What do you want to learn in

SALES AND DISTRIBUTION

MANAGEMENT
this course?
Program : SDM-EPGP
Instructor : Aishwarya.R
Session : 1
Date : 23-05-2022

SELLING • Introduction to selling

• Myths about selling
S1 •
Modules
What makes a good salesperson?
• Hard vs soft selling
• Need for empathy
S2 • Customer heterogeneity
• Theoretical approach to selling-SPIN
• Practising SPIN through role play

• Module 1- Selling
MODULE 1

• Critique of SPIN Model

SELLING and NEGOTIATION I I
• Negotiation-Integrative and distributive
S3 • Value creation, BATNA, Reservation price, ZOPA
• Communication
• Practising Negotiation through role play
S4 •
• Module 2- Salesforce management I I •
•
•
Understanding negotiation styles
Networks and its characteristics
Matching networks to tasks in sales
Irrationality-system 1 and system2 thinking
I

--
NETWORKS, PERSUATION AND
MODULE 2

SALESFORCE MANAGEMENT
• Module 3- Distribution management S5 • Elements of salesforce management-Eureka Forbes
• Selection, motivation and leadership
• Incentives
S6 • Evaluation
• Latest trends in Sales
I

DISTRIBUTION CHANNELS
MODULE 3

S7 • Channel design
• Channel management
• Conflict management
S8

General instructions
• Class participation is encouraged
Evaluation Component Percentage
• Plagiarism in Exam/submissions will be
End term examination 50%
penalized
Class Participation & Case Analysis 30 %
Submissions
Quiz/Assignment 20 %
 Today’s Session
• What is selling?
• Essentials of a good sales person
• SPIN Selling

MODULE 1

SELLING

What is selling? Who needs it?

Selling is used everywhere

• Great leaders are often great salespeople
• Required for any profession
Why do you need it?
 C> Randy GIHbergen I glasbergen.com

Myths you have heard about selling?

• Salespeople are born, not made
• Good salespeople are good talkers
• The good salesperson can sell anything
• A good salesperson can sell to anyone
• Selling is fun and games and travel
• Locker room syndrome
• Get rich quick
• People don’t want to buy
"Obviously, our customers aren't trying hard enought"

Broad expectations for choosing

Career Paths
selling
• High earnings • Career Salesperson
• Quick recognition • Sales management path
• Freedom • General Management path
• Mobility • Entrepreneurial Path

Let’s get started on Selling..

-
Exercise

Sell me a pen SALES AND DISTRIBUTION

MANAGEMENT
Program : SDM-EPGP
Instructor : Aishwarya.R
Session : 2
Date : 6-06-2022
 Let’s get started on Selling..
-Exercise

What Makes a good Salesman?

• Empathy
• Need to conquer
Sell me a pen
Can we predict a good sales person?

Hard Vs Soft Sell Before you start selling..

Hard Sell Soft Sell
• Concern for self • Concern for customer Who is your customer?
• Talking • Questions for discussion
• Pushing product • Listening
• Presenting features • Providing buying How do you segment your
• Advocating without opportunities
acknowledging • Presenting benefits customers?
• Acknowledging needs

Each customer is different

• Agree or disagree?

• Why?
 Reduction
Tension
You are selling Cadbury Chocolates.
Fulfillment and Desires
Behavior Drive Tension Needs, Wants,
Goal or Need Unfulfilled
Describe your customer.

Attitudes
Learning
Perception
Personality

Motivation Process

Word Association Test

• If Cadbury Dairy Milk was an animal, what • What are the words that you would associate
animal would it be? with Cadbury Dairy Milk?
?
?

Picture Interpretation
Sentence Completion Activity
• People who buy Dairy Milk are ……… What is she
thinking?

• Chocolate is……….
• I eat Dairy milk when…….
• If my friend gives me a chocolate, I………
• If people are concerned about the quality of
Cadbury, they ………
 What is the personality of the
customer buying these?

What is your customer’s attitude

Describe the taste of Coke and Pepsi
towards your product?

• Where does attitude come from?Heart, brain

or habit?

Cognitive Affective Conatative

(Think) (Feel) (Act)

To summarize, customers differ on- Model of Consumer Behavior

Consumer
Psychology
• Demographics(age, gender, education, Motivation
Perception
training, experience, income) Learning
Memory

Marketing Other Stimuli

• Psychological factors(Motivation, Perception, Stimuli
Buying Decision Purchase
Economic
Attitude, Personality, Learning, Memory) Product Process Decision
Price
Distribution
Communication
Technological
Political
Cultural
L--------..JIHL--------..JI
Consumer
Characteristics
Cultural
Social
Personal
 ‘Sell me this pen’

Would you now sell the pen any

differently?

https://www.youtube.com/watch?v=nCfntaYBeqs

Your Learning?
Investigate before you show your capabilities

https://www.youtube.com/watch?v=vbQPxhIcFaQ

Steps in Selling
• Finding prospects
• Writing cold emails How does B2B selling differ from
• Making a cold call/getting an appointment B2c Selling?
• Giving a sales demonstration
• Drawing up a proposal
• Closing the deal
• On boarding clients after a deal
 Selling frameworks for B2C Selling Gap selling
• Feature selling • How big is the gap between current and
• Gap selling future state?
• POD selling • Uncover that through investigation
• Benefit selling-Framing problem scenarios
• Story telling
• B2B selling approaches

How do pitchmen do it?

Customer is here

The GAP (Your job)

Future
Benefit selling
state

1
Customer wants/needs
to be here

Discover the value

M¥Hf Solutions

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Reference: Gap selling by Keenan https://www.youtube.com/watch?v=L-WShWOWTS4

Selling frameworks for B2C Selling

• Feature selling
• Gap selling
• POD selling SALES AND DISTRIBUTION
• Benefit selling-Framing problem scenarios MANAGEMENT
• Story telling Program : SDM-EPGP
Instructor : Aishwarya.R
• B2B selling approaches Session : 3
Date : 20-06-2022
 Selling frameworks for B2C Selling
• Feature selling
How does B2B selling differ from • Gap selling
B2c Selling? • POD selling
• Benefit selling-Framing problem scenarios
• Story telling
• B2B selling approaches

Gap selling
Customer is here

The GAP (Your job)

Future
state

• How big is the gap between current and 1

Customer wants/needs

future state? Discover the value

to be here

• Uncover that through investigation

M¥Hf Solutions

----
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aboulltwirainef'lt pres&r11lhesolulion,
youhave:
• :~/1yota.
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Reference: Gap selling by Keenan

How do pitchmen do it?

Benefit selling Selling frameworks for B2C Selling
• Feature selling
• Gap selling
• POD selling
• Benefit selling-Framing problem scenarios
• Story telling
• B2B selling approaches

https://www.youtube.com/watch?v=L-WShWOWTS4
 SOCIAL SELLING AND STORYTELLING
Introduction
• Evolution of Marketing
• Insights from CEOs on Challenger salesmen
• Learning and memory from unique sales
stories
• Human perception is selective. Further, we are
biased due to primacy effect, recency effect
and halo effect
• Inbound vs outbound

Social Selling Purchase via social media

• Using the brand’s social media to connect with

prospects, form a relationship/bond and
engage with potential leads
• A relationship building exercise
• Indirect selling
• Pull selling
e U-34year, e 3S-S4years e SS\'flrsand-•

Developing a social media strategy

Strategy consists of three main parts-
• Content strategy
• Target group
• Platform

SOCIAL MEDIA STRATEGY

 Holistic approach to developing a Holistic approach to developing a
social media strategy social media strategy
• Social listening • Social listening
• Goal setting • Goal setting
• Content Strategy • Content Strategy
• Choosing the target audience • Choosing the target audience
• Choosing the platform • Choosing the platform
• Execution • Execution
• Measurement • Measurement

Content Strategy

• An ideal content is that which receives word

of mouth publicity from key influences in the
industry
• Content has to be compelling
• Content should be
– Matching with the vision and mission of the
organization
– Be unique to the organization
– Resonate with the audience interests

• 70%-everyday content
70/20/10 content approach • 20%-Micromax unite
anthem e~saavn
• 10%-Red bull space jump
• 70%-low risk content. It should be everyday
content for customer engagement

• 20%-medium risk content-It should be

innovative, help develop involvement and
attain scale

• 10%-High risk content-Should be used to

create expectations. Can succeed or fail.
 50-50 content
• Not more than 50% of the content should be
brand related.

