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ENGR 134 / 234Selling High Tech Products

Social Obligations &Reciprocity

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4/2/2012 ENGR191 1 - Introduction 2

Todays Roadmap

Yes Readings

Guerrilla Selling Making Enchantment Endure

InfoChachkie Readings

Guest Speaker tonight: Rich Block, CEO SB Zoo Buchanan 1930 5:00

Quiz scores posted to Central Desktop

https://ucsb.centraldesktop.com/engr134/Click Files and Discussions

ENGR134 is user name and password

Email [email protected] if you have access issues
https://ucsb.centraldesktop.com/engr134/mailto:[email protected]:[email protected]://ucsb.centraldesktop.com/engr134/

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ENGR185B/285B Week 2 Lecture 1 3

Job Opportunity

Sales Engineer (the presales, technical type that supports our sales

effort) Support Engineer (entry level tech support type with good technical

skills)

Inside Sales Representative (handles inbound leads, follows salesprocess, good communication skills necessary)

Downtown Santa Barbara location

Desirable skills include: Windows, Mac, Linux, Internet,

Salesforce.com, Technical interest/skills a plusSalary plus performance based compensation

Contact: Chuck Massanari [email protected] aregraduating this Spring
mailto:[email protected]:[email protected]

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Internship Opportunity - BioIQ

Roles and Responsibilities Include, but are Not Limited to:

Research, analyze, and provide reports on the healthcare channels and opportunities Communicate with clients and users (in person, phone, and email)

Support relationships with current clients and prospects Assist with ongoing operational tasks Assist in product development and usability studies Take initiative to pursue new projects as they arise

BioIQ is an exciting young healthcare IT company located in downtown Santa Barbara. We arecurrently looking for an individual to play a key role in the growth of the company and makemajor contributions as a member of the BioIQ team.

Start Date: March 2012

Hours: 15-20 hrs/week

Compensation: This is a paid intern position. We understand your time is valuable.

Deadline: Please submit resumes by Monday February 6 th to Jorge Solis [email protected] the subject Internship 2012 and your name.
mailto:[email protected]:[email protected]

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Copyright 2012 - Proprietary and Confidentialwww.ringrevenue.com

RingRevenue Current Open Jobs:

Software Engineer

Support / QA Software Engineer

Software Engineer Intern

Administrative & Accounting Intern

Were always hiring great people!To learn more about joining our team

visit: http://www.ringrevenue.com/corporate/about/jobs
http://www.ringrevenue.com/corporate/about/jobshttp://www.ringrevenue.com/corporate/about/jobs

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ENGR 134 / 234

Quiz #3

No quiz if you are late

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ENGR185B/285B 6 Sales and Marketing

Entrepreneurial Challenge: Moores Crossing the Chasm

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Where Do They Fall?

Elise Arthurs

John I Larry l The Smiths

STP = Segment, Target, Position

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Mohr, Sengupta, Slater 2005 9

Market Development Model

EarlyMarket

Chasm Bowling Alley

Establish a niche beachhead

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Computer Motion Falling Into the Chasm

Note: I share in all the credit and blame I was part of the team

First generation product: NASA robotic arm revised to hold laparoscope

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Note: I share in all the credit and blame I was part of the team

First Generation

NASA robotic arm revised to hold laparoscope

Task previously done by a skilled surgical nurse / tech

Innovators loved the idea of a robot in the OR

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Second Generation

Foot pedal replaced with voice recognition Voice-controlled robot in OR is very sexy

More buzz and a few Early Adopter sales

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Second Generation

Foot pedal replaced with voice recognition Voice-controlled robot in OR is very sexy

More buzz and a few Early Adopter sales

Took focus away from Pragmatists:

MOST surgeons were happy with a human holding the laparoscope Nurses HATED the robot; used the hand-controller

Most robots were used by one Surgeon per hospital collected a lot of dust

The baby was ugly

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Third Generation

Brilliant case of doing the best with what wehad

Three robotic arms and bicycle brakes

Focused on wrong early adopters MIS cardiac robotic

Life and death, high-profile procedures

FDA said No way so we took off for Europe

Some early adopter sales but difficult to repeat

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Third Generation

Interface was difficult to usenot Intuitive Forced to work within the constraints of NASA robot

A few Early Adopter surgeons mastered theinterface

Most would not invest the required time

DOS vs. Windows

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Lessons Learned

Pulled out a victory - $148M exit

Intellectual Property saved the stakeholders equity

Intuitive Surgical focused on Pragmatic, high-volume procedures

Fast FDA clearance, broad market acceptance

Honestly assess degree you are locked-intoan inferior technology

See your value proposition through the eyesof Pragmatists

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Entrepreneurial Challenge: Moores Crossing the Chasm

Computer Motions

Customers

Intuitive Surgicals

Customers

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Guerilla Selling

Gs are principled salespeople

Plan carefully Systematic

Courteous, direct, businesslike

Must be comfortable with lower status JG: keeping his ego in check

Care about prospects businessand personal lives

Assume prospects are experts, rely on them for advice

Determine: Need, Budget and Commitment level

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Guerilla Selling

Selling Stages

NaB and CaPTuRe Need

Must do up-front

If not match, ask for referrals and head out of Dodge Budget

Commitment

Objections are buying signs

Feel, felt, found

Invert the objection, Your windows are hard to open and close

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Guerilla Selling

NaB and CaPTuRe

Presentation Do I ask questions that show I care?

Do I really listen to the answers?

Do I give my prospect control over sales meetings?

Do I act professionally? Do I relate to my prospect on their terms?

