sellingnegotiationskills112222233333.ppt

selling

1. 1

2. 2

3. An art of
persuading the
customer to
believe that
purchase of the
product or service
will actually
benefit him or
her.
It is the art of
closing the
deal.
3
Flowofproducts,
services &
informationfrom
sellertobuyerin
exchange of
money.

4. TheMarketingconceptholdsthat
thekeytoachievethe
organizationalgoalsconsistof
companybeingmoreeffective
thancompetitorsincreating,
communicatinganddelivering
customervaluetoit’schosen
targetmarket.
Marketingshowshowtoreachto
theCustomersandbuildlong
lastingrelationships.
TheSellingconceptholdsthat
customersandbusinesses,ifleft
alonewillordinarilynotbuy
enoughoftheorganization’s
products.Theorganizations
musttherefore,undertakean
aggressivesellingandpromotion
effort.
Ultimate result of marketing is
selling.
4

5. 5

6. Modern sales manager have to play the role
of a Team Leader in implementing strategic
plans -
By giving key inputs for developing long term
sales plans
Sales forecasting
Sales force management
Evolving sales & marketing strategies
Building long term relationship with key clients
6

7. Prospecting
and Qualifying
Pre-approach Approach
Presentation
and
demonstration
Overcoming
Objections
Negotiation
Closing and
follow up
After Sales
Services
7

8. Thekeytotheentiresellingconceptiseffectively
understoodwhen,wheretodig&whattolookfor,is
identified.
Findingprospectsfromdifferentsourcesandoutof
diverseoptionsavailableiscalledassuspecting
Suspecting of prospects can be done through:-
-Blogs -Social Networks
-Partner sites -Yellow Pages
-Industrial directories -Telephone Directories
8

9. Aprospectisanindividualororganizationwhoseeksthe
productorserviceasalespersonofferswithanabilityto
payforthesame.
Prospectingisprocessofsegregatingindividualsor
organizationfromthesuspectinglistwhohaveactual
requirementoftheproductorserviceandwhoareableto
buythatproductorservice.
How to reach prospects:
-Direct phone calls -e-mail
-Direct mail -Search marketing
9

10. Introductory
Approach
Product approach
Customer benefit
approach
Question
approach
Praise approach
10
Identification of
major buying
motive that
generally a prospect
has appeal for.
conveyed
sincerely and
subtly

11. The details of the product are communicated
to the customer
AIDA-Formula
Gaining Attention
Holding Interest
Arouse Desire
Obtaining Action
11

12. Features
Advantages
Benefits
Value
12

13. Psychological Resistance-
this includes interference,
preference for established
brands, reluctance to give
up something,
pre-determined ideas etc.
Logical Resistance-
objection to price,
delivery schedule,
product features etc.
13
Two kinds of Resistances

14. Listen
Agree/ restate without any
prejudice
Get clear about the real issue
Discuss solution
Ask for commitments
14

15. Non verbal Yes’s
Summarize
Execution
Successful sales people turn
today’s customers into
tomorrow’s by reinforcing the
purchase decision.
15

16. 16

17. Product Selling Service Selling
17

18. Product selling Vs Service selling
(tangible Vs intangible)
Intangibility is one of several unique challenges in selling a service
versus a product. Consumers buying a service can’t kick the tires-visit
an accountant, dress designer, interior designer, lawyer, and
hairdresser and so on –you can’t try out the service before you buy it.
Service Selling-
#1Strategy-focus on customer need
#2Strategy-focus on your expertise
#3Strategy-focus on value
There are 6 stages to selling the service successfully
18

19. Mc Murry & Arnod’s Classification of Selling
Derch Newton Classification of Selling
Consumer Indirect Selling
Industrial Selling
Group Selling-
Telesales
Franchise Selling
International Selling
Concept Selling
19
DIFFERENT TYPES & CLASSIFICATIONS
OF SELLING

20. GroupA(serviceselling):-
1)Insideordersales-asalespersonwhowritesupsalesordersata
salescounter,orthoseforwardedtothecompanybytelephone,
butisnotrequiredtosellpersuasivelytocustomers.
2)Deliverysales-mainlyengagesindeliveringtheproducts.
3)Outsideordersales-worksontheactualfieldandsellsgoodsor
servicesbymeetingtheprospectivecustomers&closesthedeals.
20

21. 4)MissionarySales-Amissionarytypeofsalesjob
involvesconvincingsomeonewhohasneveruseda
producttobuyit.
5)Technicalsales-emphasizesthetechnical
knowledge;theengineeringsalesperson,who
primarilyactsasaconsultanttotheclient
companies/customers.
21

