Selling & Negotiation Skills

Dr. Priti Saxena

 Evolution of Business thinking
• Production Philosophy (1850s-1900)
• Product Philosophy (1900s-1930s)
• Selling Philosophy (1930s-50)
• Marketing Philosophy (1950s- until the 21st century)

• The Societal Marketing philosophy (emerged in 1970s)

• The holistic marketing philosophy
Production Concept
• The production concept specifies that consumers will prefer products that are widely available and
inexpensive. The concept is based on the production orientation of the firm. It is based on the idea that the
more we produce, the more revenue we will make.
• So, the organization try to lowering production costs and achieve higher volume by following intensive
distribution strategy. Managers believe that consumers prefer products that are widely available and priced
low.
• This seems a viable strategy in a developing market where market expansion is the survival strategy for the
business. Application of this concept leads to poor quality of service and a higher level of
impersonalisation in business

Product Concept
• The product concept specifies that consumers will favour quality, performance and other innovative
products.
• Managers focus on developing superior, innovative products and improving the existing quality and
product lines over a period.
• Innovations in the scientific laboratory are commercialised and consumers get an opportunity to know and
use these products. This is called “Technology Push Model”.
• The drawback of this approach is that managers focus on launching products based on their own scientific
innovations and technological research and forget to read the consumer’s mind.
• It is often observed that innovations enter the market before the market is ready for the product. Innovative
products are launched without awareness, educating the customers about them and the probable benefit or
value that the consumer is likely to get by using the new products.
• Selling Concept
• The selling concept specifies that the consumers and business if left alone, will ordinarily not buy
enough of the firm’s products. The organization must, therefore, invest in selling and promotion effort.
• The selling concept proposes that customers, be individuals or organizations will not buy enough of the
firm’s products unless they are persuaded to do so through the selling effort. So, companies should
undertake selling and promotion of their products for marketing success.

• Marketing Concept
• The marketing concept specifies that the company must be more effective than the
competitors in creating, delivering, and communicating customer value to its chosen target
markets, to achieve its organizational goals.
• The concept proposes that the reason for success lies in the company’s ability to create,
deliver and communicate a better value proposition through its marketing offer, in
comparison to the competitors for its chosen target segment.
The Societal Marketing Concept
• Societal Marketing has the observation that an organization must settle on great promoting choices in
the wake of considering customer needs, the prerequisites of the organization and above all else the long
term interests of the general public. Societal Marketing is really a branch of the idea of Corporate Social
Responsibility and maintainable development. This concept urges organizations to accomplish more
than having a trade association with consumers, to go past conveying products and work for the profit of
the consumers and the society.
• Example: The Body Shop International PLC is the first, common and moral excellence brand. The
organization utilizes just plant based materials for its products. It is against Animal testing, backs group
exchange; actuate Self Esteem, Defend Human Rights and general security of the planet. They have
likewise their own philanthropy, The Body Shop Foundation, to support those attempting to accomplish
advance in the ranges of human and social equality, ecological and animal security

Holistic Marketing – Meaning, Concepts, And Importance

• 
• “The whole is more than the sum of its parts.” — Aristotle
• A human will always be greater than the sum of eyes, nose, legs, hands, etc. Holistic marketing
revolves around this philosophy of holism where the business and its parts are considered as one
interconnected entity and where all its activities are directed towards one specified goal
•The holistic
business as amarketing concept
whole, its place is abroader
in the marketing strategy
economy is society,
and that is developed
and in the by thinking
lives about the
of its customers
Features of Holistic Marketing
• A Common Goal: Holistic marketing concept believes that the business and all its parts should focus
towards one single goal which is a great customer experience.
• Aligned Activities:All of the services, processes, communication and other business activities should
be directed towards that common goal.
• Integrated Activities: All activities should be designed and integrated in such a way so as to create a
unified, consistent and seamless customer experience
 Components of Holistic Marketing
Relationship Marketing

• The relationship marketing aspect of holistic marketing philosophy focuses on a long-term customer relationship and
engagement rather than short-term goals like customer acquisition and individual sales. This strategy focuses on
targeting marketing activities on existing customers to create a strong, emotional, and everlasting customer connections.
These connections further help the business in getting repeated sales, free word of mouth marketing and more leads.

Integrated Marketing

• Integrated marketing is an approach to create a unified and seamless experience for the consumer to interact with the
brand by designing and directing all communication (advertising, sales promotion, direct marketing, public relations, and 
digital marketing) in such a way so that all work together as a unified force and centres around a strong and focused
brand image

Internal Marketing

• There are two types of customers to every business: internal and external. While focusing on external customers should
be a top priority for every business, internal customers should not be left unnoticed as these internal customers
(employees) play a vital role in marketing the brand and products to the external customers of the business.

