Selling skills training

MASS Training Copyrighted M

akhzani Marketing Dep.

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MASS TRAINING MASTERING YOUR SELLING SKILLS

Marketing Department Makhzani Co. Ltd

Training Agenda

Basic selling skills Sales Process Communication skills Handling customer objections Negotiation skills Effective time management Key account management Adaptive selling Pareto’s law

MASS Training Copyrighted Makhzani Marketing Dep.

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MASS Training Copyrighted Makhzani Marketing Dep .

You will never get a 2nd chance to make a 1st impression

4 AIM

To Create an Outstanding Success for Our Brands

Understand in depth, the role of Sales Team

Develop a Framework for an Effective Sales Approach


5SELLING & SALESPERSONS

What selling is ?

What a salesperson does ?


6*What Is Selling?

To satisfy a Need / Want with your product for Mutual Benefits.

To Identify / Generate / Influence a Need / Want.



7What selling is.

“The process of:Developing customer relationships (CRM)Discovering customer needs,Matching appropriate products with these needs ,

and communicating benefits”.

Manning and ReeceSelling Today


8Selling is a ‘process’ that:

Facilitates the transfer of goods & services Persuades prospects to buy Occurs over various lengths of time Involves multiple steps (preparing, opening, presenting,

closing, servicing), although maybe not all on every call Is part of ‘marketing’ (promotion)


9 Selling is a ‘process’ that: CONT..

Is customer (vs. product) driven. (Customer centricity)

Bridges between the company and the customer Aims to develop long-term, (win-win relationships) Strives for repeat business. (Long term BR) Is technically oriented. Emphasizes service and value.

10Philosophy Of Selling

selling = motivating customer’s commitment

Sales Rep customer

All good reasons why a customer should buy /

use your productAll the things that a Customer has to give

BY ASKINGMASS Training Copyrighted Makhzani Marketing Dep.


11Selling is ‘helping’ people:

Solve problemsMake more $BuyMeet their needs/goals


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13Selling Philosophy of ‘Good’ Salespeople:

Selling is problem solving Selling is a helping, caring activity A customer is a person to be served, not a prospect to

be sold Treat people as human beings, not $ signs Unique products, relationships, cultures are important Be customer driven, not product driven


14Selling Philosophy of ‘Good’ Salespeople:

Focus on customer needs The customer is the reason a salesperson exists Long-term success depends on pleasing others Selling is a ‘win-win’ activity A commitment to self improvement and life-long learning

essential for long-term success Adherence to a strict code of ethics emphasizing, among other

things, mutual trust, respect, and honesty is essential


15“What Makes a Good Salesperson”?

1. Empathy = the ability to sense what the customer is feeling.

2. Drive = the personal need and want to make a sale (not merely for the money); = a proper ego that is enhanced by success while somewhat weakened yet motivated and not shattered by failure.

Harvard Business ReviewJuly-August, 1964


16Selling is a ‘profession’ based on:

Scientific skills, even though it is not an ‘exact’ science

Knowledge about selling principles/theories A code of ethics Psychological & sociological aspects of human behavior(CONSUMER BEHAVIOR)



17

.


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What do salespeople do?


191 )They Sell:

Products/services Solutions Information Ideas Service Their company Themselves


202 )They work with people:

Solve problems Represent the company Communicate (benefits?) with customers Develop relationships, partnerships, alliances Discover needs


212 )They work with people:

Gather information Educate customers Catalyze change Help people buy Serve customers Treat people with respect


223 )They Manage:

Their timeTheir territoryTheir recordsTheir stress


23Rewards of being a professional salesperson: BROS

Freedom (own boss) Job varietyChallengeTangible accomplishmentsRecognition/awardsFinancial compensation


24Rewards of being a professional salesperson: BROS

Opportunities for advancement On ‘cutting’ edge Personal relationships Satisfaction from helping others Job security Entertaining customers Travel


25Negative aspects of being a professional salesperson: CONS

Long hours (physically exhausting) Isolation (often work alone) Mentally depressing

Rejections Complaints

Stress

26Types of Selling

Indirect selling – any form of selling that does not involve a sales person. (Ex: advertising, promotion, displays, signage)

Direct Selling – when there is contact between a salesperson and the customer.


27Methods of Selling

Personal selling – any form of direct contact between a salesperson and customer

Business to Business – may take place in a manufacturers showroom (inside sales) or in the field (outside sales).

Telemarketing – selling over the phone


28Feature - Benefit Selling

The concept that a salesperson needs to match the features of each product to a customer’s needs and wants.



29Features Vs. Benefits

Features

A physical characteristic or quality of a good or service; what is it’s intended use?

Benefits

Advantages or personal satisfaction a customer will get from a good or service; features that have been made into customer benefits are selling points.

MASS Training

PART 2 Call Planning Process

31Customer Buying Decisions

Salespeople must study what motivates customers to buy and what decisions customers make before finally purchasing a product.



32Customer Buying Decisions

Rationale Motives

product dependability time or monetary savings convenience comfort recreational value

Emotional Motives

social approval recognition power love affection prestige

Customer Buying Decisions

Extensive Decision Making

Used when little or no previous experience with the item because it is infrequently purchased.


Limited Decision Making

Used when a person buys goods and services he or she has purchased before but not on a regular basis.


Routine Decision Making

Used when a person needs little information about a product because of a high degree of prior experience or low perceived risk.

MASS Training Copyrighted Makhzani Marketing Dep. 36

Call Planning Process

MASS Training Copyrighted Makhzani Marketing Dep. 37

Why Call Planning

?

38.IPre Call Planning


39A. Prospecting

Process of locating potential customers for a product or a service Find customer QualifyClassify


40CUSTOMER SEGMENTATION

Geographical segmentation Specialty segmentation Pts Rate segmentation Concept segmentation Behavioral segmentation Social segmentation



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The market is constantly changed i.e. annual customer turnover 15 % : 20 %.

