SELLING & NEGOTIATION SKILLS

Chapter I Introduction to Sales & Personal Selling Chapter 2 !"AN "OTI#ATION Chapter $ %u&ing "oti'ation C&cle Chapter ( SALES P)OCESS Chapter * Negotiation Chapter + Negotiation Strategies Chapter , Selling to Superiors Chapter Selling to Custo.ers Chapter / Selling to Su0ordinates1 Peer Groups & Strategic Selling Chapter 23 %od& Language

Chapter I Introduction to Sales & Personal Selling

The essential point of any sales transaction is that it is an agreement between a buyer and a seller to exchange values for their mutual profit. A selling organization obviously employs sales people to sell. However it wants that selling is to be consistent with this fundamental mutuality: The buyer should receive merchandise which meets specifications and fills one of his needs. The seller should receive money of equal value within the agreed terms and conditions of the purchase.

The function of a Sales Representative is therefore two fold. irst! sales representative ma"es certain that his company participates in as many profitable sales as possible while they are covering their territories. They are charged with the responsibility to get the business. Second they ensure that those sales do constitute honest e#changes of value. $t is e#pected that both customer and the company will benefit from the sale. Salespeople are responsible to the customer for assuring that products purchased fill the customer%s needs and meet customer%s needs and meet specification. They are also responsible to the company for screening business for its profit potential so that the company does not misallocate its resources. &aintaining this balance is a demanding 'ob which requires an individual with mature 'udgment. (ompanies have succeeded by building long term business relationships with its customers. They conduct their business in such manner that they are trusted and welcomed bac". (ompanies value these long term business relationships and traditionally see" to assure that the customer will be better off after buying their product. )eteran sales people have found over time that "eeping to three fundamental principles helps to ma"e mutually profitable sales that build long term relationships: *. "a4e a contri0ution5 Sales people should be of service to the customer so that they perceive the sales person as one of his resources and as an added value to the (ompany%s products. &any successful sales representatives are viewed by their customers as on+site! unpaid! technical consultants. ,. %e considerate o6 &our custo.ers5 Treat them with courtesy and simple respect. The good manners you learned in your home are far more valuable than anything a course in selling can teach you. $t is considerate to respect your customer%s time and to appreciate their interests along with your own. -et here again! sales people encounter a matter of balance. A company does

not recommend either subservient behavior or putting the customer%s interest ahead of your own. $t is recognized that the company and its sales people succeed through its customers% success. And e#perience has shown you cannot sell successfully if your customer detects transparent self interest. He must perceive your genuine interest in his success. ew things will serve you better than sincere affection for your customers and good humor. .. "eet all &our co..it.ents5 /hen you do what you have said you will do! you avoid disappointing your customer and costing the company its accumulated goodwill. Therefore! you should ma"e only those commitments you can meet. The manipulative! abrasive techniques of the stereotypical sales person of fol"lore are not appropriate to modern mar"etplace. &anipulation is easily detected0 leaving the impression a sales person has tried to outsmart the customer! and ma"ing it unli"ely he will be welcome bac". 1ood sales people succeed with straight forward techniques that enable them to solve the customer%s problem and to differentiate their products and services in the face of intense competition. This tradition of service and problem solving has limits. There is a danger that an element of charity can creep in. -our time and company resources might be used to solve a customer%s problems without selling him anything. To avoid this danger! one or two conditions should be considered. *. Solve a problem by selling an appropriate product. ,. Solve a problem in order to create a relationship which will ultimately lead to a sale. This line is difficult to draw0 however! the ability to apply it successfully often distinguishes the profit+ma"ing sales representative from the amateur. $n short every good organization will have a tradition of customer orientation but not of altruism. Sales representatives have quotas! and there are certain s"ills which help to meet those quotas. These are founded upon a basic understanding of human behavior! and they can be learned and applied. These sales s"ills are have been identified by sales people over many years. 2i"e intelligent people everywhere! they have sought to understand their profession better! to analyze their environment and activity so they may find structure and order in what they are doing. $n that way sales people have learned to do more of what wor"s efficiently and not to repeat that which is less productive. -ou will be learning the principle! practices! and s"ills that have proven successful with good sales persons and organizations.

-ou will find sales s"ills very necessary. A company designs products that have a technical advantage and ma"e a technological contribution. But those products will not sell themselves. 3urchases are made by human beings who wor" with imperfect information and hesitate to ma"e decisions. (ustomers need a source of information in which they can have confidence. And they need a representative of a good company whom they can trust to assist them if the need arises. -ou are that source! and you are that representative. $n fact you are the company in the eyes of the customer

Chapter 2 !"AN "OTI#ATION

The goals of this chapter are for you to: *. 4escribe the needs of a normal human being and recognize the motivational power of unmet needs. ,. 2in" needs and drives together in a cycle of buying motivation. .. $dentify the features! advantages and benefits of a product.

As an individual! each human being is comple# and unique. $ndividuals! however! are probably more ali"e than they are different. The psychology of human motivation is the study of similarities. $ndividuals differ in their behavior! but basically they spend much of their time striving to satisfy needs common to all human beings. All human behavior has a cause of which we may or may not be aware. 5ur behavior is not random! even though it sometimes appears that way. Some internal or e#ternal stimulus or combinations of stimuli causes behavior that varies widely in their comple#ity. or e#ample! physical stimuli in people%s bodies generate feelings of hunger. Hunger represents a state of tension! and upon e#periencing such tension! people see" food to alleviate it. 3eople need food. A more comple# need is the need not to eat 6 to diet. $t is easy to see many possible and varied needs imbedded in the behavior of dieting. 3hysical well+being! people%s images of their bodies! their desire for acceptance by their peers 6 these are only a few of the possible needs or tension states that elicit the behavior of restricting food inta"e. Human behavior such as ma"ing purchase decisions does not occur until there is a need motivation. &otivation is that state of goal+directed tension which an

individual e#periences when a need is unfilled or not satiated. (ustomers perceive met unmet needs as their tension states. Tension is thus a necessary pre+condition for a purchase. That tension should however! be caused by the customer%s need rather than by the sales person%s ob'ectionable behavior. Sales people are involved in helping their customer%s satisfy needs! and can function as an aid in identifying and relieving tension states. /e will therefore study needs in some detail. "aslo78s P&ra.id5 5ne of the most quoted theories of human motivation was proposed by 4r. Abraham &aslow. According to &aslow! human needs are classified in five categories and are satisfied in a certain order. These 7 types of needs are related to each other in a hierarchy or order of priority. &aslow portrays this hierarchy in a pyramid form.

Maslows Hierarchy of Needs

&aslow said the needs at the base of the pyramid have the highest priority. Higher priority needs will dominate the consciousness of the individual and cause him to behave in such a way as to gratify those needs. 2ower priority needs are minimized or even forgotten or denied. As 1andhi'i said 8even god cannot tal" to a hungry man e#cept in terms of bread.9 After a specific need level has been satisfied! the ne#t higher needs emerges and dominates behavior. The satisfied need is no longer an active motivator /hen e#perimenters attempt to observe the hierarchy principle! they usually find that people are trying to satisfy several levels simultaneously. /e do not satisfy one level completely before moving up to the ne#t. Typically we have higher percentages of satisfaction of the lower needs. Thus individuals defy rigid characterizations by types based on needs. :ach is! in reality! motivated by a unique combination of needs. The combination will change depending on how the individuals% environment is affecting him at that particular moment. /e can generally assume that most customers in today%s technological society are seldom concerned by physical needs. ew of us are persistently worried about pain! food!

