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Institute of Management Technology

Ghaziabad

Sales Management Project

Buyer Seller Dyad & Spin technique

Submitted To Submitted By – Group

Dr Sanjeev Prashar Mohit Sharma 09FT-088

Mohit Gupta 09FT-087

Neeraj kumar 09FT-096

Navnish Saurabh 09FT-094

Megha bhat 09FT-084


Buyer Seller Dyad & SPIN Technique
[ ]
PREFACE

We undertook the project “Buyer Seller Dyad & Spin technique” as a part of our course
curriculum of PGDM in the field of Sales Management at IMT, Ghaziabad.
The duration of our project was 4 weeks. In the Duration we studied many companies
from different sectors and Analysed there buyer seller relationship

We have tried to incorporate the results to the best of our abilities & available resources.

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ACKNOWLEDGEMENT

There is always a sense of gratitude, which everyone express to others for the
helpful and needful services they render during different phases of life and help to
achieve the goals. We too, want to express our deep gratitude to each and everyone who
have always been helpful to us in getting this project to a successful end.
We are thankful to Prof. Sanjeev Prashar (Professor, IMT GHAZIABAD), who is
not only our teacher in-charge of Sales Management but also our guide for this project.
We express our humble thanks to his for spacing every moment out of his busy
schedule for us, who has not only guided us properly but also gave us an encouraging
help to make this project successful one. Without his able guidance, we would not have
been able to complete this project.

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1 Executive Summary

The project attempts to provide a comprehensive conceptualization of the buyer seller


interaction process as well as spin technique used in selling. Selling may be viewed as a
process in which two individuals exchange items of value. In reality, it is likely that
buyer & seller exchange attributes with both physical & psychological values. This
project presents a simple view of buyer seller interaction & spin technique process.

1.1 Objectives: -

To find out actual practices of companies that implement buyer seller dyad as well spin
technique. These companies have been chosen from five different selling strategies: -
Communication, Negotiation, Persuasion, Client profit planning, Business development
strategy.
Further SPANCO technique has been analyzed w.r.t. to IMS India pvt ltd. (A CAT
coaching institute)

1.2 Scope:-

The literature review has been carried out to understand the evolution of relevant theories
of sales management. Further, the companies have been selected from in and around
Delhi/ NCR region.

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PREFACE
ACKNOWLEDGEMENT ....................................................................................................................
..
2.3.1 Content of Communication ............................................................................................... 12
1
2.3.1.2 Social Organizational Utility ...................................................................................................... 12

1.2..................................................................................................................................
TABLE OF
........................................................................................................................CONTENT S
LIST OF
FIGURES............................................................................................................................... .
BUYER
2 ..............................................................................................................SELLERDYA D
2.1........................................................................................................................
2.2..............................................................................................................
2.3...........................................................................

Content of
2.3.1 Communication...............................................................................................
Functional
2.3.1.1 Utility .....................................................................................................................
.
Social Organizational
2.3.1.2 Utility.....................................................................................................
.
Situational
2.3.1.3 Utility .....................................................................................................................
.
Emotional
2.3.1.4 Utility.......................................................................................................................
Curiosity
2.3.1.5 Utility .......................................................................................................................
.
Style of
2.3.2 Communication ...................................................................................................
Task Oriented
2.3.2.1 Style ..................................................................................................................
.
Interaction Oriented
2.3.2.2 Style .........................................................................................................
.
Self Oriented
2.3.2.3 Style ...................................................................................................................
.
Determinant
2.3.3 Factors........................................................................................................
Personal
2.3.3.1 factors ........................................................................................................................
.
Organizational
2.3.3.2 factors...............................................................................................................
.
Product-related
2.3.3.3 factors..............................................................................................................
.
DYADIC SALES PROCESS
2.4 MODEL ...........................................................................................
Source
2.4.1 Legitimization ......................................................................................................
Information Exchange - Problem
2.4.2 Identification ................................................................
Attribute
2.4.3 Delineation .......................................................................................................
Attribute Value
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List of Figures

Figure 1: Buyer Seller InteractionFramework ........................................................................................ . 11


Figure 2: Dyadic Sales Model ................................................................................................................. 16
Figure 3: Social Style Matrix .................................................................................................................
. 19
Figure 4: Gender interaction on identification skills................................................................................ . 20
Figure 5: Traditional Selling Process...................................................................................................... . 22
Figure 6: SPIN Technique of Sales......................................................................................................... . 24
Figure 7: SPANCO sales Technique....................................................................................................... . 29

