Tuesday, February 28, 2012

Effective Selling

Coffee Veteran Mosely Explores Effective Selling And Innovation


CHERRY HILL, NJ — “Today, we need to deliver not only a great cup of coffee,” said Jim Mosely, sales manager for Southern Refreshments (Tucker, GA). “We have to provide service beyond the cup, and many different products. We have to raise the bar.”



Speaking at the National Automatic Merchandising Association’s first-ever OCS Summit, Mosely pointed out coffee service started out with a simple plan: drop off a brewer and ship enough coffee and basic supplies (filters, condiments, stir-sticks) to keep the client brewing. Today, however, competitive operators must be prepared to provide total breakroom solutions, and it can be helpful to look imaginatively at ongoing product introductions in order to find attractive additions.



He noted that technology is creating almost unbounded opportunity. For example, it would be perfectly feasible right now to design a “coffee terminal” that would respond to voice commands, and perhaps “read” programmable mugs that store their owners’ preferences in memory. It is useful to imagine things like this, he suggested, so one can respond quickly when something new enters the market.



Mosely showed the audience a novel paper towel dispenser, about the size of a toaster, that loads with recycled-paper wipes feeding out a hold in the front. The number of sheets in a single load is equivalent to five rolls of conventional paper toweling. Operators can sell this, he emphasized. “Green’ is the future.”



The products and services to be sold are done so in the context of the operating company’s vision, the speaker observed, and sales training consists primarily of imparting that vision while sharing proven methods of communicating. This requires the salesperson to understand the prospect’s needs and expectations, and to determine how the company can meet them.



“Use a form that can accommodate all the necessary information,” he recommended. “That includes the name, address and phone number of the company, the county or municipal tax rate, the name and title of the decision-maker and the qualification: the number of people, the hours and days worked, the number of shifts – the night shift will drink more coffee – and the average age of the clientele. It used to be that the ‘older crowd’ drank more coffee; that may be changing now. What is the ratio of male to female patrons? Is it a white-collar or a blue-collar location? Is the coffee free? What’s the ethnic balance? A predominantly Hispanic population will tend to use more sugar; an Asian clientele often prefers tea to coffee. How many breakrooms are there, and what kind of access do employees have? What’s the lunch schedule? This is important for vending, too,” Mosely continued. Asking the right questions at the outset makes it much easier to come up with a program that will please the account.



It’s also very helpful to ask about the prospect’s present service. “Ask, ‘How would you rate it: Average? Fair? Poor?’ Don’t suggest ‘good’ or ‘excellent’ as choices,” the speaker advised. “And ask, ‘If you could wave a magic wand, what would you wish for as the perfect service?’”



The next step is to propose a visit to the breakroom. This, with the information already gathered, will enable the sales rep to make a recommendation: “You qualify for our single-cup system; let’s see whether one can be installed in the available space...OK, I’ll leave you this one for a couple of days; play with it.”



Mosely observed that, in this presentation, he has not mentioned price, nor asked for a demo. And, he said, that scenario is just one of many that can be envisioned, along with other questions that might be asked. One would be, “Do you have a ‘green’ program?” he noted, and invited the audience to suggest others.



There were many replies, ranging from whether the location receives regular visitors (like a medical office), presently pays rental on a brewer or a water dispenser, presently pays with a credit card and/or orders online – and, “What do you buy, other than coffee?”



The questionnaire is the key, Mosely summarized. “It’s my garden; it lets me plant the seeds, and control how they grow. It can be updated regularly with ongoing order information, and used as the guide to truly personalized service.”


1.  Who does Mr. Mosely sell to, B2B or retail customers?     How do you know this?




2.  In the second half of the article what “steps” is Mr. Mosely going through? Give me evidence from the article do not just give a one word answer.



3. Go through the steps of the pre-approach and identify how Mr. Mosely addresses each step.

Monday, February 27, 2012

Sales Prospecting and How to Find Gold

Read the article below from About.com and answer the questions as comment posts.

Sales prospecting is a key activity for most sales driven small businesses. Successful business must constantly replenish their customer base. Take the time to revisit your assumptions about sales prospecting...the results will surprise you.