• The other 50% should be non-branded and

should be a mix of humour, entertainment,
monthly themes, seasonal themes, product
updates, current affairs, etc

Story telling framework

Elements of a story
• Problem
STORY TELLING • Character
• Context

Story telling-Building an engaging story Build the problem

• Communicate a problem that people care about

• “I’m a marketing consultant.”

• “I offer an integrated turn-key solution to help my clients

get more new clients.”

• “On a fundamental level I help my clients get more new

business. The challenge most of them face is that they’re
the ‘best-kept secret’ in their marketplace. I show them
how to get more referrals by communicating unique sales
stories about what they do.”
https://www.youtube.com/watch?v=xgf8U5OdkG8

Reference-Unique Sales Stories by Mark Satterfield

 - Exercise

- Exercise

What is the kind of story that your

favorite IPL/sporting team is
Tell me a story telling in their youtube/social
media channel?

-
How will you use story telling to
sell this product?
Exercise

- Exercise

Use story telling to introduce

yourself

Stories can be about

What kind of stories can I share?
– How you/organization are doing something different
– How you/organization overcame an adversity
• About yourself – How your customers changed after using your product
– Resolving conflicts
• About your product – Accommodating needs
– Improving service
• About your organization – Showcasing company values
– Going above and beyond
• About your customers –
–
Filling a niche
Finding/proving your place in the industry
– Showcasing hard work
– Charitable focus
– Cautionary stories-lack of security, worse results, working too hard,
catastrophe loss prevention, missed opportunity
– Success stories-better productivity, easier daily activities, improved happiness,
more fulfilling life, better experience

Reference-Storytelling For Sales: How To Master The Art Of Opening The Sales Pitch and Winning The Deal By Learning To Tell Stories |
The Ultimate Guide For Storytelling For Business, Persuade and Make Money by Robert Kynaston
 3-act story structure
• Hero’s journey
• 3 parts-
– A hero ventures forth from the world of common
day into a region of supernatural wonder (x)
– Fabulous forces are encountered and a decisive
Discussion
victory is won (y)
SINGAPORE’S NEW NATURAL HISTORY MUSEUM
– The hero comes back from this mysterious
adventure with the power to bestow boons on his
fellow men (z)

The 3 acts Hero archetypes

• Act 1-situation • The brave hero (brave and headstrong,with a firm belief in
himself/herself)
• Act 2-Complication • The lover (hotblooded and sensual)
• The adventurer (curiosity and daring)
• Act 3-Resolution • The creator (imagination and creativity)
• The joker (humor and joyfulness)
• The innocent (honesty, innocence and a big heart)
• The magician (full of ideas and surprise)
We already know that a story should have a hero, conflict, plot and a message • The rebel (rebellious and uncompromising)
• The ruler (ability to lead, authority and class)
• The caregiver (caring and giving)
• The wise hero (intelligence and expertise)

Protagonist
Primary story types
Comic
Deserving
victim, fool
Tragic
Underserving
victim
Epic
Hero
Romantic
Love object
-Exercise

Other Trickster Villain, helper Rescue object, Gift-giver, lover,

characters assistant, villain injured or sick Apply the 3-act structure, hero archetypes and
person
Plot focus Misfortune or Undeserved Achievement, Love
primary story types to create a story for
deserved
chastisement
misfortune,
trauma
noble victory,
success
triumphant,
love conquers
Singapore’s new history museum
misfortune
Predicament Accident, Crime, accident, Contest, Gift, romantic,
mistake, insult, injury, challenge, trial, fantasy, falling
coincidence, loss, mistake, test, mission, in love,
the unexpected repetition, quest, sacrifice reciprocation,
or misrecognition recognition
unpredictable
Emotions Mirth, Sorry, pity, fear, Pride, Love, care,
aggression, anger, pathos admiration, kindness
scorn nostalgia
 Storytelling when your brand is in
trouble
• What should your story talk about during
Post class reading
• https://www.forbes.com/sites/celinnedacosta/2019/01/31/3-reasons-why-brand-storytelling-is-the-
future-of-marketing/?sh=6c20370055ff

crisis?
– Values
– Transparency
– Honesty
– Genuinity
– Progressiveness
– Quickness
– Fairness

Selling frameworks for B2C Selling

• Feature selling
• Gap selling
• POD selling SALES AND DISTRIBUTION
• Benefit selling-Framing problem scenarios MANAGEMENT
• Story telling Program : SDM-EPGP
Instructor : Aishwarya.R
• B2B selling approaches Session : 4
Date : 3-07-2022

Any other frameworks that your organization uses?

B2B selling frameworks

• Investigative selling
– SPIN
B2B selling • Challenger salesman
• Value selling
• Consultative selling
 Stages of a call Stages of a call

□~
...------------
Opening/Preliminari Opening/Preliminari
es es

Investigating
Investigating Investigating
Investigating

l
Demonstrating
Demonstrating • Offering your solutions Demonstrating
Demonstrating • Offering your solutions
and capabilities to the and capabilities to the
capabilities
capabilities
customer
capabilities
capabilities
customer

l
Obtaining Obtaining
commitment commitment

Investigation Questions
• Asking questions • Open Ended
• What’s so great about questions? • Close-ended
– Gets the buyer talking
– Control attention(giving vs seeking behavior)
– Questions persuade, reasons don’t
– Questions uncover needs

Investigating
• Implied needs
What are the questions you will • Explicit needs
ask while selling a pen? • Implied needs are more determinant in small
sales
• Explicit needs are greater predictors in larger
sales
 The seller uses
SPIN SELLING
S
SITUATION
QUESTIONS
How to ask situation questions
To establish a context

Leading to
PROBLEM
So that…
The buyer reveals • Limiting the number of questions
P QUESTIONS
IMPLIED NEEDS

• Phrasing to make it like you are a problem

Which are developed by solver rather than a prosecutor
IMPLICATION
I QUESTIONS – Linking your questions to
…which make the buyer feel the problem more clearly and acutely – buyer statements
Leading to So that…
N®
NEED-PAYOFF the buyer states EXPLICIT NEEDS
– personal observations
QUESTIONS

BENEFITS
l
Allowing the seller to
states
– third-party situations

Which are strongly Figure: The SPI N® model

related to sales success !

Research on situation questions

• Not positively related to success
• Successful calls have less situation questions
• Inexperienced people ask more situation
questions
• Must be used carefully
• Buyers become bored if asked too many PROBLEM QUESTIONS
questions

Product or Service: Micropump Buyer Type: Research Laboratory

Problem questions
Characteristics of
Product/Service
• Probes problems, difficulties or Exact Chamber capacity
dissatisfactions
Titanium construction
Problem It solves for This Buyer
Labs find it hard to measure the exact amount of
additive in formulations. Precise chamber capacity
lets them do this without additional meters or
instrumentation.
Conventional steel pumps are damaged by corrosive
liquids such as concentrated acids. The Micropump
can handle corrosive that would otherwise have to
be metered manually with risk of spillage.