Find new customer to replace those that switch to competitors

The more information the sales person has about the prospect the higher the probability of meeting the prospect’s needs & developing long term relationship

Why Call Prospecting?


43Customer data

1-Personal: Name(including pronunciation) Family status Education Interests & disinterests Mobile & e-mail 2-Attitudes : Towards sales people Towards your company Towards your product3-Styles :Social styles (driver ,analytical ….) MASS Training Copyrighted Makhzani Marketing

Dep.

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4-General Profile Best time for visit Working hour Address Phone number Personal data and preferences

Customer data cont.


45

Follow upObtaining commitment

Responding to objectionsMaking the presentation

Discovering needsMaking the approach

Collecting pre-call informationProspecting

Selling process The “Buyer” Become a…

Lead

Prospect

Customer


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48Prospect

Need Ability


49Need, Want and Demand


50

Maslow's Hierarchy of Needs

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MASS Training

PART 3

The Basic Selling Steps


52The 7 Basic Selling Steps

1 .Pre call planning 2 .Opening 3 .

Questioning4 .

Presentation

5 .Handling objections6 .Closing7 .Post call

analysis



Projecting the right company

image

Targeting

Call preparation

Utilize waiting time

• Identifying the right customers1. Pre call

planning

• Posture, Facial Expressions, customeressing & Grooming • Observing

• Review last call• Objective selling: S.M.A.R.T =

Specific, Measurable, Achievable, Realistic, Time bound

• Plan the call: objectives, promotional materials, sequence of detailing



Types of opening:

Opening is the skill of capturing the customer’s attention and focusing the sales call.

Steps of opening:

• Greeting• Rapport building• Purpose of call• Initiating business discussion

• Need/Benefit opening:• Identify a known or presumed need• Offer a product feature & benefit to satisfy

that need.• Opening as a question• Stimulating opening

2. Opening



Closed Questioning:

• Questioning is used for the purpose of gaining information to use in the sales call.

• Start with open questions and then move to close questions.

• Invites an extended customer response• Start with What, When, Why, Where, Who

& How

• Invites a “Yes” or “No” reply from the customer

• Start with Do, Will, Is, Should

Choice Questioning: • Give customer two or more positive options in

order to rule out a negative “No” response.

3. Questioning

Open Questioning:



Tag On Questioning:

• Questioning is used for the purpose of gaining information to use in the sales call.

• Start with open questions and then move to close questions.

Benefit Tag Questioning:

• Benefit is presented in the form of a statement supported by a Feature and followed by a Closed Question

• Tag on questions are used when customer makes a positive statement which you want to reinforce.

3. Questioning


57The 7 Basic Selling StepsPresentation is zeroing on the customer’s identified

Needs/Wants with appropriate Product Features and Benefits.

During Presentation:

• Sit up straight in front of the customer• Look confident and speak with enthusiasm.• Hold the Detail Aid in front and use a pen to focus

customers attention• Don’t look at the Detail Aid, look at the customer.

Observe his/her actions.• If interrupted, do a brief recap before continuing• Don’t be distracted by surroundings

4. Presentation



Skepticism:

• Can be question, comment or query.• Shows interest of the customer in your product.

Misunderstanding:• An incorrect negative perception because of

misinformation. • To handle this provide the right information.

• A customer’s doubt that your product can actually deliver the stated benefit.

• Offer proof (clinical studies, references)

Real Objection: • A real short coming or disadvantage of your

product.• To handle real objection, minimize the impact by

focusing on the advantages.

5. Handling objections



Hidden Objection:

Indifference:

• customer is not interested in your product because customer is satisfied with competitor’s product or customer has never used that type of product.

• Identify a need that can not be satisfied by the customer’s preferred product.

• customer does not openly raise an objection because the customer is disinterested.

• How to handle: Ask customer if they have concerns.

• Can be question or query.• Shows interest of the customer in your product.

5. Handling objections


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The 7 Basic Selling StepsReal success of a sales call depends on the use of effective

closing.

AfterPresentation:

•Review all the benefits accepted by the customer•Ask for business (trial use, continued use,

expanded use)•Wait for a response.

6 .Closing

61The 7 Basic Selling StepsPost call analysis is the process of evaluating and recording the

outcome of the call, in order to plan for future calls.

Afterleaving the chamber:

•Evaluate the Call•Record Call Information•Set Objectives for next meeting with the customer.

7 .Post call analysis


62Asking Questions

Questions are used to PROBE information from customers

Questions starting withWHATWHEREWHYHOWWHOWHICH

are very useful


63Funnel Techniquea powerful tool to Encourage the Flow of Conversation

1 )motivate the customer to talk.

2 )open with neutral questions to get unbiased

information.

3 )ask lead questions to explore more deeply.

4 )ask closed questions to pinpoint precise

requirement.

5 )summarize to gain customer’s acceptance

of requirements.

1

2

3

4

5


64DAPA Method Of Selling

D

A

P

A

efine the customer’s requirement for your product.

cceptance by the customer of the requirements.

rove that your product can fulfil the customer’s requirement.

cceptance of the proof by the customer.


65Significance of DAPAefine the customer's requirement for your product

cceptance by the customer of the requirements

rove that your product can fulfil the customer’s requirement

cceptance of the proof by the customer

sales rep: asks open active questions

customer : LISTENS and ANSWERS accordingly

customer : ANSWERS and gives acceptance

sales rep : does active listening and makes notes

sales rep : offers the product (or service)

customer : does active listening and if things are not clear, asks questions

sales rep : does relevant answering

customer : accepts the product as his/her need

D

A

P

A



66*Presenting the BenefitsNEED

FEATURE/OFFERINGBENEFIT

what the customer wants?

what do we offer?

what the customer gains?

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*The important thing about a problem is not the SOLUTION, but the strength we gain in finding the SOLUTION

Famous Quote


68*Handling Objections

When D to A from DAPA is not done

Objection – An Obstacle Or An Opportunity

It’s a customer tactic to get a discount

The customer is confused due to hidden cost or competition

A habit of asking questions A strategy to postpone decision making

When Do Objections come?


