Selling skills training

1. MASS TRAINING MASTERING YOUR SELLING SKILLS Marketing Department Makhzani Co. Ltd 1

2. Training Agenda  Basic selling skills  Sales Process  Communication skills  Handling customer objections  Negotiation skills  Effective time management  Key account management  Adaptive selling  Pareto’s law MASS Training Copyrighted Makhzani Marketing Dep. 2

3. MASS Training Copyrighted Makhzani Marketing Dep. You will never get a 2nd chance to make a 1st impression 3

4. AIM  To Create an Outstanding Success for Our Brands  Understand in depth, the role of Sales Team  Develop a Framework for an Effective Sales Approach MASS Training Copyrighted Makhzani Marketing Dep. 4

5. SELLING & SALESPERSONS  What selling is ?  What a salesperson does ? MASS Training Copyrighted Makhzani Marketing Dep. 5

6. *What Is Selling ? To satisfy a Need / Want with your product for Mutual Benefits. To Identify / Generate / Influence a Need / Want. MASS Training Copyrighted Makhzani Marketing Dep. 6

7. What selling is.  “The process of: Developing customer relationships (CRM) Discovering customer needs, Matching appropriate products with these needs, and communicating benefits.” Manning and Reece Selling Today MASS Training Copyrighted Makhzani Marketing Dep. 7

8. Selling is a ‘process’ that:  Facilitates the transfer of goods & services  Persuades prospects to buy  Occurs over various lengths of time  Involves multiple steps (preparing, opening, presenting, closing, servicing), although maybe not all on every call  Is part of ‘marketing’ (promotion) MASS Training Copyrighted Makhzani Marketing Dep. 8

9. Selling is a ‘process’ that: CONT..  Is customer (vs. product) driven. (Customer centricity)  Bridges between the company and the customer  Aims to develop long-term, (win-win relationships)  Strives for repeat business. (Long term BR)  Is technically oriented.  Emphasizes service and value. MASS Training Copyrighted Makhzani Marketing Dep. 9

10. Philosophy Of Selling selling = motivating customer’s commitment Sales Rep customer All good reasons why a customer should buy / use your product All the things that a Customer has to give BY ASKING MASS Training Copyrighted Makhzani Marketing Dep. 10

11. Selling is ‘helping’ people:  Solve problems  Make more $  Buy  Meet their needs/goals MASS Training Copyrighted Makhzani Marketing Dep. 11

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13. Selling Philosophy of ‘Good’ Salespeople:  Selling is problem solving  Selling is a helping, caring activity  A customer is a person to be served, not a prospect to be sold  Treat people as human beings, not $ signs  Unique products, relationships, cultures are important  Be customer driven, not product driven MASS Training Copyrighted Makhzani Marketing Dep. 13

14. Selling Philosophy of ‘Good’ Salespeople:  Focus on customer needs  The customer is the reason a salesperson exists  Long-term success depends on pleasing others  Selling is a ‘win-win’ activity  A commitment to self improvement and life-long learning essential for long-term success  Adherence to a strict code of ethics emphasizing, among other things, mutual trust, respect, and honesty is essential MASS Training Copyrighted Makhzani Marketing Dep. 14

15. “What Makes a Good Salesperson?” 1. Empathy = the ability to sense what the customer is feeling. 2. Drive = the personal need and want to make a sale (not merely for the money); = a proper ego that is enhanced by success while somewhat weakened yet motivated and not shattered by failure. Harvard Business Review July-August, 1964 MASS Training Copyrighted Makhzani Marketing Dep. 15

16. Selling is a ‘profession’ based on:  Scientific skills, even though it is not an ‘exact’ science  Knowledge about selling principles/theories  A code of ethics  Psychological & sociological aspects of human behavior (CONSUMER BEHAVIOR) MASS Training Copyrighted Makhzani Marketing Dep. 16

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18.  What do salespeople do? MASS Training Copyrighted Makhzani Marketing Dep. 18

19. 1) They Sell:  Products/services  Solutions  Information  Ideas  Service  Their company  Themselves MASS Training Copyrighted Makhzani Marketing Dep. 19

20. 2) They work with people:  Solve problems  Represent the company  Communicate (benefits?) with customers  Develop relationships, partnerships, alliances  Discover needs MASS Training Copyrighted Makhzani Marketing Dep. 20

21. 2) They work with people:  Gather information  Educate customers  Catalyze change  Help people buy  Serve customers  Treat people with respect MASS Training Copyrighted Makhzani Marketing Dep. 21

22. 3) They Manage:  Their time  Their territory  Their records  Their stress MASS Training Copyrighted Makhzani Marketing Dep. 22

23. Rewards of being a professional salesperson: BROS  Freedom (own boss)  Job variety  Challenge  Tangible accomplishments  Recognition/awards  Financial compensation MASS Training Copyrighted Makhzani Marketing Dep. 23

24. Rewards of being a professional salesperson: BROS  Opportunities for advancement  On ‘cutting’ edge  Personal relationships  Satisfaction from helping others  Job security  Entertaining customers  Travel MASS Training Copyrighted Makhzani Marketing Dep. 24

25. Negative aspects of being a professional salesperson: CONS  Long hours (physically exhausting)  Isolation (often work alone)  Mentally depressing  Rejections  Complaints  Stress MASS Training Copyrighted Makhzani Marketing Dep. 25

26. Types of Selling  Indirect selling – any form of selling that does not involve a sales person. (Ex: advertising, promotion, displays, signage)  Direct Selling – when there is contact between a salesperson and the customer. MASS Training Copyrighted Makhzani Marketing Dep. 26

27. Methods of Selling  Personal selling – any form of direct contact between a salesperson and customer  Business to Business – may take place in a manufacturers showroom (inside sales) or in the field (outside sales).  Telemarketing – selling over the phone MASS Training Copyrighted Makhzani Marketing Dep. 27

28. Feature - Benefit Selling The concept that a salesperson needs to match the features of each product to a customer’s needs and wants. MASS Training Copyrighted Makhzani Marketing Dep. 28

29. Features Vs. Benefits Features  A physical characteristic or quality of a good or service; what is it’s intended use? Benefits  Advantages or personal satisfaction a customer will get from a good or service; features that have been made into customer benefits are selling points. MASS Training Copyrighted Makhzani Marketing Dep. 29

30. MASS Training PART 2 Call Planning Process

31. Customer Buying Decisions  Salespeople must study what motivates customers to buy and what decisions customers make before finally purchasing a product. MASS Training Copyrighted Makhzani Marketing Dep. 31

32. Customer Buying Decisions Rationale Motives  product dependability  time or monetary savings  convenience  comfort  recreational value Emotional Motives  social approval  recognition  power  love  affection  prestige MASS Training Copyrighted Makhzani Marketing Dep. 32

33. Customer Buying Decisions Extensive Decision Making  Used when little or no previous experience with the item because it is infrequently purchased.

34. Customer Buying Decisions Limited Decision Making  Used when a person buys goods and services he or she has purchased before but not on a regular basis.

35. Customer Buying Decisions Routine Decision Making  Used when a person needs little information about a product because of a high degree of prior experience or low perceived risk.