• Internal Marketing treats employees and staffs as internal customers who must be convinced of a company’s vision and
worth just as aggressively as external customers. It also involves crafting processes which make them understand their
role in the marketing process.

Socially Responsible Marketing

• The socially responsible marketing aspect of the holistic marketing concept involves a broader concern of the society at
large. It requires the business to follow certain business ethics and focuses on partnerships with philanthropic and
community organisations. A business is considered as a part of the society and is required to repay the same.

• Socially responsible marketing encourage a positive impact on company’s stakeholders.

 Golden Discoveries of Selling
• Pareto Principle; 80/20 Rule
• One of the biggest discoveries of 20th century is that the top
performers in every field are only a bit better than their peers
in critical areas and this is called. “The Winning Edge”
• The difference between the best IQ and the lowest IQ of a
group of individuals studied is 2.5 times but the difference
between the income level of the best & the worst performer
is over 100 times
So what do you conclude….?
 Basics of sales success/sales process
• Prospecting
• Building Rapport & Trust
• Identifying Needs
• Presenting
• Answering objections
• Closing the sale and asking for Action
• Getting resale and referrals
https://www.lucidchart.com/blog/what-is-the-7-step-sa
les-process
 Calculate coefficient of sales effectiveness

• You grade yourself on a scale on 1-10, 1 being lowest

& 10 being highest, add up your score & divide by 7,
if your average score is less than 5 then it’s a cause of
concern.
• Then you study each of the KRAs and find the weak
zone since that is the one which is holding you back
from success than anything else
 How selling evolved since 1950

• Transactional selling (1950s-1970s)

• Consultative selling era emerges (1980s)

• Value added selling(21st century )

• What is Transactional Selling?
• It is a sales strategy that involves focusing on achieving quick sales without a deliberate attempt to
form a long term customer relationship. Here the representative seeks out prospects, develops a
relationship and then tries to close a sale. The sales rep finds out what the customer needs and
then tries to provide it for that specific sales as he is not concerned to develop a long term
relationship with the customer.
• This strategy tends to be more common for a business which offers generic products or services,
with an objective of making profit by high volume sales. It is a short term solution with primary
concern on promotion and selling of the product and no emphasis on customer needs. Hence it is
all about the single sale.

What Is Consultative Selling?

• Here customer knows what he needs hence little product knowledge is required. Buying criteria
typically depends on price or ease of acquisition.
•  Consultative selling focuses on the customer's needs and experiences rather than on a product or service.
• The goal of this kind of selling is to build a long-term relationship rather than a short-term, transactional one.
• Consultative selling involves preparing for the appointment, asking questions and listening to the answers,
being authentic, and following up. 
• To succeed in consultative selling, you should have experience in customer service and/or sales and
exceptional interpersonal, communication, and organizational skills. 
• This makes it easy for the salesperson to match those needs to benefits related to the product or service
they're selling.
 Example , Transactional Selling vs. Consultative Selling

• Transactional Sales Behavior Asking for a Meeting

• "Hi Jim, Dan Fisher with High Tech Staffing. I'm going to be in your neighborhood next week
and I wanted to see if I could stop by and introduce myself and meet so I can learn about
your business.  I only need fifteen minutes."
• With this approach the salesperson leads with what is important to them and their personal
agenda while the customer is left wondering, "what's in it for me?"  Remember, in order for
the customer to say "yes" and accept the meeting means they likely have to say "no" to
something else to fit the meeting into their crazy-busy schedule.  Where is the incentive to
do so? 
• Consultative Selling Sales Behavior Asking for a Meeting
• "Hi Jim, we’ve had success working with others in your industry including ABC
Manufacturing by helping them integrate their MES with their ERP system. How do you feel
about us scheduling some time to get together where I can share with you how we
address issues in these areas as well as industry trends and best practices, and you can
share with me how your company is performing in these and other areas to better
understand how might work together?"
• In this instance the salesperson is offering value by sharing with the customer not only what
will be discussed in the meeting but highly relevant information and data points that are of
value to the customer. They're following a consultative selling framework.
 The Value-Added Selling Philosophy