69*Handling Objections

Objection – An Obstacle Or An OpportunityHow do we tend to feel?

Dejected

Angry

Challenging

Frustrated

Defensive


70*Handling Objections Objection – An Obstacle Or An Opportunity

How Should We React?

Pause

Stay calm.

Don’t get aggressive.

Don’t get defensive

Do not disturb the customer. Let him/her speak first.


71*Kinds Of Objections Unspoken Objection

Objection that we hear and can answer

Objection that we hear and cannot answer

&

&


72*Handling the unspoken objection

customer frowns

customer smiles (sarcastic)

customer looks elsewhere


73*Handling the unspoken objection

What do you do when such an Objection Comes?

PAUSE and then convert it into a SPOKEN OBJECTION by asking:

You are thinking something Sir?

Anything particular Sir?


74*Handling the objections we hear and can answer When you hear an Objection: Pause

probe gently

Please, tell me more. Apart from this, is there anything else that is of concern to you? If I can take care of this to your satisfaction, could we proceed forward (would

you consider our product)?


75*Handling the objections we hear and can answer When you hear an Objection:

probe gently

Give your best possible solution?

Are you satisfied with my answer?

&


76*Handling the objections we hear and cannot answer

Product features that meet the customer’s needs

Features we offer but customer does not need

Find Out:

Why the customer may not need it?

How long will the customer not need it?

Will the customer ever need it in future?

Features the customer wants, but we do not have

Find Out:

Why does the customer want it?

How important is it? 1) Essential 2) Desirable 3) Useful

Can we explore an alternative?

&



77*Selling The Price Effectively

Psychological aspects of price:

Price is the only weapon that the customer has.

Make sure YOU believe in your own pricing.

Make the customer feel that you are there to help and not to fight.


78*Selling The Price Effectivelythe right stage to present the price:

NOT UNTIL the customer has REALISED the BENEFITS of your product What does a customer pay for? QUALITY

BENEFITSCONSISTENCYRELIABILITYREPUTATIONBRAND NAME

SERVICEYOU

79*Selling The Price Effectivelyhow to postpone revealing price:

If the customer says, “ It must be Expensive” -- Initially Ignore it

If the customer asks a little later, “How Much” – Tackle him/her in the following manner:

1) I am coming to that Sir ask an Open Neutral Question2) It depends on your requirement Sir ask an Open Neutral Question3) I am sure the Price is not your only consideration Sir4) It depends on your order size5) I will leave you with a full Price list Sir6) First let me tell you the benefits that you are getting

if pressed a lot, tell the price using the SANDWICH METHOD and continue



80*Selling The Price EffectivelySANDWICH METHOD


81*Selling The Price EffectivelySANDWICH METHOD

STEP I: present the BENEFITS of your product

STEP II: put the price in front of the customer

STEP III: JUST CONTINUE with explaining him/her the features that he/she will derive out of this price

82*Selling The Price EffectivelyHandling Price Objection

STEP I: customer objects

STEP II: sales rep : what are you comparing with, sir?customer : competition, perception, budget, past experience

STEP III: sales rep : how much is the difference we are talking, sir?customer : 20% (the faster he says this, ITS FALSE)

STEP IV: express the difference

STEP V: demonstrate the benefits passable when compared to the differenceMASS Training Copyrighted Makhzani Marketing

Dep.


83*Closing The SaleWhat prevents a sales rep from closing EFFECTIVELY?

FEAR

DOUBT

UNCERTAINTY


84*Closing The SaleWhy a sales rep may not close well?

Too EarlyToo LateToo MeekToo Aggressivecustomer’s objections not resolved completelySales process not followed

85*Closing The SaleWhen to close?

• The customer has understood your product completely

• The customer has developed trust in your company

• The customer has a desire for the benefits for his/her patients


86*Checklist Steps to be followed?

STEP I: Greet the customer further ask for his well being.

STEP II: Give a small 15 seconds introduction on company image.

STEP III: Listen to the customer and use the FUNNEL TECHNIQUE to get the flow of conversation.

STEP IV: Once you have understood the requirement, use the DAPA Method of Selling so as to confirm there is no GAP between the need and the offering.



87*Checklist Steps to be followed?

STEP V: In case the customer has a doubt/objection, then concentrate and resolve that before moving ahead.

STEP VI: In case the customer asks about the PRICE. Tell him/her that you would give him/her the best price comparing others. (Use the price postponement techniques).

STEP VII: In case the question still arises on PRICE, use the SANDWICH METHOD to answer it.

STEP VIII: Pleasantly Close the sale and confirm the prescriptions.



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ADAPTIVE SELLING Marketing Department

Makhzani Co. Ltd


89Adaptive selling

What is adaptive selling?Why is it important for salespeople to practice adaptive

selling?What kind of knowledge do salespeople need to practice

adaptive selling?How can salespeople acquire this knowledge?

How can salespeople adapt their sales strategies, presentations, and social styles to various situations?

6-89


90Adaptive Selling

Salespeople practice adaptive selling when they use different

sales presentations for different customers and alter

their sales presentation during a sales call based on the

nature of the sales situation.


91Being Adaptive

Is your behavior different at a restaurant if you are there with your best friends than it is when you’re

there with your parents?


92Buyers want the salesperson to understand their business.

“Do your homework. … Know ahead of time what we’re up against in the market, what we’re trying to do. If I offer

to show you around, jump at the chance. Or, better yet, ask me yourself”.

Adapted from Jim Organ, “The Best Reps Will Take on their Bosses for You,” Purchasing, November 7, 1996, pp. 50-52.


93Knowledge makes it easier to practice adaptive selling.

