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Selling & Negotiation Short Notes (5 marks each) SPIN Selling Neil Rackham, in this classic book shows

how classic sales techniques such as closing and objection-handling can actually reduce your chance of selling, especially in big business-tobusiness sales situations, where buyers are savvy to the classic tricks. Overall, the method, like many other approaches, is a 'hurt and rescue' approach. You find their problem and 'hurt' them by exposing the terrible things that might happen (spot the use of tension). Then you rescue them with your product. The four question types are described below. There's much more detail in the original book, with even more practical detail in the SPIN Selling Field book. Consultative Selling. Consultative Selling is a selling technique that emphasizes the dialogue between the salesperson and the customer. Before talking product and/or service, the salesperson strives to learn about the customer's needs, and may even help the customer identify and phrase these needs. Then, instead of delivering a standard sales pitch about a product or service, the salesperson can sell a tailored solution that meets the customer's needs, using the customer's language. There are three primary differentiators that mark a Consultative Salesperson:

They ask more questions. They provide customized (as opposed to generic) solutions. Their calls are more interactive.

The customer's needs are identified by the Consultative Salesperson through a combination of preparation and interactive probing. Sales resistance Reasoned (objective) or emotional (subjective) opposition to a buying proposition. Skilled salespeople try to overcome sales resistance by probing and understanding the prospect's stated and hidden concerns through careful questioning and listening, and by showing how their offer fits his or her needs. Sales resistance is the customer's normal way of weighing a product's value. In most cases the customer is asking, "Is the benefit I will receive from owning this product really worth sacrificing the money I spent X hours earning?" Not only are the customers paying with dollars, they are also relinquishing all opportunity to have any of the other items they could have purchased alternatively with the same amount of money. Most objections customers raise about purchasing a product are really disguised questions about some aspect of the product the salesperson has not emphasized. Some objections are excuses the

customer offers when they don't want to get involved with a salesperson. Excuses usually are raised to prevent the salesperson from properly showing the merchandise, to avoid feeling obligated to the salesperson or to put off the decision to buy. Excuses can be expressed early in the sales process or after all the selling points have been made and may be indications of a customer's hidden objections. Objections are the opposite of excuses. They represent honest points of difference between the customer and the salesperson and an interest on the customer's part to learn more about the merchandise. Because objections indicate a desire to justify a purchase, consider them an aid to selling. Tune into the following situations which lead to objections:

Customer wasn't listening when the salesperson covered a point. Customer is unfamiliar with the product but does not want to admit it. Customer does not believe the salesperson. Customer can't afford the price but won't say so. Customer never intended to buy and was shopping for information.

Answer objections with questions designed to pinpoint the cause of the customer's objections. Remember, sometimes objections are really the customer's way of seeking reassurance that they are making the correct choice before they part with their money. SMCG or service selling Almost all service-oriented businesses share certain things in common that make them different than companies that mainly produce products, and these affect your marketing approach. Services are typically tailored to the particular customer. You can't mass produce services as easily as you can physical products. An audit report for the Frogs R Us amphibian retailer can't be used for any other company. So the effort the service provider puts into developing the end product can't easily be used to spin off other similar products. This affects the marketing of the service. Most services are personally linked. CUSTOMERS who buy services typically buy the skills, competence and attention of a particular person. If that person leaves one company and goes to another, his or her customers will often follow--because their loyalty is to the individual, not the company. This happens in brokerage houses, hair salons and upscale restaurants all the time. Service businesses are difficult to sell because they're typically owner-dependent, with little in the way of capital equipment Most services are also time-intensive. In addition to expertise, what service providers mostly sell is time, and they typically bill using an hourly rate (as opposed to the per widget or per chicken-serving rate). You often make appointments to get your services rendered. For a service provider, time is literally money: If an hour passes unbilled, it's lost income, never to be recouped. Unique Circumstances If your business is primarily a service provider, you have to approach marketing with some special sensitivities:

(All questions carry 10 marks) Print ad (topic on the spot) Fresh MBA goes to market research or other activity but not in sales you think some field sales experience is must, you agree (comment)? Name 3 sale training tools & discuss them. (Find solution and mail me also) Negotiation is art or science? Is selling an art or science? In a survey of 173 marketing executives, 46% perceived selling as an art 8%as science 46% as an art evolving into a science Selling is an art and creative in nature. Salespeople in the organizations are known as the base and pillars of the company. Without their efforts a company can't develop their marketing mix .As selling is not an easy task so salespeople have to put a lot of efforts before moving in fields. The selling skills are important and required by every salesman to be successful. A salesman should have the knowledge of * Basic concepts of marketing * Marketing vs Selling * Proper Prospecting * Clients needs and requirements * Companies products and services * Competitors strategies * Buyer's Behavior * Analyzing Clients interest * Convincing the Clients to purchase * Motivating the buyers * Effective closing * Handling of buyer's complaints efficiently As more and more companies implement new sales technology solutions into their sales organization, it is evident that there is more science in selling than ever before. With every step forward that we take with new technology, we need to examine our progress in the art of selling. Name all 3 method of sales competition & discuss all 3. Sales forecasting is especially difficult when you dont have any previous sales history to guide you, as is the case when youre working on preparing cash flow projections as part of writing a business plan. Here, Terry Elliott provides a detailed explanation of how to do sales forecasting. Ed. There are all sorts of ways to estimate sales revenues for the purposes of sales forecasting.

