D.

Sales skills
 No matter how good your products or services are, their success depends on your ability to
sell them.

 Your business will grow or fail based on:

- the success of your products and services, and
- how well you persuade your customers to buy them.

 Anyone can learn sales skills.

 Regardless of what you are selling, you and your sales team can achieve great product sales
by mastering a set of proven selling skills that focus on:
- confidence
- relationship-building
- listening
- persuasion
- product knowledge.
 This presentation explains how these core skills can help you perfect the sales process,
including:
- building trust,
- identifying your customers' needs,
- selecting and presenting products for your customers,
- handling questions and objections, and
- closing sales.
I. Creating good first impressions
 Making a strong first impression will help you:
- develop customer relationships and
- make sales.

 From the moment you approach a customer, your:

- behavior,
- attitude and
- personal presentation
will influence your customer's decision to buy.
Meeting & greeting
 Your customer will make early decisions about you and how much time they'll give you based
on:
- your appearance,
- your body language and mannerisms,
- your tone of voice and facial expressions,
- your words, and
- your demeanor (=comportement).

 Here are some useful first-impression tips:

- Make eye contact.
- Give a nice, warm smile.
- Open with a sincere, friendly greeting.
- Pay attention to the customer - not to the product, your stock or a colleague.
- Greet the customer and ask a useful opening question.
Ex: 'Good afternoon. Can I help you find our sale items?'
- Never ignore the customer.
- Show the customer that they have your willing, undivided attention.
Personal presentation
 Your appearance shows your customer that you respect:
- them,
- your business and
- your products and services.

 Here are some useful personal presentation tips:

- Be sure your posture is straight, confident and relaxed.
- Don't distract your customer:
- with personal fidgeting and adjustments or
- by handling stock while you're talking to them.
- Dress to impress:
- take care over your choice of dress, and
- tailor your wardrobe, and make-up, to appeal to your customer base.
- Make sure your hair and nails are well-groomed (=soignés).
Positive attitude
 There are many things affecting your business that you can't control.

 Your personal attitude is something you can control.

 Your attitude affects the way you approach people and events in business.

 Choosing to approach potential customers:

- positively,
- confidently,
- enthusiastically and
- with a helpful attitude — even when you're tired, stressed or frustrated
will improve your sales performance and grow your sales.

 Remember that every business exists to meet customers’ needs.

 If you believe your job is to:

- understand and
- solve the customer’s problems,
then you will exude (=dégagerez) a natural, helpful confidence.

 Also create effective retail displays*** to give a positive first impression of your business.
II. Verbal communication skills for selling
 Your communication skills determine your chances of a sale:
- from your opening pitch
- to your closing statements.

 Developing your:
- questioning,
- vocal and
- conversational
skills will help you build on a strong first impression by:
- gaining trust and
- establishing credibility.
Questioning skills
 Asking:
- appropriate,
- purposeful questions
can help you:
- identify whether your customer is likely to buy your products,
- and move them through the selling process.

 There are several types of questions that can help you in the sales process.

 Closed questions
Closed questions require a simple 'yes' or 'no' answer.
Ex: 'Are you looking for a television today?'
Closed questions are used to:
- find out facts
- limit or guide discussion
- gather basic information from the customer that you can use to generate an open
question.
 Open questions
Open questions require a customer to explain or elaborate.
Ex: 'What type of product are you looking for?'
Open questions are used to:
- gather specific information so you can determine your customer's wants and needs
- build relationships with customers so that they are comfortable dealing with you.

 Probing questions
Probing questions are about a specific topic to uncover more information.
Ex: 'What type of television do you think would fit best on your wall?'
Probing questions are used to:
- obtain more specific information in order to fully understand your customer's needs
- uncover and clarify your customer's perceptions and opinions.
 Confirming questions
Confirming questions are designed to check that your customer understands what you've
said.
Ex: 'Which of these features would benefit you most?'
Confirming questions are used to check that you've successfully communicated information
to your customer.

 Summary confirmation questions

Summary confirmation questions are designed to check that you understand what your
customer has told you.
Ex: 'Are you saying you'd prefer to order the next model in our range?'
Summary confirmation questions are used to:
- check that you understand your customer's needs
- check that the benefits you've outlined meet their needs.
Conversational skills
 Good salespeople:
- look for a way to make a connection with their customer, and
- build a conversation based on trust and understanding.

 Conversation skills include:

 asking non-confronting questions to show you genuinely care about your customer's needs
 talking knowledgeably about your product or service
 displaying interest and warmth
 avoiding bias or stereotyping
 adjusting to your customer's verbal style
 telling the truth
 offering observations that show you understand
 accepting and acknowledging your customer's opinions
 refraining from interrupting or correcting unnecessarily
 watching for and responding to signs of discomfort or boredom
 being diplomatic
 making small talk (=papotage) — when it's called for and to an appropriate degree.
Vocal skills
 Good communicators know :
- that what they say is often less important
- than the way they say it.

 Use your voice to make an impact by:

 adjusting your pitch to suit the conversation

 adjusting your volume to:

- ensure clarity, and
- suit your customer's comfort and hearing needs

 speaking in a steady tone of voice to show:

- calm and
- confidence

 slowing the speed of your speech so it is:

- calm and
- clear
 varying the inflection in your voice to suit your message to show:
- enthusiasm,
- common sense,
- interest, and
- gravity

 enunciating your words clearly

 varying the:
- quality and
- intensity
of your voice to hold interest

 conveying meaning using the sound of your voice to reinforce your messages.
III. Non-verbal communication skills for selling
 When selling to customers, your non-verbal communication skills, such as:
- active listening and
- interpreting non-verbal cues (=indices)
are just as important as what you say.