shelter or physical discomforts! although fatigue may occasionally ma"e the need for sleep dominate us. However! some people may find the second level of the pyramid! security! unsatisfied to a fair degree for e#tended periods for eg: A new boss or several quarters of unprofitable operation will generally trigger some an#iety about security! specifically 'ob security. A ma'or purchase decision! where the ris"s of failure are great may not heighten security! an#iety! even in an individual who normally is motivated by higher order needs. The memory of security deprivation! such as that provo"ed by a long period of unemployment! may influence a person%s need for security for a long time. rom the sales representative%s point of view! a ma'or problem with &aslow%s pyramid and other schemes for analyzing human motivation! is that needs cannot be observed directly. /e cannot be certain what other people thin" or feel and thereby determine their motives. All we can really "now how they behave. ;ut their behavior can tell us a great deal about their need level. 1iven an assumed dominant need level in a customer for a given situation0 we can emphasize product features in which he would be most interested. :#amine the table below and complete your e#pectations: Need le'el Securit& Social Ego Sel69 actuali:ation O0ser'a0le Cues Sales Appeals

&aslow%s Hierarchy thus gives us a way of organizing how people behave and what motivates purchsase decisions. And it gives us a scientific reason upon which to base these two selling truisms: *. (ustomers buy for their reason, not ours ,. (ustomers buy a product for what they perceive it will do for their unmet needs! not for what that product is physically. They buy solutions! not specifications

"aslo78s ierarch& gi'es us a 7a& o6 organi:ing ho7 people 0eha'e and 7hat .oti'ates purchase decisions
3rimary <eed 2evels :#amples of eelings :#amples of eelings

<eeds

resulting from =nsatisfied <eeds 6 Tension States

resulting from Satisfied <eeds 6 To be 1ained

Actu aliza tion

Spiritual !nderstanding ;isdo. Contri0ution Sel6 <ul6ill.ent Creati'e E=pression Aesthetics Autono.&

%oredo.1 sel6ishness1 0eing sti6led1 uselessness1 inhi0ition1 de6ensi'eness1 in6le=i0ilit&1 dependence

Gro7th1 .aturit&1 independence1 curiosit&1 sensiti'it&1 altruis.1 6le=i0ilit&1 spontaneit&

:go

Sel69estee. Achie'e.ent Co.petence S4ill1 Kno7ledge Co.petition Status1 )ecognition Po7er

<ailure1 de6eat1 sha.e1 inade>uac&1 hu.iliation1 guilt1 insigni6icance1 ignorance1 dishonor1 depression1 e.0arrass.ent

Pride1 success1 prestige1 honor1 'ictor&1 con6idence1 respect1 .aster&1 recognition1 credit1 acco.plish.ent

Soci al

Gi'ing Lo'e <riendship Social li6e Co.panionship Acceptance Contact

)e?ection1 loneliness1 neglect1 isolation1 criticis.1 .isunderstood1 disappro'al

%elonging1 support1 understanding1 popularit&1 attention1 inti.ac&1 co.ple.ented

Sec urity

Con6idence Predicta0ilit& Sta0ilit& Assurance Guarantees Sa6eguards Sa6et&

Con6usion1 pressure1 dou0t1 7orr&1 danger1 loss1 6ear1 disorder1 insecurit&1 an=iet&1 threatened1 guarded

<a.iliarit&1 peace o6 .ind1 har.on&1 certaint&1 sta0ilit&1 order1 openness

3hys ical

Long Li6e ealth Co.6ort Shelter <ood ;ater Air

unger1 thirst1 sic4ness1 dro7siness1 7ea4ness1 hot1 cold1 disco.6ort1 pain1 6atigue

)ecuperation1 pla&1 6ullness1 alertness1 con'enience1 7ar.th1 strength1 pleasure1 rest1 ease1 e=cite.ent1 6un

These two truisms are the foundation of the empathy which all good sales people possess. To sell effectively you must recognize the power of unsatisfied needs in your customers and wor" at seeing things from their perspective. Customers will only buy from you because of what you and your product can do to satisfy their needs.

NEE@S 'As ;ANTS <eeds and wants are not the same. $f you as" a customer! what he wants! he will tend to describe an article he wants to possess. He usually e#presses his want in terms of things he already "nows about! such as competitive products. $f you can get the same customer to tal" about his needs! he will describe a condition that requires a solution. Some of these needs may not be stated directly by the customer. ;ut they may be detected by a sensitive sales person. -ou have an opportunity to present your product and services as a solution to his need. Try to "eep your conversations with customers focused on the end result they are trying to achieve. This could range from the direct application for the product! to their personal motives. Then you can tal" about their needs rather than their wants! which are restricted to those things of which they are aware. And they will see you as a source of information that e#pands their list of wants. >>>>>

Chapter $ %u&ing "oti'ation C&cle

How does the concept of needs relate to selling? :very time customers decide to purchase a product from a vendor! they will proceed through three states of a purchase decision. Stage *: the customer must e#perience a tension state. The tension motivates the customer to identify his need and to satisfy it. A sales person may introduce tension by ma"ing the customer aware of a previously unrecognized need. Stage ,: the sales person must present the product or the service to the customer which fills that need. Here! anything from a catalogue to a systems team could fill the role of the 8Sales 3erson9. Stage .: the customer must overcome his natural reluctance to ma"e a purchase decision! and buy the (ompany 3roduct. He then directs his attention to his ne#t most urgent need! although satisfying that need may not involve the (ompany product.

These three stages constitute the buying process. At the same time the customer is going through a buying process! the sales person is going through a sales process that complements it. "oti'ationA"anipulationB <ote that the buying process does not require sales people to manipulate the customer for their reasons. Rather! it requires sales person to motivate the customer by offering an opportunity for the customer to satisfy his needs. The customer may also need the assurance that he is buying the most reliable solution to his problem @ a security needA He may further need to conduct business with the company sales person with whom he is familiar and to reward him for all his efforts with a sale @ a social needA He may also need the personal satisfaction of solving a problem for his employer and the prestige of solving it with the most innovative approach available @ an ego needA The customer may even need a new measurement or computation tool because it will give him the capability to e#pand his competence! to contribute to scientific growth @ a self actualization needA

<eatures1 Ad'antages & %ene6its

Recognition of need motivation requires us to loo" at products from the customer%s point of view. /hat does the product do for the customer? $t is useful to e#amine the features! advantages and benefits of a 3roduct. <eatureC a fact about a product or service that is part of its design. Ad'antageC the performance difference between the product with the feature! and the product previously used or offered by the competition. %ene6itC /hat the product does to fill the customer%s needs. E=a.pleC <eatureC Automatic transmission Ad'antageC 4river does not shift gears %ene6itC 2ess shifting mean less tiring driving! especially in cities Sales people will appeal more effectively to their customers% needs if they present benefits instead of features. ;ut many sales people habitually describe features instead of benefits. They are trained on product features and evidently e#pect their customers to comprehend intuitively how features benefit them. =nfortunately! that degree of intuition is demonstrably rare in people. However! it is not sufficient to describe benefits only. (ustomers tend to believe those things they understand. They need to "now the factual basis for the benefits. Sales people must present features and translate them into benefits for their customers. /hen you tal" only of features! you stop selling to customer needs through benefits. /hen you tal" only of benefits! you fail to build credibility through features.

<orcing Sentences 5ne way to build the habit of lin"ing features and benefits together is to begin using 8forcing sentences.9 These are sentences that require a benefit to complete the statement. They force you to spea" in terms of benefits. 8/hat this feature means to you is B.9 8The way you benefit from this feature is B.9 8The significance of that fact for your company is B.9

$t isn%t enough to say! 85ur automatic digital test systems will reduce test time and eliminate human error9

-ou want to convert those statements to benefits for the customer or his employer. 85ur automatic digital test systems will reduce test time and eliminate human error. And that! of course! means savings in labor costs and significant reductions in board repair and final test problems. So your company will ma"e more profit and you will get management approval for your printed circuit board assembly group.9

Chapter ( SALES P)OCESS

:#perienced salespeople agree that no two sales are ali"e. :ach is unique and will follow a natural path of its own. (onsequently! new salespeople have a tendency to thin" they are not CsellingC because their activity seems to be unstructured! not patterned. $n reality! there probably is a pattern. ;ut any one sale will generally s"ip or combine some stages of the typical process. $n addition! sales often e#tend over more than one call! ma"ing the pattern difficult to recognize.

