Sales and Acquisition Replacement Assignment

August 11, 2012

Sales and Acquisition Replacement Assignment

Approach of Sales conversations
8/11/2012 Student Marco Engler

Page 0 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

1 Executive Summary
Salesmen have to be aware of changes, behaviours and their environment. They need to be trustful, reliable and convincible for potential clients. Several important facts like the location, the dress code and the politeness can be important for a successful contract formation. The way of selling in all segments, at least, within the business to business market is comparable. The circumstances like the location and the market- specific procedure are slightly different and results in experiences and typical, social and cultural behaviours and customs. These results in different approaches for every company but the main aspects of selling are similar. Companies have to be trustful and can reach it with transparency and a kind ambience. ObjectFab is more flexible than SNT in dealing with customers wishes and needs. The approach is therefore slightly different. ObjectFab is more interested in their own know-how while SNT is using the name and references. This is a result in the company sizes and their target groups. SNT is interested in keeping the contacts on running and ObjectFab is developing software for a changing customer base. Therefore, ObjectFab has more invest in preparation and cannot use a long customer relationship to convince the client..

Page 1 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Preface

The aim of the report is to evaluate the approach of a sales conversation with reference of two different companies. These companies are operating in different segments and with a different focus on potential customers. Thus, there is a possibility to cover up a broader basis of behaviours in sales conversations. I worked out a questionnaire and asked business people to get information about the preparations, contents, results, experiences, psychological aspects and cultural differences. I received information from two people and wrote a report about 5 till eight pages, rather than approximately 1 500 words. SNT sent me a longer email with answers and ObjectFabs CEO Steffen Gemkow answered my questions via a conversation. In fact, this report is just slightly different from the original task. I did not observe an interview but I asked several questions about experiences. The people who were asked were Ariane Fhrer from SNT and Steffen Gemkow from ObjectFab. However, I did some research in the internet to get more informationanout other segments that supported a clearer view on things. The report is based on the knowledge of the last year International Business Management Studies and the contents and experiences of the Sales and Acquisition classes.

Marco Engler,

Leeuwarden, 11th November 2011

Page 2 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Table of Contents
1 2 3 4 Executive Summary .....................................................................................................................1 Preface........................................................................................................................................2 Introduction ................................................................................................................................4 Common rules of business and sales meetings ............................................................................5 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 5 6 Approach .............................................................................................................................5 Preparation .........................................................................................................................5 Location ..............................................................................................................................6 Psychological Aspects ..........................................................................................................7 Presence..............................................................................................................................7 Behaviour ............................................................................................................................8 Identification .......................................................................................................................9 Duration ..............................................................................................................................9 Convincing...........................................................................................................................9 Mind-set ..............................................................................................................................9

Conclusion ................................................................................................................................ 10 Questionnaires.......................................................................................................................... 11

Page 3 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Introduction

This report is about psychological aspects and cultural differences as well as preparations, contents, results, experiences of sales meetings. The interview is based on some information of filled in questionnaires from business people. The questions were thankfully answered by Mr Steffen Gemkow from ObjectFab and Ariane Fhrer from SNT. ObjectFab is a Germany software solution producer and SNT is offering telephone and other communication services for business clients. The report gives an overview about the most important facts which affects a sales meeting and there approaches how to deal with it. Afterwards, the report concludes with a conclusion. Salesmen have to be well prepared for sales meetings. This means they have to be able to give answers of everything the potential customer wants to know. Even if the salesman is just engaged since a couple of weeks, he has to perform the company as best as possible. He or she has also be prepared for all kinds of questions about the products, the services, the company itself, experiences, internal and external facts which affects the company and several other things. Moreover, salesmen have to appeal honestly and trustful to create a bond with the potential customers. Therefore, there is a certain level of friendliness needed. Time after time, the relationship between customers and company can changes. The report gives an overview of important facts based on experiences and concludes with a summary.

Page 4 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Common rules of business and sales meetings

According to the questionnaires there are some fields which have to be considered. There are different ways of selling. These ways depends on cultural behaviours, the kind of business relationship and the character of the participants. At first, we are looking for the general circumstances.