Knowledge is organized into categoriesProduct and company knowledge

Greater knowledge more flexibilityEach category consists of

Method of classifying customer (categorical)Approach to selling the customer (procedural)

6-93


94Approaches for Developing Knowledge

Tap knowledge from expertsRead company materials and trade publications

Use market research informationAsk for feedback

Analyze successes and failuresDevelop an intrinsic orientation toward your work

6-94


95Social Style Matrix

Analytical

Amiable Expressive

Driver


96Cues for Recognizing Social Styles

AnalyticalAchievement awards on wall

Office is work-oriented, showing much activityConservative dress

Likes solitary activities (e.g., reading, individual sports)

Amiable

Driver

Expressive



AmiableOffice has friendly, open atmosphere

Pictures of family displayedPersonal mementos on the wall

Desk placed for open contact with peopleCasual or flamboyant dress

Likes solitary activities (e.g., reading, individual sports)

Analytical Driver

Expressive



ExpressiveMotivational slogan on the wall

Office has friendly, open atmosphereCluttered, unorganized desk

Desk placed for open contact with peopleCasual or flamboyant dress

Likes group activities (e.g., politics, team sports)

Analytical Driver

Amiable



DriverAchievement awards on the wall

No posters or slogans on office wallsCalendar prominently displayed

Furniture placed so contact with people is across the desk

Conservative dressLikes group activities (e.g., politics, team sports)

Analytical

ExpressiveAmiable


100Social Style Matrix:

Customer ExpectationsDriverAtmosphere: Businesslike

Interview Pace: QuickInformation provided: Salesperson’s

qualifications; value of product

ExpressiveAtmosphere: Open, friendly

Interview Pace: QuickInformation provided:

What salesperson thinks; whom s/he knows

AnalyticalAtmosphere: Open, honestInterview Pace: Deliberate

Information provided: Evidence of salesperson’s expertise in solving

problems

AmiableAtmosphere: Businesslike

Interview Pace: DeliberateInformation provided: Evidence that salesperson is trustworthy, friendly


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Social Style Matrix:Customer Expectations

DriverSalesperson should provide:

Documented evidence, stress resultsPresentation of benefits: What product can do

ExpressiveSalesperson should provide: Recognition and approval

Presentation of benefits: Who has used this product

AnalyticalSalesperson should provide:

Evidence that salesperson has analyzed the situation

Presentation of benefits:How product can solve the problem

AmiableSalesperson should provide:

Evidence that salesperson is trustworthy, friendly

Presentation of benefits:Why product is best to solve problem



Customer ExpectationsDriver

Assistance to aid decision-making:Explanation of options and probabilities

ExpressiveAssistance to aid decision-making:

Testimonials

AnalyticalAssistance to aid decision-making:

Evidence and offers of service

AmiableAssistance to aid decision-making:

Guarantees and assurances


103Indicators of Versatility

Less VersatileLimited ability to adapt to other’s

needsSpecialist

Well-defined interestsSticks to principles

PredictableLooks at one side of an issue

More VersatileAble to adapt to other’s needs

GeneralistBroad interests

Negotiates issuesUnpredictable

Looks at many sides of an issue

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104Adaptive Behaviors

Less Adaptive“I’ll tell you how it should be

done”.“I’m right”.“It’s always been done this way”.“You’re wrong”.“Take me or leave me”.

More Adaptive“Let’s discuss it”.“I see your point. We’ll do it your

way”.“I’m always looking for new

ideas”.“I want to understand”.“How can I accommodate you”?

6-104



Reducing AssertivenessAsk for customer’s opinion

Acknowledge merits of customer’s viewpoint

Listen without interruptionBe more deliberate; don’t rush

Let customer direct flow of conversation

Increasing AssertivenessGet to the point

Don’t be vague or ambiguousVolunteer informationBe willing to disagree

Take a standInitiate conversations

6-105



Reducing ResponsivenessBecome businesslike

Talk lessRestrain enthusiasm

Make decisions based on factsStop and think

Increasing ResponsivenessVerbalize feelings

Express enthusiasmPay personal compliments

Spend time on relationships rather than business

Socialize, engage in small talkUse nonverbal communication



Strengths and WeaknessesDriver

Strengths:Strong-willed, independent, practical,

decisive, efficientWeaknesses:

Pushy, severe, tough, dominating, harsh

ExpressiveStrengths:

Enthusiastic, ambitious, stimulating, dramatic, friendly

Weaknesses:Manipulative, undisciplined, egotistical,

excitable, reacting

AnalyticalStrengths:

Industrious, persistent, serious, exacting, orderly.

Weaknesses:Critical, indecisive, stuffy, picky,

moralistic

AmiableStrengths:

Supportive, respectful, willing, dependable, agreeable

Weaknesses:Conforming, unsure, pliable, dependent,

awkward6-107



108


(Key) Account Management


109Agenda

The theory The practice Useful tools


110Agenda

The theory – (based on research by Prof. Derrick-Philip Gosselin) The practice – (case from the Telecom world) Useful tools – (Key Account Plan)


111

Concepts & Definitions Different types of Account Management

Definition of Strategic Account Management

Strategic Account Management Process

The Theory : Content


112Concepts behind

Strategic Account Management

Marketing?

Strategy? Strategic Account Management? Sales?

Key Account Management?


113Concepts behind

Strategic Account Management

Marketing?


Key Account Management?MASS Training Copyrighted Makhzani Marketing

Dep.

114

Strategic concept?

Perception

Development

Opportunities

valueCREATION

valueDISTRIBUTION

in REPEATABLEways

LUCK

Adapted model from Prof. Aimé Heene: © 2000 Prof.Dr. A. Heene TIMING


115Marketing concept?

The Economic view (1920): Mechanism to promote trade between industrial agents as a government policy tool.

The Consumer view (1960): Mechanism to promote sales by manipulation of buyer behavior: 4P’s, STP(*), PLC, 4C’s (**) .

The Transaction view (1970): Increase the number, the volume and the value of transactions based on customer needs.

The Relationship view (1980): Creating, developing and maintaining a relationship (network) based on value creation and distribution by solving customer problems.