22. GroupB(Developmentalselling):-
1)Creativeselling(tangibles)-sellingcreative
contenttotheclientwhichistangible.Forex-
interiordesigners,architects,painters.
2)Creativeselling(intangibles)-sellingthe
contentswhicharecreativebutintangiblein
nature.Forex-advertisingagencies.
22

23. GroupC-(Basicallydevelopmentalsellingbutrequiring
unusualcreativity):-
1)Political,indirect,orbackdoorsalesperson-
Sellsbigticketitemsparticularlycommoditiesoritems
withnotrulycompetitivefeatures.Salesare
consummatedthroughrenderinghighlypersonalized
services(whichhavelittleornoconnectionwiththe
product)tokeydecisionmakers-Incustomer
organizations;
23

24. 2)Multiplesales-
involvesthesalesofbigticketitemswherethesales
personmustmakepresentationstoseveral
individualsinthecustomer’sorganization,usuallya
committee,onlyoneofwhichcansay“yes”butallof
whomcansay“no”;forex.Anaccountexecutiveof
anadvertisingagencywhomakespresentationtothe
agencyselectioncommitteesofadvertisers-even
aftertheaccountisobtained,thesalespersonhasto
worktoretainit.
24

25. 1)TradeSelling-Sellingproductstowholesalers
andretailersforresalepurposes.
TradeShow-anexhibitionorfairat
whichmanufacturersdisplaytheir
productsforthebenefitof
visitingwholesalersandretailers.
2) Missionary selling
3) Technical selling
4) New business selling
25

26. 26

27. Indirectsellingisemployedwhenamanufacturer
marketshisproductsthroughanotherfirmthat
actsasthemanufacturer'ssalesintermediary
Examples of indirect sales methods:
-Wholesales
-Retailers (supermarkets, department stores,
multiple stores, independent retailers,
consumer co-operatives)
-Agents
-Distributors and Dealers
27

28. Advantages:-
Indirectsalescanallowacompanytoincreasesalesquicklywithout
havingtohiremoresalespersonnel
Suitableforoverseasmarket
Channelisinexpensive-lowpertransactioncost
Startupcostisless
Disadvantages:-
Manufacturingfirmhastogiveupcontrolofmarketingactivitiesto
otherfirm-
Insomecases,however,indirectsalesmayleadtoreducedcontrolof
thebrandmessageandpoorercustomerservice
Intermediarycaneasilydiscontinuehandlingamanufacturer'sproduct
28

29. IndustrialSelling(businesstobusinessselling)is
thesellingofgoodsandservicesbyonebusinesstoanother.
Industrialgoodsarethoseanindustryusestoproduceanend
productfromoneormorerawmaterials.
MainfeaturesofB2BSelling:-
Thisisonetooneselling&relativelyeasytoidentifyprospects
Highlytrained&professionalpeopleinvolveintheprocess
Buyingprocessiscomplex&mayincludesmanysteps
Longperiodrequiredforprocess
29

30. Amissionarytypeofsalesjob
involvesconvincingsomeone
whohasneverusedaproduct
tobuyit.
Sellingfinancialplanningorlife
insuranceandotherfinancial
productstypifiesthemissionary
salesjob.
Themetaphorofamissionary
involveseducatingsomeone
aboutanideaorconceptand
convincingthemtohavefaithin
thatconcept.
30

31. Selling in a group: It helps you to sell more
One to many: More cost effective
The power of group
Many target customers together
31

32. Telesalesisaprocessthatisfollowedtogenerateinterestinthe
productsandservicesthatyourbusinessoffersandisusedto
provideinformationtoconsumers.
Telesalesisaserviceactivitythatyouusetosellyourproductsand
servicestocustomersdirectlyoverthetelephone.Intelesales,no
furthercontactisrequiredandtheentiresellingprocess,including
thepaymenttransaction,canbecompletedduringasingle
telephonecall.
Challenge-"normal"salespresentationinvolvesvisualcontact,
whichencompassesbodylanguage,facialexpressionsandother
nonverbalcues.Thereisalsonotimelimittoanormalsales
presentationallowthecustomerandsalespersontoworkfreeof
heavytimepressurewhereasmanytelesalesroleshaveanACD
(Averagecallduration)between3and10minutesonaverage.
32

