Selling and Negotiation Skills [1 ed.] 9789350432037, 9788184885668

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Sumit Kati Vikesh Ramchandani

Hmt GJIimalaya GpublishingC}{ouse MUMBAJ • NEW DELHI • NAGPUR • BANGALORE • HYDERABAD • CHENNAI • PUNE • LUCKNOW • AHMEDABAD • ERNAKULAM • BHUBANESWAR • INDORE

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PREFACE In the competitive, world of today. neither sales nor negotiations are limited to people whose profession demand these. In fact. these dual traits have extended much beyo~d professionai life and have a great role to play in personal walks of lives as well. Thus making it of utmost importance for everyone to understand the basics as well as their importance to real life for better times ahead. An age old theory claims 'Sales is all about negotiations' while there is another school of thought which emphasizes on 'Every negotiation has a strong selling component to it'. Both these chains of thought are absolutely right in their own way. As we feel that both the concepts are inter-woven. and their interdependency is inevitabl~ we have covered each of them. with the help of numerous live examples along With real life e x p e r i e n c e s . ' ,-

.

'The book will help the student fraternity trying to get their first footholds in the corporate world as well accomplished sales professionals attempting to surge upwards on the ladder of growth to get their concepts refreshingly clear and in the process enabling the use of the same in the real world. In simple words a must read for every student and sales professional. Although there are numerous books available on sales and marketing along with the books on negotiation skills we have endeavored to make the subject as crisp and concise as possible for easy learning and grasping. We encourage any suggestions that you may wish to share which could be incorporated in future editions. Happy Reading!

Authors

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SYLLABUS

1. Types of Negotiation 2. Negotiation Strategies 3. Selling Skills-Selling to Customers 4. Selling to Superiors 5. Selling to Peer Groups, Teammates and Subordinates 6. Conceptual Selling, Strategic Selling 7. Selling Skills-Body Language

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CONTENTS

1. Negotiation

1 - 15

2. Negotiation Strategies

16 - 52

3. SeIling Skills

53 - 70

4. Selling to Superiors

71 - 84

5. Selling to Peer Groups, Teammates and Subordinates

85 - 97

6. Conceptual Selling, Strategic Selling

98 - 107

7. Body Language

108 - 122

Case Studies

123 - 133

References

134

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Cllapter

1 'Negotiation

Objectives After going through this chapter, you will be able to understand: • The concept of negotiation • Importance of negotiation • Types of negotiations ~ Distributive negotiations ~

Integrative negotiations

Structure: 1.1 What is Negotiation? 1.2 Is Negotiation Necessary? 1.3 Types of Negotiation 1.4 Summary 1.5 Self Assessment Questions

•

Selling and Negotiation Skills

Yesterday morning my two year daughter was ~~ry keen on having an ice-cream. But unfortunately at that time.of the hour. all the icecream parlors in our locality are not open. But as kids they will not understand all this. they want something. means they want . it right there. We tried to pursuade her that we would get her an icecream later in the day. Fortunately. after a 15 minutes drama she agreed to it but on the condition ~hat we give her a chocolate right now. Just give a thought over the incident, my two year old daughter who could barely say her name had also successfully negotiated a deal. The point is every person negotiates at some point or the other either knowingly or unknowingly. Thus. negotiation is something that we do all the time and is not only used for business purposes. For example. we use it in our social lives perhaps for deciding a time to meet, or where to go for a party or a picnic.

1.1 WHAT IS NEGOTIATION? Negotiation is a dialogue inte~ded to resolve disputes. to produce an agreement upon courses of action. to bargain for individual or collective advantage. or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. In simple words. negotiation is the basic means of getting the things you want from others. It could reflect when you are going for a picnic with a group of friends or going for dinner with your spouse. Now the difference is in the way one gets the things which he or she wants. Depending on various factors like (a) time. (b) pOSition. (c) information. (d) relation with the opposite party. one deCides the way of getting things done. For example. where one does not exp('ided on the model." Also attending other customers very curiously as such he is not bothered with this washing machine sale. On top of it. he had over heard our conversation. Thus. he had more information about us. We had least information about him like.

"Has he met his targets? "Is the company getting rid of this model?"

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Selling and Negotiation Skills

"Is it the stores hottest item?"

"Is the store keen on selling this model? Or do they want to push some other model?" "What's the inventory situation on this model?" Thus. with lack of information and time pressures from every side. I had to crumble and buy at the terms of the store.

