Selling & negotiation skills

BYPROF. RAHUL JADHAV & PROF.

PRASHANT CHAUDHARYSINHGAD SCHOOL OF BUSINESS

STUDIES, PUNEFOR

VISHWAKARMA PUBLICATIONS (www.vpindia.co.in)

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2Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications

An art of persuading the customer to believe that purchase of the product or service will actually benefit him or her.

It is the art of closing the deal.

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Flow of products, services & information from seller to buyer in exchange of money.

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications

The MarketingMarketing concept holds that the key to achieve the organizational goals consist of company being more effective than competitors in creating, communicating and delivering customer value to it’s chosen target market.

Marketing shows how to reach to the Customers and build long lasting relationships.

The SellingSelling concept holds that customers and businesses, if left alone will ordinarily not buy enough of the organization’s products. The organizations must therefore, undertake an aggressive selling and promotion effort.

Ultimate result of marketing is selling.



Modern sales manager have to play the role of a Team Leader in implementing strategic plans -By giving key inputs for developing long

term sales plansSales forecastingSales force managementEvolving sales & marketing strategiesBuilding long term relationship with key

clients



The key to the entire selling concept is effectively understood when, where to dig & what to look for, is identified.

Finding prospects from different sources and out of diverse options available is called as suspecting

Suspecting of prospects can be done through:- - Blogs - Social

Networks - Partner sites - Yellow Pages - Industrial directories - Telephone

Directories


A prospect is an individual or organization who seeks the product or service a sales person offers with an ability to pay for the same.

Prospecting is process of segregating individuals or organization from the suspecting list who have actual requirement of the product or service and who are able to buy that product or service.

How to reach prospects: - Direct phone calls - e-mail - Direct mail - Search marketing


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Identification of major buying motive that generally a prospect has appeal for.

conveyed sincerely

and subtly


The details of the product are communicated to the customer

AIDA- Formula Gaining Attention Holding Interest Arouse Desire Obtaining Action


Features Advantages Benefits Value


Psychological Resistance- this includes interference, preference for established brands, reluctance to give up something,

pre-determined ideas etc.

Logical Resistance- objection to price, delivery schedule, product features etc.

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Two kinds of Resistances


Listen Agree/ restate without

any prejudice Get clear about the real

issue Discuss solution Ask for commitments


Non verbal Yes’s Summarize Execution Successful sales people

turn today’s customers into tomorrow’s by reinforcing the purchase decision.



Product Selling Service Selling


Product selling Vs Service selling

(tangible Vs intangible)

Intangibility is one of several unique challenges in selling a service versus a product. Consumers buying a service can’t kick the tires- visit an accountant, dress designer, interior designer, lawyer, and hairdresser and so on – you can’t try out the service before you buy it.

Service Selling- #1 Strategy- focus on customer need #2 Strategy- focus on your expertise #3 Strategy- focus on value

There are 6 stages to selling the service successfully


Mc Murry & Arnod’s Classification of Selling

Derch Newton Classification of Selling Consumer Indirect Selling Industrial Selling Group Selling- Telesales Franchise Selling International Selling Concept Selling

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DIFFERENT TYPES & CLASSIFICATIONS OF SELLING


Group A (service sellingGroup A (service selling):-):-

1) Inside order sales- a salesperson who writes up sales orders at a sales counter, or those forwarded to the company by telephone, but is not required to sell persuasively to customers.

2)Delivery sales- mainly engages in delivering the products.

3)Outside order sales- works on the actual field and sells goods or services by meeting the prospective customers & closes the deals.


4) Missionary Sales- Missionary Sales- A missionary type of sales job involves convincing someone who has never used a product to buy it.

5) Technical sales- Technical sales- emphasizes the technical knowledge; the engineering sales person, who primarily acts as a consultant to the client companies/ customers.


Group B (Developmental sellingGroup B (Developmental selling) :-) :-1) Creative selling (tangibles) -

selling creative content to the client which is tangible. For ex- interior designers, architects, painters.

2) Creative selling (intangibles) - selling the contents which are creative but intangible in nature. For ex- advertising agencies.


Group C- (Basically developmental selling but requiring

unusual creativity) :-

1) Political, indirect, or back door sales person- Sells big ticket items particularly commodities

or items with no truly competitive features. Sales are consummated through rendering highly personalized services (which have little or no connection with the product) to key decision makers- In customer organizations;


2) Multiple sales - involves the sales of big ticket items

where the sales person must make presentations to several individuals in the customer’s organization, usually a committee, only one of which can say “yes” but all of whom can say “no”; for ex. An account executive of an advertising agency who makes presentation to the agency selection committees of advertisers- even after the account is obtained, the sales person has to work to retain it.


