1 WEEK 8 : MARCH 9 BOOTSTRAP SELLINGMBAX 6860 : Bootstrap Tactics for Entrepreneurs BOOTSTRAP SELLING March 9, 2007 BOOTSTRAP
2 OVERVIEW Difference between marketing & sales Sales plan Sales processSecrets to bootstrap selling My take on it… Comments on completed tasks Week 9 March 9, 2007 BOOTSTRAP
3 WHAT IS SELLING? March 9, 2007 BOOTSTRAP
4 WHAT IS SELLING? “Selling is a process, including a transaction that adds value to the buyer by meeting their needs and results in mutual benefit for the seller and buyer.” Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press March 9, 2007 BOOTSTRAP
5 WHAT IS MARKETING? March 9, 2007 BOOTSTRAP
6 WHAT IS MARKETING? “MARKETING is a PROCESS that includes identifying unmet needs; producing products and services to meet those needs: and pricing, distributing, and promoting those products and services to produce a profit.” Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press March 9, 2007 BOOTSTRAP
7 DIFFERENCE BETWEEN SALES & MARKETING?March 9, 2007 BOOTSTRAP
8 DIFFERENCE BETWEEN SALES & MARKETING?Both PROCESSES Marketing focuses on the process and Sales focuses on the transaction March 9, 2007 BOOTSTRAP
9 SALES PLAN Create one! Sales strategy : Ex = “Make Real Measure products as easy to purchase as they are to use” Answer : who, what, where, when? Prospect, distribution/channels, buying cycle, ID influencers & buyers, etc. (assuming this has already been covered in b-plan or other classes) Create and develop the sales process ID all actions/tasks and flow chart Integrate : Real Measure example March 9, 2007 BOOTSTRAP
10 SALES PROCESS Customer Salesperson Uninterested Interested InvolvedConvinced Committed Opening benefit Investigate Demonstrate Obtain Commitment Get Order March 9, 2007 BOOTSTRAP
11 SECRETS TO BOOTSTRAP SELLINGKnow and develop YOUR style Asking questions! Listen! Provide/offer solutions Two words : thank you Referrals, referrals, referrals March 9, 2007 BOOTSTRAP
12 YOUR STYLE “Styles” (4 of many) (http://www.beilby.com.au/BKP/131.aspx) Ra-ra Thinker Rapport builder Closer There are numerous ways to sell… DO NOT force yourself into a mold Most important = be yourself and genuine then “add” selling skills & techniques March 9, 2007 BOOTSTRAP
13 ART OF THE QUESTION Close-ended (No-no’s)Yes/no questions Tend to shut-down conversation Ex = “Do you like this product?” Open-ended (Now we’re talking!) Tend to promote discussion Probing – enable solutions to objections Ex = “What do you like about this product?” March 9, 2007 BOOTSTRAP
14 LISTEN! You know the cliché : “two ears, one mouth”A skill that can be learned Cited by leaders as #1 skill to successful selling Enables connecting and problem solving…which leads to higher sales March 9, 2007 BOOTSTRAP
15 PROVIDE/OFFER SOLUTIONSSimple : ID customer’s pain (probing questions) and demonstrate product/service as the solution DO Inform/educate the customer Offer a selection of solutions DO NOT Force/push a sale Manipulate data to deceive March 9, 2007 BOOTSTRAP
16 THANK YOU! Two very powerful selling wordsOpportunities to say, “thanks” Networking Prospecting Post-appointment Post-purchase Referrals Whenever someone helps you and your business! March 9, 2007 BOOTSTRAP
17 REFERRALS, REFERRALS, REFERRALSBuild a book of business Farm/mine customer base for additional sales Ask for others who might be interested Discount promotion Benefits Very little money – bootstrap! 5x better closing ratio Less cold-calling More fun! March 9, 2007 BOOTSTRAP
18 6 WAYS TO BE LIKED Become genuinely interested in other people. Smile.Remember that a person's name is to that person the sweetest and most important sound in any language. Be a good listener. Encourage others to talk about themselves. Talk in terms of the other person's interests. Make the other person feel important - and do it sincerely. March 9, 2007 BOOTSTRAP Dale Carnegie, How to Win Friends and Influence People, 1936
