SELLING SKILLS AND SELLING STRATEGIESMODULE - 2

SELLING SITUATIONS 1,1 take it or leave it 5,5 sales technique oriented (personality and product) 1,9 people oriented (personal bond) 9,9 problem solving oriented 9,1 - push the product oriented (pressure selling) X axis concern for sale Y axis concern for customers

C o n c e r n f o r c u s t o m e r

1,9

9,9

5,5

1,1

9,1

Concern for sale

SELLING SKILLS1. 2. 3. 4. 5. Communication skills Listening skills Conflict management and resolution skills Problem solving skills Negotiation skills

1.COMMUNICATION SKILLS Trust between buyer and seller is essential and it depends on Truth of words communicated by the salesperson. Predictability of action. Competency (ability, knowledge, resources) Empathy. Likeability.

1.COMMUNICATION SKILLS CONTD The communication Process Managing Body Language Personal appearance Posture Gestures Facial expression Eye contact Space distancing (personal space)

2.LISTENING SKILLS Listening is an active search of meaning in the message received.

2.LISTENING SKILLS Process of listening Attention Interpretation Remembrance Evaluations Response action

2.LISTENING SKILLS Levels of listening Feedback Paraphrasing Clarifications Empathetic listening Active listening

2.LISTENING SKILLS Barriers to listening Listening defensively self centeredness Selective listening Etc.

3. CONFLICT MANAGEMENT SKILLS Due to boundary spanning nature and conflict of interest in sales job, conflicts are common. Perceived threats could be real or imaginary.

3. CONFLICT MANAGEMENT SKILLS Conflicts can be classified into Functional conflicts supports the goals of the group and improvesits performance.

Dysfunctional conflicts it hiders the group performance. Task conflicts disputes over the content and goals of the work. Relationship conflicts issues based on interpersonal relationships. Process conflicts fight over how work gets done.

3.CONFLICT MANAGEMENT CONTD MODELS OF CONFLICTS Dollard and Millar Model Kinds of conflict Approach-approach both options for resolving a situations areattractive but mutually exclusive.

Approach-avoidance when a person wants a outcome but mustnot have it for equally compelling reason.

Avoidance-avoidance one dislikes all the options equally but hasto decide on one of them.

3.CONFLICT MANAGEMENT CONTD MODELS OF CONFLICTS Rummels Model Components of conflict are Conflict structure interests that have tendency to oppose eachother

Conflict situations when opposite interests, attitudes, or powersare activated.

Manifest conflict it means specific behaviour or action by oneparty.

3.CONFLICT MANAGEMENT CONTD Components of conflict Interests what motivates people. Emotions feelings Values

3.CONFLICT MANAGEMENT CONTD The conflict resolution process Potential opposition or incompatibility Cognition and personalization Intentions Behaviour outcome

3.CONFLICT MANAGEMENT CONTD Methods of Conflict Resolution (intention) Competing each party pursues his own interests, regardless of the impact on the other party. Collaborating both parties in a conflict try to satisfy fully the concerns of both parties. Avoiding one party withdraws from the conflict. Accommodating one party agrees to place the opponents interests above its own. Compromising both the parties agree to give up something.

3.CONFLICT MANAGEMENT CONTD Nadar and Todd identified following eight procedures usually used to handle conflict

Lumping Avoidance Coercion Mediation

Conciliation Arbitration Adjudication Negotiation

4.NEGOTIATION SKILLS Successful negotiation always ends in win-win situation. Negotiations involve bargaining. Bargaining means an activity which involves the presentation of demands or proposals by one party and evaluation of those by the other, followed by concessions and counter-proposals.

4.NEGOTIATION SKILLS CONTD. Situation and Timing for Negotiations should be appropriate. Formulate a Bargaining Strategy. Strategy of principled negotiations. Separate the people from the problem. Focus on interests, not on positions. The common sources of difference between the two parties are Risk Timing Perceptions Marginal value

4.NEGOTIATION SKILLS CONTD. Invent options for mutual gains. Insist on objective criteria. The selling process understand the process of selling and place of negotiations in closing the sale.

AIM OF NEGOTIATIONS The purpose of a negotiation is to produce better results than one would have got without negotiating. The result is known as Best Alternative To a Negotiated Agreement. (BATNA) BATNA is the standard of comparison that can protect the sales person from accepting unfavourable terms and rejecting favourable terms.

NEGOTIATION TACTICS1. Acting crazy 2. Auctioning 3. The good guy-bad guy routine 4. Big pot 5. Budget bogey 6. Get a prestigious ally 7. Escalation 8. The well is dry 9. Limited authority 10. Whipsaw/ auction 11. Divide and conquer 12. Reunion

NEGOTIATIONS TACTICS13. Deadline 14. Sticks and stones 15. Get lost / stall for time 16. Take it or leave it 17. Wet noodle 18. Veiled threat 19. Lets split the difference 19. Play the devils advocate 20. Trial balloon 21. Surprises 22. Whats the rock bottom price 23. Adversarial negotiating tactics

5. PROBLEM SOLVING SKILLS Sales persons roles as a problem solver and consultant to the customer are very important in high-tech selling and business to business selling.

