BY

PROF. RAHUL JADHAV & PROF. PRASHANT

CHAUDHARY
SINHGAD SCHOOL OF BUSINESS STUDIES, PUNE
FOR
VISHWAKARMA PUBLICATIONS
(www.vpindia.co.in)

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An art of It is the art of Flow of products,
persuading the
customer to
closing the services &
information from
believe that deal.
purchase of the seller to buyer in
product or exchange of
service will money.
actually benefit
him or her.
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 The Marketing 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.
S&P
The Selling 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.
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 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 plans
Sales forecasting
Sales force management
Evolving sales & marketing strategies
Building long term relationship with key clients

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S&P 7
 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

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 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

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 The details of the product are
communicated to the customer

AIDA- Formula
Gaining Attention
Holding Interest
Arouse Desire
Obtaining Action

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 Features
Advantages
Benefits
Value

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 Two kinds of Resistances

Psychological Resistance- Logical Resistance-

this includes interference,
preference for established
brands, reluctance to give
up something, pre-
determined ideas etc.
objection to price,
delivery schedule,
product features etc.
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 Listen
Agree/ restate without
any prejudice
Get clear about the real
issue Discuss solution
Ask for commitments

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 Non verbal Yes’s
Summarize
Execution
Successful sales people turn
today’s customers into
tomorrow’s by reinforcing
the purchase decision.

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S&P 16
 Product Selling Service Selling

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 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

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 DIFFERENT TYPES & CLASSIFICATIONS
OF SELLING

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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 Group 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.

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

5) Technical sales- emphasizes the technical

knowledge; the engineering sales person, who
primarily acts as a consultant to the client
companies/ customers.

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 Group 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.

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 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;

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 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.

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 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

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 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

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 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

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 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

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 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.
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 Selling in a group: It helps you to sell more
One to many: More cost
effective The power of group
Many target customers together

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 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.

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 To succeed in international sales you need to know 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:
Cultural issues
Language barriers
Government regulations and tariffs

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 Do research
Visit the land where you are selling products
Check out competition
Learn the language if possible
Find the people to trust
Seek out the niches (Concentrate on small ponds before
reaching to big oceans)
Scale your knowledge
Stay aware of global trends
Take advantage of stable market

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S&P 35
 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

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 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.
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 Meticulous preparation and planning skills
Expert in forming perceived positive opinion
Knowledge of the subject matter being negotiated
Ability to analyze properly, think clearly and rapidly
under pressure and in the situation of uncertainty
Ability to perceive and exploit power
Professional communication & soft skills
Has to be a very good Listener
Should possess ability to judge the situation
with general intelligence
Analytical skills with convincing power
Ability to estimate& evaluate various options
with multidimensional thinking!
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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
Intimidatory
Manipulatory

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 Looking for both winning of two sides
Main attitudes:
Cooperative
Trusting
Conciliatory

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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”

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 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.

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 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

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 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.

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 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?

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 Identify the decision maker from the opposing team.

Formalize your objectives in terms of priorities

Establish what their objectives & priorities might be

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 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

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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.

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 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

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S&P 56
 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.

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 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…

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 Types of Difficult People-
Difficult people exist everywhere. They
come in every variety and no workplace
is without them. How difficult a person The “Sherman Tank”
is for you to deal with depends on your The “Exploder”
self-esteem, your self-confidence and The “Complainer”
your professional skills and courage.
The "Clam"
It’s far better to address the difficult
The “Wet Blanket”
person while you can maintain some
objectivity, patience and emotional The “Know-It-All”
control. The “Staller”

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 Idea Opponent-An Visceral Opponent-
idea opponent is one Visceral opponent is an
who disagrees on a emotional adversary,
particular issue or who not only disagrees
alternative on the basis with your point of view,
of rational and logical but also as a human
facts. being.

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 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

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