19 WIN PEOPLE TO YOUR THINKINGThe only way to get the best of an argument is to avoid it. Show respect for the other person's opinions. Never say, "You're wrong." If you are wrong, admit it quickly and emphatically. Begin in a friendly way. Get the other person saying "yes, yes" immediately. Let the other person do a great deal of the talking. Let the other person feel that the idea is his or hers. Try honestly to see things from the other person's point of view. Be sympathetic with the other person's ideas and desires. Appeal to the nobler motives. Dramatize your ideas. Throw down a challenge. March 9, 2007 BOOTSTRAP Dale Carnegie, How to Win Friends and Influence People, 1936
20 MY TAKE ON IT… Ask for the business! LOVE what you sell#1 error by all salespeople = they don’t ask for the sale!? LOVE what you sell If you’re not enthusiastic about what you’re offering, how will anyone else be? Present enthusiastically March 9, 2007 BOOTSTRAP
21 MY TAKE ON IT… DO NOT separate Sales & MarketingYou’re always selling…so study it and become amazing Your idea Your business Your employees Your product/service Your vision March 9, 2007 BOOTSTRAP
22 MY TAKE ON IT… Be disciplined Focus on SOLVING PROBLEMS, not “selling”Uncover and use your style Study it! Closing techniques Art of asking questions Rapport building IDing buyer types If not your core competency, fill the gap March 9, 2007 BOOTSTRAP
23 TASKS COMMENTS / MKT Great work! Business card Brochures / adsInclude fax and website Brochures / ads Include website – DRIVE people here Focus on benefits, NOT features Continue to ask “so what?” Practice empathy March 9, 2007 BOOTSTRAP
24 TASKS COMMENTS / MKT Alignment Understand most will hire out creativeMessaging, color palette, design Understand most will hire out creative …however, great awareness for you Don’t “maybe”, “perhaps”, “might” – do it! Media – stay focused on regional buys initially – uncover the most targeted rags March 9, 2007 BOOTSTRAP
25 TASKS COMMENTS / MKT Great job on MKT brainstorm!BWMF’s Africa cooking demonstration Bike Bike Rack’s Iron Butt ride Art Frequency’s “We need art like we need H2O” YouTube Game create online DVD trade association Blue Sky’s combustion measurement contest Highland’s mobile lunch office to big companies Packit Gourmet’s sampling tours Sustainable Organics alarming factoid campaign Mayhem’s “official dealer photographer” campaign March 9, 2007 BOOTSTRAP
26 TASKS COMMENTS / MKT Creating that BUZZ / MOJODifferent Word-of-mouth Evocative Blogs Humorous Use of color Influential people A problem to solve Enthusiasm Inspirational story Simple Controversial Trend maker Just plain fun! Read (http://marketing.about.com/od/viralmarketing/a/createbuzz.htm) March 9, 2007 BOOTSTRAP
27 COMMENTS FROM FINANCE TASKHave contingency funding set-up BEFORE it becomes a crisis Alternative funding sources, factoring, bank relationship, etc Organic growth is great…however, risks of growing too slowly Competitors come-in and take over market Miss opportunity to leverage huge launch momentum Less capital for growth – difficult to be opportunistic March 9, 2007 BOOTSTRAP
28 COMMENTS FROM FINANCE TASKThe cultural impact of the mentality “we barely have enough $ to make payroll…” Frugal vs cheap What to communicate and what not to Self-fulfilling prophecy? You’re always increasing finances/capital Selling more stuff Securing outside funding Creative financing Best funding source?….CUSTOMERS!!! March 9, 2007 BOOTSTRAP
29 WEEK 9 Midterm / International Bootstrapping Speaker : Troy GardellaReadings Tasks (DUE 3/23) Sales messaging Prospect development Selling!! March 9, 2007 BOOTSTRAP
30 “Choice, not chance, determines one’s destiny.”--Unknown March 9, 2007 BOOTSTRAP
31 “NOTHING HAPPENS UNTIL SOMETHING IS SOLD….”SALES ROLE-PLAYING “NOTHING HAPPENS UNTIL SOMETHING IS SOLD….” March 9, 2007 BOOTSTRAP
32 SALES PROCESS Customer Salesperson Uninterested Interested InvolvedConvinced Committed Opening benefit Investigate Demonstrate Obtain Commitment Get Order March 9, 2007 BOOTSTRAP
33 SALES ROLE-PLAYING Demo in class Role-play Feedback on: Pair-up10 minutes 5-7 minute pitch 3-5 minutes of feedback Switch – salesperson becomes customer Feedback on: Overall effectiveness Probing questions Listening Enthusiasm March 9, 2007 BOOTSTRAP