In other words. your deadlines and time constraints will play an important role in positioning you during the process of negotiation. Power:

On the negotiation table one feels powerful or weak due to many reasons for example (a) Lack or plethora of information (b) Higher or lower designation (c) Size of the order (d) Availability of options (e) Time pressures (f) Importance of the deal (g) Availability or non-availability of authority Above mentioned is just an indication. there could be various reason to feel powerful. Power is a mind-blowing entity. It is actually the capacity or ability to get things done. to exercise control over people. events or situations. However a lot of power is based on perception. If you think you have got it. then you've got it. Vice Versa. if you think you don't have it. even if you have it, then you don't have it. In other words, you have more power if you believe you have power and view your life's encounters as negotiations. One needs be very careful when negotiating on behalf of the organisation as in this case the power will depend on the kind and limit of power the organisation has given the person. Just imagine you have entered a shop where you like a pair of Jeans. but feel that it is little too much for your wallet. As you were planning to ask for a discount your eyes suddenly come across a board which clearly and loudly says "FIXED PRICE". Now. suddenly your mind changes the direction of thinking and starts calculating how you can buy this at the displayed cost. Here. the board of "FIXED PRICE" has overpowered you and even before speaking to the sales person you feel weak.

Negotiation Strategies

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Let's take this a step further; a friend who is accompanying you forces you to at least ask for a discount. Anyway by now your confidence level has lowered. and then also with pseudo confidence in your voice you ask the sales person. "I want to buy this pair of jeans. what is the discount you can offer?" The sales person very politely pOints towards the board and replies "I am sure you will appreciate the fact that management has made this a fixed price zone."

Now whatever confidence you had has been totally empowered. The point here is it is not always necessary that the person needs to show his/her power in the form of words. It could be his/her behavior or as seen in the above case it was a silent display board. Resolving Disputes

Communication is of great help while resolving disputes. Without communication. there is no negotiation. Listen actively and acknowledge what is being said. Listening enables you to understand their perception. feel their emotions. and hear what they are trying to say. Ask the other party to spell out exactly what they mean or repeat ideas if they are unclear to you. For instance. if you are supposed to buy say some desktops for your office. and are in the midst of the negotiations. The sales persons inform you with an very genine look on his face. "Sir. do not worry we will work out the best deal for you." In this case you might want want to ask him to define what does he exactly mean by the best deal. Active listening improves not only what you hear but what they say. Describe a problem in terms of its impact on you rather than in terms of what they did. For example. say "I feel let down" instead of "You broke your word". Speak with purpose and make every word count. Once a person gets his or her commupication right it becomes very easy to resolve any disputes. Resolvi:.g disputes is a subject in itself: here we would discuss resolving disputes very briefly. There are three ways to resolve disputes. regardless of whether the confrontation is direct or indirect (a) Interests and Culture (b) Rights and Culture (c) Power and Culture You can uncover the interests underlying disputants' positions and integrate those interests.

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Selling and Negotiation Skills

You can detennine who is right and who is wrong according to some standard of fairness. contract. and law or precedent. You can detennine who is more powerful and therefore who should concede.

Interests: Wants. needs or concerns of negotiator. company or the other party. Rights and Standards: Explicit and implicit rules. procedures and regulations. A trend. traditions. conflicts. asking and telling.

Power Statements: Uncooperative statements to intimidate or suggest negative conseq&ences. Strategies for Negotiation: Before understanding any of the strategies let us first go through two important and proven concepts. i.e;

ZOPA (2) BATNA

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What is a ZOPA and why does it matter? ZOPA (Zone of Possible Agreement) Of what use is talking about interests. options. and standards if the other side has a stronger bargaining position? What do you do if the other side is richer or better connected. or if they have a larger staff or more powerful weapons?

No method can guarantee success if all the leverage lies on the other side. No book on gardening can teach you to grow lilies in a desert or cactus in a swamp. If you enter an antique store to buy a ancient mogul tea set worth lakhs of rupees and- all you have is five thousand rupees. you should not expect skillful negotiation to overcome the difference. In any negotiation. there exist realities that are hard to change. In response to power. the most any method of negotiation can do is to meet two objectives; first. to protect you against making an agreement you should reject and second. to help you make the most of the assets you do have so that any agreement you reach will satisfy your interests as well as possible. In any negotiation. both the parties have to agree at some point or the other. In other words. there has to be something called as ZOPA. What does ZOPA stand for? It is an acronym which means Zone of POSSible Agreement. It is the range or area in which an agreement is satisfactory to both parties involved in the negotiation prot'ess.

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Negotiation Strategies

Often referred to as the "Contracting Zone". ZOPA or the Contracting Zone is essentially the range between each parties real base or bottom lines. and is the overlap area in the low and high range that each party is willing to payor find acceptable in a negotiation.