36. Call Planning Process MASS Training Copyrighted Makhzani Marketing Dep. 36

38. .IPre Call Planning MASS Training Copyrighted Makhzani Marketing Dep. 38

39. A. Prospecting Process of locating potential customers for a product or a service Find customer Qualify Classify MASS Training Copyrighted Makhzani Marketing Dep. 39

40.  Geographical segmentation  Specialty segmentation  Pts Rate segmentation  Concept segmentation  Behavioral segmentation  Social segmentation MASS Training Copyrighted Makhzani Marketing Dep. 40

42. The market is constantly changedi.e. annual customer turnover 15 % : 20 %. Find new customer to replace those that switch to competitors The more information the sales person has about the prospect the higher the probability of meeting the prospect’s needs & developing long term relationship MASS Training Copyrighted Makhzani Marketing Dep. 42

43. Customer data 1-Personal:  Name(including pronunciation)  Family status  Education  Interests & disinterests  Mobile & e-mail 2-Attitudes :  Towards sales people  Towards your company  Towards your product 3-Styles : Social styles (driver ,analytical ….) MASS Training Copyrighted Makhzani Marketing Dep. 43

44. 4-General Profile  Best time for visit  Working hour  Address  Phone number  Personal data and preferences Customer data cont. MASS Training Copyrighted Makhzani Marketing Dep. 44

45. Follow up Obtaining commitment Responding to objections Making the presentation Discovering needs Making the approach Collecting pre-call information Prospecting Selling process The “Buyer” Become a… Lead Prospect Customer MASS Training Copyrighted Makhzani Marketing Dep. 45

48. Prospect Need Ability MASS Training Copyrighted Makhzani Marketing Dep. 48

49. MASS Training Copyrighted Makhzani Marketing Dep. Need, Want and Demand 49

50. MASS Training Copyrighted Makhzani Marketing Dep.Maslow's Hierarchy of Needs 50

51. MASS Training PART 3 The Basic Selling Steps MASS Training Copyrighted Makhzani Marketing Dep. 51

52. The 7 Basic Selling Steps 1. Pre call planning 2. Opening 3. Questioning 4. Presentation 5. Handling objections 6. Closing 7. Post call analysis MASS Training Copyrighted Makhzani Marketing Dep. 52

53. The 7 Basic Selling Steps Projecting the right company image  Targeting  Call preparation  Utilize waiting time  • Identifying the right customers1. Pre call planning • Posture, Facial Expressions, customeressing & Grooming • Observing • Review last call • Objective selling: S.M.A.R.T = Specific, Measurable, Achievable, Realistic, Time bound • Plan the call: objectives, promotional materials, sequence of detailing MASS Training Copyrighted Makhzani Marketing Dep. 53

54. The 7 Basic Selling Steps Types of opening: Opening is the skill of capturing the customer’s attention and focusing the sales call. Steps of opening: • Greeting • Rapport building • Purpose of call • Initiating business discussion • Need/Benefit opening: • Identify a known or presumed need • Offer a product feature & benefit to satisfy that need. • Opening as a question • Stimulating opening 2. Opening MASS Training Copyrighted Makhzani Marketing Dep. 54

55. The 7 Basic Selling Steps Closed Questioning: • Questioning is used for the purpose of gaining information to use in the sales call. • Start with open questions and then move to close questions. • Invites an extended customer response • Start with What, When, Why, Where, Who & How • Invites a “Yes” or “No” reply from the customer • Start with Do, Will, Is, Should Choice Questioning: • Give customer two or more positive options in order to rule out a negative “No” response. 3. Questioning Open Questioning: MASS Training Copyrighted Makhzani Marketing Dep. 55

56. The 7 Basic Selling Steps Tag On Questioning: • Questioning is used for the purpose of gaining information to use in the sales call. • Start with open questions and then move to close questions. Benefit Tag Questioning: • Benefit is presented in the form of a statement supported by a Feature and followed by a Closed Question • Tag on questions are used when customer makes a positive statement which you want to reinforce. 3. Questioning MASS Training Copyrighted Makhzani Marketing Dep. 56

57. The 7 Basic Selling Steps Presentation is zeroing on the customer’s identified Needs/Wants with appropriate Product Features and Benefits. During Presentation: • Sit up straight in front of the customer • Look confident and speak with enthusiasm. • Hold the Detail Aid in front and use a pen to focus customers attention • Don’t look at the Detail Aid, look at the customer. Observe his/her actions. • If interrupted, do a brief recap before continuing • Don’t be distracted by surroundings 4. Presentation MASS Training Copyrighted Makhzani Marketing Dep. 57

58. The 7 Basic Selling Steps Skepticism: • Can be question, comment or query. • Shows interest of the customer in your product. Misunderstanding: • An incorrect negative perception because of misinformation. • To handle this provide the right information. • A customer’s doubt that your product can actually deliver the stated benefit. • Offer proof (clinical studies, references) Real Objection: • A real short coming or disadvantage of your product. • To handle real objection, minimize the impact by focusing on the advantages. 5. Handling objections MASS Training Copyrighted Makhzani Marketing Dep. 58

59. The 7 Basic Selling Steps Hidden Objection: Indifference: • customer is not interested in your product because customer is satisfied with competitor’s product or customer has never used that type of product. • Identify a need that can not be satisfied by the customer’s preferred product. • customer does not openly raise an objection because the customer is disinterested. • How to handle: Ask customer if they have concerns. • Can be question or query. • Shows interest of the customer in your product. 5. Handling objections MASS Training Copyrighted Makhzani Marketing Dep. 59

60. The 7 Basic Selling Steps Real success of a sales call depends on the use of effective closing. After Presentation: •Review all the benefits accepted by the customer •Ask for business (trial use, continued use, expanded use) •Wait for a response. 6. Closing 60

61. The 7 Basic Selling Steps Post call analysis is the process of evaluating and recording the outcome of the call, in order to plan for future calls. After leaving the chamber: •Evaluate the Call •Record Call Information •Set Objectives for next meeting with the customer. 7. Post call analysis MASS Training Copyrighted Makhzani Marketing Dep. 61

62. Asking Questions  Questions are used to PROBE information from customers  Questions starting with WHAT WHERE WHY HOW WHO WHICH are very useful MASS Training Copyrighted Makhzani Marketing Dep. 62

63. Funnel Technique a powerful tool to Encourage the Flow of Conversation 1) motivate the customer to talk. 2) open with neutral questions to get unbiased information. 3) ask lead questions to explore more deeply. 4) ask closed questions to pinpoint precise requirement. 5) summarize to gain customer’s acceptance of requirements. 1 2 3 4 5 MASS Training Copyrighted Makhzani Marketing Dep. 63

64. DAPA Method Of Selling D A P A efine the customer’s requirement for your product. cceptance by the customer of the requirements. rove that your product can fulfil the customer’s requirement. cceptance of the proof by the customer. MASS Training Copyrighted Makhzani Marketing Dep. 64

65. Significance of DAPA efine the customer's requirement for your product cceptance by the customer of the requirements rove that your product can fulfil the customer’s requirement cceptance of the proof by the customer sales rep: asks open active questions customer : LISTENS and ANSWERS accordingly customer : ANSWERS and gives acceptance sales rep : does active listening and makes notes sales rep : offers the product (or service) customer : does active listening and if things are not clear, asks questions sales rep : does relevant answering customer : accepts the product as his/her need D A P A MASS Training Copyrighted Makhzani Marketing Dep. 65

