Group 8

SELLING SKILLS & SELLING STRATEGIES

SELLING SKILLS

These are the sum total of aptitudes and skills such

as communication skills, problem solving skills,
and negotiation skills
TYPES OF BUYERS

Innovators
 People who are adventureous and have high risk

capital . they mostly buy on impulse and consider

non functional reasons for making a choice

Laggards
 They accept new products and innovations after

seeing the innovators using it . they start buying

when another new product is at the door step
FACTORS INFLUENCING THE NATURE OF BUYING

 Number of competitors

 Quantity of purchase by the buyer

 Switching cost involved

 Availability of substitutes
THEORY OF DIFFFUSION
 As per the theory it is easy to convince innovators to
buy products , where as difficult to close a sale in
case of laggards

 Innovators do not give much importance to sales

persons

 They make purchase out of the habit of

experimenting
 Laggards are always very defensive and always
make a rational choice .

 They evaluate all available information before

making a choice .

 The buy the products when everyone starts

buying .
SELLING AND BUYING STYLE
 The success of selling depends upon the
matching of buyer and seller characteristics as
well as their buying styles

 This has been explained with the help of a grid

C 9 (9,9)
O (1,9)
N
C 8
E
7
R
N 6

FO 5 (5,5)
R
4
C
U 3
S
T 2
O
1 2 3 4 5 6 7 8 9
M (1,1) (9,1)
E
R
CONCERN FOR THE SELLER
 (1,1) sales persons believe in the physical display
of the product and believe that the customer will
by himself if the logistics are managed

 (9,1) sales persons are more product oriented and

they push the product for sale . they don’t care for
the customer demands .
 (1,9) sales persons treat the customer as a friend . the
listen to the customer and respond to their feelings

 (9,9)sales persons consult with the customer to

understand his needs , and then suggest a product that
can fulfill the need

 (5,5) keeps a balance between the concern for the

customer and the product
FORMS OF SELLING
 MAINTENANCE SELLING

Involves the art of servicing the existing accounts,

securing promotional cooperation, counting
inventory and taking replenishment orders and
delivering the product
Sales people are called client serving executives .
eg sales persons in the it sector
 DEVELOPMENT SELLING

Contact the potential customer and build business

for the firm . this kind of selling involves locating
the potential buyer , securing specifications and
approvals for the purchase and closing the deal .
Sales executives are called business development
sales executives
SELING SKILLS
 Communication skills

 Listening skills

 Conflict management and resolution skills

 Negotiation skills

 Problem solving skills

COMMUNICATION SKILLS
 Communication is the exchange of ideas and
information between the two parties
COMMUNICATION PROCESS

Feedback

INTENDED PERCEIVED
MESSAGE MESSAGE

ENCODING NOISE
EVE DECODING

SENT RECEIVED
MESSAGE MESSAGE
channel
BODY LANGUAGE
The nonverbal cues taken together is called body language or the
visible code

It includes
 Personal appearance

 Posture

 Gestures

 Facial expressions

 Eye contact

 Space distancing
LISTENING SKILLS

Sales manager has to be a very good listener and

use his listening skills to lead towards sales
realization

Types of listening
 Content listening

 Critical listening

 Active listening
TYPES OF LISTENING
 CONTENT LISTENING

It is the understanding and reaction to the speaker’s

message . the information flows from the sales
person to the customer
TYPES OF LISTENING
 CRITICAL LISTENING

It is to understand and evaluate the meaning of the

speaker’s message at different levels . includes
implication of the message for the customer and
the organization , the speakers intension and
motive and the omission of any relevant data .
TYPES OF LISTENING
 ACTIVE LISTENING

It is to understand the speaker’s feelings ,needs ,

demands so that it can be appreciated by the
listeners irrespective of whether he likes it or
not .
PROCESS OF LISTENING

ATTENDANCE THE CUSTOMER PHYSICALLY RESPONDS TO THE MESSAG

AND
TAKES NOTE OF IT
ASSIGNING THE MEANING ACCORDING TO HIS OWN
INTERPRETATION
BELIEFS , VALUES , EXPECTATIONS , ROLES NEEDS
AND WANTS
REMEMBRANCE MESSAGE ARE STORED BY THE SELLER AS WELL AS THE
CUSTOMER

