Negotiation and Selling

Skills
Selling to a Peer Group
• What is a peer group?
• A peer group is an association of members having
approximately
• the same age,
• interests and of
• same social status.
• Peer group is a non-hierarchical group
organisation,
• where each member is bounded with strong
relationships with each other.
Selling to a Peer Group
What is a peer group?
• The purpose of a professional peer group is
• to allow each member to understand the
other member in a proper manner, and
• The purpose of non-professional peer group is
primarily for creating a common identity.
• In short,
• it is a social group composed of people of
similar age and status,
• governed by a homogeneous system of values.
Selling to a Peer Group
• In today's environment of increasing sales costs
and lengthening sales cycles,
• organizations are focusing their efforts
• on maximizing the efficiency and
effectiveness of their sales teams
• through targeting the peer groups.
• Selling to a peer group is another way of
designing the segmentation.
 Selling to a Peer Group
• Peer-to-peer selling is a process where customers buy
a product and share what they like about it with their
peers, encouraging new sales.
• For instance,
• eating at a restaurant,
• staying at a hotel or
• purchasing a new pair of shoes
• because you read a positive review online is
peer-to-peer selling.
Selling to a Peer Group
• Before using it, it is mandatory to search the
following information pertaining to a group:
• How the elements (people) in the target group make
decisions related to specific issues (e.g., health-
seeking behaviour, livelihood strategies, household
resources).
• Who exercises power and how power relations are
experienced.
• How people talk about and experience key issues in
their daily lives.
Selling to a Peer Group
• How people identify their livelihood, health, social
and emotional needs.
• Who are excluded from the common resources and
services and how they are excluded.
• Identifying barriers to access.
Selling to a Peer Group
• Advantages of Selling to Peer Groups

• Accommodate the busy schedules of peers

• Peers can manage their own learning and
development
• Very cost-effective
• Automatic Expansion
• Ideal for unsought product
Selling to a Peer Group
How to design the sales campaign?
• Even though it looks lucrative to target a peer
group,
• it needs the sales plan to be designed in a
specific manner.
• The campaign should contain minimum following
aspects in it.
• It should look to be smart,
• Peer focused,
• Allow the brand engagement with the peers
• Take the brand into the grapevine, and
• Allow to inculcate word of mouth,
Selling to a Peer Group

How to use peer-to-peer selling?

• Create connections on social media and share customer
content
• Ask for video testimonials
• Create or join online communities
• Record and apply customer feedback
• Utilize the potential of online reviews
Selling to B2B, B2C,
C2C
B2B and B2C
• Consumers
• Industry/Organization/Govt/Institutions
• Points of discussion,
• Demand (Consistency), Quantity, Derived Demand
• Decision Making Process (Purchase)
• Factors – Internal – External
• Buying Centre
• Influence created by Seller
Consumer Markets
• Consist of consumers
who purchase goods
and services for
personal use.
Model of Consumer Behavior

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Characteristics/ Factors Affecting Consumer Behavior

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 Consumer Buying Decision Process
The buying process starts long before purchase and lasts long after.

Need Evaluation of Purchase Postpurchase

Information
Recognition Alternatives Decision Behavior
Search

Triggered by Personal sources, Depends on the Two factors can Satisfied or

internal or commercial individual & the come between the dissatisfied with
external stimuli sources, public specific buying purchase intention the purchase?
sources situation & the purchase
(consumer rating decision: attitudes
sources), of others &
experiential unexpected
sources (testing it situational factors
out)

A routine purchase (ex milk, or toothpaste) might skip from need recognition
to purchase decision.
Business Markets
Market Structure and Demand

Fewer and larger buyers

Geographic concentration

Derived demand
• Inelastic demand
• Fluctuating demand
Buyer and seller dependency
Business Buyer Behavior
Factors Influencing Business Buyer Behavior
Business Buyer Behavior
Major Types of Buying Situations
Straight rebuy is a routine purchase decision such as
reorder without any modification

Modified rebuy is a purchase decision that requires some

research where the buyer wants to modify the product
specification, price, terms, or suppliers

New task is a purchase decision that requires thorough

research such as a new product
The Business Buying Process

Problem Product Supplier

General Need
recognition Specification Search
Description

Proposal Supplier Order-routine Performance

Solicitation Selection Specification Review
Business Market Customers
Consumer and Business Buyer Behavior
Participants in the Buying Process
Buying center is all of the individuals and units
that participate in the business decision-making
process
• Users
• Influencers
• Buyers
• Deciders
• Gatekeepers
 Consumer and Business Buyer Behavior
Participants in the Buying Process

• Buying center provides a major

challenge
• Who participates in the process
• Their relative authority
• What evaluation criteria each
participant uses
• Informal participants
 Business Markets - Revision
Business buyer behavior refers to the buying behavior of the
organizations that buy goods and services for use in
production of other products and services that are sold,
rented, or supplied to others.

Business buying process is the process where business buyers

determine which products and services are needed to
purchase, and then find, evaluate, and choose among
alternative brands
B2B, B2C and C2C

• Business to Business (B2B) Sales refers to a sales model

that targets businesses.
• Business-to-Consumer (B2C) refers to business
relationships between companies and consumers.
• Consumer to Consumer (C2C) is a business model
whereby consumers can trade with each other, typically
in an online environment.
 B2B and B2C
B2B vs. B2C sales: Differences
1. Target audience
2. Path to sale
3. Content-type
4. Sales cycle
5. Direct online sales
6. Price points
7. Acquisition costs
8. Customer relationships
9. Sales experience
10. Lead pool size
B2B and B2C
Similarities between B2B and B2C sales
1. Real people
2. Customer-first
3. Credibility
4. Customer journey
5. Goals
6. Channels
7. Experience
8. Aligned marketing
9. Defined Strategy