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!!!