33. Tosucceedininternationalsalesyouneedtoknowwhatyouare
doingandwhy.Youalsoneedto:
Understandandapplythebasicsofsellingwhichistrueallover
theworld.
Figureoutwhichbuyingmodetheprospectisin.
Identifyandfocusonreal/actualdecisionmakersandavoidthose
withoutapprovalpower.
Findanadvisortohelpnavigatethroughtheroughwatersof
internationalsales.
Distinguishbetweengoodcustomersandbadcustomers.
Internationalsalesismorechallengingbecauseof:
Culturalissues
Languagebarriers
Governmentregulationsandtariffs
33

34. Do research
Visit the land where you are selling products
Check out competition
Learn the language if possible
Find the people to trust
Seek out the niches (Concentrate on small ponds before
reaching to big oceans)
Scale your knowledge
Stay aware of global trends
Take advantage of stable market
34

35. 35

36. 1.Theydon'tthinkintermsofsalesbutratherintermsofconcretinga
business.
2.Theylistenmorethantheyspeak,gettinganunderstandingofthe
needsofcustomersandthenfindingasolution.
3.Theybuildtheirbusinesses-onecustomeratatimeandthenalways
influencethelastcustomerintomoreandmorecustomers.
4.Theydelivermorethanthepromiseandalwayspromisealot.
5.Theyinvesttheirtimeinthosethingsthatpositivelyaffecttheir
incomeandavoidspendingtimeonthosethingsthatareirrelevant.
6.Theyarealwaysinquestofnew,betterandfasterconducttoincrease
theirsalesefforts.
7.Theyarewillingtoinvestincommunity,relationshipsbuildingand
networking
36

37. 37

38. 38

39. 39
Characterized by two or more interdependent parties who
have a conflict of interest,and who choose to adress that
conflict by striving to reach an agreement through a
process of mutual adjustment of each party’s demand and
concessions
Behavioral definition of negotiation-
The process by which we search for the terms to what we
want from somebody who wants something from us

40. Adialogueordiscussionbetweentwoormorepeople
orparties,intendedtoreachanunderstanding,resolve
pointofdifference,and/orgainadvantageinoutcome
ofdialogue,toproduceanagreementuponcoursesof
action,tobargainforindividualorcollective
advantage,tocraftoutcomestosatisfyvarious
interestsoftwoopponentsinvolvedinnegotiation
process.
Processofexchangingoffersandcounteroffers-
“exchangeofconcessions”-forarrivingata
compromisebywhichbothpartiesreachtoanagreed
positionsandoutcomes.
40

41. Meticulous preparation and planning skills
Expert in forming perceived positive opinion
Knowledge of the subject matter being negotiated
Ability to analyze properly, think clearly and rapidly
under pressure and in the situation of uncertainty
Ability to perceive and exploit power
Professional communication & soft skills
Has to be a very good Listener
Should possess ability to judge the situation with
general intelligence
Analytical skills with convincing power
Ability to estimate& evaluate various options with
multidimensional thinking!
41

42. 42
Red Style
Blue Style
Purple Style

43. 43
They believe manipulation is normal and
they behave as they believe
Main attitudes:
Aggressive
Intimidatory
Manipulatory

44. 44
Looking for both winning of two sides
Main attitudes:
Cooperative
Trusting
Conciliatory

45. 45
Win-Win Approach
“Give me some of what (red style),I will give
you what you want (blue style)”
“Taking while giving”
“It is a two way exchange”

46. DistributiveNegotiation-Opponentscompeteoverthe
fixedsumorvalue.Thekeyquestioniswhowillwinthe
biggerpartofthepie.Againofonepartyismadeatthe
expenseoftheother.
Integrativenegotiation-Thewordintegrativeimplies
somecooperationandhenceofteninvolvesahigher
degreeoftrustandtheformingofmutuallybeneficial
longtermrelationship.Itcanalsoinvolvecreative
problem-solvingthataimstoachievemutualtrustand
gains.Forthesamereasonitisalsocalledwin-
winnegotiation.
46

47. 47
Competitor
•This style is
high in
Assertivenes
s and low in
Cooperative
ness.
Avoider
•This style is
both low in
Assertivenes
s and low in
Cooperative
ness.
Compromiser
•This style is
both
moderate in
Assertivenes
s and
moderate in
Cooperative
ness
Accommodator
•This style is
low in
Assertivenes
s but high in
Cooperative
ness.
Collaborator
•(Win-Win
approach)
•This style is
both high in
Assertivenes
s and high in
Cooperative
ness.
Goal
Collaborative
•Win-Win not
Compromise

48. BATNA–Best Alternative to Negotiated
Agreement
Reservation price: walk away price
ZOPA–Zone of Possible Agreement
Value creation through trade-offs
Real & perceived Negotiating power
48