 Developing these skills:

- will help you understand what your customers want,
- so you can offer them the most suitable products and services.
Listening skills
 Listening to your customer to discover their needs helps you suggest appropriate products or
services to meet those needs.
 Active listening is the process of:
- confirming what you think your customer has said, and meant,
- by observing their verbal and non-verbal cues.
 To be a good active listener you should:
- focus your full attention on your customer
- briefly summarize your understanding of what your customer has said
- take notes if necessary
- use appropriate non-verbal cues such as:
- nodding (=hochant) your head,
- inclining your body forward and
- maintaining eye contact
- note your customer's non-verbal cues, are they: - eager (=avide),
- reluctant (=réticent),
- impatient?
- use appropriate, well-timed probing questions & summary confirmation questions.
Understanding non-verbal cues
 Interpreting your customer's:
- non-verbal signals and
- behaviors
allows you to:
- read their attitude and
- better understand their needs.

 Projecting the right non-verbal cues yourself can help your customer feel at ease.

Here are some positive and negative examples of non-verbal cues:

 Facial expressions
bad: wrinkling (=plisser) the nose, furrowing (=froncer) the brow or rolling the eyes
good: smiling, raised eyebrows, relaxed mouth

 Eye contact
bad: avoiding your customer or looking outside your sales space
good: looking back to your customer's face and at your products
 Smile
bad: closed, firm or expressionless mouth
good: smiling or relaxed mouth

 Hands
bad: hands folded to the chest or near the face
good: hands moving freely, relaxed, touching the product

 Gestures
bad: closed arms, dismissive hand gestures
good: open arms, nodding the head

 Posture
bad: slouching, shoulders turned away
good: standing upright, inclining the body forward

 Position
bad: moving too close, facing away
good: observing personal space accommodating cultural differences.
IV. Building customer relationships when selling
 Good businesses thrive on their sales team's ability to:
- interpret customer:
- needs and
- behavior and
- build strong relationships.

Customer service
 Customer service skills can help you:
- keep existing customers and
- gain new ones.

 Do also review the lesson S2 about improving customer service***.

Building rapport
 Getting your customers to like and trust you is essential to making sales.

 Building a rapport — making a connection with your customer — is one of the most effective
ways to build trust.

 Building a rapport means making an effort to put yourself in someone else's shoes.

 When you put yourself in your customer's shoes, you can then:
- interpret and
- think about what your customer expects from you and
- tailor your approach to moving through the selling steps in a way that meets those
expectations.
Effective negotiation skills
 Negotiating skills are a powerful tool for salespeople, involving:
- analysis,
- problem-solving,
- personal influence and
- persuasion.

 You can also navigate the sales process effectively with the help of good negotiation skills as:
- proposing appropriate offers
- checking you understand your customer's comments
- paraphrasing your customer's objections
- considering and acknowledging your customer's views
- suggesting alternatives
- looking for closing signals
- making closing statements
- getting agreements quickly
- following up on promises.

 Also learn the lesson on negotiating successfully*** below.

V. Knowing your products and services
 Product knowledge is an essential sales skill.

 Understanding your products' features allows you to present their benefits:

- accurately and
- persuasively.

 Customers respond to enthusiastic sales staff who are:

- passionate about their products and
- eager to share the benefits with them.
Get to know your products or services
 Customers are more likely to trust sales people who show confidence in:
- themselves and
- what they are selling.

 You can build this confidence by increasing your knowledge of your products or services.

 Use conventional and creative sources of information to learn about your products or
services, including:
- your own experiences using the products
- product literature such as brochures and catalogues
- online forums
- feedback from customers
- trade and industry publications
- internal sales records
- your team members
- visits to manufacturers
- sales training programs
- competitor information.
Be honest about shortcomings
 If your product or service has some shortcomings (=défaut, limitation) in certain situations,
be honest about them with your customers.
 Let them know early on:
- if you don’t think your product or service is right for them
- and they will be more inclined to trust you when they need something in the future.

Turn product features into benefits

 As you engage customers, you can use your knowledge to:
- lead your customer through the sales process, and
- make their experience an enjoyable one that they'll want to revisit.
 Successful salespeople:
- know all of their products' features and
- skillfully turn these features into benefits for their customers.
 To practice this skill, list your:
- product's features,
- potential benefits, and
- all information up front for your customers. (See example)
 PRODUCT FEATURES
Its purpose
How it works
How it is developed or
manufactured
How it is checked for quality
How it is delivered
How it is maintained and
serviced
How long it is likely to last
(including any warranties)
Its price
How it compares to similar
products the business offers
How it compares to
competitors' products
Its strengths and limitations
(the capability of the product
to deliver benefits to clients)
Other products that might
complement it
POSSIBLE BENEFITS FOR YOUR CUSTOMER
It will meet your needs and save you time and money
It’s easy to use so you won't be frustrated by complicated features
It supports local industry and helps the environment
You can be confident it will work
You don't have to worry about delivery — we organize that for you
You can be assured that if it needs maintenance, we will take care of it
for you
You can be confident that if it has any problems we will fix it or replace
it while under warranty
You can comfortably afford it
You can base your decision on the good reputation our business has
earned for selling other well-regarded products
You are receiving quality and value for money
You are buying a product that is well-matched to your particular needs
Buying this companion product will allow you to meet the needs of
your entire household
*** Creating effective retail displays
 Retail displays (=présentoirs de vente au détail) are a strategic aspect of your business that
can help: - attract customers,
- retain their interest, and
- increase sales.
 Visual merchandising helps to set you apart from your competition by creating a look and
feel that is unique to your business.
 Effective retail displays attract potential customers to your store.
 When you're designing displays, choose engaging colors, décor and stock arrangements.
 Good displays appeal to both the head and the heart of your customers.
 Once you've attracted potential customers, you can arrange your stock to keep them in your
store and direct them towards specific products.
 Improve your chances of making a sale by:
- doing your research to see what works in other retail spaces, and
- keeping an eye on how customer traffic flows through your own store.
 This presentation outlines how to display and arrange your stock in a way that commands
your customers' attention.
Principles of visual merchandising
 Visual merchandising is about presenting your retail space in a way that maximizes your
sales.
 Strategically presenting your products in your retail space helps you to create a unique
identity for your business.
 You can set yourself apart from your competition by making your retail space warm, friendly
and approachable.
 Retail displays can help your business to achieve sales because these visual elements make a
good first impression on your potential customers.
 Retail displays are an element of your branding.
 If customers like the way your store looks and your products are made to look appealing
through:
- window,
- shelf and
- stock displays,
they are likely to spend more time and money at your business.
 Also learn the lesson on retail design & shop-fitting*** below.
Window displays
 Create themes for window displays that reflect your store's style and personality.
 Use your window display to make a statement about your business.
For example:
To say you are elegant, sophisticated, edgy (=futuriste) or contemporary.