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2 Buyer Seller Dyad

2.1 Background1
In their initial researches, researchers had found that the emphasis in business is placed
on finding the ideal sales type while doing salesman selection. The salesmen were
thought of as outgoing, bluff, hardy and aggressive. They were mostly found to be money
oriented in compare to their counterparts in technical line who were work oriented. Initial
sales approaches were:
 The Sales Personality: what the salesman must be. This approach argues that
salesman must be mentally tough but he must have more tact, diplomacy, and social
poise than most other employees. He must be ambitious, self confident and like to
travel.
 The Persuasive Salesman: how to persuade or manipulate prospect. This approach
argues that regardless of the type, all prospects will buy from someone. You can be
the one if you learn to classify prospects and then use the methods, principles and
techniques that permit you to handle various prospects in profitable manner.
 The Adaptable Salesman: be whatever the prospect wants. According to this
approach good salesman is a chameleon and likes being one. Salesman should be
what the client wants; to make the client feels the salesman understand him.

A lot many studies in sociology and social psychology have dealt with variables which
are important to person interaction system. It was mostly fund that though salesman
realize that he must please their prospects but he mostly tend to deny the importance of
personal relations. Salesmen claim that a prospect‟s age,
religion, ethnic background or appearance makes no difference to them. They mostly
equate hard work with success. They deny the importance of their interaction with
particular kind of prospects. But various researches have shown that successful dyads are
more alike than the unsuccessful one.

2.2 Literature Review

Personal selling requires two people i.e. Buyer and Seller. Different researchers have
analyzed these two among different dimensions.

1
F. B. Evans, “ Selling as a dyadic relationship A new approach”, American Behavioural Scientist, May
1963
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 Harry Hansen [1961] simply classifies salesmen into two groups i.e. Industry
salesmen and consumer salesmen.
 Robert McMurry [1961]2 discusses selling in terms of creativity level required for
selling the product – Direct Selling, Inside Order Taker, Outside Order Taker,
Missionary Salesperson,
Creative Sale of Tangible Product and Creative Sales of Intangible.

 Beckham and Davidson [1962] classify them into – Industrial users, wholesalers,
retailers and consumers. They have argued that need for creativity varies from one
person to another, although the salesman is selling the same product line. So
adaptability of selling behaviour to the expectation of customer would results in a
more effective selling relationship.
 F. B. Evan [1963] in his research had found that more alike the salesman and the
prospect are the greater is the likelihood of success. This is true for physical
characteristics (age, height), objective factors (income, religion, education) and
variables (politics, smoking) that may be related to personality factors.

 M. S. Gadel [1964] in her research “Concentration by


salesman on congenial prospect”; had found the seller concentration.
It is found that salesman selling efforts are more influenced by the ease of approach
and comfort with prospect. Because of this company misses some market because of
its salesman chosen prospect. Some of the factors for concentrations are sales person
age, sex, race, occupation, ethnic origin etc.
 Henry L Tosi [1965]3 discusses the effect of expectations and buyer seller role
consensus on the success of salesman. In his research he had found that salesman who
is perceived by the

customer as meeting customer‟s requirement is more likely


to have less competition from other salesman. Thus behavioral
expectations of the buyer may be an intervening, or moderating variable.
 H Lee Mathews (et al) [1972] 4 in their research have found that actual similarity may
be not as powerful a predictor of behaviour as perceived similarity. They had studied
the cooperative and conflict behaviour in buyer-seller dyad. They have found that
telling subjects that they were alike did increase the cooperative responses. The
illusion of similarity is important consideration buyer-seller interaction.

2 The Mystique of Super Salesmanship, Harvard Business Review, March – April, 1961
3 “Effect of expectation levels and role consensus on the buyer seller dyad”
4 “Bargaining Behavior in a Buyer-Seller Dyad”

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5
 Paul Busch and David T. Wilson [1976] have analyzed the effects of differential
levels of salesman‟s expert and referent power bases on customer. Social
Power is the ability of one person or group to cause another person or group to
change in the direction intended by the influencer. In their research they have argued
that social power is a source of influence in a relationship. They have analyzed expert
and referent bases of social power. Expert power is based on the
influence‟s perception that the influencer has valuable
knowledge, information or skills in the relevant area. Referent power is
based on the perceived attraction of members in the dyad relationship. They have also
found that expert power is more important than referent power as a factor affecting
trust.

