesper-
son should take notes during all sales calls for later re-
view. It is harder to forget to do something if it is written
down. A salesperson is trying to establish that his or her
actions fit a pattern of prior dependable behavior. That
is, the salesperson refuses to promise what he or she can-
not deliver. The salesperson must also demonstrate an
ability to handle confidential information. Buyers and
sellers depend on each other to guard secrets carefully
and keep confidential information confidential!

2-3c Candor
Candor deals with the honesty of the spoken word. A sales
manager was overheard telling his salesforce “whatever
it takes to get the order.” One of the salespeople replied,
“Are you telling us to stretch the truth if it helps us get the
order?” The manager replied, “Of course!” The trustworthy
salesperson understands doing “anything to get an order”
will ultimately damage the buyer–seller relationship.

Salespeople have more than words to win over the
support of the buyer; they have other sales aids such as
testimonials, third-party endorsements, trade publica-
tions, and consumer reports. The salesperson must be
just as careful to guarantee that the proof is credible. It
takes only one misleading event to lose all credibility.
Nathan Schmidt, Senior Sales Representative for PCE
Insurance, talks about the importance of “intent” and
how he uses it to build trust and long-term relationships.
(See Selling in Action: The Importance of Intent.)

2-3d Customer Orientation
Customer orientation means placing as much em-
phasis on the customer’s interests as you would on your
own. An important facet of customer orientation is that
salespeople work to satisfy the long-term needs of their
customers rather than their own short-term goals.

A salesperson who has a customer orientation gives
fair and balanced presentations. This includes covering
both the pros and cons of the recommended product.
The pharmaceutical industry has done a good job under-
standing this principle, as many firms require their sales-
people to describe at least one side effect of their drug
for each benefit given. This is done not only because of
the legal consideration but also to demonstrate exper-
tise and trustworthiness to the physician. Traditional
salespeople often ignored negative aspects of a product,
which can turn off many buyers. A customer orientation
should also include clear statements of benefits and not
overpower the buyer with information overload.

Salespeople must truly care about the partnership,
and they must be willing to “go to bat” for the client
when the need arises. A warehouse fire left one compa-
ny without any space to store inventory. The salesperson
worked out same-day delivery until the warehouse was
rebuilt. This left a lasting impression on the buyer. They
knew that if!they ever needed any help, their salesperson
would come through for them.

Salespeople must be fully committed to represent-
ing the customer’s interests. Although most salespeople
are quick to “talk the talk” about their absolute allegiance
to their customer’s interests, when it comes to “walking
the walk” for their customer on such issues as pricing,
production flexibility, and design changes, many lack the
commitment and/or skills necessary to support the inter-
ests of their clients.

To be an effective salesperson and gain access to a cus-
tomer’s business at a partnership level, the client must feel
comfortable with the idea that the salesperson is motivated
and capable of representing his or her interests. Exhibit 2.1
looks at some of the questions salespeople need to answer
satisfactorily to gain the buyer’s trust and confidence.

2-3e Compatibility/Likability
Customers generally like
to deal with sales repre-
sentatives they know,
they like, and with whom
they can feel a bond.
Gary Schliessman of
Gary Schliessman and
Associates states that
his best friends are his
clients. He takes an an-
nual trip to walk the Ap-
palachian Trail with one
of his clients. Another
favorite activity is to take

contributions Something given to
improve a situation or state for a buyer.

dependability Predictability of!a
person’s actions.

predictability A salesperson’s
behavior that can be foretold on the
basis of observation or experience by
a buyer.

candor Honesty of the spoken word.

customer orientation
The act of salespeople placing as
much emphasis on the customer’s
interests as their own.

33CHAPTER 2: Building Trust and Sales Ethics

Isaiah Thompson was in his first year as a sales rep for
a large pharmaceutical company. His company had
two new products coming out. He had been calling on
a number of offices in the Dallas area. One of his big
doctors’ offices had been particularly troublesome for
him. He has been calling on the gatekeeper and had
been having quite a bit of trouble getting his foot in
the door to see doctors, nurses, and nurse practitioners.
It is an industry practice to serve lunch to the doctors
and staff; it is a good way to meet everyone and to set
an appointment to present key product information,
particularly new products during the lunch. The recep-
tionist said lunches were booked for the rest of the year
and he’d have to inquire again in three to four months.
Just as Isaiah was about to leave, the receptionist made
Isaiah an interesting proposition. A new high-end fancy
restaurant, Christine’s, had just opened down the street.
If Isaiah was willing to cater from there, the receptionist
could work him in within two to three weeks.

Isaiah really wanted to get in front of this group of
doctors but he knew if he catered from this restaurant,
he’d use all of his budget money for lunches for the rest
of the year. Isaiah already has three lunches sched-
uled with other offices that must be paid for out of his

budget. Isaiah is worried the other offices will hear that
he catered rom Christine’s and will expect the same.

What should Isaiah do?
(A) Go ahead and schedule the lunch. He needs to get

in to see these doctors.
(B) Politely tell the receptionist he will be back in three

months.
(C) Talk to his boss about the situation and see if there

is more money available so he can pay for all the
scheduled lunches?

An Ethical Dilemma

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Exhibit 2.1

Questions That Salespeople Need to Answer
Satisfactorily to Gain a Buyer’s Trust

Expertise: Does the salesperson know what he or she needs to know? Does the salesperson and his or her
company have the ability and resources to get the job done right?
Dependability: Can I rely on the salesperson? Does the salesperson keep promises?
Candor: Is the salesperson honest in his or her spoken word? Is the sales person’s presentation fair and balanced?
Customer Orientation: Does the salesperson truly care about the partnership? Will the salesperson go to bat for
the customer (e.g., wrong order, late delivery)?
Compatibility: Will the buyer like doing business with the salesperson? Will the buyer like doing business with
the”salesperson’s company?

biking trips with his customers that like to ride. He enjoys
these activities and learns something new about his clients
on each trip. He goes on to state, “Not all of my clients
have the same interests that I do, but the ones that do are
especially fun to do business with. I believe that compat-
ibility does play a big role in my success.”15

Some salespeople are too quick to minimize the im-
portance of rapport building in this era of the economic
buyer. It may also be true that today’s buyers are not as
prone to spend time discussing personal issues in sales
calls as they might have been 10 or 15!years ago. Salespeo-
ple today have to be more creative and resourceful when
attempting to build rapport. It is not unusual for a phar-
maceutical salesperson to take lunch for the entire staff
into a physician’s office. These lunches can be for as many
as 20 to 40 people. The salesperson now has time to dis-
cuss his or her products over lunch to a captive audience.

Salespeople have to be aware that their buyers are un-
der considerable time pressure and that some will find it
difficult to dedicate time to issues outside of the business.
However, remember that buyers are human and do value
compatibility, some more, some less.

Compatibility and likability are important to es-
tablishing a relationship with key gatekeepers (e.g., recep-
tionists and secretaries). First impressions are important,

and a salesperson’s ability to find commonalities with these
individuals can go a long way in building much-needed
allies within the buying organization. Likability is admit-
tedly an emotional factor that is difficult to pin down, yet
it is a powerful force in some buyer–seller relationships.
“An Ethical Dilemma” on page 34 demonstrates the chal-
lenges salespeople might face when trying to build key
relationships with potential clients.

If a salesperson has done a good job of demonstrat-
ing the other trust-building characteristics, then com-
patibility can be used to enhance trust building. Buyers
do not necessarily trust everyone they like. However, it is
difficult for them to trust someone they do not like.

2-4 KNOWLEDGE BASES
HELP BUILD TRUST
AND!RELATIONSHIPS

The more the salesperson knows, the easier it is to build
trust and gain the confidence of the buyer. Buyers have
certain expectations of the salesperson and the knowl-
edge that he or she brings to the table. As outlined in Fig-
ure 2.2, salespeople might draw from several knowledge
bases. Most knowledge
is gained from the sales
training program and
on-the-job training.

The more the salesperson knows, the easier it is to build trust and gain the confidence of the buyer. Buyers have certain
expectations of the salesperson and the knowledge that he or she brings to the table. Most knowledge is gained from the
sales training programs and on-the-job training.

FIG. 2.2 KNOWLEDGE BASES

Technology

Competitor

Market/
Customer

Knowledge Price
Promotion

Service

Product

Company

Industry

Possible
Knowledge

Bases

compatibility/likeability
A salesperson’s commonalities with
other individuals.

Good salespeople are never in
a hurry to earn commitment!

35CHAPTER 2: Building Trust and Sales Ethics

Sales training will generally concentrate on knowl-
edge of the industry and company history, company poli-
cies, products, promotion, prices, market knowledge of
customers, competitor knowledge, and basic selling
techniques. Exhibit!2.2 summarizes topics generally cov-
ered during initial sales training programs.

2-4a Industry and Company
Knowledge
Salespeople may be asked what they know about their

company and indus-
try. Every industry and
company has a history.
The personal computer

industry has a short history of 35 years; fax technology,
even shorter. Other industries have been around for
centuries. Some industries change so quickly, such as
the pharmaceutical industry through multiple mergers,
that it is critical for the salesperson to know his or her
industry to keep physicians informed on new companies,
drugs, and procedures. Many buyers are too busy to stay
informed and count on their salespeople to help them
make sound decisions.

Salespeople should be familiar with their own
company’s operation and policies. Buyers might ask
the salesperson questions such as: How long has your
company been in the market? How many people does
the company employ? Does the company have a local,
regional, national, or!international customer base? Who
started the company? Who is the president? CEO?
What!is their market share? What is!their market share
on this particular product? Salespeople who could not
answer such questions would not inspire the trust of
the buyer.

Each company initiates policies to ensure consistent
decisions are made throughout the organization. An or-
ganization implements policies to control factors such as
price, guarantees, warranties, and how much to spend
per week taking clients out to lunch. Knowing the com-
pany’s policies prevents a misunderstanding.

For example, if a representative says a customer can
return goods 60 days after receipt when company policy
is 30!days, the shipping department might refuse to ac-
cept the returned merchandise. The salesperson looks
incompetent to both sales management and the custom-
er. If the customer is not allowed to return the goods to
the factory, the angry customer probably will never buy
from the salesperson again.

Salespeople must understand their company poli-
cies. This includes being familiar with the company’s
formal structure and key personnel. It is important to
work as a team with all company personnel. This helps
build team spirit and a willingness to cooperate when a
salesperson needs help in meeting a customer’s need.
It is difficult to provide outstanding service when the
sales department is not on good terms with shipping and
delivery.

Exhibit 2.2

Topics Generally Covered During
Initial Sales Training Programs

! Industry history
! Company history and policies
! Product

! promotion

! price
! Market

! line of business (know your customer)

! manufacturing

! wholesaling

! !nancial

! government

! medical, etc.
! Competitive knowledge
! Selling techniques
! Initiating customer relationship

! prospecting

! precall

! approaching the customer
! Developing customer relationships

! sales presentation delivery

! handling sales resistance
! Enhancing customer relationships

! follow-up

! customer service

Companies provide extensive
training to be sure they

send knowledgeable sales
representatives into the field.

competitor knowledge
Knowledge of a competitor’s strengths
and weaknesses in the!market.

2-4b Product Knowledge
Product knowledge includes detailed information
on the manufacturer of a product and knowing whether
or not the company has up-to-date production methods.
What materials are used when making the products?
What quality control procedures are involved? Who are
the design engineers?

Salespeople representing their company are expect-
ed to be experts on the products they sell. The fastest
way to win the respect of a buyer is to be perceived as
being an expert. If the buyer truly feels the salesperson
knows what he or she is talking about, then the buyer will
be more willing to discuss the salesperson’s solution to
the buyer’s problems or opportunities.

The salesperson must know what his or her product
can and cannot do. Just knowing product features is in-
sufficient.

2-4c Service
The effective salesperson must be ready to address
service issues such as:

! Does the company service its products or does the
company send them to a third party?

! Does the company service its products locally or send
them off to another state for service?

! Does the price include service or will there be a service
charge when service is needed?

! What does the service agreement include? Shipping?
Labor? Or neither of these?

! How long does the service generally take? Same day?
Within a week? Will a loaner be provided until the
product”is fixed?

! Are there any conditions that make service not available?
After five years? Damage from flood? From fire?

Buyers need to be comfortable answering these
questions, and a good salesperson will make sure they
are answered appropriately.

Darrell Beaty from Ontario Systems in Muncie,
Indiana, spends quite a bit of time discussing service
with each of his prospects.16 His company sells collec-
tion software (i.e., receivables) that requires support
from his field engineers. Ontario Systems also has a sup-
port group that takes calls 24 hours a day, seven days a
week. Why is this important to Beaty? One of his major
competitors also has a support group, but only 8 “.#. to
5!$.#., Monday through Friday. Beaty knows that he has
service superiority. Salespeople who can offer the better
service have an advantage for generating new business
and taking away business from the competition. The

salesperson’s service mission is to provide added value
for the customer. It is important for the salesperson to
understand what service dimensions concern the buyer.

For instance, delivery, installation, training, field
maintenance, and investing are all issues that a salesper-
son might be prepared to talk about. Buyers, however,
might be concerned only with inventory because their
current supplier runs out of stock frequently.

Exhibit 2.3 reviews service dimensions in which a
salesperson could demonstrate service superiority. Ad-
ditions can be made depending on specific customer
demands.

2-4d Promotion
and”Price
Promotion knowledge
and price knowledge
are other knowledge tools
that the salesperson must
understand. The ability
to use this knowledge of-
ten makes the difference
between a well-informed
buyer who is ready to
make a decision and an-
other buyer who is re-
luctant to move the sales
process forward. Hershey

product knowledge
Detailed information on the
manufacture of a product and
knowing whether the company has
up-to-date production methods.

service issues Concerns of
the!buyer that the salesperson
should address.

promotion knowledge
Knowledge tools salespeople must
possess to explain their firms’
promotional programs.

price knowledge
Knowledge tools salespeople must
have about pricing policies in order
to quote prices and offer discounts
on products.

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Promotional programs must be explained
properly so the buyer can place the correct
order size during the promotion.

37CHAPTER 2: Building Trust and Sales Ethics

Foods Corporation supports its retailers with heavy
promotions during Halloween, Christmas, and Easter.
The promotional programs must be explained properly
so the buyer can place the correct order size during the
promotion. How many dollars are to be spent? Is it a
national program? Is this a co-op program? What will it
cost the buyer? If these questions are answered prop-
erly, the buyer will be more at ease and ready to make
a!purchase.

Price can be another area that makes a buyer hesi-
tant if not properly explained. Knowledge of pricing
policies is important because the salesperson is often re-
sponsible for quoting prices and offering discounts. As
a representative of the selling firm, these quotes legally
bind a company to their completion.

Salespeople need complete understanding of their
companies’ pricing poli-
cies. Does the company
sell its products for a set
price or can the sales-
person negotiate? Can
the salesperson give ad-
ditional discounts to get
a potential client whom
the company has been
after for years? Does
the company allow
trade-ins?

2-4e Market and Customer
Knowledge
Market knowledge and customer knowledge are
critical to the success of today’s salesperson. Some com-
panies today, because of their size, send their salesforce
out to call on all customer types. Larger companies typi-
cally break their customers into distinct markets. Com-
puter manufacturers may break out their customer types
by markets (i.e., salespeople sell to a particular line of
business). For instance, the salesperson may sell only to
manufacturers, wholesalers, financial institutions, gov-
ernment, education, or medical companies. This allows
the salesperson to become an expert in a line of business.
For a salesperson to be effective, the salesperson must
learn what the client needs, what benefits the client is
seeking, and how the salesperson’s products satisfy the
buyer’s specific needs. Buyers are not interested in fac-
tual knowledge unless it relates to fulfilling their specific
needs. Having the salesforce learn one line of business
well allows the salesperson to concentrate on the needs
of a specific market. The salesperson can become an ex-
pert in one line of business more quickly than if he or
she had to know how the entire marketplace used the
salesperson’s products.

Information about customers is gathered over time
and from very different sources. A salesperson can use
trade associations, credit agencies, trade magazines,

Exhibit 2.3

Service Superiority
Dimension Potential Superiority

1. Delivery Can our company demonstrate speed? Deliver more often?

2. Inventory Can we meet the demands of our customers at all times?

3. Training Do we o#er training? At our site? At our customer’s?

4. Field maintenance Do we go to the !eld to !x our products? Do our customers have
to bring their equipment to us to !x?

5. Credit and !nancial consideration Do we grant credit? Do we help !nance?

6. Installation Do we send a team to your site for start-up?

7. Guarantees and warranties What are our guarantees? How long? What do we cover?

8. Others Do we o#er anything unique that our competition does not?

market knowledge
Information salespeople must have!if
larger companies break their customers
into distinct markets; salespeople must
be familiar with these markets to tailor
their sales presentations.

customer knowledge
Information about customers
that!is!gathered over time and
from!very different sources that helps
the salesperson determine customer
needs to better serve!them.

trade directories, newspapers, and the World Wide Web
as valuable resources. The AT&T Toll-free Internet Di-
rectory has directories on people, businesses, and Web
sites. Using the Web to do an initial search on a company
can tell a salesperson what products a company makes,
what markets they serve, and so on. A salesperson must
use his or her time wisely when gathering information.
Richard Crist, COO, Whitinger & Company, states, “I
have to thoroughly know my industry and my customer’s
business. I must know where to find this information.”

2-4f Competitor Knowledge
Salespeople will probably be asked how their product
stands up against the competition. The buyer might
ask—Who are your competitors in our marketplace?
How big are you compared with your competitors?
How do your company’s prices compare with others in
your industry? How does your product quality compare
with the industry norm? These are important questions

that every salesperson must be prepared to answer.
Salespeople must have knowledge of their competitor’s
strengths and weaknesses to better understand their
own products’ position when comparing. A good sales-
person must adjust his or her selling strategy depending
on the competition.

Salespeople must be able to deliver complete com-
parative product information in a sales presentation.
Comparisons of competitors’ products for a customer’s
decision are critical, especially when your features and
benefits are superior to those of the competition.

It is important that salespeople distinguish their
products from the competition. The ultimate question a

Technology in Selling
GPS Tracking Systems
Global Positioning System (GPS) tracking systems are
intended for tracking both automobiles and salespeople.
Employed as part of a sales fleet’s management strategy,
GPS systems are able to improve sales force effectiveness
and minimize costs. GPS systems allow a company to
monitor the salespeople wherever they may be.

The benefits to a company using GPS to track their
sales force are numerous: quick recovery of stolen vehicles
(keep insurance costs down), helps salespeople plan their
routes effectively, ensures that the sales force is taking
the most effective routes, and GPS systems can alert the
company and emergency responders if a salesperson’s
automobile is involved in a road traffic incident.

Modern technologies like GPS have been designed
to make a salesperson’s driving more efficient and
much safer.

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Salespeople must be well versed
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them effectively to build a bridge

to the buyer.

39CHAPTER 2: Building Trust and Sales Ethics

buyer asks is—Why should I use your product over the
one I am currently using? A salesperson must have com-
petitive knowledge to answer this question. What are the
competitor’s relative strengths and weaknesses? What
weaknesses make this competitor vulnerable? Once the
salesperson can determine the competitor’s limitations,
the salesperson can demonstrate the superiority of his or
her product. A salesperson must answer the questions—
How are you different from the competition? How are
you better than the competition? A salesperson must
be able to determine his or her differential competitive
advantage.

2-4g Technology Knowledge
Salespeople must use technology knowledge to
their advantage. Twenty years ago, salespeople had to
know where a reliable pay phone was located in each
of the cities they visited. Many opportunities were
missed because salespeople could not reach prospects
while they were in the field. Today’s salesperson has
the luxury of smartphones, facsimile technology, the
World Wide Web, voice mail, and e-mail. Salespeople
should communicate in the manner their prospects and
clients prefer. Some clients use e-mail extensively and
want to use e-mail over phone conversations. Some
buyers like to fax orders in and would rather not meet

the salesperson face
to face. A good sales-
person must recognize
these preferences and

act accordingly. Each of these can either be a bridge
to the customer or an obstacle. Salespeople should be
building bridges to all their prospects and customers
by using technology appropriately (see Exhibit 2.4). If
a buyer likes to e-mail requests to a salesperson, then
the salesperson must not use e-mail to block buyers.
Likewise, if a facsimile number is given to prospects,
then the fax machine must be turned on at all times and
working properly.

Probably the most oversold form of technology is
voice mail. Many companies have gone to this method
of communication hoping to free secretaries and make it
easier to leave messages for the salesperson. The difficulty
arises when a customer wants to talk to a salesperson and
can only get a recording. Sometimes, the voice mailbox is
full and it is impossible to leave a message. It is also possi-
ble to use voice mail to screen calls, and many buyers and
salespeople complain that it is virtually impossible to make
contact when their counterpart refuses to return their call.
Salespeople can use GPS technology to better serve their
clients. Coverage in a territory can be improved with the
implementation of a GPS system in each salesperson’s car.
See Technology in Selling (on the previous page) to learn
about the benefits of GPS tracking systems.

Technology can be a friend or a foe of a salesper-
son. If used properly, technology can build bridges
to prospects and clients and develop relationships. If
technology is not used properly, a salesperson can find
himself or herself alienating the customers and turn a
potential resource into a reason for a prospect not to do
business with the salesperson.

Exhibit 2.4

Using Technology to Build Bridges to Customers
Technology Bridge

World Wide Web Price updates can be placed on the Web for customers to access. New product
information can be made available to customers and prospects.

E-mail Buyer and salesperson can communicate virtually 24 hours a day. Mass
communications can be sent out to all customers and prospects.

Facsimile Non-electronic documents can be transmitted 24 hours a day. Fax on demand.

Cell phones Buyer and seller have immediate access to each other.

Voice mail Salesperson and buyer can leave messages for each other and save time
and”e#ort.

technology knowledge
Information salespeople must have
about the latest technology.

2-5 SALES ETHICS
Ethics refers to right and wrong conduct of individuals
and the institutions of which they are a part. Personal
ethics and formal codes of conduct provide a basis for
deciding what is right or wrong in a given situation.
Ethical standards for a profession are based on society’s
standards, and most industries have developed a code of
behaviors that are compatible with society’s standards.
Professions in this country owe much of their public re-
gard to standards of conduct established by professional
organizations. Reflecting this, the American Marketing
Association has adopted a code of ethics, which is avail-
able on this book’s companion Web site.17

Salespeople are constantly involved with ethical is-
sues. In fact, salespeople are exposed to greater ethical
pressures than individuals in many other occupations.18
A sales manager might encourage his or her salesforce to
pad their expense account in lieu of a raise, or ask a rep
to withhold information from a prospect.19 A salesperson
might sell a product or service that the buyer does not
need or exaggerate the!benefits of a product to get a sale.
The list can go on and!on.

Recall that sales professionalism requires a truthful,
customer-oriented approach. Customers are increasingly
intolerant of nonprofessional, unethical practices. Sales
ethics is closely related to trust. Deceptive practices,

illegal activities, and non-customer-oriented behavior
have to be attempted only once for a buyer to lose trust
in his or her salesperson. Research has identified some
of the sales practices deemed unethical, as shown in
Exhibit 2.5.20

2-5a Image of Salespeople
and Sales Executives
Sales and Marketing Executives International (SMEI)
has been concerned with the image of salespeople and
has developed a code of ethics as a set of principles that
outline the minimum requirements for professional
conduct. SMEI has developed a 20- to 30-hour certi-
fication process that declares that a salesperson shall
support and preserve the highest standards of profes-
sional conduct in all areas of sales and in all relationships
in the sales process. Exhibit!2.621 is the SMEI Code of
Ethics that pledges a salesperson will adhere to these
standards.

A sales professional deserves and receives a high
level of respect on the job. Buyers who do not interact
with professional sales-
people on a regular ba-
sis might believe in the
negative stereotype of
the salesperson as pushy,

ethics The right and wrong
conduct of individuals and
institutions of which they are
a part.

Exhibit 2.5

What Types of Sales Behaviors Are Unethical?
According to a survey of 327 customers, salespeople are acting unethically if they:

1. Shows concern for their own interest, not the clients’.
2. Pass the blame for something they did wrong.
3. Take advantage of the poor or uneducated.
4. Accept favors from customers so the seller feels obliged to bend policies.
5. Sell products/services that people do not need.
6. Give answers when they do not really know if they are correct or not.
7. Pose as a market researcher when doing phone sales.
8. Sell dangerous or hazardous products.
9. Withhold information.

10. Exaggerate bene!ts of product.
11. Lie about availability to make sale.
12. Lie about competitors.
13. Falsify product testimonials.

41CHAPTER 2: Building Trust and Sales Ethics

Exhibit 2.6

SMEI Certified Professional Salesperson Code of Ethics
The SMEI Certi!ed Professional Salesperson (SCPS) Code of Ethics is a set of principles that outline
minimum requirements for professional conduct. Those who attain SCPS status should consider these
principles as more than just rules to follow. They are guiding standards above which the salesperson
should rise.
An SCPS shall support and preserve the highest standards of professional conduct in all areas of sales and
in all relationships in the sales process. Toward this end an SCPS pledges and commits to these standards in
all activities under this code.
As an SCPS I pledge to the following individuals and parties:

I. With respect to the customer, I will:
Maintain honesty and integrity in my relationship with all customers and prospective customers.
Accurately represent my product or service in order to place the customer or prospective customer in a
position to make a decision consistent with the principle of mutuality of bene!t and pro!t to the buyer
and seller.
Continually keep abreast and increase the knowledge of my product(s), service(s), and industry in which I
work. This is necessary to better serve those who place their trust in me.

II. With respect to the company and other parties whom I represent, I will:
Use their resources that are at my disposal and will be utilized only for legitimate business purposes.
Respect and protect proprietary and con!dential information entrusted to me by my company.
Not engage in any activities that will either jeopardize or con$ict with the interests of my company. Activities
that might be or appear to be illegal or unethical will be strictly avoided. To this e#ect I will not participate in
activities that are illegal or unethical.

III. With respect to the competition, regarding those organizations and individuals that I compete with in the
marketplace, I will:
Obtain competitive information only through legal and ethical methods.
Portray my competitors, and their products and services, only in a manner that is honest, truthful, and based
on accurate information that can or has been substantiated.

IV. With respect to the community and society that provide me with my livelihood, I will:
Engage in business and selling practices that contribute to a positive relationship with the communities in
which I and my company have presence.
Support public policy objectives consistent with maintaining and protecting the environment and
community.
Participate in community activities and associations that provide for the betterment of the community
and”society.

I AM COMMITTED to the letter and spirit of this code. The reputation of salespeople depends upon me as well as
others who engage in the profession of selling. My adherence to these standards will strengthen the reputation
and integrity for which we strive as professional salespeople.
I understand that failure to consistently act according to the above standards and principles could result in the
forfeiture of the privilege of using the SCPS designation.
Candidate’s Name (Please Print)
Signature
Date

shifty, and untrustworthy. Where does this stereotype
come from? Some salespeople are not professional in
their approach, and contribute to the negative stereotype.
In the past, television programs, movies, and Broadway
productions have fostered the negative image of sales-
people. During the 1960s and 1970s, the popular press
also contributed to this negative image. A study of how
salespeople are portrayed in the popular press found that
salespeople are often associated with deceptive, illegal,
and non-customer-oriented behavior.22 Dilemmas exist
also for sales executives implementing strategic account
relationships regarding such issues as information shar-
ing, trust, and hidden incentives for unethical behav-
iors.23 Three of the more important areas of unethical
behavior, deceptive practices, illegal activities, and non-
customer-oriented behavior, are discussed.

2-5b Deceptive Practices
Buyers have been turned off by all salespeople because
of experience with only a few unscrupulous salespeople.
All salespeople (good and bad) pay the price for this be-
havior. Unfortunately, some salespeople do use quota
pressure as an excuse to be deceptive. The salesperson
has the choice to either ignore the trust- building ap-
proach and persuade the customer to buy or go to the
next sales meeting and catch the wrath of his or her sales
manager for being under quota. Salespeople giving un-
founded answers, exaggerating product benefits, and
withholding information might appear only to shade the
truth, but when it causes harm to the buyers, such sales-
people have jeopardized future dealings with the buyer.

2-5c Illegal Activities
Misusing company assets has been a long-standing prob-
lem for many sales organizations. Using the company car
for personal use, charging expenses that did not occur, and
selling samples for income are examples of misusing com-
pany assets. Some of these violations of company property
also constitute violations of Internal Revenue Service (IRS)
regulations and are offenses that could lead to jail or heavy
fines.

Bribery is another area that causes some salespeople
to run afoul of the law. A competitor might offer bribes;
this, in turn, puts pressure on the salesperson’s compa-
ny to respond with bribes of its own. It is difficult for a
salesperson to see potential sales going to the compe-
tition. Salespeople offering bribes on their own can be
punished. Companies that engage in bribery could find
themselves being prosecuted and fined. Rockwell Inter-
national and Lockheed made illegal payments to foreign

customers and had to suffer the humiliation of bad pub-
licity and fines.

Another area of legal concern that involves the
salesforce is product liability. Salespeople can create
product liabilities for a company in three ways:
express warranty, misrepresentation, and
negligence. A salesperson can create a product war-
ranty or guarantee that obligates the selling organiza-
tion even if they do not intend to give the warranty. Ex-
press warranties are created by any affirmation of fact
or promise, any description, or any sample or model
that a salesperson uses, which is made part of the basis
of the bargain.

Basis of the bargain is taken to mean that the
buyer relied on the seller’s statements in making the pur-
chase decision. If a salesperson tells a prospect that a
machine will turn out 50 units per hour, a legal obligation
has been created for the firm to supply a machine that
will accomplish this. A salesperson’s misrepresentation
can also lead to product liability even if the salesperson
makes a false claim thinking it is true. The burden of ac-
curacy is on the seller. Salespeople are required by law
to exercise “reasonable care” in formulating claims. If a
salesperson asserts that a given drug is safe without exer-
cising reasonable care to see that this claim is accurate,
the salesperson has been negligent. Negligence is a basis
for product liability on the part of the seller.

Although these tactics might increase sales in the
short run, salespeople ruin their trust relationship with
their customer and company. Given the legal restrictions
that relate to selling practices, a salesperson, as well as
the selling organization, should exercise care in develop-
ing sales presentations.

2-5d Non-
Customer-
Oriented
Behavior
Most of today’s sales orga-
nizations emphasize trust-
building behaviors and
are customer-oriented.
Unfortunately, there are a
few salespeople and com-
panies today that concen-
trate on short-term goals
and allow outmoded sales
tactics to be practiced.
Most buyers will not buy

express warranty A way
a salesperson can create product
liabilities by giving a product
warranty or guarantee that
obligates the selling organization
even if the salesperson does not
intend to give the warranty.

misrepresentation False
claim(s) made by a salesperson.

negligence False claim(s)
made!by a salesperson about the
product or service he or she is trying
to sell.

basis of the bargain When
a buyer relies on the seller’s
statements in making a purchase
decision.

43CHAPTER 2: Building Trust and Sales Ethics

from salespeople who are pushy and practice the hard
sell. Too much is at stake to fall for the fast-talking, high-
pressure salesperson. Buyers have been through their
own training, and they understand the importance of
developing a long-term relationship with their suppliers.
Exhibit 2.7 summarizes these practices.

2-5e How are Companies Dealing
With”Sales”Ethics?
Many companies spend time covering ethics in their
training programs. These programs should cover top-
ics such as the appropriateness of gift giving, the use of

Exhibit 2.7

Areas of Unethical Behavior
Deceptive Practices Non-Customer-Oriented Behavior Illegal Activities

Deceive
Hustle
Scam
Exaggerate
High pressure
Withhold
information/blu#

Pushy
Hard sell
Fast talking

Defraud
Con
Misuse company
assets

Exhibit 2.8

Legal Reminders
For salespeople:

1. Use factual data rather than general statements of praise during the sales presentation. Avoid
misrepresentation.

2. Thoroughly educate customers before the sale on the product’s speci!cations, capabilities, and limitations.
3. Do not overstep authority, as the salesperson’s actions can be binding to the selling !rm.
4. Avoid discussing these topics with competitors: prices, pro!t margins, discounts, terms of sale, bids or intent

to bid, sales territories or markets to be served, rejection or termination of customers.
5. Do not use one product as bait for selling another product.
6. Do not try to force the customer to buy only from your organization.
7. O#er the same price and support to buyers who purchase under the same set of circumstances.
8. Do not tamper with a competitor’s product.
9. Do not disparage a competitor’s product without speci!c evidence of your contentions.

10. Void promises that will be di%cult or impossible to honor.
For the sales organization:

1. Review sales presentations and claims for possible legal problems.
2. Make the salesforce aware of potential con$icts with the law.
3. Carefully screen any independent sales agents the organization uses.
4. With technical products and services, make sure the sales presentation fully explains the capabilities and

dangers of products and services.

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expense accounts, and dealing with a prospect’s unethi-
cal demands. Each company will have its own policies
on gift giving. John Huff of Schering-Plough states, “Just
a few years ago, I could spend my expense account on
Indiana Pacers tickets or a golf outing with doctors. That
is not the case today. There is a lot of gray area concern-
ing gift giving by salespeople to their business clients and
prospects. The pharmaceutical industry has policed itself
so now gift giving has all but been eliminated. I must
know the rules of my company and industry.”24 Some
buyers are not allowed to accept gifts from salespeople.

Another important training area is the use of ex-
pense accounts. Salespeople should be trained in how to
fill out the expense account form and what is acceptable
for submission. Some companies allow personal mileage
to be included; others do not. If guidelines are estab-
lished, there is less of a chance for salesperson misun-
derstanding.

Sometimes unethical behavior is not initiated by
the salesperson but by the buyer.25 Salespeople must
be trained in dealing with prospects who make unethi-
cal demands. Buyers can be under pressure from their

company to stay within budget or to move up the time-
table on an order. A buyer might ask a salesperson to
move him or her up on the order list in exchange for
more business down the road. One pharmacist set up
a deal with a salesperson to buy samples illegally. The
trust-based salesperson has to shut down any short-
term gain for long-term success. A salesperson’s career
is over if the word circulates that he or she cannot be
trusted.

A salesperson must also be concerned with our le-
gal system and those of other countries. It cannot be an
excuse for today’s well-trained salesperson to say he or
she did not know that a law was being broken. When in
doubt, the salesperson must check out all state and local
laws. In addition, there are industry-specific rules and
regulations to be considered. Exhibit 2.8 covers a num-
ber of legal reminders.

A salesperson has his or her reputation to tarnish
only once. In this age of mass communication (phone,
e-mail, Web sites), it is easy for a buyer to get the word
out that a salesperson is acting unethically, possibly end-
ing that salesperson’s career.

45CHAPTER 2: Building Trust and Sales Ethics

2 CHAPTER CASE
C H A R L E N E M I LTO N ’ S D I L E M M A

B A C K G R O U N D
Charlene Milton has spent the past three months trying to
gather all the information she needs to submit a bid on an
order that is very important to her company. Bids are due
tomorrow and the decision will be made within a week.
She has made a great impression on the purchasing agent,
Jamie Arnold, and she has just ended a conversation with
her sales manager who believes Charlene needs to make
one more call on Arnold to see if she can find out any
additional information that might help her prepare the bid.
Charlene’s boss specifically wants to know who the other
bidders are.

C U R R E N T S I T U AT I O N
Later that day, Charlene visited with Jamie Arnold. During
the course of the conversation with Arnold, Charlene asked
who the other bidders were. Arnold beat around the bush
for a while, but she did not reveal the other bidders. She did

mention the other bids were in and pulled the folder out of
the filing cabinet where they were kept. Jamie opened the
file and looked over the bids in front of Charlene.

There was a knock on the door and Jamie’s boss asked if he
could see her for a minute and she walked down the hall
with her boss. Charlene realized all the bids were left out in
front of her. There was a summary sheet of all of the bids
on top and she could easily see all the bids. When Arnold
returned she returned the folder to the file and the two
made some small talk and ended their conversation.

Charlene returned to her office and completed her bid and
turned it in to Jamie Arnold the next morning. Charlene
knew her bid would be the lowest by $500.00. One week
later Charlene learned she won the bid.

Q U E S T I O N S
1. What are the ethical issues involved in this situation?

2. If you were Charlene Milton, do you think Jamie Arnold
intended for you to see the competitive bids? What
would you have done, given this situation? Why?

CHAPTER ROLE PLAY
Building Trust and Sales Ethics

B Y R O N B AY U N I F O R M C O M PA N Y

C A S E B A C K G R O U N D
Byron Bay Uniform Company (BBUC) specializes in providing
uniforms to hotels and restaurants. BBUC is a new company
from Australia trying to break into the U.S. market. They have
had trouble breaking into larger accounts (Marriott, Hilton,
Sheraton) because as a new company, they don’t have the
name recognition in the United States.

As the account exec in the area, you have been working on a
new Hilton hotel with over 5,000 rooms and 500 employees.
Recently you submitted a proposal, and the buyer, Phil Buck,
has told you he is leaning your way with the order. He also
told you that this order must come off without a hitch as

his hide is on the line if things go wrong. You know there
could be a problem down the road as one of your unions
has been negotiating a contract that is about to expire. The
last time this contract came up, there was a strike and orders
were backlogged for weeks. The hotel has many customized
uniforms and has to have these for their grand opening in
three months. What is your obligation to the hotel having
this information? This order will make your year and probably
send you on a trip to Rome for exceeding quota.

R O L E P L AY A C T I V I T Y
Location: Phil Buck’s office

Action: Role play a sales call with Phil Buck addressing the
issues in the case.

47CHAPTER 2: Building Trust and Sales Ethics

3 Understanding Buyers

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LEARNING OBJECTIVES
After completing this chapter, you should be able to:

3-1 Categorize primary types of buyers.

3-2 Discuss the distinguishing characteristics
of business markets.

3-3 List the different steps in the business-to-business
buying process.

3-4 Discuss the different types of buyer needs.

3-5 Describe how buyers evaluate suppliers and alternative sales
offerings by using the multiattribute model of evaluation.

3-6 Explain the two-factor model that buyers use to evaluate
the performance of sales offerings and develop satisfaction.

3-7 Explain the different types of purchasing decisions.

3-8 Describe the four communication styles and how
salespeople must adapt and flex their own styles to
maximize communication.

3-9 Explain the concept of buying teams and specify
the different member roles.

3-10 Understand means for engaging customers.

“It’s not just about the furniture in the room. It’s about really understanding
the customer and developing a partnership so that we can provide the best
solutions possible.” These words spoken by Brian Walker, President and CEO
of Herman Miller, a company that designs, manufactures, and sells furniture
systems and products for offices and health care facilities, reflect the
importance of understanding customer needs. With advances in technology
and software, salespeople today are able to better track and understand
customer needs. According to Walker, “Now we have a process to help anticipate
customer needs and put the right capabilities around the customer and the
sales team.” To do so, Herman Miller takes advantage of software provided
by Salesforce.com. They are not alone, as salespeople from the following
companies illustrate how they likewise use customer relation management
tools by Salesforce.com to help them better understand their customers.

Procter & Gamble Professional (PGP), a division of the consumer
products giant that sells professional cleaning products, found it needed
comprehensive views of its customers—including hotels, restaurants, schools,

After finishing this chapter, go to PAGE 77 for STUDY TOOLS.

assisted living facilities, and corporations—in order to move its business
forward. Adopting Salesforce allowed the company to centralize information
so that its salesforce and other company employees can coordinate activities
and quickly share customer information between call center, field sales, and
technical services teams.

ADP, a provider of human resources management software and services,
uses Marketing Cloud by Salesforce.com to gain customer intelligence,
maintain customer connections, and identify service issues by monitoring
and participating in conversations about its brand. ADP listens to key topics
across Facebook, Twitter, and LinkedIn, engages leads with helpful content
and imports these leads directly into Sales Cloud by Salesforce.com, where
salespeople can access customer insight. According to Heather Talerico,
Director of Sales Solutions at ADP, “With Salesforce we transformed our
selling process from ‘how can I help you?’ to ‘based on the type of company
you are we can see that these are your key business challenges and here’s
how we can help you’. Salesforce lets our reps maximize every moment.”

49CHAPTER 3: Understanding Buyers

Finally, Belkin, a manufacturer of easy-to-use home and business
networking solutions, uses Salesforce to maintain social profiles that include
customer orders, issues, and communications. The company also includes
information gleaned from LinkedIn to enable reps to better understand their
contacts so they can engage with them on a more personal level. According to
Belkin CIO Deanna Johnston, “Being social helps us have tighter connections
with customers.”1

As the opening vignette illustrates, understanding cus-
tomers is necessary to succeed in today’s highly com-
petitive global marketplace. Understanding the unique
needs of each customer allows salespeople to tailor spe-
cific solutions for those needs. In doing so, salespeople
are able to bring about value for these customers.

This chapter focuses on preparing you to better
understand buyers. Following a discussion on different
types of buyers, this chapter develops a model of the
buying process and the corresponding roles of the sales-
person. Buyer activities characteristic to each step of the
purchase decision process are explained and related to
salesperson activities for effectively interacting with buy-
ers. This is followed by an explanation of different types
of purchasing decisions to which salespeople must re-
spond. The influence of individual communication styles
on selling effectiveness is also discussed. The growing in-
cidence of multiple buying influences and buying teams
is then demonstrated, along with their impact on selling
strategy. Finally, means for engaging buyers—such as
focusing on the customer experience, making relevant
information easily accessible to buyers, and adding value
demanded by buyers—are discussed from the perspec-
tive of the salesperson.

3-1 TYPES OF BUYERS
Salespeople work and interact with many different types
of buyers. These buyer types range from heavy industry

and manufacturing op-
erations to consumers
making a purchase for
their own use. These
variants of customer
types arise out of the
unique buying situa-
tions they occupy. As
a result, one type of
buyer will have needs,

motivations, and buying behavior that are very differ-
ent from another type of buyer. Consider the different
buying situations and the resulting needs of a corporate
buyer for Foot Locker compared with the athletic equip-
ment buyer for a major university or Joe Smith, attorney
at law and weekend warrior in the local YMCA’s basket-
ball league. As illustrated in Exhibit! 3.1, each of these
buyers may be looking for athletic shoes, but their buy-
ing needs are very different. To maximize selling effec-
tiveness, salespeople must understand the type of buyer
with whom they are working and respond to their spe-
cific needs, wants, and expectations.

The most common categorization of buyers
splits them into either the (1) consumer market or
(2) business market. Consumers purchase goods and
services for their own use or consumption and are highly
influenced by peer group behavior, aesthetics, and per-
sonal taste. Business markets are composed of firms,
institutions, and governments. These members of the
business market acquire goods and services to use as
inputs into their own manufacturing process (e.g., raw
materials, component parts, and capital equipment), for
use in their day-to-day operations (e.g., office supplies,
professional services, insurance), or for resale to their
own customers. Business customers tend to stress overall
value as the cornerstone for purchase decisions.

3-2 DISTINGUISHING
CHARACTERISTICS
OF!BUSINESS MARKETS

Although there are similarities between consumer and
business buying behaviors, business markets tend to be
much more complex and possess several characteris-
tics that are in sharp contrast to those of the consumer
market. These distinguishing characteristics are de-
scribed in the following sections.

consumer market A market in
which consumers purchase goods and
services for their use or!consumption.

business market A market
composed of firms, institutions, and
governments who acquire goods and
services to use as inputs into their own
manufacturing process, for use in their
day-to-day operations, or for resale to
their own customers.

Exhibit 3.1

Different Needs of Different Athletic Shoe Buyers
Buyer for Foot Locker
Shoe Stores

University Athletic
Equipment Buyer

Joe Smith—YMCA
Weekend!Warrior

Functional
Needs

! Has the features customers
want

! Well constructed—
minimizes returns

! O!ers point-of-sale
displays for store use

! Competitive pricing

! Individualized sole
texture for di!erent player
performance needs

! Perfect “t and size for each
team member

! Custom match with
university colors

! Size of supplier’s payment
to coach and school for
using their shoes

! O!ers the leading edge
in#shoe features

! Prominent brand logo
! Highest-priced shoes

in#the store

Situational
Needs

! Can supply stores across
North America

! Ability to ship to individual
stores on a just-in-time
basis

! O!ers 90-day trade credit

! Ability to deliver on time
! Provide supplier personnel

for team “ttings
! Make contract payments

to university and coach at
beginning of season

! Right size in stock, ready
to#carry out

! Takes Visa and MasterCard

Social Needs ! Invitation for buying team
to attend trade show
and supplier-sponsored
reception

! Sponsor and distribute
shoes at annual team shoe
night to build enthusiasm

! Include team and
athletes in supplier brand
promotions

! O!ers user-group
newsletter to upscale
customers

! Periodic mailings for new
products and incentives
to#purchase

Psychological
Needs

! Assurance that shoes will
sell at retail

! Brand name with strong
market appeal

! Option to return unsold
goods for credit

! Brand name consistent with
players’ self-images

! The entire team will accept
and be enthusiastic toward
product decision

! Belief that the overall
contract is best for the
university, team, and
coaches

! Reinforces customer’s
self-image as an innovator

! Product will deliver the
promised performance

! One of only a few people
having purchased this
style of shoe

Knowledge
Needs

! Level of quality—how the
shoe is constructed

! How the new features
impact performance

! What makes the shoe
unique and superior to
competitive o!erings

! Product training and
materials for sales sta!

! What makes the shoe
unique and superior to
competitive o!erings

! Supporting information
and assurance that the
contracted payments to
university and coaches are
superior to competitive
o!erings

! What makes the shoe
unique and superior to
competitive o!erings

! Assurance that everybody
on the court will not be
wearing the same shoe

51CHAPTER 3: Understanding Buyers

3-2a Concentrated Demand
Business markets typically exhibit high levels of concen-
tration in which a small number of large buyers account
for most of the purchases. The fact that business buyers
tend to be larger in size but fewer in number can greatly
impact a salesperson’s selling plans and performance.
For example, a salesperson selling high-grade industrial
silicon for use in manufacturing computer chips will find
that his or her fate rests on acquiring and nurturing the
business of one or more of the four or five dominant chip
makers around the world.

3-2b Derived Demand
Derived demand denotes that the demand in business
markets is closely associated with the demand for consum-
er goods. When the consumer demand for new cars and
trucks increases, the demand for rolled steel also goes up.
Of course, when the demand for consumer products goes
down, so goes the related demand in business markets. The
most effective salespeople identify and monitor the con-
sumer markets that are related to their business customers
so they can better anticipate shifts in demand and assist
their buyers in staying ahead of the demand shifts rather
than being caught with too much, too little, or even with
the wrong inventory. Republic Gypsum’s salespeople ac-
curately forecasted a boom in residential construction and
the pressure it would put on the supply of plasterboard.
Working closely with their key customers, order quantities
and shipping dates were revised to prevent those custom-
ers from being caught with inadequate inventories to sup-
ply the expanded demand. This gave those customers a
significant competitive advantage over their competitors,
who were surprised and suddenly out of stock.

3-2c Higher Levels of Demand
Fluctuation
Closely related to the derived demand characteristic, the
demand for goods and services in the business market is

more volatile than that
of the consumer mar-
ket. In economics, this
is referred to as the
acceleration principle.
As demand increases (or
decreases) in the con-
sumer market, the busi-
ness market reacts by ac-
celerating the buildup (or
reduction) of inventories

and increasing!(or decreasing) plant capacity. A good exam-
ple would be the rapidly growing demand for smartphones
with advanced capabilities such as inductive wireless charg-
ing, dual SD cards, water resistance, and larger screens.
In response to higher consumer demand, wholesalers and
retailers are increasing their inventories of these advanced
phones while decreasing the number of less technologi-
cally advanced devices they carry. In response, manufactur-
ers have shifted their production towards these improved
models. Salespeople are the source of valuable information
and knowledge, enabling their customers to anticipate these
fluctuations and assisting them in developing more effective
marketing strategies. As a result, both the buying and selling
organizations realize mutual positive benefits.

3-2d Purchasing Professionals
Buyers in the business markets are trained as purchas-
ing agents. The process of identifying suppliers and
sourcing goods and services is their job. This results in a
more professional and rational approach to purchasing.
As a result, salespeople must possess increased levels of
knowledge and expertise to provide customers with a
richer and more detailed assortment of application, per-
formance, and technical data.

3-2e Multiple Buying Influences
Reflecting the increased complexity of many business
purchases, groups of individuals within the buying firm of-
ten work together as a buying team or center. As a result,
salespeople often work simultaneously with several indi-
viduals during a sales call and even different sets of buyers
during different sales calls. Buying team members come
from different areas of expertise and play different roles
in the purchasing process. To be effective, the salesperson

derived demand Demand
in business markets that is closely
associated with the demand for
consumer goods.

acceleration principle When
demand increases (or decreases) in
the consumer market, the business
market reacts by accelerating the
buildup (or reduction) of inventories
and increasing (or decreasing)
plant!capacity.

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Salespeople in retail businesses work
closely with buyers to satisfy their needs.

decisions. As depicted in Figure 3.1, the sequential and
interrelated phases of the business buyer’s purchase pro-
cess begin with (1)!recognition of the problem or need,
(2) determination of the characteristics of the item and
the quantity needed, (3)! description of the characteris-
tics of the item and quantity needed, (4) search for and
qualification of potential sources, (5)! acquisition and
analysis of proposals, (6)!evaluation of proposals and se-
lection of suppliers, (7) selection of an order routine, and
(8)!performance feedback and evaluation.

Depending on the nature of the buying organization
and the buying situation, the buying process may be highly
formalized or simply a rough approximation of what ac-
tually occurs. The decision process General Motors (GM)
employs for the acquisition of a new organization-wide com-
puter system will be highly formalized and purposefully
reflect each of the previously described decision phases.
Compared with GM, the decision process of Bloomington
Bookkeeping, a single office and four-person operation,
could be expected to use a less formalized approach in
working through their buying decision process for a com-
puter system. In the decision to replenish stock office
supplies, both of the organizations are likely to use a much
less formalized routine—but still, a routine that reflects
the different decision phases.

As Figure 3.1 further illustrates, there is a close cor-
respondence between the phases of the buyer’s decision
process and the selling activities of the salesperson. It is
important that salespeople understand and make use of
the interrelationships between the phases of the buying
process and selling activities. Effective use of these in-
terrelationships offers salespeople numerous opportuni-
ties to interact with buyers in a way that guides the shap-
ing of product specifications and the selection of sources
while facilitating the purchase decision.

3-3a Phase One—Recognition of
the#Problem#or Need: The Needs Gap
Needs are the result of
a gap between buyers’
desired states and
their actual states.
Consequently, need rec-
ognition results when
an individual cogni-
tively and emotionally
processes information
relevant to his or her
actual state of being
and compares it to the

must first identify, then understand and respond to, the
role and key buying motives of each!member.

3-2f Collaborative Buyer–Seller
Relationships
The smaller customer base and increased usage of
supply chain management, characterized by the
strategic coordination and integration of purchasing with
other functions within the buying organization as well as
external organizations, has resulted in buyers and sellers
becoming much more interdependent than ever before.
This increased interdependence and desire to reduce
risk of the unknown has led to an emphasis on develop-
ing long-term buyer–seller relationships characterized
by increased levels of buyer–seller interaction and high-
er levels of service expectations by buyers.

Rather than competing to win benefits at the ex-
pense of one another, leading organizations recognize
that it is possible for all parties to reduce their risk and
increase the level of benefits each receives by sharing
information and coordinating activities, resources, and
capabilities.2 For instance, Walmart and Sam’s Club
stores share information with suppliers on the products
they supply. Procter & Gamble synchronizes its product
data with Walmart, allowing the two companies to
simultaneously reduce inventory levels by as much as
70 percent, improve service levels to 99 percent, and save
an estimated $1 million annually.3 These longer-term
buyer–seller relationships are based on the mutual ben-
efits received by and the interdependence between all
parties in this value network. In addition to being keenly
aware of changing customer needs, collaborative rela-
tionships require salespeople to work closely with buyers
to foster honest and open two-way communication and
develop the mutual understanding required to create the
desired solutions. This suggests that salespeople under-
stand the buyer’s customers to determine how to help the
buyer succeed by better serving their customers. Such
understanding provides insights to challenges facing the
buyer, enhances the salesperson’s credibility, and helps
to establish a strong business partnership.4 Further,
salespeople must consistently demonstrate that they are
dependable and acting in the buyer’s best interests.

3-3 THE BUYING PROCESS
Although not always the case in the consumer market-
place, buyers in the business marketplace typically un-
dergo a conscious and logical process in making purchase

supply chain management
The strategic coordination and
integration of purchasing with
other functions within the buying
organization as well as external
organizations.

desired states A state of being
based on what the buyer desires.

actual states A buyer’s actual
state of being.

53CHAPTER 3: Understanding Buyers

COMPARISON OF BUYING DECISION PROCESS PHASES AND CORRESPONDING
STEPS IN THE SELLING PROCESS

FIG. 3.1

Business Buyers’ Buying Process The Selling Process

Initiating Customer Relationships
Strategic prospecting
Assessing prospect’s situation
Discovering prospect’s needs
Planning value-based sales dialogue

and presentations
Activating the buying process

Developing Customer Relationships
Engaging prospects and customers

through sales dialogue and presentations
Cocreating and validating

customer value
Earning customer commitment

Recognition of the Problem
or Need

Determination of the
Characteristics of the Item and

the Quality Needed

Description of the
Characteristics of the Item and

the Quantity Needed

Search for and Qualification
of Potential Sources

Acquisition and Analysis
of Proposals

Evaluation of Proposals
and Selection of Suppliers

Selection of an Order Routine

Performance Feedback
and Evaluation

Enhancing Customer Relationships
Building value through postsale

follow-up
Assessing value and

relationship performance
Creating new value opportunities
Increasing customer value through

self-leadership and teamwork

desired state of being. As illustrated in Figure!3.2, any
perceived difference, or needs gap, between these
two states activates the motivation
or drive to fill the gap and reach
the desired state. For example,
the SnowRunner Company’s daily
production capacity is limited to
1,000 molded skimobile body hous-
ings. Their research indicates that
increasing capacity to 1,250 units
per day would result in significant
reductions in per-unit costs and allow them to enter ad-
ditional geographic markets—both moves that would
have significant and positive impacts on financial per-
formance. The perceived need to expand production
activates a corresponding motivation to search for infor-
mation regarding alternative solutions and acquire the
capability to increase production by 250 units.

However, if there is no gap, then there is no need and
no active buying motive. It is common for salespeople to
find themselves working with buyers who, for one rea-
son or another, do not perceive a needs gap to be pres-
ent. It is possible that they do not have the right infor-
mation or lack a full understanding of the situation and
the existence of options better than their current state. It
is also possible that their understanding of the actual
state might be incomplete or mistaken. For example,
SnowRunner’s buyers might not understand the cost re-
duction possibilities and increased market potential that
could result from increased capacity. As a result, they
perceive no need to increase production—the desired
state is the same as their actual state. Similarly, the buy-
ers might be functioning with incomplete information re-
garding the company’s actual state of reduced production
capacity due to SnowRunner’s existing molding machines
requiring increased downtime for maintenance. Properly
realized, this lowering of the actual state would result in a
needs gap. Successful salespeople position themselves to
assist buyers in identifying and understanding needs as a

result of their broader expertise and knowledge regard-
ing product use and application. Salespeople can also use

sales conversations to present buy-
ers with information and opportuni-
ties that effectively raise the desired
state, generate a need, and trigger
the purchase decision process. Top-
performing salespeople understand
the importance of assisting their
buyers in forming realistic percep-
tions of the actual state and the de-

sired state. In this manner, the salesperson can continue
to serve as a nonmanipulative consultant to the buyer
while affecting buying motives that yield mutual benefits
to all parties. However, it should be noted that the per-
suasive power of assisting the buyer in determining and
comparing desired and actual states can also be misused
and lead to unethical and manipulative selling behaviors
such as those exhibited in “An Ethical Dilemma.”

3-4 TYPES OF BUYER NEEDS
The total number of potential customer needs is infinite
and sometimes difficult for salespeople to grasp and un-
derstand on a customer-by-customer basis. Consequent-
ly, many salespeople find it helpful to group customer
needs into one of five basic types or categories that focus
on the buying situation and the benefits to be provided
by the product or service
being chosen.5 These five
general types of buyer
needs are described as
follows:

! Situational needs
are the specific needs
that are contingent on,
and often a result of,

The needs gap is the di!erence between the buyer’s perceived desired state and the buyer’s perceived actual state.

FIG. 3.2 THE NEEDS GAP

Desired State
Produce 1,250 units per day

Actual State
Produce 1,000 units per day

The Gap or Need
250 units per day

Business buyers typically
undergo a conscious and
logical process in making

purchase decisions.

needs gap A perceived
difference between a buyer’s desired
and actual state of being.

situational needs The needs
that are contingent on, and often
a!result of, conditions related to
the specific environment, time,
and!place.

55CHAPTER 3: Understanding Buyers

Bob Labels is a sales representative for a
firm that manufactures and sells various
packaging machines. Bob is meeting
with a prospect, Andrew Ale, who is a
purchaser for a midsized beer manufac-
turer looking to expand its business.
Thus, the company is in need of an
additional bottle labeler. The bottle
labeler currently used by the com-
pany was bought at auction sev-
eral years ago. Having found Bob’s
company on the Internet, Andrew
contacted Bob and they set up a meet-
ing at Andrew’s office. Upon assessing
Andrew‘s needs, Bob determined
that Andrew was looking for a roll-fed
bottle labeler capable of labeling up to
1,200 bottles per minute. This concerned Bob because
the fastest bottler he carried was capable of labeling
only up to 1,000 bottles per minute. Currently, Andrew’s
company was not running at full capacity, but he felt he
would need this capability in the near future to meet
expected demand. While Bob knew his labeler would
work fine for the near future, he also knew that given
Andrew’s future needs, a faster bottler would actually
be the most beneficial purchase. Bob really wanted to

make this sale as it would be instrumen-
tal in him achieving a bonus. The bonus
would be particularly useful to help Bob
pay the hospital bills associated with
his wife’s cancer. Bob believes that he
could work with Andrew to get him to

reassess his needs and convince him
that the machine he has to offer will
be quick enough to meet produc-
tion needs now and in the future,
particularly given that there is no
guarantee of an expected growth in
sales. Bob surmises that if Andrew’s
company outgrew this labeler, they
could always purchase an addition-
al labeler from him down the road.

What should Bob do?
(A) Try to convince Andrew that he does not need a

labeler that does 1,200 labels per minute.
(B) Suggest an alternate label machine supplier and

ask Andrew to keep him in mind for additional
packaging machinery needs.

An Ethical Dilemma

Sh
ab

lo
n/

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ut

te
rs

to
ck

.c
om

conditions related to the specific environment, time, and
place (e.g., emergency car repair while traveling out of
town, a piece of customized production equipment to
fulfill a customer’s specific situational requirements, or
providing for quick initial shipment to meet a buyer’s
out-of-stock status).

! Functional needs represent the need for a specific
core task or function to be performed—the functional

purpose of a specific
product or service. The
need for a sales offering
to do what it is supposed
to do (e.g., alcohol disin-
fects, switches open

and close to control some flow, the flow control valve is
accurate and reliable).

! Social needs are the need for acceptance
from and association with others—a desire
to belong to some reference group. For example,
a product or service might be associated with
some specific and desired affinity group or
segment (e.g., Polo clothing is associated with
upper-income, successful people; ISO 9000
Certification is associated with high-quality
vendors; leading e-commerce Web sites
include discussion groups to build a sense of
community).

functional needs The need for
a specific core task or function to be
performed.

social needs The need for acceptance
from and association with others.

! Psychological needs reflect the desire for feelings of
assurance and risk reduction, as well as positive emotions
and feelings such as success, joy, excitement, and stimulation
(e.g., a Mont Blanc pen generates a feeling of success;
effective training programs create a sense of self-control
and determination; selection and use of well-known,
high-quality brands provide assurance to buyers
and organizations alike).

! Knowledge needs represent the desire for personal
development, information, and knowledge to increase
thought and understanding as to how and why things
happen (e.g., product information, newsletters, brochures,
and training and user support group meetings/conferences
provide current information on products and#topics
of#interest).

Categorizing buyer needs by type can assist the sales-
person in bringing order to what could otherwise be a
confusing and endless mix of needs and expectations. Or-
ganizing the buyer’s different needs into their basic types
can help salespeople in several ways. First, as Exhibit 3.1
and the example worksheet in Exhibit!3.2 illustrate, the

basic types can serve as a checklist or worksheet to en-
sure that no significant problems or needs have been
overlooked in the process of needs discovery. Organiz-
ing what at first might appear to be different needs and
problems into their common types also helps the sales-
person better understand the nature of the buyer’s needs
along with the interrelationships and commonalities be-
tween them. In turn, this enhanced understanding and
the framework of basic types combine to serve as a guide
for salespeople in generating and then demonstrating
value-added solutions in
response to the specific
needs of the buyer.

As previously dis-
cussed, the specific cir-
cumstances or types of
solution benefits that a
buyer is seeking should
determine a salesperson’s
strategy for working with
that buyer. Consequently,

psychological needs The
desire for feelings of assurance and
risk reduction, as well as positive
emotions and feelings such as
success, joy, excitement, and
stimulation.

knowledge needs The
desire for personal development,
information, and knowledge to
increase thought and understanding
as to how and why things happen.

Exhibit 3.2

Example Worksheet for Organizing Buyer Needs and Benefit-Based Solutions

Primary Buyer:
Buying Organization:
Primary Industry:

Bart Waits
SouthWest Metal Stampings
Stamped Metal Parts and Subcomponents

Basic Type of Need Buyer’s Speci”c Needs

Buyer’s Situational Needs ! Requires an 18 percent increase in production to meet increased sales
! On-hand inventory will not meet production/delivery schedule
! Tight cash $ow pending initial deliveries and receipt of payment

Buyer’s Functional Needs ! Equipment to provide e!ective and e%cient increase in production
! Expedited delivery and installation in six weeks or less
! Equipment “nancing extending payments beyond initial receipts

Buyer’s Social Needs ! Expansion in production transforms them into top 10 in industry
! Belonging to user group of companies using this equipment
! Feeling that they are an important customer of the supplier

Buyer’s Psychological Needs ! Con”dence that selected equipment will meet needs and do the job
! Assurance that seller can complete installation in six weeks
! Saving face—to believe borrowing for equipment is common

Buyer’s Knowledge Needs ! Evidence that this is the right choice
! Understanding new technology used by the selected equipment
! Training program for production employees and maintenance sta!

57CHAPTER 3: Understanding Buyers

it should be noted that the needs of business buyers tend
to be more complex than consumers’ needs. As with
consumers, organizational buyers are people and are
influenced by the same functional, social, psychologi-
cal, knowledge, and situational experiences and forces

that affect and shape individual needs. However, in
addition to those individual needs, organizational buy-
ers must also satisfy the needs and requirements of
the organization for which they work. As Figure 3.3
depicts, these organizational needs overlay and interact

A business buyer’s needs are a combination of the buyer’s individual needs and the organization’s needs.

FIG. 3.3 COMPLEX MIX OF BUSINESS BUYER NEEDS

Organizational Needs

Individual Needs

Situational

Knowledge
Functional

PsychologicalSocial

Situational

Knowledge
Functional

Psychological

Social

Andrea Young graduated from the University of Central
Missouri in May 2016 and went to work as an account
executive at Division D, which offers innovative, evolv-
ing ad units to help advertisers thrive in the online
advertising marketplace. Andrea discusses buyer evalu-
ation procedures and how what she learned in her sales
class helps her succeed.

“It’s interesting how widely procedures for evaluat-
ing products and services vary per industry and per
individual company based on established evaluation
procedures or by company structure. During my time
working as an account executive at Division D (sup-
plying clients with online ad options and space on

websites to advertise) there was a large variety of dif-
ferent company, ad unit and pricing information that
each potential ad buyer (be it ad agency or company)
required to make their purchase decision.”

“Understanding there is an evaluation process on
the part of clients lets you know that you should find
out as much as you can about what they will be do-
ing to see if you stand out. During formal RFPs clients
would likely provide all the information they needed to
make their evaluation. But this is not always the case.
My sales class taught be how to research companies
prior to visiting them to put myself in the best position
to succeed.”

From the Classroom
to the Field
Understanding Buyer Evaluation Procedures

with the needs of the individual. To maximize selling ef-
fectiveness in the organizational or business-to-business
market, salespeople must generate solutions addressing
both the individual and organizational needs of business
buyers.

3-4a Phase Two—Determination
of#the#Characteristics of the Item
and the Quantity#Needed
Coincident to recognizing a need or problem is the
motivation and drive to resolve it by undertaking a
search for additional information leading to possible
solutions. This particular phase of the buying process
involves the consideration and study of the overall
situation to understand what is required in the form
of a preferred solution. This begins to establish the
general characteristics and quantities necessary to re-
solve the need or problem. Through effective sales di-
alogue, salespeople use their knowledge and expertise
at this point to assist the buyer in analyzing and inter-
preting the problem situation and needs. Salespeople
offer valuable information about problem situations
and solution options that buyers typically perceive as
beneficial.

3-4b Phase Three—Description of
the Characteristics of the Item and
the Quantity#Needed
Using the desired characteristics and quantities devel-
oped in the previous phase as a starting point, buyers
translate that general information into detailed specifica-
tions describing exactly what is expected and required.
The determination of detailed specifications serves sev-
eral purposes. First, detailed specifications guide sup-
plier firms in developing their proposals. Second, these
specifications provide the buyer a framework for evalu-
ating, comparing, and choosing among the proposed so-
lutions. Postpurchase specifications serve as a standard
for evaluation to ensure that the buying firm receives the
required product features and quantities. Trust-based
buyer–seller relationships allow salespeople to work
closely with buyers and collaboratively assist them in
establishing the detailed specifications of the preferred
solutions. Such is the case, for instance, with consumer
packaged goods company Procter & Gamble, who even
located offices near Walmart’s headquarters in Benton-
ville, Arkansas, to work more collaboratively with the
world’s largest retailer.

3-4c Phase Four—Search for and
Qualification of Potential Sources
Next, buyers must locate and qualify potential suppliers
capable of providing the preferred solution. Although
buyers certainly utilize information provided by salespeo-
ple to identify qualified suppliers, there is an abundance
of information available from other sources, such as trade
associations, product source directories, trade shows, the
Internet, advertising, social media and word of mouth.
Sellers often use content marketing to enhance their
opportunity of being considered as not only a viable sup-
plier, but the preferred choice. Content marketing in-
volves creating and distributing valuable, relevant, and
consistent content to attract and retain buyers. As seen
in Exhibit 3.3, sellers use a variety of tactics and several
sources to deliver content to business customers.6

Once identified, potential suppliers are qualified on
their ability to perform and deliver consistently at the level
of quality and quantity required. Due!to the large number
of information sources available to buyers researching po-
tential suppliers, one of the most important tasks in person-
al selling is to win the position of one of those information
sources and keep buyers informed about the salesperson’s
company, its new products, and solution capabilities.

3-4d Phase Five—Acquisition
and#Analysis#of#Proposals
Based on the detailed specifications developed in
phase three, a request for proposal (known in the
trade as an RFP) is typically developed and distributed
to the qualified potential suppliers. Based on the RFP,
qualified suppliers develop and submit proposals to
provide the products as specified. Salespeople play a
critical and influential role in this stage of the buying
process by developing and presenting the proposed
solution to the buyers. In this role, the salesperson is
responsible for presenting the proposed features, ad-
vantages, and benefits
in such a manner that
the proposed solution is
evaluated as providing
higher levels of benefits
and value to the buyer
than other competing
proposals. Consequently,
it is imperative that
salespeople understand
the basic evaluation pro-
cedures used by buyers

content marketing A form
of marketing that involves creating
and distributing valuable, relevant,
and consistent content to attract
and retain buyers.

request for proposal
(RFP) A form developed by
firms and distributed to qualified
potential suppliers that helps
suppliers develop and submit
proposals to provide products
as!specified by the firm.

59CHAPTER 3: Understanding Buyers

the products and services they propose for satisfying
buyers’ needs. Some buyers might look for the sales
offering that receives the highest rating on the one
characteristic they perceive as being most important.
Others might prefer the sales offering that achieves
some acceptable assessment score across every at-
tribute desired by the buyer. However, research into
how purchase decisions are made suggests that most
buyers use a compensatory, multiattribute model
incorporating weighted averages across desired char-
acteristics.7 These weighted averages incorporate
(1)! assessments of how well the product or supplier
performs in meeting each of the specified characteris-
tics and (2)! the relative importance of each specified
characteristic to the buying firm.

3-5a Assessment of Product
or#Supplier#Performance
The first step in applying the multiattribute model
is to rate objectively how well each characteristic
of the competing products or suppliers meets the
buyer’s needs. Let us use the example of GM evalu-
ating adhesives for use in manufacturing. The buy-
ers have narrowed the alternatives to products pro-
posed by three suppliers: BondIt #302, AdCo #45,
and StikFast #217. As illustrated in Exhibit! 3.4, the
GM buying team has assessed the competitive prod-
ucts according to how well they perform on cer-
tain important attributes. These assessments are

in comparing alternative and competitive proposals so
they can be more proficient in demonstrating the supe-
riority of their solution over the competition.

3-5 PROCEDURES FOR
EVALUATING SUPPLIERS
AND!PRODUCTS

Purchase decisions
are based on buyers’
comparative evalua-
tions of suppliers and

multiattribute model A
procedure for evaluating suppliers and
products that incorporates weighted
averages across desired characteristics.

Exhibit 3.3

Business-to-Business Content Marketing Tactics and Channels
B2B Marketers’ Content Marketing Tactic Usage Channels B2B Marketers Use to Distribute Content

Tactic Percent Using Channel Percent Using

Webinars/Webcasts 83% Instagram 93%
Infographics 80% SlideShare 89%
Video (pre-produced) 77% Print 77%
Ebooks/White Papers 68% Google+ 76%
In-Person Events 65% YouTube 59%

E-mail Newsletters 60% Facebook 35%

Blogs 58% Twitter 30%

Social Media Content 58% LinkedIn 26%

E-mail 26%
Ti

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Buyers sometimes attend trade shows to
find qualified suppliers.

converted to scores as depicted in Exhibit! 3.5, with
scores ranging from 1 (very poor performance) to
10 (excellent performance).

As illustrated, no single product is consistently
outstanding across each of the eight identified char-
acteristics. Although BondIt #302 is easy to apply and
uses the buyer’s current equipment, it is also more
expensive and has the shortest durability time in the
field. StikFast #217 also scores well for ease of appli-
cation, and it has superior durability. However, it has
the longest bonding time and could negatively influ-
ence production time.

3-5b Accounting for Relative
Importance of#Each Characteristic
To compare these performance differences properly,
each score must be weighted by the characteristic’s per-
ceived importance. In the adhesive example, importance
weights are assigned on a scale of 1 (relatively unimport-
ant) to 10 (very important). As illustrated in Exhibit 3.6,
multiplying each performance score by the correspond-
ing attribute’s importance weight results in a weighted
average that can be totaled to calculate an overall rating

Exhibit 3.4

Important Product Information
Characteristics BondIt #302 AdCo #45 StikFast #217

Ease of application Excellent Good Very good

Bonding time 8 minutes 10 minutes 12 minutes

Durability 10 years 12 years 15 years

Reliability Very good Excellent Good

Nontoxic Very good Excellent Very good

Quoted price $28 per gallon $22 per gallon $26 per gallon

Shelf-life in storage 6 months 4 months 4 months

Service factors Good Very good Excellent

Exhibit 3.5

Product Performance Scores
Characteristics BondIt #302 AdCo #45 StikFast #217

Ease of application 10 5 8
Bonding time 8 6 4
Durability 6 8 9
Reliability 8 10 5
Nontoxic 8 10 8

Quoted price 5 9 7

Shelf-life in storage 9 6 6

Service factors 5 8 10

61CHAPTER 3: Understanding Buyers

Exhibit 3.6

Weighted Averages for Performance (P) Times Importance (I) and Overall
Evaluation Scores

Characteristics
BondIt #302 AdCo #45 StikFast #217

P I P 3 I P I P 3 I P I P 3 I

Ease of application 10 8 80 5 8 40 8 8 72

Bonding time 8 6 48 6 6 36 4 6 24

Durability 6 9 54 8 9 72 9 9 81

Reliability 8 7 56 10 7 70 5 7 35

Nontoxic 8 6 48 10 6 60 8 6 48

Quoted price 5 10 50 9 10 90 7 10 70

Shelf-life in storage 9 6 54 6 6 36 6 6 36

Service factors 5 8 40 8 8 64 10 8 80

Overall evaluation score 430 468 446

for each product. Keep in mind that each alternative
product generally must meet a minimum specifica-
tion on each desired product characteristic for it to be
considered. The product or supplier having the highest
comparative rating is typically the product selected for
purchase. In this example, AdCo has the highest overall
evaluation, totaling 468!points, compared with BondIt’s
430 points and StikFast’s 446 points. In some cases, the
buyer may be focusing on one characteristic as being the
most important and will choose the seller that performs
best on that characteristic, assuming that minimum per-
formance specifications are met across all other criteria.
In the GM example, if “durability” were the most impor-
tant characteristic, with a minimum performance speci-
fication of “4” for all other criteria, then StikFast #217
would be chosen.

Despite such extensive evaluation, it is important to
keep in mind that buyers often find the biggest factor
differentiating one supplier from another is the sales-
person. They tend to find that one supplier’s offering
is not differentiated enough from another’s to make a
real difference. In this case, the buyer looks to the sales-
person as the point of differentiation. In fact, a study of
more than 80,000 business customers comprising 7,200
salesforces found that salesperson effectiveness is the
most important decision factor in choosing a vendor, ac-
counting for 39 percent of customers’ buying decisions.8

3-5c Employing Buyer Evaluation
Procedures to Enhance Selling
Strategies
Understanding evaluation procedures and gaining in-
sight as to how a specific buyer or team of buyers evalu-
ates suppliers and proposals is vital for the salesperson
to be effective and requires the integration of several
bases of knowledge. First, information gathered prior
to the sales call must be combined with an effective
needs-discovery dialogue with the buyer(s) to delineate
the buyer’s needs and the nature of the desired solution.
This establishes the most likely criteria for evaluation.
Further discussion between the buyer and seller can
begin to establish the importance the buyer places on
each of the different performance criteria and often
yields information as to what suppliers and products are
being considered. For an example of this see “From the
Classroom to the Field: Understanding Buyer Evalua-
tion Procedures.”

Using this information and the salesperson’s knowl-
edge of how his or her products compare with competi-
tors’ offerings allows the salesperson to complete a likely
facsimile of the buyer’s evaluation. With this enhanced
level of preparation and understanding, the salesperson
can plan, create, and deliver a more effective presentation

decision, BondIt’s salesperson might offer information to in-
fluence the buyer’s importance rating for ease of application
and storage shelf-life—two characteristics in which BondIt is
much stronger than the two competitors.

! Call Attention to Neglected Attributes. In the case in which
it becomes apparent that significant attributes may have
been neglected or overlooked by the buyer, the salesper-
son can increase the buyer’s evaluation of the proposed
offering by pointing out the attribute that was missed. For
instance, the BondIt #302 adhesive dries to an invisible,
transparent, and semiflexible adhesive compared with
the two competitors, which cure to a light gray color that
could detract from the final product in cases in which the
adhesive flowed out of the joint. The appearance of the
final product is a significant concern, and this neglected
attribute could substantially influence the comparative
evaluations.

3-5d Phase Six—Evaluation of
Proposals and#Selection of Suppliers
The buying decision is the outcome of the buyer’s evalua-
tion of the various proposals acquired from potential sup-
pliers. Typically, further negotiations will be conducted
with the selected supplier(s) for the purpose of estab-
lishing the final terms regarding product characteristics,
pricing, and delivery. Salespeople play a central role in
gaining the buyer’s commitment to the purchase decision
and in the subsequent negotiations of the final terms.

3-5e Phase Seven—Selection
of#an#Order#Routine
Once the supplier(s) has been selected, details associ-
ated with the purchase decision must be settled. These
details include delivery quantities, locations, and times
along with return policies and the routine for reorders
associated with the purchase. For cases in which the pur-
chase requires multiple deliveries over a period of time,
the routine for placing subsequent orders and making
deliveries must be set out and understood. Is the order
routine standardized on the basis of a prearranged time
schedule, or is the salesperson expected to monitor us-
age and inventories in order to place orders and schedule
shipments? Will orders be placed automatically through
the use of electronic data interchange or the Internet?
Regardless of the nature of the order routine, the sales-
person plays a critical role
in facilitating communi-
cation, completing order-
ing procedures, and set-
tling the final details.

using the five fundamental strategies that are inherent
within the evaluation procedures buyers use.

! Modify the Product Offering Being Proposed. Often, in
the course of preparing or delivering a presentation, it
becomes apparent that the product offering will not
maximize the buyer’s evaluation score in comparison with
a competitor’s offering. In this case, the strategy would be
to modify or change the product to one that better meets
the buyer’s overall needs and thus would receive a higher
evaluation. For example, by developing a better under-
standing of the adhesive buyer’s perceived importance
of certain characteristics, the BondIt salesperson could
offer a different adhesive formulation that is not as easy
to apply (low perceived importance) but offers improved
durability (high perceived importance) and more competi-
tive price (high#perceived importance).

! Alter the Buyer’s Beliefs about the Proposed Offering. Provide
information and support to alter the buyer’s beliefs as to
where the proposed product stands on certain attributes.
This is a recommended strategy for cases in which the
buyer underestimates the true qualities of the proposed
product. However, if the buyer’s perceptions are correct,
this strategy would encourage the salesperson to exag-
gerate and overstate claims and, thus, should be avoided.
In the instance of BondIt #302’s low evaluation score,
the salesperson could offer the buyer information and
evidence that the product’s durability and service factors
actually perform much better than the buyer initially
believed. By working with the buyer to develop a more
realistic perception of the product’s performance, BondIt
#302 could become the buyer’s preferred choice.

! Alter the Buyer’s Beliefs about the Competitor’s Offering. For
a variety of reasons, buyers often mistakenly believe that a
competitor’s offering has higher level attributes or qualities
than it actually does. In such an instance, the salesperson
can provide information to evidence a more accurate picture
of the competitor’s attributes. This has been referred to as
competitive depositioning and is carried out by
openly comparing (not simply degrading) the competing
offering’s attributes, advantages, and weaknesses. As an
illustration, the BondIt salesperson might demonstrate the
total cost for each of the three product alternatives, including
a quoted price, ease of application, and bonding time. BondIt
is much easier to apply and has a faster bonding time. Con-
sequently, less of it needs to be applied for each application,
which results in a significantly lower total cost and a much
improved evaluation score.

! Alter the Importance Weights. In this strategy, the salesperson
uses information to emphasize and thus increase the impor-
tance of certain attributes on which the product offering is
exceptionally strong. In the case of attributes on which the
offering might be short, the strategy would be to deempha-
size their importance. Continuing the adhesive purchase

competitive depositioning
Providing information to evidence
a more accurate picture of a
competitor’s attributes or qualities.

63CHAPTER 3: Understanding Buyers

3-5f Phase Eight—Performance
Feedback#and Evaluation
The final phase in the buying process
is the evaluation of performance and
feedback shared among all parties
for the purpose of improving future
performance and enhancing buyer–
seller relationships. Research sup-
ports that salespeople’s customer
interaction activities and communi-
cation at this stage of the buying pro-
cess become the primary determinants
of customer satisfaction and buyer loyalty.
Consequently, it is critical that salespeople
continue working with buyers after the sale. The
salesperson’s follow-up activities provide the critical points
of contact between the buyer and seller in order to ensure
consistent performance, respond to and take care of prob-
lems, maximize customer satisfaction, create new value op-
portunities, and further enhance buyer–seller relationships.

3-6 UNDERSTANDING
POSTPURCHASE
EVALUATION AND
THE FORMATION OF
SATISFACTION

Research shows that
buyers evaluate their
experience with a prod-
uct purchase on the
basis of product char-
acteristics that fall into a
two-factor model of
evaluation as de-
picted in Figure 3.4.9
The first category,
functional attributes,
refers to the features
and characteristics that
are related to what the
product actually does or
is expected to do—its
functional characteris-
tics. These functional
characteristics have
also been referred to as

must-have attributes, features of the core
product that the customer takes for grant-

ed. These are the attributes that must be
present for the supplier or product to

even be included among those being
considered for purchase. Conse-
quently, they tend to be fairly com-
mon across the set of suppliers and
products being considered for pur-
chase by a buyer. Characteristics
such as reliability, durability, con-
formance to specifications, com-

petitive pricing, and performance are
illustrative of functional attributes.

Psychological attributes make
up the second general category. This cat-
egory refers to how things are carried out

and done between the buyer and seller. These supplier
and market offering characteristics are described as the
delighter attributes—the augmented features and
characteristics included in the total market offering that
go beyond buyer expectations and have a significant pos-
itive impact on customer satisfaction. The psychological
or delighter characteristics are not perceived as being
universal features across the evoked set of suppliers and
market offerings being considered. Rather, these are
the differentiators between the competitors. The com-
petence, attitudes, and behaviors of supplier personnel
with whom the buyer has contact, as well as the salesper-
son’s trustworthiness, consideration for the customer, re-
sponsiveness, ability to recover when there is a problem,
and innovativeness in providing solutions are exemplary
psychological attributes.

3-6a The Growing Importance of
Salespeople in Buyers’ Postpurchase
Evaluations
Understanding the differential impact of functional
(must-haves) and psychological (delighters) attributes is
important for salespeople. Functional attributes possess
a close correspondence to the technical and more tan-
gible product attributes, whereas the psychological at-
tributes are similar to the interpersonal communication
and behaviors of salespeople and other personnel hav-
ing contact with customers. Numerous research stud-
ies across a variety of industries evidence psychological
attributes as having up to two times more influence on
buyer satisfaction and loyalty than functional attributes.
This observation underscores special implications for
salespeople, as it is their interpersonal communication

fatmawati achmad zaenuri/Shutterstock.com

two-factor model of
evaluation A postpurchase
evaluation process buyers use that
evaluates a product purchase using
functional and psychological attributes.

functional attributes The
features and characteristics that are
related to what the product actually
does or is expected to do.

must-have attributes
Features of the core product that
the!customer takes for granted.

psychological attributes
A category of product characteristics
that refers to how things are carried out
and done between the buyer and seller.

delighter attributes The
augmented features included in the total
market offering that go beyond buyer’s
expectations and have a significant
positive impact on customer satisfaction.

Buyers evaluate functional attributes and psychological attributes of a sales o!ering to assess overall performance
and satisfaction.

FIG. 3.4 THE TWO!FACTOR MODEL OF BUYER EVALUATION

Functional Attributes
Meeting standards
Operating trouble free
Performing as expected
Product uniformity

Buyers’
Level of

Satisfaction

Psychological Attributes
Ability to respond to

requests
Being innovative
Consideration for the

customer
Eagerness to satisfy
Able to do the job right

Level of
Influence on Buyers’
Satisfaction is 37%

Level of
Influence on Buyers’
Satisfaction is 63%

“Must-Haves”

“Delighters”

and behaviors—what they do—that make up the psycho-
logical attributes. Although both categories of product
characteristics are important and have significant influ-
ences on buyer satisfaction, the activities and behaviors
of the salesperson as she or he interacts with the buyer
have more impact on that buyer’s evaluation than the
features of the product or service itself.10

3-7 TYPES OF PURCHASING
DECISIONS

Buyers are learners in that purchase decisions are not
isolated behaviors. Buyer behavior and purchase deci-
sions are based on the relevant knowledge that buy-
ers have accumulated from multiple sources to assist
them in making the proper choice. Internally, buyers
reflect on past experiences as guides for making pur-
chase decisions. When sufficient knowledge from past

experiences is not available, buyers access external
sources of information: secondary sources of informa-
tion (e.g., trade journals, product test reports, white
papers, advertising) and other individuals (e.g., sales-
people) the buyer perceives as being trustworthy and
knowledgeable in a given area. For more information
on how how the type of purchasing decision can influ-
ence the purchasing process, see “Selling in Action:
The Influence of Purchasing Decision Type.”

The level of experience and knowledge a buyer or
buying organization possesses relevant to a given pur-
chasing decision is a primary determinant of the time
and resources the buyer will allocate to that purchasing
decision. The level of a buyer’s existing experience and
knowledge has been used to categorize buyer behavior
into three types of purchasing decisions: straight re-
buys, modified rebuys, and new tasks. As summarized in
Exhibit 3.7, selling strategies should reflect the differ-
ences in buyer behaviors and decision-making character-
istic of each type of buying!decision.

65CHAPTER 3: Understanding Buyers

Exhibit 3.7

Three Types of Purchasing Decisions
Decision Type

Straight Rebuy Modified Rebuy New Task

Newness of problem or need Low Medium High

Information requirements Minimal Moderate Maximum

Information search Minimal Limited Extensive

Consideration of new alternatives None Limited Extensive

Multiple buying in$uences Very small Moderate Large

Financial risk Low Moderate High

Selling in Action
The Influence of Purchasing Decision Type
Andrea Young graduated from the University of Central
Missouri in May 2016 and went to work as an account
executive at Division D, offering innovative, evolving ad
units to help advertisers thrive in the online advertising
marketplace. Andrea discusses the influence of the
type of purchasing decision in the purchasing process.