:arlier! we discussed buyer motivation and emphasized that customers will go through a buying process to determine how our proposal benefits them. The sales process must complement that buying process! since it is the customer who must be motivated to some action. 4ifferent customers will ma"e purchase decisions in different manners! reflecting their own environments and behavioral styles. And those variations will cause us to emphasize different parts of the sales process in order to better match the customer. ;ut a CtypicalC sale might go through the following five basic steps:

Contact5 The salesperson has to insert himself into the cycle somehow! he has to ma"e contact with the customer.

Duali6ication5 The salesperson must qualify the customer to ensure that efforts invested in the customer have some potential of resulting in a sale.

I n ' e s t i g a t i o n 5 T h e s a l e s p e r s o n m u s t investigate the customerD application so a c r e d i b l e s o l u t i o n t o h i s n e e d c a n b e recommended.

Presentation5 The cu stome rD s n ee d .

salesperson

must

pre se n t

sol u ti on

to

th e

Close5 The salesperson gains a commit ment from the customer to ta"e the ne#t step in the sales process. The final close is for purchase of the product.

:very sale will not necessarily go through all five of these steps in this e#act sequence. - ou need not program yourself to do all of these things with every sale. ;ut these five things will usually happen in a complete sale initiated by the salesperson with a previously un" n o w n c u s t o m e r . A n d t h e f i v e s t e p s i l l u s t r a t e the w ay ef fecti ve sale sp eople u se thei r time. These are the activities that constitute Cselling.C

STEP 25 T E CONTACT Where do you start the contact process? -ou may wish to start with an individual who can gi ve y ou inf ormati on about this ne w cus tomer or account! but who will not ma"e a purchase decision. That way you have less ris" of sounding ignorant when you get further involved w i t h d e c i s i o n m a " e r s i n t h e s a l e s p r o c e s s . Receptionists and purchasing agents can usually provide you with a quic" picture of your prospect. ;ut try not to spend too much time with an ac count below the level where your product will actu al ly be purch ased . Th at decision+ma" ing level will vary depending on the product type and the size of the account. A general systems salesperson will eventually want to tal" to the 3resident of a small

company about a (omputer System! while the instrument salesperson may be tal"ing to the :ngineering &anager and 3roduction Test &anager at the same firm. -ou should therefore set the ob'ective of penetrating quic"ly to the highest practical level of management. $f you sell to a high level you will be well+directed and well+ recommended to lower levels. /hen the president of a company tells you to see a lower and more appropriate person in his firm regarding some possible purchase! he has most li"ely pic"ed the right person. And that individual will probably be a more receptive customer if he "nows that his president sent you. How do you start the contact process? /hen first meeting a customer! open with an introduction followed immediately by a question. Euestions require answers and get the customer involved in the process. They also give the customer an opportunity to tell you what interests him. 2et the customer tal". What must you accomplish in the introduction? -ou must get the customerDs attention and arouse his interest in how he can benefit from further contact with you. Attention and interest are "ey words. -ou will get the customerDs attention and capture his interest by quic"ly showing that you are prepared to have a business discussion that benefits him. ;e careful that you do not appear to be 'ust fishing for information or are only interested in selling him something. 4o some pre+study. 3lan your contacts ahead of ti me an d s ay t h i n g s th at a re r e l e va n t t o t h e customer. 4onDt assume that your customer is interested0 assume instead that he isnDt interested. This will apply to your first meeting and all subsequent meetings. 4onDt get careless as ti me p asse s. -ou may e v en f in d i t h el p fu l to write down the first few sentences before seeing your customer so you wonDt freeze up. How do you terminate the contact step? :nd it with a mutual commitment for further action. $f both you and the customer end your conversations with agreed tas"s! the ne#t step is e a s y : m e e t l a t e r t o e # c h a n g e i n f o r m a t i o n o r re su l ts. Th i s accu mu l ati on of mu tu al commi t ments builds progress in the buying process. A sample contact step then might proceed as follows! either in person or on the telephone: Salesperson: C1ood morning! &r. Ra"esh. &y n a m e i s F e e t S e t h i ! $ D m a sales representative for &icro (ontrols. $Dve been told that your plant here has a large printed circuit board assembly area. &icro (ontrols has

r e c e n t l y i n t r o d u c e d a l o w + c o s t digital board test system that may be able to save your company substantial testing costs. Tell me! are you now using automated board testing? 5r have you ever evaluated it?C

Introduce yourself, get attention, and arouse interest by stating a benefit. Ask a question. hen be quiet and listen. !ater, make the transition to the ne"t stage with a mutual commitment.

Salesperson: C5"ay! &r. Ra"esh. 2etDs do this! then. $Dll come bac" on ne#t /ednesday at nine oDcloc" prepared to show you in more detail how we generate digital test patterns. And w i l l y o u c h e c " w i t h y o u r c o s t analysis people before then to find out what board testing is currently costing your firm?

STEP 25 D!ALI<E 4uring the qualifying step you will be trying to ma"e certain that the person in whom you are investing your time can! in fact! buy your product or influence its purchase. -ou are see"ing the answers to some specific questions. These questions should not be as"ed within too little time! or the customer will feel he is being interrogated. -ou will probably as" qualifying questions at opportunities throughout the sales process! but you must as" them. -ou must as" in a manner so as not to give offense! but you are entitled to answers. 5ne simple courtesy that prevents giving offense is to as" permission before proceeding with a string of questions. C&r. 4eepa"! $ donDt "now much about your manufacturing process. $s it all right if $ as" a few questions?C Has the customer got the money to purchase your product? $n the :nglish language! it is rude to as": CHave you got enough money?C

;ut it is acceptable to as": CHas your management approved your entire budget request we tal"ed about last wee"?C 5r

CHow large is your budget for test equipment going to be if you proceed with this proposed product development?C 5r CH ow much are you pre se ntl y sp endi ng on your data processing system?C < e v e r t a l " a b o u t p e r s o n a l t h i n g s l i " e s o m e bodyDs money when you can tal" about abstractions li"e their budget. #oes the customer want or need the benefit your product offers? As" enough questions to establish whether! f or e # a mp l e ! h e c an d o w h a t h e w an ts to d o with a des"+top computer or a minicomputer. $f his need doesnDt match your product! drop out of the sale and call your friend bac" at the office who can satisfy this customer. And! as" the customer what he wants to do before you present a product. 4o not tell a customer what features your product has before determining whether he needs the benefits of those features. #oes the customer ha$e the authority to purchase your product? This is another question you would never as" directly. ;ut you might as": C / h o w i l l b e t h e me mb e r s o f th e s y s te ms evaluation team?C 5r CHow long is the approval cycle for a re quisition such as this! and who signs it off?C ;ut you must be certain to sell to all levels of an account. Sell technical benefits to the engineers and financial benefits to their managers.

Can you meet the customer%s deli$ery requirements? $f you will have to e#pedite delivery! determine your chances of doing so before investing time in a sale. $f the (ompany cannot shorten its delivery time and if the customer will not e#tend his requirement! you are not a qualified vendor. Sales 'udgment will be necessary! however! in those cases where the customer wants a firm delivery commitment and your quoted delivery is marginal. $f you ma"e the commitment! you are the one who will have to ma"e it come true. #on%t promise anything unless you are perfectly certain you can deli$er. /hat if several people on the line get the flu? /hat if the weather delays receipt after shipment?

5bviously! some things necessary to ma"e that commitme nt are be yond you r control. $f a missed delivery commitment is a great inconvenience for a customer! you may lose good will and future business. /hat other tools can you use to handle urgent delivery requirements? (an you sell the customer a demonstrator? (an he rent one from a rental company? /hat else can you do to help him?

Should you decide that the downside ris" outweighs the benefit of ma"ing the sale with a marginal delivery requirement! be careful about giving the customer the impression that you do not want his business. -ou may lose the sale through faint effort! but let the customer eliminate your company. 4o not eliminate yourself as a qualified vendor. #o you qualify the indi$idual or the account? The ability to qualify customers is the measure of a professional sales representative. $t must be done or you will not be able to allocate time efficiently. ;ut many people influence the purchase of your products who will not meet superficial qualifying tests.