In other words. a "Zone of POSSible Agreement" (ZOPA) exists if there is a potential agreement that would benefit both sides more than their alternative options do. For example. if Ram wants to buy a used car for Rs. 1.50.000/- or less. and Shyam wants to sell one for Rs. 2,00,000/- Does this transaction have ZOPA. Shyam will not go below Rs. 2.00.000/- and Ram will not go above Rs. 1,50,000/, they do not have a Zone of Possible Agreement.

ZOPA does not exist

Rs.150,000

Rs.2oo,000

Finding this zone is very important in the whole process of negotiations. In case of individuals this could be either found by appropriate probing Oeading questions) or the body language of the opposite person. In case of institutional or while selling to a corporate or a company (organization), the process in finding this zone reqUires a little bit of detective work in order to make it work. It begins with a proposal by a person, commercial entity or organization known as a ·Proponenf. Essentially, this is the person who puts an offer on the table. The receiving end of a proposal is known as a 'Prospect. This is the person or entity who conSiders the merits of the offer or proposal. The prospect will accept the proposal. make a counter proposal/offer, or reject it outright. This is where the game begins to get serious.

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Selling and Negotiation Skills

ZOPA .--____A ....._ _----..

r Rs. 7000

I

IRS. 8000

'\

Rs.9000

Rs.lO,OOO

Say you want to sell your cell phone, thus, you put up an advertisement saying that you want to sell it for Rs. 10,000/-. But you are also willing to sell it for anything above Rs. 8000/-. Shyam wants to buy your mobile, thus he called you and made an offer of Rs. 7000/- to you, but Shyam is not willing to pay above Rs. 9000/-. Let us see this in the form of diagrammatical representation. The ZOPA is critical to the successful outcome of negotiation, but it may take some time to determine whether a ZOPA exists. It may only become known once the parties explore their various interests and options. If the disputants can identify the ZOPA, there is a good chance that they will come to an agreement. Foundations of ZOPA: BATNAs

In order for disputing parties to identify the ZOPA, they must first know their alternatives, and thus their "bottom line" or "walk away position."

Alternatives: Parties must determine what alternatives they have to any agreement. Roger Fisher and William Ury introduced the concept of "BATNA" (Best Alternative To a Negotiated Agreement). This is the best course of action that a party can pursue if no agreement is reached. Bottom Lines or Walk-away Positions: BATNAs determine each side's bottom lines. If you have an alternate product or seIVice available for lesser price then you would not mind walking out from the deal. Or if you are the seller and have a buyer who is ready to pay or you are confident that you will find a buyer who will pay more than the offered price that will be your bottom line. If you don't do better than that in the negotiation, you'll walk away. The insecurity of an unknown BATNA: If you have not thought carefully about what you will do if you fail to reach an agreement, you are negotiating with your eyes closed. You may, for instance, be too optimistic and assume that you have many other choices;

Negotiation Strategies

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One frequent mistake is psychologically to see your alternatives in the aggregate. You may be telling yourself that if you do not reach agreement on a salary for this job, you could always go to another city or an organization, or go back to school, or write, or work on a farm, or do something else. In your mind you are likely to find the sum of these alternatives more attractive than working for specific salary in a particular job. The difficulty is that you cannot have the sum total of all those other alternatives; if you fail to reach an agreement, you will have to choose just one.

You may avoid facing the question of what you will do if no agreement is reached. You may think to yourself, "Let's negotiate first and see what happens. If things don't work out, then I'll figure out what to do." But havin.g at least a tentative answer to the question is absolutely essential if you are to conduct your negotiations wisely. Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available alternative.

The better your BATNA, the greater your power. People think of negotiating power as being determined by resources like wealth, political connections, physical strength, friends. and military might. In fact, the relative negotiating power of two parties depends primarily upon how attractive to each the option is of not reaching agreement. ConSider a wealthy tourist who wants to buy a small brass pot for a modest price from a vendor at suburban station in Mumbai. The vendor may be poor, but he is likely to know the market. If he does not sell the pot to this tourist, he can sell it to another. From his experience, he can estimate when and for how much he could sell it to someone else. The tourist may be wealthy and "powerful," but in this negotiation he will be weak indeed unless he knows apprOximately how much it would cost and how difficult it would be to find a comparable pot elsewhere. He is almost certain either to miss his chance to buy such a pot or to pay too high a price. The tourist's wealth in no way strengthens his negotiating power. In order to convert that wealth into negotiating power, the tourist would have to apply it to learn about the price at which he could buy an equally or more attractive brass pot somewhere else. Think for a moment about how you would feel walking into a job interview with no other job offers - only some uncertain leads. Think how the salary discussions would go. Now contrast that with how you would feel walking in with two other job offers.