 You should:
- be topical and seasonal
- use props, images, signage and products to convey an idea and message that will
help your customers connect with your products
- change your window displays regularly – make sure products in your display are
easy to find inside the store but not necessarily at the front, where your customers
will need to look no further
- when you change your window display theme, remember to change your store's
interior theme to match.
Shelf displays
 Plan:
- how you will use your shelf displays to feature your products, and
- how much shelf space each product will get.

 You should:
- be careful not to clutter your products
- place a striking or appealing product in plain view of your entrance
- capitalize on spaces at the end of shelves
- place your popular or targeted products between eye level and knee level
- place your most profitable items at eye level
- place products for children at children's eye levels.
Stock displays
 Group related stock items together, and use your premium spaces – for example, the ends of
your aisles – to feature profitable products.
 You should:
- group similar products together to encourage add-on sales – for example, place
crockery with cutlery
- group different but related products together to help make companion sales – for
example, include all components of a bathroom in a bathroom display
- change your product displays regularly and keep them clean and well ordered
- feature a few product items, including product blurb and flyers, at your point-of-
sale space.

Hire a visual merchandiser

 To create effective designs for your store, you can get help from:
- professional retail designers,
- visual merchandisers,
- window dressers and
- store planners
Improving customer traffic flow
 An effective store layout:
- directs your customers to where you want them to go,
- generates interest and
- can potentially create additional sales.

 Successful store designs use:

- layouts and
- floor plans
that encourage customers to:
- walk past a high volume of products,
- keep browsing and
- buy your products.

 Take some time to:

- study different store layouts and
- analyze the way people move through:
- your retail spaces and
- those of other businesses.
Study customer traffic flow
 Studying your customers' traffic flow will help you know where to place certain items to
ensure your customers move through your whole store.

 Do:
- draw a map of your store and
- mark the way customers walk around it:
- Is there a common pattern to the way they walk through your shop?
- Are there any areas that customers rarely go to?
- Are there spaces that customers leave quickly?
- Which areas do most customers go to?
- Where are customers gazing and how much are they looking around?
Direct traffic to your products
 Your customers will pay more attention to your products if you place them in a way that
helps browsers discover what they want.

Here are the best ways to showcase your products:

 Place high-profit items in high traffic areas and demand items in low-traffic areas.

 Don't place feature products (=produits vedettes) or important promotional material right
inside the entrance to your store.
Customers need a 'decompression zone' to adjust to the environment of your store and are
less likely to notice detailed information in this area.
 Know your 'strike zone' – it's the space you use to make first product impressions on your
customers. Place widely appealing, affordable products here so customers don't get turned
off by high prices.

 Place impulse items – that is, the low-cost, repeat-purchase items – around the counter and
in high-traffic areas.

 Place your high-demand products at the back to draw customers through the store.
(See below about some types of Pricing Strategies >>>)
Direct traffic throughout your store
 Retail designers use clever store design principles to help draw customers and increase traffic
through the store.

 Here are some of the main store design principles:

- Place your sales counter so it is not the first thing customers see. The cash register
reminds them they're spending money, and forces your customers to engage with
your sales staff before they've decided they're comfortable in your store.
- Use lighting and layouts that ensure your customers can always easily see the way
through and way out of your store. Customers who feel trapped or lost in your
store will leave quickly.
- Create aisle space that is narrow enough to slow customers down to look, but wide
enough to be comfortable, clear and safe. Excessively wide aisles encourage
customers to rush without browsing.
- Consider access for customers with disabilities and special needs. For example,
aisles should be uncluttered and wide enough to allow wheelchairs and prams.
>>> Pricing Strategies
 Good pricing strategies help in determining the price point at which one can maximize profits
on the sale of its goods or services.

 While setting prices, one needs to consider various factors like:

- demand and supply of goods or services in the market,
- selling and distribution cost,
- offerings of competitors in the market,
- target customers, etc.

Types of Pricing Strategies

1. Cost-plus Pricing
It is the simplest pricing method: the firm calculates the cost of producing the good and adds
on a percentage (profit) to that price to give the selling price.

2. Limit Pricing
A limit price is a price set by a monopolist to discourage economic entry into a market.
The limit price is often lower than the average cost of production.
3. Penetration Pricing
Setting the price lower than what it is offered by other competitors in order to attract
customers and gain market share.
The price can be raised later once this market share is gained.
4. Price Discrimination
Price discrimination is setting a different price for the same product in different segments to
the market.
Ex: This can be for different classes of buyers, such as ages, or for different opening times.
5. Psychological Pricing
In this pricing designed to have a positive psychological impact on the customers.
Ex: Selling goods on profit at $4.95 or $4.99, rather than $5.00.
6. Dynamic Pricing
A flexible pricing mechanism made possible by advances in information technology and this
strategy is mostly employed by internet-based companies.
7. Price Leadership
In oligopolistic* business market usually, the dominant competitor among several leads the
way in determining prices, and the others soon follow.
8. Target Pricing
Target pricing is a pricing method whereby the selling price of a product is calculated to produce
a particular rate of return on investment for a specific volume of production.
Companies with high capital investment and public utilities like gas and electrical companies use
this strategy.

9. Absorption Pricing
It is a method of pricing which recovers all costs.
The price of the goods or services includes the variable cost of each item plus a proportionate
amount of the fixed costs and is a form of cost-plus pricing.