“Understanding the nature of the buyer and of
the purchase itself, be it straight rebuy, new task, or
modified rebuy allows the salesperson to adapt the

message. At Division D, it should be noted, that there
was a spectrum within the new task buy situation
where, as an account executive, you were required to
figure out if the buyer had any familiarity with digital
online marketing at all and adapt your message from
there. The size of the buying agency or company,
and how advanced they were in the development of
their online marketing, changed the content and the
depth of not only the information that was required
for them to decide, but also the amount of continued
communication required throughout the entire process.”

3-7a Straight Rebuys
If past experiences with a product resulted in high lev-

els of satisfaction, buy-
ers tend to purchase
the same product from
the same sources. Com-
parable with a routine

repurchase in which nothing has changed, the straight
rebuy decision is often the result of a long-term pur-
chase agreement. Needs have been predetermined
with the corresponding specifications, pricing, and
shipping requirements already established by a blan-
ket purchase order or an annual purchase agreement.
Ordering is automatic and often computerized by using

straight rebuy decision
A purchase decision resulting from an
ongoing purchasing relationship with
a supplier.

electronic data interchange (EDI) and e-commerce
(Internet, intranet, and extranet). Walmart, for instance,
uses EDI to link with one of the suppliers of its slacks, the
Seminole Manufacturing Company. This has cut delivery
time of the slacks by 50 percent on a product that is regu-
larly purchased via straight rebuy decision making.11

Although no purchasing decision begins as a straight
rebuy, once established buyers allocate little, if any, time
and resources to this form of purchase decision. The pri-
mary emphasis is on receipt of the products and their
continued satisfactory performance. With most of the
purchasing process automated, straight rebuy decisions
are little more than record keeping that clerical staff in
the purchasing office often handles.

For the in-supplier (a current supplier), straight
rebuys offer the advantage of reduced levels of poten-
tial competition. Rather than becoming com placent,
however, in-salespeople must continually monitor the
com petitive environment for advances in product ca-
pabilities or changes in price structures. They should
also follow up on deliveries and interact with users as
well as decision makers to make sure that product and
performance continue to receive strong and positive
evaluations.

Straight rebuy decisions present a major challenge
to the out-salesperson. Buyers are satisfied with
the! products and services from current suppliers and
see no need to change. This is a classic case where the
buyer perceives no difference or needs gap between
the actual and desired state. Consequently, there is
no active buying motive to which the out-salesperson
can respond. In this case, out-salespeople are typi-
cally presented with two strategy choices. First, they
can continue to make contact with the buyer so that
when there is a change in the buying situation or if the
current supplier makes a mistake, they are there to re-
spond. Content marketing, mentioned earlier, can help

in this regard. Second, they can provide information
and evidence relevant to either the desired or actual
states so that the buyer will perceive a needs gap. For
example, Seminole’s competitors will find it most dif-
ficult to gain this portion of Walmart’s business by of-
fering similar or equal products and systems. However,
a competitor might adopt future advances in technol-
ogy that would enable them to offer significant added
value over and beyond that which Seminole offers.
Effectively communicating and demonstrating their
advanced capabilities holds the potential for raising the
desired state and thus producing a needs gap favoring
their solution over Seminole’s existing sales offering.

3-7b New Tasks
The purchase decision characterized as a new task
decision occurs when the buyer is purchasing a
product or service for the first time. As illustrated in
Figure!3.5, new task purchase decisions are located at
the opposite end of the continuum from the straight re-
buy and typify situations in which buyers have no experi-
ence or knowledge on which to rely. Consequently, they
undertake an extensive purchase decision and search
for information designed to identify and compare al-
ternative solutions. Reflecting the extensive nature of
this type of purchase decision, multiple members of the
buying team are usually involved. As a result, the sales-
person will be working with several different individu-
als rather than a single
buyer. Mitsubishi buy-
ers and suppliers were
presented with new task
decisions when the new
Mitsubishi four-wheel-
drive sport utility vehicle
was moving from design
to production. Moving

CONTINUUM OF TYPES OF PURCHASING DECISIONSFIG. 3.5

Straight
Rebuy

Modi!ed
Rebuy

New
Task

Habitual and
Routine

Decision Making

Extensive
Consideration and
Decision Making

electronic data
interchange (EDI) Transfer
of data electronically between two
computer systems.

new task decision A
purchase decision that occurs when
a buyer is purchasing a product or
service for the first time.

67CHAPTER 3: Understanding Buyers

from their historical two-wheel-drive to four-
wheel-drive power lines and transmis-
sions presented a variety of new
needs and problems.

Relevant to a new task
purchasing decision, there
is no in- or out-supplier.
Further, the buyer is
aware of the existing needs
gap. With no prior experi-
ence in dealing with this
particular need, buyers
are often eager for infor-
mation and expertise that
will assist them in effec-
tively resolving the per-
ceived needs gap. Selling
strategies for new task de-
cisions should include collaborating with the buyer in
a number of ways. First, the salesperson can provide
expertise in fully developing and understanding the
need. The salesperson’s extensive experience and base
of knowledge is also valuable to the buyer in terms of
specifying and evaluating potential solutions. Finally,
top salespeople will assist the buyer in making a pur-
chase decision and provide extensive follow-up to en-
sure long-term satisfaction. By implementing this type
of a consultative strategy, the salesperson establishes
a relationship with the buyer and gains considerable
competitive advantage.

3-7c Modified Rebuys
Modified rebuy decisions occupy a middle position
on the continuum between straight rebuys and new tasks.
In these cases, the buyer has experience in purchasing
the product in the past but is interested in acquiring ad-
ditional information regarding alternative products and/
or suppliers. As there is more familiarity with the deci-
sion, there is less uncertainty and perceived risk than for
new task decisions. The modified rebuy typically occurs
as the result of changing conditions or needs. Perhaps the
buyer wishes to consider new suppliers for current pur-
chase needs or new products that existing suppliers offer.

Continuing the example
of buyer–seller experi-
ences at Walmart, the
company decided to re-
examine its sources for
slacks this would corre-
spond to the characteris-
tics of a modified rebuy

decision. Changing consumer styles, coupled with rising
prices by their current supplier, may prompt them

to consider alternative suppliers to provide
them with slacks.

Often a buyer enters
into a modified rebuy type

of purchase decision simply
to check the competitiveness of

existing suppliers in terms of the
product offering and pricing levels.

Consequently, in-salespeople
will emphasize how well their
product has performed in re-
solving the needs gap. Out-
salespeople will use strategies
similar to those undertaken
in the straight rebuy. These
strategies are designed to al-

ter the relative positions of the desired and actual states in
a way that creates a perceived gap and influences buyers
to rethink and reevaluate their current buying patterns
and suppliers.

3-8 UNDERSTANDING
COMMUNICATION STYLES

Verbal and nonverbal messages can also provide sales-
people with important cues regarding buyers’ personali-
ties and communication styles. Experienced salespeople
emphasize the importance of reading and responding to
customer communication styles. Effectively sensing and
interpreting customers’ communication styles allows sales-
people to adapt their own interaction behaviors in a way
that facilitates buyer–seller communication and enhances

Sea World worked with St. Charles-based
Craftsmen Industries to develop a pod of
six!Shamu cruisers to meet its new task
decision on a means for conducting a
special Shamu promotion.

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Walmart is involved in straight rebuy, new
task, and modified rebuy decisions.

modified rebuy decision
A purchase decision that occurs when
a buyer has experience in purchasing
a product in the past but is interested
in acquiring additional information
regarding alternative products and/or
suppliers.

relationship formation. Most sales training programs use
a two-by-two matrix as a basis for categorizing commu-
nication styles into four primary types.12 As Figure 3.6 il-
lustrates, the four styles are based on two determinant
dimensions: assertiveness and responsiveness.

Assertiveness—Assertiveness refers to the degree
to which a person holds opinions about issues and
attempts to dominate or control situations by directing
the thoughts and actions of others. Highly assertive
individuals tend to be fast-paced, opinionated, and quick
to speak out and take confrontational positions. Low-
assertive individuals tend to exhibit a slower pace. They
typically hold back, let others take charge, and are slow
and deliberate in#their communication and#actions.

Responsiveness—Responsiveness points to the level
of feelings and sociability an individual openly displays.
Highly responsive individuals are relationship-oriented
and openly emotional. They readily express their feelings
and tend to be personable, friendly, and informal.
However, low-responsive individuals tend to be task-
oriented and very controlled in their display of emotions.
They tend to be impersonal in dealing with others, with an
emphasis on formality and#self-discipline.

The actual levels of assertiveness and responsive-
ness will vary from one individual to another on a contin-
uum ranging from high to
low. An individual may be
located anywhere along
the particular continuum,
and where! the individual
is located determines the
degree to which he or
she possesses and dem-
onstrates the particular

COMPARISON OF THE PRINCIPAL CHARACTERISTICS OF ASSERTIVENESS
AND”RESPONSIVENESS

FIG. 3.6

Low Assertiveness

Low Responsiveness

High Assertiveness

High Responsiveness

Slow-Paced
Cooperative
Avoids Taking Risks
Supportive
Team Player
Nondirective
Easygoing
Reserved in Expressing
Opinions

Task-Oriented
Guarded and Cool
Rational
Meticulous Organizer
Inflexible Regarding
Time
Controlled Gesturing
Nondirective
Formal

Fast-Paced
Competitive
Takes Risks
Independent
Directive
Confrontational
Forcefully Expresses
Opinions

Relationship-Oriented
Open and Warm
Emotional
Unorganized
Flexible Regarding Time
Highly Animated
Spontaneous
Informal

Most sales training programs use a two-by-two matrix as a basis for categorizing communication styles into four primary
types. The four styles are based on two dimensions: assertiveness and responsiveness.

assertiveness The degree
to which a person holds opinions
about issues and attempts to
dominate or control situations by
directing the thoughts and actions
of others.

responsiveness The level of
feelings and sociability an individual
openly displays.

Verbal and nonverbal
messages can provide

salespeople with important
cues regarding buyers’

personalities and
communication styles.

69CHAPTER 3: Understanding Buyers

behaviors associated with that dimension. Figure 3.6
illustrates the range of behaviors commonly associated
with each dimension.

Overlaying the assertiveness and responsiveness di-
mensions produces a four-quadrant matrix as illustrated
in Figure 3.7. The four quadrants characterize an indi-
vidual as exhibiting one of four different communication
styles on the basis of his or her demonstrated levels of
assertiveness and responsiveness. Amiables are high on
responsiveness but low on assertiveness. Expressives
are defined as high on both responsiveness and asser-
tiveness. Drivers are low on responsiveness but high on
assertiveness. Analyticals are characterized as being low
on assertiveness as well as responsiveness. A salesper-
son’s skill in properly classifying customers can provide
valuable cues regarding customer attitudes and behav-

iors. In turn, these cues
allow the salesperson
to be more effective
by adapting his or her
communication and re-
sponses to better fit the
customer’s style.
Amiables—Developing
and maintaining close
personal relationships are

important to amiables. Easygoing and cooperative,
they are often characterized as friendly back-slappers
due to their preference for belonging to groups and their
sincere interest in other people—their hobbies, interests,
families, and mutual friends. With a natural propensity
for talking and socializing, they have little or no desire
to control others but rather prefer building consensus.
Amiables are not risk takers and need to feel safe in
making a decision. Somewhat undisciplined with regard
to time, amiables appear to be slow and deliberate in
their actions. They avoid con$ict and tend to be more
concerned with opinions—what others think—than with
details and facts. When confronted or attacked, amiables
tend to submit. In working with an amiable customer,
salespeople should remember that their priority “must-
have” is to be liked and their fundamental “want” is for
attention.

Expressives—Expressives are animated and highly
communicative. Although very competitive by nature,
they also exhibit warm personalities and value building
close relationships with others. In fact, they dislike
being alone and readily seek out others. Expressives
are extroverted and are highly uninhibited in their
communication. When confronted or crossed, they will
attack. Enthusiastic and stimulating, they seem to talk
in terms of people rather than things and have a ready
opinion on everything. Yet, they remain open-minded and
changeable. Expressives are fast paced in their decision

COMMUNICATION STYLES MATRIXFIG. 3.7

Amiables
Relationship-Oriented
Slow-Paced

Expressives
Relationship-Oriented
Fast-Paced

Analyticals
Task-Oriented
Slow-Paced

Drivers
Task-Oriented
Fast-Paced

High
Responsiveness

Low
Responsiveness

Low
Assertiveness

High
Assertiveness

The four quadrants characterize an individual as one of four di!erent communication styles on the basis of his or her
demonstrated levels of assertiveness and responsiveness. A salesperson’s skill in properly classifying customers can provide
valuable cues regarding customer attitudes and behaviors.

amiables Individuals who are
high on responsiveness, low on
assertiveness, prefer to belong to
groups, and are interested in others.

expressives Individuals who
are high on both responsiveness
and assertiveness, are animated,
communicative, and value building
close relationships with others.

making and behavior and prefer the big picture rather
than getting bogged down in details. As a result, they
are very spontaneous, unconcerned with time schedules,
and not especially organized in their daily lives. They
are creative, comfortable operating on intuition, and
demonstrate a willingness to take risks. The two keys for
expressives that salespeople must keep in mind are the
“must-have” of never being hurt emotionally and their
underlying “want” is#attention.

Drivers—Sometimes referred to as the director or
dictator style, drivers are hard and detached from
their relationships with others. Described as being cool,
tough, and competitive in their relationships, drivers are
independent and willing to run over others to get their
preferred results. As they seek out and openly demonstrate
power and control over people and situations, they are
di%cult to get close to and appear to treat people as things.
Drivers are extremely formal, businesslike, and impatient,
with a penchant for time and organization. They are highly
opinionated, impatient, and quick to share those opinions
with those around them. When attacked or confronted,
drivers will dictate. Drivers exhibit a low tolerance for taking
advice, tend to be risk takers, and favor making their own
decisions. Although they are highly task-oriented, drivers
prefer to ignore facts and “gures and instead rely on their
own gut feelings in making decisions—after all, they do
know it all. When working with drivers, salespeople should
remember that this style’s “must-have” is winning, and their
fundamental “want” is results.

Analyticals—The descriptive name for this style is derived
from their penchant for gathering and analyzing facts
and details before making a decision. Analyticals
are meticulous and disciplined in everything they do.
Logical and very controlled, they are systematic problem
solvers and thus very deliberate and slower in pace. In
stressful situations and confrontations, analyticals tend to
withdraw. Many times, they appear to be nit-picky about
everything around them. They do not readily express
their feelings nor are they spontaneous in their behaviors.
As a result, they are often seen as being cool and aloof.
Analyticals shy away from personal relationships and
avoid taking risks. Time and personal schedules are close

to being a religious ritual for the analytical. The two
fundamentals that salespeople must keep in mind when
working with this style are the “must-have” of being
right and the underlying “want” for analytical activities.
Figure 3.8 outlines the “must haves” and “wants” for each
of the four communication styles.

3-8a Mastering Communication
Style Flexing
In addition to sensing and interpreting the customer’s
communication style, a salesperson must also be aware
of his or her own personal style. Mismatched and pos-
sibly clashing styles can be dysfunctional and present
significant barriers to communication and relationship
building. To minimize possible negative effects stem-
ming from mismatched styles, salespeople can flex their
own style to facilitate effective communication. For ex-
ample, an expressive salesperson calling on an analytical
buyer would find considerable differences in both pace
and relationship/task-orientation that could hinder the
selling process unless adjustments are made. Flexing
his or her own style to better match that of the buyer
enhances communication. In terms of our example, the
salesperson would need to make adjustments by slowing
down his or her natural pace, reining in the level of spon-
taneity and animation, and increasing task orientation by
offering more detailed information and analysis.

Adapting to buyers by flexing his or her own com-
munication style has been found to have a positive
impact on salespeople’s
performance and the
quality of buyer–seller
relationships. Neverthe-
less, flexing should not
be interpreted as mean-
ing an exact match be-
tween a salesperson’s
style and that of a cus-
tomer. Not only is it not

“MUST HAVES” AND “WANTS” OF THE FOUR COMMUNICATION STYLESFIG. 3.8

Must Have Want

Amiables Be liked Attention

Expressives Never be hurt emotionally Attention

Drivers Winning Results

Analyticals Being right Analytical activities

drivers Individuals who are
low on responsiveness, high on
assertiveness and detached from
relationships.

analyticals Individuals who
are low on responsiveness and
assertiveness, analytical and
meticulous, and disciplined in
everything they do.

71CHAPTER 3: Understanding Buyers

required, exact matches could even be detrimental.
For example, a buyer and seller with matching expres-
sive styles could easily discover that the entire sales
call regressed to little more than a personal discussion
with nothing of substance being accomplished. How-
ever, a buyer and seller matched as drivers could find
it difficult, if not impossible, to reach a decision that
was mutually beneficial. Rather than matching the
buyer’s style, flexing infers that the salesperson should
adjust to the needs and preferences of the buyer to
maximize effectiveness. Growmark, an international
agricultural product and service organization, teach-
es its salespeople to flex throughout their interaction
with a buyer by studying different behaviors a sales-
person might demonstrate with each style of buyer.
(See Appendix!3 online.)13

Study and compare the flexing behaviors that Grow-
mark recommends that their salespeople demonstrate
when working with each buyer communication style.
Note the differences in recommended salesperson
behavior and rationalize them in terms of the specific
characteristics of each buyer’s style. Overlaying and in-
tegrating these two sets of information will enhance the
understanding of how to flex to different buyers and why
that form of flexing is recommended.

It is not always possible to gain much information
about a buyer’s communication style, especially if the
buyer is new. If this is the case, it may be more appro-
priate to assume that the buyer is an analytical-driver
and prepare for this style. If the buyer proves to be
close to an amiable-expressive, then the salesperson
can easily adapt. It is much more difficult to prepare

for the amiable-expres-
sive and then switch
to an analytical-driver
style.

3-9 BUYING
TEAMS

A single individual typi-
cally makes routine pur-
chase decisions such as
straight rebuys and sim-
pler modified rebuys.
However, the more
complex modified rebuy
and new task purchase
decisions often involve

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Complex buying decisions incorporate
buying influences of people from different
departments of an organization.

buying teams Teams of
individuals in organizations
that!incorporate the expertise
and!multiple buying influences
of!people from different departments
throughout the organization.

initiators Individuals within an
organization who identify a need.

influencers Individuals within an
organization who guide the decision
process by making recommendations
and expressing preferences.

users Individuals within an
organization who will actually use the
product being purchased.

deciders Individuals within an
organization who have the ultimate
responsibility of determining which
product or service will be purchased.

the joint decisions of multiple participants within a buy-
ing center or team. Buying teams (also referred to as
buying centers) incorporate the expertise and multiple
buying influences of people from different departments
throughout the organization. As the object of the pur-
chase decision changes, the makeup of the buying team
may also change to maximize the relevant expertise of
team members. The organization’s size, as well as the
nature and volume of the products being purchased,
will influence the actual number and makeup of buy-
ing teams. The different members of a buying team will
often have varied goals reflecting their individual needs
and those of their different departments.

Buying team members are described in terms of
their roles and responsibilities within the team.14

! Initiators—Initiators are individuals within the orga-
nization who identify a need or perhaps realize that the
acquisition of a product might solve a need
or problem.

! Influencers—Individuals who guide the decision
process by making recommendations and expressing
preferences are referred to as influencers. While they
could be anyone, they are often technical or engineering
personnel.

! Users—Users are the individuals within the organiza-
tion who will actually use the product being purchased.
They evaluate a product on the basis of how it will affect
their own job performance. Users often serve as initiators
and influencers.

! Deciders—The ultimate responsibility for determining
which product or service will be purchased rests with
the role of deciders. Although buyers might also be
deciders, it is not unusual for different people to fill
these roles.

! Purchasers—Purchasers have the responsibility for
negotiating final terms of purchase with suppliers and
executing the actual purchase or acquisition.

! Gatekeepers—Members who are in the position to
control the flow of information to and between vendors
and other buying center members are referred to as
gatekeepers. This often includes secretaries and
administrative assistants.

Although each of these influencer types will not
necessarily be present on all buying teams, the use of
buying teams incorporating some or all of these multiple
influences has increased in recent years. One example
of multiple buying influences is offered in the experi-
ence of an Executive Jet International salesperson sell-
ing a Gulfstream V corporate jet to a Chicago-based
pharmaceutical company. Stretching over a period of
six months, the salesperson worked with a variety of in-
dividuals serving different roles within the buying orga-
nization:

! Initiator: The initiator of the purchase process was the
chief operating officer of the corporation who found that
the recent corporate expansions had outgrown the effec-
tive service range of the organization’s existing aircraft.
Beyond pointing out the need and thus initiating the
search, this individual would also be highly involved in
the final choice based on her personal experiences and
perceived needs of the#company.

! Influencers: Two different employee groups acted as the
primary influencers. First were the corporate pilots who
contributed a readily available and extensive background
of knowledge and experience with a variety of aircraft
types. Also playing a key influencer role were mem-
bers from the capital budgeting group in the finance
department. Although concerned with documented
performance capabilities, they also provided inputs and
assessments of the different alternatives using their
capital investment models.

! Users: The users provided some of the most dynamic
inputs, as they were anxious to make the transition to#a
higher–performance aircraft to enhance their own#effi-
ciency and performance in working at marketing/sales
offices and plants that now stretched over the continents
of North and South America. Primary players in this
group included the vice presidents for marketing and for
production/operations in addition to the corporate pilots
who would be flying the plane.

! Deciders: Based on the contribution and inputs of each
member of the buying team, the chief executive officer
would make the ultimate decision. Her role as decider
was based more on her position within the firm rather
than her use of the chosen alternative, given that she
traveled primarily by commercial carriers. As the
organization’s highest operating officer, she was in

a position to move freely among all members of the buy-
ing team and make the decision on overall merits rather
than personal feelings or desires.

! Purchaser: The corporate purchasing department was
responsible for making the actual purchase, negotiating
the final terms, and completing all the required paper-
work, with the director of purchasing actually assuming
the immediate contact role. The purchasing office typi-
cally handles purchasing contracts and is staffed to draw
up, complete, and file the related registrations and legal
documents.

! Gatekeepers: This purchase decision actually involved#two
different gatekeepers within the customer organization:
the executive assistant to the chief operating officer and
an assistant purchasing officer. The positioning of these
gatekeepers facilitated the salesperson’s exchange of
information and ability to keep in contact with the various
members of the buying team. The COO’s executive assis-
tant moved easily among the various executives influenc-
ing the decision and was able to make appointments with
the right people at the right times. However, the assistant
purchasing officer was directly involved with#the coordina-
tion of each member and bringing their various inputs into
one summary document for the CEO. The salesperson’s
positive dealings and good relationships with each of the
gatekeepers played a significant role in Executive Jet
getting the sale.

A classic and all-too-common mistake among sales-
people is to make repetitive calls on a purchasing manager
over a period of several months only to discover that a buy-
ing team actually exists and that someone other than the
purchasing manager will make the ultimate decision. Sales-
people must gather information to discover who is in the
buying team, their individual roles, and which members are
the most influential. This information might be collected
from account history files, people inside the salesperson’s
organization who are familiar with the account sources
within the client organization, conversations with the initial
buyer contact, and even other salespeople. A salesperson
should work with all members of the buying team and be
careful to address their varied needs and objectives prop-
erly. Nevertheless, circumstances sometimes prevent a
salesperson from working with all members of the team,
and it is important that the
salesperson reaches those
that are most influential.

It may be difficult,
however, to get past the
gatekeeper to reach those
individuals most influen-
tial in the buying process.
Brett Eiskina, Corpo-
rate Acquisition Account

purchasers Organizational
members who negotiate final terms
of the purchase and execute the
actual purchase.

gatekeepers Members of an
organization who are in the position
to control the flow of information
to and between vendors and other
buying center members.

73CHAPTER 3: Understanding Buyers

Executive at Sprint Nextel, has found that using so-
cial media allows him to bypass the gatekeeper and go
directly to decision makers. As Brett explains, “In
the past, effective gatekeepers have been a salesper-
son’s worst nightmare. There is nothing worse than
repeatedly calling on a client only to learn that they are
always “In a meeting” or “Out of the office” EVERY
time you call. Well, with the growing number of peo-
ple using social media, it is becoming increasingly
easier for salespeople to skip those gatekeepers and go
straight to those decision makers. I have found Linked
In to be particularly valuable. It gives me information and
insight to buyers (e.g., college, field of study, groups they
belong to) that I would never have known before contact-
ing them. I’ve set many appointments simply by mention-
ing that I was an alum of the same college as the person
I was trying to reach out to. LinkedIn will also show you
if you have any mutual connections that you can query
for information before reaching out for the appointment.
Don’t just stick to LinkedIn though; Hoovers, Data.com,
Twitter, and even Facebook are all very powerful tools
that can help you get an edge over the other salespeople
reaching out to the same decision maker.”

3-10 ENGAGING CUSTOMERS
Today’s business organizations are undergoing profound
change in response to ever-increasing competition and
rapid changes in the business environment. The world-
wide spread of technology has resulted in intense and
increasingly global competition that is highly dynamic
in nature. Accelerating rates of change have fragmented
what were once mass markets into more micro and niche
markets composed of more knowledgeable and demand-
ing customers with escalating expectations. In response,
traditional purchasing practices are also rapidly changing
to ensure that customers are fully engaged.

3-10a Focusing on the Customer
Experience
A study of customer experience professionals from large
multinational B-to-B organizations representing an ar-
ray of industries provides insight on what the business
customer experience will look like moving forward.15
According to the study, customers will expect compa-
nies to have a clear understanding of their needs and to
proactively address their current and future needs with
a personalized customer experience. Accessing the In-
ternet to get the most current information on products,

solutions, and best practices, customers will have a
more informed base of understanding and will expect
an equally informed salesperson. Consequently, sales-
people must move beyond providing solutions to current
needs and move toward “insight selling” by anticipat-
ing and fulfilling customer needs necessary for them to
adeptly face the future. Salespeople must have access
to customer intelligence and emphasize proactive and
personalized customer support. According to the survey,
62 percent of respondents indicated that they are invest-
ing in understanding individual customer characteristics
to better meet the changing needs of customers. To keep
customers, salespeople will be required to anticipate needs
along the stages of the customer lifecycle and proactively
respond. This will entail the use of big data to generate
customer intelligence that can be used to provide a com-
prehensive view of the customer. Customers will expect
sellers to keep them informed by interacting with them
using the buyer’s preferred method of communication.
Exhibit 3.8 indicates communication channels most likely
to be used often by business customers in 2020.16

3-10b The Role of Information
Technology
Buyers and sellers alike are using technology to enhance
the effectiveness and efficiency of the purchasing pro-
cess. Business-to-business e-commerce is rapidly grow-
ing. Although EDI over private networks has been in use
for some time, nearly all the current growth has been in
Internet-based transactions.

Information technology electronically links buyers
and sellers for direct and immediate communication
and transmission of information and data. Transactional
exchanges such as straight rebuy decisions can now be
automated with Internet- and World Wide Web-enabled
programs tracking sales at the point of purchase and cap-
turing the data for real-time inventory control and order
placing. By cutting order and shipping times, overall cycle
times are reduced, mistakes are minimized, and working
capital invested in inventories is made available for more
productive applications. Further, the automation of these
routine transactions allows buyers and salespeople to de-
vote more time to new tasks, complex sales, and postsale
service and relationship-building activities.

Customer relationship management (CRM) sys-
tems integrated with the Web allow reps to have a more
informed conversation with prospects and customers by
helping them better understand customers. Sales organi-
zations know keywords searched to find the seller’s compa-
ny, pages clicked on the company’s Web site, and particular

products and services buyers examined prior to asking for
more information. Additionally, data collected on custom-
er demographics, sales and customer service histories, and
marketing preferences and customer feedback can be eas-
ily accumulated through a CRM system and used to bet-
ter understand customers and provide customized offer-
ings to best serve their needs. Dell supplements its CRM
system with software provided by Lattice, which provides
sales reps with comprehensive intelligence (e.g., past pur-
chases, corporate activity, likely next purchase from Dell)
obtained via LinkedIn announcements, website informa-
tion, and other public statements or sources of informa-
tion) that allows them to participate in relevant and timely
discussions with prospects and customers. Moreover, the
software looks for buying triggers and behavior and con-
verts them into mathematical algorithms that can predict
the likelihood that a potential customer will buy a certain
product.17 Social networking technologies are likely to play

an important role in CRM systems, making it more con-
venient for customers to provide information that goes
into product planning and development, as well as provide
deeper insights into customer buying motives.

For instance, Microsoft offers its Sales Productiv-
ity CRM software that incorporates Outlook, Lync,
Skype, and Yammer to allow for social collaboration
between buyers and sellers. To see how Cisco Systems,
Inc. incorporates business analytics provided by
FirstRain to gain a deeper understanding of its cus-
tomers, see “Technology in Selling: Understanding
Customers from an Outside-In Perspective.”18

In addition to facilitating exchange transactions,
applications integrating the Internet are also being used
to distribute product and company information along
with training courses and materials. Several companies
have begun publishing their product catalogues online
as a replacement for the reams of product brochures

Exhibit 3.8

Communication Channels Likely to Be Used Often in 2020

Online Community

Social Media

Corporate Website

E-mail

Web Meetings

Phone

Likely to Be Used in 2020

In-Person

Text/SMS

Customer Events/
Conferences

Advisory Boards/
Customer Councils

10% 20% 30% 40% 50% 60% 70% 80%

69%

63%

55%

54%

49%

39%

Video Conferencing 44%

35%

27%

75CHAPTER 3: Understanding Buyers

Technology in Selling
Understanding Customers from an Outside-in
Perspective
Cisco Systems, Inc., a leader in developing,
manufacturing, and selling information technology,
prides itself on understanding customers, which it
credits as being a key element in creating long-term
customer relationships. To ensure its customers’ needs
were met, Cisco determined that it needed to take an
“outside-in” approach to understanding its customers.
This involved listening to specific public conversations
about customers, markets, and industries to better
understand the challenges facing its customers. To
accomplish this goal, Cisco sought a platform that
would provide them a holistic, comprehensive view to
harness their knowledge in a single repository. They
found such a platform in FirstRain.

FirstRain technology platform captures the
enormous amount of unstructured data available
across the Web and applies layered algorithms to
mine meaning, extract business developments and
implicit relationships, and distribute an in-depth timely
understanding of events unfolding in companies and
markets. The salesforce at Cisco uses FirstRain to track
every C-level discussion on any campaign or topic so
that each of its salespeople can attend any customer
meeting prepared with a real-time, unmatched view
of the space in which they operate.

FirstRain streamlines the information-gathering
process for Cisco salespeople by providing one source
for the specific conversations about customer topics
and campaigns on a daily basis. Salespeople can access
this information via e-mail, portal, or a mobile device.
The analytics provided by FirstRain offer insights that
empower the sales team to provide the kind of highly
focused conversations with customers that formerly
was not possible. In sum, FirstRain allows the Cisco
salesforce to continuously remain abreast of market,
customer, and competitor news to improve their
effectiveness with customers.

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salespeople have traditionally had to carry with them.
The online catalogues can be easily updated without the
expense of obsolete brochures and can be selectively
downloaded by salespeople to create customized pre-
sentations and proposals.

Sellers are also turning to automation software to
help them gather customer information. For instance,
a software product called Amity Lifecycle uses flexible
business rules to sense changes in customer rhythms
to allow salespeople to deliver timely, tailored engage-
ment that matches the needs of every customer.

3-10c Buyers’ Demand for Access
to Relevant Information
With ever-expanding information technology, buyers
have easier access to information on vendors and are uti-
lizing technology to become more informed buyers. This
has shifted some of the power to buyers, who can accom-
pany more bidders, making the landscape even more
competitive. As buyers increasingly undertake a larger
share of the purchase process on their own, they are
demanding that sellers make available to them relevant

content to help them justify their buying decisions. Buy-
ers often do their own research rather than waiting for
salespeople to contact them. As such, buyers are de-
manding that information be made available to them
via their laptops, desktops, iPads, and smartphones as
they seek out more and more information prior to con-
necting with a salesperson. These buyers are looking for
personalized dialogue that can help guide them through
the decision process. For instance, content aimed at an
economic buyer might include a return-on-investment
(ROI) calculator. To help the analytical buyer under-
stand the company’s novel approach to solving a prob-
lem, a case study might prove valuable.

Blogs, white papers, webinars, videos, recorded in-
terviews, product demos, and presentations—provid-
ing anything from expert analysis and advice, to product
announcements, should be offered to targeted custom-
ers through media such as a company Web site, Twitter
stream, or LinkedIn discussion group. Logicalis, an inte-
grated information and communication technologies pro-
vider, tries to gain attention as a thought leader by helping
buyers understand cutting-edge IT topics by posting infor-
mative content on its own Web site and having a presence
on Facebook and LinkedIn. Citrix Systems, a provider of
virtualization and cloud-computing technologies, is using
blogs to provide information to those searching for trends
in cloud computing and virtualization, while LinkWare, a
developer of electronic forms, posts relevant information
on community sites that prospective customers visit.19 The
more streamlined and personalized the information, the
better, as buyers increasingly face information overload.
Overwhelmingly, buyers are looking for information that
proves how the seller’s product will result in savings, en-
hance productivity, and positively affect profitability.

3-10d The Need for Adding Value
The increased interdependence between buyer and seller
organizations hinges on the salesperson’s capabilities to
serve as a problem solver in a dynamic and fast-changing
business environment. Buyers expect value, and more and
more sellers plan to provide it, as evidenced by research on
250 global B2B firms showing that 58 percent are focused
on “value marketing.”20 According to a study of 80,000
business customers, buyers expect several things from
salespeople.21 For one, they expect salespeople to person-
ally manage their businesss. In fact, many buying organi-
zations outsource to a supplier certain activities that the
buying organization previously performed. These activities
are necessary for the day-to-day functioning of the buy-
ing organization but are not within the organization’s core
or distinct possibilities. Moreover, buyers depend on the
salesperson to provide unique and value-added solutions
to their changing problems and needs. To shape such in-
novative solutions, salespeople must have broad-based and
comprehensive knowledge readily available and the abil-
ity to use that knowledge in creative ways. This includes
knowledge of one’s own products and capabilities, as well as
the products and capabilities of competitors. More impor-
tant, the salesperson must possess a thorough understand-
ing of product applications and the needs of the customer
to work with the buyer in generating innovative solutions.
Finally, buyers expect salespeople to be easily accessible in
order to respond to ongoing concerns and solve problems
that may arise after the sale. By fulfilling these expecta-
tions, salespeople can add
value to the customer buy-
ing experience and more
fully engage the buyer.

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outsourcing The process of
giving to a supplier certain activities
that were previously performed by
the buying organization.

77CHAPTER 3: Understanding Buyers

CHAPTER CASE
S E L L I N G F O R C U S TO M E R ! 3 6 0 , I N C . :
U N D E R S TA N D I N G YO U R P R O S P E C T

B A C K G R O U N D
Customer-360 Inc. is a relatively new entrant in the cloud
computing business management software industry, having
been in existence for a little over four years. It specializes in
providing Web-based customizable customer relationship
management software solutions that support an entire
company, from accounting to Web capabilities. Its software
is constructed around an individual customer record so that
accounting, sales, support, shipping, and billing all access
identical information for each interaction. The company
currently serves a variety of businesses across a number
of industries. Customer satisfaction is the company’s top
priority and it acts with integrity to fulfill this mission.
Its technology is easy to learn and easy to use, and its
information technology staff is extremely knowledgeable
and customer friendly.

The company currently employs more than 125 salespeople
who call directly on businesses and organizations
throughout the United States. Salespeople are trained to be
customer-oriented problem solvers who seek to establish
long-term relationships with customers. This approach has
allowed Customer-360 to experience steady sales gains since
its beginning and it hopes to continue its upward growth
trajectory.

C U R R E N T S I T U AT I O N
Laura, a recent college graduate who just completed the
sales rep training program at Customer-360, is excited about
her upcoming meeting with Lifestyle Furniture and Office
Supply of Kansas City, Missouri. Privately owned, Lifestyle
Furniture and Office Supply serves the furniture needs of
its customers through its two large metro retail locations.
Each location has a store manager, and several full and
part-time employees to assist with sales and operations.
The company’s owner serves as president and they also
employ a director of marketing and sales, who among other
things oversees its salesforce comprised of both inside and
outside salespeople, a director of operations, a director
of information technology (whose primary responsibility

is to run the Web side of their business), and a director of
accounting and finance. The outside sales force solicits
commercial accounts and in large part is responsible for
growing the non-retail business for Lifestyle Furniture and
Office Supply.

A good friend of Laura’s, Alex Goodneighbor, happens
to be neighbors with Chris Style, Lifestyle Furniture and
Office Supply’s director of marketing and sales. In a recent
conversation with Chris, Alex mentioned Laura and how she
might be able to help him at Lifestyle Furniture and Office
Supply. Chris suggested that Alex have Laura give him a call
and subsequently Laura was able to secure a meeting with
Chris Style the following Tuesday morning.

Laura was delighted that Alex provided her with this
prospect and was confident that this would help her get
off to a fast start at Customer-360. Laura has been friends
with Alex since grade school. This is not unusual for Laura,
who has many friends and close relationships, likely because
she shows such a sincere interest in others, particularly
in their hobbies, interests, family, and mutual friends. She
enjoys listening to the opinions of others and seems to
get along with most everyone, generally avoiding conflict
rather than submitting to others. Laura credits her ability to
communicate well orally (she loves to talk and socialize), get
along well with others, and build a consensus, in part, for her
landing a position in sales at Customer-360.

Prior to her meeting with Chris Style, Laura asked Alex if
she could meet her for lunch to find out a little more about
Chris and Lifestyle Furniture and Office Supply. When Laura
finally arrived for lunch, late as usual, she wasn’t able to learn
as much about Lifestyle Furniture and Office Supply as she
would have liked, but she did learn the following about
Chris. Alex indicated that Chris was a good neighbor, but
he certainly wasn’t a friendly, outgoing relationship builder
such as Laura. In fact, he tended to be rather cool, tough, and
competitive when it came to relationships. He liked to be in
charge of people and situations and was not willing to let
others stand in the way of achieving his goals. Chris manages
his time well, is impatient with others, and tends to be very
businesslike. He likes extreme sports and appears to have a
penchant for taking risks. According to Alex, at annual home
owners’ association meetings, Chris tends to be the most
outspoken individual in attendance. While opinionated, Chris

rarely takes advice from others and prefers to make his own
decisions.

Although Laura believed she still had additional work to do
before meeting with Chris, she was at least glad to know a
little bit about the person she would be meeting. The more
she knew about her buyer, she surmised, the better she
could tailor her offering to meet his needs.

Q U E S T I O N S
1. Based on your understanding of both Laura and Chris,

how would you characterize the communication style
of each?

2. What, if any, preparations and style flexing should
Laura make to better relate to and communicate with
Chris Style?

3. Who all might be involved in the buying decision for
Lifestyle Furniture and Office Supply with regard to
Laura’s offering? For each, explain why and how.

4. Explain at least two needs that might be met by Lifestyle
Furniture and Office Supply by purchasing the software
offered by Customer-360.

R O L E P L AY
Situation: Read the case.

Characters: Laura, sales rep for Customer-360, Inc.; Chris
Style, director of marketing and sales, Lifestyle
Furniture and Office Supply.

Scene:
Location—Chris Style’s office at Lifestyle Furniture and
Office Supply.

Action—Laura meets with Chris to find out more about
Lifestyle Furniture and Office Supply’s operations and
needs to see if she can help them. She is also trying to
determine who else might be involved in the buying
decision and what influence each might have. She has no
plans to make a sale on this call.

79CHAPTER 3: Understanding Buyers

CHAPTER ROLE PLAY3
AT B AT, I N C .

B A C K G R O U N D
You are a sales representative for At Bat, Inc., a manufacturer
and marketer of baseball and softball bats, located in South
Carolina. You are responsible for calling on a variety of
accounts throughout the midwestern United States, many
of which are independently owned sporting goods retailers,
often in small cities and towns.

C U R R E N T S I T U AT I O N
You recently scheduled a meeting with Casey Atthebat,
owner of Benton Sporting Goods, an independent retail
sporting goods store located in a small rural community in
southeast Missouri. Casey contacted you after finding your
company on the Internet. She is in the process of evaluating
several suppliers for her soon-to-be-opened store.

Before meeting with Casey, you have decided to prepare a
series of questions to ask Casey to identify her situational,
functional, social, psychological, and knowledge needs. When
meeting with Casey you want to ask her several questions so
that you can fully understand her needs and then demonstrate
to her how you and your company can best satisfy those needs.

R O L E P L AY
Location: Casey Atthebat’s office at Benton Sporting Goods

Characters: You, At Bat, Inc. sales representative; Casey
Atthebat, owner of Benton Sporting Goods

Action: Using the questions you developed, have a
conversation with Casey to assess her situational,
functional, social, psychological, and knowledge
needs (ask at least one to two questions to assess
each need).

4 Communication Skills

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LEARNING OBJECTIVES
After completing this chapter, you should be able to:

4-1 Explain the importance of collaborative, two-way
communication in trust-based selling.

4-2 Explain the primary types of questions and how they are
applied in selling.

4-3 Illustrate the diverse roles and uses of strategic
questioning in trust-based selling.

4-4 Identify and describe the five steps of the ADAPT questioning
sequence for effective fact-finding and needs discovery.

4-5 Discuss the four sequential steps for effective active
listening.

4-6 Discuss the superiority of pictures over
words for explaining concepts and enhancing
comprehension.

4-7 Describe and interpret the different forms of nonverbal
communication.

It is all too common for salespeople to get so excited about meeting a buyer
and making a sales presentation that they don’t allow the prospect to get
involved. For a positive sales outcome, it’s imperative to first build the
feelings of mutual respect and trust that comes from rapport between the
prospect and salesperson—to demonstrate that both parties are working
together to solve a problem. Karen Tang, head of sales, customer success,
and support for Prezi—the highly successful, cloud-based presentation
software company—emphasizes the importance of interactive, two-way
communication for success in the trust-based selling process.1

After finishing this chapter, go to PAGE 104 for STUDY TOOLS.

Tang explains that prior to ever calling on a prospect,
salespeople should invest time in developing a sales
script to guide and help to keep the conversation on
track and on time. A top-notch sales script has to be cus-
tomized for the individual prospect and selling situation
in order to engage the prospect rather than annoying
them. A good script will both develop and guide the sales
representative through a natural, two-way conversation
and help them discover the true nature of the prospect’s
pain.

Do your research and gather background informa-
tion on the prospect and their industry. Has the com-
pany been in the news? What are the pain points they
are experiencing? What is the state of their business
sector? Study up on the jargon and acronyms relevant
to their industry and incorporate those into your sales
script. Recent research indicates that only 13 percent of
buyers believe a salesperson understands their situation
and needs. Customizing the sales script by incorporat-
ing their jargon and industry-specific language not only

This chapter addresses the need to better under-
stand and master the art of collaborative, two-way com-
munication. First, we will examine the basic nature of
trust-based sales communication. Building on this
preliminary understanding, the authors have divided the
content on trust-based sales communication into its com-
ponent and subcomponent parts to facilitate study, applica-
tion, and mastery. The verbal dimension of communication
is examined first with an emphasis on three communication
subcomponents: (1) developing effective questioning meth-
ods for use in uncovering and diagnosing buyers’ needs and
expectations, (2) using active listening skills to facilitate the
interchange of ideas and information, and (3)!maximizing
the responsive dissemination of information to buyers in
a way that fully explains
and brings to life the
benefits of proposed
solutions. Finally, the
nonverbal dimension of
interpersonal communi-
cation is examined with
an emphasis on its appli-
cation and meaningful
interpretation.

makes the prospect more comfortable, but also demon-
strates you are knowledgeable about their industry and
generates credibility in the eyes of the prospect.

Above all, Tang emphasizes the importance of having
a two-way dialogue focused on the prospect rather than
endlessly pushing your product. “Your audience is busy, so
they want to know why you and your product are relevant
to their lives in the first few minutes of your call, or you
will lose their attention. Instead of giving a monologue or
lecture, ask authentic questions and start a dialogue to find
out what your prospects care about most while you you’re
giving the talk, and then adjust your content on the fly.”

The need to build mutual respect and trust through
interactive, two-way communication, as discussed by
Karen Tang in this chapter’s introduction, emphasizes
the critical and high-magnitude impact effective inter-
personal communication has on selling success in today’s
business landscape. On the one hand, selling is basically
interpersonal communication. The skill and effective-
ness of a salesperson’s interpersonal communication
are fundamental determinants of selling performance.
Nevertheless, effective communication continues to be
one of the least understood and understudied skills for
successful selling.

trust-based sales
communication Talking with
rather than at the customer. A
collaborative and two-way form of
communication that allows buyers
and sellers to develop a better
understanding of the need situation
and work together to co-create
the best response for resolving
the!customer’s needs.

83CHAPTER 4: Communication Skills

Michael Medwed graduated from Illinois State Univer-
sity in 2015 and is a Technical Sales Representative for
Saint-Gobain North America, a world leader in high-
quality industrial and construction products and solu-
tions. Based in Nashville, Michael has primary respon-
sibility for sales and market development of industrial
abrasives solutions in the industrial manufacturing
sector. Michael discusses how his learning experiences
in his sales classes have helped him earn customer trust
and build important relationships through presenting
unique solutions and providing added value to the
customer.

“Production engineers and quality managers—the
folks who influence and make the purchase decisions—
are very cautious about making changes to anything
within their manufacturing processes. After all, the cur-
rent process is working, and even the slightest change
carries the probability for somehow altering the final
product. Now add this to the situation—while indus-
trial abrasives are a critical element in many manufac-
turing processes, the abrasive products themselves
only account for around 2 to 3 percent of the total
manufacturing cost. Putting all this together, I learned
very quickly that industrial abrasives have a long sell-
ing cycle, require a high level of trust and relationship
development, and have to provide a bigger impact
and value than what could be possible solely within the
2–3 percent of total cost influenced by abrasives’ cost
alone. This combination definitely makes for a complex,
total-solutions-selling situation. The reality that I am a
24-year-old, new salesperson entering into a sales dia-
logue with engineers and production managers having
over 30 years of experience makes sales calls even more
challenging.”

“My professional sales classes provided me with
the ability and self-confidence to be successful in this
selling environment. Actively listening to the buyer and

engaging them in the sales dialogue in a way that fo-
cuses on the power of ideas and opportunities—rather
than just selling my product—has been very produc-
tive in closing that experience gap and building my
credibility as a trusted resource for the buyer. Recog-
nizing the power of selling insights and offering new
perspectives, Saint-Gobain developed and maintains a
tremendous database of customer experiences incor-
porating insightful details related to product use across
all types of applications and situations. I regularly pull
information from the database that allows the buyer to
learn from a real customer who had a similar manufac-
turing challenge, how we assisted them in a solution,
and documenting the positive results. The success sto-
ries I build help the buyer walk in the shoes of another
customer who has already solved the problem—to see
what is possible and to believe in the solution. Selling
through success stories allows me to focus on ideas
and opportunities important for the buyer and posi-
tions me as a trusted advisor rather than a traditional
salesperson. A position that places my company and
products in first place compared to the competition.”

From the Classroom
to the Field
Using Buyer Use-Experiences and Success Stories for Effective Insight Selling

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4-1 SALES COMMUNICATION AS
A COLLABORATIVE PROCESS

Neither people nor organizations buy products. Rather,
they seek out the satisfaction and benefits that certain
product features provide. Although traditional selling
has been described as “talking at the customer,” trust-
based selling has been referred to as “talking with the
customer.” Trust-based sales communication is a two-
way and naturally collaborative interaction that allows
buyers and sellers alike to develop a better understand-
ing of the need situation and work together to gener-
ate the best response for solving the customer’s needs.
Although trust-based selling has become the preemi-
nent model for contemporary selling, Michael Medwed’s
experiences discussed in “From the Classroom
to the Field” illustrates that
effectively engaging the buy-
er in collaborative conversa-
tions takes some thought and
planning.

Trust-based sales com-
munication is the sharing
of meaning between buying
and selling individuals that
results from the interactive
process of exchanging information and ideas. It is im-
portant to note that the purpose of sales communica-
tion is not agreement but rather the maximization of
common understanding among participants. With this
emphasis on establishing understanding, communica-
tion is fundamental throughout each stage of the sell-
ing process. Effective communication skills are needed
to identify buying needs and to demonstrate to buyers
how a salesperson’s proposed solution can satisfy those
needs better than competitors. The critical capabilities
for effective selling include questioning, listening, giv-
ing information, nonverbal communication, and written
communication skills. Although each of these skills is
pervasive in everyday life, they are literally the heart
and soul of the interpersonal exchange that character-
izes trust-based selling.

4-1a Verbal Communication:
Questioning
There are two ways to dominate or control a selling
conversation. A salesperson can talk all the time, or the
salesperson can maintain a more subtle level of control

by asking well-thought-out questions that guide the dis-
cussion and engage the customer. Salespeople should
think like doctors—they ask relevant questions to me-
thodically diagnose the situation and problems before
presenting solutions. To present a cure to a patient
before understanding the problem would be malprac-
tice. In a similar fashion, salespeople must be masters
at thinking through what they need to know, planning
the questions they need to ask, and then asking those
diagnostic questions in a sequential manner that builds
understanding of the situation for themselves as well
as for the customer. They should know exactly what in-
formation they require and which type of questions are
best suited for eliciting that information from a pro-
spective buyer.

Purposeful, carefully crafted questions can encour-
age thoughtful responses from a buyer and provide rich-

ly detailed information about
the buyer’s current situation,
needs, and expectations. This
additional detail and under-
standing is often as meaning-
ful for the buyer as it is for the
salesperson. That is, proper
questioning can facilitate both
the buyer’s and seller’s under-
standing of a problem and its

possible solutions. For example, questions can encour-
age meaningful feedback regarding the buyer’s attitude
and the logical progression through the purchase deci-
sion process. Questioning also shows interest in the buy-
er and his or her needs and actively involves the buyer in
the selling process. Questions can also be used tactically
to redirect, regain, or hold the buyer’s attention should
it begin to wander during the conversation. In a similar
fashion, questions can provide a convenient and subtle
transition to a different topic of discussion and provide a
logical guide promoting sequential thought and decision
making.

Questions are typed by the results they are designed
to accomplish. Does the salesperson wish to receive a
free flow of thoughts and ideas or a simple yes/no con-
firmation? Is the salesperson seeking a general descrip-
tion of the overall situation or specific details regarding
emergent needs or problematic experiences with cur-
rent suppliers? To be effective, a salesperson must un-
derstand which type of question will best accomplish his
or her desired outcome. In this manner, questions can
be typed into two basic categories: (1)!amount of infor-
mation and level of specificity desired and (2)! strategic
purpose or intent.

Successful salespeople are experts
at considering what information

they need to know and
purposefully planning and asking
the questions they need to ask.

85CHAPTER 4: Communication Skills

Technology in Selling
Developing Account and Territory Action-Plans
with Salesforce.com©

Morgan Rabas, a 2016 graduate of Illinois State
University, is a Territory Manager for Michelin North
America. As a Richmond, VA, based manufacturer’s
representative for Michelin’s Truck Tire Division,
Morgan is responsible for territory development
and support of dealer and end-user accounts across
the semi-truck, construction, and heavy equipment
tire categories. During a recent conversation,
Morgan explained how she uses technology to more
effectively manage individual accounts and target
her selling activities in a manner that maximizes both
sales performance and account relationships. Her
use of technology is clearly working, as Morgan has
exceeded her sales numbers for each of the previous
three quarters and is a candidate being considered for
Rookie of the Year.

“With its emphasis on trust-based selling, the
Illinois State selling program did a terrific job preparing
me to be successful in Michelin’s solutions-selling
model and customer-oriented selling culture. Those
diverse learning experiences provided me with the
skills, abilities, and—most importantly—the self-
confidence to work with and further develop the
accounts in my territory. With a territory comprised of
150 plus accounts—including 75 major key accounts—
across multiple business sectors, my challenge was
keeping up with and effectively using all the industry
and account-level data Michelin provides to its sales
representatives.”

“After considerable evaluation of leading CRM
systems, Michelin selected Salesforce.com to become
its enterprise-wide data platform for acquiring and
organizing customer data in a manner that enables
sales representatives to provide enhanced levels of

support to each individual account. Well along in the
three-year roll out of the system, I have immediate
access to a complete catalogue of communication
from and with individual accounts; automatic
reminders to follow up on specific activities and
engagements; and even coordinate sales team actions
with Michelin representatives in other sales districts
and territories where my accounts have overlapping
operations. Nothing falls through the cracks! The
system also provides call reports along with on-
demand information about account purchasing
patterns and trends. I recently used the purchase
information to develop second quarter targeted
selling opportunities for individual accounts. This
same real-time information was then used to track
progress toward achieving those opportunities
through the period and to better inform my sales call
plans and account communication. In a nutshell, the
data inform me who is buying and who is not—it tells
me where I need to be and prioritizes my selling time
by individual account.”

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4-2 TYPES OF QUESTIONS
CLASSIFIED BY AMOUNT
AND SPECIFICITY OF
INFORMATION DESIRED

4-2a Open-End Questions
Open-end questions, also called
nondirective questions, are designed
to let the customer respond freely.
That is, the customer is not limited
to one- or two-word answers, but is
encouraged to disclose personal and/
or business information. Open-end
questions encourage buyers’ thought
processes and deliver richer and more
expansive information than closed-end
questions. Consequently, these questions
are typically used to probe for descriptive
information that allows the salesperson to
better understand the specific needs and ex-
pectations of the customer. The secret to using open-end
questions successfully lies in the first word used to form
the question. Words often used to begin open-end ques-
tions include what, how, where, when, tell, describe, and
why. Examples of open-end questions include:

! What happens when!.!.!.!?
! How do you feel!.!.!.!?
! Describe the.!.!.!.!

4-2b Closed-End Questions
Closed-end questions are designed to limit the custom-
ers’ response to one or two words. This type of question is
typically used to confirm or clarify information gleaned from
previous responses to open-end questions. Although the
most common form is the yes/no question, closed-end ques-
tions come in many forms—provided the response is limited
to one or two words. Common closed-end questions include:

! Do you!.!.!.!?
! Are you!.!.!.!?
! How many!.!.!.!?
! How often!.!.!.!?

4-2c Dichotomous/Multiple-Choice
Questions
Dichotomous questions and multiple-choice ques-
tions are directive forms of questioning. This type of

question asks a customer to choose from two or more op-
tions and is used in selling to discover customer prefer-
ences and move the purchase decision process forward.
An example of this form of question would be: “Which
do you prefer, the _____ or the _____?”

TYPES OF QUESTIONS CLASSIFIED
BY STRATEGIC PURPOSE
4-2d Probing Questions
Probing questions are designed to penetrate below
generalized or superficial information to elicit more
articulate and precise details for use in needs discov-

ery and solution identification. Rather than in-
terrogating a buyer, probing questions are best

used in a conversational style: (1) request
clarification (“Can you share with me an ex-

ample of that?” “How long has this been
a problem?”), (2)! encourage elaboration
(“How are you dealing with that situation

now?” “What is your experience with ______?”), and
(3) verify information and responses (“That is interesting;
could you tell me more?” “So, if I understand correctly,
_____. Is that right?”).

4-2e Evaluative
Questions
Evaluative questions
use open- and closed-
end questions to con-
firm and uncover at-
titudes, opinions, and
preferences the pros-
pect holds. These ques-
tions are designed to
go beyond generalized
fact finding and uncover
prospects’ perceptions
and feelings regarding
existing and desired
circumstances and po-
tential solutions. Exem-
plary evaluative ques-
tions include “How do
you feel about! _____?”
“Do you see the merits
of _____?” and “What
do you think _____?”

open-end questions
Questions designed to let the
customer respond freely; the customer
is not limited to one-!or two-word
answers but is!encouraged to disclose
personal!and/or business information.

closed-end questions
Questions designed to limit the
customer’s responses to one or
two!words.

dichotomous questions
A directive form of questioning; these
questions ask the customer to choose
from two or more options.

probing questions Questions
designed to penetrate below
generalized or superficial information
to elicit more articulate and precise
details for use in needs discovery
and solution identification.

evaluative questions
Questions that use the open and
closed-end question formats to gain
confirmation and to uncover attitudes,
opinions, and preferences the
prospect holds.

dizain/Shutterstock.com

87CHAPTER 4: Communication Skills

4-2g Reactive Questions
Reactive questions are questions that refer to or di-
rectly result from information the other party previously
provided. Reactive questions are used to elicit additional
information, explore for further detail, and keep the flow
of information going. Illustrative reactive questions are
“You mentioned that ____. Can you give me an example
of what you mean?” and “That is interesting. Can you tell
me how it happened?”

These different groupings of question types are not
mutually exclusive. As depicted in the guidelines for
combining question types in Exhibit 4.1, effective ques-
tions integrate elements from different question types.
For example, “How do you feel about the current trend
of sales in the industry?” is open-end (classified by for-
mat) and evaluative (classified by purpose) in nature.

Regardless of the types of questions one might com-
bine in a sales dialogue, the natural tendency is to over-
use closed-end questions. Monitor the types of questions
you ask over the next several hours and see if you share

4-2f Tactical Questions
Tactical questions are used to shift or redirect the topic
of discussion when the discussion gets off course or when
a line of questioning proves to be of little interest or val-
ue. For example, the salesperson might be exploring the
chances of plant expansion only to find that the prospect
cannot provide that type of proprietary information at this
early stage of the!buyer–seller relationship. To avoid either
embarrassing the prospect or himself/herself by proceed-
ing on a forbidden or nonproductive line of questioning,

the!seller uses a tactical
question designed to
change topics. An ex-
ample of such a tactical
question might be! ex-
pressed as “Earlier you
mentioned that! ____.
Could you tell me more
about how that might
affect!_____?”

tactical questions Questions
used to shift or redirect the topic of
discussion when the discussion gets off
course or when a line of questioning
proves to be of little interest or value.

reactive questions Questions
that refer to or directly result from
information the other party previously
provided.

Exhibit 4.1

Guidelines for Combining Types of Questions
Strategic Objective or Purpose of Questioning

Explore and Dig
for Details

Gain Confirmation and
Discover Attitudes/Opin-
ions

Change Topics or
Re-direct Buyer’s
Attention

Follow-up Previously
Elicited Statements

Open-end questions
designed to be
Probing in nature

Open-end questions
designed to be
Evaluative in nature

Open-end questions
designed to be Tactical
in nature

Open-end questions
designed to be Reactive
in!nature

Closed-end questions
designed to be
Probing in nature

Closed-end questions
designed to be
Evaluative in nature

Closed-end questions
designed to be Tactical
in nature

Closed-end questions
designed to be Reactive
in!nature

Dichotomous or
Multiple-choice
questions designed
to be Probing in
nature

Dichotomous or
Multiple-choice
questions designed to
be Evaluative in nature

Dichotomous or
Multiple-choice
questions designed to
be Tactical in nature

Dichotomous or
Multiple-choice
questions designed to
be Reactive in nature

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the tendency to use more closed-end than open-end
questions. It is not uncommon to find salespeople using
an average of ten closed-end questions for every open-
end question used in a sales conversation. This overuse
of closed-end questions is dangerous in selling. The dis-
covery and exploration of customer needs are fundamen-
tal to trust-based selling, and discovery and exploration
are best done with open-end questions. As previously
discussed, closed-end questions certainly have their
place in selling, but they are best used for clarification
and confirmation, not discovery and exploration. An ad-
ditional issue in overusing closed-end questions is that
when they are used in a sequence, the resulting commu-
nication takes on the demeanor of interrogation rather
than conversation.

4-3 STRATEGIC APPLICATION
OF QUESTIONING IN TRUST!
BASED SELLING

Effective questioning skills are indispensable in sell-
ing and are used to address critical issues throughout all
stages of the selling process. In practice, salespeople com-
bine the different types of questions discussed earlier to
accomplish multiple and closely related sales objectives:

! Generate buyer involvement. Rather than the salesperson
dominating the conversation and interaction, purposeful
and planned questions are used to encourage prospective
buyers to participate!actively in a two-way collaborative
discussion.

! Provoke thinking. Innovative and effective solutions
require cognitive efforts and contributions from each
participant. Strategic questions stimulate buyers and
salespeople to think thoroughly and pragmatically
about and consider all aspects of a given situation.

! Gather information. Good questions result from ad-
vance planning and should be directed toward gather-
ing the information required to fill in the gap between
“What do we need to know?” and “What do we already
know?”

! Clarification and emphasis. Rather than assuming that
the salesperson understands what a buyer has said,
questions can be used to clarify meaning further and to
emphasize the important points within a buyer–
seller exchange further.

! Show interest. In response to statements from buyers,
salespeople ask related questions and paraphrase what
the buyer has said to demonstrate!their interest in and
understanding of what the buyer is saying.

! Gain confirmation. The use of simple and direct ques-
tions allow salespeople to check back with the pro-
spective buyer to confirm the buyer’s understanding
or agreement and gain his or her commitment to
move forward.

! Advance the sale. Effective questions are applied in a
fashion that guides and moves the selling process
forward in a logical progression from initiation through
needs development and through needs resolution and
follow-up.

With the aim of simultaneously targeting and achiev-
ing each of these objectives, several systems have been
developed to guide salespeople in properly developing
and using effective questions. Two of the more promi-
nent questioning systems are SPIN and ADAPT. Both
of these systems use a logical sequencing—a sort of fun-
neling effect—that begins with broad-based, nonthreat-
ening, general questions. Questioning progressively
proceeds through more narrowly focused questions
designed to clarify the buyer’s needs and to propel the
selling process logically toward the presentation and
demonstration of solution features and benefits.

4-3a SPIN Questioning System
The SPIN system sequences four types of questions
designed to uncover a buyer’s current situation and in-
herent problems, enhance the buyer’s understanding of
the consequences and implications of those problems,
and lead to the proposed solution.2 SPIN is actually an
acronym for the four types of questions making up the
multiple question sequence: situation questions, prob-
lem questions, implication questions, and need-payoff
questions.

! Situation questions. This type of question solicits data
and facts in the form of general background informa-
tion and descrip-
tions of the buyer’s
existing situation.
Situation questions
are used early in the
sales call and provide
salespeople with leads
to develop the buyer’s
needs and expectations
fully. Situation questions
might include “Who are
your current suppliers?”
“Do you typically
purchase or lease?” and
“Who is involved in pur-
chasing decisions?”

SPIN A questioning system!that
sequences four types of questions
designed to uncover a buyer’s
current situation and inherent
problems, enhance the buyer’s
understanding of the!consequences
and implications of those problems,
and lead to the proposed solution.

situation questions
One of the four types of questions
in the SPIN questioning system
used!early in the sales call that
provides salespeople with leads
to develop the buyer’s needs
and!expectations fully.

89CHAPTER 4: Communication Skills

Situation questions are essential, but they should be used
in moderation as too many general fact-finding questions
can bore the buyer. Further, their interrogating nature can
result in irritated buyers.

! Problem questions. Problem questions follow the
more general situation questions to probe further for
specific difficulties, developing problems, and areas of
dissatisfaction that might be positively addressed by
the salesperson’s proposed sales offering. Some
examples of problem questions include “How critical is
this component for your production?” “What kinds of
problems have you encountered with your current
suppliers?” and “What types of reliability problems do
you experience with your current system?” Problem
questions actively involve the buyer and can assist

him or her in better
understanding his or
her own problems and
needs. Nevertheless,
inexperienced and un-
successful salespeople
generally do not ask
enough problem
questions.

success in selling, even experienced salespeople rarely use
them effectively.

! Need-payoff questions. Based on the implications of a
problem, salespeople use need-payoff questions
to propose a solution and develop commitment from the
buyer. These questions refocus the buyer’s attention to
solutions rather than problems and get the buyer to think
about the positive benefits derived from solving the prob-
lems. Examples of need-payoff questions are “Would more
frequent deliveries allow you to increase productivity?” “If
we could provide you with increased reliability, would you
be interested?” “If we could improve the quality of your
purchased components, how would that help you?” and
“Would you be interested in increasing productivity by
15 percent?” Top salespeople effectively incorporate a
higher number of need-payoff questions into sales calls
than do less successful
salespeople.

4-4 ADAPT QUESTIONING
SYSTEM

As Figure 4.1 illustrates, the ADAPT questioning system
uses a logic-based funneling sequence of questions, be-
ginning with broad and generalized inquiries designed
to identify and assess the buyer’s situation. Based on in-
formation gained in this first phase, further questions are
generated to probe and discover more details regarding
the needs and expectations of the buyer. In turn, the re-
sulting information is incorporated in further collabora-
tive discussion in a way that activates the buyer’s motiva-
tion to implement a solution and further establishes the
buyer’s perceived value of a possible solution. The last
phase of ADAPT questioning transitions to the buyer’s
commitment to learn about the proposed solution and
grants the salesperson permission to move forward into
the presentation and demonstration of the sales offer-
ing. ADAPT is an acronym for the five stages of strategic
questioning and represents what the salesperson should
be doing at each stage: assessment questions, discovery
questions, activation questions, projection questions,
and transition questions.3

! Assessment questions. This initial phase of questioning
is designed to be nonthreatening and to spark con-
versation that elicits factual information about the
customer’s current situation that can provide a basis
for further exploration and probing. As illustrated in
Exhibit!4.2, assessment questions do not seek
conclusions—rather, at a macro or 40,000-foot level
of focus, these questions should

problem questions
One of the four types of questions
in the SPIN questioning system that
follows the more general situation
questions to further probe for specific
difficulties, developing problems,
and areas of dissatisfaction that
might be positively addressed by the
salesperson’s proposed sales offering.

implication questions
One of the four types of questions
in the SPIN questioning system that
follows and relates to the information
flowing from problem questions; they
are used to assist the buyer in thinking
about the potential consequences of
the problem and understanding the
urgency of resolving the problem in!a
way that motivates him or her to!seek
a solution.

need-payoff questions One
of the four types of questions in the
SPIN questioning system that is based
on the implications of a problem; they
are used to propose a solution and
develop commitment from the buyer.

ADAPT A questioning system that
uses a logic-based funneling sequence
of questions, beginning with broad
and generalized inquiries designed
to identify and assess the buyer’s
situation.

assessment questions
One of the five stages of questions in
the ADAPT questioning system that
do not seek conclusions but rather
should address the buyer’s!company
and operations, goals and objectives,
market trends and customers, current
suppliers, and even the buyer as an
individual.

! Implication questions.
Implication questions
follow and relate to the
information flowing
from problem questions.
Their purpose is to assist
the buyer in thinking
about the potential
consequences of the
problem and understand
the urgency of resolving
the problem in a way
that motivates him or
her to seek a solution.
Typical implication
questions might include
“How does this affect
profitability?” “What
impact does the slow
response of your current
supplier have on the
productivity of your
operation?” “How would a
faster piece of equipment
improve productivity
and profits?” and “What
happens when the
supplier is late with a
shipment?” Although
implication questions
are closely linked to

FUNNELING SEQUENCE OF ADAPT TECHNIQUE FOR NEEDS DISCOVERYFIG. 4.1

Assessment Questions
Broad-based and general facts describing situation
Nonthreatening as no interpretation is requested
Open-end questions for maximum information

Discovery Questions
Questions probing information gained in assessment
Seeking to uncover problems or dissatisfaction that
could lead to suggested buyer needs
Open-end questions for maximum information

Activation Questions
Show the negative impact of a problem
discovered in the discovery sequence
Designed to activate buyer’s interest in and
desire to solve the problem
Projection Questions

Projects what life would be like
without the problems
Buyer establishes the value of
funding and implementing a solution

Transition Questions
Confirms buyer’s interest in
solving problem
Transitions to presentation of
solution

The ADAPT questioning technique logically sequences questions from broad and general inquiries through increasingly
detailed questions for e!ective needs discovery.

Exhibit 4.2

Assessment Questions
These questions are designed to elicit factual information about the customer’s current situation. These questions
do not seek conclusions; rather, they seek information that describes the customer and his or her business
environment. The!information sought should augment or con”rm precall research.

Examples:
1. Question—“What types of operating arrangements do you have with your suppliers?”

Answer—We use a Just-in-Time (JIT) system with our main suppliers.

2. Question—“Who is involved in the purchase decision-making process?”
Answer—I make the decisions regarding supplies.!.!.!.

Assessment questions are generally open end; however, closed-end questions are used when seeking
con”rmation or basic descriptive information. For example, “So, you currently work with 10 di#erent suppliers?”
or!“How many years have you been in business?” Assessment questions are necessary for drawing out
information!early in the sales cycle.

91CHAPTER 4: Communication Skills

address the buyer’s company and operation, goals
and objectives, market trends and customers, current
suppliers, and even the buyer as an individual. The
information sought should augment or confirm
precall research. Examples would include “What is the
current level of your production?” “How long has the
current equipment been in place?” “How many suppli-
ers are currently being used?” “What are the growth
objectives of the company?” and “What individuals
have input into purchase decisions?”

! Discovery questions. As portrayed in Exhibit!4.3, these
questions follow up on the responses gained from

the preceding as-
sessment questions.
At a more micro and
ground-level focus,
discovery q uestions
should drill down and
probe for further details
needed to fully develop,
clarify, and understand
the nature of the buyer’s
problems. Facts as well
as the buyer’s interpreta-
tions, perceptions, feel-
ings, and opinions
are sought in regard
to the buyer’s needs,
wants, dissatisfac-
tions, and expectations

relevant to product, delivery requirements, budget
and financing issues, and desired service levels. The
goal is to discover needs and dissatisfactions that
the salesperson’s sales offering can resolve. Examples
of discovery questions might include “How often do
these equipment failures occur?” “How well are your
current suppliers performing?” “What disadvantages
do you see in the current process?” “How satisfied are
you with the quality of components you are currently
purchasing?” and “How difficult are these for your
operators to!use?”

! Activation questions. The implied or suggested needs
gained from discovery questions are not usually
sufficient to gain the sale. Often, a buyer will believe
that a particular problem does not cause any signifi-
cant negative consequences. Hence, the motivation
to solve the problem will carry a low priority. Success-
ful salespeople help the customer realistically evaluate
the full impact of the implied need through the use of
a ctivation questions. As detailed in Exhibit!4.4,
the objective is to “activate” the customer’s interest
in solving discovered problems by helping
him or her gain insight into the true ramifications
of the problem and to realize that what may initially
seem to be of little consequence is, in fact, of
significant consequence. Examples include “What
effects do these equipment breakdowns have on
your business operations?” “ To what extent are these
increases in overtime expenses affecting
profitability?” “How will the supplier’s inability

Exhibit 4.3

Discovery Questions
Discovery questions are used to uncover problems or dissatisfactions the customer is experiencing that the
salesperson’s product or company may be able to solve. Basically, these questions are used to “distill” or “boil
down” the information gained from the preceding assessment questions and from precall research into suggested
needs.
Examples:
1. Question—I understand you prefer a JIT relationship with your suppliers—how have they been

performing?
Answer—Pretty well!.!.!. an occasional late delivery!.!.!. but pretty well.

2. Question—How do you feel about your current supplier occasionally being late with deliveries?
Answer—It is a real problem!.!.!. for instance!.!.!.

The suggested needs gained from discovery questions are used as a foundation for the rest of the sales call. Yet, a
suggested need is usually not su$cient to close the sale. Often, a customer will believe that a particular problem
does not cause any signi”cant negative consequences. If this is the case, “nding a solution to the problem will
be a very low priority. The professional salesperson must then help the customer reevaluate the impact of the
suggested need by asking activation questions.

discovery questions
One of the five stages of questions
in the ADAPT questioning system
that follows up on the assessment
questions; they should drill down and
probe for further details needed to
develop, clarify, and understand the
nature of the buyer’s problems fully.

activation questions One of
the five stages of questions in the
ADAPT questioning system used to
“activate” the customer’s interest
in solving discovered problems by
helping him or her gain insight into
the true ramifications of the problem
and to realize that what might initially
seem to be of little consequence is, in
fact, of significant consequence.

Exhibit 4.4

Activation Questions
Activation questions are used to show the impact of a problem, uncovered through discovery questions, on the
customer’s entire operation. The objective is to “activate” the customer’s interest in solving the problem by helping
him or her to gain insight into the true rami”cations of the problem and realize that what might seem to be of
little consequence is, in fact, of signi”cant consequence.
Examples:
1. Question—What e!ect does your supplier’s late delivery have on your operation?

Answer—It slows production.!.!.!. Operating costs go up.
2. Question—If production drops o!, how are your operating costs a!ected, and how does that a!ect

your”customers?
Answer—Customer orders are delayed.!.!.!. Potential to lose customers.

Activation questions show the negative impact of a problem so that “nding a solution to that problem is
desirable. Now, the salesperson can help the customer to discover the positive impact of solving the problems
by!using projection questions.

to deliver on time affect your planned expansion?”
and “When components fail in the field, how does
that failure influence customer satisfaction
and repurchase?”

! Projection questions. As a natural extension of the
activation questions, projection questions
encourage and facilitate the buyer in “projecting”
what it would be like without the problems that!have
been previously “discovered” and “activated.” The use
of good projection questions accomplishes several
positive outcomes. First, the focus is switched from
problems and their associated consequences to the
upside—the benefits to be derived from solving
the!problems. What were initially perceived as costs
and expenses are now logically structured as benefits
to the buyer and his or her organization—the payoff
for taking action and investing in a solution. Second—
and equally important—the benefit payoff allows the
buyer to establish the realistic value of implementing
a solution. In this manner, the benefit payoff is per-
ceived as a positive value received and serves as
the foundation for demonstrating what the solution
is worth—what the buyer would be willing to pay.
As illustrated in Exhibit!4.5, projection questions en-
courage the buyer to think about how and why he or
she should go about resolving a problem. In essence,
projection questions assist the buyer in selling himself
or herself by establishing the worth of the proposed
solution. The customer, rather than the salesperson,
establishes the benefits of solving the problem. This
reinforces the importance of solving the problem

and reduces the number of objections that might
be raised. Examples of projection questions include
“If a supplier was never late with a delivery, what
effects would that have on your overall operation?”
“What would be the impact on profitability if you
did not have problems with limited plant capacity
and the resulting overtime expenses?” “How would
a system that your operators found easier to use
affect your business operations?” and “If component
failures were minimized, what impact would the
resulting improvement in customer satisfaction
have on financial performance?”

! Transition questions. Transition questions are
used to smooth the transition from needs discovery
into the presentation and demonstration of
the proposed solution’s
features and benefits.
As exemplified in
Exhibit!4.6, transition
questions are typically
closed-end and evalu-
ative in format. These
questions confirm the
buyer’s desire to seek
a solution and give
their consent to the
salesperson to move
forward with the
selling process.
Examples include
“So, having suppliers

projection questions One
of the five stages of questions in
the ADAPT questioning system
used to!encourage and facilitate the
buyer!in “projecting” what it would
be!like without the problems that
have been previously “discovered”
and!“activated.”

transition questions One of
the five stages of questions in the
ADAPT questioning system used to
smooth the transition from needs
discovery into the presentation and
demonstration of the proposed
solution’s features and benefits.

93CHAPTER 4: Communication Skills

Exhibit 4.5

Projection Questions
Projection questions help the customer “project” what life would be like without the problems or dissatisfactions
uncovered through activation questions. This helps the customer see value in “nding solutions to the problems
developed earlier in the sales call.
Examples:
1. Question—If a supplier was never late with a delivery, what e!ects would that have on your JIT

operating structure?
Answer—It would run smoother and at a lower cost.

2. Question—If a supplier helped you meet the expectations of your customers, what impact would
that have on your business?
Answer—Increased customer satisfaction would mean more business.

These questions are used to let the customer tell the salesperson the bene”ts of solving the problem. By doing
so,!the customer is reinforcing in his or her mind the importance of solving the problem and reducing the
number!of objections that might be raised.

Exhibit 4.6

Transition Questions
Transition questions are simple closed-end questions that con”rm the customer’s desire to solve the problem(s)
uncovered through the previous questions.
Examples:
1. Question—So, having a supplier who is never late with deliveries is important to you?

Answer—Yes, it is.
2. Question—If I can show you how our company ensures on-time delivery, would you be interested

in exploring how it could work for your organization?
Answer—Yes, if I am convinced your company can guarantee on-time delivery.

The primary function of these questions is to make the transition from need con”rmation into the sales
presentation. In addition, these questions can lead to a customer commitment, provided the salesperson
adequately presents how his or her company can solve the customer’s problems.

that are consistently on time is important to you—if
I could show you how our company ensures on-time
delivery, would you be interested?” “It seems that
increasing capacity is a key to reducing overtime
and increasing profitability—would you be
interested in a way to increase capacity by
20 percent through a simple addition to your
production process?” and!“Would you be
interested in a system that is easier for your
operators to use?”

4-4a Verbal Communication:
Listening
Listening is the other half of effective questioning. Asking
the customer for information is of little value if the sales-
person does not listen. Effective listening is rated among
the most critical skills for successful selling. Yet, most
of us share the common problem of being a lot better
at sending messages than receiving them. Considerable

research identifies effective listening as the number-one
weakness of salespeople.4

Poor listening skills have been identified as one of
the primary causes of salesperson failure.5 To get the in-
formation needed to best serve, identify, and respond to
needs, and nurture a collaborative buyer–seller relation-
ship, salespeople must be able to listen to and understand
what was said and what was meant. Nevertheless, situa-
tions similar to the one depicted in “An Ethical Dilemma”
are all too common. As Figure! 4.2 illustrates, effective
listening can be broken down into six primary facets:

1. Pay attention—Listen to understand, not to reply.
Resist the urge to interrupt and receive the full
message the buyer is communicating.

2. Monitor nonverbals—Make effective eye contact
and check to see if the buyer’s body language and
speech patterns match what is being said.

3. Paraphrase and repeat—Confirm your correct
understanding of what the buyer is saying by
paraphrasing and repeating what you have heard.

4. Make no assumptions—Ask questions to clarify the
meaning of what the buyer is communicating.

5. Encourage the buyer to talk—Encourage the flow
of!information by giving positive feedback and
help the buyer stay on track by asking purposeful,
related questions.

6. Visualize—Maximize your attention and compre-
hension by thinking about and visualizing what the
buyer is saying.

The practiced listening skills of high–performance
salespeople enable them to pick up, sort out, and in-
terpret a greater number of buyers’ verbal and nonver-
bal messages than lower-performing salespeople can.
In addition to gaining information and understanding
critical to the relational selling process, a salesperson’s
good listening behaviors provide the added benefits of
positively influencing the formation and continuation of
buyer–seller relationships. A salesperson’s effective use
and demonstration of good listening skills is positively
associated with the customer’s trust in the salesperson

SIX FACETS OF EFFECTIVE LISTENINGFIG. 4.2

The six facets of e!ective listening enable salespeople to better pick up, sort out, and interpret buyers’ verbal and
nonverbal messages.

Effective
Listening

Pay Attention
Listen to understand,
not to reply; resist the
urge to interrupt

Make No
Assumptions
Let buyers completely
finish their thoughts;
ask questions to clarify
when needed

Monitor Nonverbals
Make effective eye contact and
check to see if body language
matches what is said

Visualize
Think about and visualize
what the buyer is saying in
order to maximize your
attention and understanding

Encourage
Buyers to Talk
Give subtle and positive
feedback to encourage
flow of information; utilize
questions to keep buyer
on track and probe
for details

Paraphrase and
Repeat
Repeating buyers’ concerns
back to them confirms your
understanding

95CHAPTER 4: Communication Skills

Selling in Action
Funneling Sequence of Questions is Key for
Understanding Buyer’s Needs
Steve O’Connor, district sales representative for
Edward Don & Company—the leading distributor
of food-service equipment and supplies in the
United States, emphasizes the importance of using a
funneling sequence of open-ended questions to drill
down and fully understand a prospective customer’s
problems and needs before starting to pitch products.

“At Edward Don, our annual sales plan calls for
20% of our business during the year to come from
new accounts. Needless to say, strategic prospecting
is very important in reaching that objective. When
meeting with a prospect, it is also very important to use
a funneling sequence of questions to drill down and
develop an in-depth understanding of the prospect’s
situation, challenges, and needs, which we can address
with added-value solutions unique to Edward Don.
I consistently use the ADAPT Question Sequence I
learned to use as a student in Illinois State University’s
professional selling classes. Using this sequence of
questions allows me to engage the prospect in a

comfortable discussion of their business situation,
goals, strategic plans, and challenges. This collaborative
conversation leads to follow-up questions that begin to
identify unmet needs and problems and activate
the prospect’s interest and desire to resolve the
problems in a way that significantly benefits their
business. The natural outcome of the funneling
questions is the opportunity to present my solutions
to their problems
and unmet needs,
close the sale on
an initial order,
and establish a solid
foundation for a buyer–
seller relationship
where I am a trusted
advisor assisting them in
meeting challenges and
achieving their business
goals. It is just a
natural way
to work with
customers.”

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and the anticipation of having future interactions with
the salesperson.6 Clearly, effective listening is a critical
component in trust-based, relational selling, and suc-
cess requires continuous practice and improvement of
our listening skills.

USING DIFFERENT TYPES
OF”LISTENING

Communications re-
search identifies two
primary categories of
listening: social and

Effective listening requires
more than just hearing what is

being said.

social listening An informal
mode of listening that can be
associated with day-to-day
conversation and entertainment.

serious.7 Social listening is an informal mode of lis-
tening that can be associated with day-to-day conversa-
tion and entertainment. Social listening is characterized
by low levels of cognitive activity and concentration and
is typically used in conversation with a friend or a store
clerk or listening to music, a concert, a television pro-
gram, or even a play. The received messages are taken at

face value and do not require a high degree of concen-
tration or thinking to sort through, interpret, and under-
stand. However, serious listening is associated with
events or topics in which it is important to sort through,
interpret, understand, and respond to received messag-
es. The serious form of listening is often referred to as
active listening, as it requires high levels of concentra-
tion and cognition about the messages being received.
Concentration is required to break through the distrac-
tions and other interference to facilitate receiving and
remembering specific messages. Cognition is used to
sort through and select the meaningful relevant mes-
sages and interpret them for meaning, information, and
response.

4-5 ACTIVE LISTENING
In a selling context,
active listening is de-
fined as “the cognitive
process of actively sens-
ing, interpreting, evalu-
ating, and responding to
the verbal and nonver-
bal messages of current
or potential customers.”8
This definition is very
useful to those wishing

Erin Sutton is an account manager for a large, Dallas-
based manufacturer of printing equipment and sup-
plies. Erin feels that her 12 years of experience in the
printing industry provide her with a level of expertise
and knowledge much greater than most of the pro-
spective buyers with whom she works. This, combined
with her unbridled impatience, often results in Erin in-
terrupting buyers’ statements, finishing their thoughts
for them, and assuming she understands the buyers’
needs better than the buyer does. Rather than allow-
ing the buyer to fully describe what is going on and
the nature of the buying organization’s problems and
needs, Erin often seems to be telling the buyer what
his or her organization should be purchasing and
using—solutions that have a closer correspondence
with products Erin needs to sell rather than the
customer’s actual needs. Erin continues to sell prod-
ucts. However, her customer retention level is below
average and her sales revenues have peaked out.
Erin recognizes something is wrong and is seeking to
adopt a new and more effective selling process. She
has recently completed a trust-based selling program
and is contemplating changing the way she sells in
order to enhance her selling performance.

What should Erin do?
(A) Continue selling based on her experience and ob-

vious superior knowledge of what prospects need.
(B) Use the selling process she is comfortable with and

simply call on more prospects to increase her sales
performance.

(C) Learn to use effective questions to engage pros-
pects; actively listen to gain understanding of pros-
pect’s actual needs; and develop unique solutions
based on prospect’s specific needs.

An Ethical Dilemma

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serious listening A form of
listening that is associated with
events!or topics in which it is
important to sort through, interpret,
understand, and respond to
received messages.

active listening The
cognitive process of actively
sensing, interpreting, evaluating,
and responding to the verbal and
nonverbal messages of current or
potential customers.

97CHAPTER 4: Communication Skills

to master active listening skills. First, it underscores
the importance of receiving and interpreting both
verbal and nonverbal cues and messages to better de-
termine the full and correct meaning of the message.
Second, it incorporates a well-accepted model of lis-
tening. As illustrated in Figure 4.3,9 the SIER model
depicts active listening as a hierarchical, four-step
sequence of sensing, interpreting, evaluating, and re-
sponding.10 Effective active listening requires each of
these four hierarchical process activities to be carried
out successfully and in proper succession.

! Sensing. Listening is much more than simply hear-
ing. Nevertheless, the first activities in active listening
are sensing (i.e., hearing and seeing) and receiving
(i.e., paying attention to) the verbal and nonverbal
components of the message being sent. Sensing
does!not occur without practice and should not be
taken for granted. In fact, research indicates that most
of us listen at only 25 percent of our capacity. Think
about yourself. How often have you had to ask!some-
one to repeat what he or she said or perhaps!assumed
you knew what the sender was going to say before he
or she could say it? Increased concentration and atten-
tion can improve sensing effectiveness. Taking notes,

making eye contact
with!the sender, and not
interrupting can improve
sensing skills. Let!the
sender finish and provide
the!full!content of the

message. This not only improves!the concentration of
the receiver, but also encourages the sender to provide
more information and detail.

