WEEK 8 : MARCH 9

1. WEEK 8 : MARCH 9 MBAX 6860 : Bootstrap Tactics for Entrepreneurs • BOOTSTRAP SELLING BOOTSTRAP

2. OVERVIEW • Difference between marketing & sales • Sales plan • Sales process • Secrets to bootstrap selling • My take on it… • Comments on completed tasks • Week 9 BOOTSTRAP

3. WHAT IS SELLING? 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 BOOTSTRAP

5. WHAT IS MARKETING? 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 BOOTSTRAP

7. DIFFERENCE BETWEEN SALES & MARKETING? BOOTSTRAP

8. DIFFERENCE BETWEEN SALES & MARKETING? • Both PROCESSES • Marketing focuses on the process and Sales focuses on the transaction 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 BOOTSTRAP

10. Uninterested Interested Involved Convinced Committed SALES PROCESS Customer Salesperson • Opening benefit • Investigate • Demonstrate • Obtain Commitment • Get Order BOOTSTRAP

11. SECRETS TO BOOTSTRAP SELLING • Know and develop YOUR style • Asking questions! • Listen! • Provide/offer solutions • Two words : thank you • Referrals, referrals, referrals 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 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?” 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 BOOTSTRAP

15. PROVIDE/OFFER SOLUTIONS • Simple : 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 BOOTSTRAP

16. THANK YOU! • Two very powerful selling words • Opportunities to say, “thanks” • Networking • Prospecting • Post-appointment • Post-purchase • Referrals • Whenever someone helps you and your business! BOOTSTRAP

17. REFERRALS, REFERRALS, REFERRALS • Build 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! 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. BOOTSTRAP Dale Carnegie, How to Win Friends and Influence People, 1936

19. WIN PEOPLE TO YOUR THINKING • The 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. BOOTSTRAP Dale Carnegie, How to Win Friends and Influence People, 1936

20. MY TAKE ON IT… • Ask for the business! • #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 BOOTSTRAP

21. MY TAKE ON IT… • DO NOT separate Sales & Marketing • You’re always selling…so study it and become amazing • Your idea • Your business • Your employees • Your product/service • Your vision 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 BOOTSTRAP

23. TASKS COMMENTS / MKT • Great work! • Business card • Include fax and website • Brochures / ads • Include website – DRIVE people here • Focus on benefits, NOT features • Continue to ask “so what?” • Practice empathy BOOTSTRAP

24. TASKS COMMENTS / MKT • Alignment • Messaging, 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 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 BOOTSTRAP

26. TASKS COMMENTS / MKT • Creating that BUZZ / MOJO • Different 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) BOOTSTRAP

27. COMMENTS FROM FINANCE TASK • Have 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 BOOTSTRAP

28. COMMENTS FROM FINANCE TASK • The 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!!! BOOTSTRAP

29. WEEK 9 • Midterm / International Bootstrapping • Speaker : Troy Gardella • Readings • Tasks (DUE 3/23) • Sales messaging • Prospect development • Selling!! BOOTSTRAP

30. “Choice, not chance, determines one’s destiny.” • --Unknown BOOTSTRAP

31. SALES ROLE-PLAYING • “NOTHING HAPPENS UNTIL SOMETHING IS SOLD….” BOOTSTRAP

32. Uninterested Interested Involved Convinced Committed SALES PROCESS Customer Salesperson • Opening benefit • Investigate • Demonstrate • Obtain Commitment • Get Order BOOTSTRAP

33. SALES ROLE-PLAYING • Demo in class • Role-play • Pair-up • 10 minutes • 5-7 minute pitch • 3-5 minutes of feedback • Switch – salesperson becomes customer • Feedback on: • Overall effectiveness • Probing questions • Listening • Enthusiasm BOOTSTRAP