• Value-added selling is a proactive philosophy of seeking ways to enhance, augment, or enlarge

your bundled package solution for the customer. It’s promising a lot and delivering more, always
looking for ways to exceed the customer’s expectations.
• Value-added selling is a proactive philosophy. Value added salespeople take the initiative to add
value. Value added salespeople do not wait for the customer to complain about the price and then
say, “Hold on a minute while I whip some value-added selling on you!” Value added salespeople
build more value in on the front end so that price becomes less of an issue on the back end. Being
proactive with customers means you never have to say you’re sorry.
•  Selling a product that can save a prospect money.
• S: “Do you know what you’re currently spending on outsourcing customer service?”
• P: “Something like $25k per month.”
• S: “That seems like a lot. Based on what we discussed previously, I believe a good
chatbot could answer approximately 70 percent of your incoming customer
questions. What would happen if we could serve 70 percent of your customers
before they even called?”
• P: “We could scale back the customer service department by about 70 percent.
Hypothetically.”
• S: “Right. Which works out to about $17,500 in savings, roughly. Our chatbot
services, by contrast, only cost $1,000.”
 Value proposition canvas
• What
• Why
• How
• Example
• Test
 Value Proposition canvas Template

The 6 stage value proposition builder;

1. Who is the customer
2. Job/Pain/Gain
3. Features & the job/Pain/Gain
4. Customer dissatisfaction
5. Customer preference
6. The value to the customer
 Diversity of Personal selling situations

According to McMurry & Arnold:

• Group A (Service Selling)
• Group B (Developmental selling)
• Group C (Basically developmental selling but
requiring unusual ceativity)
 Theories of selling
• AIDAS
• Right set of circumstances
• Buying Formula theory
• FAB Method
• SPIN Method
• Missionary selling method
• SNAP selling
 AIDAS
Attention
• This is the stage where the prospect or consumer becomes aware of a category, product or brand. In
layman terms, this is the first impression of your marketing or sales effort in the eyes of the end-users
and customers. This is a very important stage as this is where you are going to secure the attention of
the customer.
• In a face to face or verbal communication, one of the best ways to grab the attention of the prospect
is by using the Elevator pitch.
2. Interest
• This the stage where the prospect or consumer becomes interested in learning about the benefits that you are offering
and how that is going to match their expectations.
• Most sales professionals and marketers know that this is one of the most important stages in the selling cycle. All your
sales effort will nothing if you can’t create the desired interest in the minds of the customers.
• It is very important that after grabbing the attention of your customer you create the desired interest to facilitate
knowledge sharing about your product and brand. It is also important and how it’s going to help solve their problem.
• In this technique, your communication must be primarily focused on what is there in it for the customer. How your
brand and product is relevant to the customer. Any marketing or sales communication should reinforce this.
• Personalization is also very important at this stage. The more personalized your communication is, the more you will be
able to maintain the interest of the customer.
3. Desire
• In this stage, the prospect or consumer develops a favorable opinion towards the category, product or brand. Majority
of the time a buying decision is made on the basis of emotional appeal and utility.
• The utility is mostly addressed through WIIFM in the earlier stage of creating interest for the customer. However, the
most tricky aspect of the AIDAS communication model is creating emotional appeal which would lead to a desire to
make a buying decision
 AIDAS

4. Action
• The final stage where the prospect or consumer forms a purchase intention, shops around,
engages in trial or makes a purchase. The customer is yet not sold and complacency in this
stage leads to many lost sales.
• The thing to keep in mind is to ensure that you make it simpler for the customer to take action.
A complex system of buying or taking action can lead to lost sales. The customer must also be
able to understand clearly the value they are getting out of the action or purchase that he or
she is making.

5. Satisfaction
• This additional stage which has evolved over a period of time and has expanded AIDA to
AIDAS addresses the retention of the customer after the purchase decision through the selling
process, after-sales service, quality of service, etc.
• It is often the most ignored yet important stage. The overall success of any marking or sales
campaign is dependent on how well the customer is served and satisfied over a period of time.
• Because no matter how powerful you design your AIDAS communication next time, the
customer will only remember the last purchase experience.
‘Right Set of Circumstances’ Theory of Selling
• This theory, sometimes called the ‘situation-response’ theory may be summed up by the
statement “Everything was right for that sale”. It holds that the particvular circumstances
prevailing in a given selling situation cause the prospect to respond in a predictable way.
• The major emphasis of the theory is that a particular circumstance prevailing in a given selling situation will cause the prospect to respond in a
predictable way. Sales personnel try to apply this theory; although they experience difficulties in many rightful selling situations as it cannot be
manipulated. The set of circumstances includes external and internal factors which the salesperson tries to create favorable for getting desired
response from a given situation. 

• If the salesperson succeeds in securing the attention and gaining the interest of the prospect,
and if he presents the proper stimuli or appeals, the desired response, that is the sale, will
result. The more skilled the salesperson is in handling the set of circumstances, the more
predictable is the response. This is a seller-oriented theory: it stresses the importance of the
salesperson controlling the situation. It does not handle the problem of influencing factors
internal to the prospect, and fails to assign appropriate weight to the response side of the
situation response interaction
 FAB
• FAB Model: Features - Advantages - Benefits
• The FAB Model helps you understand the reason why the customer buys your product or service.
FAB model elements
The FAB model can help you to focus on your customer´s needs. It will help you look at your service or product from three
angles:
1. Features – facts about the product/product label
2. Advantages – what are the advantages to the customer of using your product or service?
3. Benefits – what personal benefits does the customer get from the purchase?