66. *Presenting the Benefits NEED FEATURE/ OFFERING BENEFIT what the customer wants? what do we offer? what the customer gains? MASS Training Copyrighted Makhzani Marketing Dep. 66

67. * Famous Quote MASS Training Copyrighted Makhzani Marketing Dep. 67

68. *Handling Objections  When D to A from DAPA is not done Objection – An Obstacle Or An Opportunity  It’s a customer tactic to get a discount  The customer is confused due to hidden cost or competition  A habit of asking questions  A strategy to postpone decision making When Do Objections come? MASS Training Copyrighted Makhzani Marketing Dep. 68

69. *Handling Objections Objection – An Obstacle Or An Opportunity How do we tend to feel?  Dejected  Angry Challenging  Frustrated  Defensive MASS Training Copyrighted Makhzani Marketing Dep. 69

70. *Handling Objections Objection – An Obstacle Or An Opportunity How Should We React?  Pause  Stay calm. Don’t get aggressive.  Don’t get defensive Do not disturb the customer. Let him/her speak first. MASS Training Copyrighted Makhzani Marketing Dep. 70

71. *Kinds Of Objections  Unspoken Objection  Objection that we hear and can answer  Objection that we hear and cannot answer MASS Training Copyrighted Makhzani Marketing Dep. 71

72. *Handling the unspoken objection  customer frowns  customer smiles (sarcastic)  customer looks elsewhere MASS Training Copyrighted Makhzani Marketing Dep. 72

73. *Handling the unspoken objection What do you do when such an Objection Comes?  PAUSE and then convert it into a SPOKEN OBJECTION by asking: You are thinking something Sir? Anything particular Sir? MASS Training Copyrighted Makhzani Marketing Dep. 73

74. *Handling the objections we hear and can answer When you hear an Objection:  Pause  probe gently  Please, tell me more.  Apart from this, is there anything else that is of concern to you?  If I can take care of this to your satisfaction, could we proceed forward (would you consider our product)? MASS Training Copyrighted Makhzani Marketing Dep. 74

75. *Handling the objections we hear and can answer When you hear an Objection: probe gently  Give your best possible solution?  Are you satisfied with my answer? MASS Training Copyrighted Makhzani Marketing Dep. 75

76. *Handling the objections we hear and cannot answer Product features that meet the customer’s needs Features we offer but customer does not need Find Out:  Why the customer may not need it?  How long will the customer not need it?  Will the customer ever need it in future? Features the customer wants, but we do not have Find Out:  Why does the customer want it?  How important is it? 1) Essential 2) Desirable 3) Useful  Can we explore an alternative? MASS Training Copyrighted Makhzani Marketing Dep. 76

77. *Selling The Price Effectively Psychological aspects of price:  Price is the only weapon that the customer has.  Make sure YOU believe in your own pricing.  Make the customer feel that you are there to help and not to fight. MASS Training Copyrighted Makhzani Marketing Dep. 77

78. *Selling The Price Effectively the right stage to present the price: NOT UNTIL the customer has REALISED the BENEFITS of your product What does a customer pay for?QUALITY BENEFITS CONSISTENCY RELIABILITY REPUTATION BRAND NAME SERVICE YOUMASS Training Copyrighted Makhzani Marketing Dep. 78

79. *Selling The Price Effectively how to postpone revealing price: If the customer says, “ It must be Expensive” -- Initially Ignore it If the customer asks a little later, “How Much” – Tackle him/her in the following manner: 1) I am coming to that Sir  ask an Open Neutral Question 2) It depends on your requirement Sir  ask an Open Neutral Question 3) I am sure the Price is not your only consideration Sir 4) It depends on your order size 5) I will leave you with a full Price list Sir 6) First let me tell you the benefits that you are getting if pressed a lot, tell the price using the SANDWICH METHOD and continue MASS Training Copyrighted Makhzani Marketing Dep. 79

80. *Selling The Price Effectively SANDWICH METHOD MASS Training Copyrighted Makhzani Marketing Dep. 80

81. *Selling The Price Effectively SANDWICH METHOD STEP I: present the BENEFITS of your product STEP II: put the price in front of the customer STEP III: JUST CONTINUE with explaining him/her the features that he/she will derive out of this price MASS Training Copyrighted Makhzani Marketing Dep. 81

82. *Selling The Price Effectively Handling Price Objection STEP I: customer objects STEP II: sales rep : what are you comparing with, sir? customer : competition, perception, budget, past experience STEP III: sales rep : how much is the difference we are talking, sir? customer : 20% (the faster he says this, ITS FALSE) STEP IV: express the difference STEP V: demonstrate the benefits passable when compared to the difference MASS Training Copyrighted Makhzani Marketing Dep. 82

83. *Closing The Sale What prevents a sales rep from closing EFFECTIVELY? FEAR DOUBT UNCERTAINTY MASS Training Copyrighted Makhzani Marketing Dep. 83

84. *Closing The Sale Why a sales rep may not close well? Too Early Too Late Too Meek Too Aggressive customer’s objections not resolved completely Sales process not followed MASS Training Copyrighted Makhzani Marketing Dep. 84

85. *Closing The Sale When to close? • The customer has understood your product completely • The customer has developed trust in your company • The customer has a desire for the benefits for his/her patients MASS Training Copyrighted Makhzani Marketing Dep. 85

86. *Checklist Steps to be followed? STEP I: Greet the customer  further ask for his well being. STEP II: Give a small 15 seconds introduction on company image. STEP III: Listen to the customer and use the FUNNEL TECHNIQUE to get the flow of conversation. STEP IV: Once you have understood the requirement, use the DAPA Method of Selling so as to confirm there is no GAP between the need and the offering. MASS Training Copyrighted Makhzani Marketing Dep. 86

87. *Checklist Steps to be followed? STEP V: In case the customer has a doubt/objection, then concentrate and resolve that before moving ahead. STEP VI: In case the customer asks about the PRICE. Tell him/her that you would give him/her the best price comparing others. (Use the price postponement techniques). STEP VII: In case the question still arises on PRICE, use the SANDWICH METHOD to answer it. STEP VIII: Pleasantly Close the sale and confirm the prescriptions. MASS Training Copyrighted Makhzani Marketing Dep. 87

88. MASS TRAINING MASTERING YOUR SELLING SKILLS ADAPTIVE SELLING Marketing Department Makhzani Co. Ltd 88

89. Adaptive selling What is adaptive selling? Why is it important for salespeople to practice adaptive selling? What kind of knowledge do salespeople need to practice adaptive selling? How can salespeople acquire this knowledge? How can salespeople adapt their sales strategies, presentations, and social styles to various situations? 6-89 MASS Training Copyrighted Makhzani Marketing Dep. 89

90. Adaptive Selling Salespeople practice adaptive selling when they use different sales presentations for different customers and alter their sales presentation during a sales call based on the nature of the sales situation. MASS Training Copyrighted Makhzani Marketing Dep. 90

