BMT6138

ADVANCED SELLING AND NEGOTIATION

SKILLS

Digital Assignment- 1

LEARNING OUTCOMES

Submitted by
NAME: SIVANESAN
REG NO: 19MBA0002
 LEARNING OUTCOMES

BASICS OF SELLING:

 Selling function involves in determining customer needs and wants.

 Responding through planned or personalized communication.

 Creating an impact or influencing purchase decision and enhancing the future business
opportunities.
 In some case it goes beyond mere selling or order taking:

Adds utility.

 Helps the customer in determining their needs.

 Creates desire for a products.

SELLING

Selling is a Marketing function that involves determining client needs and wants and
responding through planned, personalized, communication that influences purchase decision and
enhances future business opportunities.

NEGOTIATION

A Business negotiation maybe a formal affair that takes place across the proverbial
bargaining table, in which you haggle over price performance.

HOW NEGOTIATION IS RELATED TO SALES

Selling always comes before negotiation. Negotiation starts when the prospective
customers wants to buy the product for the price they feel the product or service worth for.

SALES OBJECTIVES

There are many objectives for sales, the main objective of sales would be

 To maximize the profit.

 To maximize the sales.

Other objectives are:

 To make an attempt to obtain new customers.

 To maintain fruitful relationship with the existing customers.

 To sell the right product to the right customers.

 To provide timely service to the customers.

 To keep the customers informed about new product line.

FUNCTIONS OF SALES DEPARTMENT

The major functions of sales department are:
 Market Research
 Advertising
 Sales
 Sales correspondence
 Service
 Packaging
 Warehouse

Market Research:

 The sales department has to be done Market Research. The market research helps the firm
to understand the customer needs and wants and also it will helps to forecast the future
trends. The market research can be done in many ways like taking survey from the targeted
market etc. After the market research the firm will start to manufacture the product or create
the service.

Advertising:

 The advertisement is the process of communicating the information about the product or
services to the target market. It should be in such a way that it would create awareness
about the product.
Sales:

 Selling the products to the prospective customers. Selling is a Marketing function that
involves determining client needs and wants and responding through planned,
personalized, communication that influences purchase decision and enhances future
business opportunities.

Sales Correspondence:

 The activity related to sales, supply should be paid at most care.

Service:

 This is not only a service to the customers but also a protection against customer
complaints.

Packaging:

 Packing also has an important role in the sale of product. With the help of good packing,
the product form and quality as they were before dispatch. Good packing also helps in
advertising and attracts more number of customers.

Warehouse:

 The finished product has to be stored in warehouse. It also supports easy transportation

PERSONAL SELLING:

Personal selling occurs when a sales representative meets the potential customer for the purpose
of selling the product.

STAGES OF PERSONAL SELLING:

Prospecting:

Prospecting refers to identifying the potential customers. There are many sources are
available to catch out our prospective customers. For instance free trade shows, commercially
available database etc.
Pre Approach:

The pre approach involves preparation for the sales presentation. The presentation involves
research about the potential customer, such as market research.

Approach:

The approach refers to the initial contact between the salesperson and the prospective
customer. During this stage the sales person tries to get to know about potential customers.

The goal of this approach is to determine exact needs and wants of the customers

Sales Presentation:

The sales presentation refers to the sales person presenting the product or service and
demonstrating it.

Handling Objectives:

In order to get the sales order, the sales person must address these questions or concerns.

Closing Sales:

The sales person has to persuade the customer to purchase the product.

Follow Up:

It refers the sales person has to be in contact with customer even after the sale of the
product. If the customer come up with any complaints with the product the sales person should be
in position to resolve it.

THEORIES OF PERSONAL SELLING

1. AIDAS THEORY OF PERSONAL SELLING:

According to this theory, the prospect’s goes through five successive mental stages.
A-Attention.

The sales person has to gain the attention of the potential customers in order to lead the
customer to purchase.

I-Interest

The sales person has to create interest among the prospectus about the product.

D-Desire

The sales person has to create enough desire in the customer mind so that he immediately
has to buy the product.

A-Action:

It is important for the sales person to understand whether to directly induce the customer
or whether to push reminders.

