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Selling & negotiation skills

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Published on February 17, 2014

Author: VishwakarmaP

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Know the secrets behind mastering the art of selling & negotiation.
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BY PROF. RAHUL JADHAV & PROF. PRASHANT CHAUDHARY SINHGAD SCHOOL OF BUSINESS STUDIES, PUNE FOR VISHWAKARMA PUBLICATIONS (www.vpindia.co.in) 1

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 2

 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.  Flow of products, services & information from seller to buyer in exchange of money. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 3

 The Marketing concept holds that the key to achieve the organizational goals consist of company being more effective than competitors in creating, communicating and delivering customer value to it’s chosen target market.  The Selling concept holds that customers and businesses, if left alone will ordinarily not buy enough of the organization’s products. The organizations must therefore, undertake an aggressive selling and promotion effort.  Marketing shows how to reach to the Customers and build long lasting relationships.  Ultimate result of marketing is selling. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 4

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 5

 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 Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 6

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 7

 The key to the entire selling concept is effectively understood when, where to dig & what to look for, is identified.  Finding prospects from different sources and out of diverse options available is called as suspecting  Suspecting of prospects can be done through:- Blogs - Social Networks - Partner sites - Yellow Pages - Industrial directories - Telephone Directories Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 8

A prospect is an individual or organization who seeks the product or service a sales person offers with an ability to pay for the same.  Prospecting is process of segregating individuals or organization from the suspecting list who have actual requirement of the product or service and who are able to buy that product or service.  How to reach prospects: - Direct phone calls - Direct mail - e-mail - Search marketing Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 9

Identification of major buying motive that generally a prospect has appeal for. conveyed sincerely and subtly Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 10

The details of the product are communicated to the customer  AIDA- Formula Gaining Attention Holding Interest Arouse Desire Obtaining Action Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 11

Features  Advantages  Benefits  Value  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 12

Two kinds of Resistances  Psychological Resistancethis includes interference, preference for established brands, reluctance to give up something, pre-determined ideas etc.  Logical Resistanceobjection to price, delivery schedule, product features etc. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 13

Listen  Agree/ restate without any prejudice  Get clear about the real issue  Discuss solution  Ask for commitments  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 14

Non verbal Yes’s  Summarize  Execution  Successful sales people turn today’s customers into tomorrow’s by reinforcing the purchase decision.  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 15

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 16

 Product Selling  Service Selling Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 17

 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#1 Strategy- focus on customer need #2 Strategy- focus on your expertise #3 Strategy- focus on value There are 6 stages to selling the service successfully Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 18

DIFFERENT TYPES & CLASSIFICATIONS OF SELLING 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  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 19

 Group A (service selling):1) Inside order sales- a salesperson who writes up sales orders at a sales counter, or those forwarded to the company by telephone, but is not required to sell persuasively to customers. 2) Delivery sales- mainly engages in delivering the products. 3) Outside order sales- works on the actual field and sells goods or services by meeting the prospective customers & closes the deals. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 20

4) Missionary Sales- A missionary type of sales job involves convincing someone who has never used a product to buy it. 5) Technical sales- emphasizes the technical knowledge; the engineering sales person, who primarily acts as a consultant to the client companies/ customers. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 21

Group B (Developmental selling) :1) Creative selling (tangibles) - selling creative content to the client which is tangible. For exinterior designers, architects, painters. 2) Creative selling (intangibles) - selling the contents which are creative but intangible in nature. For ex- advertising agencies. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 22

Group C- (Basically developmental selling but requiring unusual creativity) :1) Political, indirect, or back door sales personSells big ticket items particularly commodities or items with no truly competitive features. Sales are consummated through rendering highly personalized services (which have little or no connection with the product) to key decision makers- In customer organizations; Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 23

2) Multiple sales - involves the sales of big ticket items where the sales person must make presentations to several individuals in the customer’s organization, usually a committee, only one of which can say “yes” but all of whom can say “no”; for ex. An account executive of an advertising agency who makes presentation to the agency selection committees of advertisers- even after the account is obtained, the sales person has to work to retain it. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 24

1) Trade Selling- Selling products to wholesalers and retailers for resale purposes. Trade Show- an exhibition or fair at which manufacturers display their products for the benefit of visiting wholesalers and retailers. 2) Missionary selling 3) Technical selling 4) New business selling Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 25

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 26

 Indirect selling is employed when a manufacturer markets his products through another firm that acts as the manufacturer's sales intermediary  Examples of indirect sales methods: - Wholesales - Retailers (supermarkets, department stores, multiple stores, independent retailers, consumer co-operatives) - Agents - Distributors and Dealers Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 27

Advantages: Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel  Suitable for overseas market  Channel is inexpensive- low per transaction cost  Start up cost is less      Disadvantages:Manufacturing firm has to give up control of marketing activities to other firmIn some cases, however, indirect sales may lead to reduced control of the brand message and poorer customer service Intermediary can easily discontinue handling a manufacturer's product Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 28

 Industrial Selling (business to business selling) is the selling of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.  Main features of B2B Selling:This is one to one selling & relatively easy to identify prospects Highly trained & professional people involve in the process Buying process is complex & may includes many steps Long period required for process     Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 29

 A missionary type of sales job involves convincing someone who has never used a product to buy it.  Selling financial planning or life insurance and other financial products typifies the missionary sales job.  The metaphor of a missionary involves educating someone about an idea or concept and convincing them to have faith in that concept. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 30

 Selling in a group: It helps you to sell more  One to many: More cost effective  The power of group  Many target customers together Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 31