91. Being Adaptive Is your behavior different at a restaurant if you are there with your best friends than it is when you’re there with your parents? MASS Training Copyrighted Makhzani Marketing Dep. 91

92. Buyers want the salesperson to understand their business. “Do your homework. … Know ahead of time what we’re up against in the market, what we’re trying to do. If I offer to show you around, jump at the chance. Or, better yet, ask me yourself.” Adapted from Jim Organ, “The Best Reps Will Take on their Bosses for You,” Purchasing, November 7, 1996, pp. 50-52. MASS Training Copyrighted Makhzani Marketing Dep. 92

93. Knowledge makes it easier to practice adaptive selling. Knowledge is organized into categories Product and company knowledge Greater knowledge  more flexibility Each category consists of Method of classifying customer (categorical) Approach to selling the customer (procedural) 6-93 MASS Training Copyrighted Makhzani Marketing Dep. 93

94. Approaches for Developing Knowledge Tap knowledge from experts Read company materials and trade publications Use market research information Ask for feedback Analyze successes and failures Develop an intrinsic orientation toward your work 6-94 MASS Training Copyrighted Makhzani Marketing Dep. 94

95. Social Style Matrix Analytical Amiable Expressive Driver MASS Training Copyrighted Makhzani Marketing Dep. 95

96. Cues for Recognizing Social Styles Analytical Achievement awards on wall Office is work-oriented, showing much activity Conservative dress Likes solitary activities (e.g., reading, individual sports) Amiable Driver Expressive MASS Training Copyrighted Makhzani Marketing Dep. 96

97. Cues for Recognizing Social Styles Amiable Office has friendly, open atmosphere Pictures of family displayed Personal mementos on the wall Desk placed for open contact with people Casual or flamboyant dress Likes solitary activities (e.g., reading, individual sports) Analytical Driver Expressive MASS Training Copyrighted Makhzani Marketing Dep. 97

98. Cues for Recognizing Social Styles Expressive Motivational slogan on the wall Office has friendly, open atmosphere Cluttered, unorganized desk Desk placed for open contact with people Casual or flamboyant dress Likes group activities (e.g., politics, team sports) Analytical Driver Amiable MASS Training Copyrighted Makhzani Marketing Dep. 98

99. Cues for Recognizing Social Styles Driver Achievement awards on the wall No posters or slogans on office walls Calendar prominently displayed Furniture placed so contact with people is across the desk Conservative dress Likes group activities (e.g., politics, team sports) Analytical ExpressiveAmiable MASS Training Copyrighted Makhzani Marketing Dep. 99

100. Social Style Matrix: Customer Expectations Driver Atmosphere: Businesslike Interview Pace: Quick Information provided: Salesperson’s qualifications; value of product Expressive Atmosphere: Open, friendly Interview Pace: Quick Information provided: What salesperson thinks; whom s/he knows Analytical Atmosphere: Open, honest Interview Pace: Deliberate Information provided: Evidence of salesperson’s expertise in solving problems Amiable Atmosphere: Businesslike Interview Pace: Deliberate Information provided: Evidence that salesperson is trustworthy, friendly MASS Training Copyrighted Makhzani Marketing Dep. 100

101. Social Style Matrix: Customer Expectations Driver Salesperson should provide: Documented evidence, stress results Presentation of benefits: What product can do Expressive Salesperson should provide: Recognition and approval Presentation of benefits: Who has used this product Analytical Salesperson should provide: Evidence that salesperson has analyzed the situation Presentation of benefits: How product can solve the problem Amiable Salesperson should provide: Evidence that salesperson is trustworthy, friendly Presentation of benefits: Why product is best to solve problem MASS Training Copyrighted Makhzani Marketing Dep. 101

102. Social Style Matrix: Customer Expectations Driver Assistance to aid decision-making: Explanation of options and probabilities Expressive Assistance to aid decision-making: Testimonials Analytical Assistance to aid decision-making: Evidence and offers of service Amiable Assistance to aid decision-making: Guarantees and assurances MASS Training Copyrighted Makhzani Marketing Dep. 102

103. Indicators of Versatility Less Versatile Limited ability to adapt to other’s needs Specialist Well-defined interests Sticks to principles Predictable Looks at one side of an issue More Versatile Able to adapt to other’s needs Generalist Broad interests Negotiates issues Unpredictable Looks at many sides of an issue 6-103 MASS Training Copyrighted Makhzani Marketing Dep. 103

104. Adaptive Behaviors Less Adaptive “I’ll tell you how it should be done.” “I’m right.” “It’s always been done this way.” “You’re wrong.” “Take me or leave me.” More Adaptive “Let’s discuss it.” “I see your point. We’ll do it your way.” “I’m always looking for new ideas.” “I want to understand.” “How can I accommodate you?” 6-104 MASS Training Copyrighted Makhzani Marketing Dep. 104

105. Adaptive Behaviors Reducing Assertiveness Ask for customer’s opinion Acknowledge merits of customer’s viewpoint Listen without interruption Be more deliberate; don’t rush Let customer direct flow of conversation Increasing Assertiveness Get to the point Don’t be vague or ambiguous Volunteer information Be willing to disagree Take a stand Initiate conversations 6-105 MASS Training Copyrighted Makhzani Marketing Dep. 105

106. Adaptive Behaviors Reducing Responsiveness Become businesslike Talk less Restrain enthusiasm Make decisions based on facts Stop and think Increasing Responsiveness Verbalize feelings Express enthusiasm Pay personal compliments Spend time on relationships rather than business Socialize, engage in small talk Use nonverbal communication MASS Training Copyrighted Makhzani Marketing Dep. 106

107. Social Style Matrix: Strengths and Weaknesses Driver Strengths: Strong-willed, independent, practical, decisive, efficient Weaknesses: Pushy, severe, tough, dominating, harsh Expressive Strengths: Enthusiastic, ambitious, stimulating, dramatic, friendly Weaknesses: Manipulative, undisciplined, egotistical, excitable, reacting Analytical Strengths: Industrious, persistent, serious, exacting, orderly. Weaknesses: Critical, indecisive, stuffy, picky, moralistic Amiable Strengths: Supportive, respectful, willing, dependable, agreeable Weaknesses: Conforming, unsure, pliable, dependent, awkward 6-107 MASS Training Copyrighted Makhzani Marketing Dep. 107

108. MASS TRAINING MASTERING YOUR SELLING SKILLS (Key) Account Management Marketing Department Makhzani Co. Ltd 108

109. Agenda  The theory  The practice  Useful tools MASS Training Copyrighted Makhzani Marketing Dep. 109

110. Agenda  The theory – (based on research by Prof. Derrick-Philip Gosselin)  The practice – (case from the Telecom world)  Useful tools – (Key Account Plan) MASS Training Copyrighted Makhzani Marketing Dep. 110

111. Concepts & Definitions  Different types of Account Management  Definition of Strategic Account Management  Strategic Account Management Process The Theory : Content MASS Training Copyrighted Makhzani Marketing Dep. 111

112. Concepts behind Strategic Account Management Marketing? Strategy? Strategic Account Management ? Sales? Key Account Management? MASS Training Copyrighted Makhzani Marketing Dep. 112