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Selling and Negotiation Skills

. How would that salary negotiation proceed? The difference is

power.

Develop your BATNA. Vigorous exploration of what you will do if you do not reach an agreement can greatly strengthen your hand. j\ttractive alternatives are not just sitting there waiting for you; you usually have to develop them. Generating possible BATNAs requires three distinct operations: (1) inventing a list of actions you might conceivably take if no

agreement is reached; (2) improving some of the more promising ideas and converting them into practical alternatives; and (3) selecting. tentatively. the one alternative that seems best. (1) Inventing a list of actions you might conceivably take if no agreement is reached: , The first operation is inventing. If by. the end of the month Company X does not make you satisfactory job offer. what are some things you might do? Take a job with Company Y? Look in another city? Start a business on your own? What else? For a labor union. alternatives to negotiated agreement would presumably include calling a strike. working without a contract. giving a sixty-day notice of a strike. asking for a mediator. and calling on union members to "work to rule." (2) Improving some of the more promising ideas and c~verting them into practical alternatives: The second stage is to improve the best of your ideas and turn the most promising into real alternatives. If you are thinking about working in Mumbai. try to turn that idea into at least one job offer there. With a Mumbai job offer in hand (or even having discovered that you are unable to produce one). you are much better prepared to assess the merits of a offer in another smaller town. Incase of a labour unions trying to negotiate hard from a long period of time. it should convert the ideas of calling in a mediator and of striking into drafts of specific operational decisions ready for execution. The union might. for instance. take a vote of its membership to authorize a strike if a settlement is not achieved by the time the contract e~ires. (3) Selecting, tentatively, the one alternative that seems best: The final step in developing a BATNA is selecting the best amongst the alternatives. If you do not reach agreement in the negotiations. which of your realistic alternatives do you now plan to pursue?

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Negotiation Strategies

Having gone through this effort, you now have a BATNA. Judge every offer against it. The better your BATNA, the greater your ability to improve the terms of any negotiated agreement. Knowing what you are going to do if the negotiation does not lead to agreement will give you additional confidence in the negotiating process. It is easier to break off negotiations if you know where you're going. The greater your willingness to break off negotiations, the more forcefully you can present your interests and the basis on which you believe an agreement should be reached. f

Consider the other side's BATNA. You should also think 'about the alternatives to a negotiated agreement available to the other side. They may be unduly optimistic about what they can do if no agreement is reached. Perhaps they have a vague notion that they have many alternatives and are under the influence of their cumulative total. The more-you can learn of their alternatives, the better prepared you are for negotiation. Knowing their alternatives, you can realistically estimate what you can expect from the negotiation. If they appear to overestimate their BATNA. you will want to lower their expectation. Their BATNA may be better for them and any fair solution can emerge. So. a zone of possible agreement exists if there is an overlap between these walk away positions. Here let us refer back to our old example of mobile deal which was represented as follows:

ZOPA .---_ _-'A_ _ _-.. ('

Rs. 7000

I

IRS. 8000

~

Rs.9000

Rs.1O,OOO

Here as you can clearly see there is a clear cut ZOPA anywhere between Rs. 8000/- to Rs. 9000/-. The buyer and seller may agree on any figure which could be between Rs. 8000/- to Rs. 9000/-. If there is no ZOPA, negotiation is very unlikely to succeed. In fact, it will only succeed if one party either realizes that his or her BATNA is not as good as he or she thought, or she deCides for some

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Selling and Negotiation Skills

other reason to accept the agreement. even though an alternative option might have yielded better results. (This often happens when parties do not explore or understand their BATNAs well enough.) Identifying the ZOPA

If both sides know their BATNAs and walk away positions, the parties should be able to communicate, assess proposed agreements, and eventually identify the ZOPA. However, parties often do not know their own BATNAs, and are even less likely to know the other side's BATNA. Often parties may pretend they have a better alternative than they really do, as good alternatives usually translate into more power in the negotiations. This is explained more in the essay on BATNA. The result of such deception, however, might be the apparent absence of a ZOPA, when one actually did exist. Shared uncertainties may also affect the parties' abilities to assess potential agreements because the parties may be unrealistically optimistic or pessimistic about the possibility of agreement or the value of alternative options. ZOPA in Distributive and Integrative Negotiations