For years, I dreaded the prospecting part of sales. The constant rejection was excruciating until I learned the myths toward sales prospecting.


The 5 Myths of Sales Prospecting
Myth #1: Prospecting is sales.This is the number one mistake made by small business owners and sales reps. Prospecting is a separate function from sales. Just as marketing is distinct from sales but closely linked.
Prospecting is simply discarding all the unqualified leads and retaining the "gold". The job of prospecting is to find qualified leads that may buy your product. Only after this process is complete, should the selling begin.


Myth #2: Prospecting is a numbers game.The old school of prospecting for business relies on contacting large numbers of cold contacts. However, quality supersedes quantity. You must find prospects that have a propensity and possible motive to buy your product or services.
I know of a large financial powerhouse, who provided sales reps with contact lists for mortgage and investments. The only problem was most prospects lived in a low income area and were highly unlikely to buy any financial product.


Myth #3: Scripts are for kids.
Many sales people insist on prospecting without any script. Scripting provides the framework of a successful prospecting campaign. It allows you to test what key benefits and qualifying questions work. The script must be personalized by the individual so the presentation does not sound "canned".


Myth #4: Prospecting takes time.Prospecting takes only a few minutes to determine if the lead wants your benefits and can afford your company's product or service. Don't waste time on people unmotivated or unable to buy. Remember to focus on the "gold".


Myth #5: Close them on the appointment.Far too many sales reps focus on setting the appointment. "Would Friday morning or afternoon, be better for you?" Next week only 20% of appointments show. What went wrong?
Prospects will sometimes find it easier to agree to an appointment rather than saying they are not interested. If a prospect is remotely interested, then offer a much subtler approach...send them an information package. This allows you to build interest and turn the lead from warm to hot.

Sales prospecting done right can have a huge impact on your sales revenue. It doesn't take an armor suit and great courage to deal with the fear of rejection during prospecting. Just keep an open mind to challenge the old school of sales and the myths of prospecting.

1. Explain how prospecting is different from selling.




2. If I asked you to find prospects who might purchase seasons tickets to the Carolina Panthers, tell me two places you might find?




3. The article suggests using a script(prewritten statement) when contacting prospects. Do you think this is a good idea? Why??




4. The article says, "Remember to Focus on Gold", what does that mean?

Wednesday, February 15, 2012

Feature Benefit Selling!!!!



Read the article below from changingmids.org and answer the questions as comment posts.


One of the basic rules of selling is to sell the benefits that customers will receive from the features of a product rather than just the list of features that a product has.

Selling on features
A common scenario in selling (particularly in retail) is for the sales person to explain the virtues of the product they are selling by demonstrating the assorted features that it has. In a hi-fidelity entertainment system, for example, this may include showing off the graphic equalizer, talking about the power output, detailing the signal-to-noise ratio, etc.

A big problem with this is that the customer might not appreciate what is being said. They might not want a graphic equalizer. They may want a higher power that that on offer. They may be confused by talk of signal-to-noise. And as a result, they politely say 'no thank you' and move on, leaving behind a frustrated salesperson.

Another variant of the features trap is when the customer comes in with a checklist of the features that they want. Anything that does not have all features is immediately rejected, whilst products with extra features are ignored. When they have narrowed down their choices to a set of products that have all the features they want, then they choose solely on price, which again is bad news for the salesperson.

Selling on benefits
Benefits are what the customer gains by using the product. When using a hi-fidelity entertainment system, they get to hear beautiful music, faithfully reproduced in their living room, with sound as real as if they were in a live concert.

Selling on benefits thus sells to what they really want, not what they say they want or what you want to sell. With benefits, you can get them excited and emotionally engaged. With features, you can only get nodding heads and logical agreement.

Features, when discussed can also be talked about in terms of benefits. With a graphic equalizer they can compensate for booming resonances, further refining the sound and improving the experience. With great signal-to-noise, they can turn the sound up and hear a pin drop, not a nasty hiss.