By asking questions to your customers, you can find out which advantages and which benefits are important for individual
customers. The basic knowledge for your business model.
• FAB example: Washing Machine
1. Features  If you are selling washing machines the features of a washing machine are 120 high by 85 cm wide, color:
white, can wash 7 kg. Spin speed is 1600 RPMF

2. Advantages It is a standard sized washing machine so it fits in your bathroom and the color match other bathroom
interior. The cloth is very dry when it spins with 1600 RPM

3. Benefit Installing a washing machine give more free time for the housewife, time you can spend together or A
restaurant owner saves the time an employee had to wash the table cloths by hand, time that now can be used to
clean the kitchen properly.
 FAB statement
• “Our sleeping bags have a 1 inch layer of
insulation on them. This helps to retain body
heat on cold nights. You’ll be warm all night.
Which means that you’ll get a great sleep and
be well rested for a day of fun activities (that
you’ll fully enjoy!).”
 SPIN selling
Researchers found that successful reps handled the investigating stage differently. Rather than focusing on asking
open and closed questions in large sales, they asked four different types of questions in a sequence. These
successful reps’ investigating questions can be described as the SPIN sequence, which is explained in detail
throughout this summary. Here’s an overview:
 SPIN selling examples…
• SQs- How many people do you employ at the location?
How many customers do you have in your database?
How many customers do you call in a day?
• PQs- What makes the task difficult?
What is the biggest problem company faces while
managing its most valuable customers?
• IQs- What are the potential loss if customers demand are unmet?
What happens when customers report a grievance on
social media?
• NQs- How do you think a better CRM will help you?
Why is it important to have more positive social media
presence?
 Buying Formula Theory of selling
• It is a schematic representation of a group of
responses arranged in psychological sequence
• This emphasizes the prospect’s response
which are influenced by internal factors more
• It lays emphasis on the understanding the
buyers thinking process to arrive at a decision
(Buy/not buy)
• The buyer’s needs or problems receive major attention, and the salesperson’s role is to help the buyer to
find solutions. This theory purports to answer the question: What thinking process goes on in the
prospects’s mind that causes the decision to buy or not to buy? The name “buying formula” was given to
this theory by strong.
• The theory is based on the fact that there is a need or a problem for which a solution must
be found which would lead to purchase decision, as shown below:
• Whenever an individual feels a need, he is said to be conscious of a deficiency of satisfaction. The solution
will always be a product or service or both and they may belong to a producer or seller. The buyer
develops interest in buying a solution.

In purchasing, the “solution” involves two parts:

• 1. Product or service or both,
• 2. The brand name, manufacturer or the salesperson of the particular brand name:
• The product or service (Brand name) must be considered adequate to satisfy the need and the buyer must
experience a pleasant feeling or anticipated satisfaction. This ensure the purchase.
 Quiz time
Where should the emphasis be placed (BFT)?

S.1. If the prospect does not feel a need or is unable to

recognize a problem that can be satisfied by a
product/service (Need)
S.2. If the prospect does not think of the product or
service when he feels the need or recognizes the
problem(Product)
S.3. If the prospect does not think of the brand when he
thinks of the product/service(Pur)
 Some more…
Where should the emphasis be placed (BFT)?

S.4. If need, product & brand are well

associated(Purchase)
S.5. If competition is felt(Purchase)

S.6. If sales to new prospects are desired(need)

S.7. if more sales is desired from existing
customers(Product)
 What is Missionary Selling?

• Missionary Selling is a form of indirect selling in which a salesperson tries to give information
about the particular product to a prospective customer or decision maker who has an influence on
the buying decision rather than directly selling the product. This is used to convince a person who
has never used a product to buy it.

• Definition: Missionary Selling is a form of personal but indirect selling in which the salesperson tries
to provide information about given products to an individual who has an influence on the buying
decision. In other words, the sales person tries to create missionaries to spread the word on behalf
of him. A typical example is in pharmaceutics were medical products are not sold directly to
patients, but indirectly by "detailers" providing doctors and similar medical practitioners with
brochures and scientific test results containing information about the product who then determine
whether they will prescribe the medicines to their patients.