Silent Operation Noise is a problem in labs when technicians often

Modular Construction
dictate notes and readings of results. The low noise
of micropump makes it easier to dictate instrument
readings and notes.
Cleaning conventional pumps takes up to half an
hour. Micropump’s modular construction allows
cleaning in less than one minute, saving time and
cost.
 often the ones that will make or break sales.

One of Your Products or

Services
At least FIVE problems it solves for a buyer
-Exercise
Think of one of your own products or services in problem solving terms. Try to think
of at least five problems it solves. And look for less obvious problems because they are Product or Service Problems It Solves for a Buyer
-
Exercise

A Rolls-Royce

A video game

A tie with a picture of

Rajnikanth on it

Summary on situation and problem

Research on Problem questions questions
• Experienced people ask higher proportion of
• Effective calls generally begin with situation questions to
problem questions uncover necessary background information. Too many
• Problem questions are more strongly linked to questions can bore or irritate the customer
success than situation questions
• Experienced people quickly move to problem questions,
• In small sales, the link is very strong which probe for problems, difficulties or dissatisfactions.
• In large sales, no evidence Problem uncovers implied needs and are more effective than
situation questions

Situation and problem Questions

You are a travel agency that offers a variety of discount packages for
-Exercise

How do pitchmen do it?

business prospects and you have a prospect-a consulting firm whose

employees travel frequently for business.

• As a salesperson for the travel agency, what specific information

would you need to know about your prospect’s current situation?

• How much of this information do you think you could find through
research? What specific situation questions would you be likely to
ask?

• What specific problem questions will you follow that up with?

https://www.youtube.com/watch?v=L-WShWOWTS4
 Implication questions
• What is the implication of the problem to the
business?
• Strongly linked to success in larger sales
• Builds up the perception of value
• Harder to ask than situation or problem questions
• Very effective when selling to decision makers
• Powerful in high-technology sales-because of high
risk perception
IMPLICATION QUESTIONS • Socrates’s method
• Strength and danger in this method

SALES CALL
Seller: (situation question) Do you use Contortomat machines in this division ?

Buyer: Yes, we’ve got three of them.

Seller: (Problem question)And are they difficult for your operators to use?

Buyer: (Implied need) They are rather hard, but we’ve learned how to get them working.

Seller: (Offering a solution) We could solve that operating difficulty for you with our new Easiflo
system.

Buyer: What does your system cost ?

Seller: The basic system is about $ 120,000 and….

EXAMPLES
Buyer: (Amazed) $120,000!!! Just to make a machine easier to use! You must be kidding.

PROBLEM AND IMPLICATION QUESTIONS

Cost Outweighs Value Operator
Expensive to train
dissatisfaction (ask if
operators (ask about
it’s leading to turnover
their training costs)
problems)
POTENTIAL
~

PROBLEMS
'~'

IMPLICATION IMPLICATION

Existing machine is
hard to use
CD
C:
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er
0

C:
-<
-

IMPLICATION IMPLICATION
:r
0.
~

~
"'

V>
0-

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o
0
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Could mean that not

enough people are
If it’s hard to use, then
Seriousness Cost of qualified to operate it
they may have output
of problem solution (ask about things like
quality problems (ask
overtime costs,
about scrap levels)
recruitment
difficulties)

Planning Implication Questions

Seriousness of problem outweighs The value of a shoe nail
cost of solution
“For the want of a nail the shoe was lost,
For the want of a shoe the horse was lost,
overtime costs For the want of a horse the rider was lost,
For the want of a rider the battle was lost,
Turnover
For the want of a battle the kingdom was
lost,
$ZS,000 training cost
And all for the want of a horseshoe-nail.”
Hard to use
FifiH·■ ― Benjamin Franklin

Seriousness Cost of solution

of problem

Planning implication questions

Practicing Implication questions -
Exercise

1. Write down a potential problem the customer is likely to have.

• What are the implications for the problems
you have identified for the chosen product?
2. Then ask yourself whether that problem might lead to other related difficulties.

3. Write down each of the related difficulties which could make the original problem
more severe. Then note any questions which these difficulties suggest to you. In
this example, the seller sees that a related difficulty of a machine being hard to
use is that there’s shortage of qualified operators. This, in turn, suggests
implication questions about overtime costs and recruitment difficulties.

Need-payoff questions
Solution centered questions
‘Is it important for you to solve this problem?’
‘Why do you find this solution useful?’
‘Is there any other way this could help you?’

NEED PAYOFF QUESTIONS

Psychology of need-payoff questions Generic need-payoff questions
• Makes the customer’s attention focus on the • Why is that important..?
solution rather than problem • How would that help?
• Creates a positive problem solving • Would it be useful if..?
atmosphere • Is there any other way that this could help
• Makes the customer tell YOU the benefits you?

Which is a better questions? Practicing Need pay-off questions -

Exercise

• Madam, if I could help you save time on this • What are the need pay-off questions you will
operation, would that be useful to you? ask for the chosen product?

• Madam, if I could help you save time on this

operation, what would that enable you to do
that you can’t do now?

The seller uses

SPIN SELLING
S
SITUATION
QUESTIONS
SITUATION QUESTIONS
To establish a context
So that… • About the person:
Leading to – What’s your position?
PROBLEM The buyer reveals
P QUESTIONS
IMPLIED NEEDS – How long have you been here?
– Do you make the purchasing decisions?
– What do you see as your objectives in this area?
Which are developed by – What were you doing before this?
• About the business
IMPLICATION
I QUESTIONS
– What sort of business do you run?
– Is your business growing or shrinking?
– What’s your annual sales volume?
…which make the buyer feel the problem more clearly and acutely – How many people do you employ?
Leading to So that…
– Who are your main competitors?
NEED-PAYOFF the buyer states • About the operations
N® QUESTIONS
EXPLICIT NEEDS
– What equipment are you using at present?
– How long have you had it?
– Is it purchased or leased?
Allowing the seller to
– How many people use it?
states
– What software do you use?
BENEFITS

Which are strongly Figure: The SPI N® model

related to sales success !
 PROBLEM QUESTIONS IMPLICATION QUESTIONS

• Are you satisfied with your present supplier?
• What are the disadvantages of the way you
are handling this now?
• Do these old processes give you service
problems?
• Has time management been a problem for a
while?
• Is it difficult to keep up with the increasing
workload?
• What effect does that have on output?
• Could that lead to increased costs?
• Will this slow down your proposed expansion?
• How would this affect your service levels?
• How would your sales team be affected by
this?
• Would your customers be upset with this
change?