! Interpreting. After the message is received, it must be
correctly interpreted. Interpreting addresses the ques-
tion of “What meaning does the sender intend?” Both
content and context are important. That is, in addition
to the semantic meaning of the words and symbols,
we must consider the experiences, knowledge, and
attitudes of the sender to understand fully what was
meant. Hold back the temptation to evaluate the
message until the sender is through speaking. Note the
nonverbal and verbal cues along with possible consis-
tencies and inconsistencies between them. Incorporate
knowledge of the sender’s background and previous
relevant statements and positions into the message
interpretation.

! Evaluating. Active listening requires the receiver to
decide whether he or she agrees with the sender’s
message. The results from the interpretation stage
are evaluated to sort fact from opinion and emotion.
Too often, receivers complete this activity prior to
receiving the full message, and on hearing something
with which they disagree, the sender is effectively
tuned out. As a result, communication is stifled.
Evaluating can be improved through better concentra-
tion and thoughtful consideration of the full message.
Summarizing the key points as if they were going
to be reported to others can further enhance
evaluation skills. Searching for areas of interest

SIER HIERARCHY OF ACTIVE LISTENINGFIG. 4.3

Active listening is a cognitive process of actively sensing, interpreting, evaluating, and responding to verbal and nonverbal
messages from buyers and prospects.

Re-
sponding

Evaluating

Interpreting

Sensing

SIER A model that depicts active
listening as a hierarchical, four-step
sequence of sensing, interpreting,
evaluating, and responding.

rather than prejudging the message can also facilitate
the evaluation process.

! Responding. Responding is both an expectation and
a requirement for active listening to be effective.!Col-
laborative, two-way communication requires that the
listener respond to the sender. Responses provide
feedback to the other party, emphasize understanding,
encourage further elaboration, and can serve as a
beginning point for!the receiver to transition into the
role of sender for the next message sent. Responses
can take many!forms. Nonverbal cues such as nodding
and smiling can indicate that the sender’s message
was received. Responses in the form of restating
and paraphrasing the sender’s message can provide
strong signals of interest and understanding.
Asking questions can elicit additional details
and!clarification.

The SIER model provides a useful framework for
evaluating communication accuracy and pinpointing the
sources of problems. Similarly, it can be effectively used
for planning activities and behaviors designed to im-
prove communication effectiveness. As the SIER model
depicts, active listening is a hierarchical and sequential
process. One must sense the message before it can be
interpreted. In turn, the message must be interpreted
before it can be evaluated. Finally, it must be effectively
evaluated prior to generating a proper response. When
diagnosing a listening breakdown, one should look for the
lowest level in the hierarchy where the breakdown could
have originated and take proper action to remedy the
problem. Exhibit 4.711 describes 10 specific keys to ef-
fective listening that can be used in conjunction with the
SIER model to pinpoint and improve listening problems.

Exhibit 4.7

Ten Keys to Effective Listening
The Key Practice The Weak Listener The Strong Listener

1. Find areas of interest Tunes out dry subjects Actively looks for opportunities of common
interest

2. Judge content, not
delivery

Tunes out if the delivery is poor Skips over delivery errors and focuses on
content

3. Hold your “re until
full consideration

Evaluates and enters argument
prior to completion of message

Does not judge or evaluate until message is
complete

4. Listen for ideas Listens for facts Listens for central themes

5. Be %exible Takes intensive and detailed notes Takes fewer notes and limits theme to central
theme and key ideas presented

6. Work at listening Shows no energy output; attention
is faked

Works hard at attending the message and
exhibits active body state

7. Resist distractions Is distracted easily Resists distractions and knows how to
concentrate

8. Exercise your mind Resists di$cult expository material
in favor of light recreational
materials

Uses complex and heavy material as exercise
for the mind

9. Keep an open mind Reacts to emotional words Interprets color words but does not get hung
up on them

10. Capitalize on the fact
that thought is faster
than speech

Tends to daydream with slow
speakers

Challenges, anticipates, mentally summarizes,
weighs evidence, and listens between the lines

99CHAPTER 4: Communication Skills

4-5a Verbal Communication:
Giving Information
Verbal information refers to statements of fact, opin-
ion, and attitude that are encoded in the form of
words, pictures, and numbers in such a way that they
convey meaning to a receiver. However, many words
and symbols mean different things to different peo-
ple. Different industries, different cultures, and dif-
ferent types of training or work experience can result
in the same word or phrase having multiple interpre-
tations. For instance, to a design or production en-
gineer, the word quality might mean “manufactured
within design tolerance.” However, to a customer it
might be translated as “meeting or exceeding expec-
tations.” To maximize clarity and minimize misun-
derstandings, understand and use the vocabulary and
terminology that corresponds with the perspective of
the customer.

4-6 UNDERSTANDING
THE SUPERIORITY OF
PICTURES”OVER WORDS

Studies in cognitive psychology have found that pic-
tures tend to be more memorable than their verbal
counterparts.12 The fact that pictures enhance under-
standing and are more easily recalled than abstract
words and symbols has several implications for effec-
tive selling.

! The verbal message should be constructed in a man-
ner!that generates a mental picture in the receiver’s
mind. For example, the phrase “Tropicana juices are
bursting with flavor” is more visual than the more
abstract version “Tropicana juices have more flavor.”
This can also be accomplished by providing a short
and!illustrative analogy or illustrative story to empha-
size a key point and bring it alive in the buyer’s!mind.

! Rather than using abstract words that convey only a
broad general understanding, use words and phrases
that convey concrete and detailed meaning. Concrete
expressions provide the receiver with greater informa-
tion and are less likely to be misunderstood than their
abstract counterparts. For example, “This Web transfer
system will increase weekly production by 2,100 units”
provides more detail than “This Web transfer system
will increase production by 10 percent.” Similarly, “This
conveyor is faster than your existing system” does not
deliver the same impact as “This conveyor system will

move your product from production to shipping at
50 feet per second as compared with your current
system’s 20 feet per second.”

! Integrate relevant visual sales aids into verbal com-
munication. Sales support materials that explain and
reinforce the verbal message will aid the receiver’s
understanding and enhance recall of the message.
an additional benefit, sales aids such as samples,
brochures, graphs, and comparative charts can be
left with the buyer to continue selling until the
salesperson’s next call on the buyer.

4-6a Impact of Grammar
and Logical Sequencing
Grammar and logical sequencing are also important in
the process of giving information to others. The use of
proper grammar is a given in business and social com-
munication. In its absence, the receiver of the message
tends to exhibit three closely related behaviors. First,
the meaning and credibility of the message are signifi-
cantly downgraded. Second, the receiver begins to focus
on the sender rather than the message, which materially
reduces the probability of effective communication.
Last, the receiver dismisses the sender and the sender’s
organization as being unqualified to perform the role
of an effective supplier and partner. The importance of
proper grammar should not be overlooked.

Similarly, whether one is engaged in simply ex-
plaining details or making a formal proposal, logical
sequencing of the material is critical. The facts and
details must be organized and connected in a logical
order. This is essential to clarity and assists the receiver
in following the facts. A discussion or presentation that

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Sales aids such as samples, brochures, and
charts reinforce the verbal message and
enhance the receivers’ understanding
and!recall.

100

jumps around runs the risk of being inefficient and in-
effective. At best, the receiver will have to ask many
clarification questions. At worst, the receiver will dis-
miss the salesperson as incompetent and close off the
sales negotiation. Advance planning and preparation
can improve organization. Outline what needs to be
covered and organize it into a logical flow. The outline
becomes the agenda to be covered and can serve as an
aid for staying on track.

4-7 NONVERBAL
COMMUNICATION

Nonverbal behaviors have been recognized as an im-
portant dimension of communication since medieval
times. As early as 1605, Francis Bacon focused on the
messages conveyed by manual language. Verbal com-
munication deals with the semantic meaning of the
message itself, whereas the nonverbal dimension con-
sists of the more abstract message conveyed by how the
message is delivered. Nonverbal communication
is the conscious and unconscious reactions, move-
ments, and utterances that people use in addition
to the words and symbols associated with language.
This dimension of communication includes eye move-
ments and facial expressions; placement and move-
ments of hands, arms, head, and legs as well as body
orientation; the amount of space maintained between
individuals; and variations in vocal characteristics.
Collectively, the various forms of nonverbal commu-
nication carry subtle as well as explicit meanings and
feelings along with the linguistic message and are fre-
quently more informative than the verbal content of
a message.13

Research indicates that highly successful sales-
people are capable of picking out and comprehending
a higher number of behavioral cues from buyers than
less successful salespeople are able to sense and inter-
pret. In addition, research indicates that 50 percent or
more of the meaning conveyed within the communica-
tion process stems from nonverbal behavior.14 As the
nonverbal components of a message carry as much or
more meaning than the language portions, it is criti-
cal for salespeople to sense effectively, interpret accu-
rately, and evaluate fully the nonverbal elements of a
message as well as the verbal components. In addition
to sensing verbal messages, learn to sense between
the words for the thoughts and feelings not being con-
veyed verbally.

4-7a Facial Expressions
Possibly reflecting its central point of focus in interper-
sonal communication, the various elements of the face
play a key role in giving off nonverbal messages. Frown-
ing, pursed lips, and squinted eyes are common in mo-
ments of uncertainty, disagreement, and even outright
skepticism. Suspicion and anger are typically accompa-
nied by tightness along the jaw line. Smiles are indica-
tive of agreement and interest, whereas biting of one’s
lip can signal uncertainty. Raised eyebrows can signify
surprise and are often found in moments of consider-
ation and!evaluation.

4-7b Eye Movements
In North America and Western Europe, avoiding eye
contact results in a negative message and is often associ-
ated with deceit and dishonesty. However, a sender’s in-
creased eye contact infers honesty and self-confidence.
Increased eye contact by the receiver of the message
signals increasing levels of interest and concentration.
However, when eye contact becomes a stare and con-
tinues unbroken, either by glances away or blinking, it
is typically interpreted as a threat or inference of pow-
er. A blank stare or eye contact directed away from the
conversation can show
disinterest and boredom.
Repeated glances made
toward one’s watch or
possibly an exit door of-
ten indicate that the con-
versation is about to end.

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Fifty percent or more of the meaning
conveyed in interpersonal communication
comes through nonverbal bevaviors.

nonverbal communication
The conscious and unconscious
reactions, movements, and
utterances that people use in
addition to the words and symbols
associated with language.

101CHAPTER 4: Communication Skills

4-7c Placement and Movements
of Hands, Arms, Head, and Legs
Smooth and gradual movements denote calm and confi-
dence, whereas jerky and hurried movements are associ-
ated with nervousness and stress. Uncrossed arms! and
legs signal openness, confidence, and cooperation. How-
ever, crossed arms and legs psychologically close out the
other party and express disagreement and defensiveness.
Increased movement of the head and limbs hints at in-
creasing tension, as does the tight clasping of hands or
fists. The placement of a hand on the chin or a tilted
head suggests increased levels of evaluation, whereas
nodding of the head expresses agreement. Growing im-
patience is associated with drumming of the fingers or
tapping of a foot. The fingering of one’s hair and rubbing
the back of the neck signifies increasing nervousness and
apprehension.

4-7d Body Posture and Orientation
Fidgeting and shifting from side to side is generally
considered to be a negative message associated with
nervousness and apprehension. Leaning forward or sit-
ting forward on the edge of a chair is a general sign of
increasing interest and a positive disposition in regard
to what is being discussed. Similarly, leaning away can
indicate disinterest, boredom, or even distrust. Leaning
back with both hands placed behind one’s head signifies
a perceived sense of smugness and superiority. A rigid
erect posture can convey inflexibility or even defensive-
ness, whereas sloppy posture suggests disinterest in the
topic. Similar to sitting backward in a chair, sitting on the
edge of the table or the arm of a chair is an expression of
power and superiority.

4-7e Proxemics
Proxemics refers to the personal distance that indi-
viduals prefer to keep between themselves and other
individuals and is an important element of nonverbal
communication. The distance that one places between
oneself and others implies a meaningful message and
affects the outcome of the selling process. If a salesper-
son pushes too close to a prospect who requires more
distance, the prospect may perceive the salesperson

to be manipulative, in-
timidating, and possibly
threatening. However,
salespeople who put too
much distance between
themselves and the

customer risk being perceived as rigidly formal, aloof,
or even apprehensive.

Proxemics differs across cultures and regions of the
world. For example, in North Africa and Latin America
business is conducted at a much closer distance than
in North America. As depicted in Figure! 4.4, North
Americans generally recognize four distinct proxemic
zones. The intimate zone is reserved for intimate rela-
tionships with immediate family and loved ones. The
personal zone is for personal relationships with close
friends and associates. The social zone is for business
client relationships and is the zone in which most
business is conducted. The public zone is for the gen-
eral public and group settings such as classrooms and
presentations.

It is critical that salespeople understand proxemics
and monitor the progression of their buyer–seller rela-
tionships so as to position themselves with different cus-
tomers properly. Typically, salespeople begin working
with a prospect at the far end of the social zone. As the
salesperson–buyer relationship develops, the salesper-
son is in a position to move closer without violating the
customer’s space and causing him or her to become
defensive.

4-7f Variations in Vocal
Characteristics
Nonverbal vocal characteristics such as speaking rates,
pause duration, pitch or frequency, and intensity have
been linked to communication effectiveness and sell-
ing performance. These voice characteristics convey
direct as well as subtle and implied meanings and feel-
ings that can complement or accent the corresponding
verbal message.

4-7g Speaking Rates and
Pause Duration
Within normal speaking rates, faster speakers are gen-
erally evaluated more favorably than slower speakers.
Contrary to the often-cited fast-talking salesperson be-
ing perceived as high pressure, faster rates of speech
and shorter pause duration are actually associated with
higher levels of intelligence, credibility, and knowledge.
Slower speakers are perceived as being less competent
as well as less benevolent. However, speech rates that
are jerky and beyond normal rates of speech can present
problems in sensing and interpreting the complete mes-
sage. Varying the rate of speech has also been found to
be conducive to maintaining interest.

proxemics The personal
distance that individuals prefer to
keep between themselves and other
individuals; an important element of
nonverbal communication.

102

Individuals utilize four preferred spatial zones for interaction in di!erent social and business situations.

PERSONAL SPACE AND INTERPERSONAL COMMUNICATIONFIG. 4.4

Intimate Zone
0 to 2 feetPersonal Zone

2 to 4 feet

Social Zone
4 to 12 feet

Public Zone
Beyond 12 feet

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4-7h Pitch or Frequency
Vocal pitch carries a great deal of information to the re-
ceiver. Varying pitch and frequency during the course of
a message encourages attentiveness of the listener and
accents certain forms of statements. A rising pitch during
the message is associated with questions and can often
be perceived as reflecting uncertainty. Just the opposite,
a falling pitch is associated with declarative statements
and completion of the message. Overall, high-pitched
voices are judged as less truthful, less emphatic, less po-
tent, and more nervous. Lower-pitched voices are con-
sidered more persuasive and truthful and have a positive
impact on selling performance.

4-7i Intensity and Loudness
Dominance, superiority, intensity, and aggression are
commonly associated with loud voices, whereas soft
voices characterize submission and uncertainty. How-
ever, it is the variability of intensity that has been found
to be most effective in communication. Varying levels of
loudness allow the sender to adapt to different situations
and environments. Variation also increases the receiver’s
attention and can provide additional information inputs
by accenting key points of a message.

4-7j Using Nonverbal Clusters
Nonverbal clusters are groups of related expres-
sions, gestures, and movements. Similar to a one-word
expression, a single isolated gesture or movement
should not be taken as a reliable indication of the true
intent or meaning of a message. Sensing and inter-
preting groups or clusters of nonverbal cues provides
a more reliable indicator of the message and intent.
When the individual behaviors and gestures begin to
fit together, they form a common and unified message
that the salesperson should consider. Common nonver-
bal clusters applicable to selling communication are de-
scribed in Exhibit!4.8.15

Just as salespeople can interpret nonverbal mes-
sages to better interpret and understand communica-
tion with prospects and buyers, those same prospects
and buyers can also sense and interpret the nonverbal
messages the salesperson is sending. Consequently, it is
important that salespeo-
ple monitor the nonver-
bal cues they are sending
to ensure consistency
with and reinforcement
of the intended message.

nonverbal clusters Groups
of related nonverbal expressions,
gestures, and movements that
can be interpreted to better
understand the true message being
communicated.

103CHAPTER 4: Communication Skills

Exhibit 4.8

Common Nonverbal Clusters
Cluster
Name

Cluster Meaning

Body Posture
and Orientation

Movement of Hands,
Arms, and Legs

Eyes and Facial
Expressions

Openness Openness,
%exibility, and
sincerity

! Moving closer
! Leaning

forward

! Open hands
! Removing coat
! Unbutton collar
! Uncrossed arms and legs

! Slight smile
! Good eye contact

Defensiveness Defensiveness,
skepticism, and
apprehension

! Rigid body ! Crossed arms and legs
! Clenched “sts

! Minimal eye contact
! Glancing sideways
! Pursed lips

Evaluation Evaluation and
consideration of
message

! Leaning
forward

! Hand on cheek
! Stroking chin
! Chin in palm of hand

! Tilted head
! Dropping glasses

to!tip of nose

Deception Dishonesty and
secretiveness

! Patterns
of rocking

! Fidgeting with objects
! Increased leg

movements

! Increased eye
movement

! Frequent gazes
elsewhere

! Forced smile

Readiness Dedication or
commitment

! Sitting forward ! Hands on hips
! Legs uncrossed
! Feet %at on %oor

! Increased eye
contact

Boredom Lack of interest
and impatience

! Head in palm
of!hands

! Slouching

! Drumming “ngers
! Swinging a foot
! Brushing and picking

at!items
! Tapping feet

! Poor eye contact
! Glancing at watch
! Blank stares

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104

CHAPTER CASE4
M O B I LO G I C S A N D H S K , P C

B A C K G R O U N D
This case involves you, as a salesperson representing
MobiLogics (a leading provider of large-scale, multi location
technology hardware and software solutions), and Gage
Waits, Director of IT for HSK, PC (a prominent Dallas-based
national law firm specializing in corporate litigation). HSK is
in the planning stages for a move to larger facilities across
town. As part of the move, HSK wants to completely update
their technology across the new offices, conference rooms,
teamwork areas, and mobile platforms. MobiLogics has
established itself as a major competitor in the technology
marketplace specializing in value-added systems solutions
for business and government entities nationwide. This
past year, Houston-based MobiLogics has added sales and
distribution centers in Dallas and San Antonio, Texas.

C U R R E N T S I T U AT I O N
As an integral part of their move to new and larger
facilities, HSK want to replace their computers, telecom,
and information technology systems including laptop/
desktop/mobile combinations for each of their 21 attorneys,
desktop systems for their 10 staff members, along with
archive and e-mail servers. MobiLogics specializes in this
type of systems selling and uses their network of hardware
and software providers in combination with their own
in-house engineering, programming, and systems group
to consistently provide higher-value solutions than the
competition.

In preparation for an initial meeting with Gage Waits,
Director of IT for HSK, you—as the MobiLogics sales
representative—are outlining your information needs and

developing a draft set of needs discovery questions. These
needs discovery questions will be the focus of the meeting
with Gage Waits and enable MobiLogics to better identify
and confirm HSK’s actual needs, desires, and expectations
in relation to new and expanded computer and information
technology capabilities.

Q U E S T I O N S
1. What information do you—the MobiLogics

salesperson—need in order to fully understand the
technology needs of HSK?

2. Following the ADAPT methodology for needs discovery
questioning, develop a series of salesperson questions
and anticipated buyer responses that might apply to
this selling situation.

R O L E P L AY
Situation: Review the above MobiLogics–HSK case and
the ADAPT questions you developed in response to the
questions associated with this case.

Characters: Yourself, salesperson for MobiLogics; Gage
Waits, Director of IT for HSK

Scene:

Location—Gage Waits’ office at HSK.

Action—As a salesperson for MobiLogics, you are
making an initial sales call to Gage Waits for the purpose
of identifying and detailing the specific needs and
expectations HSK has for new and expanded computers,
telecom, and information technology. Role play this needs
discovery sales call and demonstrate how you might utilize
SPIN or ADAPT questioning sequences to identify the
technology needs.

105CHAPTER 4: Communication Skills

CHAPTER ROLE PLAY4
H E A R T L A N D T E C H N O LO G Y A N D M E T R O
I N S U R A N C E S E R V I C E S

B A C K G R O U N D
Heartland Technology is a leading provider of wireless
networks, telecom, and information technology and
customized software applications for business organizations
having 20 to 500 employees and needs for wireless
communication, information processing, and digital data
transmittal. The company offers a full line of services ranging
from the one-time design of applications for smart phones
and digital devices to the design and building out of full
enterprise-wide systems.

Metro Insurance Services is an independent, preferred
provider for inspection and adjusting insurance claims across
the central U.S. The company provides outsource claims
and adjusting services to many of the top 25 property and
casualty insurance companies and has experienced rapid
growth over the last five years. The company currently
employs 65 people: 50 adjusters out in the field and
spread over eight states, 10 assistants located at company
headquarters in Tulsa, and five administrative and executive
staff members.

As a business development specialist for Heartland
Technology, you are making an initial sales call to Mark
Crandall, Technology Manager for Metro Insurance Services.
The purpose of this initial call is to assess Metro’s current use
and needs for wireless communication and data services.
According to the initial information you gained from a short
phone conversation with Crandall, Metro is currently using

a mixed system comprised of a combination of paper-and-
pencil forms for initially recording interview and field data
along with mobile digital devices and off-the-shelf Excel-
based software applications to digitize, manage, analyze, and
report the data relative to claims.

The current applications work, but they are very static,
require data to be entered twice—once on the paper forms
and then transposed into the Excel application—and they
are not easy to apply across different claims situations. Metro
is exploring the viability of changing to custom designed
applications for single-entry data collection, reporting,
and evaluation designed to work across multiple mobile
platforms. The customized application would enable
adjusters working out in the field to complete and submit
data forms complete with pictures and eliminate the added
processing required in their current use of paper-based
forms and records. The application would also allow for
data analysis and claims assessment to be made on the spot
or back at headquarters. During the phone conversation,
Crandall mentioned that some of the benefits are obvious;
nevertheless, they have a number of concerns about
changing to custom applications and transitioning to a fully
digital system.

R O L E P L AY
Location—Mark Crandall’s office at Metro Insurance Services.

Action—Role play this needs discovery sales call and
demonstrate how you might utilize SPIN or ADAPT
questioning sequences to identify the needs and concerns
of the prospect.

106

5 Strategic Prospecting and!Preparing for Sales
Dialogue

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LEARNING OBJECTIVES
After completing this chapter, you should be able to:

5-1 Discuss why prospecting is an important and challenging
task for salespeople.

5-2 Explain strategic prospecting and each stage in the
strategic prospecting process.

5-3 Describe the major prospecting methods and give
examples of each method.

5-4 Explain the important components of a strategic
prospecting plan.

5-5 Discuss the types of information salespeople need
to!prepare for sales dialogue.

Most salespeople have to spend time prospecting to generate business from
new customers and to increase business with existing customers. Although
some salespeople are responsible for most of the strategic prospecting
process, many firms are integrating the marketing and sales function with
the latest technology to generate leads, qualify and prioritize prospects, and
set appointments for sales dialogue.

After finishing this chapter, go to PAGE 122 for STUDY TOOLS.

Significant revenue increases have been achieved from
effective sales and marketing alignment with the inte-
gration of various types of technology. Studies have re-
ported promising results when sales and marketing work
closely together: 36 percent fewer leads were lost, sales
efforts at closing deals were improved by 67 percent,
and marketing generated 209 percent more value from
marketing programs.1 Consider how sales and market-
ing teamwork using different technologies produced im-
proved prospecting in the following company examples:

! ZoomInfo implemented an account-based marketing
campaign to increase sales for a product. Sales and market-
ing worked together to create an ideal customer profile
to include the company and buyer characteristics of their

best customers. Customer relationship management (CRM),
marketing intelligence, and sales automation tools were
used to identify prospects that met the ideal customer
profile. Marketing and sales synchronized their efforts to
provide personalized communication attention to these
targeted prospects. This strategic prospecting approach
produced a large increase in the number of high-priority
prospects and led to a 30 percent increase in the customer
base for their product.2

! Ricoh improved prospecting by using Marketo market-
ing intelligence software and its Salesforce.com CRM
system to integrate sales and marketing. Leads were
engaged through personalized conversations offering
useful information, such as white papers, case studies,
and webinars. Leads were scored based on the materials

108

Spending time with
the best prospects is
one of the keys to a

salesperson’s success.
However, many sales organizations give almost

total responsibility for all prospecting activities to the
salesperson. In between these two extremes, there are
many approaches where the different strategic prospect-
ing activities are shared between marketing and sales in
various ways. The discussion in this chapter is oriented
toward situations where salespeople are involved actively
in all or most of the prospecting activities.

Regardless of the strategic prospecting approach
used by a firm, most salespeople have to cultivate new
business if they are to sustain the sales growth objectives
their company establishes. However, salespeople typi-
cally achieve sales growth objectives by finding the right
balance between getting new customers and generating
additional business from existing customers. Various pros-
pecting approaches are available, with each having advan-
tages and disadvantages. New technological advances are
increasing the tools salespeople can use to determine the
best sales opportunities. The purpose of this chapter is to
examine the importance and challenges of prospecting, in-
troduce the strategic prospecting process, present differ-
ent prospecting methods, and discuss preparation for sales
dialogue.

viewed or downloaded. Once a certain point level was
reached, the lead became a prospect and was entered
into their CRM system. A telephone sales team con-
tacted the prospects with the highest scores to see if the
prospect was ready for a face-to-face meeting. lf so, an
appointment was set up and the qualified prospect was
turned over to a salesperson. Salespeople were able to
close more sales, because they were calling on the best
prospects.3

! USA Financial employed integrated lead management
software with its CRM system to coordinate sales and
marketing prospecting. E-mail marketing campaigns
were used to generate leads. Leads that responded
were directed to a Web site to answer five questions.
Responses to the questions were scored, and those
scoring above 190 were considered qualified prospects
and assigned to a salesperson. Salespeople focused
on contacting the qualified prospects with the highest
scores. This process generated an increase in clients of
almost 20 percent.4

The Zoomlnfo, Ricoh, and USA Financial examples il-
lustrate situations where the strategic prospecting process
was successful, because of effective teamwork between
sales and marketing and the use of appropriate technology.

109CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

5-1 THE IMPORTANCE
AND CHALLENGES
OF!PROSPECTING

Prospecting is extremely important to most salespeople.
Salespeople who do not regularly prospect are operat-
ing under the assumption that the current business with
existing customers will be sufficient to generate the de-
sired level of future revenue. This is a shaky assumption
in good times, but it is especially questionable in the
tough business environment of recent years. As market
conditions change, existing customers might buy less.
Or, customers might go out of business. Some custom-
ers might be acquired by another firm, with the buying
decisions now being made outside the salesperson’s ter-
ritory. The salesperson could also simply lose customers

due to competitive ac-
tivity or dissatisfaction
with the product, the
salesperson, or the sell-
ing firm. Because there
is typically a consider-
able time lag between
the commencement of

prospecting and the conversion of prospects to customer
status, salespeople should spend time prospecting on
a regular basis. Otherwise, lost sales volume cannot be
regained quickly enough to satisfy the large majority of
sales organizations—those that are growth oriented.

Despite its importance, salespeople often find it
difficult to allocate enough time to prospecting. Many
salespeople do not like to prospect because of their fear
of rejection. Today’s buyers are busy, and many are reluc-
tant to see salespeople.

Changes in buying behavior are also making pros-
pecting more difficult. Studies indicate that more peo-
ple from different functions, positions, and locations are
involved in the buying process with the average number
increasing from 5.4 to 6.8, with these numbers expected
to increase in the future. Many buyers are completing
most of their prepurchase research online and may not
want to engage with a salesperson until the process is
over 50 percent complete. The larger number of people
involved in the buying process, the expanding num-
ber of purchasing options, and the enormous amount
of available information are also making purchasing
harder for some firms. This situation is one reason that
60 percent of qualified prospects do not end up mak-
ing a purchasing decision as found in one study.5 There-
fore, salespeople must try to identify and qualify pros-
pects sooner, and determine the members of the buying
center and the stage in the buying process for these
prospects to be able to have more of an impact on the
purchasing decision.

Salespeople can overcome the challenges of pros-
pecting and become more effective in determining the
best sales opportunities by following a strategic sales
prospecting process, utilizing a variety of prospecting
methods, developing a strategic prospecting plan, and
preparing for sales dialogue with prospects.

5-2 THE STRATEGIC
PROSPECTING
PROCESS

The first step in the trust-based sales process presented
in Chapter 1 is strategic prospecting. Strategic
prospecting is a process designed to identify, qualify,
and prioritize sales opportunities, whether they represent
potential new customers or opportunities to generate!ad-
ditional business from existing customers. The basic pur-
pose of strategic prospecting is to help salespeople deter-
mine!the best sales opportunities in the most efficient way.

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The Ricoh example illustrates a situation
where the strategic prospecting process is
conducted by effective teamwork between
the marketing and sales teams.

strategic prospecting
A process designed to identify, qualify,
and prioritize sales opportunities,
whether they represent potential new
customers or opportunities to generate
additional business from existing
customers.

110

Effective strategic prospecting helps salespeople spend
their valuable selling time in the most productive manner.

The strategic prospecting process (illustrated in
Figure! 5.1) is often viewed as a sales funnel or
sales pipeline because it presents the entire trust-based
sales process and the strategic prospecting process in the
form of a funnel. The funnel is very wide at the top, as
salespeople typically have a large number of potential
sales opportunities. As salespeople move through the
strategic prospecting process and the other stages in the
trust-based sales process, the funnel narrows because only
the best sales opportunities are pursued and not all sales
opportunities result in a sale or new customer relation-
ship. For the most productive salespeople, the sales fun-
nel is normally much wider at the bottom than the bottom
of the funnel for less productive salespeople. The most
productive salespeople pursue the best sales opportuni-
ties and translate a larger percentage of these opportuni-
ties into actual sales than less productive salespeople do.
We will now discuss each step in the strategic prospecting
process.

SALES FUNNELFIG. 5.1

Generating Sales Leads

Determining Sales Prospects

Prioritizing Sales Prospects

Preparing for Sales Dialogue

Remaining Stages in
the Trust-Based Sales Process

Qualifying Sales Leads

The sales funnel presents the trust-based sales process
and highlights the major steps of the strategic
prospecting process.

and marketing products. Thus, the larger organizations
and firms would typically represent better sales opportu-
nities than the smaller ones. If salespeople merely gener-
ate as many leads as possible and pursue most of them,
they are likely to be spending a great deal of their time
with sales leads that are not good sales opportunities
for them.

5-2b Determining
Sales Prospects
The most productive sales-
people evaluate sales leads
to determine which
ones are true prospects
for their product or
service. This evaluation
process is usually called
qualifying sales leads.
Salespeople search for,
collect, analyze, and use

sales funnel or pipeline
A representation of the trust-based
sales process and strategic sales
prospecting process in the form
of!a!funnel.

sales leads or suspects
Organizations or individuals who
might possibly purchase the product
or service a salesperson offers.

qualifying sales leads
The salesperson’s act of searching out,
collecting, and analyzing information
to determine the likelihood of the lead
being a good!candidate for making
a sale.

The most productive
salespeople pursue the best

sales opportunities and
translate a larger percentage
of these opportunities into
sales than less productive

salespeople do.

5-2a Generating Sales Leads
The first step in the strategic prospecting process is to
identify sales leads. Sales leads or suspects are orga-
nizations or individuals who might possibly purchase the
product or service a salesperson offers. This represents
the realm of sales opportunities for a salesperson. In the
Ricoh example, all organizations that might need office
equipment would be sales leads. USA Financial sells fi-
nancial and marketing products to independent financial
advisors, so sales leads would include all independent
financial advisors.

Although more sales leads are usually better than
fewer sales leads, there are normally large differences
in sales opportunities among all of the sales leads gener-
ated by salespeople. For example, larger organizations
might purchase more office equipment, and larger inde-
pendent financial advisor firms might buy more financial

111CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

various types of screening procedures to determine if
the sales lead is really a good sales prospect. Although
specific companies define sales prospects in different
ways, a sales prospect is typically an individual or or-
ganization that:

! Has a need for the product or service.
! Has the budget or financial resources to purchase the

product or service.

! Has the authority to make the purchase decision.

Those that meet these criteria move down the sales
funnel (see Figure 5.1) into the sales prospect category,
while those that do not are set aside. Ricoh awards points
to sales leads based on the number and types of mate-
rials accessed in responses to company emails. Once a
specified number of points are accumulated, the lead
becomes a prospect in Salesforce.com. USA Financial
e-mails each lead five key questions about the situation
at their firm. Those scoring above 190 on these ques-
tions are considered qualified prospects. Interestingly,
only 14! percent of the independent financial advisors
responding to recent e-mails were found to be qualified
prospects. Salespeople who spend the time and effort
qualifying their leads limit the time wasted on making
calls with a low probability of success and focus their ef-
forts on the more fruitful opportunities.

5-2c Prioritizing Sales Prospects
Even though the qualifying process has culled out the
least promising sales leads, the remaining prospects
do not all represent the same sales opportunity. The
most productive salespeople prioritize their sales pros-
pects to ensure that they spend most of their time on
the best opportunities. One approach is to create an
ideal customer profile and then analyze sales pros-
pects by comparing them with this ideal customer pro-
file. Those who most closely fit the profile are deemed
to be the best sales prospects. Zoomlnfo created an ideal
customer profile and used it as a basis for prioritizing
their qualified prospects. Another example of the value

from an ideal customer
profile is presented in
“From the Classroom
to the Field: Identify-
ing the Best Prospects.”

Another approach
is to identify one or
more criteria, evaluate
sales prospects against
these criteria, and ei-
ther rank all of the sales

prospects based on this evaluation or place the sales pros-
pects into A, B, and C categories, with A sales prospects
representing the best sales opportunities. Ricoh and USA
Financial both prioritize their prospects according to the
points assigned to a prospect from their scoring system—
the more points, the better the prospect. At Ricoh, the
telephone sales team calls the best prospects to set up
an appointment with a Ricoh field salesperson. At USA
Financial, the salespeople contact the highest scoring
prospects directly to schedule a meeting. The net result
in both situations is that their salespeople are spending
their valuable time with the best sales opportunities.

5-2d Preparing for Sales Dialogue
The final step in the strategic prospecting process is to
prepare for the initial contact with a sales prospect by
planning the sales dialogue. The information accumulated
to this point in the process is helpful, but additional in-
formation is usually required to increase the chances of
success in the initial sales dialogue. The types of additional
information required are discussed later in this chapter.

5-3 PROSPECTING METHODS
Many different sources and methods for effective strate-
gic prospecting have been developed for use in different
selling situations. A good selling organization and suc-
cessful salespeople will have a number of ongoing pros-
pecting methods in place at any given time. The sales-
person must continually evaluate prospecting methods
to determine which methods are bringing in the best
results. New methods must also be evaluated and tested
for their effectiveness.

Many popular prospecting methods are presented
in Exhibit 5.1. Some of the typical prospecting meth-
ods used in the past are becoming less effective in some

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Social selling is an increasingly effective
sales method.

sales prospect An individual
or!organization that has a need for
the product or service, has the budget
or financial resources to purchase
the product or service, and has the
authority to make the purchase
decision.

ideal customer profile
The characteristics of a firm’s
best!customers or the perfect
customer.

112

Alison Hartrum graduated from the University of
Louisville in December 2011. She started her sales
career as a New York Life agent selling financial and in-
surance products. Her success in sales for four years led
to a promotion to partner with a Fortune 500 company
with responsibilities for hiring, training, and develop-
ing successful agents. Alison talks about how what she
learned in her sales classes has helped her become
more effective at prospecting:

“My sales classes taught me valuable prospecting
approaches that I have been able to use in my sales
career. One of the most important aspects of sales suc-
cess is the ability to prospect and get in front of the best
potential clients. The sale itself is always the fun part, but
it is the prospecting that makes or breaks a sales career.”

“One of the keys to my prospecting success is
forming strong relationships with individuals in the fol-
lowing professions: Realtor, Mortgage Broker, Property

and Casualty Agent, Estate Attorney, and CPA. Clients
of these professionals have needs for the financial and
insurance products I sell, so I am able to receive and
provide prospect referrals. “

“In order to help my strategic partners determine
the best prospects for me, I created an ideal customer
profile and shared this with them. These professionals
now focus on identifying referrals similar to my ideal
customer profile. When I receive a referral, I compare
the characteristics of the referral against the key as-
pects of my ideal customer profile. My best prospects
are those most similar to my ideal customer profile.
This approach directs me toward spending my selling
time with the best sales prospects. Although my new
partner position is a management role, I follow the
same basic process by using an ideal customer profile
to help determine the best prospects for my sales team
and guide my recruiting efforts.”

From the Classroom
to the Field
Identifying the Best Prospects

Exhibit 5.1

Prospecting Methods
Cold Canvassing Networking Company Sources Commercial Sources

! Cold Calling
! Referrals
! Introductions

! Centers of In!uence
! Noncompeting Salespeople
! Social Media

! Company Records
! Advertising Inquiries
! Telephone Inquiries
! Trade Shows
! Seminars

! Directories
! Lead Management

Sources

selling situations. A recent study found that it takes 18
or more phone calls to connect with a prospect, call back
rates are less than 1 percent, and only 24 percent of
sales emails are ever opened.6 More buyers are actively
using social media as indicated by a study reporting that

75 percent of buyers are using social media in different
ways throughout their purchasing process.7 As suggested
by Salesforce Vice President, Wendy Johnstone: “Every-
one is now connected and our customers are on multiple
channels—mobile, social, and digital.”8

113CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

Meg Hagan is a sales representative for United Of-
fice Furniture. She sells all types of office furniture to
professional firms. Meg has been especially successful
in using referrals to get appointments with the deci-
sion makers at prospect firms. For example, she used a
referral to set up a meeting with Max Pursell, managing
partner at an accounting firm, and ended up making
her largest sale. Max is very satisfied with the office
furniture he purchased for a satellite office. During a
recent Chamber of Commerce event, Meg was talking
with Max, and Max told a story about a fishing trip with
his friend, Patrick Bassett. Meg knows that Patrick is the
managing partner at a small, but growing law firm. She
recently saw in the business news that his law firm was
going to open a new office in the suburbs and would
announce the exact location in the next two weeks.
Meg asked Max if he would be willing to refer her to
Patrick and send an e-mail to Patrick introducing her.
Max said he normally does not like to make referrals,
but he might make an exception in her case. He said he
would think about it and let her know within a week, if
he would send a referral e-mail. Meg was excited and
began to gather information about Patrick and his firm.
After a week went by, Meg had not heard from Max,

so she called his office and found out that he was on
a three-week vacation in Europe. Meg knows that it is
extremely important that she talk with Patrick as soon
as possible to have the best chance for the office equip-
ment at the new office location. A sale to Patrick’s firm
would lead to a hefty bonus for her. But, she does not
have the referral approval from Max. Without the refer-
ral e-mail, Meg knows it will be harder to get a meeting
with Patrick, and she will not have the favorable com-
ments from Max about the satisfied experience he had
working with her.

What should Meg do?
1. Contact Patrick by phone, mention the positive

experience she had working with Max, and try to
set up an appointment without a direct referral
and e-mail from Max.

2. Contact Patrick by phone and indicate that Max
had referred her to him for his office equipment
needs and try to set up a meeting.

3. Wait until Max is back at work and call to see if Max
would write the referral e-mail to Patrick. Once the
e-mail is sent, contact Patrick by phone to set up
an appointment.

An Ethical Dilemma

This situation has led many sales people to engage
in social selling as an important element of their stra-
tegic selling process. Social selling is leveraging so-
cial media to identify, understand, engage, and network
with prospects to develop relationships.9 Although of-
ten combined with other prospecting methods, social
selling permeates much of the strategic prospecting
process for many salespeople. It has been reported that

more than 70 percent
are involved in so-
cial selling activities.10
And, the use of social
selling has produced
favorable results. For
example, studies indi-
cate that 72 percent

of salespeople using social selling outperformed their
peers, and 90 percent of top performing salespeople
focused on social selling.11 More specifics about social
selling are presented in the discussion of social media
as a prospecting method.

5-3a Cold Canvassing
Cold canvassing occurs when salespeople contact a sales
lead unannounced with little if any information about
the lead. Cold calling is the most extreme form of cold
canvassing because salespeople merely “knock on doors”
or make telephone calls to organizations or individuals.
This is a very inefficient prospecting method. Typically,
a very small percentage of cold calls produce, or lead to
future sales dialogue with qualified prospects. Because

social selling Leveraging social
media to identify, understand, engage,
and network with prospects to develop
relationships

cold calling Contacting a
sales!lead unannounced and with little
or!no information about the!lead.

114

there is so much rejection, many salespeople do not like
to cold call sales leads.

Using referrals or introductions can improve the
success of cold calling. A referral is a sales lead a cus-
tomer or some other influential person provides. Sales-
people are often trained to ask customers and others for
the names and contact information of potential pros-
pects. Sometimes salespeople can also obtain sufficient
information to qualify the lead as a good sales prospect.
Additionally, salespeople can get permission to use the
person’s name when contacting the prospect. Social sell-
ing can be an effective way to get referrals. For example,
an adviser for Guardian Life obtained 35 referrals from a
client’s professional network on LinkedIn. This is a much
larger number of referrals than from more typical per-
sonal methods. This adviser’s sales have almost doubled
since engaging in social selling for prospecting.12

In some cases, the person might agree to provide
an introduction by writing a letter or making a phone
call to introduce the salesperson to the prospect. This
referral approach can work well, but ethical issues
might arise, as depicted in “An Ethical Dilemma.”

5-3b Networking
Salespeople can use various types of networking as
effective methods for prospecting. Many salespeo-
ple join civic and professional organizations, country
clubs, or fraternal organizations, and these member-
ships provide the opportunity for them to build re-
lationships with other members. Sometimes these
relationships yield prospects. Some members might
be influential people in the community or other orga-
nizations, making them centers of influence for the
salesperson and potentially providing help in locating
prospects. Accountants, bankers, attorneys, teachers,

business owners, politicians, and government workers
are often good centers of influence.

Networking with salespeople from noncompet-
ing firms can also be a good source of prospects.
Business Networking International (BNI) is a for-
mal organization with each local group consisting of
noncompeting salespeople. The basic purpose of
this organization is for the members to generate pros-
pects for each other. There are other sales and market-
ing organizations that salespeople can join to create the
opportunity to identify prospects by networking with
members.

It is important for salespeople to strike up conversations
with other sales representatives while waiting to see buyers.
Noncompeting salespeople can be found everywhere and
can help in getting valu-
able information about
prospects. An example
of how noncompeting
salespeople can help each
other was demonstrated
when a Hershey Choco-
late the United States
salesperson went out of
his way to tell a Hormel
sales representative about
a new food mart going
into his territory. The
Hormel representative
was the first of his com-
petitors to meet with the
new food mart manage-
ment team and was given

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Noncompeting salespeople can be found
everywhere and can help in getting
valuable information about prospects—see
the Hershey and Hormel example.

Participating in trade shows is an effective
prospecting method.

referral A name of a company
or!person given to the salesperson as a
lead by a customer or even a!prospect
who did not buy at this!time.

introduction A variation
of a referral where, in addition
to requesting the names of
prospects,!the salesperson asks
the!prospect or customer to prepare!a
note or letter of introduction that can
be sent to the!potential customer.

centers of influence Well-
known and influential people who can
help a salesperson prospect and!gain
leads.

noncompeting salespeople
A salesperson selling noncompeting
products.

115CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

Technology in Sales
Social Media and Social Selling
SAP introduced social selling in their sales organization
in 2012 with the purchase of 50 Sales Navigator
licenses. The company now has more than 15,000
licenses worldwide. Account executives use Sales
Navigator as well as Twitter, Grapevine6, and SAP’s Jam
Social Collaboration tool to generate leads, identify the
best prospects, and win business.

Sales Navigator helps account executives identify
and follow leads and listen for opportunities to
identify problems buyers are having. Leads with
problems SAP can solve are engaged through lnMail
in Sales Navigator or a direct message on Twitter,
WeChat, or Xing. The Jam Social Collaboration tool
and Grapevine6 are used for sales and marketing to
work together to determine the content most needed
by the lead. This content is shared with the lead in the

form of a video business card or video demonstration
of a solution. Continued engagement identifies the
best prospects for account executives to pursue as
sales opportunities. This process of listening, learning,
and engaging with potential buyers over social media
helps to build trust and credibility early in the buying
process and increases the likelihood of a sale in the
future.

The social selling approach used by SAP has
contributed to large sales increases. The highest-
performing account executives are usually the best
social sellers. These results are also encouraging SAP to
increase its social selling efforts around the world. The
SAP social selling philosophy is the focus of training
programs called “Social Selling All Hands” that are
conducted on a regular basis. More attention is also
being given to develop benchmarks for social selling
performance and business results.15

valuable shelf space that his competitors could not get. A
few months later, the Hormel sales representative returned
the favor when he found out that an independent grocer
was changing hands. The Hershey salesperson was able
to get into the new owner’s store early and added valuable
shelf space for his products. The operating principle of “you
scratch my back, and I scratch yours” works when informa-
tion flows in both directions.13

As presented earlier, the increasing use of social
selling means that salespeople are actively involved with
different media tools. LinkedIn is most often used, fol-
lowed by Twitter. However, Facebook, Instagram, Snap-
chat, and industry-specific online communities can be
effective in selling situations where prospects use them.
The social media tools can help salespeople identify
more leads and better prospects earlier in the buying
process, and provide them with the opportunity to share
valuable content in conversations with them.14

Consider one suggested approach for using Linked In.
A salesperson can identify leads from the networks of their
Linked In connections and from the “Who’s Viewed Your

Profile” on their LinkedIn screen. They can then send a
connection request to the lead. Once connected to the lead,
the salesperson can e-mail a message with meaningful con-
tent as a way to start a conversation with the lead and to
determine if the lead is a qualified prospect. If so, the sales-
person can continue the conversation and try to move into
the remainder of the sales process at the appropriate time. If
not, the salesperson can still share relevant content, because
the lead might become a qualified prospect in the future.

In addition to the basic LinkedIn Product (linke-
din.com), many salespeople use their Sales Navigator
product. Sales Navigator (sales.linkedin.com) provides
expanded and enhanced features not available in basic
LinkedIn. Many salespeople have used Sales Navigator
effectively, as evidenced in the example presented in
“Technology in Sales: Social Media and Social Selling.”

5-3c Company Sources
Many companies have resources or are engaged in ac-
tivities that can help their own salespeople with strategic

116

prospecting. Company records can be a useful source
of prospects. Salespeople can review company records to
identify previous customers who have not placed an order
recently. Contacting previous customers to determine why
they have stopped ordering could provide opportunities to
win back business. Examining the purchasing behavior of
existing customers can also help in identifying opportuni-
ties to sell additional products to specific customers.

Advertising inquiries are potentially a good source
of prospects. For example, one manufacturer’s rep in the
natural gas industry speaks highly of his company’s adver-
tising plan. They only advertise in trade magazines that
they believe their buyers read. The salesperson’s territory
includes Idaho, Utah, Montana, and Wyoming. Their ad-
vertising message is simply, “If we can help you with any
of your natural gas needs (e.g., flow meters, odorizers),
please give us a call.” These leads are then turned over
to the salesperson who calls on that territory. One sales-
person cannot cover territories of this size. The advertis-
ing program qualifies the prospect (with the help of the
telephone) before the salesperson is sent out on the call.16

The Ricoh and USA Financial examples presented
earlier in this chapter represent different approaches
companies are implementing to employ Web-based and
e-mail marketing campaigns to identify sales leads, qualify
and prioritize prospects, and help salespeople focus on
the best sales opportunities.

Chapman Kelly is one company that has used Web-
based marketing effectively. The company redesigned its
Web site to include interactive features that created a dia-
logue with visitors. It worked on the site’s search engine
optimization to get into the top five listings for healthcare
audit-related terms and started a company blog. These ef-
forts increased traffic to its Web site from 10 to 15 visits per
week to 1,500–2,000, generated qualified sales prospects,
and increased new business by $2 million. This Web-based
marketing approach has replaced cold calling as the major
source of new customers.17

Many organizations today use both inbound (prospect
calls the company) and outbound (sales person contacts the
prospect) telemarketing. Inbound telemarketing in-
volves a telephone number (usually a toll-free number)
that prospects or customers can call for information.
Companies distribute toll-free numbers by direct mail
pieces (brochures), advertising campaigns, and their
outbound telemarketing program. United Insurance
Agency uses both inbound and outbound telemarketing to
serve their market niche of hotels across America.18 They
use outbound telemarketing to generate and then qualify
leads for their salesforce. Qualified leads are turned over
to experienced salespeople. Usually, interns do all the

outbound telemarketing. Inbound telemarketing is used
to resolve problems, answer questions of prospects, and
take orders from existing customers.

Attending conventions and trade shows presents
salespeople with excellent opportunities to collect leads.
Generally, the company purchases booth space and sets up
a stand that clearly identifies the company and its offerings.
Salespeople are available at the booth to demonstrate their
products or answer questions. Potential customers walk by
and are asked to fill out information cards indicating an
interest in the company or one of its products. The com-
pleted information card provides leads for the salesperson.
Trade shows can stimulate interest in products and pro-
vide leads. For example, bank loan officers attend home
improvement trade shows and can offer the homeowner
immediate credit to begin a project. Those who sign im-
mediately may be offered a reduction in their interest rate.

Firms can use seminars to generate leads and provide
information to prospective customers. For example, a finan-
cial planner will set up a seminar at a local hotel to give a pre-
sentation on retirement
planning, inviting pros-
pects by direct mail, word
of mouth, or advertising
on local television and ra-
dio. The financial consul-
tant discusses a technique
or investing opportunities
that will prepare the audi-
ence for retirement. Those
present will be asked to
fill out a card expressing
their interest for follow-up
discussions. The financial
consultant hopes this free
seminar will reward him
or her with a few qualified
prospects.

5-3d Commercial
Sources
A variety of sources
in print and electron-
ic form can be very
useful in prospecting.
Directories offer an
inexpensive, convenient
means of identifying
leads. Telephone books
today contain a busi-
ness section that lists all

company records Information
about customers in a company
database.

advertising inquiries Sales
leads generated from company
advertising efforts.

inbound telemarketing
A source of locating prospects
whereby the prospect calls the
company to get information.

outbound telemarketing
A source of locating prospects
whereby the salesperson contacts the
prospect by telephone.

trade shows Events where
companies purchase space and set
up booths that clearly identify each
company and its offerings and that
are staffed with salespeople who
demonstrate the products and answer
questions.

seminars A presentation salespeople
give to generate leads and provide
information to prospective customers
who are invited to the seminar by direct
mail, word of mouth, or advertising on
local television or radio.

directories Electronic or
print!sources that provide contact
and other information about
many!different companies or
individuals.

117CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

Selling in Action
Smart Automation for Managing Leads
Conversica (conversica.com) performed a study of how
well firms responded to Web site leads. The study found
that about 33 percent did not respond to these Web
site inquiries and most only made one to two attempts
to contact the lead. Only 2 percent of the firms could
be considered top performers. The top performers
provided prompt, personalized responses that
mentioned the inquiry and asked for specific contact
information for future follow up.

Conversica offers a virtual Sales Assistant that
addresses many of the problems found in their
study. The Sales Assistant responds promptly to

Web site inquiries, personalizes every message, and
keeps making attempts until it gets in contact with
the lead. The messages from the Sales Assistant
ask questions to qualify the lead and try to set up a
phone call from a salesperson to qualified prospects.
lf successful, a salesperson is notified and provided
with the phone number and time for the phone call.
The salesperson speaks with the prospect and moves
through the sales process. Based on experiences with
16,000 salespeople, 1000 companies, and 180 million
messages, the Sales Assistant gets a 35 percent
response rate, with more than 30 percent engaging
with a salesperson, and 13 percent turning into
priority prospects.19

the community’s businesses. This list is usually broken
down further by business type. Manufacturers, medi-
cal facilities, pharmacies, and grocery stores, to name a
few, can be easily identified by using the business pages
of the phone book. Many other directories exist, such as
chamber of commerce directories and trade association
lists. The online versions of these directories are espe-
cially valuable, because they are updated regularly and
usually have search capabilities to facilitate the identifi-
cation of targeted leads.

There are a growing number of companies providing a
variety of lead management services, such as lists of tar-
geted businesses or individuals with detailed contact and oth-
er information, as well as e-mail, direct mail, telephone, and
Web-based marketing services to connect with the targeted
leads. Examples of companies providing different types of
lead management services include: InfoUSA (infousa.com),
ZoomInfo (zoominfo.com), Hoovers (hoovers.com), and

Marketo (marketo.com).
An interesting example of
using artificial intelligence
to manage sales leads is
presented in “Selling in
Action: Sales Automation
for Managing Leads.”

So
ur

ce
: M

ar
ke

to
In

c.
Companies like Hoovers, provide lead
management services to other organizations.

5-4 DEVELOPING A STRATEGIC
PROSPECTING PLAN

The most productive salespeople use a variety of pros-
pecting methods and follow the strategic prospecting
process by generating leads, qualifying them to identify
true prospects, and then prioritizing these prospects so
that they pursue the best sales opportunities. The use of

lead management services Lists
of targeted businesses or individuals with
detailed contact and other information,
as well as!e-mail, direct mail, telephone,
and!Web-based marketing services!to
connect with targeted!leads.

118

a strategic prospecting plan can help salespeople con-
tinuously improve their prospecting effectiveness.

An example of an effective strategic prospecting plan is
exhibited by Northwestern Mutual (NM). Salespeople use
a referred lead prospecting approach to reach weekly pros-
pecting goals. Their tracking system indicated that pros-
pecting goals were not being met because clients were not
providing enough referrals and were often not making the
promised favorable introductions to these referrals. NM
addressed these issues by having salespeople use Linkedln,
Facebook, or other social media to identify five to six people
that the client knows and are likely to be qualified pros-
pects. The client now selects referrals from this feeder list
and gives reasons why those selected are good prospects.
The salesperson also asks the client to e-mail or text each
referral introducing the salesperson and providing some fa-
vorable comments, and to copy the salesperson. This new
approach has generated more qualified prospects, more
favorable introductions, and has led to a higher success rate
in securing appointments with the referred prospects.20

A strategic prospecting plan should fit the
individual needs of the salesperson. As illustrated in
Figure!5.2, the focal point of a prospecting plan should
be the goal stating the number of qualified prospects to
be generated. Formalized goals serve as guides to what
is to be accomplished and help to keep a salesperson
on track. The plan should also allocate an adequate and

specific daily or weekly time period for prospecting.
Having specific time periods set aside exclusively
for prospecting helps prevent other activities from
creeping in and displacing prospecting activities. A
good tracking system should also be a part of the
prospecting plan. A tracking system can be as low-tech
as a set of 3 3 5-inch note cards or employ one of the
many computerized and online contact management
or customer relationship management software appli-
cations. Exhibit! 5.2 shows an example of a simple, but
effective, paper-and-pencil tracking form. The tracking
system should record comprehensive information about
the prospect, trace the prospecting methods used, and
chronologically archive outcomes from any contacts
with the prospect. A fourth element of the prospecting
plan is a system for analyzing and evaluating the results of
prospecting acti vities.
Continuous eva luation
should be employed to
ensure that the sales-
person is meeting pros-
pecting goals and using
the most effective pros-
pecting methods. The
fifth and final element
of a prospecting plan
should be a program to

PROSPECTING PLANS ARE THE FOUNDATION FOR EFFECTIVE PROSPECTINGFIG. 5.2

The strategic prospecting plan sets goals, allocates specific times to be used for prospecting, and continuously evaluates
results in order to maximize the e!ectiveness of prospecting time and e!ort.

SET GOALS:
Establish daily,

weekly, and
monthly quotas

for acquiring new
prospects.

ALLOCATE TIME:
Establish a regular
daily schedule for
conducting prospecting
activities.

KEEP
RECORDS:
Track your results

prospecting methods.

STAY POSITIVE:

knowing your products
and believing that

best solutions.

EVALUATE:
What is working for

you? Compare results
and use the methods

that work best for you.

strategic prospecting plan
A salesperson’s plan for gathering
qualified prospects.

tracking system Part of
the!strategic prospecting plan
that!records comprehensive
information about the prospect, traces
the prospecting methods used, and
chronologically archives outcomes
from any!contacts with the prospect.

119CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

review and stay up-to-date on product knowledge and com-
petitor information to emphasize and underscore that the
salesperson’s products and services offer the best solutions
to customer needs and problems. Self-confidence is critical
to success in selling, and a base of comprehensive knowl-
edge and understanding is the key to believing in one’s self.

As with all phases of the sales process, salespeople
must exercise judgment and set priorities in prospecting.
There is a limited amount of time for prospecting, and
a better understanding of the concepts and practices
illustrated in this chapter can help a salesperson be more
productive. An added bonus is that the sales process is
more enjoyable for salespeople calling on bona fide pros-
pects who can benefit from the salesperson’s offering.

5-5 GATHERING PROSPECT
INFORMATION TO PREPARE
FOR SALES DIALOGUE

The basic objective of the strategic prospecting process
is to provide salespeople with a list of prioritized sales
prospects. Salespeople can then select the best oppor-
tunities and move into the next stage of the trust-based

sales process, which is covered in Chapter!6, “Planning
Sales Dialogues and Presentations.” Some information
about the prospect has been collected throughout the
strategic prospecting process, but more is needed to be
effective at each stage of the trust-based sales process. In
many cases, the next step is for the salesperson to con-
tact the prospect by telephone. Although the purpose of
this call is usually to set up an appointment, salespeople
are often able to collect additional useful information.
All of the information collected prior to meeting with a
prospect provides a foundation for completing the Sales
Dialogue Template addressed in Chapter 6.

The more information a salesperson has about a
prospect, the better chance a salesperson has to make a
sale. Thus, gathering relevant information is an ongoing
activity throughout the trust-based sales process, but es-
pecially important prior to the initial sales dialogue with
a prospect. The information needed varies depending on
the product or service being sold and the specific buyer’s
situation. We will examine the types of basic information
about the prospect and information about the selling situ-
ation. Then, sources of this information will be discussed.

Assembling prospecting information before meet-
ing with current customers to generate more business is
also very important. An example from a salesperson with

Exhibit 5.2

Personal Prospecting Log
PERSONAL PROSPECTING LOG

Name Tom Jenkins
Team Indianapolis commercial Date 4/16

Organization
Contact
Person

Source
of Lead Phone

Date of
Appointment Outcome of Call

Follow-up
Activity

Cummins
Engine

Tyler
Huston

Personal
contact

765-444-1234 4/11
8:30 A.M.

Need info on
printer

Send in mail

Ontario
Systems

Darrell
Beaty

Referral 765-223-4117 4/19
4 P.M.

Chase Alice
Arnold

Direct mail
sent back
6/02

317-663-2214 4/16
Lunch

Didn’t seem
impressed need
more work

Need more
contact with
Alice PACER
GAME?

Thomson
Consumer
Electronics

Doug
Lyon

Phone 317-212-4111 4/15
3 P.M.

Had bad
experience with us
several years ago

This one will
take”time

120

an electrical distribution company offers an effective ap-
proach. She accesses company records to create a gap
analysis. This report indicates the products the customer
is and is not buying from her firm. Her next step is to
focus on the products the customer is not buying. Then,
she reviews her firm’s customer database to determine
which of the products the customer is not buying would
represent the best sales opportunities for her and selects
one product to emphasize during the next meeting with
the customer. This type of prospecting preparation has
helped her emphasize the best sales opportunity with the
customer, but also allows her to address other products if
the customer indicates more interest in them.21

5-5a Basic Information about
the Prospect
There is usually a great deal of basic information about the
prospective buyer and company that can be obtained and
evaluated prior to the initial sales dialogue with a prospect.
Examples of the most valuable information are presented
in Exhibit 5.3. It is very important for salespeople to do
their homework and obtain as much of this information as
possible before meeting with a prospect. The basic infor-
mation about the buyer helps the salesperson understand
the buyer from a personal perspective. This knowledge
will be useful in establishing rapport with the buyer, which
is extremely important early in the trust-based sales pro-
cess. The basic information about the company provides
the salesperson with an understanding of the prospect
company that will help the salesperson determine the
best questions to ask during sales dialogue. Some compa-
nies are employing the latest technology to provide sales-
people with useful prospect information. For example,
Cintas has created a virtual office of various types of

prospect information. Salespeople can access this informa-
tion electronically and obtain valuable information before
contacting a prospect. Prospects are typically impressed
with salespeople who are prepared and know a lot about
them and their company before the first meeting.22

5-5b Information about
the Selling Situation
Specific information about the selling situation is ex-
tremely valuable to salespeople. Although much of the
basic information about the prospect can normally be
gathered prior to meeting with a prospect, much of
the information about the selling situation will be ob-
tained from the prospect during sales dialogues. However,
salespeople should try to obtain this information as soon
as possible, because it is useful during each stage of
the trust-based sales process.

Exhibit 5.3

Basic Information about the Prospect
About the Buyer About the Company

! Buyer’s name, title, and contact information
! Educational and work background
! Community and organizational involvement
! Hobbies and interests
! Communication style

! Type of business
! History of business
! Number of employees
! Target market served
! Products and services o#ered
! Key competitors
! Current strategy and performance

The more a salesperson
knows about a prospect, the
better chance a salesperson

has to make a sale.

Specific types of selling situation information are pre-
sented in Exhibit 5.4. Most of this information helps the
salesperson understand all aspects of the prospect’s buy-
ing process and was discussed in Chapter 3, “Understand-
ing Buyers” and is part of the Sales Dialogue Template
prepared in Chapter 6. Several pharmaceutical firms are
using smartphone apps so that salespeople can get the lat-
est information about a physician’s situation before a sales
call. A few clicks on the app and the salesperson is alerted

121CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

Exhibit 5.4

Information about the
Selling!Situation

! Type of purchase
! Motivation for buying
! Current supplier
! Buying center members and roles
! Buying process
! Available budget
! Competitors involved

Exhibit 5.5

Sources of Information
! Online searches
! Online and print directories
! Prospect Web site
! Social media
! Annual reports
! Trade and business press
! Professional organizations
! Company databases
! Contact with prospect

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tter
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k.co
m

The use of new and emerging technologies will cer-
tainly improve the availability of prospect information
for salespeople in the future.

Even the most thorough preparation will usually
not provide salespeople with all of the desired prospect
information. The additional information is typically col-
lected through questioning the prospect during sales
dialogues.

The information salespeople col-
lect about prospects prior to the first
meeting and throughout the trust-

based sales process should be accumu-
lated and updated on a regular basis.

Although some salespeople do this manu-
ally with paper files, the use of contact

management, salesforce automation (SFA) and
customer relationship management (CRM) sys-

tems is increasing. These technologies are being improved
continuously and are valuable tools for salespeople.

to any changes in the physician’s patient population or
prescribing habit, as well as any physician engagements
with digital media. Selling situation information that can-
not be obtained prior to meeting with a prospect becomes
a key focus during the sales dialogue.23

5-5c Sources of Information
Salespeople have a variety of sources for
the needed information. Examples of
useful sources are presented in Exhibit
5.5. The use of social media as a valuable
information source for salespeople has
been increasing in re cent years. Facebook,
LinkedIn, and blogs are especially useful in-
formation sources. Many companies are also
accumulating information about prospects and
making it readily available to salespeople using
the latest technology.

122

CHAPTER CASE5
D E V E LO P I N G A S T R AT E G I C
P R O S P E C T I N G ! P L A N

B A C K G R O U N D
Jennifer Hamman graduated from the state university and
was hired as a sales representative for the Logistics Company.
The Logistics Company is a transportation broker that links
companies needing products shipped with trucking firms
to carry the shipments. After an initial training program,
Jennifer was given a couple of existing company customers
and a small list of leads to get her started. She began by
serving the shipment needs of the existing customers. This
gave her some confidence, but she realized that for her
to be successful, she must begin prospecting and try to
identify the best sales opportunities. The Logistics Company
provides an ongoing list of leads that can be accessed by all
salespeople. Once a salesperson contacts one of these leads,
no other salesperson can contact them. Jennifer started her
prospecting by contacting these leads.

C U R R E N T S I T U AT I O N
Jennifer has been calling a number of leads each day, but
has not been very successful in generating much business.
She feels like she is wasting much of her time on leads that
are not good sales opportunities. The leads provided by
her company are not qualified in any way and the training
program she attended focused on cold calling as the basic
prospecting method. Jennifer took a professional selling class
in college and remembered that the chapter on prospecting
emphasized the need to follow the strategic prospecting
process to identify the best sales opportunities. She
found her professional selling textbook, went to the
chapter on prospecting, and decided to create a strategic
prospecting plan.

Q U E S T I O N S
1. What methods should Jennifer use to generate sales

leads beyond those provided by her company?

2. How should Jennifer qualify the leads provided by her
company and those she generates herself? What is the
profile of an ideal prospect?

3. How should Jennifer prioritize her qualified prospects?

4. What information should Jennifer collect to prepare for
sales dialogue with a prospect?

5. How can Jennifer use social selling to improve her
strategic prospecting process?

R O L E P L AY
Situation: Read case and prepare a strategic prospecting
plan.

Characters: Jennifer and her sales manager.

Scene: Jennifer has implemented her strategic prospecting
plan and been very successful. She has been the top seller
in her office for the past two months. Her sales manager
is impressed and he asks her what she is doing to be so
successful. She indicates that her success is due to spending
most of her time with the best sales opportunities. He wants
to talk to her about her strategic prospecting plan and sets
up a meeting.

Location: Sales manager’s office.

Action: Role play the meeting between Jennifer and
her sales manager. The sales manager should ask many
questions and Jennifer will respond to these questions.
The use of social selling has been valuable to Jennifer and
no other salespeople at the Logistics Company are using
social selling, so make sure the role of social selling is
included in the role play.

123CHAPTER 5: Strategic Prospecting and Preparing for Sales Dialogue

5 CHAPTER ROLE PLAYStrategic Prospecting and Preparing for!Sales!Dialogue
P R O S P E C T I N G A N D G A I N I N G P R O S P E C T
I N F O R M AT I O N

B A C K G R O U N D
Preston Adams has just completed the sales training program
for the Office Copier Company (OCC). Adams has been
assigned a territory in Illinois, the United States that includes the
metro areas of Bloomington, Decatur, and Peoria. The company
once commanded a significant market share in these markets.
However, due to a problem with a previous salesperson in
these markets three years ago, OCC has not been directly
working this particular region of central Illinois. Although
there is a large number of their machines still in use across this
territory, it has been a while since a salesperson has called on
any accounts. As with any geographic area, there have likely
been a lot of changes with existing companies moving or even
going out of business and new companies opening up.

C U R R E N T S I T U AT I O N
Adams’s sales manager, Eric Waits, is coming in two weeks
to spend three days in the field with Adams calling on
prospective accounts. Adams is working to develop a list of
leads that he can qualify and then contact in order to set up
the sales calls he will be making with his manager.

R O L E P L AY
Situation: Read the Role Play Prospecting and Gaining

Prospect Information.

Characters: Preston Adams, salesperson for OCC; Jerri
Spencer, office manager with purchasing
responsibilities for Peoria-based McKelvey
and Walters, Attorneys-at-Law.

Scene:
Location—Preston Adams’s office at OCC.

Action—In the course of Adams’s prospecting activities,
Spencer and the McKelvey and Walters law firm have
come up as a strong prospect for OCC’s new line of
professional copiers. McKelvey and Walters operate a
large office in Peoria that occupies most of two floors
in the Planter’s Bank Building and a branch office in
Bloomington. They were previously a customer of OCC,
but the information that Adams has obtained indicates
that they are using an unspecified variety of different
brands of copiers.

Role play the phone conversation between Adams and
Spencer as Adams introduces himself and his company
to Spencer, gathers needed information to better qualify
the prospect, and asks for an appointment for an initial
sales call.

124

6 Planning Sales Dialogues and Presentations

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LEARNING OBJECTIVES
After studying this chapter, you should be able to:

6-1 Explain why it is essential to focus on the customer when
planning sales calls.

6-2 Understand alternative ways of communicating
with prospects and customers through canned sales
presentations, written sales proposals, and organized
sales dialogues and presentations.

6-3 Discuss the nine components in the sales dialogue
template that can be used for planning an organized sales
dialogue or presentation.

6-4 Explain how to write a customer value proposition
statement.

6-5 Link buying motives to benefits of the seller’s offering,
support claims made for benefits, and reinforce verbal
claims made.

6-6 Engage the customer by setting appointments.

College students and professional salespeople have a lot in common:
Performance is largely determined by preparation. The best salespeople
know that their success depends on their ability to properly plan for
customer encounters. According to Mike Schultz of The RAIN Group sales
consulting and training organization, some sales calls are appropriately
called exploratory discussions in which salespeople talk with potential
customers and simply see what develops. Mr. Schultz cautions salespeople
against taking this approach too often, saying that most sales situations call
for far more planning before meeting with prospects. Prior planning allows
salespeople to move through initial discussions in a more productive manner.
Customers appreciate salespeople that do their homework and that they go
the extra mile to ensure maximum customer value with each encounter.

After finishing this chapter, go to PAGE 144 for STUDY TOOLS.

Mark Magnacca, president of global sales training and
enablement firm Allego, reinforces the concept of the
salesperson as a student. He says that salespeople must
research, learn, and apply their knowledge of customers
and industries on an ongoing basis. He notes that most
salespeople deal with a multitude of clients, often across

diverse industries, and that the challenge of keeping up
can grow exponentially over time. Through continu-
ous learning, salespeople become valued information
resources for their customers, and less reliant on guess-
work and mind reading. This leads to deeper, more
enduring customer relationships.

126

With an abundance of information at their finger-
tips, salespeople have no excuse for arriving unprepared
for a sales call. With most business decision makers
starved for time, showing up unprepared is essentially
an insult to the buyer. Top salespeople already know this,
and they would not dare insult their prospects or existing
customers.1

6-1 CUSTOMER!FOCUSED SALES
DIALOGUE PLANNING

As noted in the introduction, buyers are generally well-
informed and have little time to waste. This means that
salespeople must invest a significant amount of time in
planning sales calls on prospective and existing custom-
ers so that they can communicate in a clear, credible,
and interesting fash-
ion. A sales call takes
place when the sales-
person and buyer or
buyers meet in person

In today’s fast-changing, information-rich business
world, top salespeople must be inquisitive and able to assess
their own efforts when it comes to pre-call preparation. For
example, salespeople should ask themselves if they are fully
prepared in terms of what information they will need from
the buyer, what they will want to convey to the buyer, what
support information they will need, and what obstacles they
will need to overcome. Their pre-call preparation must be
guided by a firm objective that specifies the customer ac-
tion sought as a result of the upcoming call.

Sales technology is assisting pre-call planning far be-
yond checking out the prospect’s Web site. While customer
Web-site searches can yield valuable information, other
sources are rapidly growing in popularity. For example,
LinkedIn has become a powerful tool for researching
companies and individuals within those companies.
Prospective buyers often seek advice on potential ven-
dors on LinkedIn, and sales organizations are monitoring
the site as part of pre-call preparation. InsideView.com
offers an online tool that monitors LinkedIn and Twitter
for relevant sales opportunities and prospect informa-
tion. Google (Google.com/finance and Google alerts) and
D & B Hoovers (www.hoovers.com) also offer salespeople
efficient ways for preparing for sales calls.

sales call An in-person meeting
between a salesperson or sales team
and one or more buyers to discuss
business.

127CHAPTER 6: Planning Sales Dialogues and Presentations

receive. Before, during, and after the sale, selling
strategy must focus on customer needs and how the

customer defines value. For additional insights
on sales call planning, see, “Selling in Action:
Planning Sales Dialogues.”

To better understand the process of plan-
ning sales dialogues and presentations, we
will now discuss the three most common sales

communications formats. A planning
template that serves as a guide for
sales dialogues and comprehensive
presentations will then be presented.
The chapter concludes with a dis-
cussion of how to foster better sales
dialogues when attempting to initiate
relationships with customers.

6-2 SALES COMMUNICATIONS
FORMATS

In planning customer encounters, salespeople must de-
cide on a basic format, such as a canned sales presentation,
a written sales proposal, or an organized sales dialogue.
Exhibit! 6.1 summarizes the types of communications

to discuss business. This typically takes
place in the customer’s place of busi-
ness, but it may take place elsewhere,
such as in the seller’s place of business
or at a trade show.

As defined in Chapter 1, sales
dialogue is a business conversation be-
tween buyers and sellers that takes place
over time as salespeople attempt
to initiate, develop, and enhance cus-
tomer relationships. The term sales
conversation is used interchange-
ably with sales dialogue. Some sales
calls involve sales presentations
as part of the dialogue. Sales pre-
sentations are comprehensive com-
munications that convey multiple
points designed to persuade the
prospect or customer to make a
purchase.

Ideally, sales presentations focus on customer
value and only take place after the salesperson has
completed the ADAPT process (introduced in Chap-
ter 4). As a reminder, the ADAPT process means the
salesperson has assessed the customer’s situation; dis-
covered his or her needs, buying processes, and strate-
gic priorities; activated the buyer’s interest in solving a
problem or realizing an opportunity; helped the buyer
project how value can be derived from a purchase; and
then made a transition to the full sales presentation.
Salespeople who attempt to make a sales presentation
before building a foundation through sales dialogue
risk being viewed as noncustomer-oriented and overly
aggressive.

To focus on customer value and implement the
trust-based selling process as discussed in Chapter 1
(see Figure 1.4), salespeople must have a basic under-
standing of the value they and their companies can

deliver to customers.
Further, they must
recognize that what
constitutes value will
typically vary from one
customer to the next.
Finally, as the process
continues and relation-
ships are established
with customers, sales-
people must work con-
tinually to increase the
value their customers

Yah
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The importance of focusing
on the customer when
planning sales dialogues
is reflected in the popular
trade book The Collaborative
Sale by Keith M. Eades and
Timothy T. Sullivan.

sales dialogue Business
conversations between buyers and
sellers that occur as salespeople
attempt to initiate, develop, and
enhance customer relationships. Sales
dialogue should be customer-focused
and have a clear purpose.

sales presentations
Comprehensive communications that
convey multiple points designed to
persuade the customer to make a
purchase.

Exhibit 6.1

Types of Sales Communications
Canned Presentations

! Include scripted sales calls, memorized
presentations, and automated presentations

! Can be complete and logically structured
! Do not vary from buyer to buyer; should be tested

for e!ectiveness
Written Sales Proposals

! Proposal is a complete self-contained sales presentation
! Written proposals often accompanied by sales

calls before and after the proposal is submitted
! Thorough customer assessment should take

place before customized proposal is written
Organized Sales Dialogues and Presentations

! Address individual customer and di!erent selling
situations

! Allow “exibility to adapt to buyer feedback
! Most frequently used format by sales professionals

128

sales professionals use. Each of these alternatives varies
greatly in terms of how much customization and customer
interaction is involved. A salesperson might use one or
more of these formats with a particular customer. Each
format has unique advantages and disadvantages. To be
successful, these communications must be credible and
clear. In addition, the salesperson must communicate in
the right environment at an appropriate time to maximize
the probability of a successful outcome.

For any of the three communications types, sales-
people must plan to be as specific as possible in develop-
ing their sales message. For example, it is better to tell
a prospect “This electric motor will produce 4,800 RPM
and requires only one hour of maintenance per week”
than to say “This motor will really put out the work with
only minimum maintenance.”

6-2a Canned Sales Presentations
Canned sales presentations include scripted
sales calls, memorized presentations, and automated

presentations. The telemarketing industry relies heav-
ily on scripted sales calls, and memorized presentations
are common in trade show product demonstrations.
Automated presentations often incorporate computer
graphics, video, or slides to present the information to
the prospect.

When done right, canned presentations are com-
plete and logically structured. Objections and questions
can be anticipated in advance, and appropriate responses
can be formulated as part of the presentation. The sales
message varies little from customer to customer, except
that some sales scripts have “branches” or different sales-
person responses based on how the customer responds.
Canned presentations can be used by relatively inexperi-
enced salespeople, and
using this format might
boost the confidence
of some salespeople.
Canned sales presenta-
tions should be tested

Selling in Action
Planning Sales Dialogues
Gary Walker is executive vice-president of Channel
Sales and Operations for CustomerCentricSelling, a
global sales training firm. He urges salespeople to
maximize their time with prospects and customers
through strategic sales call planning. According to
Mr. Walker, planning allows salespeople to focus on
critical issues with the prospect and align with their key
priorities. He observes that most prospects are looking
for help in solving a problem or realizing a significant
opportunity. To add maximum value, salespeople must
be able to converse about prospects’ goals, problems,
and issues—not just present the features and benefits
of their products. By strategically planning sales
encounters, salespeople can convincingly demonstrate
their situational fluency, or the ability to tailor sales
conversations in terms that resonate with prospects.

Mr. Walker says that customers want to do business with
salespeople who empower them. To accomplish that,
salespeople must be prepared to converse about what
the prospect is trying to achieve, what is preventing
them from achieving it, and how the sales offering can
help deliver the desired outcome. Mr. Walker says that
pre-call planning shows the prospects that you respect
their time, as time is not wasted with questions that can
be answered through pre-call research. Planning also
prevents shortcuts and carelessness. Sales call planning
can become a reliable, repeatable process tailored for
each individual prospect. It is easy for prospects to see
how well-prepared (or not) salespeople are. As a result,
Mr. Walker says, “I’d like to ask you to please prepare to
win. Don’t leave it to chance. Make pre-call preparation
part of your sales process.”

Source: Gary Walker, “Sales Tips: 10 Reasons Why Pre-Call Planning is Important,” from the Custo-
merCentricSelling Sales Training Blog at http://blog.customercentricselling.com, March 14, 2017.

canned sales presentations
Sales presentations that include
scripted sales calls, memorized
presentations, and automated
presentations.

129CHAPTER 6: Planning Sales Dialogues and Presentations

for effectiveness, ideally with real customers, before they
are implemented with the entire salesforce.

Canned sales presentations make an implicit assump-
tion that customer needs and buying motives are essentially
homogeneous. Therefore, canned
presentations fail to capitalize on a
key advantage of personal selling—
the ability to adapt to different
types of customers and various sell-
ing situations. The salesperson can
only assume the buyer’s needs and
must hope that a lively presenta-
tion of product benefits will cause
the prospect to buy. The canned presentation can be ef-
fective, but is not appropriate for many business-to-busi-
ness situations—simply because customer opportunity to
interact is minimized. During a memorized presentation,
the salesperson talks 80 to 90 percent of the time, only oc-
casionally allowing the prospect to express his or her feel-
ings, concerns, or opinions. Canned presentations do not
handle interruptions well, may be awkward to use with a
broad product line, and may alienate buyers who want to
participate in the interaction.

Despite its limitations, the canned sales presenta-
tion can be effective in some situations. If the product
line is narrow and the sales force is relatively inexperi-
enced, the canned presentation might be suitable. Also,
many salespeople find it effective to use instead of a sales
dialogue to introduce their company, to demonstrate the
product, or for some other limited purpose.

6-2b Written Sales Proposals
The second basic type of sales communication is the
written sales proposal. The proposal is a complete
self-contained sales presentation, but it is often accom-
panied by sales dialogues before or after the proposal
is delivered. In some cases, the customer may receive
a proposal and then request that the salesperson make
a sales call to further explain the proposal and provide
answers to questions. Alternatively, preliminary sales
dialogues may lead to a sales proposal. In any event, the
sales proposal should be prepared after the salesperson
has made a thorough assessment of the buyer’s situation
as it relates to the seller’s offering.

The sales proposal
has long been associ-
ated with important,
high-dollar-volume sales
transactions. It is fre-
quently used in compet-
itive bidding situations

and in situations involving the selection of a new supplier
by the prospect. One advantage of the proposal is that the
written word is usually viewed as being more credible than
the spoken word. Written proposals are subject to careful

scrutiny with few time constraints,
and specialists in the buying firm
often analyze various sections of the
proposal.

Sales proposal content is sim-
ilar to other comprehensive sales
presentations, focusing on customer
needs and related benefits the seller
offers. In addition, technical infor-

mation, pricing data, and perhaps a timetable are included.
Most proposals provide a triggering mechanism such as a
proposed contract to confirm the sale, and some specify
follow-up action to be taken if the proposal is satisfactory.

With multimedia sales presentations becoming
more routine, it is natural to think that written sales pro-
posals would be declining in importance. In fact, the op-
posite is true. With the widespread use of multimedia,
the standards for all sales communication continue to
rise. Buyers expect clear informative sales messages, and
they are less tolerant of sloppy communication. Because
everyone knows that word processing programs have
subroutines to check spelling and grammar, for example,
mistakes are less acceptable than ever.

Because written communication provides a per-
manent record of claims and intentions, salespeople
should be careful not to overpromise, but still main-
tain a positive and supportive tone. No buyer wants to
read a proposal full of legal disclaimers and warnings,
yet such information may be a necessary ingredient in

Buyers expect clear,
informative sales messages,
and they are less tolerant
of sloppy communication.

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A written sales proposal should follow a
strategic sales process.

written sales proposals
A complete self-contained sales
presentation on paper, often
accompanied by other verbal sales
presentations before or after the
proposal is delivered.

130

certain written communication. As with all communica-
tion, salespeople should try to give buyers the informa-
tion they need to make informed decisions.

6-2c Writing Effective Proposals
Whether the proposal is in response to a buyer’s request
for proposals (RFP) or generated to complement and
strengthen a sales presentation, it is essential that the
proposal be correctly written and convey the required
information in an attractive manner. Professionals who
specialize in the creation of sales proposals give these
reasons why proposals might fail:2

1. Customer does not know the seller.

2. Proposal does not follow the customer-specified
format.

3. Executive summary does not address customer
needs.

4. Proposal uses the seller’s (not the customer’s) com-
pany jargon, which forces readers to interpret the
message.

5. Writing is flat, technical, and without passion.
A technical data dump is not effective.

6. Generic material does not match the targeted
prospect, indicating a lack of customer-focused
consultative selling.

7. Proposal is not convincing, and does not substantiate
claims made.

8. Proposal has poor layout and glaring grammatical
errors.

9. Proposal does not address key decision criteria.
Don’t assume what is important to the buyer, ask!

10. Proposal is vague, lacking specifics in key areas
such as pricing and buyer/seller roles and
responsibilities.

Clearly, developing an effective proposal takes time
and effort. When beginning the proposal-writing pro-
cess, it is important for the salesperson to adopt the
right mind-set with a key thought of, “Okay, this will take
some time to get the details down, but it will be worth it.”
To reinforce this mind-set, consider the advice given in
Exhibit 6.2: Tips for Creating Effective Sales Proposals.3

Breaking the proposal down into its primary and
distinct parts can simplify the process of writing an ef-
fective proposal. Five parts common to most proposals
are an executive summary, customer needs and proposed
solution, seller profile, pricing and sales agreement, and
an implementation section with a timetable.

Exhibit 6.2

Tips for Creating Effective
Sales Proposals

! Focus on your prospect. Think like the buyer. If you
were the buyer, what would you want to know
before making a decision?

! Present a compelling, relevant case for your o!ering.
! Get to the point and make your proposal as

concise as possible. Bigger is not better.
! Quantify the value you can o!er so prospects can

#nancially justify their purchase decisions.
! Present important details and make the entire

proposal clear. Transparency builds trust.
! Include testimonials and endorsements when

appropriate.
! Write the proposal in the customer’s language.

Avoid seller jargon.
! Realize that most proposals serve an educational

purpose. If customers do not understand your
proposal, they will reject it.

! Clearly communicate next steps and make it
easy for the customer to take action, including
accepting the proposal.

! Be sure communications lines are open in case
the customer has questions or wants additional
information.

! Allow ample time for proofreading. Sloppy
proposals are completely unacceptable.

EXECUTIVE SUMMARY This summary precedes
the full proposal and serves two critical functions.
First, it should succinctly and clearly demonstrate the
salesperson’s understanding of the customer’s needs
and the relevance of the proposed solution. An effec-
tive summary will spell out the customer’s problems,
the nature of the proposed solution, and the result-
ing bene”ts to the customer. A second function of the
summary is to build a desire to read the full proposal.
This is important as many key members of the orga-
nization often read little more than the information
provided in the summary. A question new salespeople
commonly ask refers to the length of the! executive
summary. A good rule of thumb is that an executive
summary should be limited to two typewritten pages—
especially if the main body of the report is fewer than
50 pages in length.