114. Strategic concept ? Perception Development Opportunities value CREATION value DISTRIBUTION in REPEATABLE ways LUCK Adapted model from Prof. Aimé Heene: © 2000 Prof.Dr. A. Heene TIMING MASS Training Copyrighted Makhzani Marketing Dep. 114

115. Marketing concept?  The Economic view (1920): Mechanism to promote trade between industrial agents as a government policy tool.  The Consumer view (1960): Mechanism to promote sales by manipulation of buyer behavior: 4P’s, STP(*), PLC, 4C’s (**) .  The Transaction view (1970): Increase the number, the volume and the value of transactions based on customer needs.  The Relationship view (1980): Creating, developing and maintaining a relationship (network) based on value creation and distribution by solving customer problems.  The New Economy view (1995): Create value on an individual basis (one-to- one) thru solutions based on the information depth or information breadth of the products/services content. (*) Segment, Target, Position (**) Customer Value, Cost to Customer, Convenience, Communication MASS Training Copyrighted Makhzani Marketing Dep. 115

116. Push products / services by manipulation: 4 P’s / 4C’s STP PLC Active seller / Passive Customer Atomistic market Relationship based Value Creation = problem solving Product use Process addes value Transformation process Trust / credibility/ reputation Growth = problem solving = Performance/ Commitment/ Trust/ Loyalty Not applicable in Business Markets Consumer vs Business marketing CONSUMER MARKETING (CLASSIC 1960) BUSINESS MARKETING (1980) (*) Segment, Target, Position (**) Customer Value, Cost to Customer, Convenience, Communication MASS Training Copyrighted Makhzani Marketing Dep. 116

117. Relationship Marketing “In industrial markets, it is not the manipulation of the marketing mix which brings strategic advantage, but effective ‘Relationship Management’. This means creating, developing and maintaining a network based on value creation thru problem solving for the customer.” Gummesson 1987 MASS Training Copyrighted Makhzani Marketing Dep. 117

118. Sales concept ?  Sales = The process to create a transaction.  The Type of sales process depends on the type of transaction. Transactional sales  Individual, territory  Find, call, present, sell, follow up System sales  Team based project (temporarily)  Sell system: product+services+integration Major account sales  Dedicated cross functional sales force for one customer  Contract: Uniform contract terms and coordination  Program: develop business and/or relationship Inside sales  Telemarketing, e-business, order centers, customer service group Source: (B. Shapiro, 1988) Types of sales processes MASS Training Copyrighted Makhzani Marketing Dep. 118

119. Sales evolution Strategic Solutions Commodities Transaction selling System Selling Strategic Selling Consultative Selling Technology Enabled Selling Technology Based Selling Traditional Sales MASS Training Copyrighted Makhzani Marketing Dep. 119

121. The Key Account Management Concept: Current situation (1)  Develop and maintain business revenues with important customers thru customer satisfaction and increase profits thru customer loyalty.  Dedicated salesperson for an important customers.  Started in business markets in the US (1965) and developed during the 1980’s due to increasing complexity of geographic expansion (National Accounts).  Reactive mode: imposed by important customers to reduce business complexity (costs): one face to the customer. MASS Training Copyrighted Makhzani Marketing Dep. 121

122.  Sales driven activity extended with logistic, accounting, inventory management and relationship responsibilities.  Positioned within the sales department.  Evaluated on revenues and paid on results (sales function).  Key account managers promoted from the sales force.  In most companies Key Account Managers are in average responsible for > 8 clients (and increasing). The Key Account Management Concept: Current situation (2) MASS Training Copyrighted Makhzani Marketing Dep. 122

123.  Concepts & Definitions  Different types of Account Management  Definition of Strategic Account Management  Strategic Account Management Process The Theory : Content MASS Training Copyrighted Makhzani Marketing Dep. 123

124.  There is no concensus on the definitions but 3 main characteristics are common on Key Account Management:  Commercial focus: key accounts are customers representing a large potential or actual sales volume as well in money terms as in percentage of the total revenues. Sometimes they are the most profitable customers  Relational focus: key accounts expect special treatment and services: inventory management, logistic support, special prices, special reporting and customer specific applications and solutions. Key accounts will centralise the purchase from different geographic area’s and will involve different departments and different skills  Strategic marketing focus: key accounts can be selected because of their status, market leader position, to open new markets, as ref. To open new markets, for diversification, technological leadership, because they will invest. Definition of Key Account Management (2) MASS Training Copyrighted Makhzani Marketing Dep. 124

125. Why was Key account management created?  Key account management emerged at the end of 1960 in the US because of environmental changes which are still valid today:  Increased concentration of buying companies  Increased geographic dispersion of buyers of same company  Increased pressure on costs and communication  Increased desire to develop partnerships  Increased complexity of buyers operation Assign one person: Key account manager to handle interface with customer from a sales point of view. MASS Training Copyrighted Makhzani Marketing Dep. 125

126. Why will It become more important?  Importance of key account management will continue to increase because of 5 trends: Importance of Key account management Industry Structure Technology ICT (E-com & e-business) Globalisation Maturity of Industrial Markets Increase in Buying Power MASS Training Copyrighted Makhzani Marketing Dep. 126

127. More competition More complexity More concentration thru M&A More central purchasing More outsourcing of services Elimination of low value activities Less but more important customers Less but more important suppliers Account management is an efficient and effective process to implement 5 Trends Why will It become more important? MASS Training Copyrighted Makhzani Marketing Dep. 127

128. Current view on Key Account Managemen current views on “Key Accounts” are mainly Local or International oriented, Supplier Focused and have a Sales or Relationship Approach. Strategy Driven Geography Focus Approach Local Global Sales DrivenRelationship Marketing Driven Customer International Supplier Regional/National © Gosselin, Heene, 2000MASS Training Copyrighted Makhzani Marketing Dep. 128

130. Definition of a Strategic Account Strategic accounts : are potential or existing customers identified by the supplier based on strategic criteria and where the supplier has indications that he is of strategic importance for the customer as well. Potential Supplier Existing Suppliers Strategic Accounts SUPPLIER CUSTOMER Gosselin, Heene 2000 Existing Customers Potential Customers Important/Key Accounts S SNS S S NS NS NS S: Strategic NS: Non Strategic Important/Key Suppliers = + Source: D-P Gosselin, 2002 MASS Training Copyrighted Makhzani Marketing Dep. 130

131. Definition of Strategic Account Management ‘’Strategic account management : is the process that identifies and selects strategic accounts and develops thru competence building and competence leveraging a set of specific and unique value propositions in partnership with a strategic account ‘’ Gosselin, Heene 2000 MASS Training Copyrighted Makhzani Marketing Dep. 131

132. Classification of Account Management We believe there are 3 different processes at work which are not identified as such in practice, creating a lot of confusion, mismanagement and failures. Process Nature Objective Behaviour Time Focus Key Account Selling Performance Defensive Static/ Supplier driven Short Term Sales Key Account Management Coordination/Rel ational Offensive Static/ Supplier driven Mid Term Marketing Strategic Account Management Competitive Advantage Proactive Dynamic/ Interactive Long Term Strategic Source: D-P Gosselin, 2002