2.3 Buyer Seller Interaction Framework6


This is a comprehensive conceptualization of the buyer-seller interaction process. This
framework is comprehensive enough to include all type of buyer-seller interactions.
These can be interpersonal (face to face), written or even telecommunication in nature. It
also includes buyer-seller Interactions in both household and organizational marketing. In
other words, it is capable of explaining the process of buyer-seller interaction which takes
at the retail outlets for consumer goods as well as between sales representatives and
purchasing agents of formal organizations.

The basic postulate underlying the conceptual framework summarized in figure 2.1 is that
whether a specific buyer-seller interaction will or will not work is a function of two
distinct dimensions of interaction.

5
“An Experimental Analysis of a salesman‟s expert and referent bases
of social power in the buyer-seller dyad”
6
Jagdish N Sheth “Buyer Seller Interaction: A conceptual framework”, Advances in
consumer research

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Figure 1: Buyer Seller Interaction Framework

The first dimension is the content of communication representing the substantive


aspects of the purposes for which the two parties have got together. It entails suggesting,
offering, promoting or negotiating a set of product-specific utilities and their
expectations. Often the expectations offered by the seller and desired by the buyer for a
specific product or service do not match resulting in failure of the interaction transaction
to be consummated successfully and satisfactorily.
A second dimension of buyer-seller interaction determination is the style of
communication. It represents the format, ritual or mannerism which the buyer and the
seller adopt in their interaction. The style of interaction reflects the highly individualistic
preferences and normative expectations of the buyer and the seller about the process of
interaction itself. Much of the search for the super salesman is often localized in
identifying the style of interaction of highly successful salesman in organizational
marketing.
The buyer-seller interaction is presumed to perform any of the following five functions:
 Increase awareness of each other's expectations about the product or service;
 Remind each other's past satisfactory transactions and their behavioral outcomes;
 Reinforce each other's behaviour related to the sale of the product or service;

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 Precipitate behavioral actions on each other's cart by intensifying expectations; and
 Persuade each other to change their respective expectations.

Whatever the objective, a satisfactory interaction transaction between the buyer and the
seller will occur if and only if they are compatible with respect to both the contest and
style of communication. Both the style and content of buyer-seller communication are
determined by a number of personal, organizational and product related factors. For
example, the personal life styles and backgrounds will often determine the style of
communication the buyer or the seller chooses to engage in. Similarly, organizational
training and orientation will also mould the buyer or the, seller with respect to the style of
communication he is expected to engage in. Finally, the content of communication is
likely to be determined by product-related variables such as market motivations, buyer
and seller plans and technology or competitive structure of industry.

2.3.1 Content of Communication


In underlying buyer-seller expectations about a product or service, there lies a five
dimensional utility space. The five dimensions represent different types of product-
related utilities which the buyer desires and the seller offers to each other. Each type of
utility is briefly described below:

2.3.1.1 Functional Utility


It represents product's utility which is strictly limited to its performance and which
defines the purpose of its existence and classification as a type of good or service. The
functional utility is often measured in terms of a person's expectations on a number of
product-anchored attributes or evaluative criteria. It is presumed to be a complex function
of positive and negative expectations on multi-attribute profiles.

2.3.1.2 Social Organizational Utility


Sometimes a product or service acquires social-organizational connotations or imageries
independent of its performance or functional utility. This is due to its consistent
identification with a selective set of socioeconomic, demographic or organizational types.
Such identification with a selective cross-section of household or organizational buyers

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tends to impute certain utilities or disutilities in the product or service producing imagery
or a stereotype.

2.3.1.3 Situational Utility


It represents a product's utility which is derived from existence of a set of situations or
circumstances. The product or service has no intrinsic or independent utility and will not
be offered or bought without the presence of circumstances which create its need. The
situational utility is often strong among those products or services which are consumed
on an ad hoc basis rather than on a continuous basis. It is extremely important te identify
situations and activities which add to the utility of the product or service.

2.3.1.4 Emotional Utility


Sometimes a product or service evokes strong emotive feelings such as respect, anger,
fear, love, hate or aesthetics due to its association with some other objects, events,
individuals or organizations. The strong emotive feelings are therefore generalized to the
product or service resulting in a different type of utility or disutility. Organizations also
tend to manifest emotive behaviour as is evidenced in international trade and cross-
national negotiations.