131CHAPTER 6: Planning Sales Dialogues and Presentations

CUSTOMER NEEDS AND PROPOSED SOLUTION
This section is typically composed of two primary parts.
First, the situation analysis should concisely explain the
salesperson’s understanding of the customer’s situation,
problems, and needs. Second, the recommended solu-
tion is presented and supported with illustrations and
evidence on how the proposed solution uniquely ad-
dresses the buyer’s problems and needs. The emphasis
in this section should be on the bene”ts resulting from
the solution and not on the product or service being
sold. It is important that these bene”ts be described
from the perspective of the customer. Proprietary in-
formation required in the proposal can be protected
in a number of ways. The most common method is to
place a con”dential notice on the cover. Many technol-
ogy companies ask the prospect to sign a nondisclosure
agreement that is part of the overall document, and in
some instances, the selling organization will even copy-
right the proposal.

SELLER PROFILE This section contains information
that the customer wants to know about the selling com-
pany. It offers a succinct overview and background of
the “rm, but the emphasis should be on the company’s
capabilities. Case histories of customers for whom the
company solved similar problems with similar solutions
have proved to be an effective method to document and
illustrate organizational capabilities and past successes.

PRICING AND SALES AGREEMENT The previous
sections are designed to build the customer value of the
proposed solution. Once this value has been established,
the proposal should “ask for the order” by presenting
pricing information and delivery options. This informa-
tion is often presented in the form of a sales agreement
for the buyer to sign off on and complete.

IMPLEMENTATION AND TIMETABLE The purpose
of this section is to make it as easy as possible for the buyer

to make a positive pur-
chase decision. In ef-
fect, this section should
say, “If you like the
proposal and want to
act on it, this is what
you do.” There may be
a contract to sign, an
order form to “ll out,
or instructions regard-
ing who to call to place
an order or request ad-
ditional information. A
timetable that details

a schedule of key implementation events should also be
included.

6-2d Evaluating Proposals Before
Submission
In the customer’s eyes, the standards for written sales
proposals are high. Poor spelling and grammatical
mistakes send a negative message that the seller has
little regard for attention to detail. The quality of a
salesperson’s written documents is a surrogate for that
salesperson’s competence and ability as well as the ca-
pabilities and overall quality of the organization. If the
proposal does not properly interpret the buyer’s needs
or fails to make a compelling case to justify the pur-
chase, the odds of success are low. Although a well-
written proposal is no guarantee of making the sale, a
poorly written proposal will certainly reduce the prob-
ability of success.

Because the stakes are usually high when written
sales proposals are used, it is a best practice to evalu-
ate proposals carefully before they are submitted to the
customer. In fact, it is a good idea to build the evaluative
criteria into the proposal writing process early on, then
use the criteria shown in Exhibit 6.34 as a final check
before submitting a sales proposal.

6-2e Organized Sales Dialogues
In most situations, the process of converting a prospect
into a customer will take several sales conversations
over multiple encounters. These conversations consti-
tute an organized sales dialogue. For example,
salespeople often speak by telephone with a qualified
prospect to get an appointment for a later meeting.
The second conversation with the customer typically
focuses on fact finding and parallels the ADAPT pro-
cess. The next step would come after the salesperson
has developed a tailored solution for the customer. The
salesperson may make a comprehensive sales presen-
tation, but in this case, it is designed for dialogue with
the customer throughout. To reiterate, this is not a one-
way presentation or monologue—it is a sales dialogue
with a high level of customer involvement. This type
of comprehensive presentation is commonly called an
organized sales presentation.

Organized sales dialogues may precede or follow
other sales communications such as a written sales
proposal. Sales dialogues are much more than mere
conversation—they are a chance for the salesperson
to seek information and/or action from the prospect

organized sales dialogue
Also known as the organized sales
presentation. Unlike a canned sales
presentation, an organized sales dialogue
has a high level of customer involvement.

organized sales presentation
A sales presentation that allows a
salesperson to implement appropriate
sales strategies and tactics based on
customer research or information
gathered during previous sales calls.
Organized sales presentations feature a
two-way dialogue with a high level of
customer involvement.

132

Exhibit 6.3

Evaluating Sales Proposals
It is a best practice to evaluate sales proposals before they are submitted to the customer. Five important dimen-
sions for evaluating proposals are reliability, assurance, tangibles, empathy, and responsiveness.

Reliability: re”ects the seller’s ability to identify creative and practical business solutions that will help the buyer
achieve their goals and objectives.
Does the Proposal:

1. Present a solid business solution that meets the buyer’s expectations?
2. E!ectively describe the seller’s o!ering and clearly de#ne how it will work?
3. Describe all of the seller’s fees, prices, and expenses the buyer will incur?
4. Present seller capabilities and convert them into buyer-speci#c #nancial and non#nancial bene#ts?

Assurance: increases the buyer’s trust and con#dence in the seller’s ability to deliver successful results.
Does the Proposal:

1. Assure the buyer that the seller has the experience and capability required to ful#ll the contract?
2. Present the seller’s roles, responsibilities, and business practices to ful#ll the contract?
3. Provide a schedule with clear speci#cation of major work activities?
4. Provide customer references that are easy to verify and that demonstrate a solid track record?

Tangibles: enhances and di!erentiates the communication of the seller’s message and invites readership by its
content, structure, and overall appearance.
Does the Proposal:

1. Focus on the customer, provide a logical “ow, and have high standards for mechanics and readability?
2. Convert the intangibles into tangibles such as schedules, diagrams, graphics, or charts?
3. E!ectively use appendices to control length and provide more detail for interested readers?
4. Contain an Executive Summary that condenses the entire proposal into no more than 2–4 pages?

Empathy: re”ects the seller’s thorough understanding of the buyer’s unique business environment, operations,
organization, improvement opportunities, needs, and objectives.
Does the Proposal:

1. Re”ect a thorough understanding of the buyer’s business operations?
2. Clearly de#ne the buyer’s critical business issues or improvement opportunities?
3. Clearly de#ne the buyer’s needs for addressing critical issues or improvement opportunities?
4. Propose a product or service that satis#es the buyer’s time frame and unique business needs?

Responsiveness: demonstrates the seller’s willingness to work closely with the buyer to understand their unique
situation, present viable business solutions, and ensure achievement of promised results.
Does the Proposal:

1. Demonstrate the willingness to ask questions, gather information, and gain a thorough knowledge of the
buyer’s unique business issues or improvement opportunities?

2. Present a custom o!ering tailored to the customer’s unique situation?
3. O!er a review between buyer and seller to answer questions and clarify issues?
4. Match the seller’s consultative selling process?

133CHAPTER 6: Planning Sales Dialogues and Presentations

and to explore the business reasons the prospect has
for continuing the dialogue with the salesperson (e.g.,
solving a problem or realizing
an opportunity). Feedback from
the prospect is encouraged, and
therefore this format is less likely
to offend a participation-prone
buyer.

When the situation calls for
a full sales presentation, the or-
ganized sales presentation is usu-
ally favored over both the canned
presentation and the written proposal. Such an ap-
proach allows much-needed flexibility to adapt to
buyer feedback and changing circumstances during
the presentation. Organized presentations may also
include some canned portions. For example, a sales-
person for Caterpillar might show a video to illustrate
the earth-moving capabilities of a bulldozer as one
segment of an organized presentation. Due to its flex-
ibility during the sales call and its ability to address
various sales situations, the organized presentation is
the most frequently used format for professional sales
presentations.

One reality of this presentation format is that it
requires a knowledgeable salesperson who can react
to questions and objections from the prospect. Fur-
ther, this format may extend the time horizon before
a purchase decision is reached, and it is vulnerable to
diversionary delay tactics by the prospect. Presum-
ably, those who make these arguments think that a
canned presentation forces a purchase decision in a
more expedient fashion. Overall, however, most agree

that the organized presentation is ideal for most sales
situations. Its flexibility allows a full exploration of cus-
tomer needs and appropriate adaptive behavior by the
salesperson. By fully participating in the dialogue, both
buyer and seller have an opportunity to establish a mu-
tually beneficial relationship.

The trust-based relational selling presentation,
often combining elements of need-satisfaction and
consultative selling, is a popular form of an organized
presentation. The first stage of the process, the need
development stage, is devoted to a discussion of the
buyer’s needs. As seen in Figure 6.1, during this phase
the buyer should be talking 60 to 70 percent of the
time. The salesperson accomplishes this by using the
first four stages of the ADAPT process.

The second stage of the process (need awareness) is
to verify what the buyer thinks his or her needs are and
to make the buyer aware of potential needs that might
exist. For instance, fast-food restaurants were generally
slow to recognize the need to offer more low-fat and

low-carbohydrate menu items
until their sales volume suffered.
Others, such as Subway, gained a
competitive advantage by work-
ing with their suppliers to for-
mulate a significant number of
menu alternatives for the health-
conscious consumer.

A logical conclusion of
the needs awareness stage is
to have the prospects confirm

their needs. It is a positive step when the salesperson
discovers the prospect’s needs, but far more effective
when the prospect confirms the importance of those
needs. The need-awareness stage is a good time to re-
state the prospect’s needs and to clarify exactly what
the prospect’s needs are.

During the last stage of the presentations, the need-
fulfillment stage, the salesperson must show how his or
her product and its benefits will meet the needs of the
buyer. As seen in Figure 6.1, the salesperson during the
need-fulfillment stage will do more of the talking by
indicating what specific product will meet the buyer’s
needs. The salesperson, by being a good listener early
in the process, will now have a better chance to gain
the buyer’s interest and trust by talking about specific
benefits the buyer has confirmed as being important.

To engage in effective sales dialogue, salespeople
should try to think like the customer and anticipate
key issues that should be addressed. To reiterate a point
made earlier in this chapter, researching the prospect or

St
oc

k-
A

ss
o/

Sh
ut

te
rs

to
ck

.c
om

Before making a comprehensive sales
presentation, a salesperson will have
several conversations with a potential
customer.

By fully participating in the
dialogue, both buyer and
seller have an opportunity

to establish a mutually
beneficial relationship.

134

THE TRUST!BASED SELLING PROCESS: A NEED!SATISFACTION CONSULTATIVE MODELFIG. 6.1

Percent of Time
the Salesperson

“Talks/Participates”
As

se
ssm

en
t

A D PA
T

Di
sc

ov
er

Ac
tiv

ati
on

Pr
oje

cti
on

Tra
ns

itio
n

Se
lec

t F
ea

tu
re

Ex
pla

in
Ad

va
nt

ag
e

Le
ad

to
Be

ne
fit

Le
t C

us
to

m
er

Ta
lk

Need Development Need Aw
areness

Percent of Time
Prospect

“Talks/Participates” Need Fulfillm
ent

Re
la

ti
ve

P
ar

ti
ci

pa
ti

on
L

ev
el

100%

Information
Gathering

Presentation Handling
Resistance

Earn
Commitment

Follow-Up

At some points in the two-way sales dialogue, the customer will do more talking; at other points, the salesperson will do
more of the talking.

customer is essential in preparing for effective dialogue
during organized sales presentations. For more discus-
sion on preparing for sales calls, see “From the Classroom
to the Field: Preparing for Sales Calls.”

6-3 SALES DIALOGUE TEMPLATE
Sales dialogues are not scripted in advance as canned sales
presentations are; however, salespeople should think
ahead about what questions and statements to include
in the conversation and be prepared to hold up their end
of the conversation with an appropriate amount of de-
tail. A sales dialogue template (see Exhibit 6.4) is a
useful tool to ensure that all pertinent content areas are
covered with each prospect. The template is flexible and
can be used either to plan a comprehensive organized
sales presentation or to guide sales dialogues of a more
narrow scope. The template is not meant to be a script
for a sales encounter, but rather an aid in planning and
assembling the information required of the salesperson.

By addressing the issues noted in the template,
salespeople can facilitate trust-building by demonstrat-
ing their competence and expertise, customer orienta-
tion, candor, dependability, and compatibility. It is true
that trust is built through behavior, not just by planning
and having good intentions. However, salespeople who
are aware of what it takes to earn the customer’s trust in
the planning stages have a better chance of earning that
trust in subsequent encounters with the customer. The
sales dialogue template is organized into nine sections,
each of which is discussed individually.

6-3a Section 1: Prospect Information
This section is used to record specific information on the
prospect such as the company name, key decision mak-
er’s name and job title,
and the type of busi-
ness. In most business-
to-business situations,
it is critical to know
who else is involved in

sales dialogue template
A flexible planning tool that assists the
salesperson in assembling pertinent
information to be covered with the
prospect.

135CHAPTER 6: Planning Sales Dialogues and Presentations

Jordan Lynch, a graduate of Colorado State University,
is responsible for strategic business development for
Ultimate Software in Denver, Colorado. Ultimate Soft-
ware helps clients around the world in recruiting and
onboarding employees, managing employee benefits
and compensation, and continuous performance man-
agement and development. He learned the importance
of preparation for sales calls while he was interviewing
for sales positions during his senior year in college:

When I was a senior in college, I took a professional
selling course and competed in the National
Collegiate Sales Competition. The more I learned
about sales, the more I wanted to pursue a career in
sales and sales management. As I began interviewing, I
quickly realized that I needed to apply some of the
lessons I had learned about being prepared for sales
calls. After all, a job interview is just like a major sales
call. Both parties are trying to determine if there is a

mutually bene#cial #t. For every interview that I had, I
researched the company so that I clearly understood
what they were looking for and how I could match
up with their needs. I thought of myself as a value-
add product that employers needed. I knew that
employers would have some tough questions and
I tried to anticipate those questions and formulate
my responses. I wanted to be sure the employers
understood what I could do for them, so I developed
a written plan for each employer that laid how I
would operate a sales territory. I also tried to get a
commitment at the end of every interview. I wanted
the o!er, and I also wanted to show employers
that I was enthusiastic about working with them.
I apply the same principles today to build business
with Ultimate Software. I prepare for a back-and-
forth dialogue and try to help customers make wise
business decisions. To maximize your opportunities,
think like your customer and do your homework!

From the Classroom
to the Field
Preparing for Sales Calls

the buying decision and what role he or she plays, such as
gatekeeper, user, or influencer. (Refer to Chapter 3 if you
need to review the buying center concept.) It is also im-
portant that the salesperson make sure that all of the key
players are receiving the appropriate information and get-
ting the proper attention they deserve. A mistake salespeo-
ple often make is not identifying all the buying influencers.

6-3b Section 2: Customer Value
Proposition
In this section, the salesperson develops a preliminary
customer value proposition, which is a statement

of how the sales offer-
ing will add value to
the prospect’s business
by meeting a need or
providing an opportu-
nity. Essentially, the

customer value proposition summarizes the legitimate
business reason for making the sales call by answering
the prospect’s question, “Why should I spend my time
with you?” A good customer value proposition clearly
states why the customer will be better off by doing busi-
ness with the salesperson and his or her firm, but at this
point does not try to list all of the reasons.5

At the planning stage, the customer value prop-
osition is preliminary. The salesperson has good rea-
son to believe that customer value can be enhanced
by delivering on the contents of the proposition, but
the true value of the proposition will be accepted or
rejected by the customer as the sales process moves
along. It is during this sales dialogue process that the
actual customer value to be delivered will be refined
and modified. This section of the template provides
a point of departure for planning purposes and as-
sumes that the value proposition is likely to be mod-
ified prior to the purchase decision. In writing the

customer value proposition
A statement of how the sales offering
will add value to the prospect’s
business by meeting a need or
providing an opportunity.

136

Exhibit 6.4

Sales Dialogue Template
1. Prospect Information
A. Company and key person information

Company Name:
Prospect’s Name: Key Decision Maker:

Type of Business:
Job Title:

B. Other in!uences on the purchase decision: For all key people involved in the buying process, provide names,
job titles, departments, and roles in the purchase decision.

Name(s)/Job Title Departments Role in Purchase Decision

Add other people as necessary

2. Customer Value Proposition: A brief statement of how you will add value to the prospect’s business by meet-
ing a need or providing an opportunity. Include a brief description of the product or service:

3. Sales Call Objective (must require customer action such as making a purchase, supplying critical information, etc.)

4. Linking Buying Motives, Bene!ts, Support Information, and Reinforcement Methods: This section should
address the buying motives of all persons who will be involved in the upcoming sales call.

A. Buying Motives: What is most
important to the prospect(s) in
making a purchase decision?
Rational motives include economic
issues such as quality, cost, service
capabilities, and the strategic pri-
orities of the prospect’s company.
Emotional motives include fear,
status, and ego-related feelings. List
all relevant buying motives in order
of importance.

B. Specific Benefits Matched to
Buying Motives: Bene”ts to be
stressed are arranged in priority
order (sequence to be followed
unless prospect feedback dur-
ing the presentation indicates
an alternative sequence). Each
bene”t should correspond to
one or more buying motives.

C. Information
needed to sup-
port claims for
each benefit.

D. Where appropri-
ate, methods for
reinforcing verbal
content (AV, collater-
al material, illustra-
tions, testimonials,
etc.).

Continue listing all relevant buy-
ing motives and information in
columns B, C, and D.

5. Current Suppliers (if applicable) and Other Key Competitors.

Competitor Strengths Weakness

Complete for all key competitors

(Continued )

137CHAPTER 6: Planning Sales Dialogues and Presentations

Exhibit 6.4

Sales Dialogue Template (Continued)
6. Beginning the Sales Dialogue.

Plans for the first few minutes of the sales call:

Introduction, thanks, agenda agreement. Then begin ADAPT as appropriate or transition into other sales
dialogue or presentation:

Assessment

Discovery

Activation

Projection

Transition to Presentation
Note: The ADAPT process might take place over several sales conversations during multiple sales calls. In
other cases, it might be concluded in a single sales call, then immediately followed by a sales presentation.

7. Anticipated Prospect Questions and Objections, with Planned Responses.

Questions and Objections Responses

Include a comprehensive set of questions and objections with your corresponding responses.

8. Earn Prospect Commitment.

A preliminary plan for how the prospect will be asked for a commitment related to the sales call objective.

9. Building Value through Follow-up Action.

Statement of follow-up action needed to ensure that the buyer–seller relationship moves in a positive direction.

preliminary customer value proposition, salespeople
should attempt to:

1. Determine the primary business reasons that
customers would use your offering. Key reasons
include revenue generation, cost savings, customer
retention, building market share, productivity
gains, profitability, legal and safety compliance, and
return on investment.

2. Keep the statement fairly simple so that the direc-
tion for upcoming sales dialogues is clear.

3. Choose the key benefit(s) likely to be most important
to the specific customer who is the audience for this

particular dialogue or presentation. (At this point,
it is not necessary to list all of the benefits of their
offerings.)

4. Make the value proposition as specific as pos-
sible on tangible outcomes (e.g., improvements to
revenues, cost containment or reduction, market
share, process speed, and efficiency) and/or the
enhancement of the customer’s strategic priority.

5. Reflect product or service dimensions that add
value, whether or not the customer pays for them.
For example, some companies offer delivery, instal-
lation, and training along with the purchase of their

138

products. Added value may also accrue from what
the seller’s sales team provides (e.g., work in the
field with a distributor’s salespeople or certification
training for the buyer’s technicians).

6. Promise only what can be consistently delivered.
Strictly speaking, a customer value proposition in
the planning stage is not a guarantee, it is a belief
based on the salesperson’s knowledge and best
judgment. As the sales process moves along, ap-
propriate guarantees can be made.

7. Use action verbs that show a departure from the
status quo such as increase, improve, cut, save, ac-
celerate, enhance, grow, eliminate, minimize, and
maximize.

8. Be as specific as possible about key metrics,
including time frame, financials, and percentage
targets.

9. Practice the verbal communication of the customer
value proposition with people not familiar with
your business. Do they understand the proposition
and can they repeat it? If not, rework the proposi-
tion until it is easily recalled.

Using these points as a guide, this is an example of a
customer value proposition that could provide clear di-
rection for planning an upcoming sales presentation or a
series of sales dialogues.

“ABC Company can improve its market share
by a minimum of four percentage points in a
one-year period in its San Francisco and Dallas
markets by implementing our customer satisfac-
tion and retention training for its customer ser-
vice personnel.”

By contrast, here is an example of a poorly con-
structed customer value proposition.

“By adopting our customer satisfaction and re-
tention programs, ABC Company will see a dra-
matic increase in its market share.”

This second proposition opens the salesperson to a
potential barrage of questions:

Dramatic increase in market share? What’s
dramatic?

“We operate in 22 markets. Are you saying that
we will increase market shares in all 22 markets?”

What do you mean by programs? Are you refer-
ring to training programs?

In the planning stages, salespeople may or may not
be fully aware of the prospect’s needs and priorities—
and, until they are aware of these needs and priorities,
the sales dialogue should focus on the first two stages
of the ADAPT process: assessing the prospect’s situation
and discovering his or her needs. Unless these stages are
completed, the customer value proposition will not con-
tain enough detail to be useful. Done correctly, a cus-
tomer value proposition will portray the seller’s company
in a favorable light and give the customer reasonable ex-
pectations of the selling company. As illustrated in “An
Ethical Dilemma,” this sometimes requires caution in
communicating the customer value proposition.

6-3c Section 3: Sales Call Objective
Section 3 asks the salesperson to determine the objec-
tive for his or her sales call. Salespeople must have an
objective for each sales call. Basically, sales call objec-
tives state what salespeople want customers to do as a
result of the sales call. The objectives should be spe-
cific enough to know whether or not they have been
accomplished at the conclusion of the call, and they
should require customer actions such as placing an or-
der, agreeing to participate in a test market, or supply-
ing specific information useful to the salesperson.

Many salespeople think that there is only one objec-
tive: to get an order. Other legitimate sales call objectives do
exist. For instance, during an introductory call the objec-
tive may be simply to introduce the salesperson and his or
her company and to gather information on the buyer’s
needs. Eventually, the major sales call objective will be
to earn a commitment from the customer by making a
sale, but this is not always the only objective. At the very
least, the objective of any sales call should be to advance
the process toward an order.

6-3d Section 4: Linking Buying
Motives, Benefits, Support
Information, and Other
Reinforcement Methods
In Section 4 of the planning template, the prospect’s
buying motives are linked to specific benefits offered.
For each benefit identified, the salesperson will also as-
semble the information needed to support the claims
to be made in the upcoming dialogue or presentation.
In some cases, verbal claims must be reinforced with
audio-visual portrayal, illustrations, printed collateral
material, or testimonials from satisfied customers, as
appropriate to the situation.

139CHAPTER 6: Planning Sales Dialogues and Presentations

Buying motives
refers to the most im-
portant factors from
the customer’s per-
spective in making
a purchase decision.
In other words, what
will motivate the
buyer to make a pur-
chase? Buying mo-
tives may be rational
or emotional, or a
combination of both
rational and emotional.
Rational buying
motives typically re-
late to the econom-
ics of the situation,
including cost, prof-
itability, quality, ser-
vices offered, and the
total value of the sell-
er’s offering the cus-

tomer perceives. Emotional buying motives such
as fear, the need for security, the need for status,
or the need to be liked, are sometimes difficult for
salespeople to uncover, as prospects are generally
less likely to share such motives with salespeople.
In business-to-business selling, rational motives are
typically the most important buying motives, but
salespeople should not ignore emotional motives if
they are known to exist.

In linking benefits to buying motives, benefits
should be distinguished from features. Features are
factual statements about the characteristics of a prod-
uct or service, such as, “This is the lightest electrical
motor in its performance category.” Benefits describe
the added value for the customer—the favorable out-
come derived from a feature. For example, “The light-
weight motor supports your mobile repair service
strategy in that it is very portable. The ease of use al-
lows your technicians to complete more service calls
per day, thus increasing impact on your profitability.”
To make such a claim about increasing profitability, the
salesperson would need to gather specific information
to support it. For example, in this case the claim that

Corey Morgan is a sales representative for IDE, a sup-
plier of production equipment that is sold to packaged
goods manufacturers. IDE specializes in replacing older
equipment with more efficient equipment. Although
the IDE products are expensive, the increased efficien-
cies of their equipment can provide cost savings to cus-
tomers in the long run. Corey has been thinking about
a recent training session on pre-call preparation plan-
ning. The trainer told the sales representatives: “Use the
template we provide to be sure you have included
all of the relevant information in planning your sales
calls. Don’t develop a script from the template. Make
it your own and add your own ways of doing things
to make it more effective.” Corey knew that customer
value propositions should be as specific as possible
and should not over promise on what could be deliv-
ered to the customer. Corey also knew that customer

cost-savings in the range of 5 to 15 percent were pos-
sible, but that actual savings would depend on the
situation. Corey was strongly considering stating the
15 percent savings figure early in sales dialogues as an
average savings, which would make a lot more pros-
pects willing to listen to a full sales presentation.

What should Corey do?
(A) Be conservative and continue to state the average

savings as 5 to 15 percent. Be prepared to show the
customer how to maximize savings.

(B) Go with the 15 percent figure and back it up with
testimonials from customers that had achieved
15$percent savings.

(C) Early in the sales dialogue, learn more about the
customer’s situation and then estimate the poten-
tial cost savings for the customer.

An Ethical Dilemma

buying motive A need-activated
drive to search for and acquire a
solution to resolve a need or problem;
the most important factors from the
customer’s perspective in making a
purchase decision.

rational buying motives
Typically relate to the economics of the
situation, including cost, profitability,
quality, services offered, and the
total value of the seller’s offering as
perceived by the customer.

emotional buying motives
Includes motives such as security,
status, and need to be liked;
sometimes difficult for salespeople
to uncover these motives.

features A quality or characteristic
of a product or service that is designed
to provide value to a buyer.

benefits The added value or
favorable outcome derived from
features of the product or service the
seller offers.

140

technicians can complete more service calls per day
because the motor is easy to use might call for com-
petitive comparisons and actual usage data, and/or a
demonstration.

Some situations may lead the salesperson to decide
that a product demonstration and testimonials from sat-
isfied customers will reinforce the spoken word. In oth-
er cases, third-party research studies or articles in trade
publications might be used to reinforce oral claims.
Another powerful option is material developed by the
salesperson, such as a breakeven chart showing how
quickly the customer can recoup the investment in the
new product or service. A note of caution: It is always a
good idea to use these types of sales support materials
sparingly—prospects do not react positively to informa-
tion overload. Chapter 7 discusses in greater detail sales
tools and how they can enhance the sales effort.

6-3e Section 5: Competitive Situation
Understanding the competitive situation is essential in
planning sales dialogues and presentations. Because buy-
ers make competitive comparisons in their decision pro-
cesses, salespeople should be prepared for it. This section
of the planning template asks the salesperson to identify
key competitors and to specify their strengths and weak-
nesses. By knowing their own product’s strengths and
weaknesses as well as those of their competitors, salespeo-
ple are better equipped to articulate customer value rela-
tive to their competitors. This competitive positioning is
important, as most major purchase decisions are made in
a highly competitive business environment. If the prospect
is already buying a similar product, knowledge about the
current supplier can give the salesperson critical insight
into which buying motives and product attributes are likely
to be affecting the buyer’s decisions.

6-3f Section 6: Beginning
the Sales Dialogue
Section 6 addresses the critical first few minutes of the
sales call. During this period, salespeople will greet the
prospect and introduce themselves, if necessary.
There is typically some brief polite conversation
between the!salesperson and the buyer as the salesper-
son is welcomed to the buyer’s office, then both parties
are usually eager to get down to business as quickly as
possible.

It is recommended that the salesperson propose
an agenda, to which there may or may not have been
previous agreement. Once the agenda is established,

the salesperson may need to gather more information to
use in the sales dialogue or, depending on the situation,
it could be appropriate to make a transition a sales dia-
logue or presentation. A typical first few minutes might
sound like this:

Buyer: Come on in, Pat. I am John Jones. Nice
to meet you. (Introduction/greeting.)

Seller: Mr. Jones, I am Pat Devlin with XYZ Com-
pany. Nice to meet you, too. I appreciate the time
that you are spending with me today. (Thanks, ac-
knowledges importance of the buyer’s time.)

Buyer: Glad you could make it. We have had a
lot of cancellations lately due to the bad weather.
Did you have any problems driving over from
Orlando? (Polite conversation may last for sev-
eral minutes depending on the buyer–seller re-
lationship and on how much the buyer wants to
engage in this sort of conversation.)

Seller: Not really, it was pretty smooth today. Say,
I know you are busy, so I thought we could talk
about a couple of key ways I think we can really
help you build market share with your end-user
market. How does that sound? (A simple illustra-
tion of getting the buyer to agree to the agenda.)

Buyer: Sure, let us get right to it. What do you
have in mind?

Ra
w

pi
xe

l.c
om

/S
hu

tt
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st
oc

k.
co

Planning the first few minutes of a sales
dialogue can help the salesperson make a
positive impression and build trust.

141CHAPTER 6: Planning Sales Dialogues and Presentations

Seller: Well, based on our phone call last week,
I believe that our training programs for your
customer service representatives can improve
your customer satisfaction ratings and customer
retention. I can share the details with you over
the next 20 minutes or so! .! .! . (Transition to a
sales dialogue or presentation based on cus-
tomer needs and customer value.)

In planning the first few minutes of the sales call,
salespeople should remind themselves to be friendly
and positive. They should also remain flexible in terms
of their proposed agenda—customers like to have an
agenda but sometimes want to modify it. The salesper-
son should be prepared to make an adjustment on the
spot. For example, in the previous dialogue, the pros-
pect might have said, “Yes, I want to hear about your
training programs for our customer service reps, but I
am also interested in your thoughts on how we can build
a service-based culture across our entire marketing or-
ganization.” The salesperson might respond accordingly,
“I would be happy to do that. In fact, let me start with an
overview that shows you the big picture from a strategy
and company culture perspective, then later I will show
you how the customer service training piece fits into the
overall strategy. How does that sound?”

In most sales situations involving one-on-one en-
counters with customers, salespeople would not present
a formal written agenda, but instead would present a
brief agenda verbally. In more formal situations that in-
volve team selling and multiple buyers, a written agenda
distributed in advance of the meeting could be appropri-
ate. Properly presented, an agenda shows the prospect
that the salesperson is prepared. It also demonstrates
customer orientation by asking if the prospect has an-
ything to add to the agenda. In addition, an agenda can
provide continuity from one sales call to the next by in-
corporating important follow-up points from the previ-
ous sales call.

These first few minutes are critical in the trust-
building process. By showing sensitivity to customer needs
and opinions, and by asking questions to clarify the cus-
tomer’s perspective, salespeople demonstrate a customer
orientation. Salespeople can demonstrate their expertise
and competence by being sharp and well prepared. First
impressions are crucial in all human interactions, so time
spent on planning the first few minutes is a good invest-
ment on the salesperson’s part. But remember that the
planning template is not intended as a script. It is impera-
tive that salespeople think logically—and from the buyer’s
point of view—in planning what to say after greeting the
customer.

When companies use team selling, pre-call plan-
ning by the sales teams can be facilitated by technolo-
gies that allow real-time access from multiple locations.
For more on this topic, see “Technology in Sales: Facil-
itating Team Selling with Google Apps.”

6-3g Initiating Contact
When you are planning the first few minutes of the sales
dialogue or presentation, there are few ironclad rules.
Instead, the situation and the prospect’s preferences sug-
gest the appropriate sequence—but a few general rules
do apply:

! Following an adequate introduction of the salesper-
son and the salesperson’s company, the salesperson
should use questions, careful listening, and con-
firmation statements to clarify and define explicit
customer needs and motives as related to his or her
offering.

! The salesperson should present benefits in order
of importance according to the prospect’s needs
and motives, and these benefits may be repeated
during the presentation and at the conclusion of
the presentation.

! If the sales presentation is a continuation of one or
more previous sales calls, the salesperson should
make a quick summary of what has been agreed on in
the past, moving quickly into the prospect’s primary
area of interest.

! As a general rule, the salesperson should not focus on
pricing issues until the prospect’s needs have been
defined and the salesperson has shown how those needs
can be addressed with the product or service being sold.
After prospects fully understand how the product or
service meets their needs, they can make informed
judgments on price/value issues.

Obviously, the first few minutes of the sales call will
be greatly influenced by previous interaction (if any)
between the buyer and the salesperson. For example, if
previous sales calls have established buyer needs and the
buyer has agreed to a sales presentation, the first few
minutes will be quite different than if this is the first
sales call on this prospect. The ADAPT questioning pro-
cess (refer to Chapter 4) can be used in part or whole
to acquire needed information and make a transition
to the sales dialogue or presentation. As a guide, the
salesperson should respect the buyer’s time and get to
the presentation as soon as circumstances allow. The
salesperson should not rush to get to the presentation,
and certainly should not launch into a presentation with-
out establishing buyer needs and interest in it.

142

Technology in Sales
Facilitating Team Selling with Google Apps
Major account and global sales teams must collaborate
and coordinate efficiently and quickly to be effective.
Technical product experts must provide their inputs,
financial analysts and researchers must analyze data
and make recommendations, and team leaders must
finalize the entire package together prior to in-person
sales calls. Google is a market leader in providing
Web-enabled applications that allow communications
and information sharing from mobile and stationary
devices. Using these apps, sales teams can collaborate
on sales proposals and presentation plans using Google
Docs, which provides simultaneous content creation
and real-time feedback to members of the sales team.
Written content, visual designs, and videos can be

stored on Google Drive. Files can be accessed and
edited on any device without using e-mail to access
the files. If additional preparation, training, or strategy
sessions are needed to prepare for an upcoming key
account sales call, Google Hangout can be used for
virtual meetings without the travel time and costs
of live meetings. If the sales call involves a formal
presentation, Google Slides offers a tool for crafting
key content and graphics into a compelling message.
In a fast-paced, competitive marketplace, sales teams
must move quickly when new opportunities arise,
and collaboration through technology is increasingly
popular.

Source: “Top 10 ways to Use G Suite in Sales and Marketing,” available online from Google at
Https://www.google.com/learning-center, May 3, 2017.

6-3h Section 7: Anticipate Questions
and Objections
For reasons to be explained fully in Chapter 8, prospects
will almost always have questions and objections that
salespeople must be prepared to answer. In the planning
stages, salespeople can prepare by asking themselves, “If
I were the buyer, what would I want to be certain about
before I make a purchase?” By anticipating these issues
and preparing responses, salespeople can increase their
chances of ultimate success.

6-3i Section 8: Earn Prospect
Commitment
As sales dialogues and presentations progress, there
eventually comes a critical time to ask for a customer’s
purchase decision. In many cases, this is an obvious
point in the sales conversation, but at other times the
salesperson may feel the need to probe to see if the tim-
ing is right. Earning a commitment from a customer as
discussed in Chapter 8 should be a natural step in the

conversation, not a forced or high-pressure attempt by
the salesperson. Although circumstances will dictate ex-
actly when and how commitment will be sought, a pre-
liminary action plan for seeking customer commitment
should be part of the overall planning process. Most buy-
ers expect the salesperson to seek a commitment—and,
if the commitment is sought at the right time, buyers ap-
preciate that effort from the salesperson.

6-3j Section 9: Build Value Through
Follow-Up Action
Finally, the salesperson must always be looking for ways
to enhance the relationship and move it in a positive di-
rection. The salesperson should always make a note of
any promises that he or she has made during the sales
calls. The buyer may ask for information that the sales-
person is not prepared to give during the presentation.
By taking notes, the salesperson ensures that the appro-
priate follow-up activities will happen.

This planning template for sales dialogues and pres-
entations is an extremely useful tool for all salespeople,

143CHAPTER 6: Planning Sales Dialogues and Presentations

especially inexperienced salespeople. It guarantees that
all the appropriate steps are covered and that all of the
pertinent information is collected. Using this template
will make the task of customizing sales dialogues and
presentations easier.

6-4 ENGAGING THE CUSTOMER
Most initial sales calls on new prospects require an ap-
pointment. Requesting an appointment accomplishes
several desirable outcomes. First, the salesperson is let-
ting the prospect know that he or she thinks the pros-
pect’s time is important. Second, there is a better chance
that the salesperson will receive the undivided atten-
tion of the prospect during the sales call. Third, setting
appointments is a good tool to assist the salesperson
in effective time and territory management. Further,
prospects may not appreciate salespeople who drop in
unannounced, as their visit could be an unwelcome in-
terruption in the prospect’s busy work day. Given these
realities, it is a good idea to request an appointment if
there is any doubt about whether one is required.

A salesperson can request an appointment by phone,
mail (including e-mail), or personal contact. Combining
mail and telephone communications to seek appoint-
ments is also commonplace. Regardless of the com-
munication vehicle used, salespeople can improve their

chances of getting an appointment by following three
simple directives: give the prospect a reason why an ap-
pointment should be granted; request a specific amount
of time; and suggest a specific time for the appointment.
These tactics recognize that prospects are busy individu-
als who do not spend time idly.

In giving a reason why the appointment should be
granted, a well-informed salesperson can appeal to the
prospect’s primary buying motive as related to one of the
benefits of the salesperson’s offering. Be specific. For
example, it is better to say that “you can realize gross
margins averaging 35 percent on our product line” than
“our margins are really quite attractive.”

Specifying the amount of time needed to make the
sales presentation alleviates some of the anxiety a busy
prospect feels at the idea of spending some of his or
her already scarce time. It also helps the prospect if
the salesperson suggests a time and date for the sales
call. It is very difficult for busy individuals to respond
to a question such as, “What would be a good time for
you next week?” In effect, the prospect is being asked
to scan his or her entire calendar for an opening. If a
suggested time and date is inconvenient, the interested
prospect will typically suggest another. Once a sales-
person has an appointment with the prospect and all
the objectives have been established, the salesperson
should send the agenda to the customer. This is a highly
professional way to remind the buyer of the upcoming
meeting.

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144

CHAPTER CASE6
A I R F LY T E B O OT S

B A C K G R O U N D
AirFlyte is a manufacturer of men and women’s hiking boots,
which are sold through sporting goods chain stores and
specialty stores. AirFlyte has targeted Mile-High Adventure,
a regional specialty store chain as a potential prospect for
its latest product lines. AirFlyte’s sales representative, Avery
Whitcomb, hopes to replace a competitor’s product in the
Mile-High Adventure stores. Avery has begun planning
an upcoming sales call with Brett Roloff, head buyer at
Mile-High Adventure. At a recent trade show, Avery had a
brief conversation with Brett and learned that Mile-High
Adventure’s management is interested in improving the
profitability of the chain. Further, Brett made it clear that

Mile-High Adventure would only be interested in high-
quality products.

C U R R E N T S I T U AT I O N
AirFlyte’s sales manager Kerry Mohr and Avery have been
discussing the plans for the upcoming sales call on Mile-High
Adventures. Kerry asked Avery for a summary of Mile-High
Adventure’s key buying motives and the related benefits that
AirFlyte could offer. In addition, Kerry wanted to review the
information that would be required to support any claims
made for the benefits, as well as additional ideas for how to
reinforce the verbal content of AirFlyte’s sales message. Avery
supplied Kerry with the requested information, as shown in
Exhibit A. Kerry is now reading over Exhibit A and plans to
give Avery some feedback tomorrow morning.

Exhibit A

Mile-High Adventure’s Buying Motives and AirFlyte’s Benefits

Mile-High Adventure’s
Buying Motives Related AirFlyte Benefits Support Information

Reinforcement of Verbal
Content

Improve
pro#tability

1. Pro#t margin is 6% higher
than product to be
replaced

1. Cost and retail
prices

1. Example income state-
ment with and without
new AirFlyte product

2. AirFlyte product has
signi#cantly higher turn-
over rate than replacement
product, thus improving
total annual pro#tability

2. Use historic data for
existing product,
projected turnover
data for AirFlyte

2. Spreadsheet to illus-
trate multiplier e!ect
of new Nimblefoot
product with lower
turnover rate

High-quality
product

1. Durable synthetic
material features a water-
proof, breathable upper

1. AirFlyte Web site 1. Customer interviews
on AirFlyte Web site

2. Support around arch and
extra width through the
forefoot creates better
shock absorption

2. AirFlyte Web site 2. Customer interviews
on AirFlyte Web site

3. Proprietary outsole gives
best durability in high-wear
areas

3. AirFlyte Web site 3. Article from Hiking
World magazine

145CHAPTER 6: Planning Sales Dialogues and Presentations

Q U E S T I O N S
1. In the role of Kerry Mohr, what specific comments and

suggestions do you have for Avery Whitcomb?

2. Should a sales call objective and a customer value
proposition be developed before completing the
information in Exhibit A?

R O L E P L AY
Characters: Kerry Mohr, sales manager, and Avery
Whitcomb, sales representative.

Scene:
Location—Kerry Mohr’s office

Action—One student plays the role of Kerry Mohr, and
one student plays the role of Avery Whitcomb. Kerry has

told Avery that it would be a good exercise to act out
the presentation of the key benefits shown in section
four of the template. Kerry said to Avery: “I will act like
the Mile-High Adventure buyer, and you try to convince
me that your benefits are significant. Be as specific as
you can.”

Q U E S T I O N S
After completing the role play, address these questions:

1. What were the strengths of Avery Whitcomb’s
performance?

2. How could Avery’s performance be improved?

3. How important is sales call planning in determining
sales call performance?

146

B E AT S V E R S U S S K U L LC A N D Y
H E A D P H O N E S

B A C K G R O U N D
For this role-play, students will assume one of three roles:
(1) sales representative for Beats headphones; (2) sales
representative for Skullcandy headphones; or (3) a buyer
for an electronics retailer that is considering adding one of
the two brands to its selection of headphones. Prior to the
role-play, all students should conduct a comparison of the
features and benefits of a one model of headphones from
each of the two companies. To do the comparison, begin
by using a search engine such as Google. Enter “Beats vs.
Skullcandy” to find features and benefits of both products.

R O L E P L AY:
Characters: One Beats representative, one Skullcandy

representative, and a buyer for the electronics
retailer.

Scene 1: Location—The buyer’s office
Action—Both sellers present their products
to the buyer with a focus on explaining their
product’s benefits to the buyer.

Q U E S T I O N S
After completing the role play, address these questions:

1. Did the sellers demonstrate that they knew the
difference between features and benefits?

2. Did the sellers have sufficient information to be
convincing?

3. Can you suggest additional ways that the sellers could
improve their sales communications?

CHAPTER ROLE PLAY
Planning Sales Dialogues and Presentations6

147CHAPTER 6: Planning Sales Dialogues and Presentations

7 Sales Dialogue: Creating and Communicating Value

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LEARNING OBJECTIVES
After completing this chapter, you should be able to:

7-1 Describe the key characteristics of effective sales dialogue.

7-2 Explain how salespeople can generate feedback from
buyers.

7-3 Discuss how salespeople use confirmed benefits to create
customer value.

7-4 Describe how verbal support can be used to communicate
value in an interesting and understandable manner.

7-5 Discuss how sales aids can engage and involve buyers.

7-6 Explain how salespeople can support product
claims.

7-7 Discuss the special considerations involved in sales
dialogue with groups.

Successful salespeople focus on creating and communicating value during
sales dialogue by addressing the key issues of each buying organization. This
is a difficult task because more individuals are involved in the purchasing
process, buyers are more informed than in the past, and many buyers are
reluctant to meet with salespeople in the early stages of the buying process.
In addition, although many salespeople conduct most of their sales dialogue
in personal meetings with buyers, salespeople are increasingly interacting
with buyers through a variety of different technologies. More sales meetings
are being conducted via Web conferencing, e-mail, and the telephone. The
expansion of social selling results in more communication using social
media. These technologies provide more opportunities to engage in sales
dialogue, but it requires salespeople to adapt to the characteristics of each
technology.

After finishing this chapter, go to PAGE 167 for STUDY TOOLS.

148

Stories can engage buyers and facilitate the communica-
tion between sellers and buyers. A sales trainer provides
insight on the complex situation facing salespeople:4

Salespeople represent the voice of the company—
its products, services, and promises. But, com-
municating our knowledge of products and
services in ways that resonate with buyers is
challenging. Buyers rely on us to help identify
and solve problems for them. Translating the
complexities of our products into stories of effec-
tive problem solving helps buyers visualize the
results from using our products.

7-1 EFFECTIVE SALES DIALOGUE
Preparing and completing this phase of the sales pro-
cess successfully has been compared to doing surgery
in that it is complex and requires preparation, knowl-
edge, and skill. Prior to conducting surgery, the doctor
has acquired a great deal of relevant information from
a variety of sources and developed a comprehensive un-
derstanding of the patient’s problems and needs. Based
on this understanding of the patient’s needs, the surgeon

Despite the challenges, creating and communicating
value effectively is critical for salesperson success. One
study found that the main barrier preventing salespeople
from achieving their quota was the inability to articu-
late value. In another study buyers reported that only
34 percent of salespeople communicate the value of their
product very well. The buyers in this study indicated that
salespeople spend most of their time talking about their
product and not how purchasing and using their product
will create value for the buyer.1

Salespeople can use stories to communicate informa-
tion about value concisely and to create a mental image
of value in the mind of the buyer. Research suggests that
stories serve to inform, persuade, and build bonds with
customers.2 One study of buyers reported that customer
stories communicate value in a way that buyers trust. The
best stories highlight the capabilities of the salesperson’s
product to create value in the unique situation of the buyer,
and help connect with buyers on an emotional level.3

Salespeople face difficult challenges in the critical
task of creating and communicating value to buyers ef-
fectively. Sales dialogue can be conducted using different
technologies, and technology products are available to
provide insight and materials to help salespeople custom-
ize interactions to meet the needs of each specific buyer.

149CHAPTER 7: Sales Dialogue: Creating and Communicating Value

institution, or have students competing against other
colleges in events such as the National Collegiate Sales
Competition, National Sales Challenge, Great Northwoods
Sales Warm-Up, Ball State Regional Sales Competition,
and The International Collegiate Sales Competition. Each
of these sales competitions requires students to conduct
a complete sales dialogue within a 15- to 20-minute sales
call. So, because this has been found to be an effective way
for students to learn about and develop skills for a sales
dialogue, we will cover a complete sales dialogue in one
sales call in this chapter and Chapter 8.

The keys to effective sales dialogue are presented in
Exhibit 7.1. The importance of planning and practicing
were emphasized in Chapter 6 and are an area that does not
receive enough attention from some salespeople. This plan-
ning and practice should focus on an organized sales dia-
logue and not a canned sales presentation. Salespeople who
practice asking questions, getting different responses, and
adapting to these responses appropriately are better pre-
pared to be successful in a real sales dialogue. Proper plan-
ning and practice provide an important foundation for ef-
fective sales dialogue. New developments in technology are
becoming available to help salespeople be more successful
in communicating value during sales dialogue as presented
in “Technology in Sales: Improving Sales Dialogue.”

7-2 ENCOURAGING BUYER
FEEDBACK

In a productive sales dialogue, the salesperson continu-
ally assesses and evaluates the reactions and responses
of prospective buyers. The SPIN or ADAPT questioning

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Just like a mechanic diagnoses problems,
salespeople must diagnose customer
problems before prescribing solutions.

Exhibit 7.1

Keys to Effective Sales Dialogue
The most e!ective sales dialogues:

1. Are planned and practiced by salespeople.
2. Encourage buyer feedback.
3. Focus on creating value for the buyer.
4. Present value in an interesting and understand-

able way.
5. Engage and involve the buyer.
6. Support customer value through objective

claims.

utilizes his or her training and skills in combination with
an assortment of tools! to conduct a surgical procedure
unique to the individual patient’s needs. Continuing the
analogy, up to the point of the presentation in the selling
process, the salesperson has been developing his or her
knowledge and understanding of the buyer’s situation
and needs. Now, in the form of an effective presenta-
tion, the salesperson presents a solution that is specific
and customized to the needs of the buyer, illustrates and
demonstrates the benefits of the solution, and confirms
the buyer’s belief in and desire to obtain the benefits.

Good salespeople are very much like good surgeons
in that they are serious in what they do and leave nothing
to chance. They work with the prospective buyer to iden-
tify, diagnose, and clarify unsatisfied needs or problems
and then show the buyer how much better the situation
would be by purchasing the proposed product or service.
As discussed previously, it will normally take several sales
calls to complete a sales dialogue. Many firms plan for
multiple sales calls in their sales process. For example,
salespeople at Northwestern Mutual conduct an initial
“fact finding” sales call to identify the financial situation
and objectives of potential clients. Then, one or more
subsequent sales calls are used to present strategies for
achieving these financial objectives.

Professional selling classes often require students to
role play a sales dialogue, have sales contests within their

150

processes are designed to get the buyer to provide feed-
back to specific questions the salesperson asks. During
the presentation portion of a sales dialogue, the most
successful salespeople encourage buyer feedback. In
contrast, less successful salespeople often rush through
the entire presentation from beginning to end and never
stop to invite feedback from the buyer. Feedback from
the prospective buyer provides the salesperson with im-
portant information measuring the climate between the
salesperson and the buyer, the buyer’s level of interest in
the product’s features and benefits, whether the salesper-
son has successfully responded to the buyer’s concerns,
and how well the presentation is pro gressing toward the
buyer making a purchase decision.

As detailed and discussed in Chapter 4, the obser-
vant salesperson can receive a great deal of continual
feedback in the form of the buyer’s nonverbal cues. In
addition to observing nonverbal cues, high-performing
salespeople incorporate verbal probes at key points to
evaluate the buyer’s interest and assess the progress of
the sales dialogue. These verbal probes are typically con-
firmatory forms of questions in search of simple “yes” or
“no” responses from the buyer.

The phrases check-backs or response checks
have become common names for this form of

questioning—seeking feedback from the buyer. Although
feedback can be sought at any point in the conversation,
check-backs are commonly employed at two key points:
(1) after a specific feature-benefit sequence in order to
confirm the benefit and better assess the prospective
buyer’s level of interest and (2) following the response
to an objection in order to evaluate the level to which
the salesperson has handled the problem. Exhibit 7.2
provides an illustrative selection of check-back examples
that salespeople indicate are typical of those they com-
monly use.

The effective use of check-backs offers a number of
advantages. Probably the most evident is increased buyer
interaction. Asking for buyer feedback helps to ensure
that the dialogue remains a two-way, collaborative ex-
change. The effective use of response checks also helps
the salesperson evaluate the level of the buyer’s under-
standing and keeps the salesperson on the right track.
If feedback indicates a lack of understanding—or even
worse, a lack of interest—on the part of a prospective buy-
er, the salesperson must
make changes to im-
prove alignment with the
needs and expectations
of the buyer. In contrast,

check-backs or response
checks Questions salespeople
use throughout a sales dialogue to
generate feedback from the buyer.

Technology in Sales
Improving Sales Dialogue
Advances in artificial intelligence and machine learning
are being transferred into technological products that
can help salespeople be more successful in all types of
sales dialogue. These products, offered by companies
such as ClearSlide and Bigtincan, are typically called sales
enablement platforms that can be integrated into CRM
and e-mail systems. Salespeople can use the products
when e-mailing contacts, making phone calls, conducting
Web conferencing, and engaging in personal sales calls.

The sales enablement platforms generally
consist of a cloud-based suite of products that

integrate content, communications, and insights
into a guided selling process through rule-based
recommendations and insights based on machine
learning. They allow salespeople easy access
to presentations, videos, pictures, or whatever
content is most appropriate for a particular buyer.
Analytics are provided to help the salesperson
understand the specific interests of the buyer and
to determine the most effective materials to use to
communicate value more effectively to a specific
buyer. Salespeople at companies, such as Merck,
Sacramento Kings, and Wall Street Journal, are using
sales enablement platforms successfully.5

151CHAPTER 7: Sales Dialogue: Creating and Communicating Value

positive feedback indicating a high level of understand-
ing and interest on the part of the buyer would signal the
salesperson to stay the course and advance the presenta-
tion toward gaining the buyer’s purchase commitment. A
series of positive response-checks indicates that the buyer
is nearing a purchase decision. The more positive affir-
mations a salesperson receives in relation to his or her
response checks, the easier the final purchase decision be-
comes and the more confident the prospective buyer is in
having made the appropriate decision. Specific examples
of check-backs within a sales dialogue will be presented at
appropriate places in the remainder of this chapter.

7-3 CREATING CUSTOMER
VALUE

After the introductory part of a sales call, the salesper-
son must try to determine what the buyer considers to

be of value. A salesper-
son can use the SPIN
or ADAPT questioning
strategies (discussed in

Exhibit 7.2

Illustrative Examples
of Check-Backs

! “How does this sound to you?”
! “Does this make sense to you so far?”
! “Would this feature be useful to you in your

current operations?”
! “What do you think?”
! “So is this something that would be valuable

to you?”
! “Isn’t that great?”
! “Do you like this color?”
! “From your comment, it sounds like you would

want the upgraded memory. Is that correct?”
! “Does that answer your concern?”
! “Would this be an improvement over what you

are doing right now?”
! “Is this what you had in mind?”

Chapter 4 and included in the Sales Dialogue Template
in Chapter 6) to understand the buyer’s situation and to
identify needs, problems, or opportunities important to
the buyer. The salesperson must ask questions, probe
for details, and listen carefully to what the prospective
buyer is saying. This may take more than one sales call
depending on the amount of probing and clarifying that
must take place to understand the prospect’s needs. The
salesperson’s primary goal is to uncover the prospect’s
specific needs or problems and then focus on what
products or services will solve the problem or meet the
specific needs.

As discussed in Chapter 6, features are the charac-
teristics of a product and benefits are the favorable out-
come from a feature or the value received by the buyer.
Most products have many features and benefits, but
the buyer generally is not interested in all of a product’s
features and benefits. Confirmed benefits are those
benefits the buyer has indicated are of interest. A major
purpose of the use of the SPIN or ADAPT questioning
process is to help the salesperson identify the confirmed
benefits for the buyer. Then, the salesperson presents a
recommended solution by emphasizing product features
that will produce the confirmed benefits the buyer de-
sires. Product features and confirmed benefits are linked
to the buyer’s specific needs in a way that generates the
buyer’s desire to purchase and acquire the recommend-
ed solution.

The “Beginning the Sales Dialogue” section in
Chapter 6 provides an effective introduction to a sales
call. The sales dialogue would then transition into a
stage where the salesperson identifies the confirmed
benefits the buyer desires. An example of this in-
teraction using the ADAPT questioning process is
presented here.

confirmed benefits The
benefits the buyer indicates are
important and represent value.

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Salespeople focus on creating customer
value relative to price.

152

Seller: What are you currently doing to improve
your customer satisfaction ratings and customer reten-
tion? (Assessment question)

Buyer: We are trying to do a number of things, such
as improving our products, providing faster deliveries,
and offering better customer service.

Seller: How are these efforts working? (Discovery
question)

Buyer: Our product and delivery improvements
have been effective, but we have received a number of
complaints about our customer service.

Seller: What types of customer service complaints
have you received? (Discovery question)

Buyer: Most of the complaints are that our repre-
sentatives do not act professionally and cannot resolve
customer issues in a timely manner. But, when I talk to
our representatives, they suggest that the customers are
very demanding and dif”cult to deal with.

Seller: What has been the impact of these customer
service problems on your business? (Activation question)

Buyer: The impact has been twofold. First, al-
though we have not yet lost any customers, our cus-
tomer satisfaction ratings have gone down, so we could
lose customers in the future. Second, we have lost some
of our best customer service reps because they got tired
of dealing with irate customers. Losing these reps just
added to the customer service problems we have been
having.

Seller: So, if we could “nd a way to help your reps
deal with dif”cult customers, would it improve your
customer service and reduce the turnover of your reps?
(Projection question)

Buyer: That would be a big help to us. (The seller
has identi!ed a con!rmed bene!t.)

Seller: Mr. Jones, have you ever provided any train-
ing to your customer service reps? (Assessment question)

Buyer: Yes, we sent our reps to a public customer
service training program a few months ago. But the reps
said the program was very general and did not address
the issues they face.

Seller: Do you think your reps would “nd a training
program customized to their situation useful? (Activation
question)

Buyer: A customized program would be received
well by our reps and would be valuable to them. (The
seller has identi!ed another con!rmed bene!t.)

Seller: Have you ever considered online training?
(Assessment question)

Buyer: We thought about it, but many of our reps were
not receptive to the idea of online training. (The buyer has
indicated that online training is NOT a con!rmed bene!t.)

Seller: It seems like a customized customer ser-
vice training program that focused on dealing with dif-
“cult customers would improve your service to existing
customers and help reduce turnover of your customer
service reps. Do you think this type of training pro-
gram would be valuable to your business? (Transition
question)

Buyer: I would certainly be interested in this type
of program.

This sales dialogue example illustrates the value of the
ADAPT questioning process to help salespeople identify
confirmed benefits and transition into the presentation
of a solution to solve the problems the buyer expresses.
This presentation should focus on a customized training
program that emphasizes dealing with difficult customers
(confirmed benefits), but it should not be an online train-
ing program (benefit not confirmed). This example sales
dialogue will be continued later in this chapter.

Sometimes salespeople understand the confirmed
benefits of a buyer and know the best product to provide
the best value for the customer. However, pressure from
their company or other sources can put salespeople in
very difficult situations. One such situation is presented
in “An Ethical Dilemma.”

Creating and communicating value is also important
in maintaining relationships with existing customers, be-
cause changes can occur in a customer’s situation. For
example, Match Eyewear had been doing business with
a large account. This customer had made some changes
in its business objectives and was ready to stop doing
business with Match Eyewear. The Match Eyewear sales
team found out about this and met many times with the
customer. These meetings identified the new value need-
ed by the customer. Match Eyewear addressed the new
value requirements by improving its service and support
offerings and communicating these changes effectively.
The customer was retained and Match Eyewear used
this situation to develop a stronger relationship with this
customer.6

7-4 INTERESTING AND
UNDERSTANDABLE
SALES DIALOGUE

Once confirmed benefits have been identified, the sales-
person needs to present key selling points in a manner that
is interesting and understandable to the buyer. The pre-
sentation should focus on the buyer and is intended to gain

153CHAPTER 7: Sales Dialogue: Creating and Communicating Value

and hold the buyer’s attention, and to increase the buyer’s
understanding and retention of the information provided
by the salesperson. Verbal support elements include
voice characteristics, examples and anecdotes, and com-
parisons and analogies. These elements can be incorporat-
ed into stories to produce interesting and understandable
sales dialogue. Examples of the successful use of verbal
support elements are presented in “From the Classroom to
the Field: Communicating Value Effectively.”

7-4a Voice
Characteristics
The key aspects of voice
characteristics are the!
pitch and speed of speech.
Varying and changing
pitch on key words adds
emphasis and increases

impact. It is analogous to putting different colors and
hues into your voice. The increased intensity and vivid-
ness grabs attention, holds interest, and helps the buyer
remember what is said. Fluctuating the speed of speech
can add emphasis and guide the buyer’s attention to se-
lected points of the presentation. Important details—
especially quantitative information—should be provided at a
slower, more careful pace. Less critical information can be
presented at a faster pace in order to grab the buyer’s at-
tention and redirect his or her interest. Changes in volume
can be used to add emphasis on an important phrase or
topic, and a softer volume—almost a whisper—can build
intrigue and pull the prospect into the conversation.
Altering volume from loud to soft can better grab and hold
the buyer’s interest while simultaneously adding clarity
and emphasis to increase understanding.

A salesperson can know his or her product inside
and out, but if there is no energy and passion in his or her
voice, the potential for making the sale will be seriously

verbal support The use of
voice characteristics, examples and
anecdotes, and comparisons and
analogies to make sales dialogue
interesting and understandable.

voice characteristics The
pitch and speed of speech, which
salespeople should vary to emphasize
key points.

Tracey Wise has been selling computer systems for
just over nine years and has earned the position
of senior account manager for one of the leading
companies in the industry. For several months, Wise
has been working with a major insurance company
that is looking for an automated information system
to solve the company’s growing backlog of worker
compensation claims. After reviewing the informa-
tion from previous sales calls with the buyer, Wise
and her tech-support team decided that the R740
system offered the greatest benefits to this particular
customer. However, a special sales promotion pro-
vided company salespeople additional commissions
and double points toward the annual sales incentive
trip to Hawaii for each R800 system sold. The higher
priced R800 had all the same features and capabilities
of the R740 along with many more. However, few
of these additional capabilities would ever be of
value to the insurance company. During her last
sales call, Wise explained and demonstrated the
R740 and the R800.

What should Tracey do?
(A) Recommend the R740 because it offers the most

value to the customer.
(B) Recommend the R800 by telling the buyer that

the additional features would be needed as the
company grows.

(C) Present a detailed comparison of all of the features
offered by the R740 and R800 and let the buyer
make the decision.

An Ethical Dilemma

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Chris Day graduated from the University of Louisville in
2013. He has served as Ticket Sales Representative for the
Orlando Magic and Senior Premium Sales Manager for the
Nashville Sound. Chris talks about how he has used verbal
support elements to communicate value effectively:

“My sales job was to sell various ticket packages to
families and business customers. I tried to determine
the type of experience valued by the prospect and
then determine the specific ticket package that would
provide the desired value. My focus was to use exam-
ples, anecdotes, comparisons, and analogies with the
appropriate voice characteristics to communicate value
in an interesting and understandable way.”

“Many family prospects found value from the entire
experience of purchasing a ticket package and attending
a game. As a salesperson for the Orlando Magic, I had the
opportunity to allow the family to come to the game ear-
ly and watch the team warm up before the game. I often
used an example and anecdote within a story to commu-
nicate this benefit effectively. For example, I would often
tell the story of a family that bought a ticket package and
the entire family came to the game early and was sitting
courtside watching the team. Victor Oladipo, the rookie
star on the team, came over and gave the kids a high five
and talked with them for a couple of minutes. This story
included an example and anecdote to communicate a
valuable aspect of the game experience to prospects.”

“Business prospects often viewed the attendance
at a game as an opportunity to entertain custom-
ers. Nashville business prospects usually considered
tickets to major league games of the Tennessee Titans
or Nashville Predators, as well as the minor league
Nashville Sounds. In this competitive situation, I em-
ployed comparisons and analogies to communicate the
differences between these options. Although I would
compare ticket prices and other basics, my emphasis
was more on the atmosphere of the different options.
Those attending Titan or Predator games were usually
most interested in the outcome of the game, while
those attending Sound games were more interested in
the overall atmosphere and experience. If entertaining
customers was the major value desired, I would point
out that they would have many more opportunities to
interact with these customers at a Sounds game com-
pared to a Titan or Predator game.”

“As a salesperson in two different selling situations,
I realized the effectiveness of using various combinations
of examples, anecdotes, comparisons, and analogies. I
would also vary the tone of my voice and speed of delivery
to emphasize the key aspects of the value desired by the
customer. These verbal support elements can be incorpo-
rated into stories that help ‘paint a picture’ that allows the
prospect to visualize the value received from purchasing
ticket packages from me.”

From the Classroom
to the Field
Communicating Value Effectively

impaired. A medical salesperson talks about the impor-
tance of voice characteristics:7

Your voice is an instrument. When used
wisely, varying the cadence, pitch, and speed
of your voice can deliver a message that cap-
tures a buyer’s attention, generates interest,
and adds energy to a sales conversation. I try
to speak in a very confident manner and to
communicate my passion for helping buyers
solve problems.

Voice quality can be used to bring excitement and
drama to the presentation by doing three things: varying
the pitch, fluctuating the speed, and altering the volume.

7-4b Examples and Anecdotes
An example is a brief
description of a specific
instance used to illus-
trate features and ben-
efits. Examples may be

examples A brief description of
a specific instance used to illustrate
features and benefits of a product.

155CHAPTER 7: Sales Dialogue: Creating and Communicating Value

either real or hypothetical and are used to further explain
and emphasize a topic of interest. A production equip-
ment salesperson might further explain the purpose of an
infrared guidance control by using the following example:

If the feedstock coming off the main paper roll
gets out of line by as little as 1/16 of an inch, the
infrared guidance control will sense it and au-
tomatically make the correct adjustments. This
prevents a paper jam from shutting down your
package printing line and costing lost time and
wasted product.

An anecdote is a type of example presented in the
form of a story describing a specific incident or occur-
rence. Stories can be very effective in keeping a buyer
interested and helping the buyer understand the solu-
tion a salesperson presents. The production equipment
salesperson might use an anecdote such as the following:

One of my customers was having a problem with
paper jams that were shutting down the !rm’s
package printing line. Similar to your situation,
there was a lot of lost production time and wasted
product. We installed the infrared guidance con-
trol, which automatically adjusts the paper roll
when it gets off by as little as 1/16 of an inch. This
reduced paper jams, resulting in less wasted prod-
uct and more production time for the customer.

A salesperson’s use of examples and anecdotes keeps
the buyer interested, brings clarity into the presentation,
and improves the buyer’s understanding and retention
of what the salesperson is presenting. The use of an ex-
ample and anecdote in our sales dialogue example for
customer service training follows.

Seller: Customized training programs can be very ef-
fective. For example, one of our clients increased custom-
er satisfaction ratings by 25 percent after we implemented
a customized program for their reps. (Example). Is this the
type of improvement you are looking for? (Check-back)

Seller: Customers of the XYZ Company were very
dissatisfied with the service the firm’s reps provided. We

reviewed the custom-
ers’ complaints, met
with the customer ser-
vice reps, identified the
main problems, and
created a specific train-
ing program to deal
with the key problems.
After completion of the
sales training program,
customer complaints

decreased by 75 percent. (Anecdote) What do you think
about these results? (Check-back)

7-4c Comparisons and Analogies
A comparison is a statement that points out and illus-
trates the similarities between two points. Comparisons
increase the buyer’s level of interest and understanding
of information. The production equipment salesperson
could emphasize the value of the infrared guidance con-
trol through the use of a comparison:

You have the performance speci!cations of our
product with infrared guidance control and
the other products without this feature. As you
can see, our product will automatically make
adjustments to keep your package printing line
running. The other products will shut your line
down and require you to remove paper jams
manually before you can restart production.
Our product will save you time and money
compared to the other products.

A salesperson for Rubbermaid might illustrate the
benefits of setting up an end-of-aisle display of special oc-
casion containers by using the following comparison to the
store manager’s sales goals for the product category:

Sales data from stores similar to yours indicate
that adding an end-of-aisle display for these sea-
sonal containers will increase their sales by 35
to 40 percent during the fourth quarter holiday
season. This would certainly help you achieve—
and possibly exceed—the store’s goal of a 20 per-
cent increase for this general product category.

Medical products salespeople often use comparisons
in their role as consultants to doctors. The salespeople
will provide a direct comparison of existing products to
new products that will be introduced in the near future.
Doctors find these comparisons valuable and, in some
cases, find the new product valuable enough to postpone
non-emergency surgery until the new product is available.8

An analogy is a special and useful form of compari-
son that explains one thing in terms of another. Analogies
are useful for explaining something complex by allowing
the buyer to better visualize it in terms of something famil-
iar that is easier to understand. The production equipment
salesperson might employ an analogy to help the buyer
better understand the value of infrared guidance control:

The infrared guidance control system is like a
Global Positioning System (GPS) in your car. If
you make a wrong turn during a trip, the GPS will
automatically reroute you to get you back on the

anecdote A type of example
that is provided in the form of a story
describing a specific incident or
occurrence.

comparison A statement
that points out and illustrates the
similarities between two points.

analogy A special and useful form
of comparison that explains one thing
in terms of another.

156

right road for your trip. If you did not have GPS in
your car, you would have to stop and look at a map
to determine how to get back on the right route for
your trip. Our infrared guidance control system
operates like a GPS for your package printing line.

The use of a comparison and analogy in our sales
dialogue example is presented here.

Seller: We will incorporate your reps throughout the
design and execution of our training program. This gives
the reps some ownership in the program. Our competi-
tors, in contrast, develop their programs based on what
management tells them is important. (Comparison). Do
you think your reps would respond well to being includ-
ed in all aspects of the training program? (Check-back)

Seller: Developing a customized sales training pro-
gram is like planning for a family vacation. Everyone in
the family is likely to be more excited about the vacation
if they are involved in all aspects of the planning process.
(Analogy) What do you think about involving your reps
in all aspects of the training program? (Check-back)

7-5 ENGAGING AND INVOLVING
THE BUYER

Simply informing the prospect about the benefits and
their value to the buyer is seldom sufficient to gener-
ate the level of interest and desire required to result
in a purchase decision. To maximize the effective-
ness of the sales dialogue, salespeople utilize various
sales aids to engage and involve the buyer through-
out the sales interaction. These sales aids also help
to capture and hold the buyer’s attention, boost the
buyer’s understanding, increase the believability of the

Exhibit 7.3

Reasons for Using Sales Aids
! Capture prospective buyer’s attention.
! Generate interest in the recommended solution.
! Make presentations more persuasive.
! Increase the buyer’s participation and involvement.
! Provide the opportunity for collaboration and

two-way communication.
! Add clarity and enhance the prospect’s

understanding.
! Provide supportive evidence and proof to

enhance believability.
! Augment the prospect’s retention of information.
! Enhance the professional image of the salesperson

and selling organization.

claims, and build the buyer’s retention of information.
(See Exhibit 7.3.) Not all sales aids are suitable for all
products, selling situations, or buyers. Nor should a sales-
person feel the need to use each and every tool in any giv-
en sales call. A salesperson should use the sales aids that
will engage and involve each buyer most effectively in a
particular sales dialogue. Many times, the selling organi-
zation provides these sales tools. However, experienced
salespeople are quick to comment that some of their most
effective sales aids are those that they developed them-
selves for specific prospects and selling situations.

7-5a Types of Sales Aids
Sales aids allow the salesperson to involve one or more
of the buyer’s senses in the presentation, help illustrate
features and confirmed benefits, and add clarity and
dramatization to increase the effectiveness of a sales dia-
logue. The types of sales aids available to a salesperson
include visual materials, electronic materials, and product
demonstrations.

7-5b Visual
Materials
Visual materials repr-
esent a variety of sales
aids intended to engage
and involve buyers visual-
ly. The major types of vi-
sual materials are printed

sales aids The use of printed
materials, electronic materials, and
product demonstrations to engage
and involve buyers.

visual materials Printed
materials, photographs and
illustrations, and charts and graphs
used as sales aids.

A GPS is a good analogy for a product that
automatically corrects itself.

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157CHAPTER 7: Sales Dialogue: Creating and Communicating Value

materials, photographs and illustrations, and charts and
graphs. Exhibit 7.4 provides salespeople with a number
of tips for preparing printed materials and visuals.

Printed materials include items such as brochures,
pamphlets, catalogs, articles, reprints, reports, testimo-
nial letters, and guarantees. Well-designed printed mate-
rials can help the salesperson communicate, explain, and
emphasize key points during a sales dialogue. They are
designed to summarize important features and benefits
and can not only be used effectively during the presenta-
tion but also left behind as reminder pieces for the buyer
after the salesperson has left. When printed materials
are left with a buyer, the salesperson’s name and contact
information should be clearly printed on the material or
an attached business card.

Photographs and illustrations are easy to pro-
duce and relatively inexpensive. Using images allows
the salesperson to present a realistic portrayal of the
product or service. Many products cannot be taken
into a prospective buyer’s office because of their size.
A well-detailed image can give the prospect an idea of
the product’s appearance and size. Line drawings and

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Printed materials are effective sales aids;
often providing the customer with useful
information. Exhibit 7.4

Tips for Preparing Visual Materials
! Visual materials should be kept simple.
! When possible, use phrases and let the buyer’s

mind complete the sentences.
! Use the same layout and format throughout to

tie the presentation together.
! Check for typographical and spelling errors.
! Use colors sparingly and for functional rather

than decorative purposes.
! Leave plenty of white space; do not crowd

the page.
! Each visual should present only one idea.
! Target using a maximum of seven words per line

and seven lines per visual.
! Where possible, use graphics (charts and graphs)

rather than tables.
! Use bullet points to emphasize key points.
! Never read the presentation directly from

the!visual.
! Clearly label each visual with titles and headings

to guide the prospective buyer.

diagrams can show the most important details of a prod-
uct. Images are most effective when they illustrate and
simplify a more complex product or feature and make
it easy to communicate information about size, shape,
construction, and use.

Charts and graphs are useful in showing trends and
illustrating relationships. As such, they can show the
prospect what the problem is costing them or how a
solution might work. Charts and graphs often illustrate
relationships in terms of bars, lines, circles, or squares.
For example, a salesperson for an office equipment
vendor might get the cost figures associated with the
buyer’s use of an outside copy center for the previous
two years. The salesperson could then use this informa-
tion in a comparative bar graph to better illustrate the
savings possible if the buyer had a copier. Salespeople
for a leading medical technology company use a chart
format to compare the features and benefits of their
product versus the competitors’ equipment the buyer
is considering. The chart format succinctly and effec-
tively supports statements of superiority made during
the presentation.

158

7-5c Electronic Materials
Electronic materials include all sales aids in elec-
tronic format. These span individual slides and videos to
complete multimedia presentations. As technology con-
tinues to develop, more options to use electronic materi-
als become available to salespeople.

Salespeople today can customize graphic pre-
sentations for each buyer. Customizing and enriching
presentations by using electronic multimedia can be
done inexpensively and in a fairly short period of time.
Microsoft PowerPoint, for example, allows the salesper-
son to build a complete, high-impact graphic presentation
customized for an individual prospect quickly. The use
of video has the advantage
of both sound and action.
These powerful multimedia
presentations might include
pictures of products, as well
as product demonstrations
and competitive compari-
sons. The buyer can be taken
on a virtual tour of the sell-
ing organization and see the product being produced or
simultaneously see and hear a personal message from the
president of the selling organization as well as testimo-
nials from satisfied customers. David Frick, President
of Success Ventures, talks about the value of electronic
sales aids:

Sales aids in digital format, such as e-books,
research reports, white papers, customer en-
dorsements, case studies, infographics, press
clippings, webinars, and videos, can be valu-
able to salespeople throughout the sales process.

Much of this electronic content can be custom-
ized to be used as a sales aid in sales dialogue
with a speci!c buyer. For example, a salesper-
son selling marketing services to a law !rm can
take a general e-book on attracting customers to
a law !rm and customize the title, cover, and
some content to meet the con!rmed bene!ts of
the buyer. The customized e-book can then be
used as a sales aid at the appropriate point in
the sales dialogue to communicate the value de-
sired by the prospective law !rm.9

Leading pharmaceutical companies are using elec-
tronic materials in two interesting ways. First, iPad ap-
plications (apps) have been developed by some firms
to facilitate interaction between sales reps and doctors.
The salesperson can use the app to visually illustrate
how a drug works in the body and to respond to ques-
tions a doctor might have. Second, doctors are very busy
and may not have time to interact with a salesperson
during an office visit. In these cases, the sales rep can
give the physician a card with a URL on it and invite
the doctor to view a presentation electronically, engage
in an online discussion, or participate in a live electron-
ic presentation at a more convenient time. These and
other forms of “e-detailing” are being explored by many
pharmaceutical firms.10

7-5d Product Demonstrations
The product itself is often the most effective sales tool
because it provides the prospective buyer with an op-

portunity for hands-on experience.
When the actual product does not lend
itself to being demonstrated, models
can be used to represent and illustrate
key features and benefits of the larger
product. The value of an actual prod-
uct demonstration is applicable to all
types of products and services. For ex-

ample, aircraft salespeople use scale models to give!the
buyer a detailed and realistic feel for the aircraft, which
cannot be tucked into the salesperson’s briefcase. Major
vendors of office furniture will set up an actual model
office so that the prospective client can experience its
actual use. Pharmaceutical companies provide doctors
with actual samples of the product for trial use with se-
lected patients.

As detailed in
Exhibit 7.5, the sales-
person should make
sure the product being

Multimedia sales aids are being used more
in sales dialogue.

Salespeople can increase the
success of a sales dialogue by
using appropriate sales aids

effectively.

electronic materials Sales aids
in electronic format such as slides,
videos, or multimedia presentations.

159CHAPTER 7: Sales Dialogue: Creating and Communicating Value

clinical-like environment, and get to know the Toshiba
executives. This demonstration approach has led to sig-
nificant sales growth and better customer relationships
for Toshiba Medical Systems.12

7-5e Using Sales Aids in the
Presentation
Practice! Practice! Practice! Rehearsal of the presenta-
tion is the final key to conducting effective sales dia-
logue. Understand what features are relevant and what
benefits are meaningful to the prospective buyer in
terms of value to be realized. Be confident in develop-
ing and using multiple sales aids to add impact to the
presentation itself. Using the SPES Sequence can fa-
cilitate the effectiveness of presentation tools and sales
aids: S!5 State selling point and introduce the sales aid;
P 5 Present the sales aid; E 5 Explain the sales aid;
S 5 Summarize.13

7-5f State the Selling Point
and Introduce the Sales Aid
This means stating the full selling point including the fea-
ture and potential benefit and then introducing the sales
aid. For instance, “To demonstrate this benefit, I would
like you to take a look at this video” or “This graph summa-
rizes the increased performance you will experience with
the Honda S2000.” This prepares the buyer for the visual
aid and informs him or her that attention is required.

7-5g Present the Sales Aid
This involves presenting the sales aid to the customer
and allowing a few moments for examination and famil-
iarization before saying anything. For example, when
using printed materials, place the material directly in
front of the customer and allow it to be reviewed mo-
mentarily in silence. Allow the customer to review the
sales aid and satisfy his or her natural curiosity before
using it.

7-5h Explain the Sales Aid
No matter how carefully a sales aid is prepared, it will not
be completely obvious. The customer will not necessarily
understand the significance unless the salesperson pro-
vides a brief explanation. Do not rely on a chart or graph to
illustrate fully the points being supported. Similarly, a pros-
pect might enjoy a product demonstration yet totally miss
the information or experience supporting the presentation.

demonstrated is typical of what is being recommended.
Furthermore, it should be checked to ensure that it is
in good working order prior to the demonstration and
that setup and removal do not detract from the presen-
tation. The last thing the salesperson wants is to have
to apologize for poor appearance or inadequate perfor-
mance.

It is important to customize the demonstration as
close as possible to the buyer’s situation, and to allow
the buyer to actually use the product, if possible. Sales-
people at a payroll processing firm focus on making the
demonstration as realistic as possible. These salespeo-
ple conduct sales dialogue in person and electronically
using Web conferencing services with individual buyers
and buying teams. A software demonstration is set up
to include the logo, information, and settings specific
to the situation of the buyer. The salesperson can then
show how each buyer need is addressed and use check-
back questions to confirm understanding. During in-
person meetings, the buyer is, in fact, able to use the
product on a computer, as well as try the smartphone
and tablet app. This type of product demonstration is
engaging and interactive, which helps the buyer under-
stand the value offered by the salesperson’s product.11

Sometimes it is more effective to bring the buyer to
another site for a product demonstration. Toshiba Medi-
cal Systems uses this approach very successfully for buy-
ers of CT scanners and MRI systems. It conducts 20 to
40 site visits a week with potential buyers. The buyers
have the opportunity to see the products in action in a

Exhibit 7.5

Guidelines for Product
Demonstrations

! Ensure that the appearance of the product is
neat and clean.

! Check for problem-free operation.
! Be con!dent and able to demonstrate the

product skillfully.
! Practice using the product prior to the

demonstration.
! Anticipate problems and have back-up or

replacement parts on hand.
! Make sure that setup and knockdown are easy

and quick.

160

The salesperson should point out the material information
and explain how it supports his or her points.

7-5i Summarize
When finished explaining the significance of the sales
aid, summarize its contribution and support and remove
the sales aid. If not removed, its presence can distract
the prospective buyer’s attention from subsequent fea-
ture and benefit points.

The use of the SPES Sequence to use a sales aid in
our customer service training program sales dialogue is
presented here.

Seller: You mentioned earlier that your reps are not
well prepared to deal with irate customers. I would like
to show you a short video from a training program we
developed for another “rm. The video illustrates how we
use role plays to help reps develop the skills to interact
with irate customers effectively. (State the selling point
and introduce the sales aid.)

(The salesperson shows the video to the buyer.)
Seller: Did you notice how everyone involved in the

training program watched the role play carefully and was
able to contribute comments to improve the interaction
with the irate customer? (Explain the sales aid.)

Buyer: The role play exercise did get everyone in-
volved and produced some good ideas for improvement.

Seller: Although this is just one type of exercise we em-
ploy in our training programs, the role play produced some
guidelines that all reps could use to deal with irate custom-
ers more effectively. (Summarize) Do you think this type of
exercise would be valuable to your reps? (Check-back)

7-6 SUPPORTING PRODUCT
CLAIMS

As discussed earlier in this chapter, confirmed benefits
answer the buyer’s question, “What is in it for me?” In a
similar fashion, proof providers such as statistics, testi-
monials, and case histories can be utilized to preempt the
buyer from asking, “Can you prove it?” or “Who says so?”
Claims of benefits and value produced and provided to
the buyer need to be backed up with evidence to highlight
their believability.

7-6a Statistics
Statistics are facts that lend believability to claims
of value and benefit. When available, statistics from

Salespeople can use independent testing
organizations to support their product claims.

authoritative, third-party sources carry the highest cred-
ibility. Third-party sources include independent test-
ing organizations and labs (e.g., Consumer Reports,
Underwriters Laboratories), professional organizations
(e.g., American Dental Association, Risk Management
Society), research companies (e.g., Booz Allen Hamilton,
The Industry Standard, PricewaterhouseCoopers), insti-
tutions (e.g., Sandia National Laboratories, MIT), and
various governmental entities (e.g., Census Bureau, state
licensing bureaus, Department of Commerce). Statistics
prepared by the selling organization as well as the
salesperson can also be useful in providing evidence for
claims. Facts and statistics are most powerful when they
fairly represent all sides to the story and are presented
in printed form rather than simply stated orally. Not only
does the printed word carry more credibility but also it
is convenient and can be left as a reminder to aid the
prospect’s retention of information.

7-6b Testimonials
Testimonials are similar to statistics, but in the form
of statements from satisfied users of the selling organi-
zation’s products and
services. Supportive
statements from cur-
rent users are excel-
lent methods to build
trust and confidence.
They predispose the
prospective buyer to
accept what the sales-
person says about the
benefits and value a

proof providers The use
of statistics, testimonials, or case
histories to support product claims.

statistics Facts that lend
believability to product claims and are
used as proof providers.

testimonials Proof providers
that are in the form of statements
from satisfied users of the selling
organization’s products and services.

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161CHAPTER 7: Sales Dialogue: Creating and Communicating Value

recommended solution offers, and they reduce the pros-
pect’s perceived risk in making a purchase decision.

Written testimonials are especially effective when
they are on the recommending user’s letterhead and
signed. However, testimonials that list customers, trade
publications, trade associations, and independent rating
organizations along with one-sentence comments in a
presentation can also be effective. For instance:

! “The American Dental Association has endorsed the new
Laserlite drilling system as being safe and painless for
the patient.”

! “In January, Fortune magazine recognized CDW as the
top-rated technology vendor on the basis of services
provided to the buying customer.”

! “The RIMS Quality Scorecard rated Arthur J. Gallagher
& Co. as the highest-rated insurance broker in North
America in terms of value and service provided
to its clients.”

Testimonials are used
extensively across industry
and product/service types.
To maximize their effective-
ness, testimonials should be
matched according to rel-
evance and recognition to the
prospective buyer. It is critical
that the organization or per-
son providing the supporting
testimony be known or recognized by the prospect,
above reproach, and in a position of respect.

7-6c Case Histories
Case histories are basically a testimonial in story or an-
ecdotal form. Their added length allows more detail to
be presented to further clarify an issue or better itemize
the proof for a given statement. Case histories can also
break the monotony of a long presentation. Like their
counterpart testimonials, case histories should be used
only when they clearly illustrate a particular point and
are appropriate for the prospective buyer. Unrelated or
tangential stories not only distract the customer but also
can be a source of irritation that works against credibil-
ity building. Case histories should be short and to the
point, lasting no more than a minute. They should sup-
port the presentation rather than becoming the center
of attention. Salespeople at a productivity software firm

use case histories in
most of their sales dia-
logues. Once the spe-
cific needs of the buyer

are identified, the salesperson presents a solution, and
then uses a case history for each need to add credibil-
ity. Each case history illustrates how they have created
the value desired by the buyer for other customers. The
case histories are often communicated in a story format
as a way to engage the buyer more actively.14

The effective use of a proof provider in our custom-
er service training program sales dialogue follows.

Buyer: I like many aspects of your approach to de-
signing and delivering training programs. So I think your
“rm can develop and implement a good customer service
training program for us. But I am not sure the training
program will produce the increases in customer satisfac-
tion and retention that we desire. I am concerned that my
reps will take the training, like it, learn some things, but
then go back to work and not do much differently. If this

occurs, we have spent a lot of time and money, but
not received much of a return.

Seller: I certainly
understand where you
are coming from, as all of
my customers had simi-

lar concerns. Let me
show you two letters
from customers. Each
is from a different in-

dustry than yours, but
both are about your size

and both had similar customer service problems and
objectives. (Salesperson shows each letter and points
to key points in each.) Notice how this customer in-
dicates a 25 percent increase in customer satisfac-
tion from the training program, and this customer
has calculated a 20 percent return from its invest-
ment in our training program. I think these letters
provide strong evidence that our training programs
can produce real business results. Do you see how
our training program can help you achieve your ob-
jectives? (Check-back)

7-7 GROUP SALES DIALOGUE
Sales dialogue with groups is fairly commonplace in
business-to-business selling. For example, retail chains
often employ buying committees when considering
the addition of new products for their stores. Hospi-
tals use cross-functional teams comprising medical
and administrative personnel to choose vendors such
as food service providers. A group of marketing and

Kheng Guan Toh/Shutterstock.com

case histories A testimonial in
story or anecdotal form used as a proof
provider.

162

upper-management people usually makes the decision
of which advertising agency will be chosen. Corpora-
tions often depend on representatives from several de-
partments to make purchase decisions that affect all
employees, such as the choice of insurance providers.

