MODULE 2
SELLING SKILLS AND STRATEGIES
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OUTLINE:
- Selling and buying Styles
- Selling skills, situations
- Selling process
- Sales presentation
- Handling customer objections
- Follow-up action.
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Selling is one of the most challenging professions of the modern world.
SELLING SKILLS
These are the sum total of aptitudes and skills such as communication skills, listening skills, conflict resolution skills, problem solving skills and negotiation skills.
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SELLING AND BUYING STYLES
BUYING STYLES
Buying styles vary depending upon:
- Capability to pay
- Quantity of purchase
- Ability to take risk- Innovators Vs Laggards Theory of diffusion
- Bargaining power of the buyer
- Competitors
- Personality traits
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TWO TYPES OF BUYERS
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- Innovators
- Laggards
INNOVATORS
- People who are adventurous and have high risk capital are the overnight buyers.
- These buyers are the INNOVATORS In the market place.
- Who mostly buy on impulse and consider non functional reasons for making a choice.
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LAGGARDS
This set of people are followed by another group who accept new products and innovations after observing the innovators using it.
- Similarly customers personality traits also influence the pattern and style of buying.
- The risk - averse customers always take multiple variables into consideration before they make a final decision.
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BUYING STYLE- B TO B
- Number of competitors
- Prevailing level
- Quality
- Switching cost
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SELLING SITUATIONS
SELLING SITUATIONS
- A typical selling situation says what kind of customers a salesperson is going to face and what kind of sales approach will help him to closing a sale in that situation.
SELLER FACES DIFFERENT SITUATIONS IN THE PROCESS OF SELLING
- Organizational selling: the customer represent a group interest/ purchase dept in the organization.
- Service and solution selling: customer does not come with a specific parameter and during the sale presentation the customer may unravel the problem & develop criteria.
- Retail selling: the customer walks in to the store with the intention of buying a product.
- Cold calling: make an unsolicited visit or telephone call to someone in an attempt to sell goods service
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- Pharmaceutical selling; the sales person makes a sales presentation to doctor who is not the original customer but customer decision making largely depends on what the doctors prescribes.
- Creative selling: the salesperson tries to sell an abstract thought to the customer.
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SELLING SITUATIONS
- It explain what kind of customers a salesperson is going to face & what kind of sales approach will help
- Telecalling- More chance of rejection
- In B to B - specific pattern, problem and solutions are defined
- Service & solution selling- unravel his problem, identify his interest
- Retail- customer walks in with intention to buy
- Cold call or door to door- no intention from customer, salesman identify the potential
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SELLING SKILLS
SELLING SKILLS
- Communication
- Listening skill
- Conflict management skill
- Problem solving skills
- Negotiation skills
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THE GOOD SALESMAN
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THE BAD SALESMAN
THE UGLY SALESMAN
Honest
Admits the mistakes
Possesses problem solving capabilities
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Friendly but professional
Dependable
Adaptable
Well prepared
Knows my business
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Patient
Does not follow up
Walks in without appointment
Begins call by talking casual
Puts down competitors products
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Has poor listening skills
Makes too many phone calls
Makes lousy presentations
Fails to ask about needs
Lacks product knowledge
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Wastes time
Has a Alec attitude
Calls customer dear, sweetheart
Gets personal
Does not give purchasing people credit for their intelligence
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Lies
Lazy
COMMUNICATION SKILLS
NEGOTIATION SKILLS
PROBLEM SOLVING SKILLS
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LISTENING SKILLS
SELLING SKILLS
CONFLICT MANAGEMENT SKILLS
COMMUNICATION SKILLS
Communication is exchange of idea and information between two parties.
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COMMUNICATION SKILLS
- Business believes the trust between buyer and seller depends on five elements in sales person behaviour.
COMMUNICATION SKILL
Buyer believes seller because...
- Truth of words communicated
- Predictability of action
- Competency- ability/knowledge/resources
- Intent or Empathy
- Likeability
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TYPES OF COMMUNICATIONS
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- Personal
- Non-personal- use of mass media
COMMUNICATION PROCESS
BODY LANGUAGE-NON VERBAL
- Personal appearance
- Posture
- Gestures
- Facial expressions
- Eye contact
- Space distancing
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LISTENING SKILLS
LISTENING SKILLS
- Research suggests that people are only 25% efficient in their ability to listen
- Average person remembers 50% after 10 minutes
- Then forget 50% of that within 48 hours
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TYPES OF LISTENING
- Content listening- Sales representative to customer/understanding the content.