NEED-PAYOFF QUESTIONS

~~
Opening/Preliminari
• How would that help? es
• Why is it so important to solve this problem?
• What benefits do you see? Investigating
Investigating
• Would it be important to know why you lost your last
sales?
• How would a faster response time affect your Demonstrating
Demonstrating • Offering your solutions
and capabilities to the
satisfaction rates? capabilities
capabilities
customer

• How would faster, more accurate accounting affect

your forecasting ability?
Obtaining
• What would more time with your family do for you? commitment

Demonstrating capability
• Giving benefits, solutions and capabilities
• Giving features
• Type A benefits
• Type B benefits

DEMONSTRATING CAPABILITY
 BEHAVIOUR DEFINITION IMPACT
Benefits
On Small Scales On Larger Sales

• Shows how a feature can help a customer FEATURES Describes facts, Slightly positive Neutral or slightly
data, product negative
• Must have a cost saving for the buyer characteristics

• Has to appeal to the ego needs of the buyer Show how products,
ADVANTAGES services or their Positive Slightly Positive
• Must be something you can offer which your (Type A Benefits) features can be used
or can help the
competitors can’t customer

• A benefit gives a buying motive Show how products

BENEFITS or services meet Very positive Very positive
(TYPE B Benefits) explicit Needs
expressed by the
customer
Figure: Features, Advantages and Benefits

Research findings on Benefits

• Don’t demonstrate capabilities too early
• Beware of advantages/type A benefits
• Be careful with new products

OPENING THE SALE

Opening and closing the call Opening the call-larger sales

S: Hello, Mr. C, I am … from ….(establishing who you are)
Smaller Sales
C:You wanted to talk to me about sales training or something?
• Relate to the buyer’s personal interests S:Yes(establishing why they are there)
C:Aren’t you the people who do sales training programme?
• Making an opening benefit statement S: Yes, that’s one of the our products. If you agree, I’d like to talk to you about
Larger Sales whether it might be a useful program for you here in …
C:I very much doubt is. We’ve designed our own training internally and we’re
• Who you are very satisfied with it
S: Then it possible that our program isn't what you need. Would you mind if I
• Why you’re there check that out by asking you a few questions about your present
programme? (establishing the right to ask questions)
• Your right to ask questions
 Research on Call openings
• First impressions and first few minutes of a
sales call
– Some evidence in small sales but much less in
large sales
• Openings which work in small and large sales
• Is one opening better than the others?
– Successful people use a wide variety of openings
CLOSING THE SALE

Closing Research on traditional call closings

• Tactics used to induce purchase or acceptance Does not work-
of the proposition • with larger sales
• Successful sellers close on their fifth attempt • With sophisticated buyers
General advise from sales experts • Where your objective is to maintain an
• Closing techniques are strongly related to ongoing relationship
success Not closing and over-closing are equally bad
• You should use many types of closes
• You should close frequently during the call

Ways to close a call-Larger sale Closing a call-Example

• Focus on investigating • Seller: (checking key concerns): Is there anything else which we need to cover?

•
• Check key concerns Buyer: No, I think we’ve discussed everything

• Seller (summarizing the befits) Yes, we’ve certainly seen how the new system will speed up
• Summarize benefits your order processing and how it will be simpler to use than your present one. We’ve also

• Propose a commitment discussed the way in which it can help you control costs. In fact, there seem to be some

impressive benefits from changing, particularly as a new system would get rid of those

reliability problems which have been worrying you.

• Buyer: Yes, when you add it all up, there’s a lot of value to us from making the change

• Seller: (Proposing a commitment) Then could I suggest that the most logical next step would

be for you and your accountant to come and see one of these systems in operation?
 Becoming a good salesperson
• Pick just one behavior
• Choose safe calls
• Quantity more than quality
• Try at least 3 times before judging

SERVICEBOX CASE

Instructions for role play

• Members 1-3 of every group would be buyers
(Read the caselet about heating contractor) https://app.mural.co/t/iimk3125/m/iimk3125/1656834800522/fb
• Members 4-6 of every group would be sellers c64b53cfc2eaf72bd9223334d17d29ac7add88?sender=u619b8da1
33cb2d1e8a231243
(Read the caselet about Jon Clifford)
• Role play duration-20 minutes
• Ensure you login with zoom id
• Be in a silent place
• Prepare well in advance

Recap of last session

• What is selling?
• Essentials of a good sales person
SELLING AND SALESFORCE • Understanding consumers
MANAGEMENT • SPIN Selling
Program : SDM, EPGP
Instructor : Aishwarya.R
Session : 5
Date : 24-07-2022
 The seller uses
SPIN SELLING
S
SITUATION
QUESTIONS Demonstrating capability
To establish a context

Leading to
PROBLEM
So that…
The buyer reveals • Giving benefits, solutions and capabilities
P QUESTIONS
IMPLIED NEEDS

• Giving features
IMPLICATION
Which are developed by
• Type A benefits
I QUESTIONS
• Type B benefits
…which make the buyer feel the problem more clearly and acutely

Leading to So that…
NEED-PAYOFF the buyer states
N® QUESTIONS
EXPLICIT NEEDS

Allowing the seller to

states
BENEFITS

Which are strongly Figure: The SPI N® model

related to sales success !

Learnings from role play? Critique of SPIN Selling?

OTHER SELLING FRAMEWORKS

Why does SPIN SELLING work? SNAP Selling
• How do Indian movies introduce a hero? K eep It .S.imple Be it,_valuable Always Align Rai se ri oriti es

Make things easy Stand out by being Make sure you're Keep the mos!

• Why did Bahubali become famous?

and clear for your !he person your in sync with your important decisions
customers customers can't customers' at the forefront of
live without. objectives, issues, their mind.
and needs.

• Why is Harry potter well-liked?

Reference book-Snap Selling by Jill Konrath

 OTHER SELLING FRAMEWORKS
Other frameworks
The challenger sale
The Five Profiles of Sales Professionals
• Value selling
'rn :(} 15I • Consultative selling
Hard Work. cw.,..... 11:alati-'iiphilder
• A!IQy1g,onthe
amamle
•Alw•~handltlanmt
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•llulclntrong
cuslom8rad'locates Percentage of high performers • Solution selling
-
•Ooe.-l'tQWUpHslly •Undantandtthe • Generouifngtvlng
• Sell•motl'laed CUIIOm .... 009 . . . ome10helpothan In complex sales by profile
• Enterprise selling
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anddewelepmn • Puat.sthecu•omer

Pi
LouWoN
• Folb.¥11Mr11111llnctl
• Self.assured
• lndllpenderl
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• Rallablfmpondl
• EIIIU"•thaal
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Gartner. Gartner.

Reference: The Challenger sale by Mathew Dixon and Brent Adamson

Additional reading: https://www.pipedrive.com/en/blog/challenger-sales-model#challengersalesmodel

What is Negotiation?
• Means by which people deal with differences

SELLING AND SALESFORCE • What are the negotiation situations which you
MANAGEMENT have been in?
Program : SDM, EPGP
Instructor : Aishwarya.R
Session : 6
Date : 07-08-2022

This money is yours. How will you divide it with the person
sitting next to you?
Many Paths to a Deal
• Distributive Negotiation
• Integrative Negotiation
• The Negotiator’s dilemma
 How will you negotiate a price for this carpet?
Distributive Negotiation
• Parties compete over the distribution of a
fixed sum of value

• “Who will claim the maximum value” is the

key question

• Gain in one side is made at the expense of the

other

Distributive Negotiation Scenario

• Win-lose situation • Acme manufacturing looks to buy from Best
• Value at stake is fixed parts-10,000 switches
• Seller-as high a price as possible • Acme’s procurement manager-$1.75
• Buyer-as low a price as possible • Best Part’s sales manager-$2 per widget

Who wins in distributive negotiation?

Hard Bargainers Integrative Negotiation

• What should you do? • A negotiation in which the parties cooperate
• How will you ask for a price for these books? to achieve maximum benefits by integrating
interests
• Creating value and claiming it
 Scenario
• Acme manufacturing looks to buy from Best
parts-10,000 switches
• Acme’s procurement manager-$1.75
• Best Part’s sales manager-$2 per widget

How will it work in integrative negotiation?

Price Rs. 50/piece

How will you sell these Pollachi coconuts for Rs.50 a piece?

Key Aspects for Negotiation

1. Value creation
2. BATNA-Best alternative to a negotiated
agreement
3. Reservation price
4. ZOPA-Zone of possible agreement
KEY ASPECTS FOR NEGOTIATION

Creating Value Scenario 1

• Key to integrative negotiation

• How will you create/demonstrate value to

your customer?