Interacting with groups presents special challenges
and opportunities. In addition to the basic fundamentals
of planning and delivering sales dialogue to individual
buyers, there are additional strategies and tactics that
can enhance sales dialogue with groups.

When selling to groups, salespeople can expect
tough questions and should prepare accordingly.
Although buyer questions are part of most sales dialogue
whether to individuals or groups, they are particularly
crucial when there are multiple buyers. Most buying
groups are assembled to tap the individual expertise
and interests of the group members. For example, a
buying committee for a company’s computer informa-
tion system could include technical specialists; finance
and accounting personnel; and representatives from
production operations, logistics, management, and
marketing. All of these individuals are experts and de-
mand in-depth information in order to make a decision.
In some situations, this calls for a sales team to address

all questions adequately, while in some cases, an indi-
vidual salesperson has the cross-functional expertise
required to make the sale.

When selling to a group, salespeople should take
every opportunity of preselling to individual group
members prior to the group presentation. Preselling
to individual buyers or subgroups of buyers takes place
before a major sales presentation to the entire group.
Buying procedures in a given company may or may not
allow preselling. If it is an option, the salesperson should
work with the individuals comprising the buying group
prior to presenting to the group as a whole. By doing
so, the salesperson can better determine individual and
group interests and motives and possibly build a positive
foundation for the group presentation. Preselling can also
reveal the roles of the individuals in the buying center, as
discussed in Chapter 3. Knowing who the decision maker
is, along with the other roles such as users and influenc-
ers, is crucial for success
in group sales interac-
tions. The importance
of preselling is discussed
in “Selling in Action:
Preselling Strategies.”

preselling Salespeople present
their product/service to individual
buyers before a major sales dialogue
with a group of buyers.

Selling in Action
Preselling Strategies
Salespeople at a logistics company spend a lot of time
preselling people from different business functions within
a buying organization. The company helps manufacturing
companies improve processes throughout their supply
chain. The supply chain services impact many different
business functions, such as warehousing, logistics,
accounting, finance, and information technology. Each of
these business functions has different needs and defines
value in different ways. So, it is critical to identify the key
concerns of each business function before conducting
sales dialogue with the entire group.

The typical strategy is to meet individually with
someone from each buying function to determine
the desired value. Sometimes it is not possible to
meet with the different functions personally, so a
survey or e-mails are used to get the information
needed by the salesperson. This preselling approach
prepares the salesperson for the group sales dialogue
where the objective is to get “buy-in” from the buying
group. The most successful salespeople communicate
the value desired by each business function, and
then summarize the total value the entire company
would receive from using all of the supply chain
services.15

163CHAPTER 7: Sales Dialogue: Creating and Communicating Value

7-7a Sales Tactics for Selling
to”Groups
Assuming that the salesperson or sales team has planned
a comprehensive sales dialogue and done as much pre-
selling as possible, there are some specific sales tactics
that can enhance presentations to groups. Sales tactics
for group presentations fall into three general categories:
arrival tactics, eye contact, and communications tips dur-
ing presentation delivery.

7-7b Arrival Tactics
Try to arrive at the location for the meeting before the
buying group arrives. This provides an opportunity to
set up and check audio-visual equipment, prepare col-
lateral material for distribution to the group, and be-
come familiar and comfortable with the surroundings.
It also sets the stage for the salesperson to greet indi-
viduals from the buying team personally as they enter
the room. In a symbolic way, it also signals territorial
command, or that the salesperson is in charge of the
meeting. Although the control of the meeting is typi-
cally shared with the buying group, arriving first sends
a message that the salesperson is prepared to start
promptly at the appointed time, thus showing respect
for the buyer’s time.

From the very beginning, the salesperson is hop-
ing to connect with each individual in the group,
rather than connecting only at the group level. By ar-
riving first, the salesperson may have the opportunity
to talk briefly with each individual. If nothing more,
a friendly greeting, handshake, and introduction can
help establish a rapport with individuals in the group.
When not allowed to arrive first, salespeople should
attempt individual introductions when joining the
group. If that is not practical, salespeople must try to
engage each individual through eye contact and, if ap-
propriate, introductory remarks early in the presenta-
tion that recognize the individual interests of those
present. For example, a salesperson for a food service
company might begin a presentation to a hospital with
the following:

Thank you for the opportunity to discuss our
food service programs with you today. In plan-
ning for our meeting, I recognize that the di-
etary group is most concerned about the impact
of any proposed change on the quality of patient
care. Linda (the head dietician), I believe we
have a program that will actually enhance the
quality of care that your patients receive. John

(the head of !nance), we will also propose an
ef!cient, cost-effective alternative”.”.”.

Opening remarks such as these, when kept brief,
can be most effective in building involvement with all
individuals in a small group.

7-7c Eye Contact
For both small and large groups, establishing periodic
eye contact with individuals is important. With small
groups, this is easily accomplished. With larger groups,
especially formal presentations where the salesperson is
standing and the group is sitting, there may be a tenden-
cy to use the so-called overhead approach.!This method
calls for looking just over the heads of the group, with
the idea that those seated farthest from the presenter
will feel included as part of the group. This method
should be avoided. It might be fine for a formal speech
to a large audience in a convention hall, but it is far too
impersonal for groups of 10 to 25 individuals. Also avoid
a rapid scanning from side to side. This gives the ap-
pearance of nervousness and is ineffective in connect-
ing with individual group members. The most effective
eye contact is to try to connect with each individual or
small subgroups for only a few seconds, moving through
the entire group over the course of the presentation.
Professional entertainers often use this method to con-
nect with audience members, and salespeople can do
the same.

7-7d Communications Tips
When selling to groups, it is essential to make all
members of the group feel that their opinions are
valuable. It is also important to avoid being caught
in the middle of disagreements between members of
the buying group. For example, if one member likes
the salesperson’s proposal and another thinks it is too
expensive, any resolution of this disagreement must be
handled carefully. Although the salesperson may pres-
ent information that resolves the issue, in some cases,
disagreements among group buying members may be
resolved outside the meetings. It is to the salesperson’s
advantage if disagreements can be handled during
the presentation, as it keeps the sales process mov-
ing; unresolved issues can stall the sales process. As
an example of how salespeople can play a peacemaker
role, consider this exchange:

Buyer A: “I really like this system and think we
should install it as soon as possible.”

164

Buyer B: “I like it too, but it is way too expensive.
Is there a less expensive alternative?”

Buyer A: “Sure, but it will not do the job.”
Salesperson: (Directed to Buyer B) “Could I add

something here? I believe we have a
cost-effective system and that our lease-
to-purchase plan reduces the capital
expenditure and allows a fa-
vorable payback period.
Could we take an-
other look at the
numbers?”

The point is that sales-
people must be diplomatic as
a participant in discussions
that might develop between
members of the buying group.
This sometimes means remain-
ing silent while the discussion
comes to a resolution, and
sometimes it means playing an
active role. There are no hard
and fast rules in this area, and
salespeople must simply use
their best judgment to guide
their actions.

In delivering group pre-
sentations, it is important to
maintain contact with group members. Thus, reading
or overreliance on densely worded slides should be
avoided. Think of slides and other audio-visual aids as
support tools, not as a “roll-and-scroll” presentation to
be read to the group. Natural movement can also en-
hance contact with the group. Too much pacing about
can be detrimental to holding the group’s attention,
just as remaining tethered to a laptop can detract from
group communication. When possible, salespeople
should stand to the left of visual aids. This way, it is
easier to direct attention to the visual aids while mo-
mentarily deflecting attention away from the speaker.
In this way, the salesperson becomes an unobtrusive
narrator and the visual aid has maximum impact.

Body language can add or detract to sales ef-
fectiveness in the group setting. In general, posture
should reflect an energetic, relaxed person. Conven-
tional wisdom dictates that presenters should avoid
contact with their own bodies while presenting. Sales-
people who stuff their hands in their pockets, scratch
their heads, or cross their arms are creating distrac-
tions to their own messages.

7-7e Handling Questions
in Group Dialogue
Just as is the case with sales dialogue to individuals,
questions from buyers in a group are an important
part of the buyer–seller interaction that leads to a pur-

chase decision. Salespeople should recognize that
questions fill information gaps, thus allow-

ing buyers to make better decisions. In
a group setting, questions can also

add a dramatic element, making
the presentation more interest-
ing for those in attendance. To
the extent that it is possible,
salespeople should anticipate
group questions, and then
decide whether to address
the question before it arises

or wait and address the ques-
tion should it arise during the
presentation.

To handle questions that
arise during the meeting ef-
fectively, salespeople should
listen carefully and maintain
eye contact with the person
asking the question. Gener-
ally, it is a good idea to repeat
or restate the question. Ques-

tions should be answered as succinctly and convincingly
as possible.

By listening carefully to the question, salespeople
should show proper respect to the person asking the
question. At the same time, they are helping direct the
attention of the group to the question. As the question
is posed, it is important for the salesperson to maintain
eye contact with the person asking the question. Again,
this demonstrates respect for the person and for his
or her right to ask questions. This may require some
practice, as salespeople might be tempted to glance
at sales materials or perhaps their watches when the
attention is shifted to the person asking the question.
To do so could insult the questioner, who might feel
slighted by the lack of attention.

In many cases, it is a good idea to repeat or even
restate the question. This will ensure that everyone
understands the question. It also signals a shift from
the individual back to the group. Additionally, it allows
the salesperson to state the key issue in the question
succinctly. This is often important because not all
questions are well formulated and they are sometimes

Salespeople need to repeat or restate
questions from individuals in a group
presentation.

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165CHAPTER 7: Sales Dialogue: Creating and Communicating Value

accompanied by superfluous information. Consider
this dialogue:

Buyer: “You know, I have been thinking about the
feasibility of matching our Brand X comput-
ers with Brand Y printers. Not too long ago,
matching multiple brands would have been a
disaster. Are you telling me now that Brand X
computers are totally compatible with Brand Y
printers?”

Seller: “The question is: Are your computers com-
patible with our printers? Yes they are—
with no special installation requirements.”

When restating questions,
salespeople must be careful
to capture the essence of the
buyer’s concern accurately.
Otherwise, they could be per-
ceived as avoiding the question
or trying to manipulate the
buyer by putting words in his
or her mouth. Therefore, when
in doubt, it is a good practice
when restating a question to
seek buyer confirmation that the restated question is
an accurate representation of the original question. For
example, salespeople might say, “Ms. Jackson, as I un-
derstand the question, you are concerned about the ef-
fectiveness of our seasonal sales promotion programs.
Is that correct?”

When you are answering questions, there are three
guidelines to follow. First, salespeople should not at-
tempt to answer a question until he or she and the group
members clearly understand the question. Second,
salespeople should not attempt to answer questions
that they are not prepared to answer. It is far better
to make a note and tell the group you will get back to
them with the answer than to speculate or give a weak
answer. Third, try to answer questions as directly as
possible. Politicians are often accused of not answering
the questions posed during press conferences, but
rather steering the answer toward what they wish to
talk about. Salespeople will quickly lose credibility if
they take a long time to get to the point in their answer.
To answer convincingly, start with a “yes” or “no,” and
then explain the exceptions to the general case. For

example, say, “Yes, that is generally the case. There are
some exceptions, including!.!.!.” is preferred to answer-
ing, “Well that depends!.!.!.!,” and then explaining all of
the special circumstances only to conclude with “but,
generally, yes, that is the case.”

When answering questions, it is important to ad-
dress the entire group rather than just the individual who
asked the question. Otherwise, salespeople may lose the
attention of other group members. When salespeople
conclude their answers, they have the option of going
back to the person who asked the question, continuing
their presentation, or taking a question from another
group member. Salespeople can rely on their common

sense and experience to de-
cide what is appropriate in a
given situation.

In larger groups, it is
particularly important to
avoid getting locked into a
question-and-answer dia-
logue with one person if
other people are showing an
interest in asking questions.
Indeed, it is important to
take all questions, but it is

also important to spread the opportunity to ask questions
around the room, coming back to those who have multi-
ple questions until all questions are answered. If one per-
son is a dominant force within the buying group, other
group members will typically defer their questions until
that person has asked all of their questions at different
points in the presentation.

When selling to a group, salespeople should have
a clear objective for their presentation. To get the
group to take the desired action, salespeople must
make a convincing case, motivate the group to take
action, and make it easy for the group to take the de-
sired action. Some of the methods for handling buyer
objections and earning a commitment, as will be dis-
cussed in Chapter 8, will prove useful for accomplish-
ing these tasks.

In some cases, the group will wish to deliber-
ate and let the salesperson know of their decision
at a later time. This is not uncommon because the
group may need a frank discussion without outsid-
ers to reach a final decision. Should this occur, sales-
people should be certain that the group has all the

In answering questions during
a group dialogue, salespeople
should listen carefully, answer

directly, and address the individual
asking the question as well as the

others in the group.

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information they need or offer to provide the needed
information promptly and offer to follow up within a
specified time period.

The process for planning and delivering a group
sales dialogue is much the same as it is for sales dia-

logue with individuals. By paying attention to the
special considerations in this section, salespeople can
build on their experience with sales interaction with
individuals and engage in effective sales dialogue with
groups.

167CHAPTER 7: Sales Dialogue: Creating and Communicating Value

O F F I C E F U R N I T U R E C O M PA N Y

B A C K G R O U N D
The Office Furniture Company specializes in providing
customers with office furniture solutions that are customized
and designed to address productivity and aesthetic needs.
It sells office furniture from the leading manufacturers,
but creates value by analyzing the specific needs of each
customer and then developing a customized design to meet
these needs. There are several competitors in the office
furniture industry, but most of them focus on low prices.
Customers usually pay more for an Office Furniture Company
solution, but receive more value in terms of increased
productivity and business effectiveness.

C U R R E N T S I T U AT I O N
Naiser & Associates is a small, but growing, accounting firm.
The company plans to add more office staff and to increase
the number of its accountants. This planned growth means
that the firm will have to find new office space, because
it will have outgrown its current location. Because it plans
continued growth in the future, it is looking for a new office
that will accommodate current and future growth objectives.
Naiser & Associates also wants to purchase new and better
furniture for its new office.

You are a sales representative for the Office Furniture
Company and have been meeting with partner, Frank Naiser,
as well as accountants and staff at Naiser & Associates. Based
on these meetings, you have identified the following office
furniture needs:

1. Naiser & Associates has typically met with clients at their
offices. It would like to have most client meetings in the
future at its new office. This means they desire furniture
for these meetings that facilitates these meetings and
communicates a professional and customer-friendly image.

2. Their current office furniture did not provide much
storage for accountants or staff. Thus, important
documents were stored at the end of a long hallway.
Employees wasted a lot of time trying to retrieve
important documents. Thus, they desire furniture that
provides more storage for each employee.

3. Technology is changing at a rapid pace, so furniture that can
be easily adapted to new technologies is very important.

4. As Naiser & Associates continues to grow, it will
probably have to reorganize itself and is likely to need
to adapt the physical office to different organizational
arrangements. Office furniture that is adaptable to
different configurations is important.

You have created an office equipment design for Naiser &
Associates that addresses each of the issues presented above
and are preparing for a meeting with the partner, Frank
Naiser, the office manager, and a representative for the firm’s
accountants. You know that a competitor has already made a
presentation to the same group and their offer will cost less
than what you will be able to charge.

Q U E S T I O N S
1. How will you try overcoming the lower price offer by a

competitor?

2. What specific value can you offer Naiser & Associates?

3. How can you most effectively communicate the value
of your proposed office equipment design?

4. What sales aids and proof providers could you use to
make your presentation more engaging and effective?

R O L E P L AY
Situation: Read the Office Equipment Company case.

Characters: Frank Naiser, partner; Jennifer Hamman, office
manager; Jessica Attaway, accountant representative

Scene:
Location—Current Naiser & Associates office.

Action—Role play this meeting. Be sure to address the specific
needs identified earlier, to communicate effectively with each
person in the meeting, and to incorporate sales aids appropriately.

After completing the role plays, address the following questions:

1. How would you evaluate the role play in terms of
interesting, understandable, and engaging sales
dialogue? What improvements would you recommend?

2. How well did you involve each person in the meeting?
What improvements would you recommend?

3. Evaluate the effectiveness of each sales aid used?
What improvements in the use of sales aids would you
recommend?

7 CHAPTER CASE

168

CHAPTER ROLE PLAY
Sales Dialogue: Creating and Communicating Value7

Features

Capability of National
Networks Capability of Competitor

Benefits

Service and repair
centers

175 affiliated service and repair
centers across the United States

21 affiliated service and repair
centers across the United States

Ensures fast and reliable repairs
for hardware and software

Installation and
testing

Installation and testing done by
National Networks employees

Installation and testing
outsourced to several different
companies

Knowledge that all installations
will be done the right way

Customer call center 24 hours, 7 days per week, and
staffed by National Networks
employees

24 hours, 7 days per week,
and staffed by an outsource
commercial provider

Knowledgeable staff always
available to assist All Risk
Insurance employees with
problems

A L L R I S K I N S U R A N C E A N D N AT I O N A L
N E T W O R K S

B A C K G R O U N D
The All Risk Insurance Company has 3,200 sales agents
spread across five regions that cover the United States. They
are moving toward the development of a national network
that would tie each of the agent offices together with the
regional offices and corporate headquarters. The improved
communication capability will allow all company personnel
to have full access to customer records and form the core
of a comprehensive customer relationship management
system that is to be rolled out in 18 months.

C U R R E N T S I T U AT I O N
Jim Roberts is a network account specialist for National
Networks, a specialist in large corporate network solutions,
and has been working with the technology-buying group
at All Risk Insurance for several months now. Roberts has
worked through several meetings with the buying group
members and has a meeting scheduled for next Wednesday
to present his recommendations and demonstrate why
they should select National Networks as the supplier for this
sizable project. Joyce Fields (director of information systems),
John Harris (comptroller and CFO), Mike Davis (director of
agent services), and Dianne Sheffield (director for customer
services) will make the final decision. Roberts also knows
that there is one other competitor who will be making a
presentation in hopes of landing the project. The equipment
both vendors are proposing is virtually identical due to the

detailed specifications that All Risk Insurance had included in
the RFP. Prices are also likely to be pretty similar. The decision
will most likely come down to the services each competitor
includes in their proposals. Based on the information that
Roberts has collected from different sources, he has come
up with a comparison of customer services of National
Networks and the competitor (see the table below) offer.

R O L E P L AY
Situation: Read “All Risk Insurance and National

Networks” background and Current Situation.

Characters: Jim Roberts—salesperson for National
Networks; Joyce Fields—director of information
systems for All Risk Insurance; John Harris—
comptroller and CFO for All Risk Insurance;
Mike Davis—director of agent services for All
Risk Insurance; Dianne Sheffield—director for
customer services for All Risk Insurance

Scene: Location—A conference room at All Risk
Insurance.

Action—As described, Jim Roberts is
presenting the National Networks proposal
for a corporate computer network linking All
Risk Insurance’s corporate offices with each of
its five regional offices and 3,200 sales agents
out in the field.

Role play Roberts’s presentation of each of the feature-benefit sets
incorporating sales aids suitable for use in the group presentation.

169CHAPTER 7: Sales Dialogue: Creating and Communicating Value

8 Addressing Concerns and Earning Commitment

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LEARNING OBJECTIVES
After studying this chapter, you should be able to:

8-1 Explain why it is important to anticipate and overcome
buyer concerns and resistance.

8-2 Understand why prospects raise objections.

8-3 Describe the five major types of sales resistance.

8-4 Explain how the LAARC method can be used to overcome
buyer resistance.

8-5 Describe the recommended approaches for responding to
buyer objections.

8-6 List and explain the earning commitment techniques that
secure commitment and closing.

RESISTANCE BUSTERS
When Martino Hroncich, a New Jersey-based pharmaceutical sales rep
for Abbot Laboratories, knocks on physicians’ doors, he welcomes their
resistance to his pitch. That’s because he figures a customer who resists is at
least interested enough to raise questions.

After finishing this chapter, go to PAGE 189 for STUDY TOOLS.

“If someone is uninterested, they don’t bother resist-
ing,” Hroncich says. “They’ll just say ‘Mm-hmm. Gotta
go.’ They’ll say ‘yes’ me to death. But if they say, ‘I don’t
want to buy, and here’s why,’ there’s room for further
interaction.”

As Hroncich has learned, resistance won’t neces-
sarily stop a sale. It can present a formidable obstacle
unless you know how to deal with it, says University of
Arkansas psychology professor Eric S. Knowles, coauthor
of Resistance and Persuasion (Lawrence Erlbaum Asso-
ciates, 2004). Knowles has found that resistance comes
in three basic forms: resistance to the salesperson or
pitch; resistance to the product or service; and resis-
tance to change.

“The salesperson should listen carefully because
the best response varies depending on the nature of the
resistance. Strategies that work for one kind of resistance
are likely to be ineffective for the others,” Knowles says.
Here are some examples of how you can avoid, minimize,
or remove resistance in all its forms—and persuade your
prospects to comply and buy.

1. Sidestep skepticism directed at you

Customers who feel they are being pressured, manipu-
lated, or pushed automatically put up walls. One of the
best ways to avoid those obstacles, Knowles says, is to
soft-pedal your pitch by redefining your relationship
with the customer. Think of yourself as a collaborator, a
consultant, or a partner.

170

Cheryl Grimes, a regional vice president for
AmeriVault, an online data-backup and recovery service
in Waltham, MA, says she solicits customers’ agreement
throughout every step of the sale with such questions as,
“Is it OK if I spend a few minutes on the phone telling you
about x?” “Is it OK if I ask you a few questions about your
environment?” Such questions give clients control over
the conversation, so they don’t feel pushed or pressured.

In other words, a successful sales pro engages pros-
pects as a partner, not as a predator. “If you deal with
people on the basis of mutual trust, respect, agreements
and commitments, resistance never becomes manifest,”
says Jacques Worth, a Media PA, sales trainer and author
of High Probability Selling (Bookworld Services, 1997).
He offers this example of how the collaborative tech-
nique worked for him. “Six weeks ago the vice president
for a large capital-equipment manufacturer asked me to
submit a proposal to train his entire sales force. I told
him we had to first determine if I could meet his condi-
tions of satisfaction. So we jointly worked out all of the
details of a customized program, including price, to meet
his requirements. As a result, I got the contract without
any competitive bids.”

“No one wants to be ‘sold.’ That implies giving up
control. Even when I am shopping, I don’t want a sales-
man, but rather someone who can help guide me to make
the right purchase,” says Bob Cannon, a Chagrin Falls,
OH, sales consultant. “A person who feels forced into a
decision will shut down, and the exchange will quickly
come to an end.”

Instead of focusing on making the sale, Cannon
suggests that you view the situation from the prospect’s
perspective. “Ask questions to help your customer better
define their needs, so they can choose the best solution
for themselves—even if you don’t provide it.”

Cannon’s questions include:

1. What would you like to see happen? What would
you like to accomplish?

2. How do you plan on using this product?

3. Do you have any special requirements?

4. Will you be using this product regularly?

Such questions convey that you are interested in meeting
customers’ needs—not just in making a sale. The customers’
answers will help you tailor your presentation accordingly.

171CHAPTER 8: Addressing Concerns and Earning Commitment

2. Reduce resistance to your product

If your prospect is skeptical about your product or ser-
vice, it may be best to address their fears with hard facts,
guarantees, or proof that your product is more affordable
or of higher quality than the alternatives or the competi-
tion. “A real estate agent hearing a client’s concern about
the high mortgage payments on a home would do well
to reframe the house purchase as an investment that you
can live in—unlike such alternative investments as a CD
or a mutual fund,” Knowles says. Of course, you have to
know the source of your prospects’ resistance in order to
respond to it, “Get to the real reasons people are against
your idea, suggestion, or product. Dig deep…find out
what their objections are,” says Rick Mauer, author of
Beyond the Wall of Resistance (Bard Press, 1996) and
Why Don’t You Want What I Want (Bard Press, 2002).

Hroncich, the pharmaceutical rep, prepares for
such product resistance. “I try to anticipate the various
issues that can arise, so when I make the call, I am ready.
For example, I recently went to see a cardiologist to dis-
cuss hypertension medication. He was worried because
it contained an ingredient that causes constipation. So I
showed him that in a study of 11,000 patients there was
just a 1 percent incidence of constipation. I was able to
close the deal by addressing his specific issues.”

Cost was the main source of customer resistance for
Linda Finkle, a Potomac, MD, executive coach who for
18 years owned an executive search firm. “Since most
folks feel they can hire without incurring the fees that re-
cruiters charge, I would always have resistance unless I
identified how my services could satisfy their problems.
I’d ask lots and lots of questions, such as, How long does it
typically take you to hire the right person? Have you had
problems with candidates accepting offers? How does
the work get done if the position is not filled for three
months?

“If I learned that they usually have to make three offers
before one got accepted, I could discuss the cost of their time
to interview, screen, check references—only to have offers
turned down. What would it be worth to them to have their
first offer accepted? I had to demonstrate an ROI for using
my recruiting services—or else I was dead in the water.”

3. Move inertia-based resistance out of the way

Resistance to change is often the most difficult to coun-
ter. How can you motivate people to buy when they are
content with the status quo?

Let’s say a customer asks why she should move from
her current supplier over to your company, and you react
by eagerly explaining your product’s benefits. That’s the
wrong tactic for this form of resistance and only serves

to make the customer even more uncomfortable. “This
sets up the traditional buyer–seller dance, and the buyer
begins to negotiate for concessions to stall and delay the
process,” says Bill Gager, a Chester, CT, sales consultant
and coach.

Rather than trying to push the customer forward to-
ward the sale, Gager has found that you may be able to
soften resistance by remaining neutral or—as a form of
reverse psychology—even pulling back. “If a customer
asks, ‘Why should I move over to your company?’ the
salesperson could reply, ‘I’m not sure you should. I know
why it’s made sense for other companies, but I’m not
sure if it makes sense for you. I would need to find out
more about your situation.’”

Knowles’s research has shown that by
acknowledging—even agreeing with—the customer’s
resistance, you may be able to defuse its power. Gager
trains his clients to use that principle, however para-
doxical it may seem. “I work with a lot of commercial
bankers who prospect small- and medium-size compa-
nies. Their rejection rate was very high, and the cus-
tomer’s number one objection was ‘I’m happy with my
current bank,’ ” Gager says.

“But the bankers dramatically increased appoint-
ments if they brought up the objection before the cus-
tomer did by opening the conversation like this: ‘John, I
know you’re probably happy with your current bank. The
reason I’m calling is to set a time for us to get together
so that I can share with you how we’ve been able to help
businesses similar to yours.’ ”

It also helps if you raise the customer’s self-esteem.
“People always feel better about trying something new if
they are reminded of how competent they are,” Knowles
says. “When one feels under assault, one resists, but
when one feels confident, competent and secure, there
is less need to resist. Our research shows that people
who receive a boost to self-esteem are more open to per-
suasive messages.”

Dave Anderson, a management consultant and au-
thor of Selling Above the Crowd (Horizon Business Press,
1999), says one savvy salesperson used that technique on
him when he was shopping for a new watch. “When I saw
the price of the watch, I was shocked. Without blinking, the
salesperson said, ‘You’re right—the Piaget is not cheap—
but with your standards and expectations do you think you’d
be happy with anything that was? In fact, let me show you
why this watch is worth every dime you’re investing in it.”

Thanks to the salesman’s ego-boosting strategy, An-
derson says, “my resistance was gone, and I still wear the
watch today.”

Maryann Hammers

172

ADDRESSING CONCERNS
An objection or sales resistance is anything the buyer
says or does that slows down or stops the buying process.
The salesperson’s job is to uncover these objections and
answer them to the prospect’s or client’s satisfaction. It
is very difficult for a salesperson to earn commitment
if there is doubt or concern on the buyer’s part. Thus,
the salesperson must uncover and overcome any and all
objections. In doing so, the salesperson strengthens the
long-term relationship and moves the sales process clos-
er to commitment. At the very least, these concerns open
dialogue between the salesperson and the prospect.

A brief discussion follows on why it is important for
salespeople to anticipate and negotiate buyer concern. Fol-
lowing a discussion of why prospects raise objections, this
chapter covers the five major types of objections. Next, dif-
ferent approaches to
handling sales resis-
tance are explained.
Finally, techniques
to earn commitment
are reviewed.

8-1 ANTICIPATE AND NEGOTIATE
CONCERNS AND RESISTANCE

Over the years, many sales forces were taught that
sales resistance was bad and would likely slow down
or stop the selling process. Salespeople were also told
that if they received resistance, then they had not done a
good job explaining their product or service.

These notions have changed over the years to where
objections are now viewed as opportunities to sell. Sales-
people should be grateful for objections and always treat
them as questions. The buyer is just asking for more infor-
mation. It is the salesperson’s job to produce the correct
information to help buyers understand their concerns.
Inexperienced salespeople need to learn that sales resis-
tance is a normal, natural part of any sales conversation.
The prospect that does not question price, service, war-
ranty, and delivery concerns is probably not interested.

Although many salespeople fear sales resistance from
their prospects or customers, it should be viewed as a nor-
mal part of the sales process. At a minimum, the salesper-
son has the prospect involved. The salesperson can now
start to determine customer interest and measure the
buyer’s understanding of the problem. In some situations,
a salesperson cannot overcome resistance (e.g., delivery

dates do not match; technology does not fit). Under
these circumstances, the successful salesperson grace-
fully ends the sales call while leaving open the option for
further business.1 Finally, if the sales resistance is handled
correctly, the outcome can lead to customer acceptance.

8-2 REASONS WHY PROSPECTS
RAISE OBJECTIONS

There are many reasons why prospects will raise objections.

1. The prospect wants to avoid the sales interview.
Some prospects do not want to create any more
work for themselves than they already have. A
sales interview takes time, and buyers already have
a busy schedule handling normal day-to-day tasks.
Buyers may want to avoid the salesperson because
they view his or her call as an interruption in their
day. Most buyers do not have the time to see every
salesperson that knocks on their door.

2. The salesperson has failed to prospect and qualify
properly. Some-
times, poor pros-
pects slip through
the screening

Good salespeople
will anticipate their
buyers’ concerns.

Ca
rt

oo
nr

es
ou

rc
e/

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ut

te
rs

to
ck

.c
om

Many salespeople fear sales resistance
from their prospects or customers.

sales resistance Buyer’s
objections to a product or service
during a sales presentation.

173CHAPTER 8: Addressing Concerns and Earning Commitment

process. The prospect may have misunderstood
the salesperson’s intentions when asked for the in-
terview. The salesperson should attempt to qualify
the prospect during the sales call. For example, a
computer software company used telemarketing
to qualify prospects. Leads were turned over to the
salesforce for in-person visits. The major product
line was an inventory control package that cost
$20,000. The salesperson asked the owner of the
company if she had a budget for this project. The
owner responded that her budget was $5,000. The
salesperson gave the owner the names of a couple
of inexpensive software companies, thanked the
owner for her time, and moved on. The owner was
not about to spend $20,000 and said so early in the
sales conversation. That resistance actually helped
the salesperson. What if this condition had stayed
hidden for four to six weeks while the salesperson
continued to call on the owner? Both the salesper-
son’s and owner’s time would have been wasted.

3. Objecting is a matter of custom. Many purchasing
agents have a motto never to buy on the first call
with a salesperson. Trust has not yet been devel-
oped and a thorough understanding of the sales-
person, his or her company, and the products has
not been developed. The
buyer will need most of
this information to make a
decision. Many buyers may
say no during the first few
calls to test the salesper-
son’s persistence.

4. The prospect resists
change. Many buyers
like the way that they are
currently doing business.
Thus, buyers will tell the
salesperson that they are
satisfied with what they
have now. Many prospects
simply resist change be-
cause they dislike making
decisions. Prospects may
fear the consequences
of deciding and dread
disturbing the status quo.
A purchase usually involves
dismissing the current
supplier and handling
all of the arrangements
(price, terms, delivery, and

product specifications) to move the new supplier
in smoothly. Once a buyer is comfortable with his
or her suppliers, he or she will generally avoid new
salespeople until a major need arises.

5. The prospect fails to recognize a need. The pros-
pect may be unaware of a need, uninformed about
the product or service, or content with the situa-
tion as it is. In any case, the lack of need creates no
motivation to change suppliers. Many purchasing
agents were content with their overnight mail
service and were slow to recognize the fax ma-
chine as a viable solution to getting information
to their customers quickly. The poor quality of the
reproduced document also turned away many
buyers. Only when the need for the information
outweighed the aesthetics of the document did
the buyers readily embrace the fax machine.

6. The prospect lacks information. Ultimately, all
sales resistance comes back to the fact that the
prospect simply lacks the information he or she
needs to make a decision comfortably. The sales-
person must view this as an opportunity to put the
right information in front of the buyer. Exhibit 8.1
summarizes why prospects raise objections and
lists strategies for dealing with them.

Exhibit 8.1

Why Prospects Raise Objections and Strategies
for Dealing with Them

! Buyer wants to avoid the sales interview.
Strategy: Set appointments to become part of the buyer’s daily routine.

! Salesperson has failed to prospect and qualify properly.
Strategy: Ask questions to verify prospect’s interest.

! Buyer will not buy on the !rst sales call.
Strategy: A regular call on the prospect lets the prospect know the salesperson
is serious about the relationship.

! Prospect does not want to change the current way of doing business.
Strategy: Salesperson must help the prospect understand there is a better
solution than the one the prospect is currently using.

! Prospect has failed to recognize a need.
Strategy: Salesperson must show evidence that sparks the prospect’s interest.

! Prospect lacks information on a new product or on the salesperson’s company.
Strategy: Salesperson must continually work to add value by providing
useful”information.

174

8-3 TYPES OF SALES
RESISTANCE

Although there appears to be an infinite number of ob-
jections, most fall into five or six categories. Buyers use
delay techniques to avoid taking immediate action. Com-
ments such as “Give me a couple of weeks to think it
over,” can save the buyer the discomfort of saying no at
the end of a presentation. “Your price is too high,” or “I
have no money,” are easy ways for purchasing agents not
to buy a salesperson’s offering. Price is probably the most
often cited objection and usually is not the most impor-
tant issue. It is obvious that buyers do not buy merely
based on price; if this were true, then the lowest price
supplier would get all of the business and eventually be
the only supplier left selling the product. “No need at
this time,” is another typical objection. The buyer may
not be in the market to purchase at this time.

It is not unusual for salespeople to encounter product
objections. Most buyers have fears associated with buying
a product. The buyer might be afraid that the product will
not be as reliable as the salesperson claimed. Not only do
the salespeople have to demonstrate that their product will
perform at the level they say it will, but they must also show
how it stacks up to the competition. A competitor intro-
ducing a new technology (e.g.,
e-commerce) may change the
way a salesperson competes
on a particular product line
(e.g., office products).

Many buyers are con-
stantly assessing their sup-
plier on service (e.g., deliv-
ery, follow-up, warranties,
guarantees, repairs, installa-
tion, and training). If the ser-
vice is good and department
heads are not complaining,
the buyer is likely to stay with
the status quo. Service is one
variable that companies and
salespeople can use to differ-
entiate their product. Enter-
prise Rent-a-Car will deliver
cars to the home of the renter
and has made this a differ-
ence factor in its advertising.
A salesperson for a wholesale
distributor may make the
point to a prospect that his or

her fresh fruit, fish, and meat can be delivered daily when
competitors deliver only three times per week.

Many buyers will feel intense loyalty to their
suppliers and use this as a reason not to change. Buyers
may be equally committed to the salesperson from whom
they are currently buying. As a nonsupplier to the com-
pany, the salesperson must continue to call on the buyer
and look for opportunities to build trust with the pros-
pect. The salesperson may want to investigate whether
the buyer has had any previous bad experience with his
or her company that is causing the buyer not to do busi-
ness with the company. Some salespeople and their buy-
ers will not hit it off. The salesperson has to recognize
these feelings and move on if several calls do not result in
an eventual sale.

At first glance, an inexperienced salesperson may
be overwhelmed with the thought of how he or she will
handle all of the different types of objections buyers will
raise. Salespeople need to develop skills in evaluating
objections.2 It does not take long, however, for a sales-
person to learn that most objections fall into just a few
categories. When preparing to buy a product or service,
a prospect generally obtains information in five areas:
need, product or service features, company or source,
price, and timing of the buy. Objections could come
from any of these areas, as shown in Exhibit 8.2.

Exhibit 8.2

Types of Objections

No Need Buyer has recently purchased or does not see a need
for the product category.
“I am not interested at this time.”

Product or Service
Objection

Buyer might be afraid of product reliability.
“I am not sure the quality of your product meets
our needs.”
Buyer might be afraid of late deliveries, slow repairs, etc.
“I am happy with my current supplier’s service.”

Company Objection Buyer is intensely loyal to the current supplier.
“I am happy with my present supplier.”

Price Is Too High Buyer has a limited budget.
“We have been buying from another supplier that
meets our budget constraints.”

Time/Delaying Buyer needs time to think it over.
“Get back with me in a couple of weeks.”

175CHAPTER 8: Addressing Concerns and Earning Commitment

8-3a Need Objections
Without a need, prospects have little or no reason to
talk to a salesperson. If the prospect has been quali-
fied properly, the salesperson believes the prospect has
a need for the product. Many buyers have been condi-
tioned to say automatically, “I do not need your prod-
uct” (i.e., need objection). This may be the result of
the buyer being out of budget or not having the time
to look at your product or proposal. Other buyers may
respond, “We are getting along just fine without your
product. No one in my company is asking for your prod-
uct. Call back in a few months and maybe something
will change.”

The salesperson has a tough challenge ahead if the
buyer sincerely believes they have no need. It is the
salesperson’s job to establish a need in the buyer’s mind;
if the salesperson cannot do this, then logically, an objec-
tion can be expected.

Many prospects do not know they have a specific
need for a product until a situation occurs that makes
them aware of it (i.e., engineering calls and needs a spe-
cial software package). Therefore, objections to the need
require the salesperson to stimulate the need awareness
of the prospect with relevant information—features and
benefits that pique the prospect’s interest. Exhibit! 8.3
summarizes a number of the no-need objections.

8-3b Product or Service Objections
Often the product or service lacks something that the
buyer wants and the salesperson cannot deliver. A com-
petitive advantage for a large software firm (Ontario) is
that they have a 24-hour/800 service available to all of
their customers. Their number-one competitor offers
only an 8:00!”.#. to 8:00!$.#. call-in phone service. For
those clients who run three shifts and need 24-hour ser-
vice, their choice is easy: They buy from Ontario.

Other prospect objections could be simply
emotional—the prospect does not like the way the prod-
uct looks or feels (i.e., product or service objection).
Still others have a problem with the product’s performance

characteristics (i.e., “I
need a copier that has
color and staples in the
bin”). The salesperson
must also do an adequate
job of fact-finding and
qualifying. Many of these
issues can be resolved
by knowing what the
prospect is looking for.

Objections toward the product center on under-
standing the fit between the product and the customer’s
needs. The salesperson’s job is to learn what product fea-
tures are important to the buyer and sell those features.
Products are bundles of benefits that customers seek to
fit their needs. Tying the benefits to the customer’s needs
helps the prospect bridge the gap from no-need to need.
Exhibit 8.4 summarizes a number of product or service
objections.

8-3c Company or Source Objections
Marty Reist is a manufacturer’s representative for a small
company in the sporting goods industry. He has to sell
against many large competitors. Sales representatives from
Nike, Titleist, and Reebok probably do not have to work

Exhibit 8.3

Possible Need Objections
“I have all I can use (all stocked up).”
“I do not need any.”
“The equipment I have is still good.”
“I am satis!ed with the company we use now.”
“We have no room for your line.”

need objection Resistance to
a product/service in which a buyer
says that he or she does not need
the product/service.

product or service
objection Resistance to a
product/service in which a buyer does
not like the way the product/service
looks or feels.

Exhibit 8.4

Possible Product
or Service Objections

“I do not like the design, color, or style.”
“A maintenance agreement should be included.”
“Performance of the product is unsatisfactory (e.g.,
the copier is too slow).”
“Packaging is too bulky”.
“The product is incompatible with the current
system (i.e., we prefer Apple over IBM).”
“The speci!cations do not match what we have now.”
“How do I know if you will meet our delivery
requirements?”
“The product is poor quality.”

176

as hard to get past the gatekeepers. Reist, in contrast,
must justify his existence every day. “I have never heard of
your company” (i.e., company or source objection) is
something Reist must continually overcome.

Other buyers may be happy with their current sup-
plier. It is not unusual for buyer/seller relationships to last
10 to 15 years and even longer. Robert Carroll, a former
sales representative from Monsanto Agricultural Divi-
sion, heard the following quote from many of his farmers
and farm co-ops, “I’m perfectly happy with Monsanto, my
crops look good. I’ve been buying from them for years,
and they have always treated me right.” This is one of the
hardest objections to overcome, especially if the prospect
feels genuine loyalty to his or her current supplier.

Professional salespeople never criticize their com-
petitors. The salesperson can point out any superior fea-
tures they might have. They can also ask for a single order
and ask for an evaluation against their present supplier.

Another form of source objection is a negative
attitude a buyer might have about the salesperson’s
company or the poor presentation of a previous sales-
person. A buyer might remember a late or damaged
order the company did not properly handle. A former
salesperson may have made promises to the buyer and
did not follow through on them. The salesperson must
investigate any and all source objections. The salesper-
son may uncover source problems that can be over-
come with time. Exhibit 8.5 outlines typical company
or source objections.

8-3d Price Objections
Most sales experts agree that price is the most common
form of buyer resistance.3 This objection has prospects
saying that they cannot afford the product, the price is

too high, or the product is not in their budget at this time
(i.e., price objection). This objection may be a request
for the salesperson to justify to the prospect how they
can afford the product or how they can work it into their
budget. Most salespeople feel the price objection is an
attempt by the buyer to get the salesperson to lower his
or her price. The salesperson must address the price ob-
jection by citing how the benefits (value) outweigh the
cost. To do this, the product’s value must be established
before the salesperson spends time discussing price.4
Many companies never sell at the low-cost option. Stryk-
er Medical sells hospital beds and stretchers to hospitals
and emergency rooms. Stryker never offers the lowest
cost. Stryker’s salespeople almost always hear the price
objection. First, they have to educate their prospects and
customers that their products last 25 to 50 percent lon-
ger than their competitor’s products. They can demon-
strate with evidence, their product will still be around 5
to 10! years after their competitor’s has been discarded.
If one of their stretchers is $1,500 more than their com-
petitor’s, they must break down the price over the entire
life of the stretcher. They can actually show savings over
time. By providing the right information, Stryker can
show value over the competitor’s offering.

Price objections probably occur more frequently
than any other type. Price objections may be used to
cover the real reason for a reluctance to buy. Probing
and asking questions are the salesperson’s tools to get to
the real reasons for a buyer’s objection. Exhibit!8.6 sum-
marizes a number of price objections.

8-3e Time Objections
Buyers use the time objection, or as some salespeople
call it, the stalling objection, to put off the decision to buy
until a later date. Many inexperienced salespeople hear
this technique and believe the prospect is going to buy in
the future, but not today. Some buyers use this technique
to get rid of salespeople
so that the buyer does not
have to reject the sales-
person and his or her sales
proposal formally. Some-
times proposals are very
complex and the buyer
does need time to think
them over. The salesper-
son must be sensitive to
this and not push too hard
to get an answer until the
buyer has had adequate
time to make a decision.

company or source
objection Resistance to a
product/service that results when
a buyer has never heard of or is not
familiar with the product’s company.

price objection Resistance to
a product/service based on the price
of the product being too high for
the buyer.

time objection Resistance to
a product/service in which a buyer
puts off the decision to buy until a
later date.

Exhibit 8.5

Company or Source Objections
“Your company is too small to meet my needs.”
“I have never heard of your company.”
“Your company is too big. I will get lost in the
shu#e.”
“Your company is pretty new. How do I know you
will be around to take care of me in the future?”
“Your company was recently in the newspaper.
Are you having problems?”

177CHAPTER 8: Addressing Concerns and Earning Commitment

It is acceptable for the salesperson to review the reasons
to act now or soon. Waiting can have consequences (e.g.,
prices rise, new tax begins the first of the year) and the
buyer should be made aware of these. Exhibit 8.7 illus-
trates possible time objections.

8-4 USING LAARC: A PROCESS
FOR NEGOTIATING BUYER
RESISTANCE

The term LAARC is an acronym for listen, acknowledge,
assess, respond, and confirm and describes an effective
process for salespeople to follow to overcome sales re-

sistance. The LAARC
method is a customer-
oriented way to keep
the sales dialogue posi-
tive. In the early days of
sales, buyers and sellers

were not always truthful with each other, and manipula-
tion was the norm. Although being persuasive is neces-
sary to be an effective sales representative, having such a
singular focus can have a detrimental effect on customer
rapport and relationships.5 Salespeople who said whatev-
er it took to get an order—who over-promised and under-
delivered and misrepresented their offerings—were
sometimes looked on favorably by their selling organiza-
tion. Professional sellers today want to keep the dialogue
open and build goodwill by adding value to their propo-
sition. By listening to buyers’ concerns and negotiating
through open dialogue, the seller increases the likelihood
of purchase decisions being made on a favorable basis,
and this leads to long-term relationships. Thus, it is the
salesperson’s job to communicate and demonstrate value
when sales resistance arises.

Here is a description of LAARC:
! Listen: Salespeople should listen to what their buyers are

saying. The ever-present temptation to anticipate what
buyers are going to say and cut them off with a prema-
ture response should be avoided. Learning to listen is
important—it is more than just being polite or profes-
sional. Buyers are trying to tell the salesperson some-
thing that they consider important.

! Acknowledge: As buyers complete their statements,
salespeople should acknowledge that they received the
message and that they appreciate and can understand
the concern. Salespeople should not jump in with an
instantaneous defensive response. Before responding,
salespeople need a better understanding about what
their buyers are saying. By politely pausing and then
simply acknowledging their statement, a salesperson
establishes that he or she is a reasonable person—a
professional who appreciates other people’s opinions.
It also buys a salesperson precious moments for compos-
ing his or her thoughts and thinking of questions
for the next step.

! Assess: This step is similar to assessment in the ADAPT
process of questioning. This step in dealing with buyer
resistance calls for salespeople to ask assessment ques-
tions to gain a better understanding of exactly what
their buyers are saying and why they are saying it.
Equipped with this information and understanding,
salespeople are better able to make a meaningful
response to the buyer’s resistance.

! Respond: Based on his or her understanding of what
and why the buyer is resisting, the salesperson can
respond to the buyer’s resistance. Structuring a response
typically follows the method that is most appropriate
for the situation. The more traditional methods of
response (see Exhibit”8.8) include forestalling, direct
denial, indirect denial, translation (or boomerang),
compensation, question, third-party reinforcement

Exhibit 8.6

Price Objections
“We cannot a$ord it.”
“I cannot a$ord to spend that much right now.”
“That is 30 percent higher than your competitor’s
comparable model.”
“We have a better o$er from your competitor.”
“I need something a lot cheaper.”
“Your price is not di$erent enough to change suppliers.”

Exhibit 8.7

Time Objections
“I need time to think it over.”
“Ask me again next month when you stop by.”
“I am not ready to buy yet.”
“I have not made up my mind.”
“I do not want to commit myself until I have had a
chance to talk to engineering (or any other department).”

LAARC An acronym for listen,
acknowledge, assess, respond, and
confirm that describes an effective
process for salespeople to follow to
overcome sales resistance.

178

Exhibit 8.8

Techniques to Answer Sales Resistance
Technique How It Works Example

Forestalling Take care of the objection before
the prospect brings it up.

Many of my customers have had a concern going
into my presentation that we do not have a warranty
program. Let me put this to rest that we have one-,
three-, and !ve-year warranty programs that match our
competitors. I hope this answers your concern.

Direct denial Give a rather harsh response that
the prospect is wrong.

You have heard incorrectly. We are not raising prices.

Indirect denial Soften the blow when correcting
a prospect’s information.

We have heard that rumor, too—even some of our best
customers asked us about it. Our senior management
team has guaranteed us our prices will hold !rm
through the rest of the year.

Translation or
boomerang

Turn a reason not to buy into a
reason to buy.

Buyer: Your company is too small to meet our needs.
Salesperson: That is just the reason you want to do
business with us. Because we are smaller, you will get
the individual attention you said you wanted.

Compensation Counterbalance the objection
with an o$setting bene!t.

Yes, our price is higher, but you are going to get
the quality you said that you needed to keep your
customers happy.

Questioning or
assessing

Ask the buyer assessment
questions to gain a better
understanding of what they
are”objecting to.

Your concern is price. Can you please tell me who you
are comparing us with, and does their quote include
any service agreement?

Third-party
reinforcement

Use the opinion or data from
a third-party source to help
overcome the objection.

Bill Middleton from Dial Electronics had the same
concern going in. Let me tell you why he is comfortable
with our proposal . . .

Feel-felt-found Salesperson relates that others
actually found their initial
opinions to be unfounded.

Buyer: I do not think my customers will want to buy a
product with all those features. We generally sell scaled-
down models.
Salesperson: I can certainly see how you feel. Lisa
Richardson down the road in Louisville felt the same
way when I !rst proposed that she go with these
models. However, after she agreed to display them in
the front of her store, she found that her customers
started buying the models with more features—and
that, in turn, provided her with larger margins. In fact,
she called me less than a week later to order more!

Coming-to-That The salesperson tells the buyer
that he or she will be covering
the objection later in his or her
presentation.

Buyer: I have some concerns about your delivery dates.
Salesperson: I am glad you brought that up. Before fully
discussing our delivery, I want to go over the features
that you said were important to you that will help you
better understand our product. Is that okay?

179CHAPTER 8: Addressing Concerns and Earning Commitment

(or feel-felt-found), and “coming to that.” Nikko Berrios, in
“From the Classroom to the Field,” discusses why it is impor-
tant to be persistent when calling on the gatekeeper.

These techniques have been used both positively
and negatively. Professional salespeople use these
techniques to add value to their proposal. For instance,
the translation or boomerang technique can be used
quite effectively if the salesperson has gathered the
appropriate information to support his or her response.
The buyer might state, “Your company is too big, and
we might slip through the cracks as a small customer.”
The salesperson might respond, “That is exactly why you
want to do business with us. We are larger, and we are
going to be able to offer you all of the levels of expertise
you said you needed. Smaller companies will not be

able to do this, and you
will eventually have to
search for another sup-
plier. We are one-stop
shopping, and we will
make sure you will not
fall through the cracks.”
Here, the salesperson
took a reason not to buy
and translated it into a

reason to buy. Much dialogue had to go on before this
for the salesperson to be able to provide the proper in-
formation to overcome the concern. Exhibit”8.8 includes
examples of how a salesperson might respond to buyer
concerns in a professional manner.

! Confirm: After responding, the salesperson should ask
confirmatory questions—response checks to make sure
that the buyer’s concerns have been adequately met.
Once this is confirmed, the presentation can proceed. In
fact, experience indicates that this form of buyer confir-
mation is often a sufficient buying signal to warrant the
salesperson’s attempt to gain a”commitment.

8-5 RECOMMENDED
APPROACHES FOR
RESPONDING TO
OBJECTIONS

A brief summary of traditional methods for responding
to objections follows. Exhibit 8.8 summarizes how each
technique works.

Nikko A. Barrios (Ball State 2015 Graduate) sales
representative for Kroff, talks about the challenge of
getting past the gatekeepers in each office he calls on.
“I’ve been in my territory for a little over a year now,
and I’ve put 10,000 miles on my car, and I’ve flown
over 10,000 miles. I see each one of my prospects and
customers at least once a month. My customers are
happy to see me, and it is fairly easy to see the deci-
sion maker in each of these offices. On the other hand,
I have prospects who chuckle when I walk in the door
for my persistence. They have been a long time user
of one of my competitors, and they are surprised to
see me again and again. I tell them this is my job and
I want to be ready when they need me. I treat every
gatekeeper with respect, and I follow each office’s

rules to do business with them. I’m starting to see
some success in my persistence.”

From the Classroom
to the Field

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forestalling A response to buyer
objections in which the salesperson
answers the objection during the
presentation before the buyer has a
chance to ask it.

direct denial A response to buyer
objections in which the salesperson tells
the customer that he or she is wrong.

180

8-5a Forestalling
When salespeople hear an objection arising repeatedly,
they may decide to include an answer to the objection
within their sales presentation before it is voiced by the
prospect (i.e., forestalling). Marty Reist of MPRS Sales,
Inc., often tells his prospects he realizes he
is not Nike, Titleist, or Reebok, but his size
has not kept him from providing outstand-
ing service to his customers. Reist can add a
third-party testimonial to back up his state-
ments and put his prospect’s mind at ease.
This technique should be used only when
there is a high probability that the prospect
will indeed raise the objection.6

8-5b Direct Denial
When using the direct denial technique
to handle sales resistance, the salesperson
is directly telling the customer that he or
she is mistaken. Prospects may have incor-
rect facts or may not understand the infor-
mation they have.

The prospect might say the following:

Prospect: I hear you do not offer ser-
vice agreements on any of your products.

The salesperson knowing this is not true cannot soft
pedal his or her answer. In this situation, the prospect is
clearly incorrect and the direct denial is the best solution.

Salesperson: I am sorry, that is not correct. We offer
three- and five-year service contracts,
and our warranty is also five years.

The important part of using the direct denial is not to
humiliate or anger the prospect. The direct denial tech-
nique should be used sparingly, but it might be easier to
use when the salesperson has a good feel for the relation-
ship that he or she has with the buyer.

8-5c Indirect Denial
Sometimes it is best not to take an objection head on. The
indirect approach takes on the objection, but with a softer,
more tactful approach. With indirect denial, the salesper-
son never tells the prospect directly that he or she is wrong.
The best way to utilize this method is to think of it as offering
sympathy with the prospect’s view and still managing to cor-
rect the invalid objection of the buyer. An example follows:

Prospect: I heard that your emergency room
beds are $4,000 higher than your
competitor’s.

Salesperson: Many of our customers had a similar
notion that our beds are much more
expensive. The actual cost is only
$1,200 higher. I have testimonials
from other hospitals stating that our
beds last up to five years longer. You
actually save money.

The salesperson here tries to soften the
blow with the opening sentence. Then the
salesperson must correct the misconception.
Techniques can be combined as the salesper-
son adds information from a third party to
lend credibility to his or her statement.

8-5d Translation
or Boomerang
The translation or boomerang method
converts the objection into a reason that the
prospect should buy. What the salesperson
is trying to do is to take a reason not to buy
and turn it into a reason to buy. Marty Reist of
MPRS Sales, Inc., offers the following advice:

Whenever I hear the objection, “I don’t
think your company is large enough to

meet our service needs,” I immediately come
back with, “That is exactly the reason you should
do business with us. We are big enough to meet
your service needs. In fact, you will be calling
an 800!number with a larger company and you
won’t know who you’ll get to help you. With our
company, any time you have a problem, ques-
tion, or concern, you’ll call me and talk to a fa-
miliar voice.”

Another example using the price objection might go
like this:

Buyer: Your price appears to be high.
Salesperson: Our high price is an advantage for you; the

premium secstor of the market not only
gives you the highest margin, but also it is
the most
stable sec-
tor of the
market.

The goal of the trans-
lation or boomerang meth-
od is to turn an apparent
deficiency into an asset or
reason to buy.

indirect denial A response
to buyer objections in which the
salesperson takes a softer more
tactful approach when correcting a
prospect or customer’s information.

translation or boomerang A
response to buyer objections in which
the salesperson converts the objection
into a reason the prospect should buy.

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181CHAPTER 8: Addressing Concerns and Earning Commitment

8-5e Compensation
There may be a time when a sales-
person has to admit that his or her
product does have the disadvantage
that the prospect has noticed. The
compensation technique is an at-
tempt to show the prospect that a ben-
efit or advantage compensates for an
objection. For example, a higher prod-
uct price is justified by benefits such as
better service, faster delivery, or higher
performance.

A buyer may use the objection
that your company’s lead time is
14 days compared with 10 days for
your leading competitor. The sales-
person’s response could be: “Yes, our
required lead time is 14 days, but
we ship our orders completely as-
sembled. This practically eliminates
extra handling in your warehouse.
My competitor’s product will require
assembly by your warehouse workers.” With the com-
pensation method, the objection is not denied at all—
it is acknowledged, and then balanced by compensat-
ing features, advantages, and benefits.

8-5f Questioning or Assessing
Another potentially effective way to handle buy-
er resistance is to convert the objection into a ques-
tion. This technique calls for the salesperson to ask
questions or assess to gain a better understanding of
the exact nature of the buyer’s objections. Sometimes it
is difficult for the salesperson to know the exact problem.

This technique is good
for clarifying the real
objection. It can also be
effective in resolving the
objection if the pros-
pect is shooting from
the hip and does not
have a strong reason for
the objection. Effective
questioning and listening
will lead to less sales re-
sistance and more closes.
Exhibit!8.9 illustrates the
questioning method as
a tool to overcome sales
resistance.

8-5g Third-Party Reinforcement
Feel-Felt-Found
The third-party reinforcement technique uses
the opinion or research of a third person or compa-
ny to help overcome and reinforce the salesperson’s
sales points. Salespeople today can use a wide range
of proof statements. Consumer reports, government
reports, and independent testing agencies can all be
used to back up a salesperson’s statement. Secondary
data such as this or experience data from a reliable
third party could be all that is needed to turn around a
skeptical prospect. A salesperson must remember that
this technique will work only if the buyer believes in
the third-party source that the salesperson is using.

A version of using third-party reinforcement is the
feel-felt-found method. Here, the salesperson goes on to
relate that others found their initial thoughts to be un-
founded after they tried the product. Salespeople need to
practice this method—when used in the correct sequence,
it can be very effective. Again, the strength of the person
and company being used as an example is critical to how
much influence the reference will have on the prospect.

8-5h Coming-to-That or Postpone
Salespeople need to understand that objections may
and will be made to almost everything concern-
ing them, their products, and their company. Good

Exhibit 8.9

Questioning (Assessing) to Overcome
Sales Resistance

Example 1
Buyer: I am not sure I am ready to act at this time.
Salesperson: Can you tell me what is causing your hesitation?

Example 2
Buyer: Your price seems to be a little high.
Salesperson: Can you tell me what price you had in mind? Have other

suppliers quoted you a lower price?

Example 3
Buyer: Your delivery schedule does not work for us.
Salesperson: To whom are you comparing me? Can you please tell me

what delivery schedule will work for your company?

Exhibit 8.9

compensation A
response to buyer objections in which
the salesperson counterbalances the
objection with an offsetting benefit.

questions or assess A
response to buyer objections in
which the salesperson asks the buyer
assessment questions to gain a better
understanding of what they are
objecting to.

third-party reinforcement
A response to buyer objections in
which the salesperson uses the opinion
or data from a third-party source to
help overcome the objection and
reinforce the salesperson’s points.

182

salespeople anticipate these objections and develop
effective answers, but sometimes it may make sense to
cover an objection later in the presentation, after ad-
ditional questioning and information is provided. The
salesperson should evaluate how important the con-
cern is to the prospect—and, if the objection seems to
be critical to the sale, the salesperson should address
it immediately.

Once the salesperson has answered all the buy-
er’s questions and has resolved resistance issues that
have come up during the presentation, the salesperson
should summarize all the pertinent buying signals (i.e.,
fair price, acceptable delivery dates, and a good service
agreement).

SUMMARIZING SOLUTIONS TO CONFIRM
BENEFITS The mark of a good salesperson is the
ability to listen and determine the customer’s exact
needs. It is not unusual for salespeople to incorporate
the outstanding bene%ts of their product into the sales
presentation. A salesperson can identify many potential
bene%ts for each product and feature. However, it does
not make sense for a salesperson to talk about potential
bene%ts that the buyer may not need. The salesperson
must determine the!con%rmed bene%ts and make these
the focal point of the sales summary before asking for
the business. A salesperson must be alert to the one,
two, or three bene%ts that generate the most excite-
ment to!the buyer. The con%rmed bene%ts of greatest
interest to the buyer deserve the greatest emphasis.
These bene%ts should be summarized in such a way
that the buyer sees a direct connection in what he or
she has been telling the salesperson over the course of
the selling cycle and the proposal is being offered to
meet his or her needs. Once this is done, it is time to
ask for the business.

8-6 SECURING COMMITMENT
AND CLOSING

Ultimately, a large part of most salespeople’s perfor-
mance evaluation is based on their ability to gain cus-
tomer commitment, often called closing sales. Because
of this close relationship between compensation and
getting orders, traditional selling has tended to over-
emphasize the importance of gaining a commitment.7
In fact, there are those who think that just about any
salesperson can find a new prospect, open a sale,
or take an order. These same people infer it takes a

trained, motivated, and skilled professional to close a
sale. They go on to say that the close is the keystone
to a salesperson’s success, and a good salesperson will
have mastered many new ways to close the sale. This
outmoded emphasis on closing skills is typical of trans-
action selling techniques that stress making the sales
call at all costs.

Another popular but outdated suggestion to sales-
people is to “close early and often.” This is particularly
bad advice if the prospect is not prepared to make a
decision, responds negatively to a premature attempt
to consummate the sale, and then (following the princi-
ples of cognitive consistency) proceeds to reinforce the
prior negative position as the salesperson plugs away,
firing one closing salvo after another at the beleaguered
prospect. Research tells us that it will take several sales
calls to make an initial sale, so it is somewhat bewilder-
ing to still encounter such tired old battle cries as “the
ABCs of selling, which stand for Always Be Closing.”
Research based on more than 35,000 sales calls over
a 12-year period suggests that an overreliance on clos-
ing techniques actually reduces the chance of making
a sale.8 Futhermore, as the Selling Power Editors sug-
gest in the opening vignette, “spending too much time
on closing and pursuing short term gains, takes away
from the more important effort of pursuing long term
partnerships.”

Manipulative closing gimmicks are less likely to be
effective as professional buyers grow weary with the cat-
and-mouse approach to selling that a surprising number
of salespeople still practice. It is also surprising to find
many salespeople who view their customers as combat-
ants over whom victory is sought. Once salespeople who
have adversarial, me-against-you attitudes make the sale,
the customer is likely to be neglected as the salesperson
rides off into the sunset in search of yet another battle
with yet another lowly customer.

One time-honored thought that does retain con-
temporary relevance is that “nobody likes to be sold,
but everybody likes to buy.” In other words, sales-
people should facilitate decision making by pointing
out a suggested course of action but should allow the
prospect plenty of mental space within which a ratio-
nal decision can be reached.9 Taken to its logical con-
clusion, this means that it may be acceptable to make
a sales call without asking for the order. Salespeople
must be cognizant, however, of their responsibility to
advance the relationship toward a profitable sale, lest
they become the most dreaded of all types of salespeo-
ple—the paid conversationalist. Technology in Selling
points out that the key to closing is not necessarily

183CHAPTER 8: Addressing Concerns and Earning Commitment

generating more leads but generating and closing the
right leads.

It has already been mentioned that the salesper-
son has taken on the expanded roles of business consul-
tant and relationship manager, which is not consistent
with pressuring customers until they give in and say
yes. Fortunately, things have changed to the point that
today’s professional salesperson attempts to gain com-
mitment when the buyer is ready to buy. The salesper-
son should evaluate each presentation and attempt to
determine the causes of its success or failure with the

customer. The differ-
ence between closing
and earning commit-
ment is that commit-
ment is more than just

securing an order. Commitment insinuates the begin-
ning of a long-term relationship.

8-6a Guidelines for Earning
Commitment
Earning commitment or gaining commitment is the cul-
mination of the selling process. However, it should not be
viewed as a formal stage that comes only at the end of the
presentation. Many salespeople fail to recognize early buyer
commitment by focusing on their presentation and not the
comments the buyer is making. Commitment signals are
favorable statements that may be made by the buyer, such as:

! “I like that size.”

! “That will get the job done.”

Technology in Sales
Build Sales Pipeline the Social Way
and Earn More
—Selling Power Editors

As sales professionals
know, the key to closing
more deals is not necessarily
generating more leads but
generating the right leads.
These days, the best way to
build a robust sales pipeline
is to generate those leads
using LinkedIn.

Although many people
think LinkedIn is just a
place to post your resume or hunt for a job, it actually
represents a way to strategically build pipeline and
nurture relationships. Koka Sexton, senior social marketing
manager at LinkedIn, says there are two basic steps to
leveraging either LinkedIn’s free platform or LinkedIn’s
Sales navigator (http://business.linkedin.com/sales-
solutions/prospecting-tool.html) for better pipeline results.

Step 1: Search LinkedIn’s 300 million members and
see what information is available about prospects on
their profile pages. This alone can tell you a lot, and when
your network is big enough, you can often request that
one of your first-degree connections introduce you to a

third-degree connection.
Step 2: Use LinkedIn as

an engagement platform, via
Status updates or comments in
groups, and by sharing content
or responding to content posted
by others. As Sexton says, these
interactions add up to stronger
relationships, which can help
build pipeline and reduce church.

“The more engaged you are with [buyers], the
harder it is for them to break you,” Sexton says. “If you
engage through social media throughout the year, at
year-end they know you.”

Sexton predicts social selling will be the norm in
five years. “We are about a year away from the tipping
point, when we get to critical mass.”

commitment signals
Favorable statements a buyer makes
during a sales presentation that signal
buyer commitment.

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! “The price is lower than I thought it would be.”

! “I did not realize you delivered every day.”

These statements should be considered green
lights that allow the salesperson to move the process
forward. Positive statements by the buyer should start
the process of determining the best time to close.
Ultimately the salesperson should ask for the order
when the buyer has enough information to make an
informed decision. Making sure the buyer has the
right information to make an intelligent decision is
the main goal of a salesperson’s sales presentation.
Normally the earning commitment question is asked
when the sales presentation is completed and all the
questions and sales resistances have been successfully
addressed.

Commitment may also be determined through the
use of trial commitments. Throughout the presenta-
tion, it is appropriate to determine a prospect’s reaction to
a particular feature or product. At this time, a trial com-
mitment is a question designed to determine a prospect’s
reaction without forcing the prospect to make a final yes
or no buying decision. The trial commitment is an effort to
identify how far along the prospect is in his or her decision
making. Confirmation on the prospect’s part on key fea-
tures helps the salesperson determine how ready the pros-
pect is to buy. A trial commitment can be used many times
throughout a salesperson’s presentation to test the buyer’s
level of commitment and for the salesperson to gain con-
firmed benefits. Exhibit!8.10 summarizes both verbal and
non verbal buying signals.

Open-ended questions are a good way to test a
prospect’s readiness to buy. A salesperson might ask
during his or her presentation, “What do you think of
our computer’s larger memory capacity?” The answer
to this will help direct the salesperson to his or her next
sales points. However, many statements buyers make
should be considered red lights, or a formal objection.
The salesperson must consider each of these objec-
tions and work to overcome them. Red light statements
might include:

! “I am not sure that will work.”

! “The price is higher than I thought it would be.”

! “Your delivery schedule does not work for us.”

! “I do not see the advantage of going with your
proposal.”

Red light statements are commitment caution
signals and must be resolved to the buyer’s satisfac-
tion before asking for a commitment. Closing early
and often and having a closing quota for each sales
call are traditional methods that buyers do not like.

Jon Young in “Professional Selling in the 21st Century:
Tighten up the use of Earning Commitment Tech-
niques,” states that it is better to replace numerous
closing efforts with fewer closes and better listening
skills. The salesperson should put himself or herself in
the buyer’s shoes and think about how he or she would
like to be hammered with many closes throughout a
sales presentation, particularly if a few red lights are
introduced. Many times, the best method for earning
commitment is simply to ask for the business. If the
prospect has been qualified properly and a number of
confirmed benefits have been uncovered, then natu-
rally the next step is to ask for the business.

8-6b Techniques to Earn
Commitment
Some sales trainers will try to teach their salesforces lit-
erally hundreds of commitment techniques. One train-
er recommended to his salesforce that the salespeople
learn two new commitment techniques per week. Then
at the end of the year, they would have more than 100
commitment techniques ready to use. Relationship
managers today do not need many commitment tech-
niques. A few good ones will suffice. Five techniques
that are conducive to relationship building are:

1. Ask for the order/direct commitment. It is not
unusual for inexperienced salespeople to lose an
order simply by not asking the customer to buy.
Professional buy-
ers report that an
amazing number
of salespeople fear
rejection. When the

Exhibit 8.10

Favorable Buying Signals
When the prospect:

! Makes a positive statement about the product
! Asks who else has bought the product
! Asks about price, delivery, installation, dates, or service
! Asks about methods of payment
! Begins to study and handle the product
! Appears more relaxed
! Begins to interact more intently with the salesperson

trial commitment An
earning commitment technique that
determines the attitude of your buyer
toward a particular feature or benefit.

185CHAPTER 8: Addressing Concerns and Earning Commitment

buyer is ready to buy, the salesperson must be
prepared to ask for the buyer’s commitment. The
direct commitment technique is a straightfor-
ward request for an order. A salesperson should be
confident if he or she has covered all the necessary
features and benefits of the product and matched
these with the buyer’s needs. At this time, the
salesperson cannot be afraid to ask, “Tom, can we
set up an office visit for next week?” or, “Mary, I
would like to have your business; if we can get the
order signed today, delivery can take place early
next week.” Many buyers appreciate the direct
approach. There is no confusion as to what the
salesperson wants the buyer to”do.

2. Ask for a legitimate choice/alternative choice.
The alternative/legitimate choice tech-

nique asks the pros-
pect to select from
two or more choices.
For example, “ Will
the HP”400 or the
HP”600 work best for
you?” An investment
broker might ask his
or her prospect,

“Do you feel your budget would allow you to
invest $1,000 a month or would $500 a month
be better?” The theory behind this technique
suggests buyers do not like to be told what to
do but do like making a decision over limited
choices.

3. Provide a summary commitment. A very effective
way to gain agreement is to summarize all the
major benefits the buyer has confirmed over the
course of the sales calls. Salespeople should keep
track of all of the important points covered in
previous calls so they can emphasize them again
in summary form.
In using the summary commitment technique, a
computer salesperson might say:
“Of course, Tom, this is an important decision,
so to make the best possible choice, let us go over
the major concepts we have discussed. We have
agreed that Thompson Computers will provide some
definite advantages. First, our system will lower your
computing costs; second, our system will last longer
and has a better warranty, thus saving you money;
and finally, your data processing people will be
happier because our faster system will reduce
their workload. They will get to go home earlier
each”evening.”

Professional Selling in the
21st Century
Tighten up the use of Earning Commitment
Techniques
Jon Young, relationship manager at Accutech Systems,
has seen quite a bit of change over his 30-year sales
career, especially when it comes to earning commitment.
“In my early days of sales, the best sales people were
considered the best closers. Today, I know the best
salespeople are the best listeners. Another trend

I see is the tightening up of closing techniques. Good
salespeople use only a few relationship building closing
techniques. Gimmicky closing techniques will only hurt
a salesperson’s credibility. A summary close shows the
buyer you have been listening to what the buyer has
been saying. It is a logical close that brings the sales
call to a conclusion. I think salespeople should ask more
questions and close less. The notion of closing early
and often is wrong. It should be replaced with listen
early and often.”

direct commitment A selling
technique in which the salesperson
asks the customer directly to buy.

alternative/legitimate
choice A selling technique in
which the salesperson asks the
prospect to select from two or more
choices during a sales presentation.

186

The summary commitment
is a valuable technique because it
reminds prospects of all the major
benefits that have been mentioned
in previous sales calls.

4. Use the T-account or the
balance sheet commit-
ment. The T-account commitment or
balance sheet commitment is essentially a
summary commitment on paper. With the T-account
commitment, the sales representative takes out
a sheet of paper and draws a large “T” across it.
On the left-hand side, the salesperson and buyer
brainstorm the reasons to buy. Here, the salesperson
will list with the buyer all the positive selling points
(benefits) they discussed throughout the selling pro-
cess. Once this is completed, the salesperson asks
the buyer for any reasons that he or she would not
want to purchase. Visually, the left-hand side should
help the buyer make his or her decision, as seen in
Exhibit 8.11. This will not work if the weight of the
reasons not to buy outweighs the reasons to buy,
or if the buyer wants to act but does not have the
money at this”time.

5. Use the success story commitment. Every company
has many satisfied customers. These customers
started out having problems, and the sales repre-
sentative helped solve these problems by recom-
mending the product or products that matched
the customer’s needs. Buyers are thankful and
grateful when the salesperson helps solve prob-
lems. When the salesperson relates a story about
how one of his or her customers had a similar
problem and solved it by using the salesperson’s

product, a reluctant buyer can be
reassured that the salesperson
has done this before success-
fully. If the salesperson decides
to use the customer’s name and
company, then the salesperson
must be sure to get permission to

do so. A success story commitment might go
something like”this:

Tom, thanks for sharing your copier problems
with me. I had another customer you might
know, Betty Brown, who had the same problem
over at Thompson Electronics. We installed the
CP 2000 and eliminated the problem completely.
Please feel free to give Betty a call. She is very
happy with our!solution.

Some companies will
use the success story com-
mitment by actually taking
the prospect to a satisfied
customer. The salesperson
may leave the prospect alone
with the satisfied customer
so the two can talk confiden-
tially. A satisfied customer
can help a salesperson earn
commitment by answer-
ing questions a reluctant
prospect needs answered
before he or she can pur-
chase. Exhibit 8.12 shows
a summary of relationship-
building earning commit-
ment techniques.

Exhibit 8.11

T-Account Close

Reasons to Buy Reasons Not to Buy

! Daily delivery schedule meets our needs. ! Because of extra services.

! Warranty agreement is longer than the one
I have now (!ve years versus three years).

! Your price is too high; I can’t a$ord it.

! You provide a training program.

! Your service department is located in our city.

Good salespeople are
never in a hurry to earn

commitment!

summary commitment A
selling technique in which the
salesperson summarizes all the major
benefits the buyer has confirmed
over the course of the sales calls.

T-account or balance
sheet commitment A selling
technique in which a salesperson
asks the prospect to brainstorm
reasons on paper of why to buy and
why not to buy.

success story commitment
A selling technique in which a
salesperson relates how one of his or
her customers had a problem similar
to the prospect’s and solved it by
using the sales person’s product.

187CHAPTER 8: Addressing Concerns and Earning Commitment

8-6c Probe to Earn Commitment
Every attempt to earn commitment will not be success-
ful. Successful salespeople cannot be afraid to ask a
prospect why he or she is hesitating to make a decision.

Exhibit 8.12

Techniques to Earn Commitment
1. Direct commitment—Simply ask for the order.
2. Legitimate choice/alternative choice—Give the

prospect a limited number of choices.
3. Summary commitment—Summarize all the

con!rmed bene!ts to which there has been
agreement.

4. T-account/balance sheet commitment—
Summary close on paper.

5. Success story commitment—Salesperson tells
a story of a business that successfully solved a
problem by buying his or her products.

It is the salesperson’s job to uncover the reason why
the prospect is hesitating by asking a series of questions
that reveal the key issues. For instance, a buyer may
state that he or she is not ready to sign an order. The
salesperson must ask, “Mary, there must be a reason
why you are reluctant to do business with me and my
company. Do you mind if I ask what it is?” The sales-
person must then listen and respond accordingly. A
salesperson cannot be afraid to ask why a prospect is
reluctant to purchase.

8-6d Traditional Methods
Sales trainers across the nation teach hundreds of tech-
niques to earn commitment. Exhibit 8.13 is a summa-
ry of the traditional commitment techniques. The vast
majority of these are not conducive to building a strong
buyer–seller relationship. As prospects become more so-
phisticated, most will be turned off by these techniques
and they will be ineffective. “An Ethical Dilemma”
illustrates that sometimes buyers will be put off by sales
people who use too many closes.

Research has clearly shown that buyers are open
to consultative techniques of handling objections (e.g.,
questioning and assessing, direct denial with facts, and so

standing-room-only close A
sales closing technique in which
the salesperson puts a time limit on
the client in an attempt to hurry the
decision to close.

assumptive close A sales closing
technique in which the salesperson
assumes that an agreement has been
reached and places the order form in
front of the buyer and hands him or
her a pen.

fear or emotional close A
sales closing technique in which the
salesperson tells a story of something
unfavorable if the purchase is not made.

continuous yes close A sales
closing technique that uses the
principle that saying yes gets to be a
habit; the salesperson asks a number
of questions formulated so that the
prospect answers yes.

minor-points close A sales
closing technique in which the
salesperson seeks agreement on
relatively minor issues associated with
the full order.

Exhibit 8.13

Traditional Commitment Method
Method How to Use It

Standing-Room-
Only Close

This close puts a time limit on the client in an attempt to
hurry the decision to close. “These prices are good only
until tomorrow.”

Assumptive
Close

The salesperson assumes that an agreement has been
reached. The salesperson places the order form in front
of the buyer and hands him or her a pen.

Fear or
Emotional Close

The salesperson tells a story of something bad happening
if the purchase is not made. “If you do not purchase this
insurance and you die, your wife will have to sell the house
and live on the street.”

Continuous Yes
Close

This close uses the principle that saying yes gets to be a
habit. The salesperson asks a number of questions, each
formulated so that the prospect answers yes.

Minor-Points
Close

Seeks agreement on relatively minor (trivial) issues associ-
ated with the full order. “Do you prefer cash or charge?”

188

Ella Carnes had just left her sales meeting and was a bit
uncomfortable with what she had just heard from her
sales manager, Jeni Merritt, who stated for the next two
weeks the sales reps were obligated to close on each
and every sales call. Jeni did not think her reps were
closing enough and based on their call reports they did
not have a high enough closing ratio. Her only solution
was they needed to try to close more often.

Ella was not sure this was going to work. What
should Ella do next now that she has this direct order
from her boss? How would you handle this situation?
(A) Obey orders and close early and often.
(B) Ella should look for closing opportunities and close

when they appear.
(C) Ella should tell her boss this is not what she learned

in college.

An Ethical Dilemma

on) and earning commitment (e.g., asking for the order
in a straightforward manner, summarizing key benefits).
However, buyers have stated that standard persuasive
(traditional) tactics that have been used for years are

unacceptable. They now view traditional techniques of
handling objections (e.g., forestalling, postponing) and
earning commitment (e.g., standing-room only, fear) as
overly aggressive and unprofessional.10

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189CHAPTER 8: Addressing Concerns and Earning Commitment

M I D ! E A S T M E TA L S
Jesse Parker sells for Mid-East Metals. He has been calling
on Richmond Distributors for close to two years. Over
the course of 15 calls, he has sold nothing to date. During
an early call, Parker had Richmond’s engineers in to look
over and test the quality of his products. The tests and
the engineer’s responses were positive. He thinks that he
is extremely close to getting an order. Parker knows that
Richmond is happy with its present supplier, but he is aware
that they have received some late deliveries. Terry Kitchel,
Richmond’s senior buyer, has given every indication that he
likes Parker’s products and Parker.

C U R R E N T S I T U AT I O N
During Parker’s most recent call, Kitchel told him that
he’d need a couple of weeks to go over Parker’s proposal.
Kitchel really didn’t have any major objections during the
presentation. Parker knows his price, quality, and service are
equal to or exceed Richmond’s present supplier.

Q U E S T I O N S
1. Kitchel told Parker that he needed a couple of weeks to

think about his proposal. How should Parker handle this?

2. What should Parker have done during the sales
presentation when Kitchel told him that he needed to
think it over?

3. What techniques should Parker have used to overcome
the forestalling tactic?

Situation: Read Case 8; Mid-East Metals

Characters: Jesse Parker, sales representative; Terry Kitchel,
senior buyer

Scene 1:
Location—Kitchel’s office

Action—Kitchel has just stated that he needs a couple of
weeks to go over Parker’s proposal.

Role play how Parker should respond to Kitchel’s needing
two weeks to think it over.

Scene 2:
Location—Kitchel’s office

Action—Parker is summarizing his product’s advantages
(i.e., price, quality, service).

Role play Parker’s summary and his asking for the order.

Upon completion of the role plays, address the following
questions:

1. Why do buyers hesitate and ask for more time to think
over proposals?

2. How hard should Parker press to get Kitchel to act
now?

8 CHAPTER CASE

190

CHAPTER ROLE PLAY
Addressing Concerns and Earning Commitment8

R O S S E L E C T R I C
Bob Moler has been selling for Ross Electric for six months.
Most of the first four months were spent in training, learning
Ross’ products. He spent another two weeks learning their
selling process and shadowed one of their senior reps for
a couple of weeks. He has barely been in the field a month
and is feeling frustrated. Bob was given a hot lead the first
day in the field (Grant Distributors), and the past four weeks
he has made seven calls on Grant. Moler feels he is close
to getting an order from Grant. Bob knows Grant is fairly
happy with their present supplier, but he is aware that they
have received several late deliveries. Martha Gregory, Grant’s
senior buyer, has given every indication that she likes Ross’
products and Moler.

During Moler’s most recent call, Gregory told him she’d
have to have a couple of weeks to go over his proposal.

Gregory really didn’t have any major objections during his
presentation. Moler knows his price, quality, and service are
equal to or exceeds Gregory’s present supplier. Gregory
did say she wasn’t looking forward to calling their present
supplier to tell them about doing business with Ross
Engineering if she decided to change.

R O L E P L AY
Location: Martha Gregory’s office

Action: Role play Martha Gregory telling Bob Moler
she needs a couple of weeks to think over
his proposal. Discuss the sales resistance of
forestalling Gregory is using and how Moler is
going to overcome the objection (use LAARC).
Also, role play Gregory’s concern telling her
present supplier they are switching suppliers.

191CHAPTER 8: Addressing Concerns and Earning Commitment

9 Expanding Customer Relationships
LEARNING OBJECTIVES
After completing this chapter, you should be able to:

9-1 Explain how to follow-up to assess customer satisfaction.

9-2 Explain how to harness technology to enhance follow-up
and buyer–seller relationships.

9-3 Discuss how to take action to ensure customer satisfaction.

9-4 Discuss how to expand collaborative involvement.

9-5 Explain how to add value and enhance mutual opportunities.

The Hershey Company, known for its delectable sweets, understands the
importance of building and maintaining long-term customer relationships.
To assist its salesforce in forging such relationships with its retail partners,
Hershey turned to Salesforce. Salesforce is a cloud-based customer
relationship management software provider. Richard Primus, Senior Director
Global Commercial Systems, states, “Salesforce helps our field sales reps
bring valuable insights to our retail partners every day.”

Each of Hershey Company’s 1,300-plus field repre-
sentatives works closely with convenience, grocery
and large retail channels across the United States and
Canada to add value to Hershey’s product offerings by
providing retailers advice on merchandising and promo-
tional opportunities. Hershey was finding it difficult for
its sales reps to interact with key decision-makers at the
store level. Using the Salesforce platform, Hershey built
a custom mobile app that enabled sales reps to better
understand their customer’s business so that they could
more effectively execute merchandising ideas. The
app allows Hershey reps to use their smartphones or

tablets to quickly access planning tools, real-time ana-
lytics, brand and promotional materials, and marketing
insights.

According to Primus, “With Salesforce App Cloud,
we were able to deliver a customized and highly en-
gaging front-end experience that’s tailored to the way
that we do business. Our field sales team loves that
the app was designed and built specifically for them
and how they work.” The app allows reps at Hershey’s
to strengthen customer relationships by allowing them
to dig into store-level point-of-sales insights, engage
in more meaningful conversations with retailers, share

After finishing this chapter, go to PAGE 211 for STUDY TOOLS.

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an
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to
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192

results.2 Not following up with a new customer is a
shortsighted attitude toward selling, for it fails to con-
sider the importance of developing and maintaining a
customer for your company.

Research indicates that successfully retaining
customers is critical for all companies’ success. Sales-
people’s post-sale service behaviors are positively
related to relationship quality and share of customer
business.3 Relationship marketing efforts can lead
to longer-term, broader, and deeper customer rela-
tionships, which results in increases in sales, profits,
and positive word of mouth.4 Companies that invest
3 percent or more of their revenue in customer expe-
rience have greater referral rates, superior customer
satisfaction scores, and better retention rates than
those who invest less in customer experience.5 Yet it
takes only a slight decline in attention from a salesper-
son to lead a buyer to consider alternative suppliers.6
Given that it is generally more expensive to acquire
a new customer than to sustain a current one, sales-
people should take actions to develop strong customer
relationships.

business information with them, and adapt to customer
needs in real-time. Moreover, the app provides reps with
a means for viewing route analytics, quickly accessing
videos and other sales tools, reviewing call history, and
accessing and maintaining key contact data. Primus be-
lieves the app has not only led to increased sales, but
has assisted sales reps in delivering a professional and
differentiated experience to its retail partners. An expe-
rience that allows Hersey’s reps to expand their customer
relationships.1

In traditional selling, salespeople too often
thought that their job was over when they closed
the sale. Once the order was obtained, they moved
on to the next prospect. Any follow-up or customer
service was minimal. The lifeline of an organization
today is repeat business. It is important to acquire
new customers, but it is critical to keep your existing
customer base happy. In research involving 80,000
business customers, the number-one characteristic
found to define a world-class salesperson is some-
one who personally manages the customer’s satisfac-
tion by being accountable for the customer’s desired

193CHAPTER 9: Expanding Customer Relationships

There are several ways that a salesperson can con-
vert new customers into highly committed lifetime
customers. Examples include building goodwill by
continually adding value to the product or service
through appropriate follow-up, handling complaints
in a timely and thoughtful manner, and processing re-
quests for rush deliveries willingly and assuring the
customer that the salesperson will do everything pos-
sible to make that request happen. However, it is just
as easy for a salesperson to alienate a new customer
by putting the focus on the short-term order and not
the long-term activities that create a partnership. This
can be done by overpromising and underdelivering,
using exaggeration to get an order, and blaming everyone
else for problems. Exhibit 9.1 reviews relationship en-
hancers and detractors that can strengthen or destroy a
relationship. To see what leading sales professionals be-
lieve it takes to make relationships work, see Exhibit 9.2.7

Relationship-oriented salespeople are creat-
ing bonds with their customers that will partially iso-
late them from competitive pressures or at least min-
imize the importance of easily altered and matched
competitive variables such as price. This chapter
explains the importance of follow-up to assess custom-
er satisfaction. Next, harnessing technology to enhance

follow-up and buyer–
seller relationships is
covered. This is followed
by a discussion of why
it is the salesperson’s
job to take action (i.e.,
be proactive) before
problems arise and

building goodwill The process
of converting new customers into
lifetime customers by continually
adding value to the product.

adding value The process of
improving a product or service for the
customer.