• A missionary salesperson is often referred to a detailer. Missionary sales are common in technical,
pharmaceuticals, text books, life insurance and other financial products. Technical organizations
depend on system specialists to be their mystery sellers. These specialists generally work with
customers to identify and solve their technical and operational issues while providing them
information about the products which might solve these problems. Similarly salespersons of
textbooks target professors by giving them free samples of books who in turn might recommend
their students to purchase the same
 SNAP selling
• SNAP Selling was first mentioned in  ”SNAP selling;
Speed Up sales & Win More Business with today’s
Frazzled customers”
A bestseller written by Konrath in 2012. The 3 decisions
upon which SNAP sales process is based are;
• Do I allow this person, Is it worth the time?
• Is the idea worth it in terms of adding to my workload?
• Is working with the organization is best use of my
resources?
 SNAP rules
• Keep It Simple
• Be Invaluable
• Always Align
• Raise Priorities
 Negotiations

• Negotiations is a social process through which

interdependent people with conflicting interest

determine how they are going to allocate resource or

work together in the future.

• Give some current examples of negotiation?

 When people negotiate
• We negotiate when we believe we can achieve
more by working with each other than by
working without them
• When both parties are willing and able to
adjust their difference
• We negotiate with someone when we need
their co-operation & we cant command them
to do the work
 Negotiation Strategies
There are basically following two types of negotiation
strategies;

• Distributive negotiation/zero-sum/win-lose
• Integrative negotiation/collaborative/win-win
video; orange
 Distributive Negotiation
• In this situation negotiator adopts extreme position,

• Here negotiation is considered as a process of distributing a fixed pie. Distributive negotiation is the

process of dividing up the value pie during negotiations. Distributive negotiation can be thought of

as haggling.

• Possible out comes are Win-Lose, No agreement:

Distributive negotiations are based on the idea that one party’s gain means the other party’s loss. In

other words, your goal is to negotiate in such a way that when you reach an agreement, you have given

up less than the other party. Your goal is to win as much as you can during the negotiation. Typically,

that means that the other party has to give up something.

• Self interest dominated & relationship ignored

•  In distributive negotiations, the seller frequently makes a ridiculous claim about the value of what

they are selling and the buyer makes an equally ridiculous low-ball offer. Then the two parties

compromise their way to some middle ground

 Integrative Negotiation
• It is generally called Collaboration based or Principled negotiation
• Instead of sharing the fixed Pie it believes in value enhancement (expand the Pie)
• It focuses on underlying interest of both the parties
• Aims at establishing mutually beneficial long term relationship
• It is based on the Win Win perception
• Integrative negotiation—also called integrative bargaining, interest-based
bargaining or win-win bargaining—is a negotiation strategy in which the involved
parties work together to find a solution that satisfies the needs and concerns of
each. This process often involves group brainstorming and creative thinking for
individuals to suggest different ideas that benefit both parties.
• Compromising and bargaining is common in integrative negotiation, and both
sides may need to give up certain needs to reach a solution. Honesty can also
promote successful integrative negotiation because it can lead to a comprehensive
understanding of the issue and what each party needs to be satisfied with the result
• How to use integrative negotiation in the workplace
1. Outline each party’s needs
2. Identify common goals
3. Brainstorm multiple solutions
• Bridge solutions
• Bridge solutions are where both parties create new
ideas to agree on instead of the original ones they
presented. This process works by both sides listing
their needs and wants and then everyone thinking of
different ideas that meet the requirements of each side,
which can make both parties feel like they’re working
together to come up with a mutual solution.
How people negotiate (Dual concern Model)
 Dual Concern Model

• 1. The avoiding style, which represents a low level
of concern for both self and other;
• 2. The dominating (or competing) style, which represents a high lev
el of concern for self and a low level of concern for other
• 3. The obliging (or accommodating) style, which represents a low le
vel of concern for self and a high level of concern for other
• 4. The integrating (or collaborating or problem-
solving) style, which represents a high level of concern for both self
and other
• 5. The compromising style, which represents a moderate level
of concern for self and other
 Components of Negotiation strategy
• Issues
• Positions
• Interests
• Aspiration Levels/ Target points
• BATNA (Best alternative to negotiated agreement)
1. BATNA would give a better understanding of WAP
2. Having a strong BATNA would give you stronger bargaining power
3. WAP would lead to ZOPA
• Analyzing the other party
• Rapport Building & Testing assumption
 BATNA
• BATNA means “Best Alternative to a Negotiated Agreement.” This is your alternate plan when the
talks start to wobble out of control. It can also be your trump card to make the deal happen to
your advantage. Having your BATNA prepared can also enable you to walk away from the deal
altogether.
• Imagine you’ve taken a negotiation training course. From your studies, you know the value of
going into a business negotiation meeting fully prepared. Before arranging the meeting, you set
up talks with two alternative suppliers. These suppliers are ready and able to handle all your
needs.
• When you meet with your preferred supplier, you calmly sit back and allow them to finish their
spiel. Now, you watch the gleam fade from their eyes when you mention some aspect of their
competitor’s offering. You have a BATNA!