One point to remember when sales forecasting is that if you plan to work with a bank for financing, you will want to do multiple estimates so as to have more confidence in the sales forecast. How do you do this? Sales Forecasting Method #1 For your type of business, what is the average sales volume per square foot for similar stores in similar locations and similar size? This isn't the final answer for adequate sales forecasting, since a new business won't hit that target for perhaps a year. But this approach is far more scientific than a general 2 percent figure based on household incomes. Sales Forecasting Method #2 For your specific location, how many households needing your goods live within say, one mile? How much will they spend on these items annually, and what percentage of their spending will you get, compared to competitors? Do the same for within five miles (with lower sales forecast figures). (Use distances that make sense for your location.) Sales Forecasting Method #3 If you offer say, three types of goods plus two types of extra cost services, estimate sales revenues for each of the five product/service lines. Make an estimate of where you think you'll be in six months (such as "we should be selling five of these items a day, plus three of these, plus two of these.") and calculate the gross sales per day. Then multiply by 30 for the month. Now scale proportionately from month one to month six; that is, build up from no sales (or few sales) to your six month sales level. Now carry it out from months six through 12 for a complete annual sales forecast. Dont Just Do One Sales Forecast Instead of forecasting annual sales as a single figure, use one or two of the sales forecasting methods above and generate three figures: pessimistic, optimistic, and realistic. Then put the figures in by month, as depending on your business, there could be HUGE variations by month. (Some retail firms do 50 percent of their gross sales around Christmas, from the end of October to the end of December, for example, yet barely get by June through August.) Include Expenses in Your Sales Forecasting Now put in your expenses by month, including big purchases by season (or however you buy materials/goods). Remember, you may buy materials or inventory in say, July, for Christmas, yet not get all of your receipts until 45 days after Christmas. There can be big cash flow implications. Also, will you be buying vehicles? Capital equipment? Make sure to show depreciation expense. In your expenses, put in an allowance for bad debts. Figure how much of your sales are by cash, how much by credit card, how much by your extending credit. Deduct say four percent or more for credit card expense for that portion sold by credit card. For payroll expenses, put in estimated tax withholding payments quarterly that must be paid to the government.

If you're going to a bank for financing, be able to answer questions such as, have you made an allowance for a reserve cash account, for your slow months, but also in case you have to quickly replace a vehicle or equipment? You say you'll charge x dollars for your product, but what happens when your competition cuts the price by 33 percent and still makes a profit? How specifically will you grow your business-- selling more to existing customers, selling existing products to new customers, selling new products to existing customers, and selling new products in order to attract new customers? They're going to want to see if you've got a real plan. Remember that it is acceptable (and realistic) to have a negative cash flow projection for the early months of your cash flow projection period. Sales Forecasting Summary I guess you can see that instead of estimating one big sales figure for the year when sales forecasting, a more realistic monthly schedule of income and expenses gives you far more information on which to base decisions. That's what "keeping the books" is designed to do: give YOU information you can make good decisions on. So in effect, you prepare three cash flow projections, where you vary the percentage of sales or other figures to arrive at three different scenarios: pessimistic, optimistic, and realistic. The pessimistic view should be the "worst case" situation; plan to have enough capital and patience to get through that scenario. If it turns out that the actual results are better than that - great! Name 3 sale training tools & discuss them. Sales Motivation, Assessments, Communication Skills, Sales Trainers, Effective Proposals, Sales Management, Prospecting, Team Development, Selling Skills Sales Coaching, Trade Show Selling, Negotiation Skills,

Changing a Sales Culture, Sales Training Resources, Needs Assessment, Closing Techniques,

Selecting Top Salespeople, Group Presentation Skills

Selecting Top Salespeople, Selecting Top Salespeople Working with Gatekeepers Listening Skills Telesales

Planning for Sales Calls Keynote and Sales Speakers Overcoming

Time and Territory Management Building Rapport Objections Sales Planning Sales Coaching Cold Calling

