Post on 17-Aug-2015
07/06/10 2
“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management
07/06/10
Contents
• Introduction: Who is a successful seller?
• Selling & Buying Styles
• Selling Skills– Communication Skills
– Listening Skills
– Negotiation Skills
– Conflict Management Skills
– Problem-Solving Skills
• Selling Situations
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Who is the Successful Seller?
Who is a successful seller? One of the prominent myths in selling is the idea that successful
salespersons are born, and it is difficult to acquire skills that can turn an average salesperson into a
successful one.
Selling skills are a set of characteristics that are necessary for a salesperson to possess, failing which he may not be successful in selling. It is not correct to assume that successful salespersons are born. The essential skills for successful selling are:
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Selling Skills
Selling Skills
Listening Skills
Conflict management and resolution skills
Negotiation and
bargaining skills
Problem solving skills
Effective communication
skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Selling and Buying Styles9
8
7
6
5
4
3
2
1 2 3 4 5 6 7 8 9
Con
cern
for
th
e cu
stom
ers
(1,9) People Oriented
I am customer’s friend,
I want to understand him and respond to his feelings and interests so that he will like me. It is the personal bond that leads him to purchase from me.
(5,5) Sales technique Oriented
I have tried an effective routine for getting a customer to buy. It motivates through a blended personality and product emphasis
(1,1) Take it or Leave it
I place the product before the customer and it sells itself as and when it comes.
(9,1) Push the product Oriented
I take challenge of the customer and hard sell him, polling on all the pressure it takes to make him buy
(9,9) Problem Solving Oriented
I consult with the customer so as to inform myself of all the needs in his situation that my products can satisfy. We work towards a sound purchase decision on his part, which yield him the benefits he expects from it.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Concern for Sale
07/06/10
Selling & Buying Styles
In figure, the salespeople in position (1,1) believe in the physical display of the product and assume that
customers will buy by it themselves if the logistics are managed.
This is possible in the market where customers do not have many choices or in product categories in which customers
do not place any importance to issues like product demonstration and briefing by the salespeople.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (1,1)
07/06/10
Selling & Buying Styles
Fast moving consumer goods are in this category where the advertising and other promotion programmes bring the customer to the retail counter (by a pull method) and the store presence and visibility make the brand sell itself.
Here the sales force has the least role to play as they do the business of physical transfer of goods to the customer contact point.
Similarly, in a market where the demand exceeds supply so much that the customer is bound to take what is being offered, this kind of selling will be very effective as it involves very low cost due to non-use of advance selling techniques and few or no calls by the salespeople.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (1,1)
07/06/10
Selling & Buying Styles
• Salespeople in the (9,1) position are more product-oriented and they always try to push the product for sale.
• They try to sell the product without caring for the customer demand patterns. They feel that it is possible to sell any product.
• They do not consider the customer’s buying intension and do the hard sell by putting all the pressure to realize a sale.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (9,1)
07/06/10
Selling & Buying Styles
• The salespeople in the (1,9) position treats himself as a friend of the customer.
• This is predominantly the relationship domain and the salespeople are involved in the relational selling, where they try to understand the customer and respond to his feelings and interests so that the salesperson is able to establish a personal rapport with the customer and realize a sale.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (1,9)
07/06/10
Selling & Buying Styles
• Salespeople (in the 9,9 position) are problem solvers. They consult with the customer so that they understand his situation and all his needs, and then suggest a product that can solve his problem.
• They work with the customer towards a sound purchase decision on his part that will help him get the desire results.
• This is basically consultative selling and is normally seen in the software and consultation selling industry where the salespeople take note of the customer’s briefs and come with a solution that best fits the customer’s problems.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (9,9)
07/06/10
Selling & Buying Styles
• A salesperson in position (5,5) is a professional who keeps balance between concern for customer and concern for sale.
• such sales people use various sales techniques to do prospecting and sales presentation. Their sales pitch is based on blend of personality and product orientation.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Position (5,5)
07/06/10
Selling Situations
Maintenance selling
Developmental selling
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Selling SituationsMaintenance selling
Typically maintenance selling involves the art of servicing the existing accounts, securing promotional cooperation, counting inventory and taking replenishment orders and deliver the products.