2.3.1.5 Curiosity Utility


It is often present in both household and organizational products or services is related to
novelty^ curiosity and exploratory needs among individuals.
Each product or service has a vector of the five types of utilities described above.
Furthermore, both the buyer and the seller will have certain expectations about the
product or service on these five types of utilities. It is not at all uncommon both in
household and organizational marketing to learn that the specific utility expectations of
the buyer and the seller do not match resulting in some form of incompatibility with
respect to content of interaction.

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2.3.2 Style of Communication
It refers to the format, ritual and mannerism involved in buyer-seller interaction. The
style of interaction is presumed to be three dimensional. The specific dimensions are
described below:

2.3.2.1 Task Oriented Style


This style of interaction is highly goal oriented and purposeful. The individual is most
interested in the efficiency with which the task at hand can be performed so as to
minimize cost effort and time. .Any activity during the interaction process which is either
not task-oriented or inefficient is less tolerated by the individual who prefers the task-
oriented style. The buyer or the seller who prefers this style of interaction often tends to
be mechanistic in his approach to other people.

2.3.2.2 Interaction Oriented Style


The buyer or the seller who prefers this style of interaction believes in personalizing and
socializing as an essential part of the interaction process. In fact, preference for this style
of interaction is often manifested at the loss or ignoring of the task at hand. The buyer or
the seller motivated by the interaction-oriented style is often compulsive in first
establishing a personal relationship with the other person and then only getting involved
in the specific content of interaction.

2.3.2.3 Self Oriented Style


This style reflects a person's preoccupation with himself in an interaction situation. The
concepts of self-preservation, self-survival and self-emulation tend to dominate this style
of interaction.
Unlike content of interaction, it is more difficult to change or adapt with respect to style
of Interaction. This is largely because the style orientations of individuals are often deep
rooted in personality variables, early socialization processes and personal life styles.

2.3.3 Determinant Factors

These are classified into three categories:

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2.3.3.1 Personal factors

(Background, lifestyle and role orientation) anchored to the individuals involved in the
interaction. These factors are likely to determine the style of interaction each individual
prefers.

2.3.3.2 Organizational factors

Even in household marketing, we believe there are organizational factors not; only
associated with the seller but also with the buyer in so far as a typical household has
some organizational structure, no matter how implicit it may be. These factors often
determine both the style and the content of interaction. The content will be heavily
influenced by organization objectives and to some extent by organization structure.
Similarly, each organization has explicit or implicit style of management often dictated
by the top man in the organization.

2.3.3.3 Product-related factors

Anchored to market motivations, competitive structure and buyer-seller plans. It


determines the content rather than the style of interaction. It refers to the generalized
needs, wants and desires customers have for which the specific product is more or less
relevant.

The three types of determinants of style and content of interaction are extremely relevant
to isolate individual differences among buyers and sellers, product differences for the
same buyer or seller, and organizational differences for the same product. They
essentially serve the function of reducing all the buyer-seller interactions to a common
base by partialing out the effects of personal, organizational and product differences.

2.4 Dyadic Sales Process Model7


Selling may be viewed as a process in which two individuals exchange items of value. In
most simple situation, the buyer receives a product and seller receives money. In reality
the two, exchange attributes with both physical and psychological values. This model,
7
David T Wilson, “Dyadic Interaction: An Exchange Process”, Advances in Consumer Research

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proposed by David T Wilson, is concerned with the development of long term buyer-
seller relationship rather than one shot selling situations.

Figure 2: Dyadic Sales Model

This model proposes four stages in dyadic sales are:

2.4.1 Source Legitimization


It is found that sources of information are differentially preferred as a function of type of
selling situation. The situation ranges from new task to re-buy situation. The sales
person‟s role shifts over time as the buying situation moves from new task to
the re-buy situations. In new sale salesperson needs to develop source credibility and
legitimization. Unless basic acceptability is developed, further communication is likely to
become quite ineffective if not impossible.

Although the salesperson may be perceived on a number of dimensions, the dimension of


expert-non expert and similar – dissimilar have received the greatest attention. The basic
objective of this stage is to establish salesman as a credible and legitimate partner in the
dyadic interaction process.