The New Economy view (1995): Create value on an individual basis (one-to-one) thru solutions based on the information depth or information breadth of the products/services content. )*(Segment, Target, Position

)**(Customer Value, Cost to Customer, Convenience, Communication


116

Push products / services by manipulation:

4 P’s / 4C’s STP PLC

Active seller / Passive Customer Atomistic market

Relationship based Value Creation = problem solving Product use Process addes value Transformation process Trust / credibility/ reputation

Growth = problem solving =Performance/ Commitment /

Trust/ Loyalty

Not applicable inBusiness Markets

Consumer vs Business marketingCONSUMER MARKETING

(CLASSIC 1960)BUSINESS MARKETING

(1980)

)*(Segment, Target, Position )**(Customer Value, Cost to Customer, Convenience, Communication


117Relationship Marketing

“In industrial markets, it is not the manipulation of the marketing mix which brings strategic advantage, but effective ‘Relationship Management’.

This means creating, developing and maintaining a network based on value creation thru problem solving for the customer.”

Gummesson 1987


118Sales concept?

Sales = The process to create a transaction. The Type of sales process depends on the type of transaction.

Transactional sales Individual, territory Find, call, present, sell, follow up

System sales Team based project (temporarily) Sell system: product+services+integration

Major account sales Dedicated cross functional sales force for one customer

Contract: Uniform contract terms and coordination Program: develop business and/or relationship

Inside sales Telemarketing, e-business, order centers, customer service group

Source: (B. Shapiro, 1988)

Types of sales processes



119Sales evolution

Strategic Solutions

Commodities

Transaction selling

SystemSelling

Strategic Selling

Consultative Selling

TechnologyEnabled Selling

Technology Based Selling

Traditional Sales

120Concepts behind

Strategic Account Management Marketing?


Key Account Management?


121The Key Account Management

Concept: Current situation (1)

Develop and maintain business revenues with important customers thru customer satisfaction and increase profits thru customer loyalty.

Dedicated salesperson for an important customers. Started in business markets in the US (1965) and developed during the

1980’s due to increasing complexity of geographic expansion (National Accounts).

Reactive mode: imposed by important customers to reduce business complexity (costs): one face to the customer.


122

Sales driven activity extended with logistic, accounting, inventory management and relationship responsibilities.

Positioned within the sales department. Evaluated on revenues and paid on results (sales function). Key account managers promoted from the sales force. In most companies Key Account Managers are in average responsible for > 8

clients (and increasing).

The Key Account Management Concept: Current situation (2)


123






124

There is no concensus on the definitions but 3 main characteristics are common on Key Account Management:

Commercial focus: key accounts are customers representing a large potential or actual sales volume as well in money terms as in percentage of the total revenues. Sometimes they are the most profitable customers

Relational focus: key accounts expect special treatment and services: inventory management, logistic support, special prices, special reporting and customer specific applications and solutions. Key accounts will centralise the purchase from different geographic area’s and will involve different departments and different skills

Strategic marketing focus: key accounts can be selected because of their status, market leader position, to open new markets, as ref. To open new markets, for diversification, technological leadership, because they will invest.

Definition of Key Account Management (2)


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Why was Key account management created ?

Key account management emerged at the end of 1960 in the US because of environmental changes which are still valid today:

Increased concentration of buying companies Increased geographic dispersion of buyers of same company Increased pressure on costs and communication Increased desire to develop partnerships Increased complexity of buyers operation

Assign one person: Key account manager to handle interface with customer from a sales point of view.


126Why will It become more important?

Importance of key account management will continue to increase because of 5 trends:

Importance of Key account

management

Industry Structure

Technology ICT (E-com & e-business)

Globalisation

Maturity of Industrial Markets

Increase in Buying Power


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More competitionMore complexityMore concentration thru M&AMore central purchasingMore outsourcing of servicesElimination of low value activities

Less but more important customers

Less but more important suppliers

Account management is an efficient and effective

process to implement

5 Trends

Why will It become more important?


128

Current view on Key Account Managemen

current views on “Key Accounts” are mainly Local or International oriented, Supplier Focused and have a Sales or Relationship Approach.

Strategy Driven

Geography

Focus

Approach

Local

Global

Sales DrivenRelationship

Marketing DrivenCustomer

International

Supplier

Regional/National

© Gosselin, Heene, 2000MASS Training Copyrighted Makhzani Marketing Dep.

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130Definition of a Strategic Account

Strategic accounts : are potential or existing customers identified by the supplier based on strategic criteria and where the supplier has indications that he is of strategic importance for the customer as well.

Potential Supplier

Existing Suppliers

Strategic Accounts

SUPPLIER

CUSTOMER

Gosselin, Heene 2000

Existing Customers

Potential Customers

Important/Key Accounts

S SNS

S

S

NS

NS

NS

S: StrategicNS: Non Strategic

Important/Key Suppliers

=

+

Source: D-P Gosselin, 2002MASS Training Copyrighted Makhzani Marketing Dep.

131Definition of Strategic

Account Management

‘’Strategic account management : is the process that identifies and selects strategic accounts and develops thru competence building and competence leveraging a set of specific and unique value propositions in partnership with a strategic account ‘’

Gosselin, Heene 2000


Classification of Account ManagementWe believe there are 3 different processes at work which are not identified as

such in practice, creating a lot of confusion, mismanagement and failures.

Process Nature Objective Behaviour Time Focus

Key Account Selling Performance Defensive Static/ Supplier

drivenShort Term

Sales

Key Account Management

Coordination/Relational Offensive Static/

Supplier drivenMid TermMarketing

Strategic Account

ManagementCompetitive Advantage Proactive Dynamic/

InteractiveLong Term Strategic

Source: D-P Gosselin, 2002

133Current views on Account Management

Confusion on account management is due to non recognition of 3 different processes

Process Focus Local RegionalNational

International Global

Key Account Selling

Sales Management

Key Account Management

Relationship Management

Strategic Account

ManagementStrategic

Management

Complexity

Scop

e

Tim

e F o

cus


134

Implications ofStrategic Account Management

Selection of Strategic Accounts: Portfolio/Resources Business Development Process: Proactive Strategic Process: Competitive advantage Competences of Strategic Account Manager and Organisation:

Competence driven Organizational impact: Change Management Interaction with other functional departements: Competence Building

and Leverage.