Customer is trying to negotiate the price of the Apple phone. How will you negotiate?
 Scenario 2 Scenario 3

Samsung Galaxy M30-Rs.13,999 Redmi Note 7 Pro-Rs.13,000 Samsung Galaxy M30-Rs.13,999 Samsung Galaxy M30-Rs.13,999
at your local store at Chroma
Customer is trying to negotiate the price of the Samsung M30. How will you negotiate?
Customer is trying to negotiate the price of the Samsung M30. How will you negotiate?

What was the difference in the How do you create value in a

scenarios? negotiation?
• Be creative and think on the spot
• Look for avenues which will give you a gain and a non-loss for the
other party
Scenario 1 Scenario 3 – Forcing them to buy more quantity
– Payment options
– Value adds
– Free services
– Back-end discount for quantity sold e.g. Ritchie street
Highlighting values Creating values
– Annual maintenance contract, e.g. – maintenance of existing defective
machines at 2k per machine
• E.g. Distributor-retailer sales, House negotiations

• BOTTOMLINE-FIND A VALUE. MAKE A SALE. THIS IS THE GOAL

• Do it ethically

The donkey and the horse BATNA

• Customer wants 25 blue ink pens • Best alternative to a negotiated agreement
• You want to sell 40 sketch pens • Consultant meeting a client regarding a month
• How will you negotiate? long assignment.
• Before the meeting considers the best
alternative to a negotiated agreement.
• Alternate work-Rs. 4,00,000
Improving your position using BATNA
• Know Your BATNA
• Improve your BATNA
• Identify other party’s BATNA
• Weaken other party’s BATNA
• Provide Win-win value proposition
Scenario
• Employee comes to you and asks for 6 month
leave of absence. She is fully prepared with
justifications
• How will you use BATNA to negotiate?

Reservation Price Zone of Possible agreement(ZOPA)

• Walk-away price
• Least favourable point at which one will Seller's Wallcaway Position
$4.500 $7,000

I I
accept the deal ~ •ilt:.JHl:.J.ll

• Derived from BATNA. But not always the

same. • i l ;J.l.ll;J.l l

• Rs. 900 per square foot in Palayam for current

$5,000
house VS Rs. 1250 per square foot in Buyer's Wallcaway Position

Kunnamangalam

Integrative negotiation

https://www.youtube.com/watch?v=BbWcaxrVcxY
https://www.youtube.com/watch?v=VQEmIQae5XE
 Role Play
• Keep the following in mind when you
negotiate
– Negotiation skills (Emphasising value, thinking for
the other party, moving toward integrative Both negotiation
negotiation) sides to send me your
– Preparedness (awareness of BATNA, ZOPA,
reservation price/walk-away price) observations
– Communication
– Situation specific criteria-adaptability and
perseverance

5 Negotiation styles
• Competition (win-lose)

i
lmportalc• d
RELA1lONSt-F
Accommodarlng

I---
4.os• towrn

Compromise
CO/laboratlve

Spltttt.t:Mll-ce
Wm•W.n

>-----
– “I win, you lose”. Focus is on outcome and not on relationship.
Distributive.
• Collaboration (win-win)
– “I win, you win”. High focus on outcome and relationship. Requires
more effort from both parties. Integrative negotiation.
• Compromise (split the difference)
Avoiding Competitive – “I win/lose some, you win/lose some”. Somewhere inbetween
Lo•.-.OH w,, .,.,co.,, distributive and integrative negotiation.
""'1Lou
Low • Accommodation (lose-win)
• - - - - - lmportanc:ed--- ,..,
– I lose, you win. Focus is on relationship. You agree to distributive
OUTCOME negotiation with focus on future relation.
• Avoidance (lose-lose)
– “I lose, you lose”. You don’t care about outcome or relation. Neither
distributive or integrative.

Source: Negotiation Styles (Copyright 1996, Roy J. Lewicki and Alexander Hiam)

Some negotiation tactics to use/be

Importance of communication
aware of
• Politeness • Foot-in-the door technique
– Start with a small initial request and then scale up
–
•
https://www.psychologistworld.com/behavior/compliance/strategies/foot-in-door-technique
Humility
• Door-in the face
• Pleasing Personality – Start with an unreasonable request and then follow up with a more reasonable request

• Product awareness-e.g. Prayer for money and • “Take it or leave it”

– Use this if you are into hard bargaining
expensive vehicle • Using bogeys
• Speak soft but have persuasive arguments – Make the other part feel that you care about an issue that is important to them. This makes the other party feel that they should
do the same for you. Uses the principle of reciprocity.

• Always speak for the customer • Make it personal

–
•
Use personal experience, and emotion to connect with the other party.
Best negotiations take place when both parties think
• Ask questions
about value for each other – Helps you understand the motivation of the other side. Also helps you buy time to think.

• Speak the same language when you sell. Avoid • Using behavioural theories
–
speaking the same language when you buy/negotiate. Anchoring, mental accounting, prospect theory, decoy effect, endowment effect to your advantage

• Good cop-Bad cop

– In a two person negotiating team, one would be reasonable while other will not be
– https://www.pon.harvard.edu/daily/batna/the-good-cop-bad-cop-negotiation-strategy/
 Some negotiation tactics to use/be
aware of
• Lack of authority • Snowjob
– You/your counterpart cannot make decisions
– Overwhelming the other party with information. It
• Deadlines
- Creating a deadline that pressures the other party into making a decision
confuses them about what is important.

• Low balling/Hard balling

– Opening the negotiation with an extremely low or high offer in the hope of making the
other party reconsider their reservation price and goal.
– Counter this by calling them out on it, or asking them to justify the price, or using BATNA
based arguments

• Nibble
– At the end of the negotiation, one party will ask for a small concession that was not
discussed earlier. The other party might be worn out after the negotiation and might
consent.

AMA’s survey on most common Some successful negotiation

negotiation techniques used examples
• Highball/Lowball – an extremely high or low offer (29%)
• Bogey – pretending a particular issue is important (17%)
• Snow Job – overwhelming you with too much information (12%)
• The Nibble – asking for a small concession that wasn’t discussed
(11%)
• Lack of Authority – your counterpart cannot make decisions (11%)
• Good Cop/Bad Cop – one negotiator is reasonable, the other is not
(8%)
• Deadlines – creating a deadline that pressures you into a decision
(6%)
• The Brink – the “take it or leave it” approach (6%)

Source: https://www.amanet.org/articles/the-5-most-common-negotiation-tactics-and-how-to-counter-them-ama-research/

Summary of successful Negotiation Summary of negotiation

• What is negotiation?
• Value Creation, Value creation, Value creation!
• Types of negotiation-distributive (win-lose) and integrative (win-win)
• Use BATNA, ZOPA, Reservation prices for • Keys to distributive negotiation-starting with a strong position, ‘leave it or
take it strategy”, high/lowballing
effective value creation propositions • Keys to integrative negotiation-value creation, BATNA, ZOPA, Reservation
price
• Styles in negotiation-integrative (collaborating, compromising),
distributive (competing, accommodating) or avoiding
• Communication, patience, politeness matters
• Tactics to use/watch out for-low/hardballing, use of authority, ‘take it or
leave it’, foot in the door, door in the face, nibble, bogey, deadlines, good
cop-bad cop, behavioural negotiation, getting personal
 Readings for Negotiation
• Read the articles uploaded in the LMS

• Books for additional reading

– Negotiation (Harvard Business Essentials) by Richard SELLING AND SALESFORCE
Luecke
– Crucial conversations by Kerry Patterson, Joseph Grenny, MANAGEMENT
Ron McMillan, and Al Switzler
– Influence by Robert Cialdini Program : SDM, EPGP
– Getting to Yes by Roger Fisher, William L. Ury, and Bruce Instructor : Aishwarya.R
Patton Session : 7
– Never split the difference by Chriss Voss (Offers a counter Date : 14-08-2022
perspective to ‘getting to yes’)

Summary of successful Negotiation Importance of communication

• Value Creation, Value creation, Value creation! • Politeness
• Humility
• Use BATNA, ZOPA, Reservation prices for • Pleasing Personality
effective value creation propositions • Product awareness-e.g. Prayer for money and
expensive vehicle
• Speak soft but have persuasive arguments
• Always speak for the customer
• Best negotiations take place when both parties think
about value for each other
• Speak the same language when you sell. Avoid
speaking the same language when you buy/negotiate.