133. Current views on Account Management  Confusion on account management is due to non recognition of 3 different processes Process Focus Local Regional National Inter national Global Key Account Selling Sales Management Key Account Management Relationship Management Strategic Account Management Strategic Management Complexity Source: D-P Gosselin, 2002 MASS Training Copyrighted Makhzani Marketing Dep. 133

134. Implications of Strategic Account Management  Selection of Strategic Accounts: Portfolio/Resources  Business Development Process: Proactive  Strategic Process: Competitive advantage  Competences of Strategic Account Manager and Organisation: Competence driven  Organizational impact: Change Management  Interaction with other functional departements: Competence Building and Leverage. Strategic Account Management is about creating a customer driven organization Source: D-P Gosselin, 2002 MASS Training Copyrighted Makhzani Marketing Dep. 134

136. Characteristics of the process  Selection of Strategic accounts  Process & Resource allocation  Competence  Advanced Research MASS Training Copyrighted Makhzani Marketing Dep. 136

137. Account Relationship Development Model Synergetic AM Early AM Complex Level of Involvement with the customer Simple Systems/SolutionsTransaction Nature of the customer Relationship Mid-AM Partnership AM Account Relationship Development Model of Millman & Wilson (1994) MASS Training Copyrighted Makhzani Marketing Dep. 137

138. Account Relationship Development Model Pre-KAM Early KAM Mid-KAM Partnership KAM Synergistic KAM Uncoupling KAM 0% business 5% business 35% business 90% business 100% business After one year Year 2 Year 3 Year 4 Product need established Transactions commence Selling company now one of a few "preferred suppliers" Selling company is now in partnership with buying company "Quasi-integration" Selling company and buying company together deliver value to the end customer Relationship disintegrates or product fails to keep up with the market Buying Company scrutinize price and other terms Key account manager / key contact relationship strengthens Operational staff get to know their opposite numbers Contacts at all levels Focus teams at all interfaces between supplier and customer Key account manager's focus is to establish relationship Key account manager working to increase volume of business Key account manager working to establish distinctive business Key account manager looks for opportunities for process advantage Key account manager looks for opportunities for process advantage Source: Prof. Malcom McDonald, Cranfield 1999, Millman & Wilson 1994

139. Strategic selection • Not all customers have same value • Volume is not the selection criteria • The more complex the product and the more complex the customer, the more chance there is to build a partnership and create value Partnership Joint Relation Opportunistic Price Driven Complex Customer Relationship Complexity Simple Systems/SolutionsTransaction Product/Service Complexity MASS Training Copyrighted Makhzani Marketing Dep. 139

140. Model of Cespedes 1. Assessment of the direct and indirect profitability potential of the customer; 2. Assess the potential for organizational learning thru the key customer: depends on the degree of services and the potential to standardize the service processes of the customer; 3. Analyze the type of transaction: is it possible to increase the profitability of this customer based on the transaction cost drivers? Source: F. Cespedes, 1995 HBS Press Strategic selection MASS Training Copyrighted Makhzani Marketing Dep. 140

141. Strategic Significant Profitable Generic strategy Y Y Y Keep and invest in those customers Y Y N Keep but Increase profitability Y N Y Increase volume if possible Y N N Increase volume and profitability N Y Y Important but not strategic N Y N Marginal interesting do not invest N N Y Keep but Do not further invest N N N Outsource these customers Model of Whitney Source: J. Withney, 1996, HBR Strategic selection MASS Training Copyrighted Makhzani Marketing Dep. 141

142. Strategic Selection 10 S Model of Gosselin Substantial Enough growth potential Size Size of the customer market Sound Margin or Potential Margin Synergy Cultural compatibility Significant If volume is low value with the customer, your value could be very low as well? Stable Can customer loyalty be achieved? Sympathy Do you want this type of customer? Is it a reference for future business? Strategic Fit Do the supplier and customer have and do they agree on a common strategy for the long term? Symbiosis Does the customer, value a long term relationship? Sustainable Do we want to be seen as a partner with this customer? Do we put enough resources to get him? MASS Training Copyrighted Makhzani Marketing Dep. 142

143. Account Management Portfolio Model of McDonald Invest/Grow Selectively Invest Maintain Manage for cash/withdraw Competitive strength Customer Attractiveness H H L L Model is based on the classic McKinsey model Key /Strategic accounts MASS Training Copyrighted Makhzani Marketing Dep. 143

144. Positioning of Strategic Account Management Positioning Model of Gosselin & Heene (2000) Key Accounts Strategic Accounts Transactional Customers Captive Customers Relationship willingness (Customer) Competence Leverage Willingness (Supplier) H HL L Not stable: Invest in specific solutions or manage for profit Invest in relationship or reduce investments Source: D-P Gosselin, 2002 MASS Training Copyrighted Makhzani Marketing Dep. 144

145. Characteristics of the process  Selection of Strategic accounts  Process & Resource allocation  Competence  Advanced Research MASS Training Copyrighted Makhzani Marketing Dep. 145

146. The Principles of Account Management Process Source: Senn & Zeier 2000 Building Long-term Relations Developing Consistent Products/Services Providing a Network Organization Winning and keeping Strategic Customers MASS Training Copyrighted Makhzani Marketing Dep. 146

147. Where do successful Companies perform better? Study conducted by the University of St.Gallen: Senn 1998 & 1999, Senn & Arnold 1999: • N = 200, CS = Customer Satisfaction. High-low pairs significantly different at .01 level • Avg. CS of High Performing Group = 79%, Avg. CS of Low Performing Group = 63% • Results based on supplier performance resp. customer satisfaction ratings by their key accounts 65 % 40 % 68 % 42 % 69 % 46 % Building Long-term Relations Developing Consistent Products & Services Providing a Network Organization High Performers (Avg. Performance) Low Performers (Avg. Performance) Account Management Processes MASS Training Copyrighted Makhzani Marketing Dep. 147

148. MASS TRAINING MASTERING YOUR SELLING SKILLS NEGOTIATION SKILLS Marketing Department Makhzani Co. Ltd 148

149. Objectives  At the end of this training, you will be able to  Determine the importance of negotiation in the sales process  Identify key steps to take at every point in the negotiation process  Determine how to use various negotiation strategies to achieve results  Use effective communication to achieve good negotiation outcomes. MASS Training Copyrighted Makhzani Marketing Dep. 149

150. Content What is Negotiation? Negotiating with Prospects and Customers Negotiation Strategies Communication Skills MASS Training Copyrighted Makhzani Marketing Dep. 150

151. What is Negotiation? MASS Training Copyrighted Makhzani Marketing Dep. 151

152. What is negotiation?  Simply put...  the process of getting what you want from another person.  The truth is we negotiate every day, everyone in their every day lives is a negotiator.  Children negotiate with their parents for things they want.  Spouses negotiate with each other over things they should buy or do this weekend eg. go to the funeral, the wedding or take the children to their friend’s party?  Subordinates negotiate with their bosses over deadlines.  Workers negotiate with their clients over services they can offer them. MASS Training Copyrighted Makhzani Marketing Dep. 152