<urses will not specify the equipment that goes into a new intensive care

ward. ;ut their equipment preference is almost always solicited and considered.

A data processing center programmer will have little or no spending authority!

but his software questions have to be ans wered satisfactorily before your hardware is purchased.

$n more comple# system sales or ma'or account situati on s! it is imp ortant to recog niz e that CbuyingC is occurring at several levels. 4ifferent people may be ma"ing technical! financial! and reliability evaluations! for instance. $n such si tu ati on s! it i s th e accou n t w h i ch mu st b e qualified! not each individual. The transition from qualifying to investigating is rarely distinct. Typically you will mi# questions about the customer and about the application! but each activity has a different ob'ective.

STEP $5 IN#ESTIGATION Successful sales representatives have established a counselor relationship with their customers. 5ver time! the customers have learned to e#pect technical

advice and insight from good company representatives. This e#pectation differentiates them from many other salespeople who call. A proper investigation is what ma"es this counselor relationship possible. $f the custome r i s g oin g to acce pt ou r re commen dati on s ! he must believe we understand his problem.

C&r. 3radeep! can you tell me more about your application?C C(an you ma"e an estimate as to when you might be e#panding this system?C The essential point of the investigation is to recognize that both the salesperson and the customer may have needs that are met in this stage of the sales process. + The sales representative may need the information for which he is as"ing. G And! the customer may need the flattery he feels when as"ed questions.

The professional s"ill comes in ta"ing enough time to as" questions for the customerDs benefit when you already "now the answers! or thin" you "now them. How do you ma"e the transition from the in vestigation stage to the presentation? Again! if it is necessary that the sales interview be interrupted for applications research or because of time constraints! establish a mutual commitment and agree to meet later. or instance: C;ased upon your description of this application! &r. 3radeep! $ thin" our new computer will have sufficient memory. ;ut $ would li"e to chec" with my applications specialist bac" at the office before $ commit to that. (an we do this? $Dll research the memory question. A n d ! i n t h e m e a n t i m e ! w i l l y o u f i n d o u t whether your financial people would rather lease or purchase?C The intention in this technique is to get the customer personally involved in the sale and committed to seeing you again! if you must leave.

STEP (5 P)ESENTATION

The purpose in presenting your product is to arouse your customerDs desire for it and to build conviction in him that the product will benefit h i m or h i s comp an y. S u p p ose you r comp an y man u factures high+technology electronic products and there is a strong temptation to tal" about that technology. -our sales representatives should resist that temptation. 4o not only fill your presentation with facts about technology. 2et it also overflow with enthusiasm and statements that communicate to the customer how much better off he will be after he buys your product. 3resent the product in terms of benefits that fill the customerDs needs. A product is a solution to a customerDs problem! and this is an ap propriate time to restate the features and benefits of your product. An effective presentation must be enthusiastic. ;uying is an emotional process and the salespersonDs enthusiasm will be communicated to the custome r. 4onDt be f alse or arti fi ci al . $n f l a t e d ! o v e r + e m o t i o n a l s t a t e m e n t s t u r n o f f cu stome rs. ;u t i t i s e asy to pu n ctu ate y ou r p re sen tati on with little statemen ts such as: &Here is a neat feature' (ee what the instruments will do for you when you press this button'& Rather than C < o w ! p r e s s i n g t h i s b u t t o n w i l l r e + s e t t h e memory.C 5r &!ook at what a good )ob of human engineering the designers did' he front panel is a lot cleaner than the old model. *our people will find this newer one much easier to use.& Rather than C<otice that the front panel has been cleaned up a lot.C Salespeople sometimes hesitate to e#press their enthusiasm because they fear their customers will react s"eptically. 1enerally spea"ing! customers will react negatively when they hear sub'ective opinion e#pressed as fact. 5pinion identified as opinion will rarely be offensive. or :#ample: &I think you will find this a $ery impressi$e machine that satisfies many of your needs.& rather than

C Thi s mach i n e is g re at an d rig h t f or y ou .C

STEP *5 CLOSE $f the preceding stages of a sale have progressed satisfactorily! the close should be the easiest part.

-our customer has a need and you can fill it. He can afford your product. 4 u rin g the p re se n tati on ! h e acq u i re d conviction that he will benefit from owning it. -ou have the conviction that he will be better off after he buys it. <ow all the customer has to do is ma"e the purchase decision. Human nature almost guarantees that he will hesitate because he fears ma"ing a mista"e. The salespersonDs 'ob is to help the customer ma"e that de ci si on . Too of ten both people will si t there and ma"e no progress because of their respective an#ieties! probably researching the application to death. Somebody has to ta"e a decision or nobody is going to ma"e any money. The professional salesperson must recognize a responsibility to assert himself and end the impasse when there is one. 5ne straightforward w a y i s t o s i m p l y a s s u m e t h a t t h e p u r c h a s e decision has already been made: C$t appears you have established that this product satisfies all of your needs. How do we go about getting it ordered by 3urchasing today? And then be quiet. Silence is uncomfortable and y o u r e ve n t u a l l y f i l l i t w i t h an answer. cu st om e r will

There are some other basic closing techniques. -et even a technique as simple as the e#ample above is used too infrequently by salespeople. &any of these salespeople share a common performance problem in failing to assert themselves and as" for the order in some way. They want so much to "eep the customerDs goodwill that they hesitate to ris" raising his tension level. =nfortu nately! that higher tension may be necessary if the customer is going to be motivated to complete a buying cycle. Tension is usually unavoidable in ma"ing

significant purchase decisions li"e those customers ma"e. $n fact! it often helps salespeople to recognize the benefit the customer g e t s w h e n a s a l e i s c l o s e d . Th e c u s t o m e r D s tension and unease will decrease after he has made the decision necessary to solve his problem! and he feels better. (losing may thus require a salesperson to do some aggressive things that deliberately raise the customerDs tension level and motivate him to ma"e his purchase decision. -et a salesperson must be careful that his internal aggressiveness does not manifest itself in the "ind of aggressive behavior which ma"es the customer re act so defe nsivel y that he i s n ot wel come bac". :#ternal aggressiveness which is perceived as being abrasive or threatening will rarely build mutual commitment or long+term relationships with customers. $nstead! it is usually resented. Closing requires a fine balance of asserti$e beha$ior, neither too asserti$e nor too passi$e. > ;eing assertive means acting in a firm! forthright manner. $t includes the determined! effective persistence that may be required to encourage some customers to ma"e the decisions which they need to ma"e. > ;eing outwardly too assertive will often i rri tate soph isti cate d custome rs in the industry and ma"e it difficult to see them again. And being too passive will rarely get the order. This balance of assertiveness will depend upon the individual customerDs reaction to the salesperson. The point at which the customer will react defensively to the salespersonDs assertiveness depends upon his culture! personality! and environmental stresses. Typically! new salespeople could be far more assertive and rarely offend their customers. These salespeople should have more confidence in their customers0 customers "now salespeople are there to get the business. -our ob'ective as a salesperson should be to close at the threshold of the customerDs tolerance for assertive behavior without e#ceeding it. ;eing able to detect that threshold is one part of the customer sensitivity that salespeople acquire with e#perience. 5f course! you may have to loo4 for that threshold a few times before you learn how to sense it. A<TE) T E SALE 3ost sales support of the products you have sold is also an important activity for a salesperson. -ou must insure that the customers get the performance and reliability for which they paid. (ustomers generally purchase our products periodical ly ! an d y ou want to go th roug h th e

sales process with them as often as possible. $t will be difficult getting them through their buying process if they were not satisfied with the performance of a product they bought from you earlier.

