Group 8 - S & D

SELLING SKILLS & SELLING STRATEGIES

Group 8

SELLING SKILLS

These are the sum total of aptitudes and skills such as communication skills, problem solving skills, and negotiation skills

TYPES OF BUYERS

Innovators People who are adventureous and have high risk

capital . they mostly buy on impulse and consider non functional reasons for making a choice

Laggards They accept new products and innovations after

seeing the innovators using it . they start buying when another new product is at the door step

FACTORS INFLUENCING THE NATURE OF BUYING

Number of competitors

Quantity of purchase by the buyer

Switching cost involved

Availability of substitutes

THEORY OF DIFFFUSION

As per the theory it is easy to convince innovators to buy products , where as difficult to close a sale in case of laggards

Innovators do not give much importance to sales persons

They make purchase out of the habit of experimenting

Laggards are always very defensive and always make a rational choice .

They evaluate all available information before making a choice .

The buy the products when everyone starts buying .

SELLING AND BUYING STYLE

The success of selling depends upon the matching of buyer and seller characteristics as well as their buying styles

This has been explained with the help of a grid

9(1,9)

(9,9)

8

7

6

5 (5,5)

4

3

2

1(1,1)

2 3 4 5 6 7 8 9(9,1)

CONCERN FOR THE SELLER

CONCERN

FOR

CUSTOMER

(1,1) sales persons believe in the physical display of the product and believe that the customer will by himself if the logistics are managed

(9,1) sales persons are more product oriented and they push the product for sale . they don’t care for the customer demands .

(1,9) sales persons treat the customer as a friend . the listen to the customer and respond to their feelings

(9,9)sales persons consult with the customer to understand his needs , and then suggest a product that can fulfill the need

(5,5) keeps a balance between the concern for the customer and the product

FORMS OF SELLING

MAINTENANCE SELLING

Involves the art of servicing the existing accounts, securing promotional cooperation, counting inventory and taking replenishment orders and delivering the product

Sales people are called client serving executives . eg sales persons in the it sector

DEVELOPMENT SELLING

Contact the potential customer and build business for the firm . this kind of selling involves locating the potential buyer , securing specifications and approvals for the purchase and closing the deal .

Sales executives are called business development sales executives

SELING SKILLS

Communication skills

Listening skills

Conflict management and resolution skills

Negotiation skills

Problem solving skills

COMMUNICATION SKILLS

Communication is the exchange of ideas and information between the two parties

COMMUNICATION PROCESS

EVE

INTENDED MESSAGE

SENT MESSAGE

ENCODING

PERCEIVED MESSAGE

RECEIVED MESSAGE

DECODING

Feedback

channel

NOISE

BODY LANGUAGE

The nonverbal cues taken together is called body language or the visible code

It includes Personal appearance Posture Gestures Facial expressions Eye contact Space distancing

LISTENING SKILLS

Sales manager has to be a very good listener and use his listening skills to lead towards sales realization

Types of listening Content listening Critical listening Active listening

TYPES OF LISTENING

CONTENT LISTENING

It is the understanding and reaction to the speaker’s message . the information flows from the sales person to the customer

TYPES OF LISTENING

CRITICAL LISTENING

It is to understand and evaluate the meaning of the speaker’s message at different levels . includes implication of the message for the customer and the organization , the speakers intension and motive and the omission of any relevant data .

TYPES OF LISTENING

ACTIVE LISTENING

It is to understand the speaker’s feelings ,needs , demands so that it can be appreciated by the listeners irrespective of whether he likes it or not .

PROCESS OF LISTENING

ATTENDANCE

INTERPRETATION

REMEMBRANCE

EVALUATION

RESPONSE ACTION

THE CUSTOMER PHYSICALLY RESPONDS TO THE MESSAGE AND TAKES NOTE OF ITASSIGNING THE MEANING ACCORDING TO HIS OWN BELIEFS , VALUES , EXPECTATIONS , ROLES NEEDS AND WANTSMESSAGE ARE STORED BY THE SELLER AS WELL AS THE CUSTOMER

CUSTOMER APPLIES HIS THINKING SKILLS TO WEIGH REMARKS AND QUERIES

RESPONDS AFTER EVALUATING THE RECEIVER’S MESSAGE

LEVELS OF LISTENING

ACTIVE LISTENING

FEEDBACK

PARAPHRASING

CLARIFICATIONS

EMPATHETIC LISTENING

REACTION OF THE CUSTOMER TO A SALES CALL

THE SALES PERSON TRIES TO PARAPHRASE THE QUESTION BY MIRRORING THE CUSTOMER’S POINT

IT IS TO IDENTIFY THE CUSTOMER’S REAL CONCERN

SALES PERSON TRIES TO SHOW THAT HE IS CONCERNED ABOUT THE FEELING OF THE COSTOMER

UNDERSTAND THE EMOTIONS OF THE CUSTOMER

BARRIERS OF LISTENING

Defensive assumptions

Self – centeredness

Selective listening

MODELS OF CONFLICT

Daller and miller

It explains 3 kinds of conflicts Approach- approach Approach - avoidance Avoidance - avoidance

Rummel’s model

COMPONENTS OF CONFLICTS

Interest based conflict They arise due to differences in practices , rules and

policies , needs and levels of resource use

Emotional conflictIncludes feelings such as anger , fear , rejection ,

anxiety and loss

Value components of conflict It represents deeply rooted ideas and feelings about

right and wrong

CONFLICT RESOLUTIONPROCESS

Stage 1 Incompatibility

Stage 2 Personalization

Stage 3 Intension (competing collaborating compromising

avoiding accommodating) Stage 4

Behavior Stage 5

Outcome

WHAT IS NEGOTATION

Occurs when someone else has what you want,& perpare to bargin for it & vice versa