153. Why negotiate Negotiations occur for several reasons:  To convince people to take your side of an issue  To agree on how to share or divide a limited resource  To resolve a problem or dispute between the parties  To sell a product or service  Sales negotiation MASS Training Copyrighted Makhzani Marketing Dep. 153

154. Sales negotiation  Sales negotiation can be a formal event at a specific time and date or it can be ongoing at different points in the sales process.  As a sales staff you are seeking a mutually beneficial relationship with your prospects and clients, not something that benefits only you or them. Why do you need to negotiate with customers in the first place? MASS Training Copyrighted Makhzani Marketing Dep. 154

155. Because of Customer Attitudes  A customer’s attitude toward your product or service generally falls into one of four categories.....  Objection  Indifference  Skepticism  Acceptance MASS Training Copyrighted Makhzani Marketing Dep. 155

156. Customer Attitudes Acceptance : Customer agrees with your benefits and has no negative feelings toward your product Skepticism : Customer is interested in a particular benefit, but doubts whether your product can really provide the benefit Objection : Customer displays opposition to your product Indifference: Customer shows a lack of interest in your product because of no perceived need for its benefits MASS Training Copyrighted Makhzani Marketing Dep. 156

157. S0 why do you need negotiation skills?...  To be able to change customer attitudes towards your products and services;  Bottom line ....... To win more Customers and improve profits for your organisation. MASS Training Copyrighted Makhzani Marketing Dep. 157

158. Negotiating with Prospects and Customers MASS Training Copyrighted Makhzani Marketing Dep. 158

159. Negotiating with prospects and customers  Negotiation with prospects and customers must be undertaken within the context of the sales process.  Where inadequate prospecting, pre sales preparation and planning is done, negotiation is likely to be unsuccessful. So what does the sales process entail? MASS Training Copyrighted Makhzani Marketing Dep. 159

160. Overview of the sales process 1. Prospecting and qualifying 2. Planning the sales call: The pre approach 3. Approaching the prospect 4. Sales presentation and demonstration 5. Negotiating resistance and objections 6. Confirming and closing the sale 7. Following up and providing after sales service MASS Training Copyrighted Makhzani Marketing Dep. 160

161. Overview of the sales process  Negotiation with the prospect usually begins after you have had the opportunity to present your products and services or after step 4 in the sales process.  At this point, you will be able to gauge whether the prospect  objects  is indifferent  is skeptical or  accepts your product or service  Based on your assessment of the situation, you can then begin to negotiate. MASS Training Copyrighted Makhzani Marketing Dep. 161

162.  Avoid negotiating unless you have had an opportunity to fully present your products and services  Understand the objections raised by your prospect and identify what your prospect or customer’s main points of interest may be based on these objections  Be prepared to illustrate how your offering will benefit them and quantify the value they will get (if possible)  Be prepared to be patient (which can lead to higher trust between you and your prospect)  Be confident in the value your product or service will provide your prospect  Be prepared to work toward a solution that works for both you and your prospect  Know in advance at what point the negotiation is no longer beneficial to you and your organisation and be prepared to walk away Before negotiation begins... Negotiating with prospects and customers MASS Training Copyrighted Makhzani Marketing Dep. 162

163.  Use open ended questions to confirm your understanding of their needs.  Be prepared for tactical responses from prospects and customers – such as exclamations after you explain the terms of your service (eh, aba! etc) or silence – don’t react and instead respond with more questions  Don’t rush to fill pauses with more talk – be comfortable with moments of silence  Listen  Be prepared to make slight adjustments for your prospect if possible eg. Adjust the product/service offering, loan payment terms etc.  Try to identify small things you have both agreed on to help develop positive momentum – summarize these agreements periodically During negotiation... Negotiating with prospects and customers MASS Training Copyrighted Makhzani Marketing Dep. 163

164. If you are able to make a sale… Summarize verbally and/or in writing the details of what you and the customer have agreed on as the terms of the service. Thank the customer/ prospect for their time and reinforce the purchase decision For your next negotiation, review the points that seemed to help move the negotiation process forward – study them, know them, use them If you did not make a sale… Sincerely thank the prospect for their time Avoid appearing annoyed or disappointed Give the prospect an “out” or an opening for them to come back to you/your organisation in the future (have this statement prepared) For your next negotiation, review the points that seemed to prevent the negotiation process from moving forward – study them, know them, and act accordingly After the negotiation... Negotiating with prospects and customers MASS Training Copyrighted Makhzani Marketing Dep. 164

165. Handling objections and resistance  Objections can be defined as statements, questions, or actions by the prospect that indicate resistance or an unwillingness to buy . . . at least yet  Without sales resistance, there wouldn't be any need for salespeople  The first person who reached the prospect would make the sale  Serious negotiations seldom begin until the prospect's objections surface MASS Training Copyrighted Makhzani Marketing Dep. 165

166. Handling objections and resistance  Prospects and customers raise objections for a myriad of reasons • Some people will almost always raise objections, even if they really need the product/service • They may be people who naturally raise objections as a matter of buying technique or negotiation strategy • The prospect may seek reassurance that the product/service will perform or yield the benefits promised • A few prospects will raise objections merely to irritate you the salesperson MASS Training Copyrighted Makhzani Marketing Dep. 166

167. Handling objections and resistance • Some prospects raise objections so that they can bargain for a better deal. Irrespective of how good your terms may be compared to the competition, some prospects are obsessed with getting an even better deal so that they can feel “victorious.” • Prospects may raise an objection because they have a bias against the your organization or type of service or, in rare cases, simply dislike you the salesperson. MASS Training Copyrighted Makhzani Marketing Dep. 167

168. Handling objections and resistance  Identifying and negotiating the prospect's most important or key objection is the first step to negotiating total prospect resistance.  One subtle way is by engaging the prospect in informal conversation before the sales presentation and encouraging him or her to reveal personal concerns and perspectives on problems Which other ways can you think of? MASS Training Copyrighted Makhzani Marketing Dep. 168

169. Negotiation outcomes PROSPECT SALESPERSON Win Lose Win Both the prospect and the sales person are satisfied with the terms of the sale and a good business relationship develops The salesperson is satisfied with the sale but the prospect is not. He may even feel manipulated or taken advantage of. The business relationship is in trouble Lose The prospect is satisfied with the sale but the sales person feels manipulated and may reciprocate in future negotiations or reduce customer service. The business relationship is in trouble. Both parties are dissatisfied with the sale thus the bond of trust between them may be so damaged that they are unlikely to enter into any future business relationship. MASS Training Copyrighted Makhzani Marketing Dep. 169

170. Common mistakes to be avoided in negotiation  Inadequate preparation  Use of intimidating behavior  Impatience  Loss of temper  Talking too much, listening too little, and remaining indifferent to body language.  Arguing instead of influencing. MASS Training Copyrighted Makhzani Marketing Dep. 170

171. Negotiation Strategies MASS Training Copyrighted Makhzani Marketing Dep. 171

172. Negotiation Strategies  There are various well tested strategies that can be used to achieve a win-win outcome, such as those used by Akosua and Ebo as outlined in this section.  Akosua and Ebo decide to visit a well known business area to win new clients for their institution.  Their first stop is an office located in the area with a lot of staff who are ideal potential clients. Akosua and Ebo intend to introduce their services to them, get them to be interested in the services to the point where they will actually sign on for a service such as open an account and/or take a loan. MASS Training Copyrighted Makhzani Marketing Dep. 172