Exhibit 9.1

Relationship Enhancers and Detractors
Enhancers Detractors

Focus on long term Focus on short term

Deliver more than salesperson promises Overpromise—underdeliver

Call regularly Call sporadically

Add value Show up only for another order

Keep communication lines open Be unavailable to the customer

Take responsibility for problems Lie, exaggerate, or blame someone else

not wait for complaints (i.e., be reactive) to ensure cus-
tomer satisfaction. We then discuss the importance of
collaborative involvement and working to add impor-
tance for the buyer. Finally, we review the importance of
customer service.

9-1 ASSESS CUSTOMER
SATISFACTION

Keeping customers satisfied is important, as it leads to cus-
tomer trust and, ultimately, share of customer. Not only is
customer satisfaction a significant indicator of repurchase
intentions and loyalty, it serves as a point of differentia-
tion, reduces customer defections, reduces negative word
of mouth, improves customer referrals and increases

Salespeople today utilize several techno-
logies to stay in touch with customers.

Ra
w

pi
xe

l.c
om

/S
hu

tt
er

st
oc

194

the life-time value of customers.8 Research shows that
customer satisfaction is in part affected by salespeople’s
reliability and responsiveness as demonstrated by re-
turning phone calls promptly, fulfilling commitments,
satisfying customer requests, and being readily available.
Furthermore, salespeople who regularly, clearly, and
concisely communicate product information to custom-
ers can enhance their satisfaction.9 Such research points
to the need to be diligent in following up and properly
communicating with customers in order to build, main-
tain, and enhance customer relationships.

Unfortunately, many companies do a poor job un-
derstanding and satisfying their customers. Results
from an annual study of customer experience and
customer relationship management professionals
conducted by the Strativity Group, Inc., show that most
global companies (81%) are not completely dedicated
to executing customer experience strategies. As a result,
greater attrition rates are three times more likely for these
companies, as opposed to fully committed companies,
who are five times as likely to have greater referral rates.10

Professional salespeople view their customer base as
far too valuable an asset to risk losing it through neglect.
In maintaining and enhancing customer relationships,
salespeople are involved in performing routine post-sale

follow-up activities and in enhancing the relationship as
it evolves by anticipating and adapting to changes in the
customer’s situation, competitive forces, and other chang-
es in the market environment. Salespeople at Hubspot,
a marketing automation tool, know the value of keeping
customers satisfied. After-sales support includes training
on how to best use the tool, free educational webinars,
and complimentary 24/7 technical support, among other
things, which lead them to being rated number one in cus-
tomer satisfaction for marketing automation software.11

Keeping abreast of customers’ satisfaction should go
on monthly, quarterly, and yearly. Sometimes, the sales-
person will not like the answers that he or she gets from
the customers. New customers generally feel special be-
cause they have received a lot of attention. Long-term
customers may feel neglected because the salesperson
has many new customers and cannot be as attentive as
he or she was previously. Routine follow-up questions,
such as “How are we doing?,” can go a long way in let-
ting a customer know that the salesperson cares and is
willing to make sure that the customer is satisfied. In ad-
dition to salespeople asking their customers about their
level of satisfaction, suppliers can use a number of means
for gathering customer satisfaction information, such as
observation, online (or written) surveys, focus groups,

Exhibit 9.2

What Makes Customer Relationships Work?
Gerhard Gschwandtner, publisher of Selling Power, summarizes the thoughts shared with him by 18!leading
sales!contributors regarding how customer relationships are formed and nurtured, and what leads to the
creation!of customer value:

1. Good salespeople bring positive energy to a relationship.
2. Trust hinges on the willingness to deliver on promises. Once trust is lost, relationships cannot survive.
3. A relationship’s value depends on the customer’s perception of value, not on the salesperson’s perception

of!value.
4. To the customer, the top value drivers are integrity, authenticity, and consistency.
5. E”ective relationship builders are willing to listen to better understand customer challenges. They ask

questions that lead to consultative conversations, which open doors to greater opportunities.
6. The salesperson’s courage to resolve the di#cult situations customers face enhances relationships.
7. Relationships are enhanced by the salesperson’s ability to communicate in compelling and creative ways.
8. Relationships demand a long-term investment.
9. There is a di”erence between a transaction and a relationship. Transactions create one-time value; relation-

ships create long-term value and a stable business foundation.
10. Relationships grow through di”erentiation and the willingness to contribute beyond what is expected.
11. Good salespeople use smart social-media strategies to enhance customer relationships. They make it their

business to stay connected to customers through social media such as Twitter, Facebook, and LinkedIn.

195CHAPTER 9: Expanding Customer Relationships

customer service feedback, monitoring social media, on-
line communities and groups, e-mail, and Web forms.
“Selling in Action: Monitoring Customer Satisfaction to
Improve Customer Relationships” describes how one
company uses customer satisfaction surveys to listen to
customers.12

9-2 HARNESS TECHNOLOGY
TO!ENHANCE FOLLOW”UP
AND BUYER#SELLER
RELATIONSHIPS

Building buyer–seller relationships is easier said than
done. Developing and nurturing customer relation-
ships demands that salespeople do more than simply

discover the buyer’s needs and respond to them with a
sales offering that resolves those needs. Relationships
are formed over time through multiple buyer–seller in-
teractions in which the seller wins the trust of the buy-
er. One survey found that one of the most important
things buyers look for in sellers is accountability. They
want someone they can rely on during the entire sales
process and who will not abandon them after the sale
is finalized.13 According to another survey of custom-
ers, 80 percent indicated that consistent follow-up with
the customer, including returning phone calls and
e-mails, helps their buying process, while conversely, not
focusing on after-the-sale service hindered the sale.14
The results of these studies emphasize the importance
of effective follow-up by the salesperson. As discussed
in this chapter and illustrated in Figure! 9.1, effective
salesperson follow-up should include specific compo-
nents designed to interact, connect, know, and relate
with customers.

Selling in Action
Monitoring Customer Satisfaction to Improve
Customer Relationships
Having experienced strong growth over the past five
years, Denmark-based managed IT provider Stea IT
wanted to make sure its customers were still satisfied
with its services. Fearing some customers may be at
risk, they needed a way to monitor satisfaction levels
over time. To do so, they turned to Client Heartbeat
to help in developing a customer satisfaction survey.

By implementing a new system where
they could obtain ongoing feedback from their
customers, Stea IT identi$ed three customers
that were not happy with the service levels being
received. This came as a shock given that Stea had
no idea there were any problems with customers.
Not surprisingly, these were customers that

had been acquired early during the company’s
formative years and had gotten neglected over
time as service levels dropped due to rapid
growth.

Using customer feedback, Stea detected
customer problems, $xed the issues and mitigated
the “at-risk” relationships. Stea credits its new
focus on soliciting customer feedback with its
ability to strengthen its relationships with the
customers it identi$ed as disgruntled, including
one that is worth $180,000 annually. According
to Ruin Tipsmark of Stea IT, “Client Heartbeat
provided actionable insights into where we
needed to improve our service levels that would
lead to higher customer satisfaction.”

196

! Interact—The salesperson acts to maximize the number
of critical encounters with buyers in order to encourage
e”ective dialogue and involvement between the
salesperson and the buyer.

! Connect—The salesperson maintains contact with the
multiple individuals in the buying organization influenc-
ing purchase decisions and manages the various touch
points the customer has in the selling organization to
ensure consistency in communication.

! Know—The salesperson coordinates and interprets the
information gathered through buyer–seller contact and
collaboration to develop insight regarding the buyer’s
changing situation, needs, and!expectations.

! Relate—The salesperson applies relevant understanding
and insight to create value-added interactions and generate
relationships between the salesperson and buyer.

Salespeople have employed a variety of technology-
based salesforce automation tools in order to better track
the increasingly complex combination of buyer–seller in-
teractions and to manage the exchange, interpretation,
and storage of diverse types of information. Among the
more popular salesforce automation tools are the many
competing versions of PC and Internet-based customer
relationship management software applications designed
to record and manage customer contact information.
Software applications such as Maximizer, Goldmine,
ACT!, Netsuite, and Salesforce enable salespeople to
collect, file, and access comprehensive databases de-
tailing information about individual buyers and buying

organizations. In addition to providing explicit details
about customers and the multiple individuals influenc-
ing purchasing decisions within any given account, these
databases also provide an archive of the interactions and
purchasing decisions taking place over time. Salespeople
using these systems have found them to be invaluable
in helping them track and
improve service to their
accounts, ensuring and
enhancing customer sat-
isfaction. By understand-
ing every transaction and
buyer–seller interaction,
salespeople can be more
effective in communicat-
ing with each customer
throughout the lifetime of
the account. Corey Vance,
a sales representative at
Mueller Field Operations
Inc., explains how he
uses technology to initi-
ate, grow and strengthen
customer relationships in
“Technology in Selling:
Building and Strengthen-
ing Relationships.”

The advent of the In-
ternet has allowed these
customer contact man-
agement tools to be used
in multiorganization in-
tranets and extranets. An
intranet is an organiza-
tion’s dedicated and pro-
prietary computer network
offering password-con-
trolled access to people
within and outside the or-
ganization (e.g., customers
and suppliers). Extranets
are proprietary computer

interact The salesperson acts
to maximize the number of critical
encounters with buyers in order
to encourage effective dialogue
and involvement between the
salesperson and the buyer.

connect The salesperson
maintains contact with the
multiple individuals in the
buying!organization influencing
purchase decisions and manages
the various touch points the
customer has in the selling
organization to ensure consistency
in communication.

know The salesperson
coordinates and interprets the
information gathered through
buyer–seller contact and
collaboration to develop insight
regarding the buyer’s changing
situation, needs, and expectations.

relate The salesperson applies
relevant understanding and insight
to create value-added interactions
and generate relationships between
the salesperson and buyer.

intranet An organization’s
dedicated and proprietary computer
network offering password-
controlled access to people within
and outside the organization (e.g.,
customers and suppliers).

extranet Proprietary computer
networks created by an organization
for use by the organization’s
customers or suppliers and linked to
the organization’s internal systems,
informational databases, and intranet.

THE FOUR SEQUENTIAL COMPONENTS
OF EFFECTIVE FOLLOW!UPFIG. 9.1

E!ective salesperson follow-up should include specific
components designed to interact, connect, know, and relate
with his or her customers.

Relationships are formed
over time through multiple
buyer–seller interactions in

which the seller wins the
trust of the buyer.

197CHAPTER 9: Expanding Customer Relationships

spec sheets, inventory availability, price lists, and order
status can be exchanged. Salespeople can use the Web
to view everything that is relevant to any account. This
can include information in the organization’s databases
(e.g., purchasing history, credit rating) as well as perti-
nent information such as news stories, stock prices, and
research reports from sources outside the organization
(e.g., Hoovers, Standard & Poor’s).

CRM systems enable salespeople to build and inte-
grate multiple forms of customer information and create
highly influential and individualized customer interac-
tions that establish and reinforce long-term, profitable
relationships. The benefits to salespeople learning to use
these advanced, integrated systems effectively are self-
evident. Every time a salesperson and buyer interact in
a positive manner, the corresponding relationship is en-
riched. This enrichment translates to improved service
levels, increased customer satisfaction, and enhanced

Technology in Selling
Building and Strengthening Relationships
Corey Vance graduated from the University of Central
Missouri in May 2015 and sells for Mueller Field
Operations Inc., a company that utilizes design build
and field construction management capabilities to
provide engineered solutions to their customers. Corey
discusses how he utilizes technology to help him
initiate, grow and strengthen customer relationships.

“Traditionally, customer relationships were built
on a face-to-face conversation, a firm handshake,
and a foundation of trust. Over time, these traditions
have evolved but still hold the same core values
and principles. As technology has streamlined
communication and dissolved barriers in doing
business internationally, it has changed the way
relationships are built and procured in this new day
and age.”

“Technology has become an integral part in
starting the relationship process, building that solid

foundation, and maintaining that relationship so both
parties become mutually successful. Not only are these
phases of the process changing, but the amount of
relationships and speed in which a relationship can be
built has never been greater.”

“Salespeople have instant access to a company’s
capabilities, financials, and historical information
that helps them visualize and understand what type
of relationship they can build with that potential
customer or whether it is worth pursuing. Social media
outlets now provide customer profiles that allow access
to what the customer likes, hobbies, and information
that can be used to break the ice or find something
in common. Before any type of communication,
salespeople can know everything about the potential
customer from a mobile device anywhere in the world.
I utilize the Internet, databases and social media to help
me understand, communicate with, and better serve
my customers, thus continuously strengthening my
relationships with them.”

networks created by an organization for use by the orga-
nization’s customers or suppliers and linked to the orga-
nization’s internal systems, informational databases, and
intranet.

Internet-activated and integrated with an orga-
nization’s intranet and extranets, customer contact sys-
tems are transposed to full customer relationship
management (CRM) systems. These systems dyna-
mically link buyers and sellers into a rich communica-
tion network. Salespeople and buyers have immediate,

24/7 access to one an-
other and one another’s
organizations. Problems
can be resolved online,
routine ordering proce-
dures can be automated,
and information such as
product brochures and

customer relationship
management (CRM)
system A system that dynamically
links buyers and sellers into a rich
communication network to establish
and reinforce long-term, profitable
relationships.

198

revenues from loyal customers. For example, after a se-
ries of mergers and acquisitions, Honeywell Aerospace
found customers telling them that it was difficult to do
business with them. Two different Honeywell sales reps,
for instance, might call on the same customer in the
same day. After implementing a CRM system, customer
satisfaction with Honeywell improved 38 percent, its
on-time service request closure rate improved from 45
to 83 percent, and its sales opportunity rate improved.
Moreover, Honeywell credits the CRM system with a
100 percent annual revenue improvement from $45 to
$100 million in the sales of its after-market spare parts.15

CRM professionals have begun syncing CRM sys-
tems with social media such as Facebook, LinkedIn,
and Twitter through applications such as Faceconnec-
tor, which allow users to pull personal information into
their CRM account so that they can keep up-to-date
with customers’ needs and concerns. CRM provider
Salesforce, for instance, offers salespeople a means for
listening and responding to customers across a range of
social platforms, including Facebook, Twitter, and other
social networks. Business outsourcing solutions pro-
vider ADP, for example, credits Salesforce for helping
it to gain customer intelligence and maintain customer

connections though its ability to monitor and participate
in brand conversations, as well as identify pressing cus-
tomer service issues.16

9-3 ENSURE CUSTOMER
SATISFACTION

Exhibit 9.3 illustrates the partnership-enhancement
activities and the salesperson’s responsibility that goes
along with them. Specific relationship-enhancement ac-
tivities vary substantially from company to company but
are critical to the success of building long-term relation-
ships. Key activities include:

! Remembering the customer after the sale

! Expediting orders and monitoring installation

! Training customer personnel

! Correcting billing errors

! Resolving complaints

Traditional selling focuses on getting the order. In
a sense, the sales process was over once the order was

Exhibit 9.3

Relationship-Enhancement Activities
Partnership-Enhancement Activities Salesperson Responsibility

Provide useful information ! Relevant
! Timely
! High quality

Expedite orders/monitor installation ! Track orders
! Inform on delays
! Help with installation

Train customer personnel ! Train even when contract does not call for it

Correct billing errors ! Go over all orders
! Correct problem before customer recognizes it

Remember the customer after the sale ! Set up a regular call schedule
! Let customer know you will be back

Resolve complaints ! Preferably prevent the need to complain
! Ask customer how he or she wants complaint resolved

199CHAPTER 9: Expanding Customer Relationships

signed. The salesperson’s job was to focus on getting the
next order, and it was left to others in the organization to
deliver and install the product. However, the relational
sales process shown in Figure 9.2 indicates that many ac-
tivities must take place after the sale, and it is the salesper-
son’s responsibility to oversee and participate in all of the
follow-up activities. By being actively involved during this
stage, the salesperson increases the odds that a long-term
relationship will develop. Exhibit 9.4 discusses how sales-
people can provide follow-up activities to increase custom-
er satisfaction and build long-term customer relationships.

9-3a Remember the Customer
After the Sale
Customer follow-up methods should be used to devel-
op the relationship after the sale and to express appre-
ciation for the purchase. Many buyers feel neglected
once they place an order with a company. They were
given a lot of attention before they placed the order,
but after the order had been placed, the salesperson
disappeared. Customers consistently cite poor service,
neglect, and lack of follow-up as the primary reasons

they stopped buying. At one branch office of Wallace
Computer Services, there is a saying that hangs above
the door that states “Remember the Customer between
Calls.” This is certainly a meaningful slogan given re-
search showing that greater interaction between the
salesperson and the customer after the sale, particularly
in-person or via telephone, results in a more satisfied
and loyal customer who awards a larger percentage of
their business to the seller.17

Once an economic relationship is established, the
salesperson must continue to maintain open, two-way
communication with the buyer and continually pro-
vide timely, relevant, high-quality information to his or
her customers and be available to satisfy any additional
needs or problems. The job of educating and satisfying
the buyer never stops, and salespeople are responsible
for updating customers and pointing out additional op-
portunities that will benefit them. Collaborative discus-
sion becomes the most effective tool when dealing with
customers and their problems.

Providing information that will help customers
solve their problems is a must. By providing useful infor –
mation, the salesperson demonstrates a commitment to

TRADITIONAL VERSUS RELATIONAL SALES PROCESSFIG. 9.2

Prospect

Traditional Sales Process
Needs

Discovery
Presentation Get Order

Trust-Based Sales Process

Prospect Needs
Discovery

Presentation Earn
Commitment

Enhancing Customer Relationships
Assess customer satisfaction
Build value through post-sale follow-up
Ensure customer satisfaction
Remember the customer after the sale
Expedite orders and monitor installation
Train customer personnel
Correct billing errors
Encourage and resolve
customer complaints
Expand collaborative involvement
Work to add value and enhance mutual opportunities
Provide quality customer service
Manage customer expectations
Develop a service strategy

Traditional selling focuses on getting the order. The relational sales process indicates that many activities must take place
after the sale.

200

the buyer. The salesperson is expressing the notion that
he or she is in the relationship for the long term and
that he or she values the partnership. The salesperson
should remember to provide information not only to the
buyer but also to the secretaries, receptionists, adminis-
trative assistants, department heads, and other influen-
tial members of the buyer’s organization. If the customer
believes the salesperson is sincere, listens carefully, and
responds accordingly to his or her concerns, then an al-
ready-trusting relationship will become stronger.

Several post-sale follow-up methods can be used
to provide helpful information. First, however,
salespeople should try to determine the customer’s
preferred method of receiving this information and
provide it in that manner if possible. Perhaps one of
the best ways to provide useful information is by a
personal visit. After the sale is made, it is critical to
follow up personally and make!sure that the customer
is completely satisfied with all the promises that have
been made (e.g., delivery, installation done properly,
courteous installers). This is the only strategy that
provides face-to-face communication and thus affords
the salesperson the opportunity to read the customer’s
body language. When a salesperson takes the time to
make a well-planned personal follow-up visit, he or she
indicates to the prospect that he or she really cares.
A good salesperson will use the follow-up call to keep

the customer informed of new developments in the in-
dustry, new products, or new applications. Providing
this information may bring about future sales. When
a salesperson makes a follow-up call, he or she should
always have an objective for the sales call. The sales-
person should avoid long gossip sessions or chitchat.
It is the salesperson’s job to add value, not waste the
customer’s time. While the personal visit can be a very
engaging method, perhaps its biggest weakness is that
it can be time consuming.

A quick and efficient option for providing useful in-
formation after a sale is by using the telephone. The cell
phone has provided salespeople with an opportunity to
stay in touch with customers while on the road. A sales-
person can easily make 7 to 10 phone calls per hour, and
the cost is minimal. The telephone has the advantage
of a two-way exchange of information and provides a
mechanism for immediate feedback, although it, as well
as other non-face-to-face methods of communication,
does not provide the opportunity to read the customer’s
body language. This, in part, may be rectified by us-
ing technology such as Skype or Facetime, which allow
two-way audio and video communication. The phone
can be used to verify delivery, inform the customer of
any changes (e.g., price, delivery schedule), check for
problems in general, and provide new product, service,
and industry insight.

Exhibit 9.4

Building Relationships Through Follow-Up
Joseph (Joe) Sparacino, senior vice-president and national sales manager for Omega Performance, who is
responsible for leading his teams in sales, consulting, and service activities for client relationships across the
United States, discusses activities involved in providing exquisite customer service after the sale. According to Joe,
long-term relationship building can be enhanced after the sale by:

! Foreseeing and planning post-sale customer needs prior to completing a sale.
! Developing a post-sale long-term vision and strategy for ensuring customer satisfaction.
! Making certain that customers are delighted with their purchase decision and think in terms of “Look what

I bought” rather than “Look what they sold me.”
! Planning and executing periodic post-sale follow-up contacts with customers to assess their level of satisfaction.
! Touching base with customers on issues or concerns discussed at the point of the initial sale.
! Recalling and recognizing customer milestones.
! Regularly evaluating the products and/or services customers use, and recommending new or upgraded

products and/or services that better meet their needs.

Source: http://blog.omega-performance.com/sites/default/files/BeyondSelling.eBook_.1110.pdf accessed on 5/9/12.

201CHAPTER 9: Expanding Customer Relationships

E-mail and social media provide an efficient and
cost-effective way to continuously keep in touch with
customers. When getting pertinent company and
buyer information, the salesperson should also get
e-mail addresses. Salespeople are able to include not
only text, but also sound and video to e-mail messages
they send to customers. Social networking sites such as
LinkedIn and Facebook allow salespeople to keep in
touch with customers by posting updates, information,
and feature reviews. These tools, along with applica-
tions such as Twitter, Instagram, and Snapchat allow
salespeople to have brief interactions with customers
between calls to provide information, address customer
concerns, and simply get to know customers on a more
personal basis. Moreover, information gleaned from us-
ing social media’s search features can provide salespeo-
ple with insights on industry trends, or the preferences
of prospects or customers.

Finally, a handwritten thank-you card to a customer
is an inexpensive and convenient form of customer follow-
up. It should always be used in conjunction with the other
follow-up methods. The mail can also be used to send out
new promotional material, information about new prod-
ucts, and trade publication articles that may be of interest
to customers. Periodically, a salesperson could send his or
her customers a short survey that asks “How are we do-
ing?” Periodically checking the customer’s level of satisfac-
tion might highlight an area of concern that the salesper-
son can take care of before it becomes a major problem.

9-3b Expedite Orders and Monitor
Installation
Generally, salespeople will set estimates on product
delivery times. The salesperson must work to prevent
a delay in delivery. The salesperson’s job is to track
the order status and inform customers when there are
delays. It is unpleasant to inform a buyer of a delay,
but the information enables buyers to work around
the inconvenience and plan accordingly. Waiting until
the delivery date to announce a delay is inconsiderate
and hurts the trust built between the salesperson and
the buyer.

Many problems with shipping and the delivery of an
order are out of the salesperson’s control. However, to-
day’s sophisticated tracking systems allow salespeople to
track orders and find out what is causing the delay. The
salesperson must keep the customer up-to-date on the
delivery status and any possible delays.

Monitoring order processing and after-sale ac-
tivities is critical to enhancing the relationship with a

customer. Customers often have done a poor job of
forecasting, run short of product, and may expect their
salesperson to bring their emergency to a happy con-
clusion. Although it is not always possible to speed up
orders, the salesperson should investigate and attempt
to do everything possible to help such customers. If the
buyer sees concern on the salesperson’s part and knows
that the salesperson is attempting to help the buyer,
then the relationship will be strengthened, even if the
order cannot be pushed through as quickly as the buyer
had hoped.

Depending on the industry, salespeople generally
do not help with installation. Nevertheless, some sales-
people believe that it is in their best interest to supervise
the installation process and to be available when custom-
ers have questions. Typically, installers do not have the
same relationship with the customer and may not have
the type of personality to deal with difficult situations.
The salesperson can act as a buffer between the installa-
tion team and the customers.

9-3c Training Customer Personnel
Companies are always looking for ways to gain a com-
petitive advantage. Once the order is placed, traditional
salespeople are happy to get their commission or bonus
and move on to their next conquest. Relationship man-
agers understand the real work begins once the order is
signed. Training customer personnel may or may not be
included in the price terms of the agreement. Salespeo-
ple may use this to gain the competitive edge they need.
For example, instead of only training one person as stat-
ed in the sales terms, the salesperson gladly trains three
people for the same price. Or, perhaps there is no men-
tion of training in the price terms, but the salesperson

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od

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ut

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om

Successfully training customers is a vital part
in the selling process.

202

takes it upon him/herself to provide the necessary train-
ing. Adding value should always be a priority with any
salesperson.

When the product is technical, customer training
might require the assistance of the company trainer
or engineer. The salesperson still has a key role, as he
or she knows the customer best, and should serve as
the facilitator to ensure that all of the parties have
been properly introduced and start off in a positive
manner. The salesperson should schedule the training
sessions as conveniently as possible for the customer.
Customer education is an integral part of the market-
ing strategy of Ontario Systems Corporation, a collec-
tions software company. What separates Ontario from
its competitors is its ability to provide timely training
and education for all its customers. Ontario knows ser-
vice after the sale is crucial, which is why it provides a
toll-free telephone number for 24-hour service. Each
year, Ontario strengthens its relationship with custom-
ers by providing one week of training, seminars, and
goodwill at its home office. Ontario understands the

importance of the team approach to providing out-
standing customer service.

9-3d Correct Billing Errors
Billing errors could turn into customer complaints if
not found and corrected quickly. A salesperson should
go over all orders and billing records to ensure proper
billing has been sent to the customer. A customer will
know the salesperson has his or her best interests in
mind if the salesperson corrects problems without be-
ing prompted by the customer. As seen in “An Ethical
Dilemma,” a billing error can result in an ethical
dilemma.

9-3e Resolve Complaints and
Encourage Critical Encounters
Complaints will never be completely eliminated by any
company. Nevertheless, it is every company’s hope that
it can reduce the frequency of complaints. Complaints

A
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om

Jordan Bell is a sales representative for a manufac-
turer of windshield wipers that calls on automotive
supply shops and various retail outlets. In review-
ing an invoice scheduled to be submitted to one
of his newest customers, he noticed a pricing error.
The price should have included a quantity discount.
Jordan recalls mentioning the opportunity for earning
quantity discounts to this customer when taking the
customer’s
first order
several
months ago,
but recalls
not much
was made
of it since at!that time this customer had no intent
to place a large order. If Jordan were to obtain this
higher price,!he would realize a significantly larger

commission on this order. Given that this customer
was relatively new, there was some question as to
whether the customer would even realize he was not
receiving a quantity discount. If you were Jordan,
what would you do?
(A) Contact my billing department and have them

correct the invoice prior to sending it.
(B) Keep quiet, but if the customer questions the

price, then inform the customer that billing made
an error and that I will have them send out an
invoice that includes the quantity discount.

(C) Take my increased commission and treat myself to
a nice dinner out since I deserve it; if the customer
questions the price, tell the customer that quan-
tity discounts only take effect after a customer
has been buying from our company for at least
nine months, so they will be eligible for a quantity
discount very soon.

An Ethical Dilemma

203CHAPTER 9: Expanding Customer Relationships

typically arise because the product or service did not live
up to the buyer’s expectations. Research shows that com-
panies that systematically monitor, track, and address
service failures, instances in which buyer expectations
are not met, are rewarded with more satisfied customers
and greater customer retention.18

Buyers complain for any number of reasons: (1) late
delivery, (2) wrong order sent (e.g., too many, too
few), (3)! product performs poorly, or (4) nobody at
the salesperson’s company takes the buyer’s problems
seriously. (See Exhibit 9.5 for a more comprehensive
list of complaints.) Many times, the complaint is not
the fault of the salesperson (e.g., late delivery, wrong
order, product performs poorly). However, this is not
a concern to customers, as they expect the salesper-
son to resolve it. Traditional salespeople have been
known to pass the blame when complaints arise. A
salesperson would be better off tackling the complaint
by accepting responsibility and promptly fixing the
problem. Salespeople get into trouble by overpromis-
ing what their product can do, being overly optimistic
about delivery dates, and not being attentive to their
customers when they do complain. Many complaints
can be avoided by giving customers a reasonable
expectation of what a company’s product or service
can do for them.

If periodic meetings take place between the buyer
and the seller after the sale, then in all probability, most
of the important issues are being discussed. Salespeople
must ask their buyers to be candid with them and en-
courage the buyer to discuss tough issues (i.e., late de-
liveries, damaged products), especially in areas where
the salesperson’s organization is providing less-than-
satisfactory performance. Some buyers will not com-
plain because they feel it will not do any good. Others
will not complain because they feel that the salesper-
son should be in tune with their problems or concerns

and recognize these
problems on his or her
own. If a salesperson
encourages critical
encounters and acts
accordingly to diffuse
a situation in which the

Complaints will never be
completely eliminated by any
company, but they must be

addressed and resolved.

critical encounters
Meetings in which the salesperson
encourages the buyer to discuss tough
issues, especially in areas where the
salesperson’s organization is providing
less-than-satisfactory performance.

Exhibit 9.5

Typical Customer Complaints
1. Late delivery
2. Damaged merchandise
3. Invoice errors
4. Out of stock—back orders
5. Shipped incorrect product
6. Shipped incorrect order size
7. Service department unresponsive
8. Product does not live up to expectations
9. Customer not informed of new developments

10. Customer’s problems not taken seriously
11. Improper installation
12. Need more training
13. Price increase—no notice
14. Cannot $nd the salesperson when needed
15. Unreturned phone calls

buyer’s expectations have not been met, then this will
help with subsequent critical encounters. If the sales-
person does not act on these issues, then future meet-
ings with the buyer will not uncover problem areas
because the buyer is convinced nothing will be done to
solve them.

Some salespeople tell the customer what he or she
wants to hear to get the order and cannot deliver on
promises made. For instance, salespeople promising a
delivery date they know has little chance of being met.
Complaints can be avoided, in part, by being truthful
when presenting a product or service’s capabilities. Pro-
viding sales support can eliminate problems with late de-
liveries, order errors, and the feeling that the salesperson
does not care about the customer’s complaints.

9-3f A Procedure to Handle
Complaints
Salespeople must have an open communication line
with customers and encourage feedback, either posi-
tive or negative. Some research indicates that as many as
25!percent of business customers who encounter a prob-
lem will not complain.19 Thus, salespeople must build re-
lationships to the point where buyers will not hesitate to
speak their minds if they are unhappy with the service.

204

If the customer does not complain, then the salesperson
does not know what needs to be fixed.

When a customer does complain, the complaint
should be handled quickly and with great sensitivity. One
study indicates that if a company fails to deal with cus-
tomers and prospects who complain, those customers will
tell on average up to 10 people about their bad experi-
ence and, with e-mail and the Internet, this may turn into
thousands.20 Another study showed that when customer
complaints are addressed, these customers are 30!percent
more loyal than those who do not complain and 50 percent
more loyal than a dissatisfied complainant—which in-
dicates that the effort to make amends is worth it.21 Re-
search in consumer services suggests that satisfactory
handling of customer complaints is key to customer rec-
ommendations of a firm to others.22 A general procedure
for handling customer complaints follows.

9-3g Build the Relationship to
the Point That!Your Customers
Are!Comfortable Complaining
Salespeople have been overheard saying to their cus-
tomers, “Had I known that you were unhappy with
our service, I could have fixed it.” The buyer typically
responds, “Well, I gave you plenty of signals. Why
weren’t you aware of the problems?” The buyer and
salesperson must work together to develop a trust so
that whenever an issue arises, either person feels com-
fortable speaking up. Open communication channels
are a must for good customer service. Salespeople
cannot be afraid to ask their customers, “How are we
doing?” Some companies con duct 30-, 60-, and 90-day
customer satisfaction follow-up visits after the sale.
Beyond that, salespeople maintain quarterly follow-
ups, even if only by phone. This at least tells customers
that the salesperson is interested in them and wants to
service their account well.

9-3h Listen Carefully and Get
the Whole!Story
The salesperson must listen carefully to what is being said
and what is not being said. Good salespeople let the cus-
tomer know that they are happy the complaint has been
brought to their attention. Chances are that the customer
will not complain again if he or she is made to feel uncom-
fortable with the initial complaint. The salesperson must
be careful not to interrupt early in the discussion. The
customer must be allowed to vent his or her frustration.
Once the customer stops complaining, the salesperson

may have to probe and ask follow-up questions to get the
whole story. For instance, the buyer may not have told the
salesperson to whom he or she talked to at the salesper-
son’s company about the problem, and this information
can be helpful to the salesperson in solving the complaint.
This is a good time to show empathy. The salesperson
must consider how he or she would feel if placed in the
customer’s position. Even if the customer complains in an
angry tone, and it is not the salesperson’s fault, the sales-
person should apologize for any inconvenience and make
the customer aware that he or she is anxious to resolve the
problem and keep the buyer as a satisfied customer. To
learn how Corey Vance, a sales representative at Mueller
Field Operations Inc., uses listening to develop strong
relationships see “From the Classroom to the Field:
Strengthening Relationships by Listening.”

9-3i Ask Customers How They Would
Like Their Complaint Resolved
Many salespeople attempt to solve the complaint with-
out understanding what the customer wants them to do.
For example, a salesperson may reason that the last cus-
tomer wanted a 20 percent discount to make things bet-
ter. “Thus, I will offer this unhappy buyer the same
thing.” The salesperson may be surprised to find out
the buyer wanted something totally different to re-
solve the problem. The salesperson cannot be afraid to
ask the customer what it will take to make him or her hap-
py. A salesperson could say something like, “Theresa, we
value you and your company’s business. I am sorry for the
inconvenience we caused you. Can you please tell me what
we can do to solve this problem and keep you as a satis-
fied customer?” Then, the salesperson must listen carefully.
Perhaps the buyer simply wants an apology, a discount, or
a substitute until the regular shipment arrives. Salespeople
typically find that the customer is not demanding as much
as they anticipated, considering the circumstances of the
complaint. The solution should center on what the custom-
er wants and not what the salesperson thinks is appropriate.
When salespeople provide customers choice in the com-
plaint resolution process, they are likely to increase cus-
tomers’ perceived control over the process and ultimately
enhance customer satisfaction.23

9-3j Gain Agreement on a Solution
Once the salesperson hears what the customer wants, he
or she must agree on a solution. Sometimes the sales-
person can do exactly what the customer asks. Other
times, the customer might ask for an unrealistic solution.

205CHAPTER 9: Expanding Customer Relationships

The salesperson’s focus should always be on trying to do
exactly what the customer wants, if possible. When that
is not possible, the salesperson’s message should concen-
trate on what he or she can do for the customer and then
do it quickly.24 The conversation might sound like, “Jim,
I’m sorry for the inconvenience we caused you. Thanks
for your suggestions on what we need to do to resolve the
problem. Here are a couple of things we can do—which
of these will work better for you?” The salesperson is
telling the buyer that he or she cannot do exactly what
the buyer asked, but is providing options for what can
be done. Good salespeople always focus on the positive.

9-3k Take Action—Educate
the Customer
Once an agreement is reached, the salesperson must
take action and solve the customer complaint immedi-
ately. The communication lines must be kept open to
the customer (e.g., letting him or her know when the
repair people will be arriving). Monitor complaint res-
olution and keep the customer up-to-date on progress.
This is also a good time to convey that steps have been
taken to ensure that the problem will not occur!again.

If customers have unrealistic expectations of
the services provided, then this would be a good
time to educate them so that they will have realistic

Strengthening Relationships by Listening
Corey Vance graduated from the University of Central
Missouri in May 2015 and sells for Mueller Field Opera-
tions Inc., a company that utilizes design build and
field construction management capabilities to provide
engineered solutions to their customers. Corey dis-
cusses how what he learned in his sales class helps him
to build lasting relationships.

“A core principal that I learned in the sales classroom
throughout my time at the University of Central Missouri
was the importance of questioning and listening. Asking

pointed questions that allow the customer to elaborate
and show emotion, and then carefully listening to their
responses, gives me a better understanding of what is
most important to them. When I understand what the
customer values most, then I can implement this into
my sales strategy, give customers what they want, and
ultimately build better relationships. My most successful
sales meetings, including those resolving complaints,
are when I ask good questions and spend most of my
time listening.”

From the Classroom
to the Field

expectations. Some salespeople promise the moon to
secure an order, and then let the customer down when
the product or service does not meet expectations. This
is not the way to develop a trusting relationship.

9-3l Follow-Through on
All Promises—Add!Value
Whatever promises are made, good salespeople must
make sure that they are kept, and this is a good time to go
beyond what has been promised. Those salespeople who
over-deliver what is promised will truly impress their cus-
tomers and build stronger relationships faster than their
competitors. By exceeding expectations and adding value,
the salesperson helps ensure repeat business. Exhibit 9.6
summarizes the procedures to handle complaints.

9-4 EXPAND COLLABORATIVE
INVOLVEMENT

A salesperson’s goal is to work with customers who have
entered into a strategic alliance with the salesperson’s firm.
This is done by building trust over a long period of time. The
salesperson should always look for ways to improve the rela-
tionship and create a stronger bond. One way to accomplish

206

this goal is to expand the collaborative involvement
between the buyer’s and salesperson’s organizations. The
salesperson may take a group of engineers along on a sales
call and introduce them to the buyer’s engineers. It may
be possible for the engineers to work together to enhance
the product offering or perhaps provide a more custom-
ized solution. Customers often know the strengths and
weaknesses of the product they use and can provide some
insight into how improvements can be made.

Another example of a company’s attempt to expand col-
laborative involvement is to host a week-long series of semi-
nars, training sessions, and social engagements with its cus-
tomers to expand the relationship. Brainstorming sessions
with customers demonstrate a willingness to listen, show
that the company cares, and often result in better ways to
serve customers. Any time the salesperson can involve ad-
ditional personnel from the buyer’s company in relationship
building, the relationship should become stronger.

9-5 WORK TO ADD VALUE
AND ENHANCE MUTUAL
OPPORTUNITIES

To build mutually satisfying relationships between buy-
ers and sellers, professional salespeople must work
toward adding value and enhancing mutual opportuni-
ties for the customer. This can be done by reducing risk
through repeated displays of the seller’s ability to serve

the customer. By demonstrating willingness to serve the
customer, the seller reduces the buyer’s risk—both real
and perceived. A good relationship is one that has few, if
any, unpleasant surprises.

Salespeople must also establish high standards
and expectations. Many relationships fail due to un-
met expectations. The higher the customer’s expecta-
tions, the better, provided the seller can meet or exceed
those expectations. Salespeople should ensure that the
customer’s expectations are reasonable by soliciting
customer expectations, clearly and honestly conveying
the firm’s offering, and continually working to improve
performance.

Finally, salespeople must monitor and take action
to improve customer satisfaction. Salespeople must
never let up on this. Doing so only invites competi-
tor challenges. A good salesperson must always look
for cracks in the relationship and patch them before
insurmountable problems occur. All relationships re-
quire work, and taking a good customer for granted is
foolish. Remember that the salesperson must continu-
ally add value to the relationship or he or she will run
the risk of losing the customer. Exhibit 9.725 provides
some suggestions for adding value by demonstrating to
customers that the salesperson cares about them and
appreciates their business.

9-5a Provide Quality Customer
Service
All salespeople are looking for a competitive edge to
help them differentiate their products in the eyes of
customers. Many of the products that a salesperson
sells have essentially the same features and benefits
as those of competitors. Chris Crabtree of Lanier
once said, “A copier is a copier, is a copier. There is
just no difference between what I have to offer and
my competitors. We!all charge about the same price.
In fact, I can match any price my competitor puts on
the table. That leaves only one attribute for me to
differentiate on—service.”

More and more
companies are turning to
service quality, which
means meeting and/or
exceeding customer ser-
vice expectations, as a
strategy to acquire and
maintain customers. A
salesperson must be able
to convince a customer

Exhibit 9.6

General Procedures for Handling
Complaints

1. Build relationship to the point that the customer
is comfortable complaining.

2. Listen carefully and get the whole story.
3. Ask the customer what he or she would like

you!to do.
4. Gain agreement on a solution. Tell the custom-

er what you can do; do not focus on what you
cannot do.

5. Take action; educate the customer so he or she
has realistic expectations.

6. Follow through on all promises. Add value.

collaborative involvement
A way to build on buyer–
salesperson relationships in which
the buyer’s organization and the
salesperson’s organization join
together to improve an offering.

service quality Meeting and/or
exceeding customer service
expectations.

207CHAPTER 9: Expanding Customer Relationships

that service is important, demonstrate service quality,
and then maintain a high level of service over an
extended period of time.

The problem is that every salesperson claims to
provide outstanding service. The goal today is not to
meet customer expectations but to exceed them. Sales-
people will rarely be given a second chance to prove
that they provide outstanding service if they do not get
it right the first time. A sign in a small-town business
reads,

Service is advertised . . .
Service is talked about . . .
But the only time service really counts . . .
Is when it is delivered . . .
And we promise your experience with us will
be outstanding.

Customers do not care about slogans and service
claims until something happens to them. This is called
a moment of truth. Each salesperson experiences daily

moments of truth—brief moments that occur whenever
a customer comes into contact with a salesperson, the
training staff, installers, field engineers, or service per-
sonnel and has an opportunity to form an impression.
These moments of truth are when the customer will de-
termine if promises are being kept by the sales organiza-
tion, and whether the salesperson truly cares about the
customer or is simply an order getter.

There are four benefits of service enthusiasm that
allow the sales organization to gain an advantage over
its competitors. First, reputation is an important part of
any organization’s ability to attract and keep new cus-
tomers. Reputation allows a salesperson to distinguish
him- or herself from the competition. A solid reputa-
tion indicates that the salesperson cares and will help
him or her establish loyal relationships with customers.
Reputations take a long time to establish and only one
negative event to destroy.

Second, by providing good customer service the
first time, an organization makes the profit that it needs

Exhibit 9.7

Enhancing Customer Value
1. Keep in touch with customers to pass along information and solicit customer feedback.
2. Let customers know in writing that you enjoy working with them.
3. Ask customers what can be done to make it easier on them to work with you.
4. When appropriate, refer customers to others.
5. Provide customers with leads.
6. Thank customers during the relationship, not only after the sale has been made.
7. O”er advice for improving customers’ operations.
8. Pass along useful articles or ideas.
9. If possible, lend a helping hand (e.g., one sales manager has been known to assist customers in their booths

at!trade shows).
10. Recommend customers for awards or news stories.
11. Be candid in providing opinions.
12. Come to the defense of customers who are criticized.
13. Quickly address customer problems.
14. Demonstrate reliability by promptly (the day it is received) responding to customer communication.
15. Provide customers with reports, survey results, and articles free of charge.
16. Be proactive, rather than reactive, when dealing with customers. Take the initiative to do what is right or

necessary before being asked.
17. Keep your word. If circumstances dictate otherwise, then quickly explain yourself.
18. Show respect by not getting “too friendly” with customers.

208

to stay in business. Whenever mistakes are made (e.g.,
wrong order, short order delivered), service personnel
have to sort out the problem and fix it. The result could
lead to a lost customer. In any event, it does not take
long to go into the red when people have to be added
to fix problems. Efficient operations, cost savings, and
doing things right the first time increase the chances for
increased profits.

The third benefit of service enthusiasm is conve-
nience. It is critically important to put the customer’s
convenience first. For example, as mentioned earlier,
most customers are uncomfortable complaining. Thus,
a salesperson must make it easy for his or her custom-
ers to discuss problems or complaints. Since customers
can be reluctant to complain, the salesperson must be
vigilant in asking customers to express their problems or
concerns. Building a strong, trusting relationship with
open communication will make it easier for customers
to voice their concerns. Furthermore, to be convenient,
salespeople must be readily accessible to customers.
This involves using technology (e.g., cell phone, e-mail)
to stay accessible, quickly acknowledging customer re-
quests, and then responding in an appropriate and ex-
pedient manner. When it comes to servicing customers,
salespeople often must accommodate customers’ sched-
ules rather than their own. Naturally, this may pose some
inconvenience to the salesperson, but customer needs
must be considered first.

Salespeople must design user-friendly feedback
systems. Periodically inquiring about customer satisfac-
tion can greatly enhance a customer’s feelings toward
a salesperson and his or her organization. Ontario Sys-
tems (http://www.ontariosystems.com) provides a Cli-
ent Resource Center link on its Web site. Clients can
easily get up-to-date information on product support,
training, industry links, and discussion lists. Ontario
Systems is always looking for ways to provide more ser-
vices to its clients.

Finally, service enthusiasm goes hand in hand with
spirit. A customer can be turned onto an organization by
meeting many caring “can-do” people. The spirit must
start with an enthusiastic, service-minded corporate cul-
ture. The salesperson, sales manager, field engineer, in-
staller, and customer service representative must all have
the same service enthusiasm to generate the benefits of
service enthusiasm. That is why the salesperson must
monitor and coordinate all the people who have access
to the account to ensure that good customer service is
taking place.

The most difficult aspect of customer service is the
potential for inconsistency. For instance, field engineer

A, who has a great understanding of service enthusiasm,
may be called into an account early in the week. The
customer is very impressed. Three weeks later, the cus-
tomer calls for help again. Field engineer A is out on
another account, and field engineer B, who has little or
no service skills, is sent out on the next call. Field engi-
neer B is good at fixing the problem but has a hard time
relating to customers; in fact, he is downright cold! As a
result of this unevenness, the customer’s level of satisfac-
tion decreases.

The inconsistency of customer service is a problem
for every sales organization. By understanding the ben-
efits of service enthusiasm and the rewards of proper
spirit, the sales organization can ensure consistency and
exceed customer expectations.

9-5b Customer Expectations
A salesperson must meet the needs of his or her cus-
tomers. At a minimum, customers expect a warm and
friendly salesperson. Buyers have enough things going
on during their day that it would not be a plus to have to
deal with a surly salesperson. Warmth and friendliness
are the building blocks of a successful relationship.

Reliability is another attribute that buyers look for
in choosing a salesperson with whom to do business.
Customers must have the confidence that the expect-
ed service will be delivered accurately, consistently,
and dependably. Helpfulness and assistance are two
more variables that buyers expect when working with
a salesperson. Will the customer be able to find his or
her salesperson when he or she needs to do so? Can
the salesperson provide the speed and promptness
needed by the customer? The salesperson can solve
this issue by developing a regular call routine so that
the customer knows when to expect the salesperson.
Customers also want to deal with salespeople in whom
they have confidence and trust will always do what is
right for them (i.e., assurance). As such, salespeople
must be trustworthy. Furthermore, salespeople must
pay attention to detail as customers expect accuracy
from them, particularly as it pertains to product or
service orders. Other customer expectations include
follow-through as promised, empathy, and resolution
of complaints, mistakes, or defects. The customer
must know that if anything goes wrong, the sales-
person will move in quickly and solve the problem.
Ultimately, the customer is looking for someone who
is personally accountable for their desired results.26
Exhibit 9.8 summarizes what customers expect from
their salesperson.

209CHAPTER 9: Expanding Customer Relationships

9-5c Develop a Service Strategy
Salespeople can calculate the lifetime value of their cus-
tomers. For example, Hershey Foods Corporation knows
exactly how much candy it has sold at the Walmart in
Muncie, Indiana. It is easy for Hershey to calculate the
loss if any customer decides to replace it. It is imperative
for Hershey to provide the service level that each of its
customers demands. Lower-quality service can lead to
the loss of a customer.

Developing a service strategy allows salespeople
to plan their actions for each customer. A service strategy
asks salespeople to identify their business and customers
and what the customers want and what is important to
them. Salespeople also have to determine how their cus-
tomers’ needs and perceptions are changing. Salespeo-

ple cannot be afraid to
ask how customers rate
them in terms of meet-
ing their expectations.
What does the sales-
person’s company do
best, and what can the
organization do better?
Salespeople, ultimately,
must determine how to
position their company
in the market to differ-
entiate its products and
services. All this must

be done while directing efforts against the competitors.
Exhibit 9.9 is an example of a checklist for developing a
service!strategy.

9-5d Customer Service Dimensions
There are three dimensions of customer service, with
communication being the most important. Most
problems arise because the customer was not informed
of a change in plans (e.g., late delivery, price increase).
Salespeople are extremely busy and many times do not
have the time to communicate with all their customers.
Communication tools such as e-mail or Twitter can be
used to quickly do mass communication to inform cus-
tomers of these changes. Over time, the telephone and
personal visits can be used to confirm that customers are
aware of the changes.

Another customer service dimension is resilience
Resilience is the ability of a salesperson to get knocked
down several times a day by a customer’s verbal assault
(i.e., complaint) and get right back up with a smile
and ask for more. A salesperson cannot lose his or her

Exhibit 9.8

Customer Expectations
of!Salespeople

1. Warmth and friendliness
2. Reliability
3. Helpfulness/assistance
4. Speed or promptness
5. Assurance
6. Accuracy
7. Follow-through (as promised)
8. Empathy
9. Resolution of complaints, mistakes, or defects

10. Tangibles

service strategy
A plan in which a salesperson identifies
his or her business and customers,
what the customers want, and what is
important to them.

communication A two-way flow
of information between salesperson
and customer.

resilience The ability of a salesperson
to get knocked down several times a
day by a customer’s verbal assault (i.e.,
complaint) and get right back up with a
smile and ask for more.

Exhibit 9.9

Checklist for Developing
a!Service Strategy

Questions a salesperson must ask when developing a
service strategy:

! What is our business?
! Who are our customers?
! What do our customers want, and what is

important!to them?
! How are our customers’ needs and perceptions

changing?
! How are social, economic, and political factors

a”ecting current and future customer needs
and!our ability to respond to them? How are
competitors responding to these factors?

! How do customers rate us in terms of their
expectations?

! For what are we best known?
! What do we do best?
! What can we do better?
! How can we position ourselves in the market

to!di”erentiate our services?

210

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cool just because a customer does. A tired salesper-
son must treat late-afternoon, difficult customers the
same way that he or she would treat a dilemma at the
day’s beginning. They must both be treated well.

Finally, service motivation is another impor-
tant customer service dimension. Salespeople must
be motivated to find time each day to deal with diffi-
cult customers and problems that exist. Ignoring these

activities will not make them go away. Working diligent-
ly on behalf of the customer indicates to him or her that
the salesperson truly cares about the partnership. If a
salesperson has a com-
plaint from a customer
and gladly fixes it, the
customer becomes a more
committed customer.

service motivation The
desire of a salesperson to serve
customers each day.

211CHAPTER 9: Expanding Customer Relationships

CHAPTER CASE9
N AT U R A L LY B E A U T I F U L , I N C .

B A C K G R O U N D
Naturally Beautiful, Inc. is a maker and marketer of organic
cosmetics. Its cosmetics are formulated from all-natural
organic ingredients. Although the company currently
serves primarily the higher-end market, distributing
through upscale department stores and boutiques, it
would like to expand its distribution channels. It is currently
developing an organic line to sell through outlets such as
Walgreens, CVC, and Wal-Mart. Long-term plans include
expanding internationally, first to Canada and Mexico,
and eventually to Western Europe and beyond. Sales are
strong and continue to rise. The company gives much of
the credit for its success to its salesforce, which has done
a great job expanding into new outlets while establishing
and maintaining strong customer relationships.

Jill Aunaturale, a nontraditional student, was hired as a
sales representative by Naturally Beautiful out of college
approximately ten months ago. Since being hired she has
had a good deal of success, landing several new accounts. In
fact, if she can land a few more accounts by the end of the
rapidly approaching fiscal year, she will exceed her quota
and achieve a hefty bonus. Jill is counting on this bonus
because she has planned a big family trip and does not want
to let her family down.

C U R R E N T S I T U AT I O N
Lately, Jill has heard various concerns from several of her
customers. For instance, the other day she received a voice
mail from Rick at Beauty Boutique, a recently acquired
customer whose order was incorrect. A few items were
missing from the order. Jill figured that shipping must have
inadvertently omitted the items and that Rick could give
them a call to get it fixed. She figured that it was not her

fault, Rick still had product to sell and she certainly did not
have time to mess with this. Similarly, she received a text
from Kim at Devine’s department store indicating that an
expected delivery was late. Again, Jill figured she could not
do anything about the delivery. She texted Kim to tell her
to contact the shipping department at Naturally Beautiful
about the matter. Jill also received a second e-mail from
Sarah at Cosmetics Unlimited:

Dear Jill,

A few weeks ago you promised you would return to train
our beauty consultants on your newest product line. Our
consultants need to fully understand the benefits of this
new product and how it is to be applied so that they can
best serve our customers. As you know, we take great pride
in providing the highest quality products and services to
our customer base. We discussed this when you offered me
your line. Although we like your line, if we are unable to
offer our customers top-shelf service with your brand then
we may have to look elsewhere.

Sincerely,

Sarah

Jill recalls telling Sarah that she would conduct training for
her sales consultants but has been so busy working to get
new accounts that she put it on the back burner. Jill was
not sure that she could put Sarah off much longer, but felt it
would be in her best interest to write her back and stall her
for at least a couple more weeks. By then, she thought, she
might have exceeded her quota.

To Jill, these were but minor customer issues, not even
problems. In her opinion, these were nothing more than
“needy” customers. As far as she was concerned, she was
delivering a great product at a great price. Besides, she had more
sales to make and nobody was going to help her if she came up
short on providing that great family vacation she promised.

212

Q U E S T I O N S
1. For each of the concerns expressed by Jill’s customers

in the case, explain an alternative means for handling
the concern.

2. What are the potential long-run implications of how Jill
is handling her current customers?

3. What types of activities can Jill do after acquiring an
account to enhance customer value and ensure long-
term customer relationships?

R O L E P L AY
Situation: Read the Naturally Beautiful, Inc. case

Characters: Jill Aunaturale, sales representative for Naturally
Beautiful; Rick, customer at Beauty Boutique; Kim, customer
at Devine’s department store; Sarah, customer at Cosmetics
Unlimited

Scene: Employing a more personal touch, Jill contacts each
customer and takes appropriate action to ensure customer
satisfaction. Role play these conversations.

213CHAPTER 9: Expanding Customer Relationships

CHAPTER ROLE PLAY
Expanding Customer Relationships9

M I D W E S T L I V E B A I T & TA C K L E , L LC

B A C K G R O U N D
Midwest Live Bait & Tackle, LLC, located in St. Louis, Missouri, is
a regional wholesaler of live bait and tackle to bait shops and
service stations in Missouri, Illinois, Arkansas, Kentucky, and
Tennessee. Known for its high-quality live bait, reasonably
priced tackle, and good customer service, the company has
been able to maintain a steady market share over the years.
Its five salespeople have been primarily responsible for selling
and servicing the company’s current accounts. This involves
making sure that customers have bait and tackle when
needed, assisting them with merchandising and pricing, and
ensuring their complete satisfaction.

Wanting to retire, the owner recently sold the business.
The new owner was very ambitious and had big plans for
expanding the company’s market share. He felt that the
quickest and most efficient way to move in that direction
was to have his current salespeople actively pursue new
accounts. Thus, he mandated new customer quotas,
compensated salespeople for achieving targeted growth
goals and threatened their jobs if minimal new account
requirements were not met.

C U R R E N T S I T U AT I O N
Dan Chub has been a sales representative for Midwest for
over five years. Until the new ownership, he enjoyed his job
very much and made a good living doing it. With his fourth
child on the way, a poor economy, and a tight job market,
Dan did not want to jeopardize his position with the company
and reluctantly went along with the new changes. However,
he was very concerned with how much time prospecting
for new business was taking. He felt it may be endangering
his current customer relationships. What follows are excerpts
from a recent conversation with Earl Carp, a very significant
customer, especially considering he sold bait and tackle out of
his service station convenience store and was contemplating
opening a couple more locations:

Earl: Dan, I’ve been having some problems recently
with the minnows you’ve supplied for me. Some
loss is typical, but lately the loss percentage has
increased. What’s going on here?

Dan: I don’t know Earl. None of my other customers
are having problems with their minnows. You’re
making sure that you don’t add chlorinated water
when replenishing your minnow holding tanks,
aren’t you?

Earl: Of course! I recently refurbished my tanks and
added a new oxygen system. Maybe that has
something to do with the increasing loss. Could
you check it out and see what you think?

Dan: Just let me know how many minnows you think
you lost and I’ll see what I can do.

Earl: Okay, but since this has been going on for the
last couple of weeks I was just hoping you might
be able to give me your thoughts on my new
system. By the way, that new line of fishing poles
doesn’t seem to be moving very well. How are they
moving for your other customers?

Dan: I haven’t heard much about those, so I guess they
are moving okay.

Earl: Do you have any ideas on how I might improve
my merchandising so I can move more of them?
Perhaps my price point is too high. What do
you think?

Dan: I’m really busy today Earl. I have several stops yet
to make and I need to call on a couple of new
prospects in the area.

Earl: You’re not planning to supply my competition
down the street, are you?

Dan: I don’t know Earl. I’ve got to make a living, too,
you know.

Earl: Last week you promised to bring by some of
those new plastic cricket containers you were
telling me about. Did you bring any of those for
me to examine?

Dan: Oh no, those completely slipped my mind.

Earl: Hmm. Well, certainly you brought me the crayfish
you promised me last week. I’ve had customers
coming in every day asking for them. Also, how
about those waterdogs we talked about? I’ve been
getting some requests for those.

214

Dan: I should have told you sooner, but our usual
crayfish supplier is having difficulty getting us as
many crayfish as we need. I know you wanted 500
but I think I can give you 100. I thought we’d have
the waterdogs by now, at least that is what I was
told. We’re still waiting.

Earl: Dan, I’m beginning to wonder how much you value
my business. If you can’t take care of me any longer,
maybe I need to look for someone who can.

Dan: I’ve been under a lot of pressure lately to get more
done in the same amount of time. My new boss is
driving me nuts! I definitely want your business.

Dan needed to hurry off to meet with a new prospect. He
didn’t have time to preview some of the new spinner baits
his company was now carrying.

R O L E P L AY A C T I V I T Y
Characters: Dan, sales rep; Earl, service station owner

Action: Role play the meeting between Dan and Earl.
This time have Dan handle the situation (i.e.,
respond) as a sales rep that takes customer
complaints seriously and cares about providing
great customer service.

215CHAPTER 9: Expanding Customer Relationships

10 Adding Value: Self-leadership
and Teamwork

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“If I can give you one word of advice that could revolutionize your number
of sales wins, it would be the word data” says John Turner, senior vice
president of sales for TriNet, a leading service human resources solutions
provider. “TriNet is a data-driven culture—and the activities of my sales
team are driven by metrics. In fact, all our strategies and tactics are backed
by data. If you sat in a weekly meeting of any of our sales teams, in any
vertical industry in which we operate, you will likely hear the word data
come up several times.” Turner emphasizes that sales team members are
constantly asking, “What does the data show? What data do we have to
justify this action? According to the data, how did we do?”

After finishing this chapter, go to PAGE 238 for STUDY TOOLS.

The use and application of data should permeate the
sales process from beginning to end. Up front, it sharp-
ens your aim in targeting and prioritizing the right pros-
pects. “Data will tell you where to focus” and “how to do
so with the smallest investment of time and resources.”
Data are an important element for maximizing the effec-
tiveness of a sales call, as “a sales rep armed with data is a
sales rep who is confident and assured when approaching

a potential customer. This is a sales rep who can answer
a prospect’s questions with facts and hard numbers—not
speculation.”

Factual data should be the foundation of your
selling plan. Initially, it should inform the sales per-
formance goals to be targeted and once the plan is
implemented data should be the basis for periodi-
cally assessing the achievement of those sales goals.

LEARNING OBJECTIVES
After completing this chapter, you should be able to explain, identify and, describe:

10-1 The five sequential stages of self-leadership.

10-2 The four levels of sales goals and explain their
interrelationships.

10-3 Techniques for account classification.

10-4 The application of different territory routing techniques.

10-5 The usefulness of different types of selling technology and
automation.

10-6 Increasing customer value through teamwork.

10-7 The six skills for building internal relationships and
teams.

216

high-performance salespeople. As John Turner dis-
cussed in the introduction to this chapter, success-
ful salespeople are not simply born. Rather, they are
the result of purposeful and conscious self-leadership
based on using factual data which enables goal setting,
strategically developing selling plans to achieve those
goals, monitoring the resulting sales performance, and
continuously revising those plans based on the dynam-
ics of selling situations and interim results. Toward the
objective of developing successful salespeople, this
chapter builds on the process of self-leadership to
generate a framework for developing and enhancing
selling skills and abilities. First, setting effective selling
goals and objectives is discussed and integrated with
methods for territory analysis and account classifica-
tion. This is followed by a discussion of how the objec-
tives and information from the territory and account
analysis become inputs for generating and implement-
ing effective multilevel sales planning. The importance
of assessing performance results and level of goal at-
tainment is also reviewed. Wrapping up the chapter is
an examination of teamwork as a vehicle for expanding
the capabilities of an individual salesperson, increasing
customer value, and creating sustainable competitive
advantage for salespeople.

Turner stresses that selling plans should not be static—
“I review and update my sales plan daily. Thanks to
our CRM database, it includes information and feed-
back from the most entry-level sales rep, through our
frontline managers, and all the way up the sales pipeline
to me.” The sales plan is a tool that “lets you look into
future possibilities so you can plan your strategy for suc-
cess.” Turner advises that a good plan should include
sales performance indicators including past and current
sales performance, detailed customer and prospect in-
formation, retention information, patterns, and trends.
“A plan based on solid data lets you make adjustments to
your plan before you deliver on results. It changes you
from being reactive to being proactive. Of course – being
proactive is much more efficient – and has a higher rate
of success – than being reactive.”1

When observing the actions of a person who
has truly mastered the skills of his or her profession,
the person’s actions seem to come naturally. How-
ever, closer consideration will most often reveal that
these seemingly innate and natural abilities are ac-
tually the result of fervent and purposeful planning
combined with many hours of practice over a period
of years. This is true for world-class surgeons, sports
stars, leading educators, top attorneys—and yes, even

217CHAPTER 10: Adding Value: Self-leadership and Teamwork

10-1 EFFECTIVE
SELF!LEADERSHIP

How often have you said or thought to yourself, “I just
don’t have enough time to get everything done?” In reality,
most people do not need more time. Rather, they need
to prioritize the time they have. There are only so many
hours in a day, and highly effective salespeople know
that they can never have enough high-quality selling
time. To maximize their selling time, these high perform-

ers have developed
strong self-leadership
skills and treat time as
a valuable, irreplacea-
ble resource and invest
it wisely where it will
accomplish the most
good.

Self-leadership—a critical requirement for success
in any career—has been described as doing the right things
and doing them well. It is not simply the amount of effort
that determines an achievement, but rather how well that
effort is honed and aligned with one’s goals. In selling, this
is often restated as selling smarter rather than selling hard-
er. That is, before expending valuable time and resources,
salespeople must establish priorities in the form of objec-
tives. Then, and only then, do they implement the strategic
plan that has been specifically developed to achieve their
objectives in the light of the available resources and mar-
ket potential that exist within the territory. Self-leadership
translates to a process of first deciding what is to be ac-
complished and then placing into motion the proper plan
designed to achieve those objectives.

The process of self-leadership is composed of five
sequential stages. First, goals and objectives must be
set that properly reflect what is important and what is
to be accomplished. This is followed by an analysis of
the territory and classification of accounts. Next, with
goals in place and accounts classified, strategic plans
designed to achieve the objectives through proper al-
location of resources and effort are implemented. The
next stage maximizes the effectiveness of allocated re-
sources through the process of tapping technology and
automation to expand resource capabilities. Finally,
assessment activities are conducted to evaluate per-
formance and goal attainment and to assess possible
changes in plans and strategies. The nature of the
sequential interrelationships between these five stages
is illustrated in Figure 10.1.

10-1a Stage One: Setting Goals
and!Objectives
Establishing priorities by setting goals and objectives
is the key to effective self-leadership. This first stage of

Pe
te

r B
er

ni
k/

Sh
ut

te
rs

to
ck

.c
om

Like the skills of a professional athlete, the
skills required for selling are the result of
planning and many hours of practice.

self-leadership The process of
guiding oneself to do the right things
and do them well.

goals and objectives
Something a salesperson sets out
to!accomplish.

FIVE SEQUENTIAL STAGES OF SELF!LEADERSHIPFIG. 10.1

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Setting
Goals and
Objectives

Territory
Analysis

and Account
Classification

Development and
Implementation

of Strategies
and Plans

Tapping
Technology

and
Automation

Assessment
and

Evaluation

Self-leadership is a process of first deciding what is to be accomplished, and then setting into motion the proper plan to
achieve the desired objectives.

218

Selling in Action
Importance of Sales Call Planning
to Drive Selling Success
Jaime Anderson, Senior Vice-President of Marketing
at SAP, underscores the importance of thorough
planning and preparation prior to making
contact with prospects and buyers.

Buyers are becoming more and
more immune and even intolerant
of inefficient sales contacts and
activities. According to the What’s
the Future of Sales report by SAP,
business buyers now receive an
average of 64 to 107 approaches
by salespeople over the course of a
week.!As a result, buyers across the
globe are feeling hounded!by the sales
community and becoming less tolerant
and less trusting of salespeople who come
in too hard or without!sufficient information

and preparation. Aggressive salespeople (48 percent)
and salespeople who lack relevant knowledge
(46 percent) are the biggest frustrations with
salespeople. As a result, buyers block calls and

avoid initial sales!advances.
Anderson emphasizes that “B2B buyers

are time-challenged, they don’t want the
dog and pony show. They don’t want the

dance. They just want the salesperson
to be informed and to understand
where they are and what they
need at that point.” Today’s buyers
have less time and patience for
meandering or scripted and
inflexible sales processes. Instead,

they demand relevant and focused
sales interactions that can only occur

as the result of significant research,
planning, and preparation in advance of

any sales contact.

self-leadership has been appropriately ref erred to as “be-
ginning with the end in mind.”2 First of all, if a salesper-
son does not understand what is important, how does that
salesperson know what to focus on? Further, if a salesper-
son does not understand what he or she is setting out to ac-
complish, how could that salesperson know where to begin,
how to proceed, or even which plan is best for getting
there? Finally, without clear goals, how could salespeople
know when the objective has been achieved? Without clear
goals and obje ctives, it is very natural to drift from task to
task and typically focus on minor and less-productive tasks,
as they are the easiest to complete. The result of this natural
drift is poor sales performance and frustration. The posi-
tive impact of planning ahead and preparing for each sales
call is underscored by the experiences of Jaime Anderson,
Senior Vice-President at SAP, in “Selling in Action: Impor-
tance of Sales Call Planning to Drive Selling Success.”

10-1b What Makes a Good Goal?
Although goals and objectives might best be described
as desired outcomes, these two words carry specific
meaning. Desired implies that it is something worthy
of working toward and expending resources to reach.
Outcome connotes that it is a specific result or effect
resulting from certain activities or behaviors—some-
thing that can be described and pointed out. As illus-
trated in Exhibit 10.1, properly developed goals share
three key characteristics: (1) realistic, yet challenging,
(2) specific and quantifiable, and (3)!time specific.

! Realistic, Yet Challenging—Goals should be realistic
and!reachable. When set beyond what is possible,
goals cease to motivate and often become a disincen-
tive to performance. At the same time, goals should be
challenging. If goals are continually set at a level that

219CHAPTER 10: Adding Value: Self-leadership and Teamwork

is!too!easy to reach, performance tends to regress to
the!lower standard. Goals that are challenging tend
to be!more motivating than goals that are easily
achieved.

! Specific and Quantifiable—Without specificity, goals
become ambiguous and have no clear meaning. For
instance, the goal of having the top territory in the
district could be interpreted in many ways. Does top
territory translate to having the largest increase in sales,
the fewest number of customer defections, the highest
customer satisfaction scores, the smallest number of
price discounts, or possibly the largest reduction in
travel expenses? Without specificity, the goal becomes
a moving target, and it is difficult to know where to
apply one’s effort. In a similar fashion, goals should be
quantifiable—that is, they should be measurable. The
goal of increasing sales is certainly commendable, but
how might it be judged as having been accomplished?
Is a 1!percent increase sufficient or is 12!percent

more in line with
expectations? If a
12!percent increase
is the expecta-
tion, then the goal
should be a
12 percent increase
in sales—a quantifi-
able and measur-
able outcome that
can be objectively
measured and as-
sessed.

! Time Specific—
Stating a specific
time line is the third
requirement of goals
and objectives.

A goal of achieving a 12 percent increase in sales by
December 31 is much more appealing than simply
stating that one’s goal is to increase sales by 12 percent.
Associating time lines with goals establishes a deadline
for planning purposes and provides motivation by
instilling a sense of urgency for taking action.

10-2 WORKING WITH
DIFFERENT”LEVELS
AND”TYPES OF GOALS

For maximum effectiveness, salespeople establish goals
at four different levels: personal goals, territory goals,
account goals, and sales call goals. Although each level
requires different types of effort and produces different
outcomes, each of the levels is interrelated and interde-
pendent with the others. These interrelationships and
dependencies are illustrated in Exhibit 10.2. A sales-
person’s personal goals might include achieving a
$70,000 annual income during the current year ending
December!31. If the salesperson receives a commission
of 11 percent on sales, this personal goal is directly re-
lated to and dependent on achieving the territory goal
of selling $636,364 in products across the territory in the
same time period. Assuming 19 equally sized accounts
comprise the territory, the territory goal depends on
achieving the account goal of an average of $33,493
in products sold to each account over the course of the
year. Considering that each account is called on twice
every month, a sales call goal of $1,396 in sales per call
is required to achieve the account goal. As illustrated in

Exhibit 10.1

Required Characteristics of”Goals
and Objectives

E!ective Goals and Objectives Must Possess Three
Fundamental Characteristics

! Goals should be realistic, yet challenging

! Goals should be speci”c and quanti”able

! Goals should be time speci”c

personal goals A salesperson’s
individual desired accomplishments,
such as achieving a desired annual
income over a specific period of time.

territory goal A salesperson’s
desire of selling a certain amount of
product within an area or territory in
order to achieve personal goals.

account goal A salesperson’s desire
of selling a certain amount of product
to one customer or account in order to
achieve territory and personal goals.

sales call goal A salesperson’s
desire of selling a certain amount of
product per each sales call in order
to achieve account, territory, and
personal goals.

Exhibit 10.2

Four Interdependent Levels
of”Salesperson Objectives

Personal Goal—Desired Annual Income $ 70,000

Is Dependent on Annual Territory Sales
Goal (11% commission on sales)

$ 636,364

Is Dependent on Annual Account Sales
Goal (19 equally sized accounts)

$ 33,493

Is Dependent on Sales Call Goal
(each account is called on twice a month)

$ 1,396

220

this example, each higher-level goal ultimately depends
on the salesperson setting and achieving lower-level,
specific goals for each and every sales call.

Although illustrative of the interdependence be-
tween different levels of goals, the previous example is
admittedly simplistic in its exclusive use of goals based
on sales volume. In reality, there are many different
types of goals that a salesperson might effectively use.
Exhibit 10.3 illustrates examples of common sales goals.

10-2a Stage Two: Territory Analysis
and!Account Classification
Territory analysis and classification of accounts, the
second stage of self-leadership, is all about finding the

customers and prospects who are most likely to buy. Who
are they, and where are they located? What and why do
they buy? How much and how often do they purchase?
Who has the authority to buy, and who can influence the
purchase decision? What is the probability of selling to
this account? What is the potential share of account that
might be gained?

Many sources offer intelligence that will assist the
salesperson in answering these questions, and the in-
formation boom on the Internet makes accessing this
information easier than ever before. In addition to
numerous business directories available on the Web,
commercial business information suppliers such as
OneSource Information Services, Hoovers, Standard &
Poor’s, Dun and Bradstreet, and The Thomas Reg-

ister offer easy-to-use
databases that are fully
searchable by company,
industry, and geogra-
phic location. Sales-
people can also access
individual company Web
sites, trade directories,
professional associat
ion membership listings,
and commercial mailing
list providers. Personal
observation, discussions
with other selling pro-
fessionals, and com-
pany sales records are
also excellent sources for
gaining valuable infor-
mation.

Much of this infor-
mation can be plotted
to develop detailed ter-
ritory maps that will be-
gin to pinpoint pockets
of existing and potential
business. In addition, un-
derstanding the territory
at the individual account
level provides the input
required for account clas-
sification.

Exhibit 10.3

Common Types of Sales Goals
! Financial goals Income, “nancial security

! Career advancement goals Work in chosen “eld, advancement

! Personal development
goals

Education, training, relationships outside work

! Sales volume goals Dollar sales, unit sales, number of orders,
aggregates or by groups

! Sales call activity goals Calls made, calls/day, calls/account, presentations
made

! Sales expense goals Total expenses, by category, percent of sales

! Pro”tability goals Gross pro”ts, contribution margin, returns, and
discounts

! Market share Total share of potential market, peer group
comparisons

! Share of account Share of customer’s purchases

! Ancillary activity goals Required reports turned in, training conducted,
service calls made

! Customer retention goals Number of accounts lost, complaints received,
lost account ratios

! New account goals Number of new accounts

! Customer service goals Customer goodwill generation, level of
satisfaction, receivables collected

! Conversion goals Ratio of number of sales to number of calls made

territory analysis The
process of surveying an area to
determine customers and prospects
who are most likely to buy.

221CHAPTER 10: Adding Value: Self-leadership and Teamwork

10-3 ACCOUNT CLASSIFICATION
Account classification places existing customers and
prospects into categories based on their sales potential
and assists salespeople in prioritizing accounts for call
planning and time allocation purposes. During the pro-
cess of account classification, it is common for salespeo-
ple to find that 80 to 90 percent of their sales potential is
generated by 10 to 20 percent of the total accounts. Con-
sequently, the results of account classification can guide
salespeople in more efficient allocation of time, effort,

and resources while si-
multaneously enabling
them to be more effec –
tive in achieving sales
goals. Two commonly
used methods for clas-
sify ing accounts are
single-factor analysis
and portfolio analysis.

10-3a Single-Factor Analysis
Single-factor analysis, also referred to as ABC analy-
sis, is the simplest and most often used method for clas-
sifying accounts. As the name suggests, accounts are
analyzed on the basis of one single factor—typically the
level of sales potential. On the basis of sales potential,
the accounts are placed into three or four categories
denoted by letters of the alphabet, “A,” “B,” “C,” and
“D.” Accounts with the highest potential are traditionally
sorted into category “A,” whereas those with medium
potential go into “B,” and so on. All accounts in the same
category receive equal selling effort. For example, “A”
accounts may be called on every two weeks, “B” accounts
every four to six weeks, and “C” accounts might receive
a personal sales call once a year and be serviced by the
seller’s telemarketing team during the interim. Single-
factor classification schemas used by three different sales
organizations are summarized in Exhibit 10.4.

The simplicity of single-factor analysis is a prime con-
tributor to its popularity for use by field salespeople. It is

Exhibit 10.4

Different Single-Factor Account Analysis Schemas Used
by Different Companies

Class of
Account

Schema One:
InquisLogic Inc.

Schema Two:
Web Resource Associates, LLC

Schema Three:
Federal Metal Products

“A” Accounts Accounts with highest
potential (the 20% that do
or could account for 80%
of sales)
Annual number of calls 5 24

Accounts with highest
potential (the 20% that do or
could account for 80% of sales)
Annual number of calls 5 52

High volume current
customers (the 20% that
currently account for 80% of
sales volume)
Annual number of calls 5 48

“B” Accounts Medium potential accounts
(the 80% that account for 20%
of sales volume)
Annual number of calls 5 12

Accounts with moderate sales
potential, but who are regular
and reliable customers
Annual number of calls 5 24

Accounts with high potential,
but who are not current
customers
Annual number of calls 5 12

“C” Accounts Accounts with the least sales
potential
Annual number of calls 5 4

Lower sales potential accounts
Annual number of calls 5 8

Medium potential accounts
that are current customers
Annual number of calls 5 12

“D” Accounts None; this schema uses only
3!classes of accounts

Accounts that cost more in
time and energy than they
produce in sales or pro”ts
Annual number of calls 5 0

Accounts with medium
potential, but who are not
current customers
Annual number of calls 5 6

account classification The
process of placing existing customers
and prospects into categories based on
their potential as a customer.

single-factor analysis A
method for analyzing accounts that is
based on one single factor, typically
the level of sales potential.

222

straightforward and requires no statistical analysis or data
manipulation. Although this lack of complexity is appeal-
ing, its ability to use only one factor for analyzing and clas-
sifying accounts is also a significant limitation. Sales po-
tential is certainly an important input in allocating selling
effort, but other factors should also be considered. Possi-
ble other factors of interest are the selling company’s com-
petitive strength in each account, the account’s need for
additional attention and effort, profitability of the account,
and amount of competitive pressure on the account.

10-3b Portfolio Analysis
Also referred to as two-factor analysis, the portfolio
analysis method attempts to overcome the weak-
ness of single-factor analysis by allowing two fac-
tors to be considered simultaneously. Each account
is examined on the basis of the two specified factors
and sorted into the proper segment of a matrix. This

matrix is typically divided into four cells, and accounts
are placed into the proper classification cell on the
basis of their individual ratings (“high” and “low” or
“strong” and “weak”) on each factor of interest. Cell
location denotes the overall attractiveness of the dif-
ferent accounts and serves as a guide for the salesper-
son’s allocation of resources and effort. Typically, each
account in the same cell will receive the same amount
of selling effort.

Exhibit 10.5 details the account characteristics
and suggested selling effort allocations for a typical
portfolio analysis incorporating the factors of (1) ac-
count opportunity and (2) seller’s competitive position.3
Account opportunity takes into consideration the buyer’s
level of need for and
ability to purchase the
seller’s products, along
with financial stability
and growth prospects.

Exhibit 10.5

Portfolio/Two-Factor Account Analysis and Selling Strategies
Competitive Position

Strong Weak

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ig

Segment One
Level of Attractiveness:
Accounts are very attractive because they o#er high
opportunity, and the seller has a strong competitive
position.
Selling E!ort Strategy:
Accounts should receive a heavy investment of
e#ort and resources in order to take advantage
of high opportunity and maintain/improve
competitive position.
Exemplary Sales Call Strategy 5 36 calls/yr.

Segment Two
Level of Attractiveness:
Accounts are potentially attractive due to high
opportunity, but the seller currently has weak
competitive position.
Selling E!ort Strategy:
Where it is possible to strengthen seller’s com-
petitive position, a heavy investment of selling
e#ort should be applied.
Exemplary Sales Call Strategy 5 24 calls/yr.

Lo
w

Segment Three
Level of Attractiveness:
Accounts are moderately attractive due to seller
having a strong competitive position. However,
future opportunity is low.
Selling E!ort Strategy:
Accounts should receive a heavy moderate level of
selling e#ort that is su$cient to maintain current
competitive position.
Exemplary Sales Call Strategy 5 12 calls/yr.

Segment Four
Level of Attractiveness:
Accounts are minimally attractive. They o#er low
opportunity and the seller has weak competitive
position.
Selling E!ort Strategy:
Accounts should receive minimal personal
selling e#ort. Alternatives such as telemarketing,
direct mail, and the Internet should be explored.
Exemplary Sales Call Strategy 5 6 calls/yr.

portfolio analysis A!method
for analyzing accounts that allows
two factors to be considered
simultaneously.

223CHAPTER 10: Adding Value: Self-leadership and Teamwork

Competitive position denotes the relationship between
the account and the seller and includes variables such as
seller’s share of account, competitive pressure, and key
decision maker’s attitude toward the seller. Accounts
sorted into Segment One are high on opportunity, ex-
hibit strong competitive positions, and should receive
the highest level of selling effort. Accounts falling into
Segment Two are high on opportunity but weak on com-
petitive position. These accounts should receive a high
level of attention to strengthen the seller’s competitive
position. Segment Three contains the 80 to 90 percent
of accounts doing 10 to 20 percent of the seller’s volume.
These accounts are loyal and regular customers (high on
competitive position) but offer weak opportunity.

Strategically, these accounts should receive a lower
investment of selling effort designed to maintain the sell-
er’s current competitive position. Accounts sorted into
Segment Four are considered unattractive and allocated
minimal selling effort as they are characterized by low op-
portunity and weak competitive position. Within the past
several years, many sellers have been successful in servic-
ing Segment Three and Four accounts outside the personal
selling channel by using alternatives such as telemarketing,
direct mail, the Internet, and proprietary extranets.

Portfolio analysis offers the advantages of enhanced
flexibility and ability to incorporate multiple variables for
analyzing and sorting accounts. Reflecting these strong
points, the use of portfolio analysis is gaining in popularity.

10-3c Stage Three: Development
and Implementation of Strategies
and Plans
Stage One provides the salesperson with the guidelines
of what is important and the goals to be accomplished
at the levels of individual sales calls, accounts, and
the overall territory. Stage Two identifies and estab-

lishes the priority and
potential of each ac-
count in the territory
along with the relative

location of each account. Top salespeople do not stop
there! They use this information to develop strate-
gies and plans that will guide them toward achieving
their goals by applying their available resources in a
deliberate and organized fashion that effectively cul-
tivates and harvests the potential sales available in the
territory.

10-3d Establishing and Implementing
Selling!Task and Activity Plans
When properly executed, sales planning results in
a schedule of activities that can be used as a map for
achieving objectives. First, start with the big picture—
a long-term plan spanning the next 6 to 12 months.
This big picture highlights commitments and dead-
lines and facilitates setting up the activities required
to meet those commitments and deadlines. In turn,
the longer-range plans provide the basis for shorter
time frame plans and selling activities. The sales-
person planning program at Federal Metal Products
(FMP) offers a good overview and prototype of effec-
tive salesperson planning.

FMP, a middle market supplier of metal pro-
duction components, trains its salespeople to
prepare and submit annual territory plans and
budgets by November 15 each year. With that
recurring deadline marked on their schedules,
FMP salespeople work backward on their cal-
endars to establish key checkpoints for their
planning activities. This establishes a time line
to guide and assist salespeople in making the
submission deadline.

If salespeople project that it will take four
weeks to assemble and draft their territory
sales plan, they work back four weeks from the
November 15 date and establish October 15
as the date to begin assembling their data and
building their plans. How long will it take to
collect the needed data properly? Six weeks?
If so, their schedule should re!ect beginning
that activity by September 1.

Sales plans should take into consideration sched-
uled meetings and training sessions, holidays,
trade shows, and vacation time. Plans should
also contain periodic checkpoints for assessing
progress toward goals. A salesperson’s objective
of $750,000 in sales for the year equates to a
goal averaging $62,500 in sales every month.
Accordingly, the long-term master plan should

It is common for salespeople
to find 80 to 90 percent
of their sales potential

generated by 10 to
20!percent of their accounts.

sales planning The process of
scheduling activities that can be used
as a map for achieving objectives.

224

include monthly checkpoints to compare the
schedule versus actual performance data. Is
performance on course, ahead, or lagging be-
hind? If not on schedule, the corresponding and
more detailed weekly plans should be revised to
re!ect salespeople’s strategies for getting back
on course.

Salespeople at FMP develop weekly plans from
their longer-term annual plan. These shorter-
term plans detail the selling-related activities to
be accomplished that week. To create a weekly
plan, “rst identify the priorities that must be ac-
complished to stay on schedule. Then, for each
of these priorities, detail the associated activi-
ties and schedule the time that it will take for
completion. What areas of the territory will be
focused on? What# accounts will be called on,
and what is the objective for each call? What
are the best times to call for appointments? Are
there account preferences as to what days and
times they work with salespeople? How much
time must be allowed for travel, waiting, and
working with each account? What products
will be featured? What information and mate-
rials will be needed?

In turn, the priorities and activities identi”ed in
the weekly plan should become the points of focus
for the daily plan. Days that end on a successful
note begin with a thorough and written schedule
detailing tasks and priorities for that day and the
activities that must be carried out to achieve them.