CUSTOMER APPLIES HIS THINKING SKILLS TO

EVALUATION
WEIGH REMARKS AND QUERIES

RESPONSE RESPONDS AFTER EVALUATING THE RECEIVER’S

ACTION MESSAGE
LEVELS OF LISTENING

FEEDBACK REACTION OF THE CUSTOMER TO A SALES

CALL
THE SALES PERSON TRIES TO PARAPHRASE THE
PARAPHRASING
QUESTION BY MIRRORING THE CUSTOMER’S POINT

CLARIFICATIO IT IS TO IDENTIFY THE CUSTOMER’S REAL CONCERN

NS
EMPATHETIC SALES PERSON TRIES TO SHOW THAT HE IS CONCERNE
LISTENING ABOUT THE FEELING OF THE COSTOMER

ACTIVE UNDERSTAND THE EMOTIONS OF THE CUSTOMER

LISTENING
BARRIERS OF LISTENING

 Defensive assumptions

 Self – centeredness

 Selective listening
MODELS OF CONFLICT

Daller and miller

It explains 3 kinds of conflicts

 Approach- approach

 Approach - avoidance
 Avoidance - avoidance
 Rummel’s model
COMPONENTS OF CONFLICTS
Interest based conflict
They arise due to differences in practices , rules and policies ,
needs and levels of resource use

 Emotional conflict
Includes feelings such as anger , fear , rejection , anxiety and loss

 Value components of conflict

It represents deeply rooted ideas and feelings about right and
wrong
CONFLICT RESOLUTIONPROCESS
 Stage 1
 Incompatibility
 Stage 2
 Personalization
 Stage 3
 Intension (competing collaborating compromising avoiding
accommodating)
 Stage 4
 Behavior
 Stage 5
 Outcome
WHAT IS NEGOTATION
Occurs when someone else has what you want,& perpare to
bargin for it & vice versa
 Skills required
 Ability to define & prioritize objective
 Explore options
 Prepare well
 Interactive competency
 Involves two types of exchange
 Routinized ( e.G. Products in retail counter)
 Negotiated ( e.G. Industry selling & bulk selling)
SITUATION AND TIMING FOR NEGOTATION
ZONE OF AGREEMENT
FORMULATION OF BARGAINING STRATEGY
 Keep strategy simple and flexible

 Hide negative emotions & frustrations

 Prepare briefing & reherse tactics

 ‘Hard Strategy’(one party show high rigidity)

 ‘SOFT STRATEGY’ (involves both parties)

THEORY AND STRATEGY OF PRINCIPLED NEGOTIATION

Means to decide on issues on basis of their merits

rather than haggling

Suggests:
 Look for mutual gains when possible

 where interest conflicts, insist on fair standards

 Is hard on merits and soft on people

FOUR PRINCIPLES
 Separate people from the problem

Reasons:
 Emotions gets entangled with obective
 Main issues are framed in terms of personality involved
 Involvement in contest of wills
 Confuse matters of relationship & substance
Strategy:
 Emotions to be made explicit
 Open discussion
 USE OF “I message” IN CREATIVE WAY
FOUR PRINCIPLES
 Focus on interest, not on positions

 Postions - is that one decided upon

 Intrest - cause one to adopt that position
 Reasons:
 Assumed that other side’s position is opposite to our’s, so interest
 Differences like: risk, timing, perception, marginal value
 Strategy:
 Directly asking questions about customer’s interest
 To be hard on problem & soft on people
FOUR PRINCIPLES
 Invent options for mutual gains

Reasons:
 Quarrel over interest that are common
 Approach is “more for me & less for you”
Strategy:
 Inventing options for mutual gains
 Innovative thinking, brainstroming
 Suspending criticism work for mutual benifits
FOUR PRINCIPLES
 Insist on objective criteria