Persuasion using Irrationality

Why do we behave irrationally?

PERSUATION

System 1 and System 2 thinking
• System 1 consists of thinking processes
that are intuitive, automatic, experience-
based, and relatively unconscious
• rooted in impressions arising from mental
content that is easily accessible
System 1-
Home of Heuristics
• System 2 is more reflective, controlled,
deliberative, and analytical
• System 2 monitors-often unsuccessfully

Heuristics-Mental shortcuts to make decisions

Framing Anchoring and Adjustment heuristic

Which option will you choose?
• Consumers change the way they perceive based on the way
the information is framed.
• Will you prefer price discounts or bonus packs?
• How will this change for vice vs virtue products?

$ 50 Now $ 35 $ 55 Now $ 35
A B

Consumers adjust decision based on addition information which serves as anchors

Currency based reference

e pricing Which one will you customer prefer?
• 50% off of an item that retails for 100 dollars
• 10% off of an item retailing for 55 dollars
 Anchoring and Adjustment heuristic
Regulatory Focus theory
• Consumers want to avoid pain and gain
pleasure
Will you buy this product if it costed XX?
• Prevention focus
What is the maximum you are willing to pay?
• Promotion focus

Mental Accounting
Tendency to categorize funds or items of value even though there is no logical
basis for categorization

Which Scenario will you choose?

1.You spend Rs.2500 for a ticket to a concert. As you arrive for the show, you realize
you have lost the ticket. You decide to buy a replacement.

2. You decide to buy a ticket to a concert at the door. As you arrive at the show you
realise you have somehow lost Rs.2500 along the way. You decide to buy the ticket
anyway.

Get Rs.100 OFF on this T-shirt worth Rs.400 Save Rs.100 on this T-shirt worth Rs.400

llluoln1...,,IDJohanJamncadllhoROJals-dtot>kadomyolSctencn

Mental Accounting Attraction Effect/Decoy Effect

• People treat money differently, depending on factors such as the money’s
origin and intended use, rather than thinking of it in terms of the “bottom
line” as in formal accounting

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• Even investors are susceptible to bias

Choosing an alternative after a more inferior option is introduced

• Banks use this for creating different types of savings accounts
 Consideration Set 1
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price $400 $300 $350
storage 30GB 20GB 15GB

Prospect Theory
• Consumers frame their decisions based on loss and gains
Prospect Theory
Scenario 1: You have $1000. Now, which do you choose?
- Exercise

a. Winning $1000 with a 50% probability (and

• Consumers are loss aversive. Losses loom larger than gains
winning $0 with a 50% probability), or
Value b. Getting another $500 for sure.

Gains Scenario 2: You have $2000.Now Which do you choose?

- - - - - - ---+- - - - - - -•
Losses
Reference po int
Outcome Rs.1000 gain Vs Rs.1000 loss c. Losing $1000 with a 50% probability (and losing $0
with a 50% probability), or
Kahneman and Tversky
d. Losing $500 for sure.

Which is better? Pet parents In the U.S. wtll spend $15.25 b/11/on • on veterinary care thi s year.
Petplan data shows that every alx seconds, a pet parent Is faced with a vet blH for
more than $3,000. Plus, costs continue lo soar as veterinary medicine becomes IT10f9
advanoad and aitting-edge, life-saving treatments become more widely available. Just

• Item A sells for 1200 dollars with an instant check out these claims we've paid for pet parents just like yout

cash rebate of 200 dollars.

• Item B sells for 800 dollars with an additional
courtesy fee of 200 dollars.

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The costs would make any pet parent have k.lttens1 Lucldly, a Petplan cat Insurance
policy can protect your pet and your wallet. Thars something to purr about!
 The Pain of Paying

Cash Vs Credit Card

When will you spend more?

Tickets Experiment
How much will you sell/buy a lottery ticket for?

ENDOWMENT EFFECT - THE TICKETS EXPERIMENT

Would You Like to Switch? $2,400

COFFEE
~

LOTTERY W I NNERS {HAVE A TICKET) -

FOR HOW MUCH WOULD YOU SELL? -
$175

LOTTERY LOSERS (DON'T HAVE A TICKET)

- FOR HOW MUCH WOULD YOU BUY?

Selling price point was almost 14 times more than the buying one

Will you go with one of these options or customize?

Endowment effect
• The endowment effect is an emotional bias that says that once we own The more uncertain
something (or have a feeling of ownership) we irrationally overvalue, customers are about
regardless of its objective value. their decision, the more
likely it is that they will
• The endowment effect occurs because of two psychological reasons: go with the default,
especially if it is 1.4GHz Quad-Core 1.4GHz Quad-Cora 2.4GHz Quad-Core

• Loss aversion – we feel the pain of loss twice as strongly as we feel explicitly presented as a ProcessorwtthTurbo
Boost up to 3 .9GHz
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• Ownership – we fall in love with what we already have and we prepare to configuration.
pay more to retain something that we already own than we would pay for
an item we don’t own.

It is also shown that we are unwilling to trade something that we already own
in exchange for something of equal value. $ 1,199.00 $ 1,399.00 $ 1,699 .00

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 Do you prefer to add or delete attributes? Status Quo Bias and Inertia
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What's in the Box

-==- Choice Architecture

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Human aversion to change. Caused due to inertia, procrastination, and a lack of self-control

Sunk Cost Fallacy Affect Heuristic

• Individuals commit the sunk cost fallacy when they continue a

behavior or endeavor as a result of previously invested
resources (time, money or effort)

• This fallacy, which is related to loss aversion and status quo

bias, can also be viewed as bias resulting from an ongoing
commitment
Food Preservatives
How do you feel about it?

Good or bad feelings that surface automatically when we think about an object
cloud the judgement

Information Salience High Visual salience makes consumers choose

more healthy options placed near the cashier

99% reliable 1% Failure rate

Which is more attractive?

Information that stands out, is novel, or seems relevant is

more likely to affect our thinking and actions
 How to get more people to save for
Time Discounting
their retirement?

Rs.2000 Now or Rs.2000 one year

Rs.2200 one month from now or
from now? Rs.2200 one year
and one month
from now?