In advertising world, these kind of salespeople are called client servicing executives who provide services to clients and also take the orders as and when required.
There is no question of prospecting for this kind as it is done with the existing customers.
In IT sector, these salespeople are posted at the client site and are responsible for solving the client’s problems.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Selling SituationsDevelopmental selling
Salespeople engaged in developmental selling are called BDE as they try to contact the potential customers and build business for the firm.
They are the real salespeople who try to do prospecting from the leads either available in the organization or collected by them, and then take the prospect through the whole process of selling to realize a sale.
Getting orders is a characteristic of developmental selling. Here the salesperson must seek for the potential customers and obtain their order.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Selling Skills
Selling Skills
Listening Skills
Conflict management and resolution skills
Negotiation and
bargaining skills
Problem solving skills
Effective communication
skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Communication Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
• A salesperson needs to understand the communication process before he develops his own strategies for successful selling.
• Sales communication can be both personal and non-personal.
• Personal communication is sure to take customers from one level to the next level of the decision process.
07/06/10
Communication Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Chandrakant Sen is the sales manager at USHA Corporation and he was giving a presentation that a new
product would deliver higher profit to the customer, SAIL. When he was quizzed to display how the
organization will be befitted, he touched a couple of keys in his laptop and ran a graphic program to show
diagrams to the customer during the presentation that illustrated his idea and proposition.
This shows effective communication will help people in realizing a sale and handling objections successfully if the salespeople have done their homework properly.
07/06/10
Communication Process
Noise
Channel
FeedbackIntended Message
Sent Message
Encoding
Perceived Message
Received Message
Decoding
Sender Receiver
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Communication Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
• Communication can take the form of verbal and non-verbal.– Verbal communication consists of words arranged in a
meaningful patterns.
– Most basic form of communication is non-verbal in nature. Facial expressions, gestures, spatial relationships and attitude towards time and people are included in non-verbal communication.
07/06/10
Communication SkillsManaging Body Language:Salesperson can take care of their verbal and non-verbal communication while making sales presentations. The non-verbal cues taken together are called body language, variouselements of which have been as:
Personal Appearance
Posture
Gestures
Facial Expressions
Eye Contact
Space Distancing
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Listening Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
• The sales manager has to be very good listener and use his listening skills to lead towards sales.
• Effective listening can be explained by the example of a doctor who is attending a patient.
• Good listening also enhances the impact of what the salesperson speaks to the customer, and increases the ability to negotiate with customers.
Research suggests that people are only 25% efficient in their ability to listen. An average person remembers only about half of what is being told to him after 10 minutes, and forgets half of that within
48 hours.
07/06/10
Listening Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
There are three types of listening:
1. Content Listening
2. Critical Listening
3. Empathetic Listening
07/06/10
Process of Listening
Attendance
Interpretation
Evaluations
Remembrance
Response Action
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Conflict Management Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Conflict in sales org. is more evident than in any other org. This is due to the fact that there is always conflict of interest among people at different levels as the goals are different at each level of the org.
A sales manager wants his salespeople to cover his territory as thoroughly as they can whereas
salesperson are interested in realizing the desired sales through a few loyal customers. The vice
president is interested in getting better results from the same cost to show the board that resources are being
used efficiently.
07/06/10
Conflict Management Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Conflict Defined
Is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.
07/06/10
Conflict Management Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Conflict can be classified as:• Functional: This conflict supports the goals of the
group and improves its performance.
• Dysfunctional: It hinders group performance.
• Task: These are disputes over the content and goals of the work.
• Relationship: It is tussle based on interpersonal relationships.
• Process: It is fight over how works get done.