Chapter * Negotiation ;hat is NegotiationB <egotiation is the mean by which people deal with their differences. /hether those differences involve purchase of a new automobile! a labor contract dispute! the terms of sale! a comple# alliance between two companies! or a peace accord between warring nations! resolutions are typically sought through negotiations. To negotiate is to see" mutual agreement through dialogue. T&pes o6 negotiations @istri0uti'e NegotiationC A negotiation in which the parties compete over the distribution of a fi#ed sum of value. The "ey question in a distributed negotiation is 8who will claim the most )alue9? $n distributive negotiations! a gain by one side is made at the e#pense of the other. Ke& points to re.e.0er to achie'e success in @istri0uti'e negotiation C9the first offer can become a strong psychological anchor point! that one sets the bargaining range. The negotiation outcomes often correlate with the first offer. So start at the right place 4o not disclose any significant information about your circumstances $nformation about the other side can benefit you. 2earn as much as possible about the other side%s circumstances and preferences 4on%t overshoot. $f you claim aggressively or greedily! the other side may wal" away. -ou will have lost the opportunity to ma"e a deal Integrati'e NegotiationC9

 A negotiation in which the parties cooperate to achieve ma#imum benefits by integrating their interests into an agreement. These deals are about creating values and claiming it $n $ntegrative negotiation your tas" is twofold: *A To create as much as value for you as well as for the other side. ,A To claim value for yourself. Ke& points to )e.e.0er the Integrati'e Negotiation 3rovide significant information about their circumstances :#plain why they want to ma"e a deal Tal" about their real interests or business constraints Reveal and e#plain in general terms their preferences among issues or options (onsider and Reveal any additional capabilities or resources they have that might meet the other side%s interests and could be added to the deal =se what they learn to find creative options that will meet the interests of both the parties to get the greatest e#tent possible Concepts o6 Negotiation Any successful negotiation must have a fundamental framewor" based on "nowing the following: + The alternative to negotiation + The minimum threshold for a negotiated deal + How fle#ible a party is willing to be ! and what trade 6 offs it is willing to ma"e ( Ke& Concepts o6 Negotiations ;AT<A @%est Alternative To a Negotiated AgreementA Kno7 &our %ATNA The concept has been developed by Roger isher and /illiam =ry $t is one%s preferred course of action in the absence of a deal Hnowing your ;AT<A means "nowing what you will do if you fail to reach an agreement in the negotiation

 Hnow your ;AT<A before the <egotiation I.pro'ing &our position in the negotiation ta0le $mprove your ;AT<A to improve your negotiating position $dentify the other side%s ;AT<A /ea"en the other party%s ;AT<A -ou might for e#ample! as" Rs. 7I!II!III for your house and agree between yourselves to accept no offer below Rs. JK!II!III. Having bottom line ma"es it easier to resist pressure and temptations of the moment. $n the house for e#ample! it may be impossible for buyer to pay more that Rs. JJ!II!III and everybody involved may "now that you have brought the house for Rs. J*!II!III. ;ut if you have strong ;AT<A then you have opportunity to crac" the deal.

)eser'ation Price Also Hnown as the 8wal" away price9 Reservation price should be derived from your ;AT<A 4on%t enter a negotiation without a clear reservation price :#ample: -ou are currently paying Rs ,I per square foot for the suburban office space . The location is satisfactory and you believe that the price is fair! but you wouldn%t mind paying more to be closer to your downtown customers. /hile preparing to negotiate with a commercial landlord for an office lease in a downtown high+rise! you decided that you would not pay more than Rs .I per square foot. That8s &our reser'ation price. $f the landlord insists on more! you can stay where you are at Rs.,I per square foot @your ;AT<AA. At the end of a lengthy negotiation session! the landlord declares that he will not accept less than Rs. .7 per square foot 6 and he won%t budge. -ou graciously terminate the negotiation and wal" away from the deal

FOPA GFone O6 Possi0le Agree.entH L53A is the area or range in which a deal that satisfies both parties can ta"e place $t is the set of agreement that potentially satisfy both parties :ach 3arty%s reservation price determines one end of the L53A.

A buyer has set a reservation price of Rs 7,!M7!III for the purchase of a commercial warehouse . 8That%s as high as $%m willing to go!9 she tells herself. <aturally! she would prefer paying less . =n"nown to her! the seller has set a reservation price of Rs 7I!II!III That is the least he%ll ta"e for the property . The L53A! therefore! is the range between Rs.7I!II!III and Rs.7,!M7!III. The two parties might haggle a bit in reaching agreement ! but an agreement in this range would satisfy each. ;uyer : /hat would you say to an offer of Rs. 7*!II!III? $ could agree to that. Seller : Than"s ! but $ believe that the building is worth more and $ can get more if $ wait for a month. ;uyer : -ou may or you may not .$ would be willing to pay Rs 7*!M7!III Seller : 3ay Rs 7,!II!III and it is yours ;uyer : $ agree to pay Rs 7,!II!III #alue Creation Through Trades The negotiating parties can improve their position by trading the values at their disposal 6 1etting what one wants in return for something it values much less ;oth parties often emerge as winners or a supplier ! an e#tended delivery period can be useful whilst the customer may need the delivery in a phased manner /arranty for the customer is valued very high whilst the supplier can do it for a small incremental cost /or" from home office two days each wee" can mean a lot to a wor"ing mother whilst it comes at no cost to the employer Su..ing up Ke& Concepts ;AT<A is the best alternative to a negotiated agreement . $t is one%s preferred option in the absence of a deal . Hnowing your ;AT<A means "nowing what to do if you fail to reach an agreement . 4on%t enter a negotiation without "nowing your ;AT<A. $f your ;AT<A is wea" ! do what you can to improve it . A strong ;AT<A improves your negotiating position. $dentify the other side%s ;AT<A. $f it is strong! thin" of what you can do to wea"en it. Reservation price is the price at which the rational negotiator will wal" away. 4on%t enter a negotiation without a clear reservation price. L53A is the zone of possible agreement. $t is the area in which a deal will satisfy all parties. This area e#ists when the parties have different reservation

prices. Home buyer willing to pay Rs 7,!M7!III and the seller is willing to part with the home at a minimum price of Rs 7I!II!III. )alue (reation through trades is possible when a party has something he or she values less than does the other party and vice versa. ;y trading these values! the parties lose little but gain greatly. The Negotiator8s @ile..a The <egotiator%s 4ilemma describes the situation faced by people who enter any type of bargaining situation. They must determine which game to play *A aggressively claim the value currently on the table @and possibly come out as a loserA which is the type of distributive negotiation! or ,A /or" with the other side to create even better opportunities that can be shared! which is the type of $ntegrative <egotiation. 4on%t ;argain over position $t should produce the wise agreement! if the agreement is possible $t should be efficient $t should improve or at least not damage the relationship between the parties :ffects of ;argain over position Arguing over position produces unwise agreement Arguing over position is inefficient Arguing over position endangers an ongoing relationship /hich 1ame to 3lay ;eing nice is 8 <5 A<S/:R9

Chapter + Negotiation Strategies Soft 3ositional ;argaining :+ emphasizes the importance of building and maintaining a relationship Hard 3ositional ;argaining :+ emphasizes on wining the negotiation and does not focus on maintaining the relation or win+ win situation

So6t 3articipant are friends The goal is agreement &a"e concessions to cultivate the relationship ;e soft on the people and problem Trust others (hange your position easily

ard 3articipant are opponents or enemy The 1oal is victory 4emand concessions as a condition of the relationship ;e Hard on the people and problem 4istrust others 4ig in to your position

&a"e offers Accept one+ Sided losses to reach agreement $nsist on agreement -ield to pressure

&a"e threats 4emand 5ne sided gain as the price of agreement insist on your position Apply pressure

;alanced negotiations is the &id /ay approach

PrincipledA %alanced Participants are pro0le. sol'ers The goal is 7ise outco.e reached e66icientl& Separate people 6ro. pro0le.s %e So6t on People and ard on pro0le.