49. Power
Time
Forces of
Negotiation
Information
Interestinglyenough
themostimportantis
notthePoweritself
buthowitisperceived.
Powerinsomesenseis
similartobeautythat
liesintheeyeofthe
beholder.
Anotherwaytoputit
is,ifyouareperceived
inthepositionof
Power,youhaveit.
49

50. Pre-negotiation-
Planning &
Preparation
Opening
Information
Sharing-
Presenting &
Influencing
Positions
Problem Solving-Looking for possible
agreement & Adjusting the positions
Agreement-
Agreeing solutions &
Closing
50

51. We need to ask our self the following questions
Why we entering into the negotiation?
What are our objective?
Who will we be negotiating with?
When will suit us best to hold the negotiations?
What should be our choice of style?
How high should we pitch our initial demands?
What order should we set for offering our concessions & what else might
we be prepared to include?
Who do we need to include in our team? What will their respective roles
be?
How much time will we need to reserve
What assumptions have we made in our planning?
51

52. Identify the decision maker from the opposing team.
Formalize your objectives in terms of priorities
Establish what their objectives & priorities might be
52

53. Considerallthevariablesintheotherside’scase&estimatethe
probablecosttothemiftheyconcedeanyofthosetoyou.
Finallyvaluethebenefitsoftheotherside’svariablestoyou
Ifbothsidesaretomovefromtheirstartingpositionbytrading
concessions,theinitialofferyouopenwith-mustbemorefavorable
toyouthanwhereyouhopetosettleeventually.
Otherwiseyouwillbehavingnothingtoexchange
Henceinsettingoutyouropeninggambit,youneedtoincludea
negotiatingmargin&aimhigh
53

54. The more you explore, the less the other side will be able or get
opportunity to explore your case or position and hence more
you will be able to control the course of the discussion.
In the due course of probing, try to obtain the full shopping
listof items/issues they want to negotiate.
Listen Carefully
what they say
Listen how
they say it
Observe &
Analyze
54

55. Deadlockis one of the most counterproductive and
undesirable of all the situations and conclusions of
negotiation that can result in breakdown in negotiation.
The negotiators should always be alert for its possibilities
and try to avoid it.
The only exception is where the negotiator use deadlock
as a tactic to galvanize the opponent to take the
favourable action.
Breaking the deadlock-
A)Try to avoid the immovable positions.
B)Bridging the GAP
55

56. Raise strong arguments
Present weaker arguments
Finally come up with
“Sledgehammer”
56

57. Anexcellentnegotiationpractice/tacticisto:
1)Summarizefromtimetotime,whatyourdiscussion
hascovered.
2)Probeambiguitiesbeforetheybecome
misunderstandings.
Italsogivestimefornewideas&re-appraisalofoldones.
Thisactsasarecess.
57

58. GoldenRule-Goalcommitmentnotonly
agreement.
Useapauseinyourspeechpriortomakingany
offer-betweenthelines.
Ifyoucanmeet,acceptordeliverthefollowing
conditions1…,2…,3…,n…,wewillbe
preparedtoconsiderofferingthefollowing:
1…,2…,and3…,n…..Ourreasonfordoingso
isa…,b…,c…,…z…
58

59. Difficultpeopleexisteverywhere.They
comeineveryvarietyandno
workplaceiswithoutthem.How
difficultapersonisforyoutodealwith
dependsonyourself-esteem,yourself-
confidenceandyourprofessionalskills
andcourage.
It’sfarbettertoaddressthedifficult
personwhileyoucanmaintainsome
objectivity,patienceandemotional
control.
Types of Difficult People-
The “Sherman Tank”
The “Exploder”
The “Complainer”
The "Clam"
The “Wet Blanket”
The “Know-It-All”
The “Staller”
59

60. Idea Opponent-
An idea opponent is
one who disagrees on a
particular issue or
alternative on the basis
of rational and logical
facts.
Visceral Opponent-
Visceral opponent is an
emotional adversary,
who not only disagrees
with your point of view,
but also as a human
being.
60

61. Ethicsisasystemofmoralprinciplesorvalues.
Typically,thesepeoplefeelthatnegotiationiswhata
salespersondoestogetthemtobuyortrytopushoffhis/her
productsandservices.Butthisisnotthereality.Infact,every
oneofusnegotiatesinalmostallwalksofourdaytodaylife.
Thereare9tipswillensurethatyoubuildallyour
negotiationsonthefoundationofethics--whichwill,bythe
way,increaseyourpossibilityofachievingwin-winoutcomes
61