4.1 Approach
Both companies are dealing with business clients. The main difference is that ObjectFab`s business segment is more difficult than the product range of SNT. The software developer knows that their clients are not much involved with the process. This can be a benefit but also result in a lack of trust. The know-how is in this market segment thus much more important than the psychological approach; in contrast to SNT; which are offering customer oriented service. The first step is mostly done by the client. Both companies see it as a benefit as the customers has to check the market and find a point which convinces him to get in contact. In this case, the people are interested in anything which makes the image of a company trustful or attractive. Another aspect is that these people know already something about the company like references. ObjectFab is working in a much shorter term with the clients than SNT. ObjectFab is developing software and hand it out respectively, in some cases, accompany the project for a certain time.

4.2 Preparation
SNT could not give me clear answer how many people are involved. ObjectFab uses for the first sales conversation one chief developer to get a closer view of what the customer wants and needs. There is also a project manager and a secretarial that makes notes. They are creating a functional specification documents which includes the most important points of the project, the timeline and a forecast of working hours. Which documents is used as a binding contract and has to be signed.

Page 5 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

4.3 Location
I recognized that there are a couple of companies which wants to perform sales conversations at their own place. People told me that there is a big advantage if the conversations taking place at the own company. In this case, the businesses are able to convince the company in both, the range of products and services and the working circumstances as well. The potential customers have to feel comfortable and can be possibly surprised if he or she sees the ambience, the first own perceptions and especially the working conditions. A company which receipts a potential customer takes charge for them and can be convincing through a good service. A lot of companies are trying to convince their partners with a corporate image, the ambience and the presence. This procedure is not depending on several businesses or market segments. Especially smaller companies have problems with the capacity. On the other hand, some companies respectively salesmen feeling uncomfortable by taking charge of bigger companies representatives. I have applied at SNT a few years before I have come to Stenden. All applicants were concentrated in the huge canteen. In this way, SNT could ensure that the visitors getting in contact with workers and paying money for lunch. This seemed quite confident, because they were not concerned that we could badly influenced.. In contrast to SNT, which prefer to take the own location; ObjectFab can be more flexible and arrange and deal with last- minute changes and wishes of the customer.

Page 6 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

4.4 Psychological Aspects

I worked in a company which was selling all kinds of software. There were small business clients like Universities which were interested in math calculating or graph drawing software and also bigger one which needed much more complex software. The problem in this market segment is that the potential clients need to understand what it is worth. The software was developed and written on a disc but the clients cannot understand why they have to pay 10,000 or 20,000 for a silver disc. Therefore, such companies put a lot of effort in marketing. They are producing a big colourful box for the DVD, there is a brochure in it or small business presents as well. People feel better if they can see and touch it. The costs for the box and the brochure or the business gifts are not higher than 60 but the clients are much more satisfied. This way of presenting is a kind of a benefit. This leads to the fact and also a quotation of one of my former docents that salesmen have much more to deal with desires than needs. Sales conversations are not related to rationality but to desires and wishes. The companies are also using female attractiveness even if they try to highlight that it has nothing to do with a perfidy way of convincing. SNT was not speaking about costs but for ObjectFab costs are an important fact and are discussed quietly direct in sales conversations. The transparency is quiet important for a company. The biggest plus is that the potential clients know who they are, particularly if they do the first step. The minus is that competitors can also gain important informations.

4.5 Presence
The salesmen have to present the company and also their image. The vocabulary, the dress code and the behaviour are the most important things. A sales conversation is meeting of two or more equal parties. Therefore, it is necessary that every party is not in inferior position or segregated. The segregation could take place with differentiation in dress codes, vocabulary or the behaviour, instance of unknown cultural customs or politeness. People are very different and needs a certain level of awareness and interpretation skill during a conversation. Salesmen have to be aware of changes in the behaviour of the conversation part must get proactive if the people getting borrowed or annoyed. To present the company there are no using common doctrines or guidelines of certain experts like Edward Bernays.
Page 7 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

4.6 Behaviour
The behaviour is slightly the same like the presence. During my research, I have found out that people would recommend copying the behaviour of the other conversation party. This seems trustfully and politely for the other company. Instance of be aware if the partners take a cup in his or her hands do it as well. This contradicts the mentioned fact that every party has to be equally but especially for new comers is it a good hint. The salesmen have to be aware of the partners positioning. He or she has to recognize whether the people to whom I am negotiating and selling are an offensive or a defensive person is. The salesmen have to decide which kind of strategy is needed. The companies are not confronted with strengths or benefits of competitors, especially because the potential clients do the first step.