FAB Selling
To feature and benefits the intermediate position of attributes or advantages is sometimes added.
Attributes are intangibles that are associated with the product, not the person (and hence are not yet benefits).
Thus, for a hi-fi amplifier:
A feature is the large volume control.
An attribute is the maximum decibels of volume that can be achieved.
A benefit is that high volume lets you immerse yourself in the music.
Some products have many attributes whilst others have far fewer. One way of identifying attributes is to look on the product specification. Customers often have attributes on their checklist (rather than physical features or benefits).
Attributes are a useful stepping-stone between the physical product and the benefits that the person actually receives and can be used in a sales pitch as such.
In most descriptions that cover features and benefits, but not attributes, the attributes are usually described as features.



1. Give me another example of a feature and benefit of a stereo/enternaiment unit that you could use to sell to customers.






2. Why are benefits so important to customers?






3. If the product you were selling were tickets to a Black Eyed Peas concert what would be an example of a feature and benefit you would use to sell the tickets?

Friday, February 10, 2012

Should the Government Decide your Business??


Many times when you hear people describe how our country's economic system works they use terms like capitalism and free enterprise. These terms evoke thoughts of having the right to own your own business, make a profit from that business, make decision regarding where, when and how that business should operate. We believe it is our right as Americans to have the government stay out of our business. Give me your opinion on the following scenarios:





1. You decided you want to open a pawn shop on the same block as an elementary school. The local town ordinance states that you cannot do this because of the type of merchandise and clientele the shop might draw. Do you think this is right? Should you be able to open this business anywhere you like? Should the government have a say in this?













2. Fred owns a cigarette vending machine company. He wants to place a machine in the local fast food dinner. Fred knows that cigarette companies need to replace 1000 new smokers a day to replace those that die from health complications. Fred also knows that many teenagers from the local high school hang out at the dinner. Fred has offered the owner of the dinner a nice  cash incentive to sweeten the deal if he allows the machine to be placed in the dinner. Since we live in a free market economy should the government be allowed to decide where potentially dangerous business can operate or should it be solely up to the dinner owner? Do you think it will be good for the local economy if the machine is allowed into the dinner?



Wednesday, February 8, 2012

Supply and Demand in a Tough Economy

Read the article below from USA Today and answer the questions as comment posts








NASHVILLE — If you want to sit in the really good seats for a Keith Urban concert this summer, a pair of tickets will put you about back about $170. But in a nod to the tough economic times, the country superstar has also priced some tickets as low as $20 per seat, so fans won't stay home because they can't afford to go.



"They may be to the side, but they still have a good view of the stage," Urban said recently of the discount tickets. "It's a way for us to allow those people that are a little hard up for cash to come and see the show."

"It's a balance for me," Urban added, "because we want to put on a good show. I'd make every ticket $10, but we'd be up there with a megaphone and a flashlight with some colored paper over it."
The concert industry has been impervious to the recession and high ticket prices over the years. Last year in North America, the average box-office gross was up 18% and the average attendance up 6.3%, according to Billboard magazine.



But with the economic news getting worse by the day, artists and concert promoters are trying to make sure fans come out to the stadiums, arenas and concert halls this year by offering ticket deals and other incentives.
No Doubt is giving away a digital download of their entire catalog in exchange for the purchase of a premium ticket ($42.50 before taxes and fees). Coldplay plans to give concertgoers a free live album, while U2 is pricing at least 10,000 tickets to every show in the $30 range (though the top price will still cost a hefty $250 a ticket). And alt-country star Lucinda Williams, also worried about the economy and miffed about fees tacked on to her concert tickets, is offering a credit on concert merchandise, about $7 on clothing and $5 on CDs, and on merchandise on her online store, lucindawilliams.com. The offer is through July 31 to accommodate people who attended her shows before the announcement.
"I understand that this may only be a small gesture and in no way solves the problem long-term, but I feel that it is important to try and do something to make it a little easier during this time," she said in a statement.
Promoters are also offering deals. The Stagecoach country music festival in Indio, Calif., (Kenny Chesney, Brad Paisley and more) cut the cost of two-day passes to $99 from $167 two years ago. Two other popular summer festivals, Bonnaroo and Coachella, are offering tickets on layaway.
Summer is a busy time for the concert business. Live Nation, the world's largest promoter, estimates that more than 50% of its annual profit comes in the summer months.
But with this year's economic uncertainty, promoters could have a tougher time filling seats.
"In a crowded marketplace in difficult economic times, you want your show or event to stand out as something people recognize as a deal," said Gary Bongiovanni, editor-in-chief of the concert industry publication Pollstar.
Rocker Stevie Nicks, who's currently on a reunion tour with Fleetwood Mac, said times are so bad, the band doesn't know if it can afford to go overseas: "It's so expensive to do that that you put people out of business to go play for them. It's affecting everybody."
Live Nation offers a $10 Tuesday promotion for some shows and is expanding its four-pack plan, where fans can buy four tickets for the price of three. Last year, Live Nation offered the four-pack deal at 66% of concerts in the venues it owns. This year, Live Nation plans to expand it to at least 75%.
"Through this we're saying, 'If you reward us by bringing your friends, we'll reward you by bringing you a cheaper ticket,'" said Jason Garner, Live Nation's CEO for global music.