Sales Training Programs

Consultative Selling

Sales Resources and Tools

Sales Skills Coach Individual, one-on-one sales coaching to give you that competitive edge Major focus: Use Personal Behavioral Styles (DISC) to self-assess, read others, and adapt to their communication and motivational needs Apply value propositions: benefit to gain or a loss to avoid Use conversation and questioning skills to identify what is of value to them Dollarize the value Apply business relationship negotiating skills to satisfy everyone's needs Telesales Understand a range of techniques that can be applied in Telesales Use these techniques to build an effective Telesales process capable of delivering real results Explain the benefits of having an effective Telesales process that is implemented and supported by the organization CLOSING TECHNIQUES Closing is a sales term which refers to the process of making a sale. The sales sense springs from real estate, where closing is the final step of a transaction. In sales, it is used more generally to mean achievement of the desired outcome, which may be an exchange of money or acquiring a signature. Salespeople are often taught to think of targets not as strangers, but rather as prospective customers who already want or need what is being sold. Such prospects need only be "closed." "Closing" is distinguished from ordinary practices such as explaining a product's benefits or justifying an expense. It is reserved for more artful means of persuasion, which some compare with confidence tricks. For example, a salesman might mention that his product is popular with a person's neighbors, knowing that people tend to follow perceived trends. This is known as the Jones Theory. Name 4 selling theory & discuss any two. Selling theories1)AIDASattention, interest, desire, action, satisfaction Attention-can be grabbed by favorable first impressions like proper attire, neatness, friendliness and genuine smile

Opening remarks be about the prospect or favorable comments about prospects business How to create interest? Develop a contagious enthusiasm for the product or a sample Use flipcharts, sales portfolios or other visual aids in case of technical or bulky products Find out basic motivation of prospects, their mood (receptive, skeptical, and hostile) Kindling desire By keeping the conversation running on the main course\ Obstacles must be faced and ways found to get around them Objections be answered, before they are raised External interruptions cause break. After resuming, summaries what has been said Digressive remarks be disposed off tactfully with finesse (distracting digression be handled bluntly) Inducing action Buying is not automatic and as a rule must be induced The trial close, close on a minor point and the trick close are used to test the prospects reactions Ask for the order straightforwardly Building satisfaction By thanking the customer for the order Reassure the customer that the decision was correct Customer should be left with the impression that the sales person merely helped in deciding The order is the climax of the selling situation-possibility of anticlimax be avoided Sales person should not linger too long 2)Right set of circumstances theorySituation response theory Particular circumstances prevailing in a given selling situation cause the prospect to respond in a predictable way

More skilled the salesperson is in handling the set of circumstances, the more predictable is the response 3) Buying formula1) If the prospect does not feel a need or recognize a problem that can be satisfied by the product or service, the need or problem should be emphasized 2) If the prospect does not think of the product or service when he or she feels the need or recognizes the problem, the association between need or problem and product or service should be emphasized 3) If the prospect does not think of the trade name when he or she thinks of the product or service, the associations between product or service and trade name should be emphasized 4) If need or problem, product or service, and trade name are well associated, emphasis should be put upon facilitating purchase and use 5) If competition is felt, emphasis should be put upon establishing in the prospects minds the adequacy of the trade-named product or service, and pleasant feelings toward it 6) If sales to new prospects are desired, every element in the formula should be presented 7) If more sales to old customers are desired, the latter should be reminded (developing new uses is comparable to selling to new customers)

4) Behavioral equation theoryIs based on stimulus-response model Sophisticated version of the right set of circumstances theory 4 elements of the learning process-drives, cue, response and reinforcement Equation B=PXDXKXV where, B=response or the internal response tendency, i.e. the act of purchasing a brand or patronizing a supplier P=predisposition or the inward response D=present drive level (amount of motivation) K=inventive potential' that is, the value of the product or its potential satisfaction to the buyer V=intensity of all cues: triggering, product, or informational

