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Unit – 3

Negotiation Skills & Selling Skills


Negotiation
It is something that we do all the time, not
limited only for business purposes.
It is usually considered as a compromise to
settle an argument, dialogue or issue to benefit
all involved to its maximum extent.
It is not limited only between two people and
can involve several members from two or more
corners.
Negotiation is a process of communication in
which the involved parties aim to send a
message to the other side to influence each
other.
Negotiation
It usually involves people who have never had a
previous interactive relationship, nor are they
likely to do so again in the near future.
The process generally involves some form or
combination of making worth for value
concessions
It is in sense, a creative problem solving device
to develop a long term relationship to create
mutual gain to attain a win-win position
It brings an expected or unexpected outcomes
It is a challenge that sharpens personal skills
and brings change in attitude.
Negotiation
It is a process of discussion in order to reach an
agreement or settlement
In negotiation each involved carries their own
aim, needs, view points to discover a common
agreement of mutual concern
Negotiation necessitates attitude, character,
communication, relationships and public
characteristics, and an assurance besides
personal and professional skills.
It is to gain customer commitment to a
beneficial business partnership that is the
ultimate goal of every interaction
Aim of Sales Negotiation
It is to gain acceptance of an initial sales proposal
It is to built lasting yet profitable client
relationship.
It is to resolve points of differences and to gain
advantages for an individual or groups that the
outcomes must cater the need and interests.
It is to acknowledge the differences and agree to
work towards a solution for the future
It is to analyze a problem to determine the
interests of each party in the negotiation. A
detailed problem analysis identifies the issue, the
interested parties and the outcome goals.
Dos of Successful Sales Negotiation
Avoid confrontation and heated discussions.
Never allow the negotiations to become personal.
Give some time, and do not show urgency.
Know when to leave effective comments alone.
Apply the silence. It is of great relevance.
Take notes of the important points.
Expect the unexpected and review.
Maximize the value of concessions.
Always end negotiations positively.
Calculate and conclude how to make the outcome
a bigger win for both or all sides.
Don’ts of Successful Negotiation
Do not offer variables otherwise not necessary
and important.
Do not create an example of yourself. Think of
the long term. Keep away of myopia.
Do not negotiate on areas over which you do
not have enough control.
Do not rush or panic or show urgency.
Do not offer alternatives.
Do not open the deadlock in hurry.
Do not stop thinking and draw restrictions for
yourself.
Don’ts of Successful Sales Negotiation
Do not make hypothetical and unrealistic
assumptions.
Do not be satisfied on compromising outcomes.
Do not keep chasing for the lost causes.
Do not negotiate on the ultimate objective.
Do not relax and defensive.
Do not underestimate others.
Do not allow other party to think they are
superior.
Do not be afraid to walk away.
Do not be afraid of possible failures.
Skills Required for Sales Negotiation
 Positive Attitude
 Sense of Humour
 Self Respect
 Job Responsibility
 Self Confidence
 Emotional Intelligence
 Behavioral Control
 Creativity and Calm
 Constructive Criticism
 Flexibility in Acceptance
 Effective Speaking
 Effective Listening
 Patience & Polite
 Bargaining attitude
Selling (Buyer – Seller) Dyads
Effective communication is a key to successful
selling, specifically in personal selling process.
 The buyer-seller dyad is flexible and efficient,
closes sales, and provides feedback
It suggests a competent personal selling plan
1. Salesperson identifies and determines
consumer needs.

2. Salesperson presents information


and answers consumer queries.

3. Salesperson and consumer


conclude transactions.

Salesperson Consumer
Order Takers and Order Getters
ORDER TAKERS ORDER GETTERS
Generate customer leads and
D
Process routine orders and re-orders
persuade consumers
I
Provides only clerical functions F Are Creative and Innovative
F
Handle pre-sold items and maintain E Handle high-priced/complex
sales.
R items and increase sales

Arrange displays, restock items, E


answer simple questions, & completes N Are less involved with routine tasks
the transactions
C
E
S
Require general training and Require specific training and
compensation compensation