Strategic Account Management is about creating a customer driven organization


135






136Characteristics of the process

Selection of Strategic accounts Process & Resource allocation Competence Advanced Research


137Account Relationship

Development Model

Synergetic AM

Early AM

Complex

Level ofInvolvement

with thecustomer

Simple

Systems/SolutionsTransactionNature of the customer Relationship

Mid-AM

Partnership AM

Account Relationship Development Model of Millman & Wilson (1994)


Account Relationship Development Model

Pre-KAM Early KAM Mid-KAM Partnership KAM Synergistic KAM Uncoupling KAM

0% business 5% business 35% business 90% business 100% business

After one year Year 2 Year 3 Year 4

Product need established Transactions commence

Selling company now one of a few "preferred suppliers"

Selling company is now in partnership with buying company

"Quasi-integration" Selling company and buying company together deliver value to the end customer

Relationship disintegrates or product fails to keep up with the market

Buying Company scrutinize price and other terms

Key account manager / key contact relationship strengthens

Operational staff get to know their opposite numbers

Contacts at all levels Focus teams at all interfaces between supplier and customer

Key account manager's focus is to establish relationship

Key account manager working to increase volume of business

Key account manager working to establish distinctive business

Key account manager looks for opportunities for process advantage

Key account manager looks for opportunities for process advantage

Source: Prof. Malcom McDonald, Cranfield 1999, Millman & Wilson 1994

139Strategic selection

• Not all customers have same value• Volume is not the selection criteria• The more complex the product and the more complex the customer, the more chance there is to build a partnership and create value

PartnershipJoint Relation

OpportunisticPrice Driven

Complex

CustomerRelationship

Complexity

Simple

Systems/SolutionsTransactionProduct/Service Complexity


140

Model of Cespedes

1. Assessment of the direct and indirect profitability potential of the customer;

2. Assess the potential for organizational learning thru the key customer: depends on the degree of services and the potential to standardize the service processes of the customer;

3. Analyze the type of transaction: is it possible to increase the profitability of this customer based on the transaction cost drivers?

Source: F. Cespedes, 1995 HBS Press

Strategic selection


141

Strategic Significant Profitable Generic strategyY Y Y Keep and invest in those customersY Y N Keep but Increase profitabilityY N Y Increase volume if possibleY N N Increase volume and profitabilityN Y Y Important but not strategicN Y N Marginal interesting do not investN N Y Keep but Do not further investN N N Outsource these customers

Model of Whitney

Source: J. Withney, 1996, HBR

Strategic selection


142Strategic Selection

10 S Model of Gosselin

Substantial Enough growth potentialSize Size of the customer marketSound Margin or Potential MarginSynergy Cultural compatibility

Significant If volume is low value with the customer, your value could be very low as well?

Stable Can customer loyalty be achieved?

Sympathy Do you want this type of customer? Is it a reference for future business?

Strategic Fit Do the supplier and customer have and do they agree on a common strategy for the long term?

Symbiosis Does the customer, value a long term relationship?

Sustainable Do we want to be seen as a partner with this customer? Do we put enough resources to get him?



143Account Management Portfolio

Model of McDonald

Invest/Grow SelectivelyInvest

Maintain Manage for cash/withdraw

Competitive strength

Customer Attractiveness

H

H

L

L

Model is based on

the classic McKinsey

model

Key /Strategic accounts


144Positioning of Strategic Account Management

Positioning Model of Gosselin & Heene (2000)

Key Accounts Strategic Accounts

Transactional Customers Captive Customers

Relationship willingness(Customer)

Competence Leverage

Willingness(Supplier)

H

HL

L

Not stable :Invest in specific

solutions or manage

for profit

Invest in relationship

or reduce investments

Source: D-P Gosselin, 2002

145Characteristics of the process

Selection of Strategic accounts

Process & Resource allocation

Competence

Advanced Research



146The Principles of

Account Management Process

Source: Senn & Zeier 2000

Building Long-term Relations

Developing Consistent Products/Services

Providing a Network Organization

Winning and

keeping Strategic

Customers


147

Where do successful Companies perform better?

Study conducted by the University of St.Gallen: Senn 1998 & 1999, Senn & Arnold 1999:• N = 200, CS = Customer Satisfaction. High-low pairs significantly different at .01 level• Avg. CS of High Performing Group = 79%, Avg. CS of Low Performing Group = 63%• Results based on supplier performance resp. customer satisfaction ratings by their key accounts

65 % 40 %

68 % 42 %

69 % 46 %

Building Long-term Relations

Developing Consistent Products & Services

Providing a Network Organization

High Performers

(Avg. Performance)

Low Performers

(Avg. Performance)Account Management Processes



148


NEGOTIATION SKILLS


149Objectives

At the end of this training, you will be able to Determine the importance of negotiation in the sales process Identify key steps to take at every point in the negotiation process Determine how to use various negotiation strategies to achieve

results Use effective communication to achieve good negotiation

outcomes.


150Content

What is Negotiation?Negotiating with Prospects and

CustomersNegotiation StrategiesCommunication Skills



151

What is Negotiation?

152What is negotiation?

Simply put... the process of getting what you want from another person.

The truth is we negotiate every day, everyone in their every day lives is a negotiator. Children negotiate with their parents for things they want. Spouses negotiate with each other over things they should buy or

do this weekend eg. go to the funeral, the wedding or take the children to their friend’s party?

Subordinates negotiate with their bosses over deadlines. Workers negotiate with their clients over services they can offer

them.MASS Training Copyrighted Makhzani Marketing Dep.

