Selling & Negotiation Skills

MMS Semester 1, Total Marks: 100

(as per University of Mumbai)

Prof Purshottam Patil

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Content as per Syllabus

1. Selling Skills- Selling to Customers (Sales Process, Fundamentals of Successful Selling)

2. Conceptual Selling, 3. (Effective Sales Talk) Strategic Selling, Body Language

4. Selling to Superiors

5. Selling to peer groups, team mates & subordinates 6. Types of Negotiations 7. Negotiation Strategies
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Reference Text
Organizational Behavior by Fred Luthans (9th Edition) The Essence of Negotiation- Harvard Business School Press Getting to Yes by Roger Fishes & William Ury

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Selling Skills- Selling to Customers

Successful Sales Professionals v know
How many of us have sold something before?

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Selling Skills- Selling to Customers

Successful Sales Professionals: Born or made?
Customer? Adjectives..

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Selling Skills- Selling to Customers

Is selling tough? Why do people choose a sales career?

Fast Growth? Challenging/ dynamic / learning? Money? Entrepreneur?

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Selling Skills- Selling to Customers

Why selling is required to customer when need is existing?

Can needs be created? How?

Selling & Negotiation Skills by Prof Purshottam Patil 2011

Selling Skills- Selling to Customers

Crucial attributes required for a Selling Professional

Can these attributes be developed? How?

Which are selling models you know?

What is AIDA??
Selling & Negotiation Skills by Prof Purshottam Patil 2011

AIDA

Selling & Negotiation Skills by Prof Purshottam Patil 2011

AIDA
Used in Advertising / Marketing
Describes a common sequence of events that occur when a consumer engages with an advertisement / marketing professional A - Attention (Awareness): attract attention of the customer.

I - Interest: raise customer interest by focusing / demonstrating advantages & benefits (instead of focusing on features, as in traditional advertising). (?) D - Desire: customers realize that they want & desire the product / service.
A - Action: lead customers towards taking action and/or purchasing. Selling & Negotiation Skills by Prof Purshottam Patil
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AIDA
AIDA commonly attributed to American advertising and sales pioneer, Elmo Lewis. In one of his publications on advertising, Lewis postulated at least three principles to which an advertisement should conform:

The mission of an advertisement is to attract a reader, so that he will look at the advertisement and start to read it; then to interest him, so that he will continue to read it; then to convince him, so that when he has read it he will believe it. If an advertisement contains these three qualities of success, it is a successful advertisement.
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AIDA : Attention
How do advertisers grab attention of viewers?
How does a shopkeeper / business person get your attention? What are best creative ways of getting attention of unknown prospective customer? Imp. Attention: Getting the other person's attention sets the tone: first impressions count, so smile Even on the phone because people can hear it in your voice be happy, natural, honest & professional.

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AIDA : Interest
Which are the aspects you are interested in?

How do advertisers generate interest after getting customer attentive?

How do we generate interest after getting attention for a individual customer? Imp. Interest: Something begins to look interesting if it is relevant and potentially advantageous The person should have a potential need for your product or service or proposition. How will u know it?

We must approach the other person at a suitable time

We must empathize with and understand the other person's Selling & situation and issues, Negotiation Skills by Prof Purshottam Patil 2011 13

AIDA : Desire to buy / Decision

We need to be able to identify prospect's situation, needs, priorities & constraints, through empathic questioning & interpretation. We must build trust, rapport & a preparedness in the prospect's mind to do business with you personally (?) You must understand your competitors' capabilities and your prospect's other options (?)

You must obviously understand your product

You must be able to present, explain and convey solutions with credibility and enthusiasm.

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AIDA : Action
Simply the conversion of potential into actuality.

Natural inertia & caution often dictate that clear opportunities are not acted upon, particularly by purchasers of all sorts. We must suggest or encourage agreement to move to positive direction or complete the sale. Is it possible where customer buys the product / service at the second (I) stage? How?
The better the preceding three stages have been conducted, the lesser emphasis is required for the action stage At times, a sale is so well conducted that the prospect decides to take action without any encouragement at all.
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Conceptual Selling,

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Concept Selling Process

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Prospecting

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Pre approach
The first stage in the selling process, the stage in which a salesperson prospects for new accounts, qualifies them and prepares to make contact with the prospect

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Approach

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Tele-calling

Greeti ngs, one line selfintro

Permis sion to speak

Brief Intro

Power statem ent

Purpo se of Call

Reque st meetin g time_2 option s2 days

Confir m meetin g time & venue

Thank s

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Approach

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Presentation

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Opening: Ice Breaking

You're face to face with the prospect. What do

you say first? How do you get the prospect to totally focus on your message? What is the best way of starting a conversation with a new prospect? Any answers? For some salespeople, this part of the sales call is so uncomfortable that they have a hard time even getting out of their vehicle to meet the client. And this call reluctance has a debilitating impact on their career. Is this a technique ? Can we master this?
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Opening: Ice Breaking

you can ask about an award recd by client, how business is going, or how long they have worked there. It really doesnt matter as long as the question is easy and it gets your prospect talking.

