Why people buy Effective selling- persuading people to make favorable decisions relating to our products for mutual

benefits The main reasons to buy: Profit, esteem ,envy, convenience, curiosity and fear Each individual may have different reason to buy the same thing For key accounts different levels may have different reason for buying In order to understand the motive for buying questioning, probing and observation is important no!ledge of the motive helps in product design and presentation "uying process # need meets options to gain attention #ttention to interest to desire to conviction and then decision making Therefore one needs to kno! at !hich stage of buying process the customer is presently in Therefore observe, ask questions, listen and process the information to make inferences The selling format is $IF"P %& present the back ground, state the idea, e'plain ho! it !orks, present the benefits and suggest the ne't step While presenting the background identify the conditions: That !ill affect the buying decisions #re in or beyond control (hich !ill make the buyer feel that you understand his situation This !ill get their attention and !ill help tailor the approach Identify or infer !hat the customer wants so that the proposal can be made e)g) discount or cosmetic help for the shop Find out the customers limitations and help him !ith the ones that you can *ighlight the opportunities !hich might persuade the customer to say yes Then state the idea +oing so clarifies that you have understood the situation at hand Explain how it works The customer should have a clear understanding of ho! it !ill help Present the features & benefits Features are characteristics of the proposal e)g) putting up a shelf "enefits are !hat the customer gets out of the proposal e)g) increased sales ,ustomer accepts the proposal for the benefits Finally close the deal by getting in the customer to discuss the future course of action Its might happen that the customer may still say no "ut that could be because of e'ternal factors not because of unsuccessful selling The salesman should al!ays give the customer every opportunity to say yes andling ob!ections

%b-ections should be taken as opportunities to reinforce benefits %b-ections tell us issues important to customer and are a natural part of sales process (e can learn from ob-ections It.s a sign that the customer is thinking about the proposal "etermine the real ob!ection (hat if test / (hat if I resolve the ob-ection !ould you accept the proposal / If ans!ered yes then real else not False ob-ections may pertain to customer not feeling comfortable e'pressing their real concerns

#nderstand the ob!ection 0o !hat you are saying is 1)) #sk open ended questions to further the understanding #ckno!ledge disagreement $erify the understanding 0ummari2e the understanding and double check that the ob-ection is real Thus obtain / clarify / confirm and transmit information to 3%ommunicate effecti&ely. To handle the ob!ection' &ephrase the ob-ection as a question #sk questions to find the customer.s hidden agenda: (hy are you hesitating #re there any reasons If these are taken care of !ould you be interested (hat !ould it take to convince you Forestall the ob-ection i)e) the ob-ection !ill be ans!ered later 4se tactfully only if you are going to handle it later #ckno!ledge the ob-ection and request him to !ait and by the time you ans!er he understands the situation better If not done tactfully customer may feel that he is being avoided or there is something to hide "oomerang technique Turn the ob-ection a reason to buy the proposal "ut it should be supported by an e'ample +irect denial +o it in such a !ay so that he feels that you are e'pressing a point of vie! and not negating him It should not make him defensive It should be polite Third party approval Ensure validity of third party 5ight have to prove the claim later It should be relevant to the ob-ection ,ompensating technique (hen ob-ection is valid %ffer a compensation 0olution over comes the problem and customer feels that he is finally gaining form the proposal "y handling ob-ections effectively: %ne manages time "uild trust "uilds ,ommitment Professional image Pro-ects courtesy &eveals information +o differentiate bet!een an ob-ection and a complaint # complaint is a grievance or dissatisfaction (hile ob-ection is resistance *andling complaint *andle the complaint by listening #sk questions no! the ans!er

#pologi2e if appropriate &eassure 5ake a commitment to follo! up

(egotiation # process by !hich people !ho !ant to come to an agreement try to !ork out a settlement that is beneficial to both parties Its usually a give and take )istakes in negotiation Inadequate preparation Ignoring the need to cooperate Intimidation Impatience 6oss of control Talking too much listening little #sking the !rong question #rguing instead of influencing 7ot accepting others vie! 7ot reading non verbal messages Types' Event based %ne off, tactical in nature, transaction based and can be measured easily &elationship based 8alue based, strategic in nature, less easily measured, transaction agreement is not the only goal Process of (egotiation *b!ecti&e setting should be +),-T +etting the context ,ulture of the customer and environment of the place !here discussion is held %ollect .nformation about 6ast discussion, e'isting contracts etc Personal information like hobbies, interests, past e'perience #nderstand the decision making process In most cases the discussion should be !ith the person !ho takes the final decision "ut in some cases the discussion !ould be at multiple level In such cases check !hich of the &#I+ role the person is playing &#I+ / recommends, agrees, influences and decides This helps identify the role the individual is playing The person !ho recommends can influence the one !ho decides .dentify the options *ave the options ready prior start of the negotiations and present same at the right opportunity "y doing so you can ensure that you are thinking for both parties +etting the limits #t the initial stages make an offer lo!er than settlement point to have some fle'ibility /now your competitors 6evel of competition investment, relationship, tactics used, reaction to your proposal and his contract Factors influencing negotiation strategy

,ustomer !ants, business relationship, culture, location and level of investment Preparing the customer 7egotiation can begin !ithout the other party reali2ing it Preconditioning prepares the chances of success Practice the negotiation *elps test the overall process Timing, environment and mood are critical for success of a negotiation #ssess the mutual benefits, by identifying the customer business !ants (hile deciding the strategy for negotiation do consider: The environment !hether its neutral or not The type of language used (hat !ill appeal and !hat !ill not The decision making process "o look out for non &erbal and &erbal messages during the discussion Probing and testing To clarify the interests To check for understanding To obtain detailed information To allo! sufficient time If a !ritten agreement !ill not happen at the end ensure agreement by confirming !hat has been agreed upon in clear terms and make the other party repeat same

%losing skills The skills required to identify !hen a customer is ready to make a purchase decision and to influence this decision to obtain a positive outcome Its !arrants: 6istening skills %bservation Patience Timing %losing techni0ues' +irect close (hen: the customer is convinced, you get a positive buying signals or the customer cant make his mind *o!: by asking directly a closed question !hich !ould require a yes no ans!er, usually 9es #ction close: (hen: you feel the customer is likely to delay, customer participation is required and you kno! that action is required *o!: by doing something e)g) placing a -ar on the counter Indirect close (hen: guide to a final close, used if customer is indecisive and closing on s sub point, if customer risks loosing face by agreeing to you directly *o!: ask for agreement on a related item and close the sale !ithout customer even reali2ing #lternative close: $ive a choice or options (hen the customer is stalling or one is selling a range of products Fear (hen limited supply is genuine (hen selling proposal that are perceived to be popular (hen fear motivates a decision

*o!: 0uggest that urgency is required 8alue added close (hen: one has an additional benefit to offer, faced !ith tough competition, entering a ne! market "ut customer may e'pect it every time and other techniques may become difficult Finally close & e&aluate the negotiation ,losing is influenced by self confidence, product confidence and identifying buying signals successfully verbal and non verbal e)g) nodding, open body language, rela'ed face etc