10. High-low Pricing

High-Low pricing is a method of pricing where the goods or services offered by the organization
are regularly priced higher than competitors, but through promotions, advertisements, and
coupons, lower prices are offered on key items.

11. Marginal Cost Pricing

This pricing method is a practice of setting the price of products and goods to be equal to the
additional cost of producing an extra unit of output.
Examples of Pricing Strategies
 Selling goods for $999, rather than $1000 is psychological pricing.

 Selling goods at price $45 than what its competitors are offering $50 or $55 in the market.
This pricing strategy is penetration pricing which increases market share.

 A produces a good and cost of producing such good is $100. It then adds 20% to the cost of
goods (100 + 20% = 120) and sells the good in the market at $120. This is cost-plus pricing.

 Suppose, the average cost of producing a good is $80, but the price of good offered in the
market is $75 which is lower than the average cost of the good. This type of pricing is limit
pricing and it discourages competitors entry into the market.

*An oligopoly is a market characterized by a small number of firms who realize they are
interdependent in their pricing and output policies.
The number of firms is small enough to give each firm some market power.
*** Retail design and shop-fitting
 In today's fiercely competitive retail markets, you need an effective store design that:
- attracts new customers and
- keeps them coming back.

 If you are about to start a new retail business, now is the time to consider how your store's
layout, fixtures and signage can:
- build your brand and
- increase your sales.

 Consultant store designers combine creative and business skills to offer:

- interior decoration,
- industrial design and
- graphic design services
to commercial stores.

 However, regardless of your scale and budget, you can use basic retail design principles to
design spaces that will help increase your sales.
 Good retail design:
- attracts customers to your store and
- encourages them to stay longer, see more and buy more.

 The principles and techniques in this presentation can help you design a competitive retail
space.

Shop layout and fixtures

 Your shop's layout and fittings create promotional spaces where you can:
- feature your products and
- engage with your customers.

 Getting your shop design right now will help you:

- attract customers and
- increase product sales in the future.

 The type of products you stock will determine the kind of store design you choose.

 These tips will help you make the most of your layout and your fixtures (such as shelves,
cabinets and lights).
Choosing a shop layout
 Position shelves and racks to optimize your customer traffic flow through the store.

 Popular layout patterns include:

- grids – using the outer walls of the shop to create small proportional display spaces
within the store
- geometrics – combining display racks and fixtures at irregular angles to keep
customers surprised and engaged
- diagonals – using diagonal lanes and display walls to encourage traffic flow
throughout the store and improve cashier and customer visibility
- angles – using angles in store fixtures and walls to improve traffic flow and create a
high-end retail space.

 Choose a layout your budget can support, considering :

- your target market and
- the type of stock you display.
 For example:
- prioritize functionality and easy customer movement if you display consumable
products such as groceries or convenience items
- increase visual impact and browsing customer movement if you display high-end
products such as jewelry or gifts
- use displays as storage (e.g. pallets of products on the shop floor rather than in the
stock room) and cater for easy customer movement if you display hardware items.

Using appropriate fixtures & lighting

 Choose fixtures to suit the products you sell.

 For example, you might choose:

- glass shelving to profile high-end products
- wooden shelving to present traditional, 'cottage' products
- plastic or metal shelving to profile utility products.

 Use fixtures and lighting to increase the appeal of your products.

For example:
- Use 'focusing' fixtures such as spotlights and glass-front display cabinets to
highlight premium products (=products that cost 20% more than the average
category price).
- Erect shelves at equal but well-spaced heights to create a symmetrical, orderly
arrangement your customer can easily follow.
- Make sure your fixtures are suited to your target market
For example:
If you sell products for children, design displays at children's eye levels.
Considering functional requirements
 Make sure your store design considers the functional requirements of your business and
customers.

 For example:
- keep your shop space clean, ordered and well organized – don't clutter your fixtures or
crowd your products
- change your fixtures regularly and rotate your stock – rearranging your store regularly
helps you keep your store clean, organized and fresh
- ensure you can see your products clearly from the cash register to reduce shoplifting
- prevent slips, trips and falls by considering work health and safety requirements in your
shop layout
- cater for people with disabilities or prams by providing ramps, handrails, lifts, wide
aisles and hearing loops for sound systems.

Store layout software

You can also purchase store layout software to help you plan and manage your store design.
Retail signage
 Retail signage helps:
- build your brand and
- grow your business.

 External signage gives potential customers a sense of whether they should enter your store.

 Internal signage can convince customers to buy your products.

 Signage should be well planned and tell a consistent story about your business and your
product.

 Your retail signage should promote your brand.

 These tips will help you:

- design,
- theme and
- commission
signage that command your customers' attention.
External signage
 Well-designed external signage improves your image and impact.

 Consider investing in expert advice or professionally designed signage.

 You should:
- choose a design, color and theme for your external signage that you will use
consistently throughout your store and marketing material
- keep external signage clear and uncluttered
- not allow external signage to block your customers' view inside your store - your
customers should have a clear view into your store that intrigues or entices them
- seek advice from your local council if you're planning external signage - signage
regulations are local council responsibilities.
Internal signage
 Use your internal signage to convey a message about your store and your products and keep
the look of your internal signage consistent with your external signage.

 You should:
- use directional signage and product markers to help your customers find products
easily. Good signage complements good customer service
- give clear and specific commands on your signage
For example, 'See our specials of the week', 'Find your top 5 favorites here‘
- selectively use product signage to convey a brief, informative and engaging
message for your premium products
For example, 'The Tibetans have used this natural anti-aging remedy for centuries‘
- use your market research to tell customers things you want them to know about
your products - for example, '70% of our customers prefer mineral powder
cosmetics‘
- style your signs consistently throughout your store.
Professional advice on retail design
 To create effective designs for your store, you can get help from:
- professional retail designers,
- visual merchandisers,
- window dressers and
- store planners.