153Why negotiate

Negotiations occur for several reasons: To convince people to take your side of an issue To agree on how to share or divide a limited resource To resolve a problem or dispute between the parties To sell a product or service

Sales negotiation


154Sales negotiation

Sales negotiation can be a formal event at a specific time and date or it can be ongoing at different points in the sales process.

As a sales staff you are seeking a mutually beneficial relationship with your prospects and clients, not something that benefits only you or them. Why do you need

to negotiate with customers in the

first place?MASS Training Copyrighted Makhzani Marketing Dep.

155Because of Customer Attitudes

A customer’s attitude toward your product or service generally falls into one of four categories..... Objection Indifference Skepticism Acceptance


156Customer Attitudes

Acceptance : Customer agrees with your benefits

and has no negative feelings

toward your product

Skepticism : Customer is

interested in a particular benefit,

but doubts whether your

product can really provide the benefit

Objection : Customer displays opposition to your

product

Indifference :Customer shows a lack of interest in

your product because of no

perceived need for its benefits


157S0 why do you need negotiation skills...?

To be able to change customer attitudes towards your products and services;

Bottom line....... To win more Customers

and improve profits for your organisation.



158

Negotiating with Prospects and Customers

159Negotiating with prospects and customers

Negotiation with prospects and customers must be undertaken within the context of the sales process. Where inadequate prospecting, pre sales preparation and

planning is done, negotiation is likely to be unsuccessful.

So what does the sales process entail?



160Overview of the sales process

1 .Prospecting and qualifying

2 .Planning the sales call: The pre approach

3 .Approaching the prospect

4 .Sales presentation and demonstration

5 .Negotiating resistance and objections

6 .Confirming and closing the sale

7 .Following up and providing after sales service

161Overview of the sales process

Negotiation with the prospect usually begins after you have had the opportunity to present your products and services or after step 4 in the sales process.

At this point, you will be able to gauge whether the prospect objects is indifferent is skeptical or accepts your product or service

Based on your assessment of the situation, you can then begin to negotiate.



162

Avoid negotiating unless you have had an opportunity to fully present your products and services

Understand the objections raised by your prospect and identify what your prospect or customer’s main points of interest may be based on these objections

Be prepared to illustrate how your offering will benefit them and quantify the value they will get (if possible)

Be prepared to be patient (which can lead to higher trust between you and your prospect)

Be confident in the value your product or service will provide your prospect

Be prepared to work toward a solution that works for both you and your prospect

Know in advance at what point the negotiation is no longer beneficial to you and your organisation and be prepared to walk away

Before negotiation begins...

Negotiating with prospects and customers


163

Use open ended questions to confirm your understanding of their needs.

Be prepared for tactical responses from prospects and customers – such as exclamations after you explain the terms of your service (eh, aba! etc) or silence – don’t react and instead respond with more questions

Don’t rush to fill pauses with more talk – be comfortable with moments of silence

Listen

Be prepared to make slight adjustments for your prospect if possible eg. Adjust the product/service offering, loan payment terms etc.

Try to identify small things you have both agreed on to help develop positive momentum – summarize these agreements periodically

During negotiation...



164

If you are able to make a sale…Summarize verbally and/or in writing the

details of what you and the customer have agreed on as the terms of the service.

Thank the customer/ prospect for their time and reinforce the purchase decision

For your next negotiation, review the points that seemed to help move the negotiation process forward – study them, know them,

use them

If you did not make a sale…Sincerely thank the prospect for their time Avoid appearing annoyed or disappointedGive the prospect an “out” or an opening

for them to come back to you/your organisation in the future (have this

statement prepared)For your next negotiation, review the points

that seemed to prevent the negotiation process from moving forward – study them,

know them, and act accordingly

After the negotiation...


165 Handling objections and resistance

Objections can be defined as statements, questions, or actions by the prospect that indicate resistance or an unwillingness to buy . . . at least yet

Without sales resistance, there wouldn't be any need for salespeople The first person who reached the prospect would make the

sale Serious negotiations seldom begin until the prospect's

objections surface MASS Training Copyrighted Makhzani Marketing Dep.

166Handling objections and

resistance

Prospects and customers raise objections for a myriad of reasons• Some people will almost always raise objections, even if they really need the

product/service• They may be people who naturally raise objections as a matter of buying technique or

negotiation strategy• The prospect may seek reassurance that the product/service will perform or yield

the benefits promised• A few prospects will raise objections merely to irritate you the salesperson


167Handling objections and

resistance

• Some prospects raise objections so that they can bargain for a better deal. Irrespective of how good your terms may be compared to the competition, some prospects are obsessed with getting an even better deal so that they can feel “victorious.”

• Prospects may raise an objection because they have a bias against the your organization or type of service or, in rare cases, simply dislike you the salesperson.


168Handling objections and resistance

Identifying and negotiating the prospect's most important or key objection is the first step to negotiating total prospect resistance.

One subtle way is by engaging the prospect in informal conversation before the sales presentation and encouraging him or her to reveal personal concerns and perspectives on problems

Which other ways can you think of?



169Negotiation outcomes

PROSPECT

SALES PERSON

Win Lose

Win Both the prospect and the sales person are satisfied with the terms of the sale and a good business relationship develops

The salesperson is satisfied with the sale but the prospect is not. He may even feel manipulated or taken advantage of. The business relationship is in trouble

Lose The prospect is satisfied with the sale but the sales person feels manipulated and may reciprocate in future negotiations or reduce customer service. The business relationship is in trouble.

Both parties are dissatisfied with the sale thus the bond of trust between them may be so damaged that they are unlikely to enter into any future business relationship.

170

Common mistakes to be avoided in negotiation

Inadequate preparation Use of intimidating behavior Impatience Loss of temper Talking too much, listening too little, and remaining indifferent to body language. Arguing instead of influencing.



171

Negotiation Strategies

172Negotiation Strategies

There are various well tested strategies that can be used to achieve a win-win outcome, such as those used by Akosua and Ebo as outlined in this section.

Akosua and Ebo decide to visit a well known business area to win new clients for their institution.