- Critical listening- Evaluating the meaning/logical level of argument/strength of the evidence
- Empathetic listening- Understand the feelings, needs and demand so that it can be appreciated
THE LISTENING PROCESS
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- Receiving
- Physically hear message and take note
- Affected by external factors i.e noise
- Interpreting
- Infer speaker's meaning based on own experience
- Need to understand speaker's frame of reference
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- Remembering Store message for future reference
- Evaluating Consider points mentioned and assess their importance
- Responding Reacting to speaker's message
- Acting
- In certain occasion, action is vital. Put all promises in action in writing and make sure to deliver promises
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LEVEL OF LISTENING
Feedback
Paraphrasing
Clarifications
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Empathetic listening
Active listening
BARRIERS TO LISTENING
PHYSICAL BARRIERS
PSYCHOLOGICAL BARRIERS
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LINGUISTIC BARRIERS
CULTURAL BARRIERS
- Noise
- Emotional Disturbance
- Improper Message Decoding
- Cultural Differences
- Physical Discomfort
- Anxiety
- Ambiguous Language
- Different values
- Physical Distractions
- Over arousal of Emotions
- Jargon
- Different social
- Distance
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CONFLICT MANAGEMENT SKILLS
CONFLICT MANAGEMENT SKILL
- Avoiding
- Accommodating
- Competing
- Collaborating
- Compromising
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COMPONENTS OF CONFLICT
- Interests
- Emotions
- Values
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Frustration and aggression are the major reasons of conflict
NEGOTIATION SKILLS
Negotiation occurs when someone else has what you want, and you are prepared to bargain for it and vice versa.
NEGOTIATION
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- Situations and timings for negotiation.
- Formulation of a bargaining strategy
THE THEORY AND PRINCIPLES NEGOTIATIONS
Roger Fisher and William Ury proposed four principles for conducting principled negotiation.
- Separate the people from the problem
- Focus on interest, not on positions.
- Invent options for mutual gains.
- Insist on objective criteria.
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NEGOTIATION TACTICS
- Acting crazy
- Auctioning
- The good guy bad guy routine
- Big pot
- Budget bogey
- Get a prestigious ally
- The well is dry
- Limited authority
- Divide and conquer
- Whats the rock bottom price?
- Get lost/stall for time
- Take it or leave it
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PROBLEM SOLVING SKILLS
A sales person should not be mere order taker, he should rather act as a problem solver and a consultant to the customer
CHARACTERISTICS OF INEFFECTIVE/EFFECTIVE PROBLEM SOLVER
| CHARACTERISTICS | INEFFECTIVE | EFFECTIVE |
|---|---|---|
| Attitude | Thinking nothing can be done | Believes the problem can be solved |
| Actions | Lies back and expects that a solution will come naturally. | Re-evaluates the problem several times, look at the issue from different angles. |
| Accuracy | Does not check | Checks and rechecks |
| Solution procedures | Does not break the problem, let it be as it is. | Breaks the problem and solves. |
PROBLEM SOLVING- PROCESS
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Define the problem
Generate alternative solutions
Decide the solution
Implement the solution
Evaluate the solution
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SELLING STRATEGIES
Hard sell and Soft sell strategies
Negotiation strategy
Selling strategies
Client-centered strategies
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Win - win strategy
Price - product strategy
SELLING PROCESS
Pre-sales Preparation
Prospecting
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Pre-approach before the interview
Follow up action
Approach to the customer
Closing the sales
Handling customer objection
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Sales presentation
PRE-SALES PREPARATION
- Product
- customer
- company knowledge
- Competitors knowledge
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PROSPECTING PROCESS
Identify and define the prospects
Search for sources of potential accounts
Quality the prospects from the suspects
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METHODS OF PROSPECTING
- Cold canvassing
- Orphaned
- Prospect pool
- Centre of influence
- Direct mail
- Observation
- Referral
- Sales lead club
- Non competing sales force
- Trade show
- Telemarketing
- Networking
- Friends
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SALES PRESENTATION- APPROACH
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- Attracting customer attention
- Creating Interest
- Arousing desire and building conviction
CATEGORIES OF PRESENTATION
- Canned presentation
- Organized presentation
- Tailored presentation
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- Handling customer objections
- Closing the sales
- Follow up
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ASSIGNMENT 3
- Explain the different selling skills and selling strategies. (Jan
- Write a note on different types of selling skills? (Dec-2012)
- Explain briefly the selling process
- Explain 3 types of sales presentation.
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DATE OF SUBMISSION : 22nd May, 2017
This download link is referred from the post: VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University
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