The optimum schedule emphasizes tasks and activi-
ties that will make the greatest sales impact—working

with customers. As illustrated by the FMP’s “Daily Sales
Plan Worksheet” in Exhibit 10.6, daily plans should detail
the amount of time projected for each scheduled task
and activity. To maximize the effectiveness of sales plans,
general consensus indicates salespeople should adhere
to two guiding principles.

! Do them, and do them in writing. Written plans are
better developed and provide more motivation and
commitment for salespeople to carry them through
to completion. Furthermore, written plans help ensure
that priority items do not fall through the cracks
because something was forgotten.

! Keep it current and flexible. Make a new daily plan
every day. Try as we might, things do not always go
as planned. Consequently, changes might be needed,
and uncompleted priorities or activities from one day
may have to be carried over to the next.

10-4 ESTABLISHING TERRITORY
ROUTING PLANS

Territory routing plans incorporate information devel-
oped in the territory analysis and account classification
stage to minimize the encroachment of unproductive
travel time on time that could be better spent working
with customers. Good routing plans minimize the back-
tracking and crisscrossing that would otherwise occur
and allow the salesperson to use time more efficiently.

Knowing how many calls can be made each day, the
required call frequency for each account classification,
and the relative geographic location of and distance be-
tween accounts, a salesperson can plot different routing
strategies and decide the optimal plan. Many sales pro-
fessionals continue to use the traditional colored map
pins and felt-tip markers on a wall map. However, a va-
riety of easy-to-use and affordable computer and mo-
bile device applications that plot optimal routing plans
are available and are growing in popularity. Optimized
routing plans correspond to one of five common pat-
terns: straight line, cloverleaf, circular, leapfrog, and
major city.

10-4a Straight-Line Routing Plans
With a straight-line
routing plan, sales-
people start from their
offices and make calls
in one direction un-
til they reach the end

An effective plan works like a map showing
the way from where you are to where you
want to go—your objective.

straight-line routing plan
A territory routing plan in which
salespeople start from their offices
and make calls in one direction until
they reach the end of!the territory.

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225CHAPTER 10: Adding Value: Self-leadership and Teamwork

of the territory. As illustrated in Figure 10.2, at that
point they change direction and continue to make
calls on a straight line following the new vector. This
continues until the salesperson returns to the of-

fice location. The
straight-line pattern
works best when ac-
counts are located
in clusters that are
some distance from
one another.

10-4b Cloverleaf Routing Plans
The cloverleaf routing plan pattern is best used
when accounts are concentrated in different parts of
the territory. On each trip, the salesperson works a dif-
ferent part of the territory and travels in a circular loop
back to the starting point. An example of the clover-
leaf routing plan is depicted in Figure 10.3. Each loop
could take a day, a week, or longer to complete. A new
loop is covered on each trip until the entire territory
has been covered.

Exhibit 10.6

Example of a Typical Daily Sales Plan Worksheet
Federal Metal Products
Daily Sales Plan Worksheet
Salesperson: Earnie Cravits Day: Friday Date: 8/29

Time
Task or
Priority Activity

People
Involved

Time
Needed

Goal/
Anticipated
Results

Notes &
Comments

8:30 AM Set appointments Phone calls Jill Attaway
Digital Systems

10 min Appointment
for next week

Requested that
I come by

“ “ Bart Waits
EnterpriseOne

10 min “

“ “ Kerri Williams
Flo-Forms

10 min “ Will be placing
order in 3 weeks

9:00 AM “ “ Marilyn Henry
InQuisLogic

10 min Clarify service
problem

Send info to
engineering

10:30 AM Demonstrate
new bearing line

Sales call Mike Humphreys
ICOM

60 min Info gathering Currently
buying from
Gem Rollers

12 PM Get order
commitment

Sales call—
Lunch

Jack Kessler
MDQG

120 min $12,000 order Gem submitted
proposal 8/20

3:00 PM Take sample of
proposed line

Sales call Aimee Williams
MOCO, Inc.

60 min $15,200 order Ready to buy,
wants to see
prdct. sample

4:30 PM Check on delivery Service call Ron Meier
Web Resources

50 min Delight the
customer

First time to buy
from us!!

6:00 PM Complete
paperwork

Submit call
reports

45 min

7:00 PM Prepare daily
schedule

Planning 45 min

cloverleaf routing plan
A territory routing plan in which
the salesperson works a different
part of!the territory and travels
in a circular loop back to the
starting!point.

226

Straight-line territory routes make calls across the territory, proceed in one direction, and then change direction to work back
to the starting point.

STRAIGHT!LINE ROUTE PATTERNFIG. 10.2

San Antonio

Austin

Hillsboro
Corsicana

Centerville

Madisonville

Huntsville

Conroe

Waco

Killeen

Round Rock

San Marcos Katy

Houston

DallasFort Worth

Abilene

Cloverleaf territory routes work di!erent parts of the territory in a series of circular loops.

CLOVERLEAF ROUTE PATTERNFIG. 10.3

Bloomington

Decatur

Peoria

Kankakee

72
55

5580

180

155

Pontiac

Chenoa

Minonk
Washington

Pekin Morton

Lincoln Clinton

LeRoy

Gibson
City

Paxton

Rantoul

Champaign/
Urbana

Hudson

227CHAPTER 10: Adding Value: Self-leadership and Teamwork

Circular territory routes cover the territory in a series of concentric circles spiraling across the territory.

10-4c Circular Routing Plans
Circular routing plans begin at the office and move
in an expanding pattern of concentric circles that spirals
across the territory. Figure!10.4 traces an exemplary circu-

lar routing plan working
from an office in Dallas.
This method works best
when accounts are even-
ly dispersed throughout
the territory.

10-4d Leapfrog
Routing Plans
The leapfrog routing
plan is best applied
when the territory is large
and accounts are clus-
tered into several widely
dispersed groups. Begin-
ning in one cluster, the

CIRCULAR ROUTE PATTERNFIG. 10.4

Dallas

Oklahoma City

Fort
Smith

Shreveport

45
49

Abilene
Fort Worth

Lawton

Sulphur

Ardmore
Antlers

Texarkana

Sherman

Paris

Commerce

Terrell
DeSoto

Tyler
Corsicana

Waco

Stephenville

Ranger

Graham

Gainesville
Denton

PlanoLewisville

Killeen

Lampasas

Brownwood

Olney

Wichita
Falls

salesperson works each of the accounts at that location and
then jumps to the next cluster. As shown in Figure!10.5,
this continues until the last cluster has been worked and
the salesperson jumps back to the office or home. When
the distance between clusters is great, the salesperson will
typically make the jumps by flying.

10-4e Major City Routing Plans
When the territory is composed of a major metropolitan
area, the territory is split into a series of geometric
shapes reflecting each one’s concentration and pat-
tern of accounts. Figure 10.6 depicts a typical
major city routing plan. Downtown areas are typi-
cally highly concentrated with locations controlled by a
grid of city blocks and streets. Consequently, the down-
town segment is typically a small square or rectangular
area allowing accounts to be worked in a straight-line
fashion street by street. Outlying areas are placed in
evenly balanced triangles or pie-shaped quadrants, with
one quadrant being covered at a time in either a straight-
line or cloverleaf pattern.

circular routing plan
A territory routing plan in which the
salesperson begins at the office and moves
in an expanding pattern of concentric
circles that spiral across the territory.

leapfrog routing plan
A territory routing plan in which,
beginning in one cluster, the salesperson
works each of the accounts at that location
and then jumps to the next cluster.

major city routing plan
A territory routing plan used when
the territory is composed of a major
metropolitan area and the territory is
split into a series of geometric shapes
reflecting each one’s concentration and
pattern of accounts.

228

Leapfrog territory routes work accounts clustered in one location and then jump to a di!erent cluster of accounts.

10-5 STAGE FOUR: TAPPING
TECHNOLOGY AND
AUTOMATION

Selling technology and automation tools are
here to stay and are being transformed from neat toys
to necessary tools. Properly applied, selling technology
spurs and creates creativity and innovation, stream-
lines all aspects of the selling process, generates new
and improved selling opportunities, facilitates cross-
functional teaming and intraorganizational commu-
nication, and enhances multichannel communication
and follow-up with customers. In summary, tapping
the proper selling technologies and salesforce automa-
tion tools enable salespeople to expand their available
resources for enhanced selling performance and out-
comes. Kristin Halverson, Customer Development
Associate for Kimberly Clark discusses the importance

of using data analysis and visualization technologies in
order to leverage the multiple sources of big data to
better understand the customer and competitive land-
scape in “Technology in Selling: Using Data Analytics
to Drive Business.”

Salespeople, sales managers, and customers are
unanimous in their agreement that the best salespeople
are those who stay up with changes in and develop-
ments of technologies with selling applications. With a
multitude of rapidly changing and evolving technology
choices, salespeople must not only master the tech-
nology itself, but they
must also understand
when and where it can
be applied most effec-
tively. Exemplary sell-
ing technologies being
used by today’s sales-
people include the fol-
lowing types of tools.

LEAPFROG ROUTE PATTERNFIG. 10.5

St. Paul

Spr

Des Moines

Topeka

Oklahoma City
Little Rock

Atlanta

Nashville

selling technology and
automation Tools that streamline
the selling process, generate improved
selling opportunities, facilitate
cross-functional teaming and
intraorganizational communication,
and enhance communication
and!follow-up with customers.

229CHAPTER 10: Adding Value: Self-leadership and Teamwork

10-5a Mobile Sales Technologies
At the center of virtually every selling technology is
some form of mobile computing technology. Choic-
es include desktops, notebooks, laptops, tablets, and
smartphones. With the ever-expanding availability of
broadband and wireless connectivity, today’s sales-
person is always in touch with customers, with sales
support, and with sales data and information. For im-
mediate immersion into the high-tech side of selling,
simply walk through the waiting areas of any major
airport. Salespeople can be seen entering customer
orders, generating reports, and submitting propos-
als by using standard word-processing packages and
even customized online electronic forms. Others are
analyzing customer accounts by using spreadsheet ap-
plications and query-based Business Intelligence pro-
grams that access and analyze a database according to
the questions the user wishes to have answered. Sev-
eral will be observed reviewing and updating customer
files by using one of the many mobile and highly capa-
ble contact management/CRM software applications.

These user-friendly programs provide salespeople
with a convenient option to catalog, search, and ac-
cess comprehensive information regarding individual
customers. Looking closer, numerous salespeople will
be revising and polishing graphics and presentations
with software such as PowerPoint, Tableau, Keynote,
Prezi, Flash, and Open Office Impress. Still others
will be checking and responding to e-mail, submitting
electronic reports, accessing online territory route
maps, and using scheduling programs to set up the
next day’s call plans.

10-5b Salesperson Customer
Relationship Management (CRM)
Effective customer relationships generate customer
loyalty and the revenue increases critical for sustained
performance. Toward meeting this challenge, compa-
nies of all sizes are deploying customer relationship
management (CRM) applications and strategies that
integrate multiple communication and customer con-
tact channels—including the Web, e-mail, call center,

Major city territory routing patterns work downtown on a basis of street grids and work outlying areas using a cloverleaf
or straight-line pattern.

MAJOR CITY ROUTE PATTERNFIG. 10.6

Dallas

35E

635

35E

Netherland

White Rock

Mesquite

Hutchins

Lancaster
DeSotoCedar Hill

Duncanville

Oak
Grand
Prairie

Arlington

University
Park

Farmers
Branch

Grapevine

Bedford Euless Irving

Addison

230

and social media applications in order to maximize
customer interactions. However, detailed customer in-
formation is of little use if salespeople cannot access
it when they need it—such as during a sales call in a
customer’s office. Sales professionals often work out-
side the office and need up-to-date information while
in the field. Being able to access and offer the right
information to customers at the right point in the sales
cycle enables salespeople to increase sales dramatically
while simultaneously increasing customer satisfaction
and loyalty. Mobile salesperson CRM solutions,
such as Salesforce.com, Microsoft Dynamics, SAP, and
SalesLogix, are the key to accessing this information
from the field and provide remote access to data such

as contacts, customer information, leads, reports, price
lists, inventory levels, and opportunity forecasting.
Mobile CRM applications utilize wireless broadband
access to enable users instantly to view, create, and
modify data on any Internet-capable device such as
smartphones, tablets and pads, netbooks, and laptops.
This handheld access to valuable account information
allows a salesperson to
tap into the same sales,
marketing, and cus-
tomer service data they
have access to in the
office—without having
to leave the field. Mobile

Technology in Selling
Using Data Analytics to Drive Business
Kirsten Halverson graduated from Illinois State
University in May 2016 and is a Customer Development
Associate for Kimberly Clark. Based in Boston, Kirsten’s
key areas of involvement are in category analytics and
customer relationship management within the adult
and feminine care brands. Kirsten talks about how what
she learned in her sales classes provided her a head
start in earning customer trust and building customer
relationships.

“As Customer Development Associate, I focus on
building business with our existing accounts through
securing new and additional distribution for product
innovations and extensions, developing and tracking
yearly account-based promotional plans, and working
with shopper loyalty and consumption data. The heart
of our trust-based selling model is a focus on data
analytics to better understand the customer landscape
and provide valuable insight for our customers in terms
of shopper trends and sales opportunities anchored
with solid ROI outcomes for the customer.”

“Working with customers, our data analytics are
primarily based on Excel spreadsheets and Tableau

visualization charts and dashboards. These programs
are mobile and tablet-based, which facilitates using
them in field-based customer presentations. They
are also easy to use and allow combining data
from multiple sources—such as internal account
performance data as well as commercial data vendors
such as Neilson and RSI providing sales trends, shopper
loyalty information, and consumption reports. It is
all about utilizing data to point out shopper needs
and opportunities and clearly linking them to our
innovative product solutions to enable our customers
to grow their businesses and revenues.”

“Our number one goal is to become the thought-
leader and indispensable partner for our customers.
We achieve that through the use of data analytics to
discover and illustrate areas of opportunity that result
in win–win outcomes. My sales classes emphasized the
consultative selling approach and how to utilize actual
data in the sales call to build trust by bringing new
ideas and illustrating opportunities for the customer to
grow their revenues. Those learning experiences were
well aligned with the sales model here at Kimberly
Clark and equipped me to move up the learning curve
faster.”

mobile salesperson CRM
solutions Wireless broadband
applications that enable users to
view, create, and modify data on
any Internet-capable device such as
smartphones, netbooks, and laptops.

231CHAPTER 10: Adding Value: Self-leadership and Teamwork

CRM is rapidly becoming a critical requirement for
effectively competing in today’s fast-paced selling
environment and increasing customer expectations in
terms of customized levels of service.

10-5c Deal Analytics
Deal analytics is the descriptive name given to a new
set of “smart” tools in the area of salesforce automation
that are proving especially useful for salespeople. These
predictive analytical tools utilize mobile CRM systems to
access and analyze data on past customer behavior, cross
selling opportunities, and demographics to identify areas
of opportunity and high interest to a customer. Salespeople
also utilize deal analytics tools to access and compare
competitive information such as pricing and bundled
offers, which can result in more effective proposals and
negotiations.

10-5d The Internet, Intranets,
and Extranets
Accessing the Internet instantly networks a salesperson
with the world: customers, information sources, other
salespeople, sales management, and others. More im-
portantly, the Internet puts the salesperson in contact
with his or her customer community and support net-
works from anywhere in the world, 24! hours a day,
seven days a week. Going beyond the convenience of
e-mail, many sales organizations are setting up intranets
and extranets—secure and proprietary organizational
Web sites that are protected by passwords and security
authorizations. Intranets are networks within the orga-
nization using the Internet or commercial channels to
provide direct linkages between company units and
individuals. Extranets are a special form of intranet
that is still for proprietary and restricted use but links
to specific suppliers and customers to allow them

controlled and secure
access to the organiza-
tion’s network to fa-
cilitate communication
and exchange.

These secure Web
sites become instant or-
ganizational intranets
used for communica-
tion, training, video-
conferencing, web-
conferencing, and secure
data interchange. Using

such Web-enabled intranets, Diamond Equipment Cor-
poration’s salespeople can link to the latest product in-
formation and spec sheets, obtain updated inventory
and production numbers, download company informa-
tion, and print customized proposals for customer pre-
sentations from anywhere in the world. CDW provides
each of its major accounts with a customized extranet
that provides the customer with access to CDW on a
24-hour, seven-days-a-week basis. Buyers can track or-
ders online, download product and technical specifica-
tions, access customer support technicians, check prices
and availability of products, and even place orders for
next-day delivery throughout the United States. Rather
than spending time traveling to customers’ offices, Windy
City Wire’s salespeople deliver their sales presentations
by combining teleconferences and Web presentations
using WebEx. The use of Internet- and intranet-based
technologies shorten the sales cycle by allowing sales
meetings and presentations to be created and delivered
in less time than traditional face-to-face processes would
take. If a salesperson can save just 10 minutes a day
by using Web-based presentation libraries and online
product and pricing information, he or she will gain an
additional week’s worth of productivity over the course
of a year. However, as illustrated by the situation
described in “An Ethical Dilemma,” the adoption and
roll-out of advanced technologies often presents some
challenges along the way.

10-5e High-Tech Sales
Support Offices
Organizations having salesforces widely dispersed geo-
graphically or traveling across multiple regions of the
nation or world have found it advantageous to establish
high-tech sales support offices at multiple loca-
tions. Both resident and nonresident salespeople use
these offices to access a wider range of selling techno-
logy than could be easily carried on a notebook or laptop
computer. These offices also provide points of access
to the various networks, intranets, and extranets the
organization maintains. IBM maintains high-tech offices
such as these at its installations around the world. An
IBM representative in Dallas might find himself work-
ing as part of a team on a project in Chicago. While
in Chicago, the representative has access to the same
technology and support as was available in Dallas. Full
access is available to company networks, customer
accounts, communication links, and software applica-
tions. Consequently, convenience and productive time
are maximized for the benefit of all parties.

deal analytics “Smart” salesforce
automation tools that analyze data on
past customer behavior, cross-selling
opportunities, and demographics to
identify areas of opportunity and high
customer interest.

high-tech sales support
offices Offices set up at multiple
locations where salespeople can access
the wider range of selling technology
than could be easily carried on a
notebook or laptop computer.

232

10-5f Stage Five: Assessment of
Performance!and Goal Attainment
A critical, and often overlooked, stage in the process
of self-leadership is the periodic assessment of prog-
ress. Although certainly important, this stage should
involve more than a simple check at the end of the
period to determine whether goals were achieved.
Assessment checkpoints should be built into plans
at progressive points in time to encourage and facili-
tate the evaluation of one’s progress. These frequent
comparisons of actual performance with periodic
checkpoints allow time to consider revisions or mod-
ifications before it is too late to make a difference.
In addition to assessing progress, evaluation should
also consider what is working well and what could be
improved. This knowledge and understanding can
be used to guide modifications in the various plans,
tasks, and activities that populate the different stages
of self-leadership to further enhance future success
and performance.

10-6 INCREASING CUSTOMER
VALUE THROUGH
TEAMWORK

Excellent customer service is taking on a key role in com-
petitive business strategy, and as customer expectations
and needs continue to grow in complexity, selling orga-
nizations find that they can no longer depend solely on
salespeople as the exclusive arbiter of customer satisfac-
tion. Teamwork, both inside the organization and with
customers, is being emphasized as the key to customer
focus and sales performance.

10-6a Internal Partnerships
and Teams
The practices and experiences of top-ranked selling
organizations, as well as considerable sales research,

Teresa is an account manager for Enterprise Solutions and
is responsible for selling the company’s hardware- and
application-based technology solutions throughout the
Dallas-Ft Worth metroplex. Embracing the collaborative
selling approach, Enterprise utilizes an extensive and
highly interactive Internet-based extranet system to stay
close to its customers and ahead of the competition.
Enterprise’s extranet system allows customers to access
product, service, and account information 24/7. Because
the extranet allows customers to access proprietary infor-
mation including order status, product availability, pricing,
and even order entry and transactions, access is controlled
through a secure password authentication process. Access
is granted only to well-established, major customers.

Teresa has just learned that one of the technology
buyers at Advanced Energy Partners, one of Teresa’s key
accounts, has shared their extranet access codes with

the salesperson for Enterprise’s main competitor.
Apparently the competitor wanted access to Enterprise’s
pricing structure so they could undercut the prices
and acquire some of Enterprise’s major customers.

What should Teresa do?
(A) Inform her sales manager so that Enterprise can

change their pricing as a result of the breach in
security.

(B) Deactivate Advance Energy Partner’s codes for
accessing Enterprise’s extranet so the competitor
can no longer access the information.

(C) Provide Advance Energy Partner’s purchasing
department with new access codes, remind
them that the codes are proprietary and use the
breach of trust as an opportunity to enhance the
Enterprise–Advance Energy Partner relationship.

An Ethical Dilemma

233CHAPTER 10: Adding Value: Self-leadership and Teamwork

support the emphasis on team-
work as a key to long-term selling
success. The results from three
studies of more than 200 com-
panies that employ some 25,000
salespeople supported the belief
that cooperating as a team player
was critical for success in selling.4
Similar results have been found in other studies that ex-
amine what business-to-business buyers expect from sup-
pliers. In two studies incorporating 6,708 customer eval-
uations of vendor performance and customer satisfaction
in the financial services industry, the suppliers’ perfor-
mance in building internal and external partnerships was
found to be the key driver of customer satisfaction.5

Building external relationships is the focal
point of contemporary selling techniques and reflects
the ongoing paradigm shift in today’s salesforces. This
emphasis on building external customer relation-
ships could overshadow the critical role of building
internal, close-working relationships with other indi-
viduals in their own company. The importance of these
internal relationships would seem to be logical, as a
salesperson’s success depends on the degree of support

he or she receives from
others in the various
functional areas of the
organization. Ultimate-
ly, the salesperson owns
the responsibility for
customer relationships,
but the strength of those
customer relationships

depends on the joint efforts and resources contributed
by multiple individuals across the selling organization.

Account managers at Contour Plastics Corporation
have full responsibility for bringing together individu-
als from functional departments across the organization
to work as a sales team dedicated to selling and provid-
ing pre- and post-sale services to a specific account. As
needed, team members will incorporate research chem-
ists, application specialists, production engineers, and lo-
gistics specialists. Coordinated by the salesperson, each
team member contributes his or her special expertise
toward maximizing the understanding of the customer’s
situation and needs, and then working together to create
a unique, value-added solution that few, if any, competi-
tors can equal.

Teamwork results in a synergy that produces greater
outcomes and results for all parties than would be pos-
sible with multiple individuals acting independently of

one another. Consequently, it is
important that salespeople also
develop the ability to sell in-
ternally as they represent their
customers to the selling organi-
zation and give recognition to
the important role others play
in winning, keeping, and grow-
ing customer accounts.

James Champy, chairman of consulting for Perot
Systems, notes that customers are expecting and receiv-
ing better service and product options than ever and
characterizes the role of the salesperson as having been
transformed to that of a trusted advisor.6

In this advisor role, the salesperson works with
customers to develop a mutual understanding of the
customer’s situation, needs, possibilities, and expec-
tations. On the basis of this information, the sales-
person assembles a team of individuals, experts from
across the selling organization, who work together
creating a product response that will deliver more
unique customer value than the competitors’ offer-
ings. In delivering this unique and added value for
customers, salespeople often find themselves working
with other individuals in sales, marketing, design and
manufacturing, administrative support, shipping, and
customer service.

10-6b Sales Partnerships
Within the sales department, salespeople often join
other salespeople to gain the strengths and expertise re-
quired for a specific selling situation or customer. Part-
nerships with sales managers and other sales executives

Salesperson effectiveness in
building internal and external
partnerships is a key driver of

customer satisfaction.

Periodic performance assessments should
be built into plans so as to encourage
evaluation of progress and identify areas of
improvement.

external relationships
Relationships salespeople build with
customers outside the organization
and working environment.

internal relationships
Relationships salespeople have
with other individuals in their
own!company.

al
ex

sk
op

je
/S

hu
tt

er
st

oc
k.

co
m

234

are also important in winning support for developing
innovative responses to customer needs. XL Capital is a
global leader in alternative risk transfer products, finan-
cial risk management, and surplus lines of commercial
property and casualty insurance. Selling to Fortune 500
and Fortune 1000 customers, XL Capital’s salespeople
(customer business unit managers) specialize along
customer and industry lines. It is common for XL’s sales-
people to work in teams to bring together the experience
and expertise required to work with customers whose
businesses span a large number of different industries.

10-6c Marketing Partnerships
Teaming with individuals in the marketing department
is critical for salespeople in generating integrated solu-
tions for customers over the long term. Marketing is
responsible for developing organizational marketing
strategies that serve as guidelines for the salesforce. Us-
ing information gathered in the field by the salesforce,
marketing also assists in the generation of new market
offerings in response to changing customer needs and
requests. Marketing can also be a valuable partner for
salespeople in accessing information and developing
sales proposals.

At Pocahontas Foods, a top-10 institutional food
broker with nationwide operations, account managers
regularly work with members of the marketing depart-
ment to communicate changes in customer needs and
activities of competitors. This collaborative partner-
ship allows Pocahontas to continue bringing innovative
product offerings to the marketplace that are designed
around the inputs from their salespeople.

10-6d Design and Manufacturing
Partnerships
Salespeople often find themselves selling ideas for
product designs and changes in manufacturing sched-
ules to meet the needs of customers. When individu-
als from design, manufacturing, and sales work as a
team, performance and delivery commitments are
more likely to be met and customer satisfaction fur-
ther enhanced. RR! Donnelly works to maintain its
industry leadership in business forms and systems by
aggressively nurturing a company-wide culture em-
phasizing customer orientation and support. As part
of their training, salespeople actually work in produc-
tion facilities to understand what has to be done to
meet product design and delivery requirements that
the salespeople might commit to in the field. By-
products of this cross-training come about in the form

of one-to-one personal relationships between sales-
people and production staff. In the case of complex
customer needs or special delivery needs, these rela-
tionships become invaluable.

10-6e Administrative Support
Partnerships
Salespeople work with others from administrative sup-
port functions such as management, finance and cred-
it, billing, and information systems. Like sales, each
of these functional units has certain goals and objec-
tives!that translate to policies and procedures that gov-
ern their own activities and affect operations throughout
the organization—including sales. Customer needs are
served best when salespeople have worked to establish
effective relationships within these units and all parties
work together for the mutual good of the organization
and customer. Jim Gavic, account manager for Great
Lakes Trucking, manages a territory stretching from the
industrial sector of south Chicago east to Gary, Indiana,
and south to Indianapolis. Gavic credits his close rela-
tionships with individuals in the company’s finance and
credit department for making 20 percent of his annual
sales. By working together, they were able to establish
special billing terms for several of his larger accounts.
If finance and credit had simply enforced Great Lake’s
standard terms, these customers would have been lost
to a competitor with more flexible credit policies.

10-6f Shipping and Transportation
Partnerships
Salespeople periodically find themselves facing an urgent
customer need that requires special handling of an order.
Perhaps it is an expedited shipment for immediate deliv-
ery or the processing and shipping of an interim order of
less-than-economical size. Whatever the need, it will af-
fect other shipments getting out on time and could even
increase the department’s operating costs. Curtis James,
territory manager for General Electric Appliances, found
sales going better than usual at a new store opening in
Oklahoma City. To keep the customer from being caught
short, he hand-carried a fill-in order to the GE district
office, walked it through credit approval, hand-delivered
the shipping order to the warehouse, and helped load the
truck. Teamwork enabled Curtis to accomplish in less
than a day what normally would have taken 8 to 10 days.
It takes a team effort to work through exceptions such
as these, and it is common to find the salesperson actu-
ally helping to make it happen by pulling orders, packing
boxes, and even helping to load the truck.

235CHAPTER 10: Adding Value: Self-leadership and Teamwork

10-6g Customer Service Partnerships
Teamwork between sales and customer service can cre-
ate a synergy that has a broad-based impact that can
translate to higher customer satisfaction, higher rates of
customer retention, and increased sales performance.
On the one hand, customer service personnel, such
as call center operators and service technicians, often
have more extensive contact with customers than the
account representatives. As such, they can serve as an

early warning system for salespeople and provide valu-
able information regarding customer complaints, prob-
lems, developing needs, and changes that they encounter
through customer contacts. As a salesperson for South-
western School Supply, Cap Williams regularly checks in
and visits with the company’s customer service personnel
to keep abreast of contact that they might have with any
of his customers. The information he receives allows him
to get ahead of any possible customer problems, provide
an uncanny level of after-sale support that continues to

Brian, a 2016 Illinois State University graduate, is a Sales
Planning Analyst for a Fortune 500 company. In this po-
sition, Brian’s primary responsibility is data acquisition,
analysis, and dissemination along with sales strategy
development in support of the company’s national field
salesforce specializing in the healthcare sector. Brian
explains how what he learned in his sales classes has
helped him visualize and develop information and tools
that assist the field salespeople in targeting prospects
and delivering impactful sales presentations.

In my role as Sales Analyst, I bring together data from
multiple data sources—internal and external to the
company—and analyze the data in a way that provides
meaningful information to our sales managers and field
salespeople. This information includes the regular Monthly
Performance Tracker reports, demand planning and sales fore-
casting models for special projects, and even specific tools for
the salesperson to lever the data in such a way that provides
insight into the marketplace and enhanced understanding of
specific prospect and customer situations.

Our sales classes consistently stressed the superior-
ity of the consultative selling approach which requires the
salesperson to fully understand and diagnose the buyer’s
situation in order to provide specific product solutions which
deliver added value to the buyer—to be a problem solver.
My role is to provide each salesperson with the relevant
data and information they need in an easy-to-use form. This

guides them in targeting better prospects and equips them
with a richer understanding of the prospect’s situation. As
a result, the sales dialogue focuses on the customer and
naturally leads to a believable solution with data document-
ing the value of solving the problem. I put myself in the shoes
of our salespeople to determine what tools and information
would be helpful to them in becoming a consultant to their
customers.

A good example of this would be the healthcare mar-
ket for products proven to control infections. Healthcare-
associated infections are a major, yet most often prevent-
able, threat to patient safety and healthcare facilities are
required to regularly report their experience with infections
to the federal Centers for Disease Control and Prevention
(CDC). Our company has a product line that has a highly
successful record in controlling healthcare-associated infec-
tions and we regularly access the CDC’s public data along
with additional information from 3rd party data vendors
that provides our field salespeople with specific information
as to which healthcare facilities are having problems that
our product line could solve. This combination of big data
allows us to provide our salespeople with the facility name
and location, types and rates of infections, names and con-
tact information for the decision makers, affiliated systems
and groups, and year-over-year financial data. We shrink
the universe of all healthcare facilities down to a specific set
of who needs help and who they should be targeting.

From the Classroom
to the Field
Using Big Data for Enhanced Targeting of Selling Activities

236

mystify upper management, and helps secure his consis-
tent receipt of Top Salesperson of the Year Award year
after year. When salespeople such as Williams act on the
information provided by customer service to advance
customer relationships and increase sales, customer
service personnel will also be further inclined to work
together to benefit the team. On the other hand, sales-
people often assist customer service personnel by work-
ing directly with customers to address problems before
they become complaints and provide instruction and
training to assist customers in using the products sold.

10-7 BUILDING TEAMWORK
SKILLS

Effective teams do not form by default. Nor can a team
be effective in producing synergistic benefits solely be-
cause it is called a team. Like customer relationships,
internal relationships are built on reciprocal trust. The

salesperson that arbitrarily and repeatedly asks for spe-
cial production runs, extensions to customers’ lines of
credit, expedited shipments, or special attention from
customer service is simply asking for quick fixes. These
quick fixes serve the objectives of the customer and
salesperson but often work against the objectives of the
functional unit and the organization as a whole.

Synergistic teamwork requires a commitment on the
part of all parties to look for and work for win/win solu-
tions. However, in the rush to take care of a customer,
it is all too easy for salespeople to fall into a win/lose
orientation. It is not that they want anyone to lose, but
rather that they get what they want. This win orienta-
tion is most common in everyday negotiation—in!which
people think and act in terms of accomplishing their own
goals and leave it to others to attain theirs. As illustrated
in Figure!10.7, optimum solutions develop from a team
orientation based on the philosophy of win/win alterna-
tives.7 In turn, this can happen only when there are high
levels of mutual trust and communication: “Not your
way, not my way, but a better way.”

Optimum buyer–seller solutions result from a team orientation and require high levels of mutual trust and mutual
cooperation. (Excerpt from The 7 Habits of Highly Effective People © 2004 Stephen R. Covey. The Time Management
Matrix phrase and model are trademarks of Franklin Covey Co., http://www.franklincovey.com. Used with permission.
All rights reserved.)

RELATIONSHIP OF OPTIMIZED SOLUTIONS, TRUST, AND COOPERATIONFIG. 10.7

Mutual Cooperation
Low High

Lo
w

H
ig

M
ut

ua
l T

ru
st

Competitive and
Defensive Outcomes

(Win/Lose or
Lose/Win)

Compromise
Solutions

Optimized and
Synergistic Solutions

(Win/Win)

237CHAPTER 10: Adding Value: Self-leadership and Teamwork

In his bestselling book for personal develop-
ment, Stephen Covey offers six keys to developing
synergistic relationships and teams.8 These are the six
teamwork skills that salespeople must learn and
sincerely apply in their process of building internal
partnerships that translate into increased sales and
organizational performance.

! Understanding the Other Individuals—Fully understanding
and considering the other individuals in the partnership
is necessary to know what is important to them. What
is important to them must also be important to the
salesperson if the partnership is to grow and be effective.
This means that salespeople must take time to learn the
objectives of other functional areas and consider how
those needs and requests might affect the salesperson’s
goals and objectives.

! Attending to the Little Things—The little kindnesses and
courtesies are often small in size and great in impor-
tance. In building relationships, the little things are the
big things. Properly attended to and nurtured, they
enhance the interrelationships. At the same time, if
they are neglected or misused, they can destroy the
relationship very quickly.

! Keeping Commit-
ments—We all build
our hopes and plans
around the promises
and commitments
of others. When a

commitment is not kept, disappointment and problems
result. As a result, credibility and trust suffer major dam-
age that is always difficult and often!impossible to repair.
However, consistency in keeping commitments builds
and solidifies trust-based relationships.

! Clarifying Expectations—The root cause of most relational
difficulties can be found in ambiguous expectations
regarding roles and goals—exactly where are we going
and who is responsible for what? Investing the time up
front to clarify expectations regarding goals and roles
can save even more time down the road when misun-
derstandings become compounded and turn into goal
conflicts and breakdowns in communication.

! Showing Personal Integrity—Demonstrating personal
integrity generates trust, whereas a lack of integrity
can quickly undermine the best of teamwork orientations.
People can seek to understand others, carry through
on the little things, keep commitments, and clarify
expectations but still fail to build trust by being inwardly
duplicitous and pursuing a personal agenda. Be
honest and open, and treat everyone by the same
set of principles.

! Apologizing Sincerely When a Mistake Is Made—It is one
thing to make a mistake. It is another thing not to admit
it. People forgive mistakes. What is harder to forgive are
the ill intentions and motives justifying any attempt to
cover up. “If you are going to bow, bow low.” The apology
must be perceived as sincere and not simply as an
automated lip-service response.

STUDY TOOLS10
LOCATED IN TEXTBOOK

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LOCATED AT WWW.CENGAGEBRAIN.COM
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StudyBits

! Organize notes and StudyBits using the StudyBoard feature
within Online

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! Complete interactive content within the exposition

! View chapter highlight box content at the beginning of each
chapter

teamwork skills Skills
salespeople must learn to build
internal partnerships that translate
into increased sales and organizational
performance.

238

CHAPTER CASE10
U N I V E R S A L C O N T R O L C O R P.

B A C K G R O U N D
Universal Control Corp. is a leading supplier for process
control systems and equipment used in a wide variety of
production and distribution applications. You have taken
a sales representative job with Universal, and having just
completed training, you have been given a territory of your
own. Your district manager has provided you with a list of
accounts (on adjacent column) as well as several boxes of
notes and files that had been assembled and used by your
predecessor. These are the accounts currently buying your
products. You are expected to build these accounts and add
new accounts to the list as you increase your territory’s sales
performance. You have summarized the account information
into the summary set of account profiles, which follows.

Q U E S T I O N S
1. Develop a portfolio classification of accounts and

assess the allocation of sales calls your predecessor
made over the past year.

2. What problems do you find with the previous
allocation of calls on these accounts?

3. Based on your account classification analysis, suggest
a new sales call allocation strategy that would make
better use of your time in the territory.

R O L E P L AY
Situation: Read the provided Universal Control Corp. case
material

Characters: Zack Hanna, salesperson for Universal Control
Corp. Gage Waits, district sales manager and Hanna’s
immediate supervisor

Scene:
Location—Gage Waits’ office at Universal Control Corp.

Action—Zack has just been assigned this territory and
has completed an analysis of sales and customer files to
profile the individual accounts and sales call allocation
strategies utilized by the previous salesperson in the
territory. Based on this information, Hanna has developed
information responding to each of the three questions
following the Universal Control Corp. case materials.

Account Name
Account

Opportunity
Competitive

Position

Annual
Number
of Sales

Calls Last
Year

Mueller
Distribution

High Low 30

Tri-State
Specialties

Low High 20

Birkey Paper Co. Low High 26

Normal Supply Low Low 12

Darnell Aggregate
Products

Low High 21

Reinhart
Chemicals

High High 26

ACCO
Manufacturing

Low High 23

Tri-State
Manufacturing

High Low 28

Ideal
Engineering

Low Low 11

Terracon High High 25

Lowry Foods High Low 26

SCS Industrial High High 27

Lowell Services Low High 18

Bowles and Sons Low High 21

American
Foundry

High Low 22

Hewitt &
Associates

Low Low 16

Bright Metals Inc. High High 22

Decatur
Extrusions

Low Low 14

King Chemicals Low High 22

Bear’s Steel Corp. Low High 20

Hoffman
Pharmaceuticals

High Low 20

Barlow & Clark
Systems

Low High 18

239CHAPTER 10: Adding Value: Self-leadership and Teamwork

This information includes a new sales call allocation
strategy. Hanna is meeting with his sales manager to
explain his new sales call allocation plan.

As Hanna, complete the three questions previously
listed. Using this information, role play your interaction
with your sales manager, Gage Waits, as you discuss and
explain (1) your analysis of the previous salesperson’s sales
call allocation and (2) your new plans and how they will
increase the effectiveness and efficiency of your selling
efforts in this territory.

After completing the role play, address the following
questions:

1. How might Hanna’s sales allocation plan be different if
he had used single-factor analysis (ABC analysis) instead
of portfolio analysis?

2. Develop a sales call allocation plan using single-factor
analysis. Compare the results of Hanna’s portfolio
analysis with the results of your single-factor analysis.
Where and how are they different?

3. How might those differences translate into increased
selling effectiveness and efficiency?

240

B U S I N E S S T E C H N O LO G Y S O LU T I O N S , I N C

B A C K G R O U N D
You are a senior-level Account Manager for Business
Technology Solutions, a recognized industry leader in
providing state-of-the-art, technology-based, business
payroll and human resource management applications
including full-service processing and secure archiving of
related records. Your primary selling responsibilities center
on new account development and working with existing
accounts to increase your share-of-account by providing
them expanded employment applications and services
as their business needs evolve and grow. The day-to-day
account management and servicing activities are handled
by your dedicated Customer Solutions Team—service
representatives who work closely with both you and with
customers through the phone and Internet to provide the
personal touch and frequent follow-up necessary to assure
everything is working as expected and to enhance long-
term relationships with customers.

Recent feedback from a number of key accounts has
pointed out that the level of service provided by your

Customer Solutions Team has become inconsistent and all
too often falls below the level of service you have committed
to and which your customers expect. As a result, several
customers have left and gone with competitive service
providers. Rather than acquiring new accounts, you are
spending much of your time working to patch over the service
shortcomings and working to win back the accounts who have
defected to the competition. Not only are you losing business,
but your own reputation—as well as the reputation of the
company—is beginning to suffer in the marketplace.

R O L E P L AY
In discussing these problems with your sales manager, it was
decided that you would meet with your dedicated Customer
Solutions Team in order to discuss and find a workable
solution to the problems.

Role play how you would approach and initiate a positive
discussion with the members of the Customer Solutions
Team that would generate improved experiences and
outcomes for your customers and for Business Technology
Solutions. Remember to employ Covey’s six teamwork skills
discussed in this chapter.

10 CHAPTER ROLE PLAYAdding Value: Self-Leadership and Teamwork

241CHAPTER 10: Adding Value: Self-leadership and Teamwork

ENDNOTES

1
1. Andris Zoltners, P.K. Sinha, and Sally E.
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4. Joel Le Bon, Competitive Intelligence and the
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9. Ibid.
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2
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Weger, Jr., A. Jensen, and H.”J. Kinzer, “The Role of
Background Behavior in Televised Debates,” The Jour-
nal of Social Psychology 150 (May 2010): 278–300.

5
1. Kenneth Le Meunier-FitzHugh and Leslie
Caroline Le Meunier-FitzHugh, Creating Effective
Sales and Marketing Relationships (New York: Busi-
ness Expert Press, 2015): 33; Laurence Minsky and
Keith A. Quesenberry, “How B2B Sales Can Bene!t
from Social Selling,” hbr.org (November 10, 2016): 1-6.
2. Hila Nir, “4 Steps to a Sales-Boosting Account-
Based Marketing Program,” salesandmarketing.com
(2/10/2017): 1-2.
3. Suzanne Payer, “Marketing Conversations Yield
Conversions at Ricoh.” (5/2112014): 1-2.
4. Henry Canaday, “The Same Team,” Selling
Power (January/February 2011): 51–52.
5. Tim Riesterer, “Is the 57% Statistic An Urban
Legend?” salesandmarketing.com (1/26/2017): 1-2;
Nicholas Toman, Brent Adamson, and Cristina
Gomez, “The New Sales Imperative,” Harvard
Business Review (March-April2017): 119-125.

6. Ibid., Minsky and Quesenberry, “’How B2B
Sales Can Bene!t from Social Selling.”
7. Vanessa DiMauro, “Social Selling: Let’s Get A
few Things Straight,” socialmediatoday.com (May 5,
2016): 1–5.
8. Paul Nolan, “Taming the technology tornado,”
salesandmarketing.com (6/27/2016): 1–2.
9. Paul Nolan, “Get social or get left behind,” sale-
sandmarketing.com (114/2017): 1–2; Ibid., Minsky
and Quesenberry, “How B2B Sales Can Bene!t
from Social Selling.”
10. Heather Clancy, “Social Selling Success Isn’t
Limited to Millennials,”fortune.com (5/9/2016): 1–3.
11. Ibid, Minsky and Quesenberry, “How B2B
Sales Can Bene!t from Social Selling.”
12. Ibid, Clancy, “Social Selling Success Isn’t
Limited to Millennials.”
13. Author interview with Gwen Tranguillo, Hershey
Chocolate, U.S.A.
14. Bernie Borges, Integrating Social Selling Pro-
cess and Technology is the Key to Optimal Results,”
socialmediatoday.com (July 27, 2016): 1-7; lrfan
Ahmad, “The State of Social Selling in 2016,”
social/mediatoday.com (December 17, 2015): 1–6.
15. Michael Labate, Kirsten Boileau, and Phil Lurie,
‘Three Ways Salespeople at SAP Are Winning with
Social Selling,” Selling Power Blog (4/3/2017): 1–3.
16. Author interview with Thomas Avila, Davis
and Davis.
17. E. A. Sullivan, “A Worthwhile Investment,”
Marketing News (December 2009): 10–11.
18. Author interview with Mark Thomas, United
Insurance Agency.
19. Selling Power Editors, “Maximize Web Leads,
Virtually,” Selling Power (February 2017): 5.
20. Author interview with Tom Raisor,
Northwestern Mutual.
21. Author interview with Brittany Morriston,
Consolidated Electrical Distributors.
22. H. Canaday, “In Transition,” Selling Power
(May/June 2011): 39–41.
23. H. Baldwin, “Big Change @ Big Pharma,”
Selling Power (May/June 2011): 29–32.

6
1. Mike Schultz, “Sales Call Planning: What to
Know Before Every Sales Call,” from the RAIN
Group blog at https://rainsalestraining.com, May
25, 2017; Mark Magnacca, “Why Salespeople
Must Become More Than Order Takers,” for the
Selling Power blog at https:/ /selling power.com,
April 27, 2016; and Rikke Friis Dam,” How to
Prepare for a Successful Sales Call,” from the
Interaction Design Foundation web site, https://
www.interaction-design.org, December 16, 2016.
2. Felice Philip Vedrrecchia, “How to Write a
Sales Proposal,” online Entrepreneur’s Resource
Center ofthe Edward Lowe Foundation at http://
edwardlowe.org/digital-library, accessed April 23,
2017; Jim McCarthy, 29 Reasons Why Government
Contract Proposals Fail,” Artillery Marketing online
at https://www.artillerymarketing.com, May 10,
2017; and Dave Decker, “Most Common Sales
Proposal Mistakes,” from the Carew International
Sales Excellence blog at https://www.carew.com,
October 20, 2016;
3. For more tips on writing effective sales proposals,
see: Scott Stiver, “Tips for Writing a Better Proposal,”
from the Carew International Sales Excellence blog
at https://www.carew.com, October 27, 2016; Dhruv
Patel, “10 Tips to Create an Effective sales Proposal,”

243Endnotes

from the Sales Handy blog at https://www.saleshandy
.com, August 10, 2016; and Mikata Mikado, “5 Ways
to Create Sales Proposals that Close Deals,” from
The Center for Sales Strategy blog at http://www
.thecenterforsalesstrategy.com, September 26, 2016.
4. Adapted from Bob Kantin, “Sales Proposal
RATER,” available from http://www.salesproposals
.com, May 9, 2017.
5. For more discussion of customer value
propositions, see Jill Konrath, “Value Proposition
Generator,” available at http://www. jillkonrath
.com, downloaded April 3, 2017; Gregory Ciotti,
“Writing Value Propositions that Work,” from the
Help Scout blog at https://www.helpscpout.net/ blog,
April 21, 2016; and Laura lake, “How to Develop
Your Value Proposition,” from The Balance web site
at https://www.thebalance, December 19, 2016.

7
1. Michael Harris, “Can Your Salespeople
Articulate Value Or Does It Sound Like Magic?”
salesandmarketing.com (4/28/2016):1–2.
2. David A. Gilliam and Karen E. Flaherty, “Story-
telling by the sales force and its effect on buyer-
seller exchange,” Industrial Marketing Management
(January 2015): 132–142.
3. Ibid., Harris, “Can Your Salespeople Articulate
Value Or Does It Sound Like Magic?”; Dustin
Grosse, “5 Tips for Giving a Killer Sales Presenta-
tions,” salesandmarketing.com (12/7/2015): 1–2.
4. Author interview with Eric Brown, Malone
Solutions.
5. Henry Canaday, “Engage in Sales,” Selling
Power (March 2015): 29; www.clearslide.com, www
.bigtincan.com.
6. Wright Wiley, “Eye-to-Eye Selling,” Selling
Power (May/June 2011): 27.
7. Author interview with Chris Pursell, DRE Medical.
8. Geoffrey James, “Lifesaving Sales,” Selling
Power (June 2009): 40–43.
9. Author interview with David Frick, Success
Ventures.
10. Heather Baldwin, “Big Change @ Big Pharma,”
Selling Power (May/June 2011): 29–32.
11. Author interview with Nick George, Advanced
Payroll Systems.
12. Sharon Yoon, “A Site for Satis!ed Eyes,”
Sales!& Marketing Management (September/
October 2008): 10.
13. Adapted from Mary Ann Oberhaus, Sharon
Ratliffe, and Vernon Stauble, Professional Selling:
A Relationship Approach (Fort Worth, TX: The
Dryden Press, 1995): 410–12.
14. Author interview with Sara Ames, Aspect
Software.
15. Author interview with Todd Harrett, Northern
Continental Logistics.

8
1. Marc Deiner, “Don’t Know When to Cut Your
Losses and Leave the Negotiating Table? Look
for These Telltale Signs,” Entrepreneur Magazine
(August 2003).
2. Brad Huisken, “Saving the Sale: Objections, Rejec-
tions and Getting to Yes,” JCK, (January 2003): 62–63.
3. Tom Reilly, “Why Do You Cut Prices?” Indus-
trial Distribution (June 2003): 72.
4. Robert Menard, “‘Cost’ Is About More Than the
Price,” Selling (July 2003): 9.

5. Kim Sydow Campbell and Lenita Davis, “The
Sociolinguistic Basis of Managing Rapport When
Overcoming Buying Objections,” Journal of Business
Communication (January 2006): 43–66.
6. Salespeople can forestall known concerns, but
shouldn’t bring up issues that aren’t even a problem
with a particular prospect. Thus, the need for good
precall information gathering becomes obvious. See
“Think Like a Consumer to Make Buying From a
Cinch,” Selling (November 2004): 8.
7. Mark Borkowski, “How to Succeed in Closing
Deals, without Closing,” Canadian Electronics 19
(May 2004): 6.
8. Neil Rackham, Spin Selling (New York:
McGraw-Hill, 1988): 19–51.
9. Joan Leotta, “Effortless Closing,” Selling Power
(October 2001): 28–31.
10. Susan Del Vecchio, James Zemanek, Roger
McIntyre, and Reid Claxton, “Updating the Adap-
tive Selling Behaviors: Tactics to Keep and Tactics
to Discard,” Journal of Marketing Management 20
(2004): 859–875.

9
1. “Mobile Apps are a Sweet Addition to Hershey’s
Business,” https://www.salesforce.com/customer
-success-stories/hershey-company/ accessed
February 24, 2017.
2. Howard Stevens and Theodore Kinni, Achieve
Sales Excellence (Avon, MA: Platinum Press, 2007).
3. Michael Ahearne, Ronald Jelinek, and Eli Jones,
“Examining the Effects of Salesperson Service Behav-
ior in a Competitive Context,” Journal of the Academy
of Marketing Science 35 (December 2007), 603–616.
4. Robert W. Palmatier, Srinath Gopalakrishna, and
Mark B. Houston, “Returns on Business-to-Business
Relationship Marketing Investments: Strategies for
Leveraging Pro!ts,” Marketing Science 25 (September–
October 2006): 477–493.
5. Strativity Group, “The 2014 Customer Experience
in Action Study,” http://strativity.com/wp-content
/uploads/2014/03/CEM-Benchmark-Study-2014
-Executive-Summary.pdf, accessed on February 10,
2017
6. John Taschek, “How to Avoid a CRM Failure,”
eWeek 18, no. 40 (October 15, 2001): 31.
7. Gerhard Gschwandtner, “What Makes Sales”
Relationships Work?” Selling Power 30 ( May–June,
2010): 9.
8. Ross Beard, “Why Customer Satisfaction is
Important (6 Reasons),” January 2014, http://blog
.clientheartbeat.com/why-customer-satisfaction-is
-important/ accessed on February 22, 2017.
9. Ahearne, Jelinek, and Jones, “Examining the
Effect of Salesperson Service Behavior in a Com-
petitive Context.”
10. Katie Kazmierczak, “Strativity Releases Bench-
mark Survey Results—81% of Global Companies Are
Not Committed to Customer Experience,” http://
strativity.com/customer-experience-benchmark-
study-release-2014/, accessed on February 10, 2017
11. Ross Beard, “5 Examples of How Customer
Satisfaction Can beUsed as a Point of Differentia-
tion,” January 2014, http://blog.clientheartbeat.com
/customersatisfaction-point-of-differentiation/,
accessed on February 22, 2017.
12. “How Stea IT Saved an $180,000 Contract by
Using Client Heartbeat” https://www.clientheartbeat
.com/customers/steait/, accessed on March 3, 2017.
13. Christine Galea, “What Customers Really
Want,” Sales & Marketing Management 158
(May”2006): 11.

14. Ken Dooley, “Why customers buy & why they
don’t: The latest research reveals …,” http://www
.customerexperienceinsight.com/why-customers
-buy-why-they-dont/, accessed on October 3,
2015; Geoffrey James, “10 Things Every Customer
Wants,” http://www.inc.com/geoffrey-james/10
-things-every-customer-wants.html, accessed on
October 3, 2015.
15. “Advance CRM Solutions,” Personal Selling
Power (January/February 2007): 96–99.
16. “ADP Reps Make Every Moment a Selling
Moment with Salesforce,” http://www.salesforce
.com/customer-success-stories/ADP/, accessed on
February 24, 2017.
17. Stevens and Kinni, Achieve Sales Excellence.
18. Gabriel Gonzalez, Douglas Hoffman, Thomas
Ingram and Raymond LaForge, “Sales Organization
Recovery Management and Relationship Selling: A
Conceptual Model and Empirical Test,” Journal of
Personal Selling & Sales Management 30 (Summer
2010): 223–237.
19. Eileen McDargh, “Provide Great Service,” Sales
& Service Excellence 10 (June 2010): 10.
20. John Werner, “Customer Complaints: A Gift in
Disguise,” ASQ Six Sigma Forum Magazine (May
2013): 28–30.
21. Ibid.
22. Sandra Rothenberger, Dhruv Grewal, and
Gopalkrishnan R. Iyer, “Understanding the Role of
Complaint Handling on Customer Loyalty in Service
Relationships,” Journal of Relationship Marketing 7,
no. 4 (2008): 359–376.
23. Chia-Chi Chang, “When Service Fails: The
Role of the Salesperson and the Customer,” Psy-
chology & Marketing 23 (March 2006): 203–224.
24. Robert D. Ramsey, “How to Handle Customer
Complaints,” American Salesman 55 (June 2010):
25–30.
25. John Graham, “Well, Thanks!” Selling Power
31 (March/April 2011): 12–15.
26. Stevens and Kinni, Achieve Sales Excellence.

10
1. Turner, John, “How to Use Numbers to Increase
Your Numbers: The Role of Data in Driving
Sales,” SellingPower Sales Leadership Blog,
Published August 4, 2016, http://salesleadershipblog.
sellingpower.com/2016/08/04/use-numbers-increase
-numbers-roledata-driving-sales/. Accessed June
22, 2017.
2. S. R. Covey, The 7 Habits of Highly Effective
People (New York: Simon & Schuster, 2004).
3. T. Ingram, R. W. LaForge, R. Avila, C. H.
Schwepker Jr., and M. R. Williams, Sales Manage-
ment: Analysis and Decision Making, 9th ed. (New
York: Routledge, 2015).
4. E. Babakus, D. W. Cravens, K. Grant, T. N.
Ingram, and R W. LaForge, “Removing Salesforce
Performance Hurdles,” Journal of Business and
Industrial Marketing 9, 3 (1994): 19–29.
5. J. Attaway, M. Williams, and M. Grif!n, The
Rims-QIC Quality Scorecard (Nashville, TN: The
Quality Insurance Congress, 1998, 1999).
6. James Champy, “Selling to Tomorrow’s Customer,”
Sales & Marketing Management (March 1999): 28.
7. Covey, The 7 Habits of Highly Effective People.
Used with permission.
8. Ibid.

244 Endnotes

INDEX

A
Abbot Laboratories, 170
acceleration principle, 52
account classi!cation, 221

de!ned, 222
portfolio analysis, 223–224
sales planning, 224–225
single-factor analysis, 222–223

account goal, 220
activation questions, 92, 93
active listening, 22, 97–100
actual states, 53
adaptive selling, 11
ADAPT questioning system, 89,

90–96, 128
activation questions, 92, 93
assessment questions, 90, 91
discovery questions, 92
projection questions, 93, 94
transition questions, 93, 94

adding value, 194, 216–241. See also
customer value

account classi!cation. See account
classi!cation

administrative support
partnerships, 235

customer service partnerships,
236–237

design and manufacturing
partnerships, 235

effective self-leadership, 218–220
goals. See goals
internal partnerships and teams,

233–234
marketing partnerships, 235
performance/goal assessment, 233
sales partnerships, 234–235
shipping and transportation

partnerships, 235
technology and automation, 229–233
territory routing plans, 225–229
through teamwork, 233–237

administrative support
partnerships, 235

ADP, 49
advertising inquiries, 117
after-sale activities, 199, 200–202
AIDA (attention, interest, desire,

action), 12
AirFlyte, 145–146
Allego, 126
alternative/legitimate choice, 186
American Marketing Association, 41
AmeriVault, 171
amiables, 70
analogies, 156–157
analyticals, 70, 71
Anderson, Dave, 172
Anderson, Jaime, 219
anecdote, 156
arrival tactics, 164
assertiveness, 69, 70
assessing objections, 179, 182
assessment questions, 90, 91
assumptive close, 188
assurance, 133
athletic shoe buyers, needs of, 51
automation. See technology

B
balance sheet commitment, 187
basis of the bargain, 43
Bat, Inc., 80
Beats headphones, 147
Beaty, Darrell, 37
Belkin, 50
bene!ts, 140
Beyond the Wall of Resistance

(Mauer), 172
billing errors, 199, 203
blogs, 77, 122
boomerang method, 179, 181
bribery, 43
The Brooks Group, 13
building goodwill, 194
business consultant, 14
business market

characteristics. See business
market characteristics

de!ned, 50
business market characteristics

collaborative buyer-seller
relationships, 53

concentrated demand, 52
demand “uctuation, higher levels

of, 52
derived demand, 52
multiple buying in”uences, 52–53
purchasing professionals, 52

Business Networking International
(BNI), 115

Business Technology Solutions,
Inc., 241

buyers. See also customers
access to information, 76–77
beliefs of, 63
concerns of. See sales resistance
engaging and involving, 157–161
ethics of, 45
feedback from, 150–152
needs of, 55–60, 96
types of, 50

buyer-seller relationships, 53. See
also customer relationships,
expanding

buying in”uences, multiple, 52–53
buying motives, 140
buying process, 53–55

needs gap, 55
vs. selling process, 54

buying teams, 72–74

C
candor, 33, 34
canned sales presentations, 129–130
Cannon, Bob, 171
case histories

AirFlyte, 145–146
Charlene Milton’s dilemma, 46
Customer-360 Inc., 78–79
de!ned, 162
HSK, PC, 105
LoExposure Outerware, 23–24
Mid-East Metals, 190
MobiLogics, 105

Naturally Beautiful, Inc., 212–213
Of!ce Furniture Company, 168
strategic prospecting#plan, 123
Universal Control Corp., 239–240

centers of in”uence, 115
Chagrin Falls, OH, 171
Champy, James, 234
Chapman Kelly, 117
check-backs, 151
Chester, CT, 172
circular routing plans, 228
Cisco Systems, 75, 76
Citrix Systems, 77
closed-end questions, 87
cloverleaf routing plan, 226, 227
cold calling, 114
collaborative conversation, 83, 85
collaborative involvement, 206–207
combination sales jobs, 20–21
coming-to-That, 179, 182–183
commitment, 183–189

balance sheet, 187
direct, 186
guidelines for earning, 184–185
probing for, 188
success story, 187
summary, 187
T-account, 187
techniques for securing, 185–188
traditional methods of earning,

188, 189
trial, 185

commitment signals, 184–185
communications

amiables and, 70
analyticals and, 70, 71
assertiveness, 69, 70
channels, 75
de!ned, 210
drivers and, 70, 71
expressives and, 70–71
“exing of, 71–72
nonverbal. See nonverbal

communication
oral, 22
responsiveness, 69–70
sales. See sales communication
skills. See communication skills
styles, 68–72
tips, 164–165
trust-based sales communication,

83, 85
verbal. See verbal communication
written, 22

communication skills
collaboration, 85
grammar and logical sequencing,

100–101
listening. See listening
personal space and interpersonal

communication, 103
picture vs. words, 100–101
questioning. See questions/

questioning
vocal characteristics, 102

company records, 117
company/source objections, 176–177
company sources, 116–117
comparisons, 156–157

compatibility, 33, 35
compensation, 18–19, 179, 182
competitive depositioning, 63
competitive situation, 141
competitor knowledge, 36, 39, 40
complaints. See customer complaints
concentrated demand, 52
concerns, of buyers. See sales resistance
con!dentiality, 28
con!rmed bene!ts, 152
connections, 197
consultative selling, 14–15
consumer market, 50
Content marketing, 59
continued af!rmation, 11
continuous yes close, 188
Contour Plastics Corporation, 234
contributions, 33
coordination, 22
Corelli, Christine, 4
Crabtree, Chris, 207
Crist, Richard, 39
critical encounters, 203–204
CRM. See customer relationship

management (CRM)
Customer-360 Inc., 78–79
customer complaints

action taking to resolve, 206
comfortable customer

relationships and, 205
follow-through on promises, 206
gaining agreement on a solution,

205, 206
listening, 205
procedure for handling, 204–205
resolving, 205
typical, 204

customer-focused sales dialogue,
127–128

customer relationship management
(CRM), 74, 75, 122, 198–199,
230–231

customer relationships, expanding,
192–215

adding value/enhancing
opportunities, 207–211

assess customer satisfaction, 194–196
billing errors, corrected, 199, 203
collaborative involvement,

206–207
expediting orders and monitoring

installation, 202
relationship enhancers/

detractors, 194
resolving complaints, 205
technology and, 196–199
training customer personnel,

202, 203
customers. See also buyers

complaints. See customer
complaints

engagement, 74–77, 144
expectations of, 209–210
experience, 74
knowledge, 38, 39
mutually satisfying relationships

with, 207–211
orientation towards, 33
salespeople and, 10

245Index

customer satisfaction
assessing, 194–196
ensuring, 199–206

customer service, 207–209. See also
customer complaints

partnerships, 236–237
customer value

creation of, 152–153, 154
de!ned, 6
enhancing, 208
importance of, 6
increasing through teamwork,

233–237
proposition, 136, 138–139

D
deal analytics, 232
deceptive practices, 43
deciders, 72, 73
Decker, Karl, 31
delighter attributes, 64
Dell, 75
dependability, 33
derived demand, 52
design and manufacturing

partnerships, 235
desired states, 53
detailer, 19
dichotomous questions, 87
diffusion of innovation, salespeople

and, 8
direct commitment, 186
direct denial, 179, 181
directories, 117, 118
direct-to-consumer sales, 20
discovery questions, 92
Division D, 58, 66
drivers, 70, 71

E
economic stimuli, 8
EDI. See electronic data interchange

(EDI)
Eiskina, Brett, 73–74
electronic data interchange (EDI), 67
electronic materials, 159
emotional buying motives, 140
emotional close, 188
empathy, 133
enhancement activities, 199
ethical dilemmas. See also sales

ethics
adding value, 233
billing error, 203
building key relationships with

potential clients, 34
commitment, 189
corporate sponsorship, 14
customer relationships, 203
sales bonuses vs. customer

needs, 56
sales dialogues/presentations,

140, 154
training program, 97

evaluative questions, 87
example, 155–156
existing business salespeople, 20
expertise, 31–33
expressives, 70–71
express warranty, 43
external relationships, 234
extranets, 197–198, 232
eye contact, 164
eye movements, 101

F
Facebook, 122
facial expressions, 101
fairness, 28
farmers, 20
fear close, 188
features, 140
Federal Metal Products (FMP), 224
feedback, 9–10
feel-felt-found, 179
Finkle, Linda, 172
FirstRain, 76
follow-up methods, 200–202
follow-up post-sale, 200–202

building relationships through, 201
forestalling, 179, 181
formula approach to sales, 12
functional attributes, 64
functional needs, 51, 56, 57

G
Gager, Bill, 172
gatekeepers, 73
Gavic, Jim, 235
gift giving, 44–45
GlaxoSmithKline (GSK), 21
goals, 218–219

account, 220
characteristics of, 219–220
levels and#types of, 220–221
personal, 220
sales call, 220–221
territory, 220

Google, 127, 143
GPS tracking systems, 39
grammar, 100–101
Greiling, Jay, 28
Grimes, Cheryl, 171
group sales dialogue, 162–167

arrival tactics, 164
communication tips, 164–165
eye contact, 164
handling questions in, 165–167

Growmark, 72
Gschwandtner, Gerhard, 195

H
Halverson, Kirsten, 229,231
Heartland Technology, 106
Herman Miller, 48
Hershey Company, 192–193
High Probability Selling (Worth), 171
high-tech sales support of!ces, 232
honesty, 28
Hoovers, 118, 127
Hroncich, Martino, 170, 172
HSK, PC, 105
Hubspot, 195
Huff, John, 45
hunters, 20

I
ideal customer pro!le, 112
illegal activities, 43
implication questions, 90
importance weights, 63
inbound telemarketing, 117
indirect denial, 179, 181
industry and company knowledge, 36
in”uencers, 72, 73

information sources, 122
information technology, 74, 75, 75
InfoUSA, 118
initiators, 72, 73
inside sales, 20
InsideView.com, 127
Insight Global, 17
interaction, 197
internal relationships, 234
Internet, 232
intimate zone, 102
intranet, 197
intranets, 232
introduction, 115

J
James, Curtis, 235
Johnston, Deanna, 50

K
Kimberly Clark, 229,231
knowledge (of buyer), 197
knowledge bases, 35–40

competitor knowledge, 36, 39, 40
customer knowledge, 38, 39
industry and company knowledge, 36
market knowledge, 38, 39
price knowledge, 37–38
product knowledge, 37
promotion knowledge, 37–38
service issues, 37
technology knowledge, 40

knowledge needs, 51, 57
Knowles, Eric S., 170, 172

L
LAARC (listen, acknowledge, assess,

respond, and con!rm), 178–180
Lang, Peter, 14–15
lead management services, 118
leapfrog routing plan, 228
likability, 33, 35
LinkedIn, 9, 116, 122, 127
LinkWare, 77
listening

active, 22, 97, 98–99
customer complaints, 205
effectiveness of, 94–95, 96
serious, 97
SIER model, 98, 99
social, 96

logical sequencing, 100–101
long-term ally, 14
LoExposure Outerware, 23–24
Lynch, Jordan, 16, 136

M
Magnacca, Mark, 126
major city routing plan, 228, 230
managers, salespeople as future, 10
market knowledge, 38, 39
Marketo, 118
market research, 9–10
Mauer, Rick, 172
Medwed, Michael, 84, 85
mental states selling, 12
Metro Insurance Services, 106
Michelin North America, 86
Microsoft PowerPoint, 159
Mid-East Metals, 190

Midwest Live Bait & Tackle, LLC,
214–215

minor-points close, 188
misrepresentation, 43
missionary salespeople, 19
MobiLogics, 105
mobile salesperson CRM solutions, 231
modi!ed rebuy decisions, 68
Moler, Bob, 191
motivation

service, 211
Mueller Field Operations Inc., 198, 206
multiattribute model, 60
multiple-choice questions, 87
must-have attributes, 64
mutually satisfying relationships,

207–211

N
Naturally Beautiful, Inc., 212–213
need objections, 176
need-payoff questions, 90
need satisfaction selling, 12, 13
needs gap, 53, 55
neglected attributes, 63
negligence, 43
networking, 115, 116
new-business salespeople, 20
Newman, John, 28
new-task decision, 67–68
Nimblefoot, 145
noncompeting salespeople, 115
nonverbal clusters, 103
nonverbal communication

body posture/orientation, 102
de!ned, 101
eye movements, 101
facial expressions, 101
movements, 101
proxemics, 102

Northwestern Mutual (NM), 119

O
objections to sales. See sales

resistance
objectives, 218, 219

characteristics of, 220
O’Connor, Steve, 96
Of!ce Furniture Company, 168
O*NET Resource Center, 21–22
open-end questions, 87
openness, 28
oral communications skills, 22
order-getters, 20
#order#routine, 63
order-takers, 20
organized sales dialogue, 132, 134, 135
organized sales dialogues/

presentations. See sales dialogue
and presentations

organized sales presentation, 132
outbound telemarketing, 117
outsourcing, 77

P
partnerships

administrative support, 235
customer service, 236–237
design and manufacturing, 235
marketing, 235
sales, 234–235
shipping and transportation, 235

246 Index

Parker, Jesse, 190
pause duration, 102
performance assessment, 233
performance feedback and

evaluation, 64
personal goals, 220
personal selling

alternative approaches. See sales
approaches

contributions of, 8–10
de!ned, 3
jobs, classi!cation of, 19–21

personal zone, 102
pictures vs. words, 100–101
pioneers, 19–20
portfolio analysis, 223, 224
postpurchase evaluation, 64, 65
post-sale follow-up, 200–202
Potomac, 172
predictability, 33
preselling, 163
presentations. See sales dialogue and

presentations
Prezi, 82
price knowledge, 37–38
price objections, 177
Primus, Richard, 192–193
probing questions, 87
problem questions, 90
problem solving, 22
problem-solving selling, 13
Procter & Gamble Professional

(PGP), 48–49
product claims, supporting, 161–162

case histories, 162
statistics, 161
testimonials, 161–162

productive sales approach, 3
product knowledge, 37
product performance scores, 61
“product push” strategy, 6
product/service objections, 176
professional selling, evolution of, 7
projection questions, 93
promotion knowledge, 37, 38
proposals

customer needs and proposed
solution, 132

evaluation of, 63
executive summaries, 131
seller pro!le, 132
writing, 131–132

prospecting, 108–124
cold canvassing, 114–115
commercial sources, 117–118
company sources, 116–117
determining sales prospects,

111–112
importance and challenges of#, 110
information gathering, 120–122
methods, 113
networking, 115–116
objections to, 173–174
personal log, 120
prioritizing sales prospects, 112
sales dialogue preparation, 112
selling situation, 121–122
strategic prospecting process,

110–112
proxemics, 102
psychological attributes, 64
psychological needs, 51, 57
public zone, 102
purchasers, 73
purchasing decisions, 65–68

modi!ed rebuy, 68
new-task, 67–68
straight rebuy, 66–67

purchasing professionals, 52
Pursell, Max, 114

Q
qualifying sales leads, 111
questions/questioning, 179, 182

ADAPT system, 89, 90–96
closed-end, 87
dichotomous, 87
evaluative, 87
for#understanding buyer’s needs, 96
implication, 90
multiple-choice, 87
need-payoff, 90
open-end, 87
probing, 87
problem, 90
reactive, 88–89
situation, 89–90
SPIN system, 89–90
strategic purpose, classi!cation of, 87
tactical, 88
trust-based selling, strategic

application of, 89–90
types, guidelines for combining,

88–89
as verbal communication, 85

R
Rabas, Morgan, 86
rational buying motives, 140
reactive questions, 88–89
referral, 115
relationship enhancers/detractors, 194
relationships, 197
reliability, 28, 133
request for proposal (RFP), 59, 131
resilience, 210
Resistance and Persuasion

(Knowles), 170
response checks, 151
responsiveness, 69–70, 133
revenue producers, salespeople as, 8–9
RFPs. See requests for proposals

(RFPs)
Ricoh, 108–109, 112
role play

adding value, 241
addressing concerns and earning

commitment, 191
at Bat, Inc., 80
building trust and sales ethics, 47
expanding customer relationships,

214–215
at Heartland Technology, 106
interview for sales

representative, 25
at Metro Insurance Services, 106
planning sales dialogues/

presentations, 147
prospecting, 124
sales dialogue, 169
sales dialogues and

presentations, 147
self-leadership, 241
teamwork, 241

Ross Electric, 191

S
Saint-Gobain North America, 84
sales aids

de!ned, 157
electronic materials, 159

explaining, 160–161
presentation, 160
reasons for using, 157
stating selling point, 160
summarizing, 161
types of, 157
usage in presentation, 160
visual materials, 157–158

Sales and Marketing Executives
International (SMEI), 41

Code of Ethics, 41, 42
sales approaches

consultative selling, 14–15
mental states selling, 12
need satisfaction selling, 12–13
problem-solving selling, 13
stimulus response selling, 11–12

sales call, 127
goals, 219, 220
objectives of, 139
preparation for, 136

sales call goal, 220
sales careers, 16–22

advancement opportunities, 17
characteristics of, 16–19
compensation, 18–19
immediate feedback, 17
independence of, 18
job variety, 18
occupational outlook, 17

sales communication. See also
communications

canned sales presentations,
129–130

as collaborative process, 85
formats, 128–135
verbal communication, 85
written sales proposal, 128,

130–131
sales dialogue and presentations,

120, 128
anticipating questions/

objections, 143
canned sales presentations,

129–130
comparisons and analogies,

156–157
competitive situations, 141
contact initiation, 142
customer engagement, 144
customer-focused, 128
customer value, creating, 152–153
customer value proposition,

136–139
de!ned, 6
earning commitment, 143
effectiveness of, 149–150
encouraging buyer feedback,

150–152
examples and anecdotes, 155–156
follow-up action, 143–144
group, 162–167
importance of, 6–7
interesting/understandable,

153–157
linking reinforcement methods,

139–141
organized, 132, 134–135
planning, 129
product claims, supporting,

161–162
product demonstrations, 159–160
sales communication formats,

128–135
start of, 141–142
template, 135–144
trust-based selling process, 134
visual materials, 157–158

voice characteristics, 154–155
written sales proposals, 130–131

sales ethics, 41. See also ethical
dilemmas

deceptive practices, 43
illegal activities, 43
image of salespeople/sales

executives, 41, 43
legal reminders, 44
non-customer-oriented behavior,

43–44
sales executives, image of, 41, 43
Salesforce, 192
salesforce automation (SFA), 122
Salesforce.com, 10
sales funnel, 111
SalesHQ, 22
sales leads/suspects, 111
Sales Management Association, 22
Sales & Marketing Management

(magazine), 22
sales partnerships, 234–235
salespeople

and customers, 10
and diffusion of innovation, 8
as economic stimuli, 8
existing business, 20
as future managers, 10
image of, 41, 43
missionary, 19
new-business, 19–20
noncompeting, 115
quali!cations and skills needed

by, 21–22
as revenue producers, 8, 9
roles of, 8, 9
society and, 8
technical support, 19
unethical behaviors, 41

sales pipeline, 111
sales planning, 224–225
sales presentations, 128. See also

sales dialogue and presentations
sales process, 15–16
sales professionalism, 7
sales proposal

creation of, 131
customer needs and proposed

solution, 132
evaluating, 132
executive summary, 131
seller pro!le, 132
written, 128, 130–131

sales prospect, 111–112
sales resistance

addressing concerns, 173
anticipating and negotiating

concerns, 173
company/source objections,

176–177
de!ned, 173
LAARC, 178–180
need objections, 176
price objections, 177
product/service objections, 177
reasons for objections, 173–174
techniques to answer, 179
time objections, 177–178
types of, 175–178

sales support, 19
SAMA. See Strategic Account

Management Association
(SAMA)

SAP, 219
Schliessman, Gary, 33
Schmidt, Nathan, 32, 33
SCPS. See SMEI Certi!ed

Professional Salesperson (SCPS)

247Index

security, 28
self-leadership, 218–220
Selling Above the Crowd (Anderson),

172
selling technology and automation,

229–233
deal analytics, 232
mobile sales technologies, 230
salesperson customer relationship

management, 230–232
seminars, 117
serious listening, 97
service enthusiasm, 209
service issues, 37
service motivation, 211
service orientation, 22
service quality, 207–208
service strategy, 210
service superiority, 38
Sexton, Koka, 184
SIER model, 98, 99
single-factor analysis, 222–223
situational needs, 51, 55, 56
situation questions, 89–90
Skullcandy headphones, 147
SMEI. See Sales and Marketing

Executives International (SMEI)
SMEI Certi!ed Professional

Salesperson (SCPS), 42
Smith, Joe, 50, 51
social listening, 96, 97
social needs, 51, 56, 57
social networking, 75, 115
social selling, 114
social zone, 102
society, and salespeople, 8
Sparacino, Joseph (Joe), 201
speaking rates, 102
SPIN questioning system, 89–90
standing-room-only close, 188
statistics, 161
Stea IT, 196
stimulus response selling, 11–12
straight-line routing plan, 225, 226
Strategic Account Management

Association (SAMA), 7
strategic orchestrator, 14
strategic prospecting, 110–112

strategic prospecting plan, 119, 120
Strativity Group, Inc., 195
success story commitment, 187
summary commitment, 186–187
suppliers and#products

buyer evaluation procedures to
enhance selling, 62–63

evaluating, 60–64
performance assessment of, 60–61
relative importance of

characteristics, 61–62
selection of, 63

supply chain management, 53
suspects, 111

T
T-account commitment, 187
tactical questions, 88
Talerico, Heather, 49
Tang, Karen, 82–83
tangibles, 133
teamwork, 4

administrative support
partnerships, 235

customer service partnerships,
236–237

design and manufacturing
partnerships, 235

internal partnerships and sales,
233–234

marketing partnerships, 235
sales partnerships, 234–235
shipping and transportation

partnerships, 235
skills for, 237–238

technical support salespeople, 19
technology

deal analytics, 232
Internet/intranets/extranets, 232
mobile sales, 230
salesperson customer relationship

management, 230–232
for selling, 229–233
use of, 196–199

technology knowledge, 40
territory analysis, 221

territory goal, 220
territory routing plans, 225–228

circular routing plans, 228
cloverleaf routing plan, 226,

227–228
leapfrog routing plan, 228, 229
major city routing plan, 228
straight-line routing plan, 225, 226

testimonials, 161–162
third-party reinforcement, 179, 182
time objections, 177–178
tracking system, 119
trade shows, 117
transaction-focused traditional

selling, 5
transition questions, 93, 94
translation method, 179, 181
trial commitments, 185
TriNet, 216
trust

de!ned, 28, 29–30
earning, 31–35
establishing, 26–28
importance of, 30–31

trust-based relationship selling, 5–7
communication, 83, 85
de!ned, 5
need-satisfaction consultative

model, 134–135
process of, 15–16
questioning in, strategic

application, 89–90
transaction-focused traditional

selling vs., 5
Turner, John, 216–217
two-factor model of evaluation,

64, 65

U
UhuruNetwork, 14–15
unethical behaviors, 43, 44
Universal Control Corp., 239–240
University of Central Missouri, 58,

66, 198, 206
USA Financial, 109, 112
users, 72, 73

V
value. See adding value
Vance, Corey, 198, 206
verbal communication

information, 100
listening, 94–96
questioning, 87–96

verbal support, 154
visual materials, 157–158
vocal characteristics

intensity and loudness, 103
pitch/frequency, 103
speaking rates/pause duration,

102
voice characteristics, 154, 155

W
Waits, Gage, 105
Walker, Brian, 48
weighted averages, 60, 61, 62
Wheat, Sean, 31
Why Don’t You Want What I Want

(Mauer), 172
Wilbourn, Mallory, 17
Worth, Jacques, 171
written communications skills, 22
written sales proposal, 128, 130–131
written sales proposals. See sales

proposal

X
Xerox, 9

Y
Young, Andrea, 58, 66

Z
ZoomInfo, 108, 118

248 Index

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1Overview of Personal Selling

Define personal selling and describe its unique charac-
teristics as a marketing communications tool. Personal
selling, an important part of marketing, relies heavily on interper-
sonal interactions between buyers and sellers to initiate, develop,
and enhance customer relationships. The interpersonal communi-
cations dimension sets personal selling apart from other marketing

communications such as advertising and sales promotion. Personal
selling is also distinguished from direct marketing and electronic
marketing in that salespeople are talking with buyers before, dur-
ing, and after the sale. This allows a high degree of immediate
customer feedback, which becomes a strong advantage of!personal
selling over most other forms of marketing communications.

1-1

Distinguish between transaction-focused traditional
selling and trust-based relationship selling, with the
latter focusing on customer value and sales dialogue.
As summarized in Exhibit 1.1, trust-based selling focuses more on
the customer than does transaction-focused selling. The salesper-
son will act as a consultant to the customer in trust-based selling,
whereas transaction-based selling concentrates more on making

sales calls and on closing sales. There is far more emphasis on post-
sales follow-up with relationship selling than with transaction
selling, and salespeople must have a broader range of skills to
practice relationship selling. Rather than pitching products to
customers, trust-based selling focuses on establishing sales
dialogue with customers, and salespeople not only communicate
customer value but also help create and deliver customer value.

1-2

Understand sales professionalism as a key driver in the
continued evolution of personal selling. The business
environment is becoming more complex, competition is inten-
sifying, and buyer expectations are increasing. These factors are
creating more focus on sales professionalism in progressive sales

organizations. Sales professionalism requires truthful, nonmanipula-
tive tactics to satisfy the long-term needs of both the customer and
the selling firm. To improve sales professionalism, salespeople can
embrace high ethical standards, participate in professional organiza-
tions, and work from a continually evolving knowledge base.

1-3

Explain the contributions of personal selling to society,
business firms, and customers. Salespeople contribute
to society by acting as stimuli in the economic process and by
assisting in the di”usion of innovation. They contribute to their

employers by producing revenue, performing research and
feedback activities, and comprising a pool of future managers. They
contribute to customers by providing timely knowledge to assist in
solving problems.

1-4

Discuss five alternative approaches to personal selling.
Alternative approaches to personal selling include stimulus
response, mental states, need satisfaction, problem solving, and
the consultative approach. Stimulus response selling often uses
the same sales presentation for all customers. The mental states
approach prescribes that the salesperson leads the buyer through

stages in the buying process. Need satisfaction selling focuses on
relating benefits of the seller’s products or services to the buyer’s
particular situation. Problem-solving selling extends need satisfac-
tion by concentrating on various alternatives available to the buyer.
Consultative selling focuses on helping customers achieve strategic
goals, not just meeting needs or solving problems.

1-5

personal selling!An important part of
marketing that relies heavily on interper-
sonal interactions between buyers and
sellers to initiate, develop, and enhance
customer relationships. (p. 3)

trust-based relationship selling!A
form of personal selling requiring that
salespeople earn customer trust and that
their selling strategy meets customer needs
and contributes to the creation, communi-
cation, and delivery of customer value. (p. 4)

customer value!The customer’s percep-
tion of what they!get for what they have
to give up, for example, benefits from
buying a product in exchange for money
paid. (p. 6)

sales dialogue!Business conversations
between buyers and!sellers that occur as
salespeople!attempt to initiate, develop,
and enhance customer relationships. Sales
dialogue should be customer-focused and
have a clear purpose. (p. 6)

sales professionalism!A customer-oriented
approach that uses truthful, nonmanipulative
tactics to satisfy the long-term needs of both
the customer and the!selling firm. (p. 7)

economic stimuli!Something that stimu-
lates or incites activity in the economy. (p. 8)

diffusion of innovation!The process
whereby new products, services, and ideas are
distributed to the members of society. (p. 8)

revenue producers!A role fulfilled
by salespeople that brings in revenue or
income to a firm or!company. (p. 8)

adaptive selling!The ability of salespeople
to alter their sales messages and behav-
iors during a sales presentation or as they
encounter di”erent sales situations and
di”erent customers. (p. 11)

stimulus response selling!An approach
to selling where the key idea is that various
stimuli can elicit predictable responses from
customers. Salespeople furnish the stimuli from
a repertoire of words and actions designed to
produce the desired response. (p. 11)

continued affirmation!An example of
stimulus response selling in which a series of
questions or statements furnished by the sales-
person is designed to condition the prospec-
tive buyer to answering “yes” time after time,
until, it is hoped, he or she will be inclined to
say “yes” to the entire sales proposition. (p. 11)

mental states selling!An approach to
personal selling that assumes that the buying
process for most buyers is essentially identical
and that buyers can be led through certain
mental states, or steps, in the buying process;
also called the formula approach. (p. 12)

AIDA!An acronym for the various mental
states the salesperson must lead customers
through when using mental states selling:
attention, interest, desire, and action. (p. 12)

need satisfaction selling!An approach
to selling based on the notion that the
customer is buying to satisfy a particular
need or set of needs. (p. 12)

problem-solving selling!An exten-
sion of need satisfaction selling that goes
beyond identifying needs to developing
alternative solutions for satisfying these
needs. (p. 13)

consultative selling!The process of
helping customers reach their strategic
goals by using the products, services, and
expertise of!the sales organization. (p. 14)

strategic orchestrator!A role the
salesperson plays in consultative selling
where he or she arranges the use of the
sales organization’s resources in an e”ort to
satisfy the customer. (p. 14)

business consultant!A role the salesper-
son plays in consultative selling where he
or she uses internal and external (outside
the sales organization) sources to become
an expert on the customer’s business. This
role also involves educating customers on
the sales firm’s products and how these
products compare with competitive
o”erings. (p. 14)

long-term ally!A role the salesperson
plays in consultative selling where he or
she supports the customer, even when an
immediate sale is not expected. (p. 14)

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Understand the sales process as a series of interre-
lated steps. As presented in the figure below, the sales process
involves initiating, developing, and enhancing customer relation-
ships. Salespeople must possess certain attributes to earn the trust
of their customers and be able to adapt their selling strategies
to di”erent situations. Throughout the sales process, salespeople
should focus on customer value, first by understanding what
customer value is to the customer, then by working to create,
communicate, and continually increase that value. Salespeople

initiate customer relationships through strategic prospecting,
assessing the prospect’s situation, planning value-based sales
dialogue, and activating the buying process. Relationships are then
further developed through engaging prospects in a true dialogue
to earn commitment from those prospects. Salespeople enhance
customer relationships by following up after the sale, taking a lea-
dership role, and sometimes working as part of a team to increase
constantly the value received by the customer. The details of the
sales process are covered in Chapters 5 through 10 in this book.