Some of the most crucial factors that should be considered include:

• Cost: Ask yourself how much it will cost to do this deal relative to the cost of your best alternative.
Cost estimation may include both short-term and long-term considerations. Figure out which of
your options is the most affordable.
• Feasibility: Which option is the most feasible? Which one can you realistically put into action in
time?
• Impact: Which of your options will have the most immediate positive influence?
• Consequences: Determine the outcome of each option that could be a possible solution.
• Stakeholders: Do you need to win over any stakeholders before being able to move to your BATNA
Zone of Possible agreement (ZOPA)
• Key takeaways:
• The ZOPA, or zone of potential agreement, describes a
theoretical area where two negotiating parties may find
common ground.
• The ZOPA can only be determined and negotiated upon if
both parties understand their BATNA and bottom line.
• The ZOPA is an integrative negotiation that involves both
parties making trade-offs around shared interests. In a
somewhat adversarial distributive negotiation, the ZOPA
may only be reached by splitting the total value in half.
 The ZOPA in integrative or distributive
negotiations

Integrative negotiations
• Integrative negotiations involve the creation of value, otherwise known as “enlarging the pie”.
• This occurs when both parties have shared interests and can make trade-offs on certain issues
to create mutual value. Here, the ZOPA allows both parties to “win” by walking away with a
different piece of the same pie – even if neither walks away with everything they originally
wanted.
Distributive (competitive) negotiations
• While integrative negotiations seek to enlarge the pie, the focus of distributive negotiations is
the dividing of a pie of fixed size.
• In this scenario, it is much more difficult to find a mutually acceptable solution because both
sides want to claim as much of the pie as possible. Unlike an integrative negotiation, there is
no ZOPA where interests overlap. It is very much a zero-sum game, where one party must lose
so that the other can win.
• Ultimately, the only way that distributive negotiations can be successful is by splitting the pie
down the middle. Using this ZOPA, each party wins half of what they wanted and loses the
other half.
 Closing of sale
• Researches have proved that sales are lost
because salespeople fear asking for the order.

• Sales Closing has evolved phenomenally ever

since the tradition sales time.

• Closing the sale is relatively easier when you look

at the value proposition from a prospects point of
view
The six step presentation plan