1) Trade Selling- Selling products to wholesalers and retailers for resale

purposes. Trade Show- an exhibition or fair at

which manufacturers display their

products for the benefit of visiting wholesalers

and retailers.

2) Missionary selling

3) Technical selling

4) New business selling



Indirect selling is employed when a manufacturer markets his products through another firm that acts as the manufacturer's sales intermediary

Examples of indirect sales methods:- Wholesales- Retailers (supermarkets, department stores,

multiple stores, independent retailers, consumer co-operatives)

- Agents- Distributors and Dealers


Advantages:- Indirect sales can allow a company to increase sales

quickly without having to hire more sales personnel Suitable for overseas market Channel is inexpensive- low per transaction cost Start up cost is less

Disadvantages:- Manufacturing firm has to give up control of marketing

activities to other firm- In some cases, however, indirect sales may lead to

reduced control of the brand message and poorer customer service

Intermediary can easily discontinue handling a manufacturer's product


Industrial Selling (business to business selling) is the selling of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.

Main features of B2B Selling:- This is one to one selling & relatively easy to identify

prospects Highly trained & professional people involve in the

process Buying process is complex & may includes many

steps Long period required for process


A missionary type of sales job involves convincing someone who has never used a product to buy it.

Selling financial planning or life insurance and other financial products typifies the missionary sales job.

The metaphor of a missionary involves educating someone about an idea or concept and convincing them to have faith in that concept.


Selling in a group: It helps you to sell more

One to many: More cost effectiveThe power of groupMany target customers together


Telesales is a process that is followed to generate interest in the products and services that your business offers and is used to provide information to consumers.

Telesales is a service activity that you use to sell your products and services to customers directly over the telephone. In telesales, no further contact is required and the entire selling process, including the payment transaction, can be completed during a single telephone call.

Challenge-"normal" sales presentation involves visual contact, which encompasses body language, facial expressions and other non verbal cues. There is also no time limit to a normal sales presentation allow the customer and sales person to work free of heavy time pressure whereas many telesales roles have an ACD (Average call duration) between 3 and 10 minutes on average.


To succeed in international sales you need to know To succeed in international sales you need to know what you are doing and why. You also need to:what you are doing and why. You also need to: Understand and apply the basics of selling which is

true all over the world. Figure out which buying mode the prospect is in. Identify and focus on real/actual decision makers

and avoid those without approval power. Find an advisor to help navigate through the rough

waters of international sales. Distinguish between good customers and bad

customers. International sales is more challenging because of:International sales is more challenging because of:

Cultural issues Language barriers Government regulations and tariffs


Do researchVisit the land where you are selling productsCheck out competitionLearn the language if possibleFind the people to trustSeek out the niches (Concentrate on small ponds before

reaching to big oceans) Scale your knowledgeStay aware of global trendsTake advantage of stable market



1. They don't think in terms of sales but rather in terms of concreting a business.

2. They listen more than they speak, getting an understanding of the needs of customers and then finding a solution.

3. They build their businesses - one customer at a time and then always influence the last customer into more and more customers.

4. They deliver more than the promise and always promise a lot.

5. They invest their time in those things that positively affect their income and avoid spending time on those things that are irrelevant.

6. They are always in quest of new, better and faster conduct to increase their sales efforts.

7. They are willing to invest in community, relationships building and networking




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Characterized by two or more interdependent parties who have a conflict of interest,and who choose to adress that conflict by striving to reach an agreement through a process of mutual adjustment of each party’s demand and concessions

Behavioral definition of negotiation- The process by which we search for the

terms to what we want from somebody who wants something from us


A dialogue or discussion between two or more people or parties, intended to reach an understanding, resolve point of difference, and/or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two opponents involved in negotiation process.

Process of exchanging offers and counter offers- “exchange of concessions” - for arriving at a compromise by which both parties reach to an agreed positions and outcomes.