 While commissioning a professional may require a financial outlay now, an effective and
engaging retail design will help you increase sales in the future.

 Intense retail competition requires businesses to design retail spaces that set their stores
apart.

 Effective retail design requires creativity, innovation and commercial savvy - a unique blend
of skills not always at the disposal of retail business owners.

 Tertiary institutions and retail industry trainers offer qualifications in retail design.
*** Communicating effectively for business
 Effective communication is a vital tool for any business owner.
 Your success at getting your point across can be the difference between:
- sealing a deal and
- missing out on a potential opportunity.
 You should be able to clearly:
- explain company policies to customers and clients and
- answer their questions about your products or services.
 It is crucial to communicate effectively in negotiations to ensure you achieve your goals.
 Communication is also important within the business.
 Effective communication can help to foster a good working relationship between you and
your staff, which can in turn improve morale and efficiency.
 This presentation will explain:
- the key aspects of both verbal and non-verbal communication,
- how to listen to and understand others, and
- how to make the best possible first impression on the people you encounter in and
around your business.
Understanding communication
 Success in any conversation is likely to be achieved through both parties:
- listening to and
- understanding each other.

 Practice the following skills in any business situation where you communicate with others.

Key communication skills

 Useful communication skills for building positive interpersonal relationships include:
- active listening
- understanding non-verbal signals
- maintaining eye contact
- assertiveness
- being mindful of people's individual space
- using positive body language
- dealing with different points of view.
 Personal awareness skills that help with communication include:
- understanding the benefits of a positive attitude
- awareness of how others perceive you
- self-confidence
- presentation — dressing appropriately for different occasions.

 It also helps to consider the circumstances surrounding your communications, such as the:
- situational and
- cultural context.
Verbal communication
 Verbal communication:
- can bring great rewards to your organization when carried out successfully,
- but it can also be hazardous to your business when approached the wrong way.
 The words you use are important, but equally important is the way you express them.

Using positive language

 You are more likely to achieve positive outcomes when you use positive, rather than
negative, language.

 Positive language is helpful and encouraging; it:

- suggests alternatives and
- offers solutions to problems.

 It is language that stresses positive actions and consequences.

 For example:
If you are negotiating with a supplier who is not willing to budge on price, your language
should convey the desire for a 'win-win' scenario
(i.e. a situation that both parties can be happy with).
This is likely to make your supplier more willing to negotiate, perhaps on issues other than
price, such as:
- delivery costs or
- payment terms,
than if you also refuse to budge and accuse them of being inflexible.

Using 'I' statements

'I' statements, rather than 'you' statements, often yield better results in verbal exchanges.
For example
'I need more information to make a decision' sounds much better than,
'You need to give me more information before I can make a decision'.
The reason the 'I' statement sounds better is that you are saying what you need rather telling
someone what they should do.
Assertiveness versus aggression
 Assertiveness (often through the use of 'I' statements) is stating what you plan to do.

 Instead of coming across as hostile, you are making a statement about something you feel or
perceive.

 Aggression is completely different and is usually perceived as hostile or unfriendly behavior.

 It often uses the word 'you'.

 People can become unhappy when you tell them what to do.

 Even when talking to employees it is wise to soften language when asking them to perform
tasks, as they are likely to respond better to requests than orders.

 Consistent assertiveness shows others that you're confident and open to suggestion, but
won't be taken advantage of, leading to a mutually acceptable outcome.
Speaking style
 Speaking style means the:
- tone,
- pitch,
- accent,
- volume and
- pace
of your voice.

 The same sentence can be conveyed, and understood, in entirely different ways based on the
way in which it is said.

 People you speak to can be motivated by a positive speaking style, just as they can be put off
by a negative style.

 You should always try to speak with a positive voice — avoid monotone responses, or talking
too quickly or slowly.

 Be as clear as possible, and try to engage the listener, as this is far more likely to promote the
response you are after than if they leave the conversation deflated.
Asking questions
 The more you can find out about a person's:
- needs,
- wants,
- interests and
- situation,
the easier it is to reach win-win outcomes.

 You learn more about people:

- by asking them the right questions and
- by taking the time to listen to their answers.

 People also tend to respond well when they feel their opinion is being sought genuinely by
another person.

 Particularly in a business situation where conversations can have important consequences for
both parties.
Types of questions
 You can use the following types of questions in any business situation:
o open questions — questions which require a person to elaborate or explain, helping to build
rapport and encouraging them to open up. Well-chosen open questions encourage responses
to questions you might not have thought to ask;
For example, 'How has your business changed in the last few years?'

o closed questions — questions which require only a short, specific answer, such as 'yes' or
'no', such as 'Are you happy with the proposal?'
These are good for:
- finding out facts,
- limiting or guiding a discussion in a particular way and
- gathering specific information from which you can generate an open question.

o probing questions — more targeted questions designed to develop a more specific

understanding of the other party's view on a matter.
For example:
'How could I change my offer so that this proposal will be a win-win for both of us?‘
o confirmation questions — used when you need to be sure the other party understands your
message.
For example:
'What benefits do you think this proposal will bring to your organization in the next year?'

o summary confirmation questions — used to clarify your understanding of the other party's
needs.
For example:
'Could I summarize what you've just told me so I can check I've understood you?
You said that you want a computer system that will allow you and your staff to complete their
tasks in half the time, and training for all your staff on using this new system?‘

Using questions in a conversation

 Generally, you will have most success when using a range of question types in a conversation.

 Using open and closed questions together can help you:

- guide a conversation and
- encourage the other party to contribute.
 Using only open questions can result in digression — a conversation straying off course.
 Using only closed questions can make it too easy for the answering party to say just yes or no
Because they only encourage a basic response, closed questions are not good rapport
builders or conversation starters.
 It is therefore important to use both types of questions for maximum success and
engagement.

Question styles to avoid

 Some types of question do not lend themselves well to business situations.