Effective salesperson must develop mindset and habits which will help them to handle difficult situation. Be proactive Begin with an end in mind Put first things first Think win-win

Seek first to understand, then to be understood. Synergize renewal

PROBLEM SOLVING AND THE PARADIGM PIONEERS There are various methods to solve the problems. Many thinkers have developed scientific processes to solve the problem. Sales manager can use HEURISTIC or PARADIGM SHIFT to solve the problem Effective problem solvers are paradigm pioneers with a vision and an action plan to arrive at that goal

THE PROBLEM SOLVING PROCESS

1. 2. 3. 4. 5.

Define the problem Generate alternative solutions Decide the solution Implement the solution Evaluate the solution.

1. DEFINE THE PROBLEM Identify the problem Different ways of defining the problem Find out origin of the problem. Explore the problem. Present- desired state analysis. Dunkers diagram. Statement and restatement. Evaluate problem statement.

2. GENERATE SOLUTIONS Problems in generating various solutions is mental block Mental blocks can be of Perceptual blocks Emotional blocks Cultural blocks Environmental blocks Intellectual blocks Expressive blocks

3. DECIDE THE SOLUTION (COURSE OF ACTION) Logical analysis of each alternative helps in arriving at a solution. Prioritizing the problems. Selecting the best alternative. Decide on successfully implementing the solution.

3. DECIDE THE SOLUTION (COURSE OF ACTION)KEPNER AND TREGOE MODELSituation Analysis (Where we are now)

Problem Analysis PAST (What is the fault?) Decision Analysis PRESENT (how to correct the fault?)

Potential problem analysis FUTURE (How to prevent future Fault?)

4. IMPLEMENT THE SOLUTIONDecision on the best solution I M P L E M E M T A T I O N

Approval Planning

Carry through Follow up

Evaluation

THE SELLING PROCESS

Pre-sale preparation

Prospecting

Pre-approach Before the Interview

Follow up Action

Approach the Customer

Closing The Sale

Handling the Customer Objections

Sale Presentation

1.PRE-SALE PREPARATIONPRODUCT KNOWLEDGEFeatures Benefits Styles Origin price

COMPANY KNOWLEDGEHistory Finances Management Size Policies and procedures

COMPITITORS KNOWLEDGEIndustry Structure Market share Market behaviour Other policies

Sales Persons Knowledge

2.PROSPECTING Prospecting is the process of identifying potential buyers who have a need for the products and services offered by the company, the ability to pay for it, and the adequate authority to buy it. Sales person should distinguish between prospect and suspect.

2.PROSPECTING CONTD Salesperson identifies three sets of customers Lead customers need & desire is there but no buying capacity. Prospect customers demand for the product & can get substantial benefit through the acquisition of the product. Salesperson should move up to the higher level in the decision making process. Qualified customers are the customers who have the need & money but need persuasion.

2.PROSPECTING CONTD The process of prospectingIdentify and define the prospects

Search for sources of potential accounts

Qualify the prospects from the suspects

2.PROSPECTING CONTDMethods of prospecting

1. Cold canvassing 2. Endless chain customer referral 3. Prospect pool 4. Centres of influence 5. Non-competing sales force 6. observation

7. Friends and acquaintances 8. Lists and directories 9. Direct mail 10. Telemarketing 11. Trade shows and demonstration

3. PRE-APPROACH BEFORE SELLING Checklist for Pre-approach Information1.What is size of the business? 2.What product lines do they sell and what markets do they serve? 3.Who are the responsible executives and key personnel in the company? 4.What are the buying routines and procedures followed in the client organization? 5.Who is the competitor in the competitor segment?

3. PRE-APPROACH BEFORE SELLING CONTD6. 7. 8. 9. Do they have business dealing with your company? From whom are the customer buying now? What are the levels of volumes possible? Where, when, why and by whom will the products be used?

10. What are the prospects of developing future sales from the client?

4.APPROACH TO THE CUSTOMER This is the first time sales person comes into contact with the prospect. He has to fix the appointment. While fixing the appointment, salesperson can use various approach referral, recommendation, physical elements of the product, focus on the company etc.

5.SALES PRESENTATION Two way communication. Sales person try to link the product features with the customers needs. Sales presentation should always be made keeping level of customer interest in mind.

5.SALES PRESENTATION CONTD Process of sales presentation Attracting customer attention. Creating interest. Arousing desire and building conviction.

Methods of sales presentation Oral presentation Written communication

5.SALES PRESENTATION CONTD

Categories of sales presentation Canned presentation Organized presentation Tailored presentation

5.SALES PRESENTATION CONTD Qualities sales person should display during presentation Tangibility Assurances Responsiveness Reliability Empathy

6. HANDLING CUSTOMER OBJECTIONS Objections are the reasons for not buying. Objections halt the selling process. Objections are raised because customer is not aware of products ability to deliver desired benefits.

6. HANDLING CUSTOMER OBJECTIONS CONTD.... Methods of handling objections Superior feature method Yes but method Reverse English Method Indirect denial method Pass out method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or why method

7.CLOSING THE SALE Closing the sale is the goal of the selling process. Method of closing the sale Assumptive close Negative close Caution method Special induced method Direct order method Ownership suggestion method Emotional method

8. FOLLOW-UP ACTION Objectives Generate additional leads from satisfied customers. Cross-selling and upselling Maintain goodwill After sales service etc.

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