1-6

Describe several aspects of sales careers, types of
selling jobs, and the key qualifications needed for
sales success. Sales careers o”er relatively good job security
and reasonable opportunities for advancement. Salespeople
get immediate job feedback which makes their jobs stimulat-
ing, challenging, and interesting. On a daily basis, salespeople
are immersed in a dynamic environment with high levels of job
variety, thus boredom is rarely an issue. Sales careers have long
been associated with independence of action, although sales
managers are now monitoring sales activities more closely to

improve sales productivity. Sales compensation is tied closely
to job performance, especially if commissions and bonuses are
part of the pay package. We discuss six types of sales jobs in this
chapter: sales support, new business, existing business, inside
sales (nonretail), direct-to-consumer, and combination sales jobs.
The skills needed for success will depend somewhat on the spe-
cific sales job. Among the most important qualifications for sales
success are communications skills, a service orientation, problem
solving, motivation and taking initiative, dependability, integrity,
and adaptability.

1-7

sales process!A series of interrelated steps beginning with
locating qualified prospective customers. From there, the
salesperson plans the sales presentation, makes an appointment
to see the customer, completes the sale, and performs postsale
activities. (p. 15)

missionary salespeople!A category of sales support personnel
who are not typically involved in the direct solicitation of purchase
orders. Their primary roles are disseminating information, stimulating
the sales e”ort to convert prospects into customers, and reinforcing
customer relationships. (p. 19)

detailer!A category of sales support personnel in the pharma-
ceutical industry working at the physician level to furnish infor-
mation regarding the capabilities and limitations of medications
in an attempt to get the physician to prescribe their product.
(p. 19)

technical support salespeople!Technical specialists who
may assist in the design and specification process, installation of

equipment, training of customer’s employees, and follow-up
technical service. (p. 19)

pioneers!Salespeople who are constantly involved with
either new products, new customers, or both. Their task
requires creative selling and the ability to counter the
resistance to change that will likely be present in prospective
customers. (p. 19)

order-getters!Also called hunters, these salespeople actively
seek orders, usually in a highly competitive environment. (p. 20)

order-takers!Also called farmers, these salespeople specialize in
maintaining current business. (p. 20)

inside sales!Nonretail salespeople who remain in their
employer’s place of business while dealing with customers. (p. 20)

combination sales job!A sales job in which the salesperson
performs multiple types of sales jobs!within the framework of a
single position. (p. 21)

TRUST!BASED SALES PROCESS

Enhancing Customer
Relationships

Building value through
postsale follow-up
Assessing value and
relationship performance
Creating new value
opportunities
Increasing customer value
through self-leadership and
teamwork

Understanding Creating and Delivering and

Customer Communicating Increasing

Value Customer Value Customer Value

Selling Strategy
Based on Customer
Needs and Value

Sales Territory
Each Customer
Each Sales Call

Initiating Customer
Relationships

Strategic prospecting
Assessing the prospect’s
situation
Discovering prospect’s
needs
Planning value-based sales
dialogue and
presentations

Selling Foundations

Trust and Ethics
Understanding
Buyers
Communications
Skills

Developing Customer
Relationships

Engaging prospects and
customers through
sales dialogue and
presentations
Cocreating and
validating customer
value
Earning customer
commitment

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2Building Trust and Sales Ethics
What trust is. Trust is when an industry buyer believes that he
or she can rely on what the salesperson says or promises to do in a
situation where the buyer is dependent on the salesperson’s hon-
esty and reliability. One of the keys to a long-term relationship with
any client is to create a basis of trust between the sales representa-
tive and the client organization.

The “trust” described here is beyond the typical transaction-
oriented trust schema. Many issues—such as, Will the product

arrive as promised? Will the right product actually be in stock and
be shipped on time? Will the invoice contain the agreed-on price?
Can the salesperson be found if something goes wrong?—are only
preliminary concerns. In relationship selling, trust is based on a
larger set of factors due to the expanded intimacy and longer-term
nature of the relationship. The intimacy of this relationship will
result in both parties sharing information that could be damaging
if leaked or used against the other partner.

2-1

expertise!The ability, knowledge,
and !resour es to meet customer expectations.
(p.!31)

contributions!Something given to
improve a situation or state for a buyer. (p.!33)

dependability!Predictability of!a person’s
actions. (p.!33)

predictability!A salesperson’s behavior
that can be foretold on the basis of obser-
vation or experience by a buyer. (p.!33)

candor!Honesty of the spoken word. (p.!33)
customer orientation!The act of sales-
people placing as much emphasis on the
customer’s interests as their own. (p.!33)

compatibility/likeability!A salesper-
son’s commonalities with other individuals.
(p.!35)

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trust!The extent of the buyer’s confidence that he or
she can rely on the salesperson’s integrity. (p.!28)

openness!Completely free from concealment:
exposed to general view or knowledge. (p.!28)

honesty!Fairness and straightforwardness of con-
duct. (p.!28)

confidentiality!The state of being entrusted with
information from a buyer that cannot be shared.
(p.!28)

security!The quality of being free from danger.
(p.!28)

reliability!Consistency of a salesperson over time to do what
is right. (p.!28)

fairness!Impartiality and honesty. (p.!28)

Why trust is important. In today’s increasingly competitive
marketplace, buyers typically find themselves inundated with choices
regarding both products and suppliers. Buyers are demanding unique
solutions to their problems, which are customized on the basis of
their specific needs. This shift toward relationship selling has altered
both the roles played by salespeople and the activities and skills
they exercise in carrying out these roles—the selling process itself.
Today’s more contemporary selling process is embedded within the

relationship marketing paradigm. As such, it emphasizes the initia-
tion and nurturing of long-term buyer–seller relationships based on
mutual trust and value-added benefits. The level of problem-solving
activity common to relationship selling requires deliberate and
purposeful collaboration between both parties. These joint e”orts are
directed at creating unique solutions based on an enhanced knowl-
edge and understanding of the customer’s needs and the supplier’s
capabilities so that both parties derive mutual benefits.

2-2

How to earn trust. Buyers are constantly asking themselves
whether the salesperson truly cares about them. Salespeople
can answer this question for the buyer by demonstrating

trust-building activities. Trust can be earned by demonstrating
expertise, dependability, candor, customer orientation, compe-
tence, and compatibility.

2-3

Trust Builders
Expertise

Customer
Orientation

Dependability

Candor

Compatibility

Trust

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Knowledge bases help build trust and relationships.
Salespeople do not have much time to make a first impression. If
a salesperson can demonstrate expertise in the buyer’s industry,

company, marketplace, competitive knowledge, and so on, then the
buyer will more likely be willing to listen to the salesperson if he or
she brings valued experience to the buyer.

2-4

Sales ethics. Salespeople are constantly involved with ethical
issues. A sales manager might encourage his or her salesforce to
pad their expense account in lieu of a raise. A salesperson might
sell a product or service to a customer that the buyer does not
need. A salesperson might exaggerate the benefits of a product to
get a sale. The list can go on and on. How a salesperson handles
these situations will go a long way in determining the salesperson’s
credibility. One wrong decision can end a salesperson’s career.

Three of the more popular areas of unethical behavior are decep-
tive practices, illegal activities, and non-customer-oriented behavior.

! Deceptive practices: Salespeople giving answers they do not
know, exaggerating product benefits, and withholding infor-
mation may appear only to shade the truth, but when it causes

harm to the buyer, the salesperson has jeopardized future deal-
ings with the buyer.

! Illegal activities: Misusing company assets has been a long-standing
problem for many sales organizations. Using the company car for
personal use, charging expenses that did not occur, and selling
samples for income are examples of misusing company assets.
Some of these violations discovered by company probing also
constitute violations of the Internal Revenue Service (IRS) law and
are o”enses that could lead to jail or heavy fines.

! Non-customer-oriented behavior: Most buyers will not buy
from salespeople who are pushy and practice the hard sell.
Too much is at stake to fall for the fast-talking, high-pressure
salesperson.

2-5

competitor knowledge!Knowledge of
a competitor’s strengths and weaknesses in
the!market. (p.!36)

product knowledge!Detailed infor-
mation on the manufacture of a product
and knowing whether the company has
up-to-date production methods. (p.!37)

service issues!Concerns of the!buyer that
the salesperson should address. (p.!37)

promotion knowledge!Knowledge
tools salespeople must possess to

explain their firms’ promotional pro-
grams. (p.!37)

price knowledge!Knowledge tools
salespeople must have about pricing
policies in order to quote prices and o”er
discounts on products. (p.!37)

market knowledge!Information sales-
people must have!if larger companies break
their customers into distinct markets; sales-
people must be familiar with these markets
to tailor their sales presentations. (p.!38)

customer knowledge!Information
about customers that!is!gathered over
time and from!very di”erent sources that
helps the salesperson determine customer
needs to better serve!them. (p.!38)

technology knowledge!Information
salespeople must have about the latest
technology. (p.!40)

ethics!The right and wrong conduct of
individuals and institutions of which they
are a part. (p.!41)

express warranty!A way a salesperson
can create product liabilities by giving
a product warranty or guarantee that

obligates the selling organization even if
the salesperson does not intend to give the
warranty. (p.!43)

misrepresentation!False claim(s) made
by a salesperson. (p.!43)

negligence!False claim(s) made!by a
salesperson about the product or service
he or she is trying to sell. (p.!43)

basis of the bargain!When a buyer
relies on the seller’s statements in making a
purchase decision. (p.!43)

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3Understanding Buyers
Categorize primary types of buyers. Buyers are classified according to
their unique buying situations that influence their needs, motivations, and
buying behavior. The most common categorization splits buyers into either
consumer markets or business markets. Consumers purchase goods and services

for their own use or consumption, whereas members of the business market
acquire goods and services to use as inputs into manufacturing, for use in the
course of doing business, or for resale. Business markets are further divided into
firms, institutions, and governments.

3-1

Discuss the distinguishing characteristics of business markets.
Among the more common distinguishing characteristics are consolidation,
which has resulted in buyers being fewer in number but larger in size; demand

that is derived from the sale of consumer goods; more volatile demand levels;
professional buyers; multiple buying influences from a team of buyers; and
increased interdependence and relationships between buyers and sellers.

3-2

List the different steps in the business-to-business buying
process. This process begins with (1) recognition of the problem or
need, (2) determination of the characteristics of the item and the quantity
needed, (3) description of the characteristics of the item and quantity

needed, (4) search for and qualification of potential sources, (5) acquisition
and analysis of proposals, (6) evaluation of proposals and selection of
suppliers, (7) selection of an order routine, and (8)!performance feedback
and evaluation.

3-3

Discuss the different types of buyer needs. Salespeople are better able
to generate and demonstrate value-added solutions by understanding di”erent
types of buyer needs. The five general types of buyer needs are described as
follows:

! Situational Needs—Needs that are related to, or possibly the result of, the
buyer’s specific environment, time, and place.

! Functional Needs—The need for a specific core task or function to be per-
formed—the need for a sales o”ering to do what it is supposed to do.

! Social Needs—The need for acceptance from and association with
others—a desire to belong to some reference group.

! Psychological Needs—The desire for feelings of assurance and risk reduc-
tion, as well as positive emotions and feelings such as success, joy, excite-
ment, and stimulation.

! Knowledge Needs—The desire for personal development and need for
information and knowledge to increase thought and understanding as to
how and why things happen.

3-4

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consumer market!A market in which consumers
purchase goods and services for their use or!
consumption. (p.!50)

business market!A market composed of
firms, institutions, and governments who acquire
goods and services to use as inputs into their own

manufacturing process, for use in their day-to-day
operations, or for resale to their own customers.
(p.!50)

Describe how buyers evaluate suppliers and alternative sales
offerings by using the multiattribute model of
evaluation. Using the multiattribute model, buyers establish the attributes
they perceive as important and evaluate the degree to which each of the
specified attributes is present (or how well each performs) in a proposed

solution. Each evaluation is then multiplied by the attribute’s relative level
of importance to calculate a weighted average for each attribute. These
weighted averages are then totaled to derive an overall score for each supplier
or product being compared. The product or supplier having the highest score
is favored for purchase.

3-5

derived demand!Demand in business markets
that is closely associated with the demand for
consumer goods. (p.!52)

acceleration principle!When demand increases
(or decreases) in the consumer market, the business
market reacts by accelerating the buildup (or reduc-
tion) of inventories and increasing (or decreasing)
plant!capacity. (p.!52)

supply chain management!The strategic coor-
dination and integration of purchasing with other
functions within the buying organization as well as
external organizations. (p.!53)

desired states!A state of being based on what
the buyer desires. (p.!53)

actual states!A buyer’s actual state of being.
(p.!53)

needs gap!A perceived di”erence between a
buyer’s desired and actual state of being. (p.!55)

situational needs!The needs that are contingent
on, and often a!result of, conditions related to the
specific environment, time, and!place. (p.!55)

functional needs!The need for a specific core
task or function to be performed. (p.!56)

social needs!The need for acceptance from and
association with others. (p.!56)

psychological needs!The desire for feelings of
assurance and risk reduction, as well as positive emo-
tions and feelings such as success, joy, excitement, and
stimulation. (p.!57)

knowledge needs!The desire for personal devel-
opment, information, and knowledge to increase

thought and understanding as to how and why
things happen. (p.!57)

content marketing!A form of marketing that
involves creating and distributing valuable, relevant, and
consistent content to attract and retain buyers. (p.!59)

requests for proposal (RFP)!A form developed
by firms and distributed to qualified potential
suppliers that helps suppliers develop and submit
proposals to provide products as!specified by the
firm. (p.!59)

multiattribute model!A procedure for evaluating
suppliers and products that incorporates weighted
averages across desired characteristics. (p.!60)

competitive depositioning!Providing informa-
tion to evidence a more accurate picture of a
competitor’s attributes or qualities. (p.!63)

Explain the two-factor model that buyers use to evaluate the
performance of sales offerings and develop satisfaction. The two-
factor model is a special type of multiattribute model in which further analysis
of the multiple characteristics results in two primary groupings of factors:
functional attributes and psychological attributes. Functional attributes are the

more tangible characteristics of a market o”ering, whereas the psychological
attributes are primarily composed of the interpersonal behaviors and activities
between the buyer and seller. The psychological attributes have been repeatedly
found to have higher levels of influence than functional attributes on customer
satisfaction and repeat purchase.

3-6

two-factor model of evaluation!A postpur-
chase evaluation process buyers use that evaluates a
product purchase using functional and psychologi-
cal attributes. (p. 64)

functional attributes!The features and charac-
teristics that are related to what the product actually
does or is expected to do. (p. 64)

must-have attributes!Features of the core prod-
uct that the!customer takes for granted. (p. 64)

psychological attributes!A category of
product characteristics that refers to how things
are carried out and done between the buyer and
seller. (p. 64)

delighter attributes!The augmented features
included in the total market offering that go
beyond buyer’s expectations and have a signifi-
cant positive impact on customer satisfaction.
(p. 64)

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Explain the different types of purchasing decisions.

Straight Rebuy. Comparable with a routine repurchase in which nothing has
changed, the straight rebuy is often the result of past experience and satisfaction
with buyers purchasing the same products from the same sources. Needs have
been predetermined with specifications already established. Buyers allocate
little, if any, time or resources to this form of purchase decision, and the primary
emphasis is on continued satisfactory performance.

Modified Rebuy. The buyer has some level of experience with the product
but is interested in acquiring additional information regarding alternative

products and/or suppliers. The modified rebuy typically occurs as the result of
changing conditions or needs. Perhaps the buyer wishes to consider new suppli-
ers for current purchase needs or new products o”ered by existing suppliers.

New Task. New task decisions occur when a buyer is purchasing a product
or service for the first time. With no experience or knowledge on which to rely,
buyers undertake an extensive purchase decision and search for information
designed to identify and compare alternative solutions. Reflecting the extensive
nature of this type of purchase decision, multiple members of the buying center
or group are usually involved. As a result, the salesperson often works with
several di”erent individuals rather than a single buyer.

3-7

Describe the four communication styles and how salespeople must
adapt and flex their own styles to maximize communication. Based
on high and low levels of two personal traits, assertiveness and responsiveness,
communication styles can be categorized into four primary types:

! Amiables are high on responsiveness and low on assertiveness.
! Expressives are defined as high on both responsiveness and assertiveness.
! Drivers are low on responsiveness but high on assertiveness.
! Analyticals are characterized as low on assertiveness as well as

responsiveness.

Mismatched styles between a seller and a buyer can be dysfunctional in
terms of effective collaboration and present significant barriers for informa-
tion exchange and relationship building. Differences in styles manifest
themselves in the form of differences in preferred priorities (relationships
versus task orientation) and favored pace (fast versus slow) of informa-
tion exchange, socialization, and decision making. To minimize potential
communication difficulties stemming from mismatched styles, salespeople
should flex their personal styles to better fit the preferred priorities and pace
of the buyer.

3-8

straight rebuy decision!A purchase decision
resulting from an ongoing purchasing relationship
with a supplier. (p. 66)

electronic data interchange (EDI)!Transfer of
data electronically between two computer systems.
(p. 67)

new task decision!A purchase decision that
occurs when a buyer is purchasing a product or
service for the first time. (p. 67)

modified rebuy decision!A purchase deci-
sion that occurs when a buyer has experience in
purchasing a product in the past but is interested in

acquiring additional information regarding alterna-
tive products and/or suppliers. (p. 68)

assertiveness!The degree to which a person
holds opinions about issues and attempts to domi-
nate or control situations by directing the thoughts
and actions of others. (p. 69)

responsiveness!The level of feelings and sociability
an individual openly displays. (p. 69)

amiables!Individuals who are high on responsive-
ness, low on assertiveness, prefer to belong to
groups, and are interested in others. (p. 70)

expressives!Individuals who are high on both
responsiveness and assertiveness, are animated,
communicative, and value building close relation-
ships with others. (p. 70)

drivers!Individuals who are low on responsiveness,
high on assertiveness and detached from relation-
ships. (p. 71)

analyticals!Individuals who are low on responsive-
ness and assertiveness, analytical and meticulous,
and disciplined in everything they do. (p. 71)

Explain the concept of buying teams and specify the differ-
ent member roles. In the more complex modified rebuy and new task
purchasing situations, purchase decisions typically involve the joint decisions of
multiple participants working together as a buying team. Team members bring

the expertise and knowledge from di”erent functional departments within the
buying organization. Team members may also change as the purchase decision
changes. Team members are described by their roles within the team: initiators,
influencers, users, deciders, purchasers, and gatekeepers.

3-9

Understand means for engaging customers. To ensure that today’s
customers are fully engaged, selling organizations are focusing on the customer
experience, turning to information technology, providing buyers with timely

and relevant information, and adding value to buyer–seller relationships through
various means.3-10

buying teams!Teams of individuals in organiza-
tions that!incorporate the expertise and!multiple
buying influences of!people from di”erent depart-
ments throughout the organization. (p. 72)

initiators!Individuals within an organization who
identify a need. (p. 72)

influencers!Individuals within an organization
who guide the decision process by making recom-
mendations and expressing preferences. (p. 72)

users!Individuals within an organization who will
actually use the product being purchased. (p. 72)

deciders!Individuals within an organization who
have the ultimate responsibility of determining
which product or service will be purchased. (p. 72)

purchasers!Organizational members who negoti-
ate final terms of the purchase and execute the
actual purchase. (p. 73)

gatekeepers!Members of an organization who
are in the position to control the flow of information
to and between vendors and other buying center
members. (p. 73)

outsourcing!The process of giving to a supplier
certain activities that were previously performed by
the buying organization. (p. 77)

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4Communication Skills
Explain the importance of collaborative, two-way communi-
cation in trust-based selling. The two-way exchange inherent in
collaborative communication facilitates accurate and mutual understand-
ing of the objectives, problems, needs, and capabilities of each of the
parties. As a result, solutions can be generated that provide mutual benefits

to all participants. This would not be possible without collaboration, and
one party would benefit at the expense of the other. Although this might
be good for the “winning” party, the disadvantaged party would be less
inclined to continue doing business and would seek out other business
partners.

4-1

Explain the primary types of questions and how they are applied
in selling. Questions can be grouped into two categories according to (1) the
amount of information and specificity desired and (2) the strategic purpose of
the question.

! Questions typed by the amount of information and specificity desired
include open-end questions, closed-end questions, and dichotomous
questions. Open-end questions encourage the customer to respond
freely!and provide more expansive information. They are used to probe
for descriptive information. Closed-end questions limit responses to one!or

two words and are used to confirm or clarify information. Dichotomous
questions request the buyer to choose between specified alternatives.

! Questions t yped by their strategic purpose include questions for
(1) probing, (2) evaluative, (3) tactical, and (4) reactive purposes.
Probing questions penetrate beneath sur face information to provide
more useful details. Evaluative questions uncover how the buyer feels
about something. Tactical questions are used to shif t the topic of
discussion. Reactive questions respond to information provided by the
other par t y and ask for additional details about that information.

4-2

llustrate the diverse roles and uses of strategic questioning in
trust-based selling. Questions are used to elicit detailed information about
a buyer’s situation, needs, and expectations while also providing a logical guide
promoting sequential thought. E”ective questioning facilitates both the buyer’s

and seller’s understanding of a problem and proposed solutions. Questioning
can also test the buyer’s interest and increase his or her cognitive involvement
and participation in the selling process. Questions can also be used to redirect,
regain, or hold the buyer’s attention subtly and strategically.

4-3

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laborative and two-way form of communication
that allows buyers and sellers to develop a better
understanding of the need situation and work
together to co-create the best response for resolving
the!customer’s needs. (p. 83)

open-end questions!Questions designed to let the
customer respond freely; the customer is not limited
to one-!or two-word answers but is!encouraged to
disclose personal!and/or business information. (p. 87)

closed-end questions!Questions designed to
limit the customer’s responses to one or two!words.
(p. 87)

dichotomous questions!A directive form of
questioning; these questions ask the customer to
choose from two or more options. (p. 87)

probing questions!Questions designed
to penetrate below generalized or superficial
information to elicit more articulate and precise
details for use in needs discovery and solution
identification. (p. 87)

evaluative questions!Questions that use the open
and closed-end question formats to gain confirmation
and to uncover attitudes, opinions, and preferences the
prospect holds. (p. 87)

tactical questions!Questions used to shift or
redirect the topic of discussion when the discussion
gets o” course or when a line of questioning proves
to be of little interest or value. (p.88)

reactive questions!Questions that refer to or
directly result from information the other party
previously provided. (p. 88)

SPIN!A questioning system!that sequences four
types of questions designed to uncover a buyer’s
current situation and inherent problems, enhance
the buyer’s understanding of the!consequences
and implications of those problems, and lead to the
proposed solution. (p. 89)

situation questions!One of the four types of
questions in the SPIN questioning system used!early
in the sales call that provides salespeople with leads
to develop the buyer’s needs and!expectations fully.
(p. 89)

problem questions!One of the four types of
questions in the SPIN questioning system that fol-
lows the more general situation questions to further
probe for specific di#culties, developing problems,
and areas of dissatisfaction that might be positively
addressed by the salesperson’s proposed sales
o”ering. (p. 90)

implication questions!One of the four types
of questions in the SPIN questioning system that
follows and relates to the information flowing from
problem questions; they are used to assist the buyer

in thinking about the potential consequences of the
problem and understanding the urgency of resolv-
ing the problem in!a way that motivates him or her
to!seek a solution. (p. 90)

need-payoff questions!One of the four types
of questions in the SPIN questioning system that
is based on the implications of a problem; they are
used to propose a solution and develop commit-
ment from the buyer. (p. 90)

Identify and describe the five steps of the ADAPT questioning
sequence for effective fact-finding and needs discovery. The five
steps are assessment questions, discovery questions, activation questions,
projection questions, and transition questions.

! Assessment Questions are broad, general, nonthreatening questions
designed to spark conversation. Assessment questions elicit factual infor-
mation about the customer’s current situation that can provide a basis for
further exploration and probing.

! Discovery Questions probe for details needed to identify and understand
a buyer’s problems and needs. The buyer’s interpretations, perceptions,
feelings, and opinions are sought in regard to his or her needs, wants, dis-
satisfactions, and expectations.

! Activation Questions help the customer evaluate the negative impact of an
implied need. The objective is to “activate” interest in solving discovered
problems by helping the customer gain insight into the true consequences
of the problem.

! Projection Questions encourage the buyer’s decision making by “projecting”
what it would be like if the problems or needs did not exist. They switch
the focus from problems to benefits—the payo” for taking action and
investing in a solution—and allow the buyer to establish the perceived
value of solving the problem or need.

! Transition Questions smooth the transition to a subsequent phase in the
selling process. They are typically closed end and evaluative in format and
strive to confirm the buyer’s desire to seek a solution and move forward with
the buying/selling process.

4-4

ADAPT!A questioning system that uses a logic-
based funneling sequence of questions, beginning
with broad and generalized inquiries designed to
identify and assess the buyer’s situation. (p. 90)

assessment questions!One of the five stages
of questions in the ADAPT questioning system that
do not seek conclusions but rather should address
the buyer’s!company and operations, goals and

objectives, market trends and customers, current
suppliers, and even the buyer as an individual. (p. 90)

discovery questions!One of the five stages of
questions in the ADAPT questioning system that fol-
lows up on the assessment questions; they should
drill down and probe for further details needed to
develop, clarify, and understand the nature of the
buyer’s problems fully. (p. 92)

activation questions!One of the five stages of
questions in the ADAPT questioning system used
to “activate” the customer’s interest in solving
discovered problems by helping him or her gain
insight into the true ramifications of the problem
and to realize that what might initially seem to be
of little consequence is, in fact, of significant
consequence. (p. 92)

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projection questions!One of the five stages of
questions in the ADAPT questioning system used
to!encourage and facilitate the buyer!in “projecting”
what it would be!like without the problems that

have been previously “discovered” and!“activated.”
(p. 93)

transition questions!One of the five stages
of questions in the ADAPT questioning system

used to smooth the transition from needs
discover y into the presentation and demonstra-
tion of the proposed solution’s features and
benefits. (p. 93)

Discuss the four sequential steps for effective active listening.
! Sensing is the first activity in active listening and involves receiving the message.

Sensing is more than just hearing the message and requires concentration
and!practice.

! Interpreting. After sensing the message, it must be interpreted in terms
of what the sender actually meant. In addition to meanings of words and
symbols, the experiences, knowledge, and attitudes of the sender should
also be considered.

! Evaluating. E”ective communication requires the receiver to decide
whether or not he or she agrees with the sender’s message. This requires
evaluating the results from the interpretation stage to sort fact from
opinion and emotion.

! Responding. Collaborative communication requires listeners to provide
feedback to the other party. Responses take the form of paraphrasing
the sender’s message, answering questions, or asking questions to gain
additional details and clarification.

4-5

social listening!An informal mode of listening that can be asso-
ciated with day-to-day conversation and entertainment. (p. 96)

serious listening!A form of listening that is associated with
events!or topics in which it is important to sort through, interpret,
understand, and respond to received messages. (p. 97)

active listening!The cognitive process of actively sensing, inter-
preting, evaluating, and responding to the verbal and nonverbal
messages of current or potential customers. (p. 97)

SIER!A model that depicts active listening as a hierarchical,
four-step sequence of sensing, interpreting, evaluating, and
responding. (p. 98)

Discuss the superiority of pictures over words for explaining con-
cepts and enhancing comprehension. Pictures are more memorable
than words. Using descriptive words to “draw” mental pictures can enhance
understanding as they are more easily recalled than abstract words and symbols.
Understanding and recall can be aided by providing illustrative analogies or

stories to emphasize a key point and bring it alive in the buyer’s mind. Rather
than abstract words that convey only a broad general understanding, utilize
words and phrases that convey concrete and detailed meaning. Concrete
expressions provide the receiver with greater information and are less likely to be
misunderstood than their abstract counterparts.

4-6

Describe the different forms of nonverbal communication.
Nonverbal behaviors are made up of the various movements and utterances
that people use. These can be conscious or unconscious and include eye move-
ment and facial expressions; placement and movements of hands, arms, head,
and legs as well as body orientation; the amount of space maintained between

individuals; and variations in vocal characteristics. Sensing and interpreting
groups or clusters of nonverbal cues can provide a reliable indicator of the
underlying message and intent. Evidence shows that nonverbal behaviors carry
50 percent or more of the meaning conveyed in the process of interpersonal
communication.

4-7

nonverbal communication!The conscious and
unconscious reactions, movements, and utterances
that people use in addition to the words and sym-
bols associated with language. (p. 101)

proxemics!The personal distance that individu-
als prefer to keep between themselves and other
individuals; an important element of nonverbal
communication. (p. 102)

nonverbal clusters!Groups of related nonverbal
expressions, gestures, and movements that can be
interpreted to better understand the true message
being communicated. (p. 103)

SIER HIERARCHY OF ACTIVE LISTENING

Re-
sponding

Evaluating

Interpreting

Sensing

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5Strategic Prospecting and Preparing for Sales Dialogue
Discuss why prospecting is an important and challeng-
ing task for salespeople. Prospecting is important because
market changes could cause current customers to buy less, customers
could go out of business or be acquired by other firms, or business
could be lost to competitors. Salespeople often fear rejection, and

prospective buyers may be di#cult to contact because they have
never heard of a salesperson’s firm, do not have the time to spend
with all potential new suppliers, and are somewhat shielded by
gatekeepers trained to limit access, and are not relying on salespeople
to provide information early in their buying process.

5-1

Explain strategic prospecting and each stage in the
strategic prospecting process. Strategic prospecting is
a process to identify the best sales opportunities. The strategic

prospecting process consists of generating sales leads, determining
sales prospects, prioritizing sales prospects, and preparing for sales
dialogue

5-2

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strategic prospecting!A process
designed to identify, qualify, and prioritize

sales opportunities, whether they represent
potential new customers or opportunities

to generate additional business from exist-
ing customers. (p. 110)

sales funnel or pipeline!A representa-
tion of the trust-based sales process and
strategic sales prospecting process in the
form of!a!funnel. (p. 111)

sales leads or suspects!Organizations
or individuals who might possibly purchase
the product or service a salesperson o”ers.
(p. 111)

qualifying sales leads!The salesper-
son’s act of searching out, collecting, and
analyzing information to determine the
likelihood of the lead being a good!can-
didate for making a sale. (p. 111)

sales prospect!An individual or!orga-
nization that has a need for the product
or service, has the budget or financial

resources to purchase the product or
service, and has the authority to make
the purchase decision. (p. 112)

ideal customer profile!The characteris-
tics of a firm’s best!customers or the perfect
customer. (p. 112)

SALES FUNNEL
Generating Sales Leads

Determining Sales Prospects

Prioritizing Sales Prospects

Preparing for Sales Dialogue

Remaining Stages in
the Trust-Based Sales Process

Qualifying Sales Leads

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Describe the major prospecting methods and give
examples of each method. Salespeople should use di”erent
prospecting methods. The major prospecting methods are cold can-
vassing (cold calling, referrals, and introductions), networking (centers

of influence, noncompeting salespeople, and social selling and social
media), company sources (company records, advertising inquiries,
telephone inquiries, trade shows, and seminars), and commercial
sources (directories and lead management services).

5-3

social selling!Leveraging social media to
identify, understand, engage, and network
with prospects to develop relationships (p. 114)

cold calling!Contacting a sales!lead
unannounced and with little or!no informa-
tion about the!lead. (p. 114)

referral!A name of a company or!person
given to the salesperson as a lead by a
customer or even a!prospect who did not
buy at this!time. (p. 115)

introduction!A variation of a refer-
ral where, in addition to requesting the
names of prospects,!the salesperson asks
the!prospect or customer to prepare!a note
or letter of introduction that can be sent to
the!potential customer. (p. 115)

centers of influence!Well-known and
influential people who can help a salesper-
son prospect and!gain leads. (p. 115)

noncompeting salespeople!A salesper-
son selling noncompeting products. (p. 115)

company records!Information about
customers in a company database. (p. 117)

advertising inquiries!Sales leads gener-
ated from company advertising e”orts. (p. 117)

inbound telemarketing!A source of
locating prospects whereby the prospect
calls the company to get information. (p. 117)

outbound telemarketing!A source of
locating prospects whereby the salesperson
contacts the prospect by telephone. (p. 117)

trade shows!Events where companies
purchase space and set up booths that
clearly identify each company and its o”er-
ings and that are sta”ed with salespeople
who demonstrate the products and answer
questions. (p. 117)

seminars!A presentation salespeople give
to generate leads and provide information
to prospective customers who are invited to
the seminar by direct mail, word of mouth, or
advertising on local television or radio. (p. 117)

directories!Electronic or print!sources
that provide contact and other informa-
tion about many!di”erent companies or
individuals. (p. 117)

lead management services!Lists of
targeted businesses or individuals with
detailed contact and other information,
as well as!e-mail, direct mail, telephone,
and!Web-based marketing services!to con-
nect with targeted!leads. (p. 118)

strategic prospecting plan!A salesper-
son’s plan for gathering qualified prospects.
(p. 119)

tracking system!Part of the!strategic
prospecting plan that!records compre-
hensive information about the prospect,
traces the prospecting methods used, and
chronologically archives outcomes from
any!contacts with the prospect. (p. 119)

Explain the important components of a strategic
prospecting plan. A strategic prospecting plan consists of setting
specific goals for the numbers of prospects to be identified, a regular

schedule for prospecting activities, a tracking system to keep records
of prospecting activities, an evaluation system to assess prospecting
progress, and a positive and confident attitude.

5-4

Discuss the types of information salespeople need
to prepare for sales dialogue. Salespeople must gather
information about the prospect that will be used to help formulate
the sales presentation. Buyer’s needs, buyer’s motives, and details

about the buyer’s situation should be determined. The more
a salesperson knows about the buyer, the better chance he or
she will have to meet the buyer’s needs and eventually earn the
commitment.

5-5

PROSPECTING PLANS ARE THE FOUNDATION FOR EFFECTIVE PROSPECTING

SET GOALS:
Establish daily,

weekly, and
monthly quotas

for acquiring new
prospects.

ALLOCATE TIME:
Establish a regular
daily schedule for
conducting prospecting
activities.

KEEP
RECORDS:
Track your results

prospecting methods.

STAY POSITIVE:

knowing your products
and believing that

best solutions.

EVALUATE:
What is working for

you? Compare results
and use the methods

that work best for you.

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6Planning Sales Dialogues and Presentations
Explain why it is essential to focus on the customer
when planning sales calls. Buyers are well informed and have
little time to waste on unproductive conversations with salespeople.
To optimize the time spent on sales calls, salespeople should focus on

customer needs and how the customer defines value. Customers dif-
fer in how they define value, and salespeople must understand each
customer’s concept of value so that they can establish sales dialogues
that are clear, credible, and!interesting.

6-1

Understand alternative ways of communicating
with prospects and customers through canned sales
presentations, written sales proposals, and orga-
nized sales dialogues and presentations. Canned sales
presentations include scripted sales calls, memorized presentations,
and automated presentations. E”ective canned presentations have
usually been tested with real customers before an entire salesforce
uses them. Canned sales presentations can be complete and logically
structured. Objections are anticipated in advance, and appropriate
responses can be formulated as part of the presentation. A written

sales proposal is a complete, self-contained sales presentation. A
sales proposal should be prepared after the salesperson has made
a thorough assessment of the buyer’s situation as it relates to the
seller’s o”ering. An organized sales dialogue, which could include
a comprehensive sales presentation, is tailored to the prospect’s
particular situation and needs. It is a flexible format that allows for
maximum input and feedback from the prospect. Sales dialogues
and organized sales presentations (sometimes referred to as sales
conversations) can take place over multiple sales calls before a
purchase decision is made.

6-2

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sales call!An in-person meeting between a salesperson or
sales team and one or more buyers to discuss business.
(p. 127)

sales dialogue!Business conversations between buyers and
sellers that occur as salespeople attempt to initiate, develop,

and enhance customer relationships. Sales dialogue should be
customer-focused and have a clear purpose. (p. 128)

sales presentations!Comprehensive communications that
convey multiple points designed to persuade the customer to
make a purchase. (p. 128)

canned sales presentations!Sales presentations that include
scripted sales calls, memorized presentations, and automated
presentations. (p. 129)

written sales proposals!A complete self-contained sales
presentation on paper, often accompanied by other verbal sales
presentations before or after the proposal is delivered. (p. 130)

organized sales dialogue!Also known as the organized
sales presentation. Unlike a canned sales presentation, an

organized sales dialogue has a high level of customer involve-
ment. (p. 132)

organized sales presentation!A sales presentation that
allows a salesperson to implement appropriate sales strate-
gies and tactics based on customer research or information
gathered during previous sales calls. Organized sales presenta-
tions feature a two-way dialogue with a high level of customer
involvement. (p. 132)

Discuss the nine components in the Sales Dialogue
Template that can be used for planning an organized
sales dialogue or presentation. The Sales Dialogue Template
consists of nine sections: (1) prospect information; (2) customer value
proposition; (3) sales call objective; (4) situation and needs analysis—
linking buying motives, benefits, support information, and other

reinforcement methods; (5) competitive situation; (6) beginning the
sales dialogue; (7) anticipate questions and objections; (8) earn pros-
pect commitment; and (9) building value through follow-up action.
This template should not be used to develop a rigid script for a sales
call. It is properly used to help the salespeople ensure that they are
prepared to discuss all pertinent content with the customer.

6-3

sales dialogue template!A flexible planning tool that assists
the salesperson in assembling pertinent information to be covered
with the prospect. (p. 135)

customer value proposition!A statement of how the sales
o”ering will add value to the prospect’s business by meeting a
need or providing an opportunity. (p. 136)

buying motive!A need-activated drive to search for and acquire a
solution to resolve a need or problem; the most important factors from
the customer’s perspective in making a purchase decision. (p. 140)

rational buying motives!Typically relate to the economics of
the situation, including cost, profitability, quality, services o”ered,

and the total value of the seller’s o”ering as perceived by the
customer. (p. 140)

emotional buying motives!Includes motives such as security,
status, and need to be liked; sometimes di#cult for salespeople to
uncover these motives. (p. 140)

features!A quality or characteristic of a product or service that is
designed to provide value to a buyer. (p. 140)

benefits!The added value or favorable outcome derived from
features of the product or service the seller o”ers. (p. 140)

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Explain how to write a customer value proposition
statement. A customer value statement should be simple so that
it provides a clear direction for upcoming sales dialogues. Salespeople
should not attempt to include all of their benefits in a value proposition
statement—rather, they should choose the key benefit(s) that are likely
to be most important to the specific customer. The value proposition
should be as specific as possible on listing tangible outcomes such as

revenue improvement, cost containment or reduction gain in market
share, process speed and e#ciency, or the enhancement of a cus-
tomer’s strategic priority. Value proposition statements should promise
only what can be consistently delivered. Strictly speaking, a customer
value proposition in the planning stage is not a guarantee; it is a belief
based on the salesperson’s knowledge and best judgment. As the sales
process moves along, appropriate guarantees can be made.

6-4

Link buying motives to benefits of the seller’s offer-
ing, support claims made for benefits, and reinforce
verbal claims made. Organized sales dialogues and presenta-
tions should focus on the most important motives for a given buyer.
Benefits must be linked to both rational and emotional motives,

and supporting information must be given for each claim made
of a benefit. In some cases, the claim needs support beyond the
spoken word (e.g., through audio-visual content, printed collateral
material, third-party research studies, or testimonials from satisfied
customers).

6-5

Engage the customer by setting appointments.
Salespeople customarily set an appointment, at least for their initial
sales calls on new prospects. Appointments may be arranged by
telephone, e-mail, or a combination of phone and mail and should

include a request for a specific time and date as well as the amount
of time being requested for the sales call. Salespeople have a better
chance of securing an appointment if they are prepared to give the
customer a good reason for spending time with them.

6-6

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7Sales Dialogue: Creating and Communicating Value
Describe the key charac teristics of effective sales
dialogue. The most e”ective sales dialogues are planned and
practiced by salespeople, encourage buyer feedback, focus on
creating value for the buyer, present value in an interesting and
understandable manner, engage and involve the buyer, and!support
customer value through objective claims.

7-1

Explain how salespeople can generate feedback
from buyers. Salespeople can generate feedback from
buyers by paying attention to nonverbal cues from the buyer

and using check-backs or response-checks to get the buyer to
respond to what the salesperson has said throughout the sales
dialogue.

7-2

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check-backs or response checks!Questions salespeople use
throughout a sales dialogue to generate feedback from the buyer.
(p. 151)

confirmed benefits!The benefits the buyer indicates are
important and represent value. (p. 152)

verbal support!The use of voice characteristics, examples and
anecdotes, and comparisons and analogies to make sales dialogue
interesting and understandable. (p. 154)

voice characteristics!The pitch and speed of speech, which
salespeople should vary to emphasize key points. (p. 154)

examples!A brief description of a specific instance used to
illustrate features and benefits of a product. (p. 155)

anecdote!A type of example that is provided in the form of a
story describing a specific incident or occurrence. (p. 156)

comparison!A statement that points out and illustrates the
similarities between two points. (p. 156)

analogy!A special and useful form of comparison that explains
one thing in terms of another. (p. 156)

Discuss how salespeople use confirmed benefits to
create customer value. Salespeople can use the ADAPT
or SPIN questioning process to interact with the buyer and

determine what the buyer considers to be value. The salesperson
then focuses on these confirmed benefits during the remainder
of!a!sales dialogue.

7-3

Describe how verbal support can be used to communi-
cate value in an interesting and understandable
manner. Salespeople need to communicate value in an

interesting and understandable manner. This can be accomplished
by varying the pitch and speed of speech, using examples and
anecdotes, and including comparisons and analogies.

7-4

Salespeople must diagnose customer problems
before prescribing solutions.

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Discuss how sales aids can engage and involve
buyers. Sales aids are various tools salespeople can use to
engage and involve buyers, as well as generate interest and atten-
tion, and be more persuasive. Visual materials, electronic materials,
and product demonstrations are the major categories of sales aids.

It is important for salespeople to select the appropriate sales aids,
but also to use them e”ectively. The SPES Sequence of stating the
selling point and introducing the sales aid, presenting the sales aid,
explaining the sales aid, and summarizing can help salespeople
use sales aids successfully.

7-5

Explain how salespeople can support product claims.
Salespeople need to be able to support the claims they make con-
cerning their products. Proof providers, such as statistics, testimonials,

and case histories, represent the major approaches for supporting
product claims.7-6

Discuss the special considerations involved in
sales dialogue with groups. Sales dialogues with
individual buyers and with groups have many similarities, but
several important differences. Salespeople interacting with a

group of buyers need to address their arrival tactics, how to
handle questions, the proper use of eye contact, and how to
communicate most effectively to the group and individuals
within the group.

7-7

sales aids!The use of printed materials, electronic materials, and
product demonstrations to engage and involve buyers. (p. 157)

visual materials!Printed materials, photographs and illustra-
tions, and charts and graphs used as sales aids. (p. 157)

electronic materials!Sales aids in electronic format such as
slides, videos, or multimedia presentations. (p. 159)

proof providers!The use of statistics, testimonials, or case histo-
ries to support product claims. (p. 161)

statistics!Facts that lend believability to product claims and are
used as proof providers. (p. 161)

testimonials!Proof providers that are in the form of statements from
satisfied users of the selling organization’s products and services. (p. 161)

case histories!A testimonial in story or anecdotal form used as a
proof provider. (p. 162)

preselling!Salespeople present their product/service to indi-
vidual buyers before a major sales dialogue with a group
of buyers. (p. 163)

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8Addressing Concerns and Earning Commitment
Explain why it is important to anticipate and overcome
buyer concerns and resistance. During the early years of
selling, salespeople looked at sales resistance as a negative that
was a likely indication that their buyer was not going to buy.
This notion has changed over the years, and now objections

are viewed as opportunities to sell. Salespeople should be
grateful for objections and always treat them as indications
that the prospect needs more information, and if the salesper-
son provides the correct information, they are moving closer to
gaining the sale.

8-1

Understand why prospects raise objections. Some
prospects are happy with their present suppliers and want to
avoid the sales interview. In other instances, the salesperson
has failed to qualify the prospect properly. A prospect who has

recently purchased a product is probably not in the market for
another. Sometimes, prospects simply lack information on the
salesperson’s product category, and they are uncomfortable
making a decision.

8-2

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Describe the five major types of sales resistance.
Typically, objections include: “I don’t need your product,” “Your

product is not a good fit,” “I don’t know your company,” “Your price
is too high,” and “This is a bad time to buy.8-3

sales resistance!Buyer’s objections to a product or
service during a sales presentation. (p. 173)

need objection!Resistance to a product/service in
which a buyer says that he or she does not need the
product/service. (p. 176)

product or service objection!Resistance to a
product/service in which a buyer does not like the
way the product/service looks or feels. (p. 176)

company or source objection!Resistance to a
product/service that results when a buyer has never
heard of or is not familiar with the product’s company.
(p. 177)

price objection!Resistance to a product/service
based on the price of the product being too high
for the buyer. (p. 177)

time objection!Resistance to a product/service in
which a buyer puts o” the decision to buy until a later
date. (p. 177)

Explain how the LAARC method can be used to
overcome buyer resistance. LAARC allows the salesperson
to listen carefully to what the buyer is saying. It allows the sales-
person to better understand the buyer’s objections. After this

careful analysis, the salesperson can then respond. The buyer
feels the salesperson is responding to his or her specific concern
rather than giving a prepared answer.

8-4

Describe the recommended approaches for
responding to buyer objections. Salespeople have a
number of traditional techniques at their disposal to handle
resistance. Some of the more popular techniques include fore-
stalling, or answering the objection before the prospect brings
it up; direct denial; indirect denial, which softens the answer;

translation or boomerang, which means to turn a reason not
to buy into a reason to buy; compensation, or offsetting the
objection with superior benefits; questions, which are used to
uncover the buyer’s concerns; and third-party reinforcements,
which use the opinion or research of others to substantiate
claims.

8-5

LAARC!An acronym for listen, acknowl-
edge, assess, respond, and confirm
that describes an e”ective process for
salespeople to follow to overcome sales
resistance. (p. 178)

forestalling!A response to buyer objec-
tions in which the salesperson answers the
objection during the presentation before
the buyer has a chance to ask it. (p. 180)

direct denial!A response to buyer objec-
tions in which the salesperson tells the
customer that he or she is wrong. (p. 180)

indirect denial!A response to buyer objec-
tions in which the salesperson takes a softer
more tactful approach when correcting a
prospect or customer’s information. (p. 181)

translation!or boomerang A response
to buyer objections in which the salesper-
son converts the objection into a reason
the prospect should buy. (p. 181)

compensation!A response to buyer
objections in which the salesperson coun-
terbalances the objection with an o”setting
benefit. (p. 182)

questions or assess!A response to
buyer objections in which the salesperson
asks the buyer assessment questions to
gain a better understanding of what they
are objecting to. (p. 182)

third-party reinforcement!A response
to buyer objections in which the sales-
person uses the opinion or data from a
third-party source to help overcome the
objection and reinforce the salesperson’s
points. (p. 182)

Secretaries, assistants, receptionists, and even
voicemail can block access to your prospect; they can
be the gatekeepers.

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commitment signals!Favorable
statements a buyer makes during a sales
presentation that signal buyer commit-
ment. (p. 184)

trial commitment!An earning com-
mitment technique that determines the
attitude of your buyer toward a particular
feature or benefit. (p. 185)

direct commitment!A selling technique
in which the salesperson asks the customer
directly to buy.(p. 186)

alternative/legitimate choice!A
selling technique in which the salesper-
son asks the prospect to select from two
or more choices during a sales presenta-
tion. (p. 186)

summary commitment!A selling tech-
nique in which the salesperson summarizes

all the major benefits the buyer has
confirmed over the course of the sales
calls. (p. 187)

T-account or balance sheet com-
mitment!A selling technique in which a
salesperson asks the prospect to brainstorm
reasons on paper of why to buy and why
not to buy. (p. 187)

success story commitment!A selling
technique in which a salesperson relates
how one of his or her customers had a
problem similar to the prospect’s and
solved it by using the sales person’s
product. (p. 187)

standing-room-only close!A sales
closing technique in which the salesperson
puts a time limit on the client in an attempt
to hurry the decision to close. (p. 188)

assumptive close!A sales closing tech-
nique in which the salesperson assumes
that an agreement has been reached and
places the order form in front of the buyer
and hands him or her a pen. (p. 188)

fear or emotional close!A sales closing
technique in which the salesperson tells
a story of something unfavorable if the
purchase is not made. (p. 188)

continuous yes close!A sales closing
technique that uses the principle that say-
ing yes gets to be a habit; the salesperson
asks a number of questions formulated so
that the prospect answers yes. (p. 188)

minor-points close!A sales closing
technique in which the salesperson seeks
agreement on relatively minor issues asso-
ciated with the full order. (p. 188)

8 Addressing Concerns and Earning Commitment
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List and explain the earning commitment techniques
that enhance secure commitment and closing. Many
techniques can be used to earn commitment. Most are
gimmicky in nature and reinforce the notion of traditional

selling. Successful relationship-building techniques include
the summar y commitment, the success stor y commitment,
and the direct commitment or ask for!the order.

8-6

Exhibit 8.2

Types of Objections

No Need Buyer has recently purchased or does not see a need
for the product category.
“I am not interested at this time.”

Product or Service
Objection

Company Objection Buyer is intensely loyal to the current supplier.
“I am happy with my present supplier.”

Price Is Too High Buyer has a limited budget.
“We have been buying from another supplier that
meets our budget constraints.”

Time/Delaying Buyer needs time to think it over.
“Get back with me in a couple of weeks.”

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9Expanding Customer Relationships
Explain how to follow-up to assess customer satisfac-
tion. Salespeople cannot be afraid to ask their customers, “How are
we doing?” Periodic follow-up is critical to long-term sales success.
New customers generally feel special because they have received a
lot of attention from the salesperson. Long-standing customers may

feel neglected because the sales rep has many new customers and
cannot be as attentive as he or she was previously. Routine follow-up
to assess “How are we doing?” can go a long way in letting a customer
know that the salesperson cares and is willing to make sure that he or
she is satisfied.

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critical encounters!Meetings in which
the salesperson encourages the buyer to

discuss tough issues, especially in areas
where the salesperson’s organization is

providing less-than-satisfactory
performance. (p. 204)

building goodwill!The process of convert-
ing new customers into lifetime customers
by continually adding value to the product.
(p. 194)

adding value!The process of improving a
product or service for the customer. (p. 194)

interact!The salesperson acts to maximize
the number of critical encounters with buy-
ers in order to encourage e”ective dialogue
and involvement between the salesperson
and the buyer. (p. 197)

connect!The salesperson maintains
contact with the multiple individuals in the
buying!organization influencing purchase
decisions and manages the various touch
points the customer has in the selling

organization to ensure consistency in
communication. (p. 197)

know!The salesperson coordinates and
interprets the information gathered
through buyer–seller contact and col-
laboration to develop insight regarding
the buyer’s changing situation, needs, and
expectations. (p. 197)

relate!The salesperson applies relevant
understanding and insight to create value-
added interactions and generate relation-
ships between the salesperson and buyer.
(p. 197)

intranet!An organization’s dedicated
and proprietary computer network o”er-
ing password-controlled access to people

within and outside the organization
(e.g., customers and suppliers).
(p. 197)

extranet!Proprietary computer networks
created by an organization for use by the
organization’s customers or suppliers and
linked to the organization’s internal sys-
tems, informational databases, and intranet.
(p. 197)

customer relationship manage-
ment (CRM) system!A system that
dynamically links buyers and sellers into a
rich communication network to establish
and reinforce long-term, profitable relation-
ships. (p. 198)

Explain how to harness technology to enhance follow-
up and buyer–seller relationships. E”ective salesperson
follow-up should include specific components designed to
interact, connect, know, and relate with their customers.

! Interact—The salesperson acts to maximize the number of critical
encounters with buyers in order to encourage e”ective dialogue
and involvement between the salesperson and the buyer.

! Connect—The salesperson maintains contact with multiple
individuals in the buying organization influencing purchase
decisions and manages the various touch points the cus-
tomer has in the selling organization to assure consistency in
communication.

! Relate—The salesperson applies relevant understanding
and insight to create value-added interactions and generate
relationships between the salesperson and the buyer.
Salespeople have employed a variety of technology-based

salesforce automation tools in order to better track the increas-
ingly complex combination of buyer–seller interactions and to
manage the exchange, interpretation, and storage of diverse
types of information. Among the more popular salesforce
automation tools are the many competing versions of PC- and
Internet-based software applications designed to record and
manage customer contact information. Software applications
such as Maximizer, Goldmine, ACT!, Netsuite, and Salesforce
enable salespeople to collect, file, and access comprehen-
sive databases detailing information about individual buyers
and!buying organizations.

9-2

Discuss how to take action to assure customer satis-
faction. Salespeople must follow up on specific relationship-
enhancement activities such as:

(a) Providing useful information to their customers
(b) Expediting orders and monitoring a successful installation

(c) Training customer personnel
(d) Correcting billing errors
(e) Remembering the customer after the sale
(f ) Resolving complaints in a timely manner

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9 Expanding Customer Relationships
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Discuss how to expand collaborative involvement. The
salesperson should always look for ways to improve the relationship
and create a stronger bond. The easiest way to expand collaborative

involvement is to get more people involved in the relationship from
both the buyer’s and seller’s firms.9-4

Explain how to add value and enhance mutual opportu-
nities. The salesperson can enhance mutual opportunities by reducing
risk for the buyer by repeated displays of outstanding customer service.

The salesperson can also demonstrate a willingness to serve the customer
over extended periods of time. The buyer needs to experience a willing-
ness on the seller’s part to go to bat for the!buyer when things get tough.

9-5

collaborative involvement!A way to
build on buyer–salesperson relationships
in which the buyer’s organization and the
salesperson’s organization join together to
improve an o”ering. (p. 207)

service quality!Meeting and/or exceed-
ing customer service expectations. (p. 207)

service strategy!A plan in which a sales-
person identifies his or her business and
customers, what the customers want, and
what is important to them. (p. 210)

communication!A two-way flow of
information between salesperson and
customer. (p. 210)

resilience!The ability of a salesperson to
get knocked down several times a day by a
customer’s verbal assault (i.e., complaint) and
get right back up with a smile and ask for
more. (p. 210)

service motivation!The desire of a sales-
person to serve customers each day. (p. 211)

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self-leadership!The process of guiding oneself to
do the right things and do them well. (p. 218)

goals and objectives!Something a salesperson
sets out to!accomplish. (p. 218)

personal goals!A salesperson’s individual desired
accomplishments, such as achieving a desired
annual income over a specific period of time. (p. 220)

territory goal!A salesperson’s desire of selling a
certain amount of product within an area or territory
in order to achieve personal goals. (p. 220)

account goal!A salesperson’s desire of selling
a certain amount of product to one customer or
account in order to achieve territory and personal
goals. (p. 220)

sales call goal!A salesperson’s desire of selling
a certain amount of product per each sales call in
order to achieve account, territory, and personal
goals. (p. 220)

territory analysis!The process of surveying an
area to determine customers and prospects who
are most likely to buy. (p. 221)

The five sequential stages of self-leadership. As a process, self-
leadership is composed of five sequential stages. First, goals and objectives must
be set that properly reflect what is important and what is to be accomplished.
In turn, an analysis of the territory and classification of accounts is conducted to
better understand the territory potential and prioritize accounts according to
revenue-producing possibilities. With goals in place and accounts prioritized, the

third step develops corresponding strategic plans designed to achieve sales goals
through proper allocation of resources and e”ort. The next stage maximizes the
e”ectiveness of allocated resources by incorporating technology and sales force
automation to expand salesperson resource capabilities. Finally, assessment activi-
ties are conducted to evaluate performance and goal attainment and to assess
possible changes in plans and strategies.

10-1

The four levels of sales goals and explain their relationships. There
are four di”erent levels of goals that salespeople must establish to maximize
sales e”ectiveness:

(a) Personal goals—what one wants to accomplish relative to oneself.
(b) Sales call goals—the priorities that are set out to be accomplished during a

specific call.

(c) Account goals—the objectives relative to each individual account.
(d) Territory goals—what is to be accomplished for the overall territory.

Each level requires di”erent types of e”ort and produces di”erent outcomes, and
each of the levels is interrelated and interdependent on the others. Ultimately,
each higher-level goal is dependent on the salesperson setting and achieving
the specific goals for each lower level.

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Techniques for account classification. There are two basic methods of clas-
sifying accounts. In ascending order of complexity, these methods are single-factor
analysis and portfolio analysis (also referred to as two-factor analysis).

! Single-Factor Analysis—Also referred to as ABC analysis, this is the simplest
and most often used method for classifying accounts. Accounts are
analyzed on the basis of one single factor—typically the level of sales
potential—and placed into either three or four categories denoted by let-
ters of the alphabet, “A,” “B,” “C,” and “D.” All accounts in the same category
receive equal selling e”ort.

! Portfolio Analysis (Two-Factor Analysis)—This classification method
allows two factors to be considered simultaneously. Each account is
examined on the basis of the two factors selected for analysis and sorted
into the proper segment of a matrix. This matrix is typically divided into
four cells, with accounts placed into the proper classification cell on the
basis of their individual ratings (“high” and “low” or “strong” and “weak”)
on each of the two factors. Accounts in the same cell share a common
level of attractiveness as a customer and will receive the same amount
of selling e”ort.

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account classification!The process of placing existing customers and pros-
pects into categories based on their potential as a customer. (p. 222)

single-factor analysis!A method for analyzing accounts that is based on one
single factor, typically the level of sales potential. (p. 222)

portfolio analysis!A!method for analyzing accounts that allows two factors
to be considered simultaneously. (p. 223)

sales planning!The process of scheduling activities that can be used as a map
for achieving objectives. (p. 224)

10Adding Value: Self-leadership and Teamwork

The application of different territory routing techniques. Territory
routing plans incorporate information developed in the territory analysis and
account classification to minimize unproductive travel time that could be better
spent working with customers. Good routing plans minimize the backtracking
and crisscrossing that would otherwise occur. Routing plans correspond to one
of five common patterns.

! Straight Line—With a straight-line plan, salespeople start from their o#ces
and make calls in one direction until they reach the end of the territory. At
that point, they change direction and continue to make calls on a straight
line on the new!vector.

! Cloverleaf—Using the cloverleaf pattern, a salesperson works a dif fer-
ent par t of the territor y and travels in a circular loop back to the star t-
ing point. Each loop could take a day, a week, or longer to complete.
A new loop is covered on each trip until the entire territor y has been
covered.

! Circular—Circular patterns begin at the o#ce and move in an expanding
pattern of concentric circles that spiral across the territory. This method
works best when accounts are evenly dispersed throughout the territory.

! Leapfrog—When the territory is exceptionally large and accounts are
clustered into several widely dispersed groups, the leapfrog routing meth-
odology is most e#cient. Beginning in one cluster, the salesperson works
each of the accounts at that location and then jumps (often by flying) to
the next cluster. This continues until the last cluster has been worked and
the salesperson jumps back to the o#ce or home.

! Major City—Downtown areas are typically highly concentrated with locations
organized by a grid of city blocks and streets. Consequently, the downtown
segment is typically a small square or rectangular area allowing accounts to
be worked in a straight-line fashion street by street. Outlying areas are placed
in evenly balanced triangles or pie-shaped quadrants, with one quadrant
being covered at a time in either a straight-line or cloverleaf pattern.

10-4

straight-line routing plan!A territory routing
plan in which salespeople start from their o#ces
and make calls in one direction until they reach the
end of!the territory. (p. 225)

cloverleaf routing plan!A territory routing
plan in which the salesperson works a different
part of!the territory and travels in a circular loop
back to the starting!point. (p. 226)

circular routing plan!A territory routing plan
in which the salesperson begins at the o#ce and
moves in an expanding pattern of concentric circles
that spiral across the territory. (p. 228)

leapfrog routing plan!A territory routing plan
in which, beginning in one cluster, the salesperson
works each of the accounts at that location and
then jumps to the next cluster. (p. 228)

major city routing plan!A territory routing plan
used when the territory is composed of a major
metropolitan area and the territory is split into a
series of geometric shapes reflecting each one’s
concentration and pattern of accounts. (p. 228)

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selling technology and automation!Tools that
streamline the selling process, generate improved sell-
ing opportunities, facilitate cross-functional teaming
and intraorganizational communication, and enhance
communication and!follow-up with customers. (p. 229)

mobile salesperson CRM solutions!Wireless
broadband applications that enable users to view,

create, and modify data on any Internet-capable device
such as smartphones, netbooks, and laptops. (p. 231)

deal analytics!“Smart” salesforce automation
tools that analyze data on past customer behavior,
cross-selling opportunities, and demographics to
identify areas of opportunity and high customer
interest. (p. 232)

high-tech sales support offices!O#ces set up
at multiple locations where salespeople can access
the wider range of selling technology than could
be easily carried on a notebook or laptop computer.
(p. 232)

Increasing customer value through artwork. With increasing cus-
tomer expectations and growing complexity of selling situations, teamwork
has become critical for maximizing customer focus and sales performance.
Teamwork results in synergies that produce greater outcomes and results
for all parties than would be possible with multiple individuals acting
independently of one another. Highly effective sales professionals work with
customers to develop a mutual understanding of the customer’s situation,
needs, possibilities, and expectations. Based on that mutual understanding,
the salesperson assembles a team of individuals—experts from across the

selling organization—who work together in creating a product response
that delivers more unique customer value than competitors’ offerings. In
delivering this unique and added value for customers, salespeople often
find themselves working with other individuals in sales, marketing, design
and manufacturing, administrative support, shipping, and customer service.
Teamwork is built on reciprocal trust enhanced through six teamwork skills:
(1) Understanding the other individuals; (2) Attending to the little things;
(3) Keeping commitments; (4) Clarifying expectations; and (5) Showing
personal integrity; and (6) Apologizing sincerely when a mistake is made.

10-6

external relationships!Relationships salespeo-
ple build with customers outside the organization
and working environment. (p. 234)

internal relationships!Relationships salespeople
have with other individuals in their own!company.
(p. 234)

teamwork skills!Skills salespeople must learn to
build internal partnerships that translate into increased
sales and organizational performance. (p. 238)

The six skills for building internal relationships and teams.

(a) Understanding the Other Individuals—Fully understanding and considering
the other individuals in the partnership is necessary to know what is
important to them. What is important to them must also be important to
the salesperson if the partnership is to grow and be effective.

(b) Attending to the Little Things—The little kindnesses and courtesies are small
in size, but great in importance. Properly attended to and nurtured, they
enhance the interrelationships. However, when neglected or misused, they
can destroy the relationship very quickly.

(c) Keeping Commitments—We build hopes and plans around the promises
and commitments made to us by others. When a commitment is not

kept, disappointment and problems result and credibility and trust suffer
major damage that will be difficult or impossible to repair.

(d) Clarifying Expectations—The root cause of most relational difficulties can be
found in ambiguous expectations regarding roles and goals. By clarifying
goals and priorities as well as who is responsible for different activities up
front, the hurt feelings, disappointments, and lost time resulting from misun-
derstandings and conflict can be prevented.

(e) Showing Personal Integrity—Demonstrating personal integrity generates
trust. Be honest, open, and treat everyone by the same set of principles.

(f ) Apologizing Sincerely When a Mistake Is Made—It is one thing to make a
mistake. It is another thing to not admit it. People forgive mistakes, but ill
intentions and cover-ups can destroy trust.

10-7

The usefulness of different types of selling technology and
automation. Properly applied, selling technology spurs creativity
and innovation, streamlines the selling process, generates new selling
opportunities, facilitates communication, and enhances customer follow-up.
Salespeople must not only master the technology itself but they must also
understand when and where it can be applied most effectively. Today’s
selling technologies provide the production tools for generating reports,
proposals, and graphic-enhanced presentations. Spreadsheet applications
and database applications facilitate the analysis of customer accounts and
searching for information needed by customers. Contact management
software enables the salesperson to gather and organize account informa-
tion and schedule calls. Access to the Internet and World Wide Web provides
salespeople access to an assortment of public and corporate networks that

enable one to communicate, research, and access company information and
training from anywhere in the world. Mobile devices and customized appli-
cations put salespeople in touch with customers, the home office, and even
the family while traveling cross-country or just walking across the parking
lot to make a customer call. Voice mail and texting applications avoid the
previous restrictions of time and place that accompanied the requirement
to make personal contact. Messages can now be left and received 24 hours
a day and seven days a week. High-tech sales support offices provide geo-
graphically dispersed salespeople with a common standard of computing
technology, access to software applications, and portals to organizational
networks at offices around the world. Wherever they may be working, they
have the tools and capabilities identical to those available to them in their
home offices.

10-5

1Overview of Personal Selling
INTRODUCTION
The National Copier Company (NCC) sells a variety of copiers to small and medium-sized businesses. NCC has been in business
for five years and has been growing at a steady pace. NCC di!erentiates itself from other copier companies by customizing its
products to meet the specific needs of each customer and by providing excellent customer service. The company’s salesforce
plays a key role in creating value and managing customer relationships.

Brenda Smith has been a NCC salesperson for the past three years. She has steadily improved her sales performance during her
time with NCC, and now is in the top one-fourth of all NCC sales representatives as measured by two key metrics: overall sales
volume and customer satisfaction. Brenda has been especially successful with small professional firms, such as attorneys, archi-
tects, accountants, and medical professionals. She is excited to begin her fourth year with NCC and has established challenging
goals to increase sales from existing customers and to generate new customers.

Brenda recently met with Pat Brady, her sales manager and was quite excited about the upcoming year. Pat had told Brenda
that she was progressing toward a possible promotion into sales training if she had another good year in her sales position. In
addition, Pat gave Brenda this feedback: “Brenda, I think you are doing a fine job with your customers, but I would like to see you
become more of a consultative salesperson in the coming year. I would also like for you to sharpen your group communications
skills, as that will be important if you are promoted into sales training. We will talk about the specifics more as the year goes
along. Meanwhile, thanks for your results to date and good luck with the upcoming year.”

QUESTIONS
1. Brenda had been thinking about Pat Brady’s feedback that directed her to become more of a

consultative salesperson. In thinking about her own selling approaches, she knew that she had been
concentrating on the needs satisfaction and problem-solving approaches. What must Brenda do to
become a more consultative salesperson?

2. Three months later, Brenda was having mixed results with the consultative selling approach. She was
!nding that some of her customers just wanted the convenience of having a copier in their o”ces,
and did not seem eager to discuss their strategic goals. She was beginning to wonder about the
consultative selling model, thinking it was not such a good idea after all. What recommendations do
you have for Brenda?

3. A month before the annual meeting for all NCC sales representatives, Pat Brady told Brenda, “For the
upcoming meeting, I want you to prepare a 10-minute presentation about the pros and cons of the basic
selling approaches that we use at NCC compared to our competitors.” NCC’s sales training program
advocated the use of needs satisfaction, problem solving, and consultative selling. Many of NCC’s key
competitors used the same approaches. However, some of the toughest competitors used stimulus
response and mental states (AIDA) approaches. This latter category of competitors often stressed lower
prices and utilized telemarketing instead of !eld sales representatives in selling their products. Put
yourself in Brenda’s role and prepare the presentation requested by Pat Brady.

4. Early in the year, Pat Brady told Brenda that her e#orts were needed to gain more exposure for NCC’s
college recruiting program: “Brenda, I want you to be part of a two-person team to help with recruiting
on two college campuses in your territory. The other team member will be an experienced recruiter
who had sales experience before moving into recruiting. The two of you should seek out opportunities
as guest speakers for classes and student organizations. Your role will be to talk about how sales can
be a great place to start a career, and for some, a great career path. Think about the future of selling
and what it takes to be successful and share your thoughts with students.” Acting as Brenda, make
note of ten key points you would like to make about the future of professional selling and what it takes
to be successful.

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2Building Trust and Sales Ethics
BUILDING TRUST
Because the National Copier Company (NCC) has only been in business for five years, Brenda Smith is concerned that most of
her competitors are older than she is. The prospective customers she has been calling on state that they know they can count
on her competitors, because they have a long track record. As NCC expands into new markets some of her prospects are not
familiar with her company. One prospective customer, who works for one of the most prestigious and largest medical o”ces
(30 doctors) in the area, told her he has been buying copiers from the same company for over twenty-five years. He also told
her that his sales representative for the company has been calling on him for over seven years, and he knows when he calls
on his copier supplier for advice he can count on him for a solid recommendation. Brenda realizes these are going to be tough
accounts to crack.

Brenda does have an advantage due to the high quality of NCC products. In a recent trade publication, NCC’s copiers tied for first
in the industry on ratings of copier quality and dependability. NCC was also given a high rating for service. Brenda has had this
information for two weeks now and has brought it up in conversations with her prospective customers without much success.
To make matters worse, one of her competitors must have started rumors about NCC. In#the past month, she has heard the fol-
lowing rumors:

“NCC is going out of business because of financial troubles.”

“NCC has missed several delivery deadlines with customers.”

“NCC’s copiers have a software glitch that cannot be corrected.”

“NCC has cut its service sta!.”

Brenda knows these rumors are not true, but prospects might believe the rumors. At a recent sales meeting, Brenda’s manager
suggested that their competitors must be getting nervous about NCC’s success, causing them to start such vicious rumors.

Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed.

QUESTIONS
1. What would you recommend Brenda do to handle the challenges she faces?

2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to
build trust in NCC with prospective customers.

3. What do you recommend Brenda do to compete e#ectively against competitors that have a long and
successful track record?

4. How should Brenda go about handling the rumor mill?

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3Understanding Buyers
UNDERSTANDING TOM PENDERS
It was Monday afternoon and Brenda Smith was very excited. She just got o! the phone with Tom Penders, the administrator in
charge of a large medical o”ce in her territory. After an introductory letter and several follow-up phone calls, Tom Penders finally
agreed to meet with Brenda next Friday to discuss the possibility of replacing his organization’s old copiers, as well as adding
new copiers to keep pace with his organization’s rapid growth. The primary purpose of the meeting was for Tom to learn more
about the NCC and its products and for Brenda to learn more about Tom’s company and its specific needs.

When Brenda arrived about 10 minutes early for her meeting with Tom Penders at the medical o”ces on Friday, she was
greeted by a receptionist who asked her to be seated. Ten minutes passed and Brenda was promptly shown to Tom’s o”ce.
Brenda couldn’t help but notice how organized Tom’s o”ce was. It appeared to Brenda that Tom was a man of detail. First, Tom
explained that the medical o”ces housed over 25 doctors specializing in a variety of fields. They occupied two floors and were
planning to expand to the vacant third floor in the near future. Currently, they were organized into four divisions with an o”ce
professional assigned to approximately six doctors for each division. Each division ran its own “o”ce” with a separate copier and
administrative facilities. Tom also had an assistant and a copier. Upon concluding his overview, Tom provided Brenda with an
opportunity to ask questions. After this, Tom systematically went down a list of questions he had about NCC, its products, and
Brenda herself. Following this, Tom had his assistant take Brenda on a tour of the facility so she could overview their processes.
Before leaving, Tom agreed to meet with Brenda in two weeks.

Based on her conversation with Tom, Brenda did not find Tom to be a particularly personable individual. In fact, she found him
to be somewhat cool and aloof, both deliberate in his communication and actions. Yet, Tom was willing to learn how NCC could
help his medical o”ce. While Brenda preferred communicating with someone more personable and open, such as herself, she
was determined to find a way to win Tom’s business.

QUESTIONS
1. What type of communication style do you believe that Tom exhibits? What are the characteristics of this

communication style?

2. Based on your understanding of Tom’s communication style, outline a plan for selling to Tom Penders.

3. Identify other members of Tom’s organization that may play a role in the buying decision and explain
the role they might play. How should Brenda handle these individuals?

4. Explain the types of buyer needs that will be most important in this selling situation.

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4Communication Skills
SHARPENING THE SELLING TOOLS
Brenda Smith is working in the o”ce this morning preparing for tomorrow’s sales call with Gage Waits, managing partner,
and Anna Kate Autry, operations manager, at Energy Based Funds LLC. Energy Based Funds is a major investment banking
organization specializing in managing and marketing a variety of energy-based mutual funds. The company operates
throughout the United States and employs 175 people with o”ces occupying the top three floors of a major o”ce building
in the heart of the financial district. For the past several years, Energy Based Funds has been leasing and purchasing o”ce
equipment from Altima Systems, one of Brenda’s biggest competitors. Brenda has been working her network in order
to get a chance to begin a sales dialogue with Energy Based Funds and she finally has an appointment with the main
players on the purchasing team—Waits and Autry.

Brenda knows that planning is a key part of success in selling and is diligently working on her strategy and plans in preparation
for tomorrow’s sales call with Waits and Autry at Energy Based Funds. According to the Sales Call Plan that Brenda is developing,
the purpose of this initial meeting is twofold: (1) to discover more about Energy Based Funds’ current operations, future plans,
and the nature of their use of and needs for copiers; (2) to begin acquainting Waits and Autry with NCC and the value they can
provide Energy Based Funds. At this point in her sales call plan, Brenda is considering the di!erent pieces of information she
needs to get from the dialogue and what questions she might use to elicit that information from Waits and Autry.

QUESTIONS
1. Based on the purpose of probing questions explained in your text, explain how Brenda should utilize

probing types of questions in her initial sales dialogue with Waits and Autry at Energy Based Funds.
Consider the types of information Brenda needs and develop several illustrative examples of probing
questions Brenda might use.

2. Evaluative questions are also e#ective in sales conversations. Explain the purpose of evaluative
questions and how Brenda might e#ectively utilize them in this initial sales call. Provide several
illustrative examples of evaluative questions Brenda could use.

3. The ADAPT questioning system is a logic-based sequence of questions designed for e#ective fact-
!nding and gaining information about a buyer’s situation. Develop a series of ADAPT questions
that Brenda might use in her sales call to develop the information she needs regarding Energy
Based Funds, their operations, and needs for copiers.

4. What recommendations would you provide Brenda regarding nonverbal communication and how she
might use it for more e#ective communication in this sales call?

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5Strategic Prospecting and Preparing for Sales Dialogue
FISHING FOR NEW CUSTOMERS
Brenda Smith has been very successful at getting existing customers to upgrade or purchase new copiers during the past two
months. She is, however, disappointed in her e!orts to get new customers. To add more new customers, Brenda has been
spending a great deal of time prospecting. These e!orts have produced a large number of leads. Once she generates a lead,
she contacts the firm and tries to set up an appointment. Unfortunately, most of these leads are not interested in talking about
copiers and are not willing to schedule a meeting with her. This has been so frustrating that she decided to make several cold
calls this week to see if this would be a good way to get to meet with prospective customers. The cold calls were also not very
successful and were extremely time consuming. Brenda did finally get a few leads to agree to meet with her, but these
appointments were not very productive. The leads were typically satisfied with the copiers they were using and were not
interested in learning about NCC copiers.

Pat Brady, her sales manager, accompanied her on a recent sales call to a lead. After the sales call, Pat expressed his disappoint-
ment that they had really wasted their time with this meeting. Pat then asked Brenda about her prospecting process because
it was clear that she was not identifying and spending her time with the best sales opportunities. Her approach was not
working well and was taking a lot of time. If she continued doing the same things, Brenda was not likely to generate many
new customers and might lose some existing customers because she was spending too much of her time prospecting. Brenda
realizes that she must improve her prospecting process, but is not sure exactly how to proceed.

QUESTIONS
1. What is Brenda doing wrong? What would you recommend Brenda do to improve her

prospecting e#orts?

2. Explain the strategic prospecting process to Brenda and discuss how she can implement it.

3. What secondary lead sources would you recommend Brenda use to identify the best attorneys,
architects, accountants, and medical professionals as prospects?

4. What speci!c types of information should Brenda obtain before contacting a$quali!ed prospect?

5. How could Brenda use social selling to improve her strategic prospecting?

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6Planning Sales Dialogues and Presentations
CUSTOM PRODUCT, CUSTOM PRESENTATION
During the past three months, Brenda had improved her prospecting process. She was identifying more prospects that repre-
sented better sales opportunities. Brenda knew that it was important to plan her sales calls in advance to maximize the time she
spent in face-to-face selling. In this selling environment, most customers were not interested in all of the features of Brenda’s
products. Brenda had to determine what was important to each customer, and customize her presentations accordingly. Further,
she had to clearly communicate the benefits of her products, and not overwhelm potential buyers with too much technical
language. Assume that Brenda has an appointment with EFP, a nonprofit organization that raises money to promote
environmentally friendly practices such as recycling. The organization uses e-mail, Web-based communications, and#direct
mail campaigns to reach potential donors. EFP is currently using an older-generation copy machine that frequently needs
maintenance. When EFP needs high-quality color copies, they rely on a local company to produce the copies. This works
fairly well, although sometimes there are delays in getting the copies back from the local copy shop. EFP has a fax machine.
Although it is rarely used, EFP’s management has told Brenda that a fax capability is important for communicating with some
clients. Currently, EFP does not have a good way of scanning documents. This is a big problem, as using scanned documents in
client e-mails is increasingly preferred. Given these circumstances, Brenda believes that EFP could benefit from a multifunction
printer. A multifunction printer consolidates the functionality of a printer, copier, scanner, and fax machine into one machine.
EFP has agreed to consider a multifunction printer, but their management is concerned about cost and the reliance on a single
machine if there are breakdowns.

QUESTIONS
1. Using an Internet search engine such as Google, !nd the general bene!ts of multifunction printers.

You might enter “bene!ts of multifunction printers” in the search engine, or examine data from copier
providers such as Ricoh, Canon, or Xerox to !nd these bene!ts. List 5 to 6 potential bene!ts of a digital
copier to EFP.

2. From the listing developed in # 1, select three bene!ts. For each bene!t, write a sentence or two that
Brenda might use to communicate those bene!ts during sales call with EFP.

3. For the three bene!ts identi!ed in # 2, describe what information Brenda should have on hand when she
makes the sales call on the EFP buyer. Also describe how this information would be best communicated,
i.e. what support materials will Brenda need to enhance her verbal communications?

4. Assume that the buyer acknowledged the value in at least two of the bene!ts identi!ed in # 2. Write
a realistic buyer–seller dialogue of Brenda’s interaction with the EFP buyer concerning these bene!ts.

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7Sales Dialogue: Creating and Communicating Value
UP FOR THE CHALLENGE
Brenda has a meeting today with the o!ce manager at the law firm Abercrombie and Wilson (A&W ). A&W is a local
law firm with five attorneys and one main o!ce. During her initial telephone conversation, the o!ce manager
indicated that the firm was reasonably satisfied with their current copiers, but that he was always looking for ways
to increase o!ce productivity. He also mentioned that he was a little concerned that the firm was paying for many
copier features that were not really used. The law firm needed to make a lot of legal-sized copies, and be able to
collate and staple them. There was little need for other “bells and whistles.” It was also important that a copier was
dependable because the law firm made many copies each day. When the copier did break down, fast service was
needed to get it repaired as soon as possible.

The o!ce manager had some familiarity with NCC products and was eager to talk to Brenda. However, he made it
clear that any decision to switch to NCC copiers would require that Brenda also meet with the attorneys and o!ce
personnel to get their approval. If Brenda convinced him that NCC copiers would increase o!ce productivity at the
law firm, he would be glad to set up a meeting for her with the attorneys and o!ce personnel.

Brenda is excited about this opportunity. She knows that NCC copiers are very dependable and that NCC provides
exceptional service. She can also o”er the law firm a copier with the specific features A&W desires.

QUESTIONS
1. Prepare the sales dialogue Brenda might employ to use as an example and an anecdote to communicate

the dependability of NCC copiers to the o”ce manager.

2. Brenda will not be able to demonstrate a copier during this sales call. So, describe the types of sales aids
she should use to show the buyer an NCC copier with the exact features desired.

3. How can Brenda best use statistics and testimonials to support the excellent service provided by NCC?

4. Brenda did a terri!c job in her sales call with the o”ce manager. He is interested in NCC copiers and
has scheduled a meeting for Brenda with the !ve attorneys and the o”ce personnel. Discuss the major
things Brenda should do during her sales call to this group.

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Sales Dialogue: Creating and Communicating Value

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8Addressing Concerns and Earning Commitment
HANDLING SALES RESISTANCE
Brenda recently returned from a two-week training session that focused on how to handle sales resistance and how to earn
commitment. Brenda has become quite familiar with the ADAPT questioning system and knows she must use assessment ques-
tions to allow the buyer to describe their present situation. She has also developed a pretty good set of discovery questions that
helps her identify the buyer’s pain and problems. Her challenge has been what to do with this information. Whenever Brenda
attempts to use features and benefits to make her case, she encounters a myriad of objections. Brenda knows she has great
products and service, but she has not been able to communicate this e!ectively to her prospects.

The objection she hears most often is: “I’ve never heard of your company, how long have you been in business?” If that is not bad
enough, she heard the following objections in just one morning:

“I’m not sure I am ready to buy at this time, I’ll need to think it over.”

“Your company is pretty new; how do I know you’ll be around to take care of#me in the future?”

“Your price is a little higher than I thought it would be.”

“Your company was recently in the news. Are you having problems?”

and finally,

“I think your company is too small to meet our needs.”

Brenda hears most of these objections right after she attempts to earn a commitment. She is now getting a little gun shy about
asking her prospects for the order.

Brenda is sitting at her desk trying to figure out what to do next and she is not exactly sure how to proceed.

QUESTIONS
1. What would you recommend Brenda do to handle the challenges she faces?

2. Brenda appears to have an advantage with her products and services. Develop a plan for Brenda to
overcome the sales resistance she is receiving.

3. Use the LAARC process to develop the suggested dialogue Brenda can use to$address one of the major
types of resistance she is receiving.

4. What can Brenda do in the future to encounter less sales resistance when she asks for the order?

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9Expanding Customer Relationships
THE DISGRUNTLED CUSTOMER
It was 8:30 A.M. Friday morning when Brenda received the voice mail. It was Susan Swanson, owner of a small architecture firm,
who Brenda had acquired as a customer nearly three months ago. “I’m finished with you all,” she barked. “Come get my copier,
I want my money back! This blasted machine you sold me keeps jamming. I was billed for extra toner that I never received. You
promised me training, and I have yet to see any. And, this machine is much slower than I#thought it would be. I don’t see how
your company stays in business. I knew I#should have gone with Xerox!”

It’s true, Brenda had told Susan that she would provide training on how to use some of the new advanced features of the copier.
She had neglected to get back to Susan and since she had not heard from Susan she assumed Susan no longer desired the
training. As for the paper jams, Brenda found this to be unusual. NCC carried high-quality copiers and she could not imagine
what might be wrong. She was sure she had told Susan the specific type of paper to use for her application. However, using the
wrong paper could lead to more frequent paper jams. But why hadn’t Susan said anything to her about this sooner? As for the
extra toner, Brenda recalls that Susan did order it and later contacted her to let her know that she did not receive it. Brenda then
contacted NCC’s shipping department who said they would ship Susan the product. Brenda just assumed that it was shipped. As
for the speed of the machine, Brenda was certain its output was per specifications as equipment at NCC must pass strict quality-
control measures. Perhaps Susan simply misunderstood the machine’s capabilities. Wow, Brenda thought, now what am I going
to do?

QUESTIONS
1. How should Brenda go about handling this complaint?

2. What could Brenda have done to avoid this incident?

3. What steps can Brenda take to do a better job of maintaining open, two-way communication with
Susan?

4. Assuming that Brenda can retain Susan as a customer, how can she add value to her relationship with
Susan’s !rm?

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10Adding Value: Self-leadership and Teamwork
MANAGING AND CLASSIFYING ACCOUNTS
Brenda’s planning and extra e!ort in servicing and developing her accounts continue to produce increasing levels of profit-
able business for NCC. Her methodical approach to identifying new prospects and building repeat business within her existing
accounts has been observed by her sales manager as well as the regional vice president of sales. As a result of Brenda’s consistent
performance, she has been given the opportunity to expand her current list of accounts by taking over part of the account list of
a retiring salesperson and integrating them into an expanded territory. Brenda is working through the account information files
for each of these added accounts and has summarized the information into the following table.

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1. Develop a portfolio classi!cation of Brenda’s 18 new accounts. What is your assessment of the allocation

of sales calls made by Brenda’s predecessor over the previous year?

2. What speci!c suggestions would you make in terms of sales call allocation strategy for Brenda to make
better use of available selling time in calling on these new accounts?

3. Develop a classi!cation of these 18 accounts using the single factor analysis method. How do these
results di#er from the results from the portfolio analysis?

4. How might the di#erences between the single factor analysis and the portfolio classi!cation translate
to increased selling e#ectiveness and e”ciency for Brenda?

Account Name
Account

Opportunity
Competitive

Position

Annual
Number of
Sales Calls
(Last Year)

Maggie Mae Foods Low High 23

C3 Industries High Low 28

Trinity Engineering High High 28

Britecon Animations High High 22

Lost Lake Foods High Low 26

Attaway Global Consulting High High 24

Waits and Sons Low High 21

Reidell Business Services High High 26

Ferrell & Associates Low Low 16

Biale Beverage Corp High High 18

Captain Charlie’s Travel High Low 23

Cole Pharmaceuticals High Low 20

PuddleJumper Aviation Low High 18

Tri-Power Investment Services Low Low 18

Ballou Resin & Plastics Low Low 14

Tri-Chem Customer Products Low High 20

Guardian Products High High 25

Bartlesville Specialties Low High 26

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Adding Value: Self-leadership and Teamwork

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