Seliing and Negotiation

7/27/2019 Seliing and Negotiation

http://slidepdf.com/reader/full/seliing-and-negotiation 1/19

SELLING & NEGOTIATION





SELLING

Simply defined, selling is a communication of information to unselfishly persuade a prospective

customer to buy something- a good, service, an

idea or something else.

Selling is all pervasive. It touches upon each

aspect of our life- since childhood through our

teens to professional life.

Selling involves an exchange, and for sales to

happen it is important to understand the 5

conditions that are to be fulfilled.



Selling ( continued)

There must be at least two parties

Each party must have something the might be of

value to the other party.

Each party is capable of communication &delivery.

Each party is free to accept or reject the

exchange offer.

Each party believes it is appropriate or desirableto deal with the other party.



Components of Selling

The desire or creation of a want. The personshould feel he is lacking something.

The urge to satisfy this desire.

The availability of a product or service which cansatisfy this desire.

The knowledge of a person feeling this desire

about the existence of a product/ service being

available. The willingness of person possessing the object

of desire to part with the same for a value.

Willingness to pay the price for value desired.



Selling ( continued)

The belief that it will satisfy the urge.

The decision to purchase the product and

maximize the satisfaction.

Future Sales comes from Current customers and

Customer Referrals.



THE MODEL WITH CUSTOMER

IN THE CENTER

SERVICE ANALYSE

NEEDS

CUSTOMER

GAIN COMMITMENT PRESENTPRODUCT

BENEFITS



Selling (continued)

Service to others

Use the golden rule effectively

Communication ability ---V & NV

Characteristics of the job Excel in Strategic thinking

Sales Knowledge

Stamina for the challenge

GET TIRED IN YOUR WORK, NOT TIRED OF UR

WORK



Diff. Between SALES/ MKTG.

SELLING CONCEPT MARKETING

CONCEPT

Emphasis on Product Emphasis on

Customers‟ Wants Company first makes Determines

customers‟ wants

the product and figures ways

of making it.Management is sales volume Management is

profit orientd

Oriented

Planning is short run in terms Planning is long-



NEGOTIATION

It is the means by which people dealwith their differences.

Negotiation permeates into every

aspect of human life- be it home,work.

Examples can be – parent-child &

their homework, mathematics score,strategic alliances, warring countries,management- unions, and so on.



Roots in the Latin word „”Negotiatus”

meaning “to carry out business.

There are TWO kinds of Negotiations

DISTRIBUTIVE and INTEGRATIVE Distributive --- A negotiation in which the

two parties compete over the distribution of a

fixed sum of value.

The KEY QUESTION “Who will claim the

most value?”

Each side‟s role is to claim as much as

possible., as in the sale of a rug at a street

Negotiation (contd.)



Distributive Negotiation

is unavailable to others.

Example. The sale of a carpet, where the buyer

and the seller do not know each other. There is

no relationship ; all that matters is the price, and

each side haggles for the best deal. Every gain

by one party represents a loss to the other.

Wage agreement between business owners and

their union employees. The owners know that any

amount conceded to the unions will come from

their pockets- and vice versa.

The value of the stake is fixed, and each side‟s

goal is to get as much of it as possible.



Distributive Negotiation

The Seller‟s Goal – To negotiate as high a priceas possible.

The Buyer‟s Goal – To negotiate as low a price as

possible.

Each negotiator aims to „Pull” the final deal to as

close to his desired price as possible.

Information plays a major role in this type of

negotiation. Point to Remember 1. The first offer can become

strong psychological anchor point. 2. Do not

disclose any significant info. on your

circumstances. 3. Information about the other



INTERACTIVE NEGOTIATION is about

creating and claiming value. Through

collaboration and information sharing, theparties look for opportunities to satisfy the key

objectives of each, recognizing that they will

probably have to give ground on other

objectives.

The parties co-operate to achieve maximum

benefits by integrating their interests into ana reement while also com etin to divide the

INTEGRATIVE NEGOTIATION



INTRGRATIVE NEGOTIATION (

cont.)

Twofold task of integrative negotiation

To create as much value as possible for you.

To claim value for yourself.

WIN –WIN Situation for both the parties. In integrative negotiation, apart from price,

delivery date, and any other single issue are not

important singly. Opportunities for creativity

abound. Mark Gordon coined “ Collaborative bargaining”–

Parties look for creative options, and not focus on

which concessions to make.



This situation faced by the people who

enter any type of bargaining situation. They

must determine which game to play:

aggressively claim the value currently onthe table (and possible come out loser), or

work with the other side to create even

better opportunities that can be shared. No matter which type of negotiation we‟re

faced with, it‟s bound to be more complex,

if it is multiphased or involves multiple

The NEGOTIATOR‟S DILEMMA



MULTIPLE PHASES & PARTIES

Multiphase transactions offer prospect of futuredealing and residual advantage. Trust is built, and

it fosters co-operative behavior.

Multiparty negotiations typified by coalitions

among more than two parties.

Natural coalition – Those who share broad range

of common interests. Single issue coalition – Those who differ on other

issues, but unite to support / or block a certain

issue.



Discuss Traditional NegotiationSkills vs. contemporary negotiation

skills ?

Traditional verses Contemporary



B A T N A

BEST ALTERNATIVE TO A

NEGOTIATED AGREEMENT.

Know your B A T N A

Documents

Seliing and Negotiation