S-Satisfaction

The sales person has to ensure the satisfaction level of the customer even after purchase of
product.

2. RIGHT SET OF CIRCUMSTANCES, THEORY OF SELLING:

It is also known as “situation-response” theory. The sales person succeeds in securing the
attention and gaining the interest of the prospect and if the sales person present the proper stimuli
or appeals, the desire response that is the sales will result.

3. BUYING FORMULA THEORY OF SELLING:

The buyer’s needs or problem receive major attention and the sales person role is to help
the buyer find solution.

4. BEHAVIOUAL EQUATION THEORY:

This theory explains buying behavior in terms of purchasing decision process, viewed s a
phase of the learning process, four essential elements of learning process included in the stimulus
response model are drive, cues, response and reinforcement.
SPIN MODEL:
S-Situation Questions

Deal with the facts about the buyers existing situation.

P-Problem Questions

Ask about the buyers pain and focus the buyer on this pain while clarifying the problem,
before asking implication questions. These give Implied Needs.

I-Implication questions

Discuss the effects of the problem, before talking about solutions and develop the
seriousness of the problem to increase the buyers motivation to change.

N-Need Payoff Questions

Get the buyer to tell you about their Explicit Needs and he benefits your solutions offers,
rather than forcing your to explain the benefits to the buyer. Getting the buyer to state the benefits
has greater impact while sounding a lot less pushy. What these questions do is probe for explicit
needs.

SPANCO MODEL:
S-Suspect

It is just a leads which has been gathered from multiple sources like directories, Mail opt
in list, Networking platforms, Referrals.

P-Prospects

At this stage, a few prospects are identified out of the huge list of suspects. These prospects
are the potential customers who express their interest during the previous suspecting stage.

A-Approach

The sales person tries to identify the client’s requirements, analyze them, perform lea
qualification and based on that, tries to present a solution from their offerings.
N-Negotiate

Make or break a deal stage. This stage involves negotiation with the clients on the pricing
aspect of the deal and its associated terms & condition.

C-Close

The deal would be considered to be close, when the customer would sign on the contract
and would complete all the necessary formalities for issuing a purchase order to you.

O-Order

The client’s responsibility is transferred to the delivery team. This makes the end of the
sales cycle for that particular deal.

SALES PERSON RESPONSIBILITY

 The sales person has to meet customers from target market.

 The sales person has to greet the customers.
 Help the customer to find appropriate product.
 He should persuade the customer to buy the product.
 He has to check the stock available in the store.
 He has to work to achieve the sales target.
 He is also responsible for inventory management.

SALES PERSON ROLES:

 He has to forecast the demand and trend in the market.
 He should act as a mediator between the management and the customers.
 Sales person has to solve the customer complaints.
 He has to maintain proper inventory storage.
 He has to update himself about new trends in the market.
 He has to acquire new customers and retain the existing customer.
 He has to make sure that the product is delivering on time to the customers.
 He strives to achieve the targets stetted by the organization.
 He has to provide more information about the product t the customers.
  He also ready to receive information about the product performance from the
customers.
 He should follow up the customers.

SKILLS SET FOR SALES PERSON

Effective Communication Skill:

Sales person spend the majority of their day communicating, so it is important to be

effective communicator.

Active Listening Skill:

Great listening skills can help the sales person empathize with prospects to learn more
about their business and pain points. With that knowledge, they can then sell more effectively and
offer a better solution.

Objection Handling Skill:

Sales person need to learn to sincerely understand the customer problem, and offer clarity
to help the prospect overcome their objections.

Technical Skill:

The sales person should possess the adequate knowledge about the product.

Interpersonal Skill:

It also involves active listening, an ability essential to being successful at sales. the sales
person must listen to what the customer needs or desires and fit what you are offering to their need.

INSTITUTIONAL BUSINESS
Institutional sales means selling products to business units or institutions or it can be
termed as business to business (B2B). Institutional sales are the selling to organizations that
usually involves a tender, contracts or special pricing. The categorizing of companies varies
from organization to organization. An institutional sale in FMCG means all those sales which
are done to institutions. Companies promote sell their products through institutions to help
increase the reach if their products and get trials of their products with customers of these
institutions