2.4.2 Information Exchange - Problem Identification


This stage involves bounding the problem to be solved through a purchase. The amount
and nature of the information exchange is likely to be given more information quicker
than other salespersons.

The salesperson attempts to establish the nature of the problem in order to be able to
suggest an attribute package that will results in a sale. The salesperson is also concerned
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about positioning the attribute package with respect to competition and in
developing a
strong bargaining base.

2.4.3 Attribute Delineation


In this stage, the dyad develops the bundle of attributes that will be exchanged. Many of
the attributes will be explicitly discussed while other attributes may be implicitly
determined. Although both parties developed the attribute set, the salesman can have a
major influence in the development of the attribute set through guidance and direction of
the buyer.

Also of importance is the nature of the product. If there are product differences then they
may be used to differentiate the various attribute packages. However, if substantial
product differences do not exist, then intangible attributes may dominate.

2.4.4 Attribute Value Negotiation


The determining of the attribute set and the exchange rate of each attribute can be viewed
as a bargaining process. The seller will likely attempt to increase the importance in the
choice of his strong attributes while the buyer may attempt to suggest an increased
importance of the seller's weaker attributes In hopes of gaining an increased level of other
attributes. It is found that perceived similarity improved cooperation in a simulated
buyer-seller bargaining situation. A "prisoner's dilemma" game was used as the
bargaining vehicle.

2.4.5 Relationship Maintenance


In the final stage of the model, the dyad maintains and builds upon their relationships.
New personal attributes of the relationship may develop which enables it to grow from a
business relationship to a more personal business friendship relationship. A certain
amount of implicit bargaining over exchange values may take place particularly if
problem with performance attributes arises.

The importance of individual attributes likely varies as a function of the stage of the
relationship. Careful work needs to be done on the stages in which the attributes set is
developed and values of the individual attributes are negotiated.
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2.5 Relationship Skills of Salespeople
With the increased emphasis on establishing long term customer relationships in the
selling process, greater emphasis needs to be placed on hiring salespeople that possess
skills in identifying communication characteristics in prospects. This identification
process is an essential first step in the salesperson being able to adapt his or her behaviour
to permit a greater comfort level to be experienced by the prospect subsequent trust being
established over an extended period of time.
To take complete advantage of the potential benefits of the dyadic exchange process, the
adaptive approach has been expanded to include the observed personal behavioral
characteristics of the prospect. Adapting to the social styles of prospect enables the sales
message to be received with greater receptivity. It increases the comfort level and reduces
perceived risk of prospect in proposed transaction. It will increase the likelihood of
proposed transaction, possibly resulting in a profitable long term relationship between
buyer and selling organization. For this ability to correctly identify the observed social
style of the prospect is a precursor to effective adaptation.
The three variables that affect a person‟s sensitivity to
cues in others are:
• Assertiveness
• Responsiveness
• Gender

First two variables are core components of person social style and are readily measurable
through diagnostic test. By combining assertiveness and responsiveness to form social
style matrix four distinct classifications are obtained and a subject can be placed into it.

8
Michael K Rich & Daniel C Smith, “Determining Relationship Skills of prospective salespeople”, 2000

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Figure 3: Social Style Matrix

2.5.1 Responsiveness
It is defines as the extent to which one reacts to appeals, influence or stimulation
or how feelings, emotion, or impressions are shown to others. A highly responsive
person will be friendly, informal, open, emotional, undisciplined and relationship
oriented. They will tend to “emote” feelings while being sensitive to both verbal
and nonverbal signals being sent by others. A person with low responsiveness will
want to work in an environment where he or she has more time alone instead of
having to make conversation with others. They seem to “control” and are less
sensitive to cues generated by others.

2.5.2 Assertiveness
It is defined as the degree to which one states opinions with assurances,
confidence, and force, and the extent to which one attempts to direct the actions of
others. A highly assertive person will seek control over others, they will be
competive, fast acting, risk-taking, take charge type who is very directive. A low
assertive people will be cooperative, slower acting, avoiding risk, going along
with the group, exhibiting non directive tendencies.

2.5.3 Gender
It is found that females are inherently more sensitive than males to their
surroundings. It is also found that females have greater sensitivity to relevant
information when forming judgments, enhancing their identification skills.

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Females emphasize care and concern for interpersonal relationships, empathy,
and understanding of emotional needs and feelings to greater degree than males.