Their first stop is an office located in the area with a lot of staff who are ideal potential clients. Akosua and Ebo intend to introduce their services to them, get them to be interested in the services to the point where they will actually sign on for a service such as open an account and/or take a loan.MASS Training Copyrighted Makhzani Marketing

Dep.



Strategy ApproachVinegar – Honey

Start with the cheapest possible product or service but one which still has benefits for the prospect.

Akosua approaches one of her prospects and informs him that he can access a loan with very little effort – she goes ahead to explain the procedure for obtaining a loan from her organization.

Practice with the cheapest product/service on your

listing.



Strategy ApproachPinpoint the need

Focus on the need ie. Why a loan will be beneficial to the prospect and enumerate the benefits s/he would derive from the loan.

Akosua’s prospect appears skeptical about the process and

indicates so, stressing that he knew people who had been made

similar promises but went through a lot of stress to obtain

loans.

She ignores his comment and begins to highlight the benefits to

be derived from such a loan.



Strategy ApproachChallenge

The prospect throws a challenge at Akosua in an effort to win some concessions.

The prospect goes quiet for a while then tells Akosua that he needs a loan of GHC 5,000 but

wants to be able to negotiate the terms of payment because he

knows two people from his office who got a similar deal.



Strategy Approach

Limited Authority

Limited authority is an attempt to postpone the decision on a pretext to get approval from a competent authority. Whereas the real aim is to gain time for reconsideration, and/or keeping the prospect still interested in the service for a reasonable period of time until a win-win situation is achieved.

Akosua says, ‘those two people you are referring to took huge loans and so were given the opportunity to negotiate their terms of payment’ . But she indicates that she will speak to her boss about it.



Strategy ApproachGood Guy/Bad Guy

The good guy / bad guy is an internationally used strategy. One member of a team takes a hard line approach while other member is friendly and easy to deal with. When bad guy steps out for a few minutes, the good guy offers the deal that under the circumstances seems too good to refuse. Bad guys usually comprise spouses, lawyers etc.

Based on your experience on the field, how would you act out the good guy/bad guy strategy to your favour?



Strategy Approach

Defer

Deferring strategy allows the negotiators time to reevaluate their positions. Deferring a decision often proves that patience pays.

Please excuse us while we discuss ways in which we might provide you a better offer. Would you please reevaluate your position too?


Keep It Light You never want to let negotiations become too tense. Always feel free to smile and

inject some humour in the conversation.

Lightening up the mood can ingratiate you with your prospect while also conveying your negotiating strength.

If you do not appear to be taking the negotiation as a do or die affair, your prospect may conclude that you are ready to move on if s/he does not cooperate and based on that s/he may decide to be cooperative.



Communication Skills



akhzani Marketing Dep

.

180

181Communication Skills

Communication skills are crucial in the kind of negotiations you engage in as field staff. Good communication is the cornerstone of any productive negotiation. Particularly important are Oral communication and Non-verbal communication

It is also important that as field staff you are aware of critical cultural norms that exist within your area of operations. Fortunately, the Ghanaian culture does not vary too much from one place to another


182Oral Communication

Oral communication implies communication through the mouth. It not only refers to speaking but includes the ability to listen as well.

Specific examples of oral communication include: Face to face communication in conversation, be it direct or telephone

conversation, meetings, interviews, speeches, presentations, discussions etc.

Oral communication is significant in building rapport and trust with customers.



When communicating with your prospects and customers Slow down your speech and pronounce your words clearly

and correctly. Vary your pitch, tone and volume to emphasize key words or

sentences. Adjust the volume of your voice to your audience

speak softly but audibly when you are talking one-on-one speak louder when you are talking to a larger group or across a room

Be conscious of your speech to avoid filler words such as um, uh, ah, like, well etc. MASS Training Copyrighted Makhzani Marketing

Dep.


Organize your thoughts and ideas before speaking (e.g. write notes on what you want to say).

Do not interrupt when someone else is speaking. Respond non-verbally to show understanding and interest when

communicating nodding your head, smiling etc.

Make eye contact when listening or talking to people. Be specific when asking questions and giving answers. Take notes if necessary to help you remember what is being

communicated.



Phrase your words properly; it makes a difference.

Two priests were so addicted to smoking that they desperately needed to puff on cigarettes even when they prayed. Both decided to ask their superior for permission to smoke.

The first asked if it was okay to smoke while praying? Permission was denied.

The second priest asked if he was allowed to pray while he was smoking. His superior found his dedication admirable and immediately granted his request.


186Listening: a strong negotiation tool!

Perhaps the best strategy to adopt while the other side lets off steam is to listen quietly without responding to their attacks.

You often get more through listening by finding out what the other person wants than you do by clever arguments supporting what you need.

Generally, good techniques of good listening include paying close attention to what is said, asking the other party to spell out carefully and clearly exactly what they mean, requesting that ideas be repeated if there is any ambiguity or uncertainty.


187Non-verbal communication

When we do not know others, their body language remains the first source of building image about them.

What people say may be reinforced or contradicted by the non-verbal cues.

When there is no consistency between the verbal and non-verbal communication, people rely on the non-verbal aspect of communication to determine the true meaning of what is being said.


188Non-verbal Communication

VibesSymbolic

How something is said instead of what is said i.e. volume, rate and

rhythm, silent pauses, sighs etc .Facial expressions, body gestures,

dress etc.

KinesicsParalanguage

Feelings and emotions received from others through their body

actions



189Non-verbal communication

Body Language What it could meanAvoiding eye contact Lack of confidence in bargaining position

Making excessive eye contact Trying to bully or intimidate

Fiddling with objects such as hair, pencils, or papers

Lack of confidence

Crossing and uncrossing the legs Impatient

Keeping legs and arms crossed Not receptive

190Cultural norms

Some general Ghanaian norms include: Not using the left hand in communicating with others either to give

something to someone or point in a direction etc. Greeting the people we meet wherever we go

What are some of the cultural norms in your

area of operation?