Proceed independent o6 trust <ocus on interest and not on positions E=plore interest In'ent options 6or .utual gains Insist on using o0?ecti'e criteria )easons and 0e open to reasonsI &ield to principle1 not pressure

The 3rocess of <egotiation:+ <egotiation is a process and not an event $t is a multi+faceted business transaction

 The process consists of various activities under the following five broad stages: 3re+ negotiation Stage (onceptualization Setting the norms 4iscussion N Tal"s Agreement

3re+<egotiation Stage:+ This stage is also called $ntelligenceN $nformation gathering stage. 3lanning is the main focus area at this stage. $t is a critical tool. $t is e#pected to define the broad framewor" for carrying out the negotiation. 3lanning with the end in mind will help you ma"e a comprehensive plan &ost often a comprehensive plan will help you in effective problem solving and thereby achieve the desired ob'ective. 1ood planning for negotiation can lead to better confidence in the negotiation table ive steps to help in planning for negotiation: + 3rioritize and ran" the goals + 2oo" into the priorities of other party + ind out real motivation + 3lan factual inquiries + Euantification of the ob'ectives

3rioritize and ran" the goals:+ 4ecide upon the goals for the negotiation session to ma"e it more result oriented /hat interests are to be ta"en for the discussion .:g .&onetary ! long term relationship. These interests need to be understood by all team members. 5nce the goals are identified! each party should priorities them.

 Thereafter the points can be discussed in that sequence or in order of priority . The hard areas can be discussed first followed by the soft areas or vice + versa. $t should be "ept in mind that negotiation is a process and each party should focus on trading the less important items for secure the more important items 2oo" into the priorities of other party:+ $t is always beneficial to "now the priority of the other party. @values ! needs ! issuesA -our strategy will depend on the priority of the other party -ou strength on the negotiation table will be enhanced ind out real motivation:+ $t is important to tactfully find out the motivationN position of the negotiating party before the negotiation process starts :very negotiator%s way to determine this may be different 3lan factual inquiries:+ $n any negotiation it is important to get important information at the pre+ negotiation stage 1ood negotiators spend a lot of time in as"ing information see"ing questions ! staying curious and alert to uncover the other side%s views of the situation ! facts ! interests and priorities The above e#ercise needs to be conducted s"illfully so that it does not loo" too obvious and ruin your chances to get important information Euantification of the ob'ectives:+ All the ob'ectives should be lin"ed to a monetary perspectiveNquantified 2in"ing the ob'ectives to a monetary aspect or units is required to ma"e it more understandable and enhance the possibility of getting good counter offers Euantification and principled reasoning facilitates the cordial tone of negotiation and helps in arriving at a fair solution (onceptualization stage:+

 After planning it is important to formulate the probable foundation of the agreement 3oints to be considered here are 6 competitive analysis and legal aspects to facilitate basic amicable principles ;oth parties broadly e#change information in a formal manner with regard to views! aims! possible estimations! basic calculations. The size of the team! time! venue are also decided at this stage At this stage the negotiating parties may establish some measures of compatibility amicably A broad agenda is wor"ed out at this stage 3roper conceptualization results in systematic and effective bypass of 8negotiation traps9 Setting the <orms:+ The ne#t stage is 8 setting the <orms9+ stage . Here both the parties should define the norms based on monetary aspects. Setting the norms in itself often becomes a point of negotiation 4iscussionNTal"s:+ <egotiation is a process of dialogue There should not be any change in the pre+decided matters li"e team members! size of the team and the broad framewor". $t is advisable to have a patient approach ! recognize the role of the other person The discussion should be carried out in a decentNdignified manner. $t should be issue based without hurting personal sentiments <o personal defend N attac" should be encouraged (lubbing of issues should be avoided Agreement:+ This is a post negotiations step where the formal drafting of agreed terms and conditions are done This should be done as agreed in the conceptualization stage under the legal aspects

 This agreement will also include the guideline for resolution of any disputes arising in future Some negotiations end with the issuance of a purchase order. The purchase order must include all the monetary aspect as well as the timelines! non+per performance clause etc. Steps of <egotiations Tas"s involved in the negotiation steps <egotiation comprises of various tas"s <egotiation is a process of communication aimed at resolving any sort of problem $t is recommended that one should enter any negotiation with a co+operative approach rather than a competitive approach That there is no set standard process for being successful in negotiations There are only guidelines which can be followed 1uidelines that can be followed:+ Selecting the team members + The size of the negotiation team needs to be "ept small to ensure it is more manageable! easy to communicate and less costly + The team should have a leader along with e#perts in the relevant areas Technical! prices analysis. There could also be a lead negotiator:+

$dentify the "ey ob'ectives and issues of negotiation :+ An issue can be any matter with a potential to create disagreement in the negotiation The disagreement may be due to different information sources used by the parties regarding functional areas such as Audit reports! technical analysis! &$S reports etc. /hile preparing for the ob'ectives ! one must ensure that there should be enough technical support in terms of facts and mar"et "nowledge for each ob'ective followed during negotiation

 $n competitive negotiation! the evaluation of the best price must be based upon various criteria and conditions! li"e level of production! demand e#pected etc. $n non+competitive negotiation. The negotiated best value must adhere to the set government norms in all aspects. $t should be in line with the government%s social targets !because a negotiated deal cannot offer or transfer any right superseding the established law. $dentify the negotiators% possible approach to the negotiation:+ $t is better to understand the rigid framewor" of the constraints. This provides the broad way for proceeding with the negotiations Assessment of strengths and wea"nesses:+ Assessment of the strength and wea"ness of the other party will ultimately motivate to arrive at win+win conclusion. There are some resources which are common for all the involved parties to it ! li"e :time available to negotiate ! importance of the contract and ris" involved in it. :stablishing the negotiation priorities and potential trade+offs or concessions:+ $mportant points can be categorized into groups li"e! avoidable points @issues to avoid during negotiationsA bargaining points @issues open to bargainA! give points @issues open for concessionA and must points @non+negotiable issuesA Trade+offs in both cases of negotiations is helpful in competitive negotiation. The trade off position can be used for evaluating the final proposal offered. $n case of non+competitive negotiation! This can be used for developing counter offers for establishing the tolerance limit for negotiations A reasonable trade+off is possible by answering the following questions: + /hat is a reasonable and acceptable result on the basis of the shared information? + /hat is the reasonable and e#pected outcome on this issue? + /hat may be the least desirable result acceptable? 4etermine an overall negotiation strategy:+ The tactics and its sequences should be pre+decided.

-ou may start from less important and move towards the most important issues of the discussion ! or

 -ou may start from the most important and move towards the less important issues of the negotiation. ollowing any of the above approach is called the building bloc"s approach

Prepare a negotiation planC9 The detailed plan of negotiation should be discussed with all the team members so that the team is on the same wave length and they can contribute effectively. The plan will bring in clarity of the role e#pected out of every team member The team can even plan who steps in when during the negotiation process ;rief your management about the plan:+ The briefing may be formally through a presentation or through informal discussion and inputs ta"en The strategy must be e#ecuted with prior approval of the management 3repare a negotiation agenda:+ A negotiation agenda should includeC + Topics to be addressed along with the order in which they will be discussed. + A general time schedule for negotiating each of the point. + 2ocations of the negotiation schedule + <ames and titles of the team members! with their cell numbers and e+mail ids Points to 0e considered 6or e66ecti'e negotiationC9 Assess the party with whom you are negotiating :valuate the situation and assess the possibility of the parties achieving their goals :valuate the relationship with the negotiating party . 2oo" at past interactionsN negotiations 2oo" at tangible and intangible ta"eaways out of this negotiation (onsider what you definitely want and what you can trade off Assess the best you can derive out of this negotiation

 Assess what you definitely have to achieve out of this negotiation ;e prepared as to how you will handle the issues that will come up during the negotiation 3rioritize issues ;e prepared with all the dataN&$S reports and other important and relevant information before start of the negotiation Assess the negotiating party%s strength and wea"ness and approach to negotiation Assess your strength and wea"ness and what will be your approach to negotiation 3repare the agenda ;ased on the above what should be my strategy $f the negotiation fails what is my alternative

<egotiation Strategies:+ Strategy articulates the negotiators overall plan designed to achieve desired goals. 1etting substantial gain out of the deal is a primary goal of the negotiating parties. There are three negotiation strategies suited for obtaining a beneficial position in a negotiation. Soft Hard ;alanced negotiations 4eciding a Suitable Strategy:+ 4eciding on a strategy for negotiation is important. $t will guide the negotiator in developing a purposeful behavior. 3ossible factors which influence the selection of a specific strategy :