Although the gap is one month in both cases, the value of events that are
farther in the future falls more slowly than those closer to the present
Faceapp
Present events are weighted more heavily than future ones
People who see an age-progressed avatar of themselves more likely to accept
future financial rewards over immediate ones

Herd Behavior

SELLING AND SALESFORCE

MANAGEMENT
Dotcom bubble Program : SDM, EPGP
Instructor : Aishwarya.R
Session : 8
Date : 29-08-2022

People’s susceptibility to social forces

DISTRIBUTION CHANNELS EASTERN CONDIMENTS

 Eastern: Case A
• Was Eastern Successful in Kerala? Why or Why not?
• Was Karanataka a good choice for expansion?
• What are the similarities and differences in the two
markets?
• Why did Karnataka strategy not deliver results?
• Why did the strategy for other regions not work out?
• What should be Eastern’s strategy going forward?
Channels of distribution
• Venue that a company chooses for moving its
products or services out into the world
• Key choices of distribution channels are same
for B2b and B2c
• Except option 1, all options require the wholesaler to
stock goods
• What is the function of each intermediary? Is it the
same?
• Manf has to make a strategic decision
• Manage channel conflicts
• Requires channel stewardship
Eastern: Case B
• What led to the turn-around in Karnataka market?
• Contrast the Kerala model and revised Karnataka
model? What was the focus in each model?
• What happened to the Kerala market? What were
the reasons for the change?
• What can Navas do in Kerala?
A garden tools manufacturer wants to reach
the end consumer. What are the ways?
• Go through a stocking distributor/wholesaler-
>retailer->end consumer
• Manf->broker->retailer-end consumer
• Manf->Retailer
• Manf->end consumer
Channel Stewardship
• Enables a company to design, manage and
evolve its channel strategy in light of the
changes that arise in the competitive and
customer environments
 2 types of decisions in Channel
stewardship
• Design decisions Channel Design Channel Management
– E.g. Which of the 4 options to take?
• Direct vs indirect • Channel influence
• Management decisions • Channel contract • Channel margins and
– E.g. Determining incentives and channel margins • Channel coverage incentives
– E.g. Setting rules that govern the behaviour of • Channel structure • Channel performance
supplier and other channel members • Channel conflict

Can you think of examples for both types of decisions?

Channel stewardship is an integration of all the issues concerning channels

Channel Stewardship Channel Stewardship

1)Mapping the industry channels to get an overall view of the 1)Mapping the industry channels to get an overall view of the
external forces at play external forces at play

2)Building and updating the company’s channel value chain at 2)Building and updating the company’s channel value chain at
the field level the field level

3)Aligning and influencing the roles of the various partners in the 3)Aligning and influencing the roles of the various partners in the
channel system and altering their behaviour when necessary to channel system and altering their behaviour when necessary to
promote a high level of system performance promote a high level of system performance

4 forces shaping an industry channel

1) Mapping the industry channels
• Initial step – Customer wants and needs
• Research and understand the roles of all – Channel capabilities and costs
• efficiency and effectiveness; all combined activities by
external forces at play including what
intermediaries to generate and fulfil customer demand
competitors are doings
– Channel power and influence
• power comes from having a unique product and having
market access/intelligence
– Competitive postures and actions
• everything is relative to what the competitor is doing
 Questions for channel mapping
Customer wants and needs
• What do customers buy, how do they buy, and why do they
buy the products and services offered by various players?
• How do other players in the industry segment their
customer markets?
• What influences have affected customers’ needs and
wants? How have they shifted?
• Are customers satisfied with the output of the existing
channels? What are the gaps in the channel value chain?
Questions for channel mapping
Channel power and influence
• How has the power shifted among the channel
constituencies-vendors, manufacturers, distributors
and retailers?
• What accounts for the various power shifts?
• Who has gained power and why? Who has lost
power?
Beyond the 4 forces
• What are the broad economic trends, and how have they affected
the core forces? How will they change in the future?
• Have there been shifts in customer demographics, psychographics,
socioeconomic or cultural patterns?
• Any changes in the formal and informal rules governing the trading
practices of the channel intermediaries?
• How has technology affected go-to-market strategies?
How was Dell’s strategy different from Apple, IBM or Compaq?
Questions for channel mapping
Channel capabilities and costs
• What are the industry’s broad channel capabilities
and costs? (e.g. speed of delivery, product
assortment, service warranty)?
• How have channel capabilities evolved with time?
• How have channel costs and margins evolved?
Questions for channel mapping
Competitive postures and actions
• What has been the nature of industry competition? How has
it evolved?
• Who is the dominant player? The most profitable? The most
innovative? What are their channel strategies?
• What has been the nature of the competition at the channel
level? How has it evolved? Which is the dominant channel?
Channel Stewardship
1)Mapping the industry channels to get an overall view of the
external forces at play
2)Building and updating the company’s channel value chain at
the field level
3)Aligning and influencing the roles of the various partners in the
channel system and altering their behaviour when necessary to
promote a high level of system performance
 2) Building and updating the channel 2) Building and updating the
value chain company’s channel value chain
• Carving a channel strategy for a chosen • Direct vs indirect
market segment in the industry • Company has to decide whether to sell
directly or through indirect channels
• If indirect, how many levels?
• What are the criteria you will use to decide?

Direct vs indirect decision Other decisions

• Size and distribution of end consumers
– Fragmented and dispersed customer segments are best served by indirect • Channel coverage
channels
• Channel structure
• Nature of product or service
• Complex products are more suited for direct sales – Integrated vs arm’s length approach
• The role and position of the product in the end customer’s purchasing
basket
• Bundled products are better served through intermediaries (e.g. electric motor+capacitor, air
ticket+hotel stay)

• Nature of producer firm

• Indirect channels preferred when firms are young or new

• Business strategy of producer firm

7 step framework for building and

Channel Stewardship
updating a channel value chain
1. Articulate key goals (efficiency, expansion?). Prioritize 1)Mapping the industry channels to get an overall view of the
2. Start with the perspective of end user and identify customer external forces at play
needs
3. Assess capabilities of the company’s current channels in 2)Building and updating the company’s channel value chain at
fulfilling the customer needs the field level
4. Benchmark against key competitors
5. Determine appropriate channel options 3)Aligning and influencing the roles of the various partners in
6. Set improvement goals the channel system and altering their behaviour when
7. Determine the appropriate channel option and channel value necessary to promote a high level of system performance
chain
3)Aligning and influencing the roles of the 3)Aligning and influencing the roles of
various partners in the channel system the various partners

• Each partner/intermediary generally has a vastly
different interpretation of the other’s value-adding
contribution.
• Challenge is to align everyone
• Ensuring that the roles of the various channel
partners evolve continually in keeping with the needs
of the company’s target customers
• Ensuring that rewards and compensation are
consistent with efforts and changing roles

Hard vs soft power in a channel 4-step channel alignment process

• Hard power • Set goals and targets
– Having unique technology/product and brand • Assign channel roles, responsibilities and
– Market access and intelligence rewards
• Measure and monitor performance
• Soft power
– Trust-having confidence in other person’s integrity
• Update and invest in appropriate channel
and reliability capabilities
– Commitment-pledge of continuity and adoption of
a long-term view

3 sources of conflict
• Different agendas-Different roles and goals
– Solution-Align roles and goals.
– Introduce fairness
– Clarify what the goals are

• Different perception-One party perceives the situation differently

than the other
– Solution-Ask for explanation
– Have authentic conversation
– Explain your perspective
BETTER SALESFORCE
• Different social styles-Personality types/work culture do not match
– Solution-Align social styles MANAGEMENT
 Eurochamp
• Who is he/she?
– Profile?
– What is their family and educational background?
Will good salespeople be good – Where do they come from?
• What is their day like?
sales managers -When do they start the day?
-Singing on the sidewalk
https://www.youtube.com/watch?v=9F0gE3QbyiA
-Describe a door knock
Why? -What are the qualities which make a good euro
champ?
-When will a cold call lead to demo?
-From a demo to a sale?
-What is the toughest part of their day?
• Changing performance metrics

Results
• 32% sales growth
• 18% increase in demonstrations
• Cold call success increase by 20%
• Revisiting customer increased by 60% Exercise on problem solving
• More specific training oppurtunities

What is a good salesforce manager’s

Why did I even go
to him with this I went to her with
strength?
problem? My my problem. But
problem has she is just shouting • Be good at problem solving
grown! at me!
– What is the root cause of the problem?
– Is it person specific or situation specific?
Three Categories of Bad Boss
·;. bad boss . •J C01Ald do ·It ·s rn~ 1,1;i~
– Address the root cause
t'le! You reall~
trunl: so! ·
better. I
Just ..,,sh I
or the
h1gkwa~:·
– Enable your subordinate to answer that
\:new howi·

• Find who is good at what and match them to their

strengths

• Hone your subordinates on their strengths

Micromanager boss-
Boss does not care about
your problem
Gets into extreme detail. Forgets his • Be objective about performance
own job.
 Focussing on the present
• Forget about the problems and focus on the present

• The average manager juggles sales goals, tight

deadlines and problems. Most of them work in
BECOMING A COACH AND MENTOR constant fear of failing to meet targets.