Every person has one insatiable craving : to feel important, valued & heard. When this happens, you quickly develop rapport & an emotional connection. Your prospect will feel at ease and your sales call will almost always be successful. So the key is to start by asking questions that are easy to answer.
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Opening: Ice Breaking

Experts say it takes only three seconds to make a first impression. If you investigate the approach and attitude of top producers you'll discover that they all use some similar strategies for opening a meeting with a new client.

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Opening : Important
Make Your First Meeting Count!
1) The first and most important strategy for

breaking ice is knowing all you can about the company or individual you are planning to address. 2) To gain the respect of a potential client, there's a lot more to communicating than just words. How do u have it right? So during the first moment of meeting, greet the person with a firm handshake along with good eye contact. Stand and walk tall, keeping your shoulders back and your head erect. And don't forget to smile
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Opening : Important
3. speak first about some mutually interesting topics of conversation. After a few minutes, when you've had some time to relax and establish rapport, you can launch into your presentation.

4) There may be times when you meet with a client and you don't feel an immediate connection. Trying to find ways to connect with the person and then achieving it can be very rewarding.
5. The purpose of breaking the ice is simply to begin developing a relationship of mutual trust. It is better to start with a non personal icebreaker. 6. ask questions, but be sure to pay attention to the answers. Selling & Negotiation Skills by Prof Purshottam Patil
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Objections

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Objection Handling
What is an objection? Does it mean the client is disinterested ? Types of Objections: 1. Need: I have one of those already. My car works just fine thank you. I have no space for any more. 2. Price: have already spent my budget for the month. Your competitors sell a better product for less money. I could get it cheaper on the web. 3. Time: Ill get back to you. Call me next month. 4. Trust: This is a new co/product. Will you give a receipt, statement. Do you have any brochure, manual. Selling & Negotiation Skills by Prof Purshottam Patil 2011 31 Who are your existing clients

Objection Handling Process

1. LAARC: Listen > Acknowledge > Assess > Respond

> Confirm 2. FFF : Feel > Felt > Found : I know that you feel that it is not essential. I had a person yesterday who felt the same when they first looked at it. But when they tried it on they found that it was so useful & comfortable. 3. LACE : Listen > Accept > Commit > Explicit Action 4. Conditional Close : You say you want a red one. If I can phone up and get you one, will you take it today?
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Closing

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Closing
The close' of the sale is usually described as the point where a prospect or customer agrees to buy. many sales people who put on a tremendous presentation, fumble during the close. Why?

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Closing Types: 1. Assumption Close

It is assumed that customer is going to buy. If the

presentation is effective, it is assumed that buying will naturally follow. What can be your closing statements? The sales person can start writing the order & expects the prospect to sign on the dotted line. When shall we deliver it to you? What will your friends say when they see it? Will 20 cases be enough? This close essentially takes the prospect from the sales process into the close without the prospect even realizing it.

2. 1-2-3 Close
1-2-3 close Summarize in sets of three items

The houses here are better-looking, better-built and better-equipped than those on the other development.
If you buy today, we will give you insurance, tax and a full tank of fuel.

3. Reverse Close
If a prospect is believed to be leery of the sales pitch, their brain is already telling them to say "no" well before the close ever takes place. By using the words "do you see any reason why you would not like to join our organization" the client says "no" but indeed has said "yes" thus the name Reverse Close.
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4. Balance-sheet Close
List both the benefits of the purchase (the pros)

and also the costs (the cons), like a balance sheet. Make sure the 'pros' column is longer and more impressive. Well, although it costs this much and is a bit big, it will sound really good and fit well into your house decor. Let's weigh things up. You're not getting ..., but you are well within your budget and will have ..., ... and .... Hmm. That's Negotiation Skills by Prof Purshottam Patil good! Selling &
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5. Golden Bridge Close

Sun Tzu, the famous Chinese General who wrote the classic

text about winning wars without fighting, said 'Build your enemies a golden bridge'. By this he mean you corner them, and then rather than fighting (whence they, having nothing to lose, would fight to the death), you back off a little and let them leave with dignity - just in the direction that you want them to go. The Golden Bridge Close thus works by closing off all options except the one you want. Sorry, we're out of that one...Oh that one is really expensive...And that one has got really bad reviews and I Selling & Negotiation wouldn't recommend it... Skills by Prof Purshottam Patil 2011 39

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