Goals+The selection will be guided mainly by the ob'ectives or goals e#pected to derive a consent upon in the negotiation process. There may be multiple goals. Authorities +The selection of strategy largely depends on the levels of authority conferred to the representative participating in the interaction. Personalit& Pro6ile + The conte#t of e#hibited values in the previous negotiations should be given a prime focus for designing a suitable strategy .$t is observed that most negotiators see" to maintain a coherent personality profile all the time. Counterparts 6 $t is clear that a strategy appropriate for one type of counterpart may be inappropriate for another and e#perience of past interactions will have a say on the strategy. Alternati'es + Hnowledge of 8;est Alternative to a <egotiated Agreement9 or ;AT<A may guide in selecting the negotiation strategy

The Negati'e TacticsC9 <egative tactics can be divided into three categories: + 4eception + (oercion + 3revention 4eception:+<egotiators do adopt deception as a tactic occasionally. This is done to deceive the other party ! and influencing their decision to favour the deceiving party. @&a"e the other party believe in something which is not rightA 4eception is seen as a business tric" . However! if the truth unfolds it may reduce one%s say in the negotiation table. (oercion:+ $t is a method of getting people to do something by force (oercion happens at all levels in the hierarchy Subordinates are normally sub'ected to this situation $t is often seen as direction and not compulsion and hence subordinates are left with little choice in the decision ma"ingN negotiation process but to obey the Senior &anager

 3revention:+This is the third way a party can bloc" the other party in some way. 3revention may occur when a person acts as a gateway to other people or information. This is normally done by refusing to fully and honestly answer the questions @information see"ing questionsA. Negotiation St&les ;elief 5riented Style :+;elief is the basic essential element of this style. $t is strongly recommended that once the understanding among the negotiating parties is reached ! they realize that belief is established through a set of behavior and the resistance between the negotiating parties is diluted N minimized resulting in an amicable solution ;elief can be acquired in a phased manner. A belief+based style is perfectly suitable and can be e#ecuted with soft and balanced strategy 3rofessional Style:+ 3rofessional Style is followed specifically in the international bidding negotiations. $t covers a large span of application areas li"e &ergers O Acquisition where the negotiations are carried through a principle negotiating agent. @not necessarily an individual ! can be an organization as wellA. This style is suitable for negotiations in the areas of $ndustrial Relations ! $nternational ;idding ! 3olitical ! Selling and ;uying of firms. <on+3rofessional Style:+ <egotiation can happen within non+professional conte#ts. These negotiations are carried out in an absolutely non+s"illed level. These negotiations are such because they happen in an unplanned manner where the outcome is not defined. This style is suitable for negotiations of the following nature0 4omestic : 4iscussions and arguments at home :very day : :verybody ! everyday

 Hierarchical: 3arent+(hild ! ;oss 6 subordinate etc. Spectrum of <egotiation Styles:+Consideration o6 Sel6 6 5wn interest most important . -our victory most important and not that of the other party. Consideration o6 Others 6 -our values will enforce consideration for others ! which are often based on your beliefs about people . $n this style there are chances of you over estimating the importance of others! thereby prioritizing their well over your own. + :#cessive consideration for others leads in offering concessions where you secure the loser%s position. + 5ver doing this @giving away too muchA may even result in you losing important elements of the relationship. + This can result in loss of respect. + Some people li"e being submissive 6 However that is not the way to conduct a negotiation . Hence! stand up to your needs and be assertive . A "iddle ;a& 6 ;etween concession and competition lies balance. + A collaborative negotiation is often seen as a balance negotiation even with competitive elements. + Shared values are commonly used to protect the relationship and ensure fair play.

Chapter , Selling to Superiors Selling to Superiors precisely underlines the set of additional techniques because a superior is one who is greater in quality aspects! ran"! position and status $t is observed that the superior collects all the feature related information through various sources $t is better for the salesperson to understand the reasons behind the involvement of superior in the transaction The seller must go through the following steps *. :#perience Stage:+ $n this initial stage! it is e#pected from the salesperson spare substantial time and conduct a study to understand the buyers need ,. Assessment Stage:+ Assess the requirements in terms of quality! cost! stoc"ing and lead time .. )alue (reation:+ Suggest actions! process! provide references and add a substantial value which will guide the buyer in all terms J. J. Role e#tension:+ e#tend your role constructively till the result is ensured 4irect and indirect function *. The profit function:+ Any seller must have profitable customer relationships if he wants to survive long term ,. The )olume function:+ Sellers are interested in certain quantity of product they sell and not only profit they made .. The safeguard function:+ To improve the cost+efficiency of the transaction $ndirect function includes: $nnovation! mar"eting! scouting and access function Selling to superiors can be fruitful e#ercise if following tools are used in a sensible manner Selecting a good team:+ A team comprising of good and sound technical s"ills should be articulated for selling to superiors A single person as a human being does not have an answer for everything

 (ommunication S"ills:+ it is the "ey to handle a great leader. $t is so because in absence of good communication! all other technical advancement will not create any impression on the superior Honesty in claims:+ All the claims must be made strictly on true facts and not 'ust to comply the set norms )isionary Approach:+ $t is suggested not to carry out the sells negotiations not only with price aspects! but seller should gauge the requirements and match the product qualities predicting the future requirements Action spea"s louder than words:+ At different stages of sales! it is but natural to trigger an an#iety or doubt! so the doubt clearing small demonstrations should be accommodated often before even as"ed (onsistency:+ :ffectiveness is impossible without consistency. $t is advised not to change your personal style radically. Heep things simple and consistent (ustomized:+ Try deliberately to accomplish the superior%s personal identity and novelty needs! during the sells procedure 8S:229 &odel This is a simple model describing the various actions associated with the word itself $n this procedure! selling starts with showing features. ;ut note! however! that there is another viewpoint which suggests that staring with feature may turn the process less affective and generate more ob'ections Show feature:+ $t is the very first stage0 e#pected to show the features of the product :#plain advantage:+ $mmediately after showing demonstrating the product! e#plain advantages possibly related with the features of the products 2ead into benefits:+ correlate the advantages with the benefits. This is simply highlighting the materialization of those benefits in conducting the set of activities due to using the product 2et them tal":+ Then at the end! let them tal" further about the product! its feature and those future benefits 8S2A$49 &odel

 Here selling starts with showing demonstration. ;ut note! however that there is another viewpoint which suggests that starting with demonstration may allow the selling to become more dramatic than rational one Show the product:+ Showing the product in full or showing specific function is also possible in the beginning! 'ust to trigger the an#iety in the mind. $t is not a full product demonstration 2isten:+ A partial demonstration flash triggers a lot of questions! or estimates or e#pectations! in case if the product is absolutely new concept .. Ac"nowledge:+ -our hearing will endorse that you have understood! and are ready to fulfill their needs. -ou may be given elaborative further deep information about their ob'ection $dentify:+ $dentify the ob'ections and bring them on squaring off situation with contents offered by your product 7. 4eliver:+ As" the participants to repeat the demonstration to build the confidence about the product performance. 5b'ections will be removed automatically

Chapter Selling to Custo.ers E'er& Sales transaction is targeted at either an indi'idual 0u&er or an institutional 0u&er Selling to custo.er1 speci6icall& address the need o6 .a4ing &ou 6a.iliar 7ith the >ualities re>uired in &ou It is popularl& 4no7n as JC<S8 GCusto.er 6ocused sellingH C<S consists o6 6i'e techni>ues to 0e 6ollo7ed in a stage9 7ise .anner OpenC9 A C<S transaction starts 7ith ta4ing and as4ing 6or an appoint.ent In'estigateC9 The i..ediate ne=t step is to carr& out a speci6ic e=ercise 6or in'estigating their needs5 In'estigation de.ands a lot o6 sharp 0usiness listening PresentC9 It is al7a&s pre6era0le to carr& the product and its literature 7ith &ou as this is a tangi0le presentation Con6ir.C9 %e6ore ?u.ping to the other aspects1 con6ir. 7hether the understanding o6 the product is up to the e=pected le'el