Transaction Let customer close you; difficult to pull off

Reward Let customers hit the jackpot

Reward customers with something extra - recency

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Guerilla Selling

Nine Word Credo

1. CommitmentGs are deadly serious2. InvestmentGs invest time, energy and money

3. Consistent Poor selling done consistently beats great

selling done sporadically4. ConfidentGs know they are selling quality

5. Patient Needs eventually arise

Oracle

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Guerilla Selling

Nine Word Credo

7. Assortment Offer variety8. Subsequent 60% of time

focused on existing customers

9. ConvenientGs make themselves buyer friendly Take care of all paperwork do all the heavy lifting

10. ExcitementGs areenthusiastic; militantly optimistic

Doing something differently w/ less

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4/2/2012 ENGR191 1 23

Is fast talking effective persuasiontechnique?

Depends on the audience

Counter-attitudinal fast talk moreeffective; less time to dispute

If people agree with you slow down

Bottom line should you cuss quickly withdisagreeable people?

Cussing Quickly

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Science of Persuasion

Weapons of Influence

Instant understanding = sustained survival

Tribal shortcuts that bind societies together

Judgmental Heuristics: expensive = quality

popular = good

expert = valued opinion

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25

Science of Persuasion

Weapons of Influence

Not Machiavellian

Inoculation from manipulation

Insights into selling process Who was William Thompson?

"Have you confidence in me to

trust me with your watch until

tomorrow?"

Understood the power of reciprocity

Christmas cards from strangers

Much obliged = Thank youThe Original Con Man

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4/2/2012 Source: Kevin Bebak, student 26

Combining Persuasion Techniques

Why were so many smart people duped by Madoff?

The combination for four techniques:

ScarcityThe fund is closedbut maybe we can get you in

Authority Former Chairmen of NASDAQ

Social Proof Lots of other smart people were doing it

LikingBernie was likeable, he was liked his clients

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27

Yes! Creating Social Obligations - Reciprocity

Reciprocity Quid pro quo = sustained survival

Starbucks - pay it forward 490 customers in a row

Many paid more than next persons tab

Pool of money collected and donated to charity

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28


Reciprocity Our gift to you

Return address labels 35% vs. 18%

Flowers you dont want Reciprocity overwhelms Liking

Applicability to selling? 1st give something OF WORTH

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4/2/2012 ENGR191 1 29

Object Lesson Social Obligation

Did creating a social obligation work?

What happened?

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4/2/2012 ENGR191 1 30


Remind recipients of the gifts value

Receive a $250 security program at no cost to you

Raffle tickets + unsolicited gift of a coke: % increase?

100% - twice as many tickets purchased

Why are handwritten notes effective? Are Post-It notes effective?

Cover letter and survey = 36% completion

Cover letter, survey & handwritten message = 48% completion

Cover letter, survey & handwritten Post-It note = 75% completion

Even blank Post-It Note = 69% completion

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4/2/2012 ENGR191 1 31


What are the characteristics ofeffective gifts?

Significant, unexpected & personalized

One mint = 3.3% tip increase

Two mints = 14.1% tip increase

One mintwait for itsecond mint = 23% tip increase

What is the Rejection and Retreat method of influence?

Boy Scout - $10 circus ticket followed by

$5 candy bar One concession deserves another & Perceptual

Contrasts

Heads I win, tails you lose

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4/2/2012 ENGR191 1 32


Reciprocity vs. incentives hotel towels

Well donate $ ifyou reuse = 0% increase in compliance Cite donation first, then ask for cooperation - 45% higher reuse

First offer unconditional help, then appeal to reciprocity

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4/2/2012 ENGR191 1 33


Both bread to recipient, wine togiver

Recipient values favormore than

giver, immediately after receipt

Recipient values favorless, over

time

Giver values favormore over time

Restate value of prior favor

How is your job (that I helped

you get) going?

Are favors like Bread or Wine?

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4/2/2012 ENGR191 1 34

Enchantment: Making It Endure

Recreational Equipment Cooperative (REI)

3.5M active members

> 100 stores

Travel services

Customers internalizedREIs values

What is the story with the ice axe?

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4/2/2012 ENGR191 1 35

Stages of Internalization

Conformity Not enchantment

Wont last without force, unless

Identification

Common, shared interests

Seek Enchanters approval

Internalization

Enchantment Beliefs = feelings

Anyone? Bueller? Bueller? Bueller?

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4/2/2012 ENGR191 1 - Introduction 36

Making Enchantment Endure

Goal of enchantment is a long-lasting change

Separate believers to avoid pluralistic ignorance

Set up satellite office mile from headquarters

Catalyze Commitment Tell others about a persons commitment

Invoke reciprocity

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4/2/2012 ENGR191 1 37

Reciprocity Helps Enchantment Endure

Give:

With joy

Early

Often & generously Unexpectedly

Ask for reciprocation

I know youd do the same for me

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4/2/2012 ENGR191 1 38

Community / Ecosystem Participants

Entice people to share in your success

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4/2/2012 ENGR191 1 39

Diverse Teams

Various points of view keep cause fresh and relevant

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4/2/2012 ENGR191 1 40

Promote Spreadability

What does this mean?

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AssignmentsNext Class Required Reading

Enchantment

Chapter 8: How To Use Push Technology p. 112

Yes!

Chapters 14 through 19, 49, Appendix p. 225 227

PsyBlog Email of Face-to-Face Communications?

infoChachkie Reader

Next Class Object Lesson Labeling Technique or Inconvenience a Rival you choose

Next Class Recommended Reading

Maximize Your Exit & Headlines Are Written By The Hopeless

Documents

191 Week 4 Lecture 4 TD 1-12