Figure 4: Gender interaction on identification skills

Hence females identify social style better than males. Gender could thus be an overriding
variable in determining the effects of responsiveness and assertiveness ability of
salesperson.

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3 SPIN TECHNIQUE OF SALES

3.1 BACKGROUND
Strong sales and influence skills are crucial to business success as a financial adviser.
Without the ability to convert complacent, disinterested and distracted prospects into
motivated, paying clients, an organization will be unable to turn its expertise into
commercial success.

While traditional selling styles and programs may have been fine in the transactional
environment of yesteryear, today‟s advice-driven profession needs solutions
that will enable advisers not only to make a sale but also develop a trust-based
relationship with each client.

Rackham believes that traditional selling is suitable for most common


transactions.
However, „major‟ sales must be handled differently because they have
the following

characteristics:-
 A lengthy selling cycle
 A significant commitment by the buyer
 An ongoing relationship after the sale
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3.1.1 What’s wrong with ‘traditional’ selling?
Let‟s take a quick look at the typical steps in a
traditional sale:

Figure 5: Traditional Selling Process

3.1.2 Flaws in Traditional Selling Technique

Rackham identified two major flaws with this approach.


1. Firstly, the quality of the adviser-client relationship is damaged. Clients are keenly
aware of what is taking place as they move through the process.

2. Secondly, the client‟s needs are not developed to the


point whereby they urgently seek your advice and support.

Traditional selling‟s greatest weakness is just this – the


assumption that if I can identify a need and then provide a suitable solution, I will make a
sale. This works for small sales (e.g. a washing machine), but not for large sales (e.g.
financial advice).

Salesman needs a selling solution that not only allows him to establish and maintain a
healthy relationship with prospect, but also creates a sense of urgency for them to do
business with him.
In turn, this necessitates some new „selling skills‟, such as the „SPIN
Selling‟ approach

developed by psychologist Neil Rackham.


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3.2 INTRODUCTION TO SPIN SELLING

3.2.1 What is Spin Technique

The seller uses Situation Questions to establish a context leading to Problem Questions
so that the buyer reveals Implied Needs which are developed by Implication Questions
which make the buyer feel the problem more clearly and acutely leading to Need-Payoff
Questions so that the buyer states Explicit Needs allowing the seller to state Benefits
which are strongly related to sales success.
---NEIL
RACKHAM

The name „SPIN‟ is unfortunate. It conjures up images of crafty politicians


trying to dupe

their electorates. SPIN is in fact an acronym for: situation, problem, implication and
need-payoff.

3.2.2 Characteristics of Spin Selling

 Also known as “Hurt & Rescue Approach”

 The needs are not exactly clear, so the seller looks for clues & tries to uncover the
potential customer's implicit needs and close the sale.
 "SPIN Selling" suggests that the seller should develop a questioning mindset
stating it's "more important to understand than to persuade".
 They also generate alternative actions to propose as needed for the actual sales
visit.
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Figure 6: SPIN Technique of Sales

3.2.3 Spin Technique Questions

 Situation:-These questions get the prospect talking about their current situation.
Ex
 How long have you been staying in this home?
 How long have you worked in this company?

 Problem:-These questions identify the challenges a prospect is facing. Ex


 What all difficulties you face because of power shortage?

 Implication:- These questions access the relative impact of problem areas


 What would happen to a family if head of family meets with an accident?

 Need:- These questions highlight the value of Sellers's product in solving the
prospect‟s problem.
 How can a helmet save person‟s life in case of an
accident?

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3.2.4 Goal of Questioning

The aim of questioning is -TO UNCOVER NEEDS


✔ Implicit need
✔ Explicit needs
Rackham ingeniously identifies two sets of needs – implicit and explicit.
 Implicit needs are those the buyer is aware of.

 Explicit needs are those that the buyer wants to do something about – they play
on your mind, keep you up at night and motivate you to take action.

3.4 SITUATION
• Every good seller begins the sales call by assessing the prospect, by asking
questions to clarify the customer's current situation.

 Seller‟s focus is on finding out background data, facts,


information and needs about the prospect
 This is basically warming up the prospect at the start of the call.
 Short and relevant questions are generally asked to the customer.
• Every person's situation is different and these questions set the stage for tailoring
a custom-fit solution.

 Sellers should not ask questions to elicit information that could have been
obtained before beginning the call easily from other sources.
 When overused, these questions bore the customer.