Meticulous preparation and planning skillsExpert in forming perceived positive opinionKnowledge of the subject matter being

negotiatedAbility to analyze properly, think clearly and

rapidly under pressure and in the situation of uncertainty

Ability to perceive and exploit powerProfessional communication & soft skillsHas to be a very good ListenerShould possess ability to judge the situation with

general intelligenceAnalytical skills with convincing powerAbility to estimate& evaluate various options

with multidimensional thinking!41Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications

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Red Style

Blue Style

Purple Style


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They believe manipulation is normal and they behave as they believe

Main attitudes:Aggressive IntimidatoryManipulatory


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Looking for both winning of two sides

Main attitudes:CooperativeTrustingConciliatory


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Win-Win Approach“Give me some of what (red style),I

will give you what you want (blue style)”

“Taking while giving”“It is a two way exchange”


Distributive Negotiation- Opponents compete over the fixed sum or value. The key question is who will win the bigger part of the pie. A gain of one party is made at the expense of the other.

Integrative negotiation- The word integrative implies some cooperation and hence often involves a higher degree of trust and the forming of mutually beneficial long term relationship. It can also involve creative problem-solving that aims to achieve mutual trust and gains. For the same reason it is also called win-win negotiation.



BATNA – Best Alternative to Negotiated Agreement

Reservation price: walk away price ZOPA – Zone of Possible Agreement Value creation through trade-offs Real & perceived Negotiating power


Interestingly enough the most important is not the Power itself but how it is perceived.

Power in some sense is similar to beauty that lies in the eye of the beholder.

Another way to put it is, if you are perceived in the position of Power, you have it.



We need to ask our self the following questions Why we entering into the negotiation? What are our objective? Who will we be negotiating with? When will suit us best to hold the negotiations? What should be our choice of style? How high should we pitch our initial demands? What order should we set for offering our concessions &

what else might we be prepared to include? Who do we need to include in our team? What will their

respective roles be? How much time will we need to reserve What assumptions have we made in our planning?


Identify the decision maker from the opposing team.

Formalize your objectives in terms of priorities

Establish what their objectives & priorities might be


Consider all the variables in the other side’s case & estimate the probable cost to them if they concede any of those to you.

Finally value the benefits of the other side’s variables to you

If both sides are to move from their starting position by trading concessions, the initial offer you open with- must be more favorable to you than where you hope to settle eventually.

Otherwise you will be having nothing to exchange

Hence in setting out your opening gambit, you need to include a negotiating margin & aim high


The more you explore, the less the other side will be able or get opportunity to explore your case or position and hence more you will be able to control the course of the discussion.

In the due course of probing, try to obtain the full

shopping list of items/issues they want to negotiate.

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 54

Deadlock is one of the most counterproductive and undesirable of all the situations and conclusions of negotiation that can result in breakdown in negotiation.

The negotiators should always be alert for its possibilities and try to avoid it.

The only exception is where the negotiator use deadlock as a tactic to galvanize the opponent to take the favourable action.

Breaking the deadlock-A)Try to avoid the immovable positions.B)Bridging the GAP



An excellent negotiation practice/tactic is to: 1) Summarize from time to time, what your

discussion has covered.

2) Probe ambiguities before they become misunderstandings.

It also gives time for new ideas & re-appraisal of old ones.

This acts as a recess.


Golden Rule - Goal commitment not only agreement.

Use a pause in your speech prior to making any offer- between the lines.

If you can meet, accept or deliver the following conditions 1…, 2…, 3…, n…, we will be prepared to consider offering the following: 1…, 2…, and 3…, n….. Our reason for doing so is a…, b…, c…, …z…


Difficult people exist everywhere. They come in every variety and no workplace is without them. How difficult a person is for you to deal with depends on your self-esteem, your self-confidence and your professional skills and courage.

It’s far better to address the difficult person while you can maintain some objectivity, patience and emotional control.

Types of Difficult People-

The “Sherman Tank” The “Exploder” The “Complainer” The "Clam" The “Wet Blanket” The “Know-It-All” The “Staller”


Idea Opponent- An idea opponent

is one who disagrees on a particular issue or alternative on the basis of rational and logical facts.

Visceral Opponent-

Visceral opponent is an emotional adversary, who not only disagrees with your point of view, but also as a human being.


Ethics is a system of moral principles or values.

Typically, these people feel that negotiation is what a salesperson does to get them to buy or try to push off his/her products and services. But this is not the reality. In fact, every one of us negotiates in almost all walks of our day to day life.

There are 9 tips will ensure that you build all your negotiations on the foundation of ethics--which will, by the way, increase your possibility of achieving win-win outcomes

Prof. Rahul Jadhav & Prof. Prashant Chaudhary, Vishwakarma Publications 61

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