Skills required Ability to define & prioritize objective Explore options Prepare well Interactive competency

Involves two types of exchange Routinized ( e.G. Products in retail counter) Negotiated ( e.G. Industry selling & bulk selling)

SITUATION AND TIMING FOR NEGOTATIONZONE OF AGREEMENT

FORMULATION OF BARGAINING STRATEGY Keep strategy simple and flexible

Hide negative emotions & frustrations

Prepare briefing & reherse tactics

‘Hard Strategy’(one party show high rigidity)

‘SOFT STRATEGY’ (involves both parties)

THEORY AND STRATEGY OF PRINCIPLED NEGOTIATION

Means to decide on issues on basis of their merits rather than haggling

Suggests: Look for mutual gains when possible where interest conflicts, insist on fair

standards Is hard on merits and soft on people

FOUR PRINCIPLES

Separate people from the problem

Reasons: Emotions gets entangled with obective Main issues are framed in terms of personality involved Involvement in contest of wills Confuse matters of relationship & substance

Strategy: Emotions to be made explicit Open discussion USE OF “I message” IN CREATIVE WAY

FOUR PRINCIPLES

Focus on interest, not on positions

Postions - is that one decided upon Intrest - cause one to adopt that position Reasons:

Assumed that other side’s position is opposite to our’s, so interest

Differences like: risk, timing, perception, marginal value

Strategy: Directly asking questions about customer’s interest To be hard on problem & soft on people

FOUR PRINCIPLES

Invent options for mutual gains

Reasons: Quarrel over interest that are common Approach is “more for me & less for you”

Strategy: Inventing options for mutual gains Innovative thinking, brainstroming Suspending criticism work for mutual benifits

FOUR PRINCIPLES

Insist on objective criteria

Reasons: Opposite argues over his position rather than

interest

Strategy: Identify objective standards Use of ‘batna’(best alternative to a negotiated

agreement) ‘BATNA’-more attractive higher posibility of

sucessful negotiation

THE SELLING PROCESS

Meeting personally to offer schemes Briefing about product, price Try & generate customer interest(show

benefits,cost saving) Probing deep to find our competitors

infromation Providing comparision & educate customer Collect info. About our products used by other Assuring stocks available by co-ordinating with

warehouse & factory

NEGOTIATION PROCESS

Start off with small discounts & delay final discounts

Approval of large discounts by involving higher authorities

For extended periods, restrict disc. Limiting disc. By looking at competitive

pricing and products Try to take customers request and close

the deal

BARGAINING TACTICS

Maneuvers by salespeople

Clinch the deal for best solution

Thefts, bluffs & last chance

Other party is powerful BATNA

Should I give the first offer? Should I start with a high offer? Should my preparation lead to a

strategy? Should I sketch an agreement from the

beginning? Should I construct a framework for

agreement? Should I move towards the

commitment gradually?

STRATEGIES OF PRINCIPLED NEGOTIATIONS

Let the other party have it in your own way Indirect action rather than taking on

Visit the balcony Evaluate as a third party

Step to their side Lend them your ears

STRATEGIES OF PRINCIPLED NEGOTIATIONS

Reframing rather than rejection “What is that you want to… ?” Open ended questions

Let them take ownership “Building on your idea, what if we.. “

Educating them to sense “What do you think will happen if we don’t

agree?”

BARGAINING TACTICS

Acting crazy Emotional commitment

Auctioning Stick to your terms

The Good Guy- Bad Guy routine Hindi movie scene

Big pot High demand at the beginning

BARGAINING TACTICS

Budget bogey Ends up with a low price

Get a prestigious ally Prestigious to the opponent

Escalation Point it out

The well is dry No more concessions

BARGAINING TACTICS

Limited authority “I have to check with my boss.”

Whipsaw / auction Keep them waiting

Divide and conquer One member of the team

Reunion Stand away from the negotiator

BARGAINING TACTICS

Deadline Never accept other party’s deadlines

Sticks and stones “Hey you look so down, are you not doing

good sales these days?” Get lost / stall for time

Take a break Take it or leave

Threat

BARGAINING TACTICS

Wet noodle Do not respond

Veiled threat Power enjoyed

Let’s split the difference Proactive behaviour

Play the Devil’s advocate “Before I say yes or no, let’s look at all the bad

things that may possibly happen if we did what you want.”

BARGAINING TACTICS

Trial balloon Reliable source

Surprises Drastic, dramatic & sudden shifts

What’s the rock bottom price “How many will you need?”

Adversarial negotiating tactics Negative tactics

PROBLEM SOLVING SKILL

Salesman should be problem solver not order taker

Characteristics of effective/ineffective problem solver Attitude Actions Accuracy Solution procedure

“7 HABITS” OF EFFECTIVE PEOPLE

Be proactive Begin with an end in mind Put first thing first Think win-win Seek first to understand , then to be

understood Synergize Renewal

PROBLEM SOLVING PROCESS

evaluate the solution

Implement the solution

Decide the solution

Generate alternative solution

Define the problem

MCMASTER FIVE POINT STRATEGY

Define

Explore

Plan

Act

Reflect

GOMAN’S BLOCKBUSTER

Blocks

• -ve attitude• Fear of failure• Follow rules• Over rely on logic• You are not

creative

Blockbuster

• Attitude adjustment

• Risk taking• Breaking the

rules• Internal creative

climate• Creative belief

Thank You!!!