Page 8 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

4.7 Identification
During our communication plan, we recognized that the employees perception is much worse than the perception of the customers. We can take it as a general view or a special problem of ING but nevertheless. The employees are more focused on the internal environment of a company. They are the first people which recognizing if anything is going wrong. The customers and potential partners getting only an external picture of the company`s image. Therefore, it is the task for every salesman or woman to hide or ignore problems within the working place and deliver the most positive company image. People want companies which are going straight ahead in one direction. The identification level must be very high for salesmen.

4.8 Duration
Companies can get in contact with potential clients in two ways. Either they are proactive or the customer takes the first steps. Instance of SNT, the first step comes from the clients. Therefore there is a benefit for SNT. The clients looked for good companies and contact one or more than one to get an offer. This means they are slightly convinced from the company. The duration of starting a partnership is different. SNT told me that there are around three or four meetings or arrangements to sign up the contract in Germany. SNT is also able to offer standard offers for smaller clients. The duration between getting in contract and singing up a contract are different. It can be expected that the average duration exceeds more or less one month.

4.9 Convincing
The companies try to convince the potential customers with a program of taking charge and underlines former projects with normal visualisations like PowerPoint. ObjectFab is also using chosen project and applications to make the software more reliable and visible.

4.10 Mind-set
Every side wants to get the best conditions for themselves. The main problem is there is, in particularly in the private sector, a huge lack trust. The task of salesmen is to sell everything. The problem is that mostly salesmen are not interested in the desires or needs of their clients. The main task is to sell anything for the best conditions to the customers. The mind- set seems not fair because people are not able to understand and know all facts of the basics of other topics like insurances or legal regulations. The models, especially the AIDA model are based on emotions to catch interest and attention. In my mind, I would prefer to be credible, honestly, rational and objective. I assume customer are able to recognize it and are much for convinced. In particularly because there comes no time a rude awakening.

Page 9 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Conclusion

Salesmen have to be aware of changes, behaviours and their environment. They need to be trustful and convincible for potential clients. Several important facts like the location, the dress code and the politeness can be important for a successful contract formation. The way of selling in all segments, at least, within the business to business market is comparable. The circumstances like the location and the market- specific procedure are slightly different and results in experiences and typical, social and cultural behaviours and customs. This result in different approaches for every company but the main aspects of selling is similar. Companies have to be trustful and can reach it with transparency and a kind ambience. Furthermore, a salesman has to be able to deal with all kinds of customers and is a reprehensive of a company. The company`s image is more important than the own mind- set and perception. A common problem of selling is the fact that a lot of salesmen are bonded on final profits and not on the needs of customers. So, they have to sell everything even if the customer needs a smaller volume of a product.

Page 10 of 11

Sales and Acquisition Replacement Assignment

August 11, 2012

Questionnaires

Approach: What is more important? Phycology or know how? Who are more important? Current or potential customers? Do you prefer a neutral location or own house or the customer location? Who does the first step your client or you? Is it a benefit? ObjectFab: How many clients do you have simultaneously? On which kind of customers are you focused?

Preparation How many people are involved in your sales conversations? Do you try to use female attractiveness to convince clients? How do you prepare for sales conversations?

Psychology Which type of benefits do you use? Which kind of corporate identity do you use? When do you speak about the costs?

Behaviours Are you confronted with the strengths of you competitors? Do you use any guidelines how to communicate yourself? Do you notice disagreeableness or claims if the company contacts you some years later? How do you deal with different behaviours of customers?

Convincing Which kind of visualisation to highlight profitability do you use? How much time do you need to convince customers? What do you think? How much transparency can you afford? How much time do you need for a sales conversation?

Page 11 of 11