• Focus on the present

• Focusing on the process rather than outcome

– No of calls the team is making vs whether the sales
process is working or not
Trust process over outcomes. Open your mind to possibilities

Solving problems vs asking

Coaching
• Jack is a sales manager who, while wanting to become a
stellar coach, got distracted by the idea that every time he
sat down with a salesperson, he had to produce something
of measurable value.
• An employee is happy earning $80,000 a year from sales
commissions. Another team member is earning twice as
much.
• What should Jack do?
questions
• How many of your days are spent like this-
Unscheduled meetings, solving crises, fielding
questions from irritated customers
• How many of you give out a solution to your staff?
• Scenario-Your subordinate has not been able to
convert any sales call today. She has also fought with
one customer. How will you respond?

• ‘Why can’t you get this right?’ Vs ‘how can you do

better next time?’
Good coaches know exactly what each member of their team needs and wants.
Good coaches ask right questions

Encouraging authentic conversations “good work” is not enough

• Make the employee feel comfortable
• Pay attention to what people really do
• Connect in an authentic, open and honest way

• You run a b2b travel sales company. You are going to set a yearly • Give honest recognition
sales target for a newly joined employee at 25 lakhs. How will you
have an authentic conversation to enrol him?

– Connect • “You’ve done a great job handling this new

– Opportunity (Imagine if you could achieve total happiness at work)
– Authorization (would you like to discover how we can do this?) project. You’ve been very patient throughout
– Position yourself (I want you to feel more valued at work) and maintained an optimistic attitude”
– Have a conversation (deliver your ideas and values. Listen to theirs) Give Genuine recognition
– Enroll (Set a schedule)
 Aligning Social Styles Social Styles
Assertiveness Vs Responsiveness
Task Directed People Directed
Responsiveness
Assertiveness
Ask directed Tell directed • Talks more about tasks • Talks more about people
• Speaks deliberately, • Speaks quickly and and facts and relationships
often pausing often firmly
• Seldom interrupts • Often interrupts • Uses minimal body • Uses broad, expansive
others others gestures body gestures
• Seldom uses voice for • Often uses voice for
emphasis emphasis • Shows a narrow range of • Shows a broad range of
• Makes many • Makes many personal to others personal feelings to
conditional declarative others
statements statements • Uses limited facial
• Tends to lean back • Tends to lean forward expressions • Uses varied and open
Reference: The social styles handbook by Tom Kramlinger
facial expressions
Reference: The social styles handbook by Tom Kramlinger

- - ~--__
----·""' __
Social Style Modilicaion Strae~

Task Directed _,...,...,, .. lclonbly_,._~_ .... _............... ,....

Responsiveness """'""_"' . .,,,.....,,,_ ...................
_,, ..__
Analytical Driver

• Focus on facts and logic • Focus on results

• Act when payoff is clear
• Careful not to commit
• too quickly
Ask Directed
Assertiveness
• Cooperative to gain
agreement
• Provide support
• Take charge
• Make quick decisions
• Likes challenges
Tell Directed
Assertiveness
• Create Excitement and
involvement
• Share ideas, dreams

- -
• Communicate trust and and enthusiasm
confidence • Motivate, inspire and
persuade
Amiable Expressive
People Directed
Responsiveness
Reference:The social styles handbook by Tom Kramlinger Reference: The social styles handbook by Tom Kramlinger

Summary of coaching Motivating the salesforce

• Walk the walk of company values
• Trust process over outcomes. Open your mind to • Create opportunities for small steps forward each day
possibilities • Small wins disproportionately boost positive mood, motivation, and
constructive ways of perceiving work challenges.
• know exactly what each member of your team • Track today’s wins and weekly wins
• Reward and recognize sales team publicly
needs and wants • Sales contests (80% of sales executives do goal oriented competitions)
• Ask right questions rather than solving problems • Team building and off-site events
• Allow your sales rep to prioritize(they only sell 1/3rd of the time)
• Encourage authentic conversations • Equip the team with marketing content and collateral
• Brainstorm
• Give genuine recognition • Experiment
• Empower
• Align social styles
 Incentive methods Sales forecasting
• Set a goal and stretch the goal • Top down approach
• Commission tiers
• Commission based on what the customer pays • Bottom up approach
• Pay commissions after customer pays
• Team rewards
• Public display
• Sales performance incentive funds
– Cash vs non-cash
– Bonus
– Keep it simple, transparent, time bound
• Awards What kind of SPIF works for millennials?

10 common mistakes that new sales Latest trends in sales and salesforce
managers make management
• https://blog.close.com/10-most-common- • The role of millennials in the workplace
mistakes-new-sales-managers-make/ – How do we coach millennials?
• Automation and AI
• Micro markets
• Bite sized-sales training
• Integration of sales and Marketing
• Outsourcing sales
Reference: Salesforce.com

Latest trends in sales and salesforce Latest trends in sales and salesforce
management management
• Increased use of social selling
• Account based selling
• Customer service is also a sales rep. It is a revenue centre and not a cost centre
– New business opportunities – 59% already create renewal quotes through CRM

– Improved email response rates • Emerging digital channels(SMS, whatsapp, mobile chat, video)

– Increased revenue • Change in sales metrics-

– Sales volume->Customer experience->Satisfaction->lifetime value of customers->High quality
– Larger deal size customer relationships?

– Shorter sales cycles • Customer use will be more significant than deal size
– Transportation(miles), advertising(clicks), real estate(flexible workspace),
– ABS is suited for large deals, when you know software(consumption)

customers well, longer sales cycle, high value

solutions and subscriptions
 Latest trends in sales and Latest trends in sales and
salesforce management salesforce management
• Enabling customer use more significant than deal close • Engagement based on previous interaction is
• AI requires more sales headcount. 76% are adding
critical for 59% of the customers
more staff • Invisible CRM
– Competition is not from AI but another salesperson who is
trained on AI – Seamless
– No need to enter data
• Chatbots-increasing role. Major lead generation source – Voice enabled
• Amount of time spent selling via virtual channels
– Time spent interacting virtually has increased 3X

• Introduction to selling
SELLING • Myths about selling
•
THANK YOU!
What makes a good salesperson?
S1-S4 • Hard vs soft selling
• Need for empathy
• Customer heterogeneity
• B2C and B2B selling frameworks
• Story telling

• We are now at the end

MODULE 1

• Theoretical approach to selling-SPIN

SELLING and NEGOTIATION • Practising SPIN through role play

of the course
• Negotiation-Integrative and distributive

S5-S6
I I
•
•
•
•
Value creation, BATNA, Reservation price, ZOPA
Communication
Practising Negotiation through role play
Understanding negotiation styles
I • Key takeaways so far?
• Exam pattern
I

• Additional resources
MODULE 2

SALESFORCE MANAGEMENT

- ~
• Any questions?
• Persuasion
• Elements of salesforce management
• Compensation design
S7
I • Salesforce design
I
DISTRIBUTION CHANNELS • Target setting and evaluation
MODULE 3

• Selection, motivation and leadership

• Channel design
• Channel management
S8
I I
• Latest trends
I