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PRESENTATION 2. Advantages of Personal Selling. Provides a detailed explanation or demonstration of product Message can be varied to fit the needs of each prospective customer Can be directed to specific qualified prospects Instant feedback. Handling Objections.
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Advantages of Personal Selling • Provides a detailed explanation or demonstration of product • Message can be varied to fit the needs of each prospective customer • Can be directed to specific qualified prospects • Instant feedback Dept. of Telecom
Handling Objections • Acknowledge and Convert the Objection- use the objection as a reason to buy (expensive) • Postpone hold off answer because next info will convince buyer (complicated) • Agree and Neutralize show the objection’s insignificance (side effects) • Denial refute objection with clear facts Personal Selling Presentation
Personal Selling: Follow-Up Address concerns with delivery and installation, so today’s customer becomes tomorrow’s qualified prospect or referral source
PERSONEL SELLING SKILL • The personal selling process consistsof six stages: • prospecting, • approach, • presentation, • close, • follow-up.
Personal Selling: Presentation A) Stimulus-Response Format – (suggestive selling) keep suggesting items until the buyer responds, like the McDonalds order taker B) Formula Selling Format – more formal and planned, like a telemarketer Canned Selling Presentation Memorized, standardized message conveyed to every prospect. Works when seller is a novice or does not know the buyer well
Personal Selling: Prospecting • Prospect- possible customer • Qualified Prospect-customer who has desire, means and power to decide • Cold Canvassing- seller initiated contact of potential customers without advance warning. Dept. of Telecom
Handling Objections • Acknowledge and Convert the Objection- use the objection as a reason to buy (expensive) • Postpone hold off answer because next info will convince buyer (complicated) • Agree and Neutralize show the objection’s insignificance (side effects) • Denial refute objection with clear facts Personal Selling: Presentation
Trial Close-”Can I put you down for blue or green?” • Assumptive Close-ask about delivery or warranty choices. • Urgency Close-”Offer valid for today only.” • Final Close-Buyer initiated acceptance of the sale. Personal Selling: Close
Negotiation Skills Welcome Dept. of Telecom
Why Negotiate? • ‘Animals do not negotiate. They use violence or the threat of violence to get what they want, whether it be food, a mate or territory.’ • Have you ever seen 2 dogs negotiate over a bone? • ‘Trade is the human foundation of human civilisation. It is what makes humans different from animals.’ • ‘Negotiation is anathema to tyrants, who usually want something for nothing and do not recognise a need for another person’s voluntary consent before they get what they want’
Some decision making tools for negotiation: Persuasion: Usually the first method we choose when we want something. Useful when interests or opinions are the same. Giving in: This is not the easy way out, and sometimes it’s just not worth continuing if the cost (in any terms) is too high. Coercion: This could simply be stating your options, ‘I could take my business elsewhere’. It could also be gentle reminders or unspecified consequences right up to threats. Threats are not useful in a negotiation situation as they erupt in full blown battles. Problem Solving: Works well when both parties have a strong relationship, where you trust each other, and share the problem.
When do we Negotiate? When we need someone’s consent When the time and effort of negotiating are justified When the outcome is uncertain Source: The Negotiate Trainers Manual 1996 p6.
11 The Four Phases of Negotiation BARGAIN PROPOSE DEBATE PLAN
12 PLAN When you have no time to prepare for a negotiation, do you: a. Rely on your experience of similar situations? b. React to what the other person has said? c. Listen to them and adjourn at the first opportunity? a. This might be tempting on the grounds that it is all you have time for and could become a habit of this is how you prepare for all other negotiations – even when you do have time. b. This is the limit of preparation for some people, and is a sign of reactive management. c. The best response. If are thrown in the deep end and do not have any preparation time.
14 PLAN • What do I want? • What do they want? Try to judge the objective they will want, what arguments are they going to use to support their objective and how will you counter them? • What will/can I trade? • Explore all the available options of the trade • Explore long and short term implications of each option for all parties involved • Set objectives in terms of acceptable limits and that you have a realistic chance of achieving. • Visualise possible gains, not losses. • Be aware that the opposition might have a hidden agenda
17 DEBATE The other negotiator is quite angry and winds up her tirade of a clear threat of what she will do if she does not get her way. Do you: a. Ignore her threats and concentrate on rebutting her claims? b. Demand that she withdraw her threat if you are to continue negotiating? c. Counter her threat with one of your own? a.Better to ignore the threats. b. It’s pointless, and unlikely she will withdraw. c. No. This could spark of a cycle and end up in a fight.
21 DEBATE • Deliver the statements in a neutral tone. Deliver it in a hostile tone and you can predict the effect and response. • Reinforce your tone with your behaviours. You want a solution to meet both parties needs. • Give assurance, i.e. you are in the ‘solution business’, and any current difficulties are problems to be jointly overcome. • Disclaim any intention of acting negatively towards the other party. • Use questions to elicit information not to fuel argument. Questioning is an important negotiating skill, and demonstrates your willingness to understand the other negotiators interests • Actively listen, don’t pretend to listen and don’t wait to speak – give the speaker your full attention. • Summarise their views too their satisfaction to demonstrate you have understood.
27 PROPOSE • Avoid – ‘wish’, ‘hope’, ‘would like’ – this is not assertive • When you make and consider proposals it means you are moving towards a jointly agreed solution. • Proposals consist of 2 elements: the condition plus the offer and can be best presented with the ‘If ….Then’ technique. • Both the condition and the offer can be couched vaguely. But it is better to state your condition first. Example 1:‘If you change your terms of business, then I could consider some amendments to our payment schedule.’ Is example 1: A. Vague-vague (vague in condition and offer) B. Specific-vague (specific in condition and vague in offer)
32 BARGAINING How would you amend the following proposals into a bargain format? • ‘If you agree to some form of bonus, then we will raise the productivity by 5%’ • ‘If we secure and fence the site, will you expedite the purchase date by 90 days?’ • ‘If we receive assurances, then we will pay £100,000 against your outstanding debts.’ • ‘If you agree to a 20% bonus then we will raise productivity by 5%.’ • ‘If you expedite the purchase date by 90 days, then we will secure and fence the site.’ • ‘If we receive the appropriate assurances as detailed in our letter of 12 August, then we will pay £100,000 against your outstanding debts.’
35 Closing the Negotiation Summary Close Summarise the details of the conditions and the offer, and ask for agreement. Adjournment Close Useful where there remains some small differences. It gives both parties time to consider the final agreement. Final Final offer close Make it clear that this is your final final offer by choosing the right words, tone and body language. Create an atmosphere of decisiveness, gather your papers together as though getting ready to leave.
35 Closing the Negotiation Summary Close Summarise the details of the conditions and the offer, and ask for agreement. Adjournment Close Useful where there remains some small differences. It gives both parties time to consider the final agreement. Final Final offer close Make it clear that this is your final final offer by choosing the right words, tone and body language. Create an atmosphere of decisiveness, gather your papers together as though getting ready to leave.