Summary of J A Howard theory When the satisfaction (K) yields a reward, reinforcement occurs, and, technically, what is reinforced is the tendency to make a response in the future to the cue that immediately preceded the rewarded response. After reinforcement, the probability increases that the buyer will buy the product (or patronize the supplier) the next time the cue appears-buyer has learned Differentiate integrative v/s distributive negotiation. INTEGRATIVE VS DISTRIBUTIVE NEGOTIATION Negotiations come in two forms- distributive outcomes and integrative arguments. Distributive outcomes, also called, "win-lose" bargaining, is a competitive negotiation strategy that is used to decide how to distribute a fixed resource (i.e. money) between two negotiators so that the more one gets, the less the other gets. In distributive bargaining, each party tries to secure the most benefit for themselves, without regard for the other side's outcome (Roy J.L, David M.S, and John W. M, 1999). For example, when negotiating for a used car the buyer either gets that extra $2,500 or the dealership does. If the buyer feels that he got a good deal, he "won." If he walks away feeling like he paid too much money for that car, he "lost." In contrast, Integrative bargaining is a negotiation strategy in which all parties collaborate to find a "win-win" solution to their dispute so that all parties achieve maximum mutual gains (Roy J.L, David M.S, and John W. M, 1999). Integrative bargaining is important because it produces more satisfactory outcomes for the parties involved than does Distributive bargaining. Say, a Trade Union is negotiating with the Employers demanding an increase in 2.5% of wages every year with bonus on every Christmas or they would go for Strike. The Employers proposed that the wages can be increased with 1.5% but on every two years and bonus will be given if the workers increase their working hours by 2 hours per day. Therefore, the proposition is profitable by both parties. Workers can get good wages and bonus by only giving an extra two hours. The Companys work operation will be increased that can lead to increase in sales, and hence increase in profit. Therefore, with Integrative bargaining, both the parties won! ROLE OF TECHNOLOGY IN TODAYS CUTTING EDGE ENVIRONMENT Customer relationship management (CRM), sales force automation (SFA), enterprise resource planning (ERP), web portals, real-time communication, web sites, collaboration, presence, email, voice mail, unified messaging, mobile web, fax servers, wiki's, instant messaging (IM), personal data assistants (PDAs), tablets, projectors, Blackberries. When thinking about sales technology as an enabler, it is helpful to categorize technology differently to avoid pitfalls. Rather than categorizing sales technology in typical ways such as software, hardware, infrastructure, etc., instead categorize technology more holistically to align with the sales functions and the IT organization's ability to support it. A holistic look at sales technology is divided into four categories: Customer and partner facing technologies are your front line tools that facilitate communication and collaboration. These technologies are used to enable messaging to your customers and

partners about who you are and what you offer as an organization. They also help you to collaborate with your customers real-time. These tools sell for you 24 hours a day, from anywhere in the world. As such, information should be readily available and tools should be reliable, but consider that these tools should also capture information about your customer and their preferences. Examples: Portals, websites, collaboration tools, Web meetings, conference solutions, etc. Field sales technologies are the tools that facilitate efficiency and productivity that your front line uses every day to track progress and communicate. Sales people care about productivity and reducing or automating administrative tasks so that they have more time to communicate effectively with the customer. Field sales technologies should be selected to accomplish these tasks. A feature rich CRM program may look like a great reporting tool to executive management, but if it is too complex to use, sales people either wont use it, or it will impact their performance. Examples: PDAs, c ell-phones, laptops and tablets, collaboration tools, CRM, VPN solutions, productivity e-mail software. Corporate facing technologies facilitate bilateral communication by interfacing your sales organization with the rest of the company. They are the touch points between sales functions and operations functions and are usually the least friendly to the individual contributor and typically shoulder most of the blame for productivity distraction. Human middleware is usually most apparent in corporate facing technologies because often, the solutions either isnt fully deployed aren't fully integrated or have been mis-configured. When these tools aren't fully integrated or are incorrectly deployed, efficiencies are lost and productivity does indeed suffer. Examples: CRM, SFA, ERP, internal portals for training, announcements, etc. Marketing technologies link marketing to Sales, facilitate front end pipeline activity, assist to create demand and ideally, pass that information seamlessly into the sales organization. Field marketing typically shares many tools with the sales organization, but typically at the front end or the back end of the transaction. An example is marketing's use of CRM. Marketing may load trade show leads or call campaign leads into CRM for the sales team follow up. Then, after a sale is closed, marketing may go back with a customer satisfaction program. There are many other types of technologies, tools and strategies to create demand, but most importantly marketing technologies should facilitate collaboration and alignment with the Sales organization, and that collaboration process should be formalized, structured and encapsulated in the systems that they share. Examples: CRM, mail-merge, search optimization, targeted web advertising, war-dialing. Discuss steps in prospecting? (Solution on pg no 67 & 68 of hard copy given- check yourself also) PROSPECTING Is the planning work which is essential in eliminating calls on non buyers Steps in prospecting 1)formulating prospect definitions 2)searching out potential accounts 3)qualifying prospects and determining probable requirements 4)relating company products to each prospects requirements Prospecting refers to identifying and developing a list of potential clients. Sales people can seek the names of prospects from a variety of sources including trade shows, commercially available

databases or mail lists, company sales records and in-house databases, website registrations, public records, referrals, directories and a wide variety of other sources. Prospecting activities should be structured so that they identify only potential clients who fit the profile and are able, willing and authorized to buy the product or service. This activity is greatly enhanced today using websites with specially-coded pages optimized with key words so that prospects may easily find you when they search the web for certain key words related to your offering. Once prospecting is underway, it then is up to the sales professional to qualify those prospects to further identify likely customers and screen out poor leads. Modern websites can go a long way in not only identifying potential prospects but also starting this qualification process.

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