07/06/10
Stage I
Potential opposition or
Incompatibility
Stage II
Cognition &
Personalization
Stage III
Intentions
Stage IV
Behaviour
Stage V
Outcomes
Antecedent Conditions
Communication
Personal Variables
Structure
Perceived Conflict
Felt Conflict
Conflict handling Intentions
Competing
Collaboration
Compromising
Avoiding
Accommodating
Overt Conflict
Party’s behaviour
Others reaction
Increased group
performance
Decreased group
performance
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or Incompatibility
The first step in the conflict process is the presenceof conditions that create opportunities for conflict toarise. They need not directly lead to the conflict, but one of these conditions (Antecedent Conditions) isnecessary if conflict is to surface.
1. Communication2. Structure3. Personal Variables
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or Incompatibility
Communication: can be a source of conflict.
Deepa had worked in SCM at Bristol Hotel for 3 years. She enjoyed her work in large part because
her boss, Ranjan, was a great guy to work for. Then Ranjan got promoted 6 months ago, and Vijay took his place. Deepa says her job is a lot
more frustrating now.
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or IncompatibilityCommunication: can be a source of conflict.
“Ranjan and I were on the same wavelength. It
is not that with Vijay. He tells me something and I do it. Then he tells me I did it wrong. I
think he means one thing but says something else. I don't think a day goes by when he is not yelling at me for something. You know, there
are some people you just find it easy to communicate with. Well, Vijay is not one of
those.”
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or IncompatibilityStructure: can be a source of conflict.
Meera and Rubina both work at InStyle- a large
discount furniture retailer. Meera is a salesperson on the floor, and Rubina is the company credit
manager. The two women have known each other for years and have much in common: they live
within two blocks of each other, their oldest daughters attend the same middle school and are
the best friends. But, these two women are consistently fighting battles with each other.
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or IncompatibilityStructure: can be a source of conflict.
Meera's job is to sell furniture, and she does a heck
of a job. But most of her sales are made in credit. Because Rubina's job is to make sure the
company minimizes credit losses, she regularly has to turn down the credit application of a
customer with whom Meera has just close a sale. It's nothing personal between Meera and Rubina; the requirements of their jobs just bring them into
conflict.
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-I: Potential opposition or Incompatibility
Personal Variables: (Personality, Emotions and Values)
Have you ever met someone to whom you took an immediate disliking? You disagreed with most of the opinions they expressed. Even insignificant
characteristics- sound of their voice, they personality- annoyed you. We have all met people
like that. When you have to work with such individuals, there is often the potential for conflict.
07/06/10
Stage I
Potential opposition or
Incompatibility
Stage II
Cognition &
Personalization
Stage III
Intentions
Stage IV
Behaviour
Stage V
Outcomes
Antecedent Conditions
Communication
Personal Variables
Structure
Perceived Conflict
Felt Conflict
Conflict handling Intentions
Competing
Collaboration
Compromising
Avoiding
Accommodating
Overt Conflict
Party’s behaviour
Others reaction
Increased group
performance
Decreased group
performance
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-2: Cognition and Personalization
Cognition is the mental process of knowing, including aspects
such as awareness, perception, reasoning, and judgment.
• Because a conflict is Perceived conflict does not mean that it is personalized. In other words, 'A may be aware that B and A are in serious disagreement, but it may not make A tense or anxious, and it may have no effect whatsoever on A's affection towards B’.
• It is at the Felt conflict level, when individuals become emotionally involved, that parties experience anxiety, tension, frustration.
07/06/10
Cooperativeness:
• Attempting to satisfy the other party’s concerns.
Assertiveness:
• Attempting to satisfy one’s own concerns.
Cooperativeness:
• Attempting to satisfy the other party’s concerns.
Assertiveness:
• Attempting to satisfy one’s own concerns.
Satge-3: Intentions
Decisions to act in a given way.
Conflict Management Process
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Dimensions of Conflict-Handling Intentions
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Conflict Management Skills
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Stage-3: Conflict Handling Intension
1. Competing: Each party pursues its own interests, regardless of the impact on the other party.
2. Collaborating: Both parties in a conflict try to satisfy fully the concerns of both parties.
3. Avoiding: One party withdraws from or suppresses the conflict.
4. Accommodating: One party agrees to place the opponent’s interests above its own.
5. Compromising: Both parties agree to give up something.
07/06/10
Conflict Management Skills
The Conflict Resolution Process:
- lumping- avoidance- coercion- mediation- conciliation- adjudication- negotiation
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Negotiation Skills
• Negotiation occurs when someone else has what you want, and you are prepared to bargain for it and the vice versa.