 These include:
- destructive questions — 'So you're saying it's my fault?‘
- leading or manipulative questions — 'You'll have that done by tomorrow, right?‘
- multiple questions at once — 'When will you want it?
'Don't you want it?
'You can't get it anywhere else can you?'

 Asking these kinds of question does nothing for your credibility or your ability to negotiate
efficiently and effectively.
Listening effectively
 It's one thing to ask good questions — it's another to really take on board the answers.

 You can often be distracted by your own:

- thoughts,
- feelings and
- opinions
and so tend to hear what you want to hear or, more usually, what you expect to hear.

 You're often thinking about:

- your next move or
- what you should say next,
or you're trying to second guess where the other party might be leading you.

 To listen effectively you need to:

- suspend these internal thoughts and
- give your full attention to the speaker.

 Only then can you really hear what they're saying.

Active listening
 Active listening means paying attention to the speaker — both to verbal and non-verbal cues.
 For example
If you see them look down or appear uncomfortable in some way while saying:
'That's all I can tell you at the moment'
You might deduce that they are withholding information.
 This type of active listening alerts you:
- to the opportunity for a well constructed open or probing question,
- to gather the missing information.
 If you're not listening actively, it can be easy to miss signs like these.

Paying attention
 It is vital to make sure you don't let your attention wander.
 Important pieces of information can be missed if you are not alert and engaged.
 This can lead to:
- misunderstandings later on, or possibly
- embarrassing situations where you appear to have forgotten something you’ve been told.
 One way to help you concentrate during a business conversation is to ask the speaker
questions.

 Not only:
- will this help you to guide the conversation where you want it to go and at the pace
you want,
- it can also ensure your mind is focused on the subject at hand.

Confirm your understanding

 Active listening should ultimately lead to a complete understanding of what another person
has said.

 You can do this by feeding back to them, i.e., your understanding of what they've said.

 An easy way to do this is to clarify, paraphrase or summarize.

 Examples of summary question in these cases include:

'So what you're saying is...?'
'So what you need from me is...?'
'So in summary what we've agreed is...?'
Non-verbal communication
A huge part of the way we communicate occurs through non-verbal cues in conversations.
This includes:
- your body language,
- the way you look at others during conversations and
- the facial expressions you use.
Body language
 Body language:
- can back up the words you use and how you say those words,
- but can also betray your true feelings if you are uncomfortable in a conversation.

 There are 2 main aspects of body language to consider:

o posture — how you sit or stand during a conversation is important.
Your posture should be open, with your body turned to face the other person whenever
possible.
Leaning forward slightly can convey apparent interest in what they are saying, and that you
are actively listening to them

o gestures — simple gestures such as nodding your head and opening your palms can have a
positive effect on a conversation.
You can move your hands during conversation to convey a sense of animation about a
subject, though be careful not to overdo it.
Maintaining eye contact is very important.
 Negative body language creates a negative impression and tends to impede progress.
 Someone glancing at their watch, playing with their pen and doodling during negotiations
will come across as disinterested or uncooperative.
 This non-verbal communication creates the impression of disinterest and may lead the
negotiation to falter or break down.
 Other negative body language you should avoid includes:
- clenched fists
- folded arms
- rolling eyes
- shrugs and shuffles
- imitation of the other person's actions
- finger pointing.
 You can learn positive body language easily, by watching how other people conduct
themselves during conversations.
 Anything that seems positive is worth copying, while anything that repels you in a
conversation should be avoided.
Eye contact
 Looking people in the eye when talking to them is a good way to let them know you are:
- listening to them and
- interested in what they have to say.

 Eye contact can also convey sincerity and confidence, which is often important in business
situations.

 Not looking the other party in the eye can sometimes make you appear disinterested,
nervous, or even shifty (=sournois).

 If someone begins to have negative views such as these in a business situation it can
sometimes be difficult to reverse them, so you should try to:
- maintain eye contact and
- focus on whoever you are talking with,
whether they are a customer, client or employee.

 Of course, it is important not to stare them out, accidentally or otherwise.

Facial expressions
 Our faces are extremely expressive, and often give our emotions away before we have a
chance to say what we feel.

 It is important to try to keep your facial expressions positive during a business conversation.

 Smiling is very important — a simple, natural smile is known to help the other party relax
during a conversation.

 As explained above, keeping eye contact is also a key to success.

 Avoid negative facial expressions, such as:

- frowning or scowling
- glaring
- blankness
- sneering
- pouting.
Meeting new people and introducing yourself
 Your first impression can be the difference between:
- starting a successful business relationship or
- finishing with a one-off meeting.
 It is easy to make a negative first impression on someone, often w/o knowing you’ve done so.
 It’s much harder to make a positive impression, so you must put some effort into your
introductions.
Making a good first impression
 The way you introduce and present yourself provides people with a first impression of you.
 Most people begin forming an opinion of you within 3 seconds and these judgements can be
difficult to modify.
 When we introduce ourselves to someone, we're saying we're interested in establishing
some sort of ongoing rapport for mutual benefit.
 There are 3 parts to our introductions:
- the handshake (often, but not always)
- introducing yourself
- moving into conversation.
Handshaking
 You are more likely to be remembered by a person whose hand you’ve shaken.

 In traditional culture there are 4 main opportunities for handshaking:

- when introduced to someone and when saying goodbye
- when you run into someone you haven't seen in a long time
- when you enter a meeting and are introduced to participants
- when you reach agreement or commit to a deal.

 These are the most commonly used features of handshaking in Australia:

- stand
- step or lean forward
- make eye contact
- smile
- shake hands — firm but not hard
- greet the other person and repeat their name.
Introducing yourself
 Your introduction should tell people who you are and it should encourage people to engage
with you.
 You need to sell yourself, feel confident while doing so because this will put others at ease.
 When introducing yourself, apart from your name you should consider including:
- your role or title
- your business, trade, or industry
- a brief description of your business
- a 'memory hook' (quick, ear-catching phrase that people are likely to remember)
- a benefit statement of one particular product or service you offer.
 The length of your introduction will depend on the circumstances of the introduction.
 It shouldn't need to be long, and it's possible to combine certain elements, such as your
business and your benefit statement.
 Always remember to speak clearly and smile, making eye contact with the person you're
speaking to.
 Using a bit of humor can put people at ease, but remember that certain types of humor
offend.
Cultural differences
 If an introduction doesn't go according to plan, one reason may be cultural differences.