173. Negotiation Strategies Strategy Approach Vinegar – Honey Start with the cheapest possible product or service but one which still has benefits for the prospect. Akosua approaches one of her prospects and informs him that he can access a loan with very little effort – she goes ahead to explain the procedure for obtaining a loan from her organization. Practice with the cheapest product/service on your listing. MASS Training Copyrighted Makhzani Marketing Dep. 173

174. Negotiation Strategies Strategy Approach Pinpoint the need Focus on the need ie. Why a loan will be beneficial to the prospect and enumerate the benefits s/he would derive from the loan. Akosua’s prospect appears skeptical about the process and indicates so, stressing that he knew people who had been made similar promises but went through a lot of stress to obtain loans. She ignores his comment and begins to highlight the benefits to be derived from such a loan. MASS Training Copyrighted Makhzani Marketing Dep. 174

175. Negotiation Strategies Strategy Approach Challenge The prospect throws a challenge at Akosua in an effort to win some concessions. The prospect goes quiet for a while then tells Akosua that he needs a loan of GHC 5,000 but wants to be able to negotiate the terms of payment because he knows two people from his office who got a similar deal. MASS Training Copyrighted Makhzani Marketing Dep. 175

176. Negotiation Strategies Strategy Approach Limited Authority Limited authority is an attempt to postpone the decision on a pretext to get approval from a competent authority. Whereas the real aim is to gain time for reconsideration, and/or keeping the prospect still interested in the service for a reasonable period of time until a win-win situation is achieved. Akosua says, ‘those two people you are referring to took huge loans and so were given the opportunity to negotiate their terms of payment’ . But she indicates that she will speak to her boss about it. MASS Training Copyrighted Makhzani Marketing Dep. 176

177. Negotiation Strategies Strategy Approach Good Guy/Bad Guy The good guy / bad guy is an internationally used strategy. One member of a team takes a hard line approach while other member is friendly and easy to deal with. When bad guy steps out for a few minutes, the good guy offers the deal that under the circumstances seems too good to refuse. Bad guys usually comprise spouses, lawyers etc. Based on your experience on the field, how would you act out the good guy/bad guy strategy to your favour? MASS Training Copyrighted Makhzani Marketing Dep. 177

178. Negotiation Strategies Strategy Approach Defer Deferring strategy allows the negotiators time to reevaluate their positions. Deferring a decision often proves that patience pays. Please excuse us while we discuss ways in which we might provide you a better offer. Would you please reevaluate your position too? MASS Training Copyrighted Makhzani Marketing Dep. 178

179. Negotiation Strategies  Keep It Light  You never want to let negotiations become too tense. Always feel free to smile and inject some humour in the conversation.  Lightening up the mood can ingratiate you with your prospect while also conveying your negotiating strength.  If you do not appear to be taking the negotiation as a do or die affair, your prospect may conclude that you are ready to move on if s/he does not cooperate and based on that s/he may decide to be cooperative. MASS Training Copyrighted Makhzani Marketing Dep. 179

180. MASS TRAINING MASTERING YOUR SELLING SKILLS Communication Skills Marketing Department Makhzani Co. Ltd 180

181. Communication Skills  Communication skills are crucial in the kind of negotiations you engage in as field staff. Good communication is the cornerstone of any productive negotiation. Particularly important are  Oral communication and  Non-verbal communication  It is also important that as field staff you are aware of critical cultural norms that exist within your area of operations.  Fortunately, the Ghanaian culture does not vary too much from one place to another MASS Training Copyrighted Makhzani Marketing Dep. 181

182. Oral Communication  Oral communication implies communication through the mouth. It not only refers to speaking but includes the ability to listen as well.  Specific examples of oral communication include:  Face to face communication in conversation, be it direct or telephone conversation, meetings, interviews, speeches, presentations, discussions etc.  Oral communication is significant in building rapport and trust with customers. MASS Training Copyrighted Makhzani Marketing Dep. 182

183. Oral Communication  When communicating with your prospects and customers  Slow down your speech and pronounce your words clearly and correctly.  Vary your pitch, tone and volume to emphasize key words or sentences.  Adjust the volume of your voice to your audience  speak softly but audibly when you are talking one-on-one  speak louder when you are talking to a larger group or across a room  Be conscious of your speech to avoid filler words such as um, uh, ah, like, well etc. MASS Training Copyrighted Makhzani Marketing Dep. 183

184. Oral Communication  Organize your thoughts and ideas before speaking (e.g. write notes on what you want to say).  Do not interrupt when someone else is speaking.  Respond non-verbally to show understanding and interest when communicating  nodding your head, smiling etc.  Make eye contact when listening or talking to people.  Be specific when asking questions and giving answers.  Take notes if necessary to help you remember what is being communicated. MASS Training Copyrighted Makhzani Marketing Dep. 184

185. Oral Communication  Phrase your words properly; it makes a difference. Two priests were so addicted to smoking that they desperately needed to puff on cigarettes even when they prayed. Both decided to ask their superior for permission to smoke. The first asked if it was okay to smoke while praying? Permission was denied. The second priest asked if he was allowed to pray while he was smoking. His superior found his dedication admirable and immediately granted his request. MASS Training Copyrighted Makhzani Marketing Dep. 185

186. Listening: a strong negotiation tool!  Perhaps the best strategy to adopt while the other side lets off steam is to listen quietly without responding to their attacks.  You often get more through listening by finding out what the other person wants than you do by clever arguments supporting what you need.  Generally, good techniques of good listening include  paying close attention to what is said,  asking the other party to spell out carefully and clearly exactly what they mean,  requesting that ideas be repeated if there is any ambiguity or uncertainty. MASS Training Copyrighted Makhzani Marketing Dep. 186

187. Non-verbal communication  When we do not know others, their body language remains the first source of building image about them.  What people say may be reinforced or contradicted by the non-verbal cues.  When there is no consistency between the verbal and non-verbal communication, people rely on the non-verbal aspect of communication to determine the true meaning of what is being said. MASS Training Copyrighted Makhzani Marketing Dep. 187

188. Non-verbal Communication VibesSymbolic How something is said instead of what is said i.e. volume, rate and rhythm, silent pauses, sighs etc. Facial expressions, body gestures, dress etc. KinesicsParalanguage Feelings and emotions received from others through their body actions MASS Training Copyrighted Makhzani Marketing Dep. 188

189. Non-verbal communication Body Language What it could mean Avoiding eye contact Lack of confidence in bargaining position Making excessive eye contact Trying to bully or intimidate Fiddling with objects such as hair, pencils, or papers Lack of confidence Crossing and uncrossing the legs Impatient Keeping legs and arms crossed Not receptive MASS Training Copyrighted Makhzani Marketing Dep. 189

190. Cultural norms  Some general Ghanaian norms include:  Not using the left hand in communicating with others either to give something to someone or point in a direction etc.  Greeting the people we meet wherever we go What are some of the cultural norms in your area of operation? MASS Training Copyrighted Makhzani Marketing Dep. 190

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