1. Has/will the tough economic times stopped you from purchasing a $75 concert ticket to a show you really want to see?




2. Do you think artists should reduce the price of their shows when so many people are struggling to pay their bills?






3. Has your family given up seeing a show they really wanted to see because of these tough economic times?






4. Do you think concerts and shows are priced reasonable?


























Monday, February 6, 2012

Ketchup and Utility??

Read the article below and answer the questions as blog entries.


PORTLAND, Ore. — For decades there was only one way to use the humble ketchup packet, and it was messy. Now, thanks to a redesign by Heinz, fast-food lovers have a choice: the traditional squeeze play — or the option to dunk.


You want fries with that, in the minivan? No problem.

The redesigned ketchup pack, unveiled Thursday by H.J. Heinz Co., is shaped like a shallow cup. The top can be peeled back for dipping, or the end can be torn off for squeezing. It holds three times as much ketchup as a traditional packet.

"The packet has long been the bane of our consumers," said Dave Ciesinski, vice president of Heinz Ketchup. "The biggest complaint is there is no way to dip and eat it on-the-go."

Heinz struggled for years to develop a container that lets diners dip or squeeze, and to produce it at a cost that is acceptable to its restaurant customers.

Designers found that what worked at a table didn't work where many people use ketchup packets: in the car. So two years ago, Heinz bought the design team a used minivan to give their ideas real road tests.

The team studied what each passenger needed. The driver wanted something could sit on the armrest. Passengers wanted the choice of squeezing or dunking. Moms everywhere wanted a packet that held enough ketchup for the meal and didn't squirt onto clothes so easily.

Heinz is rolling out the new packs this fall at select fast-food restaurants nationwide. It will continue to sell the traditional packets.

The company said it is still working out prices with customers. But the new packet should cost only a little more, even though it holds much more ketchup.

Heinz is by far the biggest ketchup maker. About half of its ketchup is sold in stores and the other half is sold to the food service industry through its exclusive contracts with chains like Burger King and Wendy's.

McDonald's, the nation's largest burger chain, does only limited business with Heinz.

Heinz sells more than 11 billion ketchup packets every year. But neither the ketchup maker nor the major chains would say who plans to carry the new design.

Customers may force the issue.

Rants about the messy packs have helped spawn hundreds of anti-ketchup-packet groups on Facebook.

Matt Kurtz, a 22-year-old student in New York, has drawn 269 members to the group he started after he ripped open a packet too quickly and spilled it on his jeans while on a road trip two years ago.

"That's when I said 'There has to be a better way.'"

At a McDonald's in Covington, Ky., customers said a redesign was overdue.

"You use up a lot of ketchup now with the packets, I always get extra ones," said Skyler McDermott, 29. "Maybe now you won't have to use your teeth to open them."

These issues come as no surprise to Heinz's Ciesinski. "We created the packet in 1968," he said. "Consumer complaints started around 1969


1. This article is an illustration of a company meeting it customer's ________  and __________?







2. Explain two types of utility that Heinz is adding to this product to meet customers needs. Justify your answer.





3. Which of the seven functions of marketing would have been responsible for developing the new package
 
 
 
 
4. What do you think would have been a good way to test the package?