3.3.1 Example of Situation Questioning


• Seller selling software for documentation
o "Would you describe your current account documentation system?
 Insurance agent
o How many family members do you have?
o Approx annual income & working members?
 Fitness package seller
o Do you exercise regularly?

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o Do you feel you are overweight?

3.4 PROBLEM
 Problem questions are used to uncover the problems, dissatisfactions, difficulties
experienced by the prospect.
 Ask about the buyer's difficulties and focus the buyer on this difficulties while
clarifying the problem
 These give Implied Needs.

3.4.1 Example of Problem Questions


• Seller selling caller id
o How do you keep track of all your customer's phone calls between two
offices?
 Seller selling security system
o When someone goes on vacation, what happens to the properties that he or
she manages
 Medical device seller
o How do you keep yourself updated about your Blood sugar level?
• Tractor seller
o If you are selling tractors, ask about maintenance costs, breakdowns and
so on.
 Insurance product seller
o If you are selling life insurance, ask about how many dependents the
person has.

3.5 IMPLICATION

 Seller discusses possible problems arising out by not


using the product‟/ Service with the prospect.
 Questions should be asked in a very subtle manner.

 Seller discusses the effects of the problem & asks Questions about the
consequences or effects of a customer's problems.

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• He tries to develop the seriousness of the problem to increase
the prospect‟s

motivation to buy.
 The goal of using these questions is to persuade the customer to EXPLICITLY
state a need that seller can solve.
 This is the “Hurt” part of hurt & rescue

3.5.1 Examples of Implication Questioning

• Seller selling security system


o What would happen if an outsider enters your home.
 Medical device seller
o How will you come to know about excessive sugar level in your blood?
 Insurance product seller
o What would happen if the head of family dies or meets an accident?
 CRM package seller
o How much money do you lose when you lose a customer?
o How much does it cost you to get a new customer?

3.6 NEED PAYOFF


 This is basically showing how seller can solve
prospect‟s problem & the benefits that his solution could offer

 The final set of questions reveal how the product or services offered can add real
benefit.
 These questions bring it all together so your solution makes sense to your
prospect and they are ready to buy.

 This is a very neat 'rescue' of „HURT & RESCUE‟, where


prospect ask you to rescue them.

3.6.1 Example of Need Payoff Questioning

• Seller selling security system

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o Would you like to see demonstration of a security system?
 Medical device seller
o Would it help if you can measure your blood sugar level yourself at home
 Insurance product seller
o How would you feel if your family‟s financial future is
secured?
 CRM package seller
o How would it help if your offices were connected with centralized
database?

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4 SPANCO TECHNIQUE

Sales are the front end of a company. The company takes good number of initiatives to
meet customer requirements. Sales & Marketing are the parallel themes of a company to
run. It involves a lot of steps for a salesman to go through. Hence they need to take a few
steps to reach their target or to convince their customers.
Xerox is the company which has given the sales people a term to sales people to handle
sales in professional manner. This is called SPANCO.

Figure 7: SPANCO sales Technique

4.1 SUSPECT

 Sales person investigates about a particular account


 Authority, real need, money capability (QFD) etc are checked

4.2 PROSPECT
 Sales person finds out the prospects after applying QFD as above.
 Probing of prospect to know whether he can be converted or no.

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4.3 APPROACH
 Sales person need to be in touch with customer to find out the competitors
offerings
 Pricing, Schemes etc are looked into

4.4 NEGOTIATION
 Negotiation happens on mutual understanding of both the parties
 Pricing, offers etc are finalized to be a win- win situation for both the parties

4.5 CLOSURE
 Involves closing of the deal

 Finalization of the order is done after finalizing the terms & conditions and
pricing.

4.6 ORDER
 Purchase order comes into picture
 Sales people need to pick the order by agreeing on terms & conditions- payment,
delivery etc

4.7 SPANCO TECHNIQUE @ IMS

o SUSPECTS
o Engineering College /Graduate Students
o Working people
o PROSPECTS
o Students who have taken CAT /MBA exams previously
o QFD– Age , Educational Background, Interest in pursuing MBA career
o APPROACH

o Mails, Cold Calls, Sending brochures, agents trying to persuade students


etc
o Pre-CAT seminars are held highlighting the benefits of MBA as a career .
o NEGOTIATION
o Packages, Schemes, Discounts and course fee are customized on the
basis