Have limited expertise and enthusiasm Are highly expert and enthusiastic
Decision Making Units (Buying Center)
 It is a group or team of individuals who participate
in buying decision process.
 It connects to industrial or organizational buying
process (i.e. B2B).
 Sometimes it may relate to B2C, where several
key players are involved in the decision making
process.
 It refers to collective purchase decision and a
powerful marketing and stakeholders management
tool.
 For marketer, it is crucial to identify the most
influential person in the buying process.
Decision Making Units (Buying Center)

Gate Buyers
Decision
keepers Makers

Decision
Making Unit
[DMU]

User Initiators
Influencers
Decision Making Units (Buying Center)
Influencer : Persuasive Role in decision making. Based on
their knowledge, experience and expertise can makes
recommendation. Eg. Consultants, lawyers etc.
Initiators : Identification of need or a problem that needs to
be solved.
Gatekeepers : Proactive in information search and deliver
recommendation to the decision makers.
Buyers : Responsible for purchasing based on pre specified
criterion to select the best as per the need. Responsible for
sourcing and negotiation.
Decision Makers : To make the final deal. To place the final
order. To review the information from the buyers, initiators
and gatekeepers. Holds important position.
Users : To bring the purchase into operation. Most concern
in specification. Heavily involved in post purchase evaluation
and buyer decision process.
Types of Buying Situations
 It is guided by 6 competing concepts as,
♦ Production concept
♦ Product concept
♦ Selling concept
♦ Marketing concept
♦ Customer concept and
♦ Societal Marketing concept
 The buying firm purchasing decision is based on 3
parameters as,
♦ Buying direction
♦ Procurement direction and
♦ Supply Chain Management direction
Buying Motives in Industrial Marketing
► To reduce the manufacturing cost
► To make product competitive in the market
► Regular supply of materials or not
► Durability and stability of the material
► Modernization of plant to increase efficiency
► Insured and protected products against risk
► To supplement with the technical support
► To share risk among the associated partners
► Extent of dependency on each other
► Speculation of price rise
► Government initiatives
Purchasing Criteria / Orientation
 Buying Direction (New task)
♦ Company buying for the 1st time
♦ The buyer have little and limited knowledge
♦ Lack of previous experience
♦ To obtain various information about the purchase
♦ The direction of information involves, product, suppliers, price
or alternatives
♦ More risk for both the parties
♦ Decision may take longer time
♦ More people involved in decision making
♦ The prime considerations for buyer are,
● Lowest price
● To gain power over the supplier and
● To avoid risk
Purchasing Criteria / Orientation
 Procurement Direction (Modified rebuy)
♦ When the firm is not satisfied with the existing supplier
♦ Primarily with intension to cost reduction
♦ To improve the quality of the material for more efficiency
♦ With an intention of more benefit and value addition
♦ When technical people needs change in product specification
♦ Strict evaluation of supplier before final decision
♦ Continuation of uncertainty and doubts
♦ Decision is based on the firm meeting the optimum criteria of
supply and the product and service need
♦ Example – Market research firm
♦ The buyer considers the practices such as,
● Collaborative relationship with major suppliers
● Working closely with other functional areas
Purchasing Criteria / Orientation
 Supply Chain Management (Straight rebuy)
♦ When the product or the service is purchase in past
♦ Buying firm needs continuous supply of the product/service
♦ Places repeat order without hesitation
♦ Buying firm is satisfied with the supplier performance
♦ All the terms remains same as, product, price, delivery period,
credit period, payment terms etc.
♦ This is considered as a routine decision
♦ Low risk involved in the purchase
♦ Less or no further information is needed
♦ A win – win situation for both involved parties
♦ Some further consideration exists such as,
● To deliver superior value to the end users
● Outsourcing of the no core competitive product
● To offer support and collaboration among both parties
The Buying Decision Process
It is an organizational decision making process
and involves 8 logical sequence to complete
♦ Problem or need recognition
♦ Quality and quantity of the needed product
♦ Description of the needed product
♦ Search for potential suppliers
♦ To obtain and analyze the suppliers proposals
♦ Proposal evaluation and supplier finalization
♦ To issue purchase order
♦ Performance feedback and post purchase
evaluation
Assignment - 3
Describe the Customer Value and its
Importance in Negotiation and Selling.

You are instructed to submit the same in


professional manner on or before up to
September 17, 2019 (Tuesday) 16:00 Hours.

If I am not at my seat please leave the


assignment on my desk below the glass.

No, unethical and hypothetical excuse,


please!

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