 Every culture has its own way of meeting people in business situations for the first time.

 Here are 3 examples of how the common business practices of other cultures contrast with
those used elsewhere:

o In Brazil, an initial handshake is considered very important. There is likely to be a great deal
of small talk before the meeting properly starts, and the tone set here can be very important
in the relationship development cycle.

o In Russia, meetings are often very formal, structured and serious. Many Russian negotiators
believe that a formal meeting is a serious affair and should be treated accordingly. Humor is
rarely used in such serious situations.

o In China, formal exchanges of business cards are performed at the beginning of a first
meeting. The respect you show the card equates with the respect you show the person.
Written communication for business
 Much of the business communication you engage in will involve letters and emails.
 Although there is less need to think on your feet as with a conversation, writing well for
business is no less important if you want your business relationships to last.
 Many of the skills required during conversation can also be applied to written
communication, such as the:
- need to ask questions and
- use the right tone.
 You should be clear in what you're asking or saying to another party, particularly if your
written communication requires follow-up actions.
Formal language in written communication
 Using the correct level of formality in your written communication can be crucial.
 Factors to consider include:
 Your personal relationship with the recipient
If you have not met the recipient, or your meetings have been in only formal, business
settings, it is sensible to continue to remain formal in letters and emails.
If you have already struck up a rapport with the recipient you can be more informal, but
make sure you keep the communication focused on the business at hand.

 The purpose of the communication

If you are, for example, following up a transaction to check that a client is happy with their
purchase, you should not need to be as formal as if you were making a complaint or
communicating with someone for the first time.
Note that in some situations emails can quickly move back and forth between parties.
It is important to gauge the tone of each email carefully.
If the other party moves to a more informal style while you remain rigidly formal, you may
miss the opportunity to encourage a more informal and cooperative relationship.
Equally, being overly informal too soon can be seen as disrespectful in some circumstances.
Rules of writing formally and informally
 Some general rules for writing in each different tone include the following:
- Formal writing avoids contractions such as 'you're' and 'won't'.
- Informal writing can include more colloquialism and slang, such as 'loads of' in
place of 'many'.
- Formal writing is less likely to use abbreviations, preferring 'television' to 'TV' for
example.
- Informal writing is more likely to use short, simple sentences, while more formal
communication prefers longer sentences and complex expressions.

 It is safe to apply the rules of conversation to writing.

 Generally, you should probably be more formal in written communication than you would be
in a conversation.
Choosing to send a letter or email
 Letters are becoming increasingly rare in the business world due to the speed and ease of
email communication.

 You should only send letters if there is a specific need to do so, such as:
- the recipient has indicated they do not like using email, or
- they do not have the means to communicate electronically.

 Alternatively the situation may require a letter, but you may be able to attach it to an email
for fast receipt.

 It is normal to use letter conventions such as:

'Dear…' and
'Yours sincerely'
in emails, though the latter is increasingly being substituted with
'Kind regards'.
Style and grammar
 Make sure you check your writing and correct any spelling or grammar mistakes.

 This is particularly important when writing emails.

 In an age of automated spelling and grammar checkers it is more unforgivable to make such
mistakes.

 If you are unclear on the spelling of any words there are many online dictionaries you can
use.

 Remember there can be differences of spelling used in other countries - you should make
sure to use the right spelling in all your written communication.
*** Negotiating successfully
 Negotiation is a process where two or more parties with different needs and goals discuss an
issue to find a mutually acceptable solution.

 In business, negotiation skills are important in both:

- informal day-to-day interactions and
- formal transactions such as negotiating conditions of:
- sale,
- lease,
- service delivery, and
- other legal contracts.

 Good negotiations contribute significantly to business success, as they:

- help you build better relationships
- deliver lasting, quality solutions — rather than poor short-term solutions that do
not satisfy the needs of either party
- help you avoid future problems and conflicts.

 Negotiating requires give and take.

 You should aim to create a courteous and constructive interaction that is a win-win for both
parties.

 Ideally a successful negotiation is:

- where you can make concessions that mean little to you,
- while giving something to the other party that means a lot to them.

 Your approach should foster goodwill, regardless of the differences in party interests.

 A good negotiation leaves each party satisfied and ready to do business with each other
again.

 This presentation:
- explains why negotiation is important, and
- outlines strategies and tactics for negotiating well.
Negotiation skills
Negotiating successfully
 Strong negotiators master:
- written,
- verbal and
- non-verbal
communication.

 They adopt a conscious, assertive approach to their communication.

 Good negotiators are:

- flexible
- creative
- aware of themselves and others
- good planners
- honest
- win-win oriented
- good communicators.
Assertive communication
 During a negotiation, you may choose to use a:
- passive,
- aggressive or
- assertive
communication style.

 Assertive style will help increase your chances of negotiating successful outcomes for your
business.

 Passive communicators are inclined to:

- use ambiguous language,
- adopt under-confident body language, and
- give in to demands too easily.

 Aggressive communicators take a confrontational approach that tends to:

- alienate other parties and
- destroy negotiations.
 Assertive communicators, however, are both confident and considerate.
 These communicators are more likely to:
- keep discussion going and
- facilitate mutually beneficial outcomes.
 They adopt a strong, steady tone of voice.
 They are factual, rather than emotional or critical.
 They describe their views, starting sentences with 'I', rather than direct criticisms starting
with 'you'.