• Successful negotiation is an attempt by two parties to achieve mutually acceptable solutions. (win-win)
• Negotiation is very important in selling because majority of selling is done without a list price.
• In B2B selling and services selling, the success of selling largely depends on how a good negotiator the salesperson is.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Negotiation Skills
Let us take an example of a student Mr. Kumar who did not take
Up any job after graduating from a business school and wanted
to develop a new computer game that he believed would be
highly successful. However, it would take a long time to
program it. He needed to earn for his living also.
He met one of his classmates Shankar, who had joined a large
MNC after the business school. Shankar liked his idea and
agreed to put it through to his management. But Shankar’s
organization could offer only Rs.1 Lakh.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Negotiation Skills
Kumar said it will take him ten months to develop the product
and while Rs.1 Lakh will enable him to survive during this
period, it was not enough as a reward. He suggested that
Rs.1 Lakh should be treated as an advance against future
profits and that he and the company share the profit in the
ratio of 25:75. Eventually the deal was finalized at 20:80.
The computer game was launched in a big children fair and was a huge success. It brought great rewards to both company and Mr. Kumar. This is an example of
win-win situation.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Negotiation Skills: Zone of Agreement
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Seller’sReservation Price(Seller wants S
or more)
Seller’s Surplus Seller wants to Move X up
Buyer’s Surplus
Buyer’sReservation Price(Buyer wants B
or less)
Buyer wants to Move X down
Zone of AgreementFinal Contact
S
B
x
07/06/10
Problem-Solving Skills
• Besides the negotiation skills, one also needs problem-solving skills for effective selling.
• The consultative selling approach suggests that a salesperson should not be a mere order taker; he should rather act as a problem-solver and a consultant to the customer.
• These roles are more significant for high-tech selling and B2B selling.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Characteristics of Ineffective/Effective Problem-Solver
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Characteristics Ineffective problem-solver Effective problem-solver
Attitude Thinks nothing can be done;
Gives up easily
Believes the problem can be solved
Actions
Lies back and expects that a solution will come naturally; Jumps to
conclusion very fast
Re-evaluates the problem, Re-describe the problem, draw sketches and write
equations
Accuracy Does not check Checks and Recheck
Solution Procedures
Does not break the problem, lets it be as it is, Not know where to start, fails
to identify key concepts, relies on guess, no proper plan, quits and
withdraws easily
Breaking into smaller problems, starts at a point
where he understands better, uses fundamental concepts,
use qualitative & quantitative equations, keeps a track of
changes and progress
07/06/10
Problem Solving Skills
Stephen Covey in his famous book ‘The Seven Habits of Highly Effective People’ lists seven habits that make people more
effective problem-solvers.
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Problem Solving Skills
Habit I: be proactive
Habit 2: begin with an end in mind
Habit 3: put first things first
Habit 4: think win–win
Habit 5: seek first to understand, then to be understood
Habit 6: synergize
Habit 7: renewal
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Define the problem
Generate alternative solutions
Decide the solution
Implement the solution
Evaluate the solution
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Problem Solving Process
07/06/10
Problem Definition Techniques
Find out origin of the problem
Explore the problem
Present desired state
analysis
Evaluate problem
statement
Statement and
Restatement
Dunker’s diagram
Problem Definition Techniques
1
2
35
4
6
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
07/06/10
Achieve the desired state
Possible path to the desired state
Path 1 Path 2 Path 3
Solutions to implement & paths to desired solutions
Solution 1Solution 2 Solution 3
General Solution
Functional Solution
Specific Solution
IILM-GSM
Selling & Sales Management Selling Skills & Strategies
Dunker’s Diagram