MMS - SEM I - Selling & Negotiation Skills

MMS - SEM I

Selling & Negotiation Skills

Overview

Selling

Negotiation

What is Sale

A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.

What is Sale..

A sale is completed by the seller, the owner of the goods.

It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item.

What is Sale.. The purchaser, though a party to the sale, does not

execute the sale, only the seller does that.

To be precise the sale completes prior to the payment and gives rise to the obligation of payment.

If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale is still valid and gives rise to an obligation to pay.

Selling Define selling:

• Selling is identifying good prospects (which means that have a need and desire for a solution that your product or service will give them.)

• Positioning your product or service in the mind of the prospect as the best solution for their available resources.

• Presenting the aspects (features and benefits) of your product or service to the prospect in a way that they see how these solutions will be achieved.

• Answering any unspoken questions (sales objections) during this process and asking for the business. (That’s called closing)

Negotiation

Negotiating begins where selling leaves off. • It is finding those areas of difference or compromise in:

• Features (what they can live without)

• Delivery terms (what they need and what you can give them.)

• Financial terms (again, what they need and what you can allow.) 

• Negotiating is finding a way to reach a meeting point where you and your prospect can agree with each other’s circumstances and still have a win/win relationship.

Why Negotiate? People negotiate to resolve disputes and to make

decisions in teams. When negotiators reach an agreement, resources

are always distributed but the amount of resources available for distribution is not necessarily fixed.

Individuals do not wish to leave decisions that affect them to the whim and fancy, not to mention material benefit, of somebody else.

People's goals are incompatible. People are inter-dependent, but in conflict they

naturally negotiate to try to deal with the conflict.

Where can we use? We are using negotiations in every facet of life even

without knowing. Most producers sell their out put to others and prices

are set for them mainly by negotiation. Customers negotiate passively when they 'shop

around', and actively when they ask for better deal then the one on offer. 

Governments also make political decisions through processes that include negotiation.

Etc..

Selling Vs Negotiation Selling is about developing and maintaining positive

ongoing relationships.

Negotiating can be a one-time issue that only comes up in the beginning of a new relationship or when there are new ingredients added to the relationship puzzle such as a new product introduction, new policies on the part of your organization or your client’s, or when a competitor is knocking on your customer’s door.

Selling Vs Negotiation..

Both skills – selling and negotiating – are necessary if you are to have any degree of career success in sales. 

Which is more important?  You decide.

Negotiation

Benefits of Effective Negotiation

• Conflict Resolution

• Cost Reduction

• Better Relationship

• Competitive Advantage

Roles of Negotiator

Advocate – negotiation is a preferred method of reaching agreement, changing behavior & resolving conflict

Builder – identify & construct the skills needed to make negotiation a core competency.

Practitioner – lead by example.

Steps Involved in Formal Negotiation

Preparation The Initial meeting Recess Follow-up meetings

Preparation

People Involved Subject matter Best alternative Zone of Possible Agreement Desired results

Initial Meeting

State your position Thorough dialogue Determine when & where future meetings will occur Identify items that the other party feels important or

less important

Recess

Access your position relative to other party

Any give & takes to be considered?

Follow-up Meetings

Settle or try for a higher position Collaborative approach Firm style – for a one time transaction

Effective HR Negotiator

Align negotiating goals with organization goals Prepare thoroughly & use each negotiating stage to

prepare further Use negotiating sessions to learn more about issues

at stake, other party’s problems Separate personal Issues from negotiating table

Effective HR Negotiator..

Recognize potential barriers to agreement Know how to form Coalitions Develop a reputation for reliability & trustworthiness

Critical Questions

Think about successful & not so successful negotiations you have been involved in. What distinguished the two?

What aspects of negotiation are you strongest in? weakest? How might you strengthen weak areas?

Think about people in your organization who have the strongest negotiation skills? How do they approach a negotiation? What results do they usually get?