Tips for effective negotiation

Don't:

o confuse negotiation with confrontation - you should remain calm, professional and patient

o become emotional — remember to stick to the issue, don't make it personal, and avoid
becoming angry, hostile or frustrated

o blame the other party if you can´t achieve your desired outcome.
Do:
o be clear about what you are offering and what you need from the other party

o be prepared — think about what the other party needs from the deal, and take a
comprehensive view of the situation

o be consistent with how you present your goals, expectations and objectives

o set guidelines for the discussion and ensure that you and the other party stick to them
throughout the entire process

o use effective communication skills including positive body language

o prepare for compromise

o strive for mutually beneficial solutions

o consider whether you should seek legal advice

o ask plenty of questions

o pay attention to detail

o put things in writing.

Strategies for negotiating
 Understanding the other party's interests and tactics is integral to good negotiating.
 Choosing a strategy that best responds to their interests and tactics will help you achieve the
best outcome.

Matching the strategy to the situation

 Some of the different strategies for negotiation include:
o problem solving — both parties committing to examining and discussing issues
closely when entering into long-term agreements that warrant careful scrutiny
o contending — persuading your negotiating party to concede to your outcome if
you're bargaining in one-off negotiations or over major 'wins'
o yielding — conceding a point that is not vital to you but is important to the other
party; valuable in ongoing negotiations
o compromising — both parties forgoing their ideal outcomes, settling for an
outcome that is moderately satisfactory to each participant
o inaction — buying time to think about the proposal, gather more information or
decide your next tactics.
 Your chosen strategy will depend on:
- who you are negotiating with and
- the type of relationship you have with them.

 For example:
- what level of cooperation and common interest exists between you, and
- how will each party behave during the negotiation?

 It will also depend on:

- what you are negotiating, and
- the time frame and setting you are negotiating in.
How to approach a negotiation
 As well as choosing a strategy, you may wish to consider your approach to the issue being
negotiated.

 There are 3 key approaches to negotiations:

- hard,
- soft and
- principled negotiation.

 Many experts consider the third option — principled negotiation — to be best practice:

 The hard approach involves contending by using extremely competitive bargaining.

 The soft approach involves yielding, where one party tries hard to meet the interests of the
other party and forgoes their own interests.

 The principled negotiation focuses on achieving a lasting, win-win outcome by:

- separating the people from the problem
- focusing on interests not positions
- generating a variety of options before settling on an agreement
- basing the agreement on objective criteria.
The negotiation process
 Every time you negotiate, you have to make choices that affect whether you achieve a
successful outcome for your business.

 To get the best outcomes, you need to understand the steps involved in the negotiation
process.

 While many negotiations are straightforward, some will be among the hardest challenges you
face.

 Your success will depend on planning and preparation.

 Always approach negotiations with a clear set of:

- strategies,
- messages and
- tactics
that can guide you from planning to closing.
Planning your negotiation
 No amount of preparation is too much in approaching complex or high-stakes (=à enjeux
élevés) negotiations.
 Plan both:
- your approach to the subject under negotiation, and
- your tone and communication style.
 In approaching the subject of your negotiations:
o set your objectives clearly in your own mind (including your minimum acceptable
outcome, your anticipated outcome and your ideal outcome)
o determine what you'll do if the negotiation, or a particular outcome, fails
o determine your needs, the needs of the other party and the reasons behind them
o list, rank and value your issues (and then consider concessions you might make)
o analyze the other party (including their objectives and the information they need)
o conduct research and consult with colleagues and partners
o rehearse the negotiation
o write an agenda — discussion topics, participants, location and schedule.
 In deciding your communication style, familiarize yourself with successful negotiating
strategies.

 Arm yourself with:

- a calm, confident tone and
- a set of considered responses and strategies
to the tactics you anticipate.
Engaging with the other party during the negotiation
o Introduce yourself and articulate the agenda.
o Demonstrate calm confidence.
o Propose — make your first offer.
o The other party will also make proposals.
o You should rarely accept their first offer.
o Evidence suggests that people who take the first proposal are less satisfied and
regret their haste.
o Check your understanding of the other party´s proposal.
o Remember your objectives.
o Discuss concepts and ideas.
o Consider appropriate compromises, then make and seek concessions.
o Suggest alternative proposals and listen to offered suggestions.
o Paraphrase others' suggestions to clarify and acknowledge proposals.
o Give and take.
Closing the negotiation
 Take a moment to revisit your objectives for the negotiation.
 Once you feel you are approaching an outcome that is acceptable to you:
- look for closing signals
For example:
- fading counter-arguments
- tired body language from the other party
- negotiating positions converging
- articulate agreements and concessions already made
- make 'closing' statements
For example
- 'That suggestion might work.'
- 'Right. Where do I sign?'
- get agreements in writing as soon as you can
- follow up promptly on any commitments you have made.
When negotiations fail
 Even with the best preparation, you may not always be able to negotiate a successful
outcome.

 You must plan for what to do in case negotiations fail.

 If you allocate time and resources to planning alternative solutions, you can avoid:
- unnecessary stress and
- poor business outcomes.

 Having an alternative plan will help you to:

- reduce your own internal pressures
- minimize your chances of accepting an offer that is not in your best business
interests
- set realistic goals and expectations.
Preparing an alternative plan
 It's important to remember that, when it comes to negotiating, there's always more than one
positive solution for your business.

 Ensure you have an alternative plan.

 Consider your 'best alternative to a negotiated agreement' (also known as BATNA).

 Take pressure off yourself by identifying several other options or alternatives to the outcome
you are seeking.
1. Brainstorm all available alternatives to the process you are negotiating.
2. Choose the most promising ideas and expand them into practicable alternatives.
3. Keep the best alternative in reserve as a fallback.

 Take a firm and assertive stance when:

- proposing ideas or
- drawing definite lines in your negotiation.

 Being willing to walk away is a powerful tool.

 Clearly determine the worst possible outcome you are prepared to accept in the negotiation.
Consider mediation
 If negotiations are unsuccessful, be prepared to consider dispute resolution.

 Third-party mediation can establish a constructive environment for negotiation that requires
both parties to:
- discuss,
- propose and
- resolve issues fairly and objectively.