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of Diagnostic Tests, OBC/General and Physical Disability.
o Negotiation with Colleges on using their Infrastructure for offering no-frill
service to their students.
o Offering Personality Development Programs and other benefits.
o CLOSURE
o Finalizing Package fee and closing the deal
o Terms & conditions- payment mode etc are finalized.
o ORDER
o Total Students enrolling are finalized

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5 COMPANIES ANALYZED

The companies were visited as per the Sales Strategies followed by them in finalizing the
deals with the clients. It should be kept in mind that no company follows a single Sales
strategy but follows a mix of them depending on the kind of sales process required to
close the sales

5.1 Communication Strategy

In this kind of sales strategy, representative is the personal communicator and provides
information close to the buying decision. The company visited is City Heart Bus Service
and TIME PVT LTD and following is the flow chart of Communication strategy
followed by them till the point of closing the sales.

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5.1.1 BUS SERVICE

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5.1.2 TIME PVT LTD

5.2 Persuasion Strategy

The persuasion level requires the sales representative to go beyond the role of a mere
communicator to the role of understanding at least the immediate and narrow needs of the
customers.
At this stage, the sales representative tries to fit the customer into the existing product or
service mix by skillfully anticipating and overcoming objection. This Strategy is being
experienced by Indian market. The companies visited are ICICI Prudential and
CARRIER LTD.

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5.2.1 ICICI PRUDENTIAL

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5.2.2 CARRIER LTD.

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5.3 Negotiation Strategy

During negotiation, the product and commercial terms are adjusted to meet the
customer‟s needs rather than just attempting to skillfully overcoming
objections as

practiced in previous stages.

The critical skill at this stage of selling is analyzing and understanding the customer needs
and determining how the company‟s products and services can meet
these needs.

At this point, the customer becomes a client and the process of consultative selling
begins.

The companies following this strategy are DOMINOS Ltd and TIMES BUSINESS
SOLUTION.
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5.3.1 DOMINOS LTD.

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5.3.2 TIMES BUSINESS SOLUTIONS LTD

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5.4 Client profit planning Strategy

In India, Client profit planning strategy is applicable in industrial product selling. The
representative is put to work with clients‟ team to learn about profit-planning
system, product,

finance, marketing, research and development and future plans etc. so that the product meeting
the client‟s needs could be developed.

5.4.1 MYRA MABYN

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5.4.2 MIND EXPANSION PORTFOLIO PVT. LTD.

5.5 Business development Strategy

At this stage professional representative is responsible for managing territory as a


strategy business unit- investing time and expenses in most profitable manner.
Few Indian Companies are using a system of national account management in which
manger is responsible for all sales to a few key accounts.
Territory representatives along with sales managers and accounts managers develop
business strategies and bottom line responsibility to meet objectives of the organization.

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5.5.1 HYUNDAI

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5.5.2 BPCL

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5.5.3 KOHLER

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6 REFERENCES
 Major account sales strategy- By Neil Rackham
 Sales Management by Still , Cundiff , Govoni
 How to get greater control of your selling results - Andoni Lizardy
 More Pro active Sales Management – By William Miller

 BUYER-SELLER INTERACTION: A CONCEPTUAL FRAMEWORK, Jagdisb N.


Sheth, University of Illinois
 DYADIC INTERACTION: AN EXCHANGE PROCESS, David T. Wilson, The
Pennsylvania State University
 A dyadic model of relationships in organizational buying: a synthesis of research
results- Brent M. Wren and James T. Simpson
 Secrets to Successful Sales Management The Sales Manager's Manual Jack D.
Wilner
 The effects of expectation levels and role consensus on the buyer seller dyad- Henry
L Tosi
 Bargaining behavior in a buyer seller Dyad- By H Lee Mathews, David T Wilson
 Influence on exchange processes- Buyer‟s preconceptions of seller‟s trust
worthiness

& bargaining toughness by Paul H. Schurr


 The effect of salesman similarity and expertise on consumer purchasing behavior by
Arc G. Woodside.
 Just in time exchange relationship in industrial markets by Garry L. Frazier.

 The customer salesperson dyad: An interaction/ communication model & review by


K.C. Williams
 Analysis of Buyer seller Dyad: The social relations model by John J Cronin

 Interactive vulnerability in buyer seller relationship: A dyadic approach by Gorang


Swensson
Seven classes of buyer seller relationships: A framework of analyzing gaps by Seppo
Leminen.

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