Approach

Need Discovery

Presentation

Negotiations

close

Servicing the sale

• Step one is the approach. This is where the seller will review his
selling model and then initiate customer contact. Customer contact
can be via the telephone, at the consumer’s house or it could be a
customer in a store in which you will try to sell a product or service.
• Need Discovery: People buy things because they need something, if
they do not need the product, there will no reason for them to buy it.
This can have challenges, especially in emerging markets where
needs are so drastically different. Electronics companies would have
problems selling computers to a country like India or Africa, where
electricity is not as widely used. 
• Presentation is the next step of the presentation plan and is a
crucial one. This is where the seller can engage the potential buyer
with the product or service, this is the moment to wow them Once
you have found a buyer, tested out their needs, it is time to show them
you can fulfill it. This can be a powerful step to eventuate the sale
• Negotiations is the next step, this is when the deal is ironed out Prices
and extras are negotiated to ensure that both parties are getting what they
want. The best result of negotiations is a win-win opportunity. The needs
have been assessed and the prefect product is found to satisfy the need.
• Close is the fifth step of the process, finalizing the sale. This is when the
deal has been struck, finally! If the seller has not messed up the first four
steps, they will make a sale. If the product is immediately available it will
exchange hands with the payment, or the product may need to be ordered.
This is when the seller asks how many of something a person wants.
• The final step of the presentation plan is servicing the sale. This could
mean anything, but mainly refers to any activity that is needed to end the
sale, as well as any activities after the sale. Some products may need to be
delivered if ordered. Other products may have to be installed for use or the
use may need to be taught if it is a complicated product. There should also
be a check-in after the fact of sale, to make sure that the product is
satisfying the need, as well as looking for openings to sell more products
or the same ilk or different/new products that are being offered by the
company.
 Buyer’s Remorse
Gene Bedell, author of “3 Steps to Yes”, reminds us that buying
often causes emotional stress known as Buyer’s Remorse.
Buyer's remorse is the term given to the feeling a person often
gets after making a large purchase. Although excited at the time
of the purchase, once they've spent a lot of money, many people
feel a deep regret and concern that they made the wrong decision.
The following buying anxieties help explain why some customers
are reluctant to make a commitment to your proposal;
• Loss of options
• Fear of making a mistake
• Social or peer pressure
 Guidelines for closing the sale
• Focus on dominant buying motive
• Longer selling cycles & incremental
commitments
• Negotiating the tough points before
attempting the close
• Avoid surprises at the close
• Display a high degree of confidence
• Ask for the order more than once
 Recognizing closing clues
Also called Buying signal, A closing cue is an
indication, either verbal or non-verbal that the
prospect is preparing to make the buying decision.
When one detects a closing clue it is time that one
tries to attempt the close. There are 2 types of
closing clues;
• Verbal
• Non verbal
 Verbal closing clues
• These may be in the form of;
1. Questions
e.g. Do you have a credit plan to cover this purchase?
How soon can our co. get delivery?
What type of warranty do you provide?
2. Recognitions
e.g. Will this study package be as comprehensive as you are
claiming?
Will this purifier do all the things you say it will?
3. Requirements
e.g. “We will need shipment within 2 weeks”
“Our staff will need to be trained on how to use this shipment”
 Non verbal clues
• They are difficult to detect;
e.g. The prospects facial expression changes
The prospect begins showing agreement by
nodding
The prospect leans forward & appears to
be intent on hearing your message
 Questions
• Which of the following questions often asked by prospects you
would consider as buying signals;
“How much would the payment be?”
“Tell me about your service department.”
“The company already has an older model that seems good
enough”
“we do not have enough cash flow right now”
“How much will you allow me for my old model?”
“I do not need one”
“How does that switch work?”
“When would I have to pay for it?”
 Different sales closing techniques
“ You don’t close a sale, you build commitment to a course of action that
brings value to the customer and profit to the seller”
Tom Reilly, Value added Selling book
Different methods of closing sale are as under;
1. Trial close
2. Direct appeal close
3. Assumptive close
4. Summary of benefits of close
5. Multiple option close
6. Management close
7. Impending event close
8. Combination close
 Trial close
A trial close is a closing attempt made at an opportune time during the presentation to find out prospects
willingness or lack of interest.
• he trial close is the most popular closing technique used by sales people. It is commonly used to test the buyer’s
intent and can be used at any stage of the sales process to ensure that you’re on the right track to winning the
deal.
• Here are some examples:
• “Does everything we have talked about today satisfy your needs?”
• “If we can overcome this issue by lunchtime, would you be prepared to sign the contract?”
• “If we satisfy that requirement, would you be willing to commit your resources to making the deal go ahead by
the end of this month?”
• Use a trial close to check that you’re meeting the buyer’s needs, that they have no  objections and that they’re
willing to commit to taking the sale forward.
• With this technique you should be looking for a green light from the prospect to enable you to move on to the
next stage of the sale.

e.g. “Looks like you are enjoying it”

“Is it going under your name or company’s name?”
“will a $ 2000 down payment be possible at this time?”
“Is the timing right to do a presentation to the executive committee?”
 Direct appeal close
• This technique has the advantage of clarity and simplicity. This involves
simply asking for the order in a straight forward manner. The important
points to consider while applying this method are;
1. Direct appeal close should not come too early
2. It should be attempted only when the prospect has shown definite interest
3. It should be attempted only after prospects doubts and concerns have been
clarified
• Examples:
• “Can I ask you to sign the order today?”
• “Now that everything is agreed, will you commit to signing the contract right
now?”
• Be cautious if you intend to apply a direct close. The prospect may view your
confidence as misplaced and could quickly stereotype you as just another
pushy sales person.
 Assumptive close
• This method usually takes the form of a question that focuses on a minor decisions assuming that the
prospect has already decided to buy. This comes near the end of the planned presentation
• If the sales person has identified the need of the prospect, presented the solution in terms of buyer
benefit, presented an effective sales demonstration & negotiated the buyers concerns satisfactorily, it is
natural to assume that the prospect is ready to buy.
• The Assumptive Close is a closing technique used by sales people to act as though the prospect has already
decided to go ahead with your solution or is ready to move to the next stage of the sales process. It is best
applied when the prospect has clearly bought into your solution and declared their need for your solution.
Examples of an Assumptive Close:
• “So when shall we deliver this solution to you by?”
• “What will your competitors think when you implement the solution?
• “I’ll send the contract out now for you to sign and get back to me today. Is that okay for you?”