 Telesales is a process that is followed to generate interest in the products and services that your business offers and is used to provide information to consumers.  Telesales is a service activity that you use to sell your products and services to customers directly over the telephone. In telesales, no further contact is required and the entire selling process, including the payment transaction, can be completed during a single telephone call.  Challenge-"normal" sales presentation involves visual contact, which encompasses body language, facial expressions and other non verbal cues. There is also no time limit to a normal sales presentation allow the customer and sales person to work free of heavy time pressure whereas many telesales roles have an ACD (Average call duration) between 3 and 10 minutes on average. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 32

To succeed in international sales you need to know what you are doing and why. You also need to:  Understand and apply the basics of selling which is true all over the world.  Figure out which buying mode the prospect is in.  Identify and focus on real/actual decision makers and avoid those without approval power.  Find an advisor to help navigate through the rough waters of international sales.  Distinguish between good customers and bad customers.  International sales is more challenging because of:  Cultural issues  Language barriers  Government regulations and tariffs  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 33

 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 Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 34

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 35

1. They don't think in terms of sales but rather in terms of concreting a business. 2. They listen more than they speak, getting an understanding of the needs of customers and then finding a solution. 3. They build their businesses - one customer at a time and then always influence the last customer into more and more customers. 4. They deliver more than the promise and always promise a lot. 5. They invest their time in those things that positively affect their income and avoid spending time on those things that are irrelevant. 6. They are always in quest of new, better and faster conduct to increase their sales efforts. 7. They are willing to invest in community, relationships building and networking Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 36

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 37

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 38

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 negotiationThe process by which we search for the terms to what we want from somebody who wants something from us Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 39

 A dialogue or discussion between two or more people or parties, intended to reach an understanding, resolve point of difference, and/or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two opponents involved in negotiation process.  Process of exchanging offers and counter offers“exchange of concessions” - for arriving at a compromise by which both parties reach to an agreed positions and outcomes. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 40

 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! Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 41

 Red Style  Blue Style  Purple Style Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 42

They believe manipulation is normal and they behave as they believe Main attitudes:  Aggressive  Intimidatory  Manipulatory Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 43

Looking for both winning of two sides Main attitudes:  Cooperative  Trusting  Conciliatory Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 44

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” Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 45

 Distributive Negotiation- Opponents compete over the fixed sum or value. The key question is who will win the bigger part of the pie. A gain of one party is made at the expense of the other.  Integrative negotiation- The word integrative implies some cooperation and hence often involves a higher degree of trust and the forming of mutually beneficial long term relationship. It can also involve creative problem-solving that aims to achieve mutual trust and gains. For the same reason it is also called winwin negotiation. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 46

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 47

 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 Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 48

Interestingly enough the most important is not the Power itself but how it is perceived. Power in some sense is similar to beauty that lies in the eye of the beholder. Another way to put it is, if you are perceived in the position of Power, you have it. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 49

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 50

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? Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 51

 Identify the decision maker from the opposing team.  Formalize your objectives in terms of priorities  Establish what their objectives & priorities might be Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 52

 Consider all the variables in the other side’s case & estimate the probable cost to them if they concede any of those to you.  Finally value the benefits of the other side’s variables to you  If both sides are to move from their starting position by trading concessions, the initial offer you open with- must be more favorable to you than where you hope to settle eventually.  Otherwise you will be having nothing to exchange  Hence in setting out your opening gambit, you need to include a negotiating margin & aim high Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 53

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 list of items/issues they want to negotiate. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 54

 Deadlock is 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 deadlockA) Try to avoid the immovable positions. B) Bridging the GAP Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 55

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 56

 An excellent negotiation practice/tactic is to: 1) Summarize from time to time, what your discussion has covered. 2) Probe ambiguities before they become misunderstandings.  It also gives time for new ideas & re-appraisal of old ones.  This acts as a recess. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 57

Golden Rule - Goal commitment not only agreement.  Use a pause in your speech prior to making any offer- between the lines.  If you can meet, accept or deliver the following conditions 1…, 2…, 3…, n…, we will be prepared to consider offering the following: 1…, 2…, and 3…, n….. Our reason for doing so is a…, b…, c…, …z…  Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 58

Difficult people exist everywhere. They come in every variety and no workplace is without them. How difficult a person is for you to deal with depends on your self-esteem, your self-confidence and your professional skills and courage. It’s far better to address the difficult person while you can maintain some objectivity, patience and emotional control. Types of Difficult People The “Sherman Tank”  The “Exploder”  The “Complainer”  The "Clam"  The “Wet Blanket”  The “Know-It-All”  The “Staller” Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 59

 Idea OpponentAn idea opponent is one who disagrees on a particular issue or alternative on the basis of rational and logical facts.  Visceral OpponentVisceral opponent is an emotional adversary, who not only disagrees with your point of view, but also as a human being. Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 60

 Ethics is a system of moral principles or values.  Typically, these people feel that negotiation is what a salesperson does to get them to buy or try to push off his/her products and services. But this is not the reality. In fact, every one of us negotiates in almost all walks of our day to day life.  There are 9 tips will ensure that you build all your negotiations on the foundation of ethics--which will, by the way, increase your possibility of achieving win-win outcomes Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 61

Think this was helpful?? Learn more. Pick up a copy of the book and sharpen your skills on Selling and negotiation. Book is available at: http://vpindia.co.in/library_store/Selling-and-Negotiation-Skills Priced at - Rs 180/- Your feedback is important. Feel free to write to us at info@vpindia.co.in Like us on FB and stay connected: https://www.facebook.com/VishwakarmaPublications

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