Reasons:
 Opposite argues over his position rather than interest
Strategy:
 Identify objective standards
 Use of ‘batna’(best alternative to a negotiated agreement)
 ‘BATNA’-more attractive higher posibility of
sucessful negotiation
THE SELLING PROCESS
 Meeting personally to offer schemes
 Briefing about product, price
 Try & generate customer interest(show benefits,cost
saving)
 Probing deep to find our competitors infromation
 Providing comparision & educate customer
 Collect info. About our products used by other
 Assuring stocks available by co-ordinating with
warehouse & factory
NEGOTIATION PROCESS
 Start off with small discounts & delay final
discounts
 Approval of large discounts by involving higher
authorities
 For extended periods, restrict disc.
 Limiting disc. By looking at competitive pricing
and products
 Try to take customers request and close the deal
BARGAINING TACTICS
 Maneuvers by salespeople

 Clinch the deal for best solution

 Thefts, bluffs & last chance

 Other party is powerful

 BATNA
 Should I give the first offer?
 Should I start with a high offer?
 Should my preparation lead to a strategy?
 Should I sketch an agreement from the
beginning?
 Should I construct a framework for agreement?
 Should I move towards the commitment
gradually?
STRATEGIES OF PRINCIPLED NEGOTIATIONS

 Let the other party have it in your own way

 Indirect action rather than taking on

 Visit the balcony

 Evaluate as a third party

 Step to their side

 Lend them your ears
STRATEGIES OF PRINCIPLED NEGOTIATIONS

 Reframing rather than rejection

 “What is that you want to… ?”
 Open ended questions

 Let them take ownership

 “Building on your idea, what if we.. “

 Educating them to sense

 “What do you think will happen if we don’t agree?”
BARGAINING TACTICS
 Acting crazy
 Emotional commitment
 Auctioning
 Stick to your terms
 The Good Guy- Bad Guy routine
 Hindi movie scene
 Big pot
 High demand at the beginning
BARGAINING TACTICS
 Budget bogey
 Ends up with a low price
 Get a prestigious ally
 Prestigious to the opponent
 Escalation
 Point it out
 The well is dry
 No more concessions
BARGAINING TACTICS
 Limited authority
 “I have to check with my boss.”
 Whipsaw / auction
 Keep them waiting
 Divide and conquer
 One member of the team
 Reunion
 Stand away from the negotiator
BARGAINING TACTICS
 Deadline
 Never accept other party’s deadlines
 Sticks and stones
 “Hey you look so down, are you not doing good sales
these days?”
 Get lost / stall for time
 Take a break
 Take it or leave
 Threat
BARGAINING TACTICS
 Wet noodle
 Do not respond
 Veiled threat
 Power enjoyed
 Let’s split the difference
 Proactive behaviour
 Play the Devil’s advocate
 “Before I say yes or no, let’s look at all the bad things
that may possibly happen if we did what you want.”
BARGAINING TACTICS
 Trial balloon
 Reliable source
 Surprises
 Drastic, dramatic & sudden shifts
 What’s the rock bottom price
 “How many will you need?”
 Adversarial negotiating tactics
 Negative tactics
PROBLEM SOLVING SKILL
 Salesman should be problem solver not order
taker
 Characteristics of effective/ineffective problem
solver
 Attitude
 Actions
 Accuracy
 Solution procedure
“7 HABITS” OF EFFECTIVE PEOPLE
 Be proactive
 Begin with an end in mind
 Put first thing first
 Think win-win
 Seek first to understand , then to be understood
 Synergize
 Renewal
PROBLEM SOLVING PROCESS

Define the problem

Generate alternative solution

Decide the solution

Implement the solution

evaluate the solution

MCMASTER FIVE POINT STRATEGY
 Define

 Explore

 Plan

 Act

 Reflect
GOMAN’S BLOCKBUSTER

Blocks Blockbuster
• -ve attitude • Attitude adjustment
• Fear of failure • Risk taking
• Follow rules • Breaking the rules
• Over rely on logic • Internal creative
• You are not creative climate
• Creative belief
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