• This closing technique enables the mindset of the prospect to shift from their needs and desires to the
benefits and advantages they will enjoy once they implement your solution. But be aware, this close should
only be used once you’ve received a verbal agreement from your buyer and you’re just tying up loose ends.
• Similarly to the Direct Close, you should be highly confident that you have satisfied the buyer’s needs and
that they’re ready to move to the next stage of the sale before applying this type of closing technique
 Summary of benefit close
• This method reemphasizes the benefits that can bring about the
decision & how those benefits will outweigh the cost.
e.g. Mr. Terry, Sales Manager of Hotel Corporate, recently called on Mr.
Prashant Sharma, GM-HR, Reliance Industries, Near the end of the sales
presentation Mr. Terry summarized the major benefits & buying
conditions in this manner;
“Mr. Sharma, we can provide you with a conference room that will seat
200 people comfortably & 4 smaller rooms for the workshops you have
planned, our staff will serve them lunch & the cost will be Rs. 450 per
head. Finally we will make sure that each of your employees receives a
pad of paper, a pen & a copy of the conference program. Today I can
reserve these facilities for Nov. 24th which is your preference for the
conference. Can I go ahead & enter your reservation into our computer?”
 Special concession close
This method offers the buyer an extra incentive
for acting immediately such as sale price,
quantity discount, liberal credit plan, an added
feature that the prospect dint expect.
This method should be used with care
 Multiple option close
• This method allows the prospect to examine several different options & try to assess the interest
level in each of the options. While using multiple option close following steps should be followed;
1.Configure more than one product solution
2.Cease providing more product options when its clear that the prospect has got enough options
3.Remove products (or features) that the prospect does not seem to be interested in and
concentrate on options that would interest him
• The Alternative Close can be a powerful closing technique, particularly if you sense that the
prospect is not satisfied with the solution that you intend to offer them.
• Examples of an Alternative Close:
• “Do you want the contract to contain the first or the second option when we sign today?”
• “Which of these three solutions works best for you?”
• “Shall we proceed to the next stage of the sale this week or next week?”
• A lot of buyers like choices at the point of sale. The Alternative Close provides them with other
options when they show signs of discontent with the solution that is initially proposed. Alternative
options could be offered in the form of added value or an entirely separate product that is shaped to
meet their specific needs. But remember, most prospects don’t like to be presented with too many
choices so use your judgement to get the balance right.
 Balance sheet close
• This method is being resorted to when the prospect is still confused even after sufficient information is being
provided to him. The salesperson draws a T on a sheet and places the captions on each side of the cross bar.
• The Balance-sheet Close works by building Trust through appearing to taking a balanced and fair approach. It
guides the other person's thinking and hopefully saves them the trouble of weighing up the pros and the cons.
• This is also known as the Abraham Lincoln Close (Lincoln was a lawyer and often used this technique in his
cases) or the Ben Franklin Close.

Technique
• List both the benefits of the purchase (the pros) and also the costs (the cons). Of course, the pros (the reasons
to buy) will win.
• You can even write it down like a balance sheet. Make sure the 'pros' column is longer and more impressive, of
course.
• Cons include things they wanted but are not getting.
• Start with the cons and keep them short. But do make it sound credible, as if you are giving them fair
consideration.
• Then cover the pros. Perhaps sound pleasantly surprised as you describe them.
• Sound reasonable, as if you are on their side.
• Sound almost as if you are talking to yourself.
 Management close
• This method calls for higher management to
help to close.
e.g. A cluster head going along with relationship
manager to close the deal
 Impending event close
• This method makes positive use of a negative point to attempt close.
• The Impending Event refers to the sales closing technique that uses a deadline or a time-
limited opportunity to close the business if the client can make a quick decision. Maybe you
have a new model coming out next month that changes one of the features the client likes or
there was a cancellation in the install schedule that presents an opportunity for a new
customer to jump ahead in line.
• This close requires care because if the impending event serves you or your organization better
than the prospect, it won’t be effective and could jeopardize the close altogether.

An Impending Event Close might sound like this:

• “I just found out that one of our other accounts had to push back their install a month. We have a
spot in our schedule for the team to come to install the new widgets next week instead of in six
weeks as I told you before. Should I get you on the schedule?

e.g. “As you know, our product does have several advantages over the competing products. I also want
to share with you that we cant make delivery before the middle of next month (negative point) due to
high demand (positive usage). However since you are not looking for the delivery until the end of next
month, so if you place the order today delivery wont be a problem”
 Combination close
• In many cases the most effective close is a combination
of several methods;
e.g.” Mr. Anand, we have discussed several benefits that
seem specially important for you, first you will agree that
this line will be popular among fashion conscious
customers your store caters to, second you quoted that
the prices we are offering will allow you excellent profit
margin & third if we process your order now you will get
the merchandise for the pre festival buying period. With
this in mind, lets go ahead & process your order today”
 Closing examples
• Clue-1 That sounds fine
• Clue-2 What kind of financing do you offer?
• Clue-3 well we don’t have large amount of
cash available at this time
• Clue-4 The prospect completes reading the
proposal & has a look of satisfaction