ClosureC9 Closure is a real 0eginning o6 the 0usiness5 A s&ste.atic closure should 0e carried out in a t&pical

The ( P8s Theor&C9

Po7er o6 persuasion is a pro'ed to 0e 0est tool in e'er& e66ecti'e C<S5 The a0ilit& to persuade others .eans .oti'ating the. to do 7hat &ou 7ant the. to do and to li4e it Eou Ko0 is to 0eco.e a0solutel& e=cellent at in6luencing and .oti'ating others to support and assist &ou in the achie'e.ent The 4e& to persuasion is .oti'ation5 People ha'e t7o .a?or .oti'ationC9 25 the desire 6or gain and 25 the 6ear o6 loss There are 6our J8P88 that 7ill enhance &our a0ilit& to persuade others Po7erC9 The 6irst J8P88 is Po7er5 There are 'arious t&pes o6 po7er5 The& are delegated po7er1 4no7ledge po7er1 .onetar& po7er and charis.atic

PerceptionC9 The second J8P88 is perception5 This re6ers to the 7a& &ou or &our product is percei'ed 0& the people5 o7 properl& &ou ha'e ac>uired the share o6 the .ind o6 &our custo.er largel& deter.ines the proper perception Per6or.anceC9 The third J8P88 is per6or.ance5 This re6ers to &our le'el o6 co.petence and e=pertise in &our product8s per6or.ance5 PolitenessC9 The 6ourth J8P88 o6 persuasion is politeness5 ;hen &ou treat people 7ith 4indness1 courtes& and respect1 &ou .a4e the. 7ant to do things as desired 0& &ou5 The& are .oti'ated to go out their 7a& to accept &ou and the& 6ollo7 &our guidance Persuasion "odelsC9 ugh )an4 "odelC9 There are t7o steps in this .odel

25 Intensi6&C9 It can 0e done 0& repetition1 0& association and 0& co.position 25 @o7npla&C9 It can 0e done 0& @i'ersion1 0& O.ission and 0& Con6usion $5 "onroe8s "odelC9 This de'eloped 0& Kohn "onroe in 2/$3s and this .odel descri0es ANS#A "odelC (5 Attention *5 Need +5 Satis6action ,5 #isuali:ation

-5 Action Se>uential )e>uest "odelC9 <oot in the @oor G<IT@HC9 "a4e s.all o66er then increase @oor in the <ace G@IT<HC9 Cause re?ection then .a4e real %ait and S7itchC9 Great o66ers That8s not all GTNAHC9 Add a string o6 0ene6its @isrupt then re6ra.e G@T)H C9 %rea4 the pattern then re0uild di66erentl& <ear then relie6 G<T)HC9 Scare the. then rescue the. Selling the top o6 the line GTOTLHC9 <irst pro.ote an e=pensi'e product5 Then sho7 the. a cheaper product @u.p and Chase G@ACHC9 Pro'o4e o0?ections then negotiate on the.

The JTIN8 Need "odel A Negotiator .ust 4no7 thoroughl& the interconnection o6 these needs5 !nderstanding and recognition o6 the role pla&ed 0& these needs is 'er& i.portant to con'ert the negotiation process an e66ecti'e one Threshold Needs Identi6& Needs No'elt& Needs

Chapter / Selling to Su0ordinates1 Peer Groups & Strategic Selling5 A Peer Group is an association o6 .e.0ers ha'ing appro=i.atel& the sa.e age1 interests and o6 sa.e social status In toda&8s en'iron.ent o6 increasing sales costs and lengthening sales c&cles1 organi:ation are 6ocusing their e66orts to target Peer group

Ad'antages o6 Selling to Peer group Acco..odate the 0us& schedule o6 peers Peers can .anage their o7n learning and de'elop.ent #er& cost e66ecti'e Auto.atic e=pansion Ideal 6or unsought product o7 to design the sales ca.paign It should loo4 to 0e S.art

 Peer 6ocused Allo7 the 0rand engage.ent 7ith the peers Ta4e the 0rand into grape'ine1 and Allo7 to inculcate 7ord o6 "outh <or.ation o6 Peer GroupC9 %e interesting Add Good7ill Keep Contact Strategic SellingC9 Strategic Selling is also "nown as consultative selling Strategic selling e#ists because 6 product and services are more comple#! competition has greatly increased and customer demand for quality! value and service has risen sharply Strategic selling emerged due to the brea"ing of mass mar"ets into target mar"ets

;usiness (onsultant:+ The consultant should has up+to+date "nowledge of business news and current affairs The consultant should have an in+depth understanding of the customer and the industry The consultant or salesperson should be ready He or she should have the ability to listen and collect information

Strategic 5rchestrator:+ The person should have "nowledge of his own company%s structure :#pertise in developing and managing a team Ability to manage priorities and performance

 :fficiency and fle#ibility

2ong Term Ally:+ The person should build interpersonal trust (reate positive image of the company Show concern for customer%s needs for long term relationship 4eliver on promise &odel of strategic selling:+ 3ersonal Sales strategy Relationship strategy 3roduct strategy (ustomer strategy 3resentation strategy

Scope and Application of Strategic selling:+

Review current accounts:+ Analyze current position with regard to the account and the specific sales ob'ective @SS5A Thin" through alternative positions 4etermine which alternative positions would be best secure your ob'ective and devise the action plan to achieve it

Analysis of the sales (lassification of buyers

$dentifying the influences AmbiguitiesNstrengths

 Response &odes &otives behind win results

Chapter 23 %od& Language Things to loo4 6or in Con6ident People 3osture: Standing tall with shoulders bac" :ye (ontact: Solid with a PSmiling face% 1estures with hands and arms: 3urposeful and deliberate Speech: Slow and clear Tone of )oice: &oderate to 2ow T&pes o6 %od& Language Aggressive ;ody 2anguage: A combination of body movements deliberately coordinated for signaling aggressiveness This is the tool for suppressing the opponent party during negotiation

 =nless a sophisticated and professionally mature attitude is used in dealing with such body language! it often leads to the party at receiving end of the negotiation committing mista"es Aggression can be indicated through following body signals *. acial Signals:+ 2i"e disapproving frowns! :yes used for indicating aggression

,. ;ody signals:+ )isible signals through postures Aggressive body 2anguage can be used as a reaction *. eeling of invasion:+ /hen somebody strongly feels that the other person has invaded one%s private and personal space! it is often ta"en as an act of aggression upon one%s privacy

,. 4ilemma about friendship:+ /hen one person moves in space reserved! it is difficult to 'udge that was it a friendly move or aggressive move Other t&pes areL Attentive ;ored (losed Submissive

Gestures There is another set of symbolic actions! "now as gestures and they are equally indicated through body movements $nsulting 1estures:+ 3ointing fingers! Arm thrusts etc.. &oc" attac"s:+ some physical items can be used li"e banging doors! tables or throwing some items etc.. Contri0ution o6 %od& Language in Negotiation <irst i.pression and con6idenceC9 irst impression is very important. $t can show how confident you are or lac" of confidence in you Group8s culture and engage.entC9 A positive body language "eeps the two parties engaged in arriving at an amicable situation! even though there might be technical problems !se6ul in .anaging di66icult situations and .aintaining de6ensi'enessC9 )ery often during the negotiation process! the meeting

may reach an emotionally tense situation! forcing people to adopt a defensive posture and become motivated to ignore the stand of the other Gauging truth6ulness and integrit&C9 :yes maintain little or no eye contact! or there may be rapid eye movements Hand or fingers are in front of his or her mouth when spea"ing His or her body is physically turned away from you @ecoding1 the di66icult tas4 5penness+ 1ood eye contact! leaning forward! uncrossed arms and legs 4efensiveness 6 &inimal eye contact! Rigid body! crossed arms and legs :valuation+ dropping glasses to lower nose! leaning forward! hand on chee" 4eception 6 $ncreased eye movement! forced smile ;oredom 6 3oor eye contact! blan" stare! swinging foot!