The nature of the ZOPA depends on the type of negotiations. In a distributive negotiation, in which the partiCipants are trying to divide a "fixed pie," it is more difficult to find mutually acceptable solutions as both sides want to claim as much of the pie as possible. Distributive negotiations over a single issue tend to be zero sumthere is a winner and a loser. There is no overlap of interests between the parties; therefore, no mutually benefiCial agreement is possible. For example, two people may be competing for one job. In the simplest case, there is no ZOPA because both people want the fulltime job and are not willing to divide the job responsibilities and salary. One person must "win" and the other must "lose." On the other hand, integrative negotiation involve creating value or "enlarging the pie." This is possible when parties have shared interests or are dealing with multiple issues. In an integrative negotiation, the parties can combine their interests to create joint value. To achieve integration, negotiators can deal with multiple issues at the same time and make trades between them. This is so that I might get more of something that I value while you get more of something that you value. That way both parties can "win," even though neither gets all that they originally thought they wanted. In the example above, if rewriting the job description could create an additional job then the distributive negotiation would change into an integrative negotiation between the employer and the two potential employees. If both applicants are qualified, now they may both get

Negotiation Strategies

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jobs. The ZOPA, in this case, exists when two jobs are created and each applicant prefers a different one of the two. SEPARATE THE PEOPLE FROM THE PROBLEM

We as human beings form an image about the person we are talking to and associate certain characteristics to the same. Whenever. we converse or even think about conversing with that person we start associating the reaction. the outcomes with the associated characteristics. Thus. in other words. we form a perception about a certain person which in tum leads to, making, the whole thing more people driven than problem driven. But, not necessarily that this kind of approach is always bad. In fact, the human aspect of negotiation can be either helpful or disastrous. The process of working out an agreement may produce a psychological commitment to a mutually satisfactory outcome. A working relationship where trust, understanding respect and friendship are built up over time can make each new negotiation smoother and more efficient. Due to indiVidual ego, every person sees the world from their own personal vantage point and they frequently confuse their perception with reality. Perception are formed based on various factors like the society in which the person is born and brought up, the cultural enVironment, his/her past experience, peers, friends, family members education background or sometimes the timing and the angle from which the person has witnessed an event, e.g., some problem in the office will have the superior form a different perception and will have a different effect on the employee. In the organisation it has been observed that misunderstanding can lead to reactions that produce counter reactions and as a result leads to failure of negotiations. Whenever in negotiation one should always remember to keep the people and the actual problem separately. Because many a times relationship tends to become entangled with the problem. For a successful negotiation, one should be able to separate the problem from the person.

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Selling and Negotiation Skills

Example of perception:

Employee

(1)

Too much of work load

(2)

EwI)' day end up sitting late

(3) (4)

in office I am underpaid for my quantum work My potential is being wasted here

Employer (1) Does not even submit one assignment/project on time. (2)

Productivity is low

(3)

Pay should be made performance related He is not able to prove himself in any of the assignment/ projects. Overall costs are very high and we need to control them He never asks for responsibility. He is not proactive.

(4)

(5)

Others are being paid more

(5)

(6)

Whenever I am assigned a responsibility I handle it very efficiently

(6)

(7)

My boss is distant. he never asks me how things are

(7)

I am a conSiderate person. who always gives space and never intervenes in micro details of the assignment/ projects

Consider two management trainees. one has come from a very reputed and world class B-school while the other has come from a below average business school. They have successfully completed their one year and now it is time for their appraisal. In the past one year it has been observed the student from below average B-school is a better term member and is also hardworking and was thus able to complete projects and aSSignments assigned to him within the deadlines provided. But this was not the case with the other management trainee. Both were reporting to the same person. thus were supposed to get appraised by the same person. Their manager had very high regards for the B-school from which the first person had come. In spite of his non-performance the manager had a special place for that person who comes from the reputed B-school. Now during the process of appraisal the manager was towards the first trainee was very evident. He was not realizing that this is causing harm to the organisation. In fact. the boss also feared that as the person coming from a world class B-school might easily get another job somewhere else and thus, leave the organisation, and this fear was also a reason for the bias. But one should be able to separate the problem from the person one is dealing with.

Negotiatic n Strategies

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Focus on Interests, Not Positions For a wise and fair solution. reconcile interests not positions. Behind r,:lposed positions lie shared and compatible interests as well as conflicting ones. A farmer trying to buy a drill needs grow his wheat crop and generate income. The machinery dealer has an investment in the drill and needs to recover the cost of the equipment. interest on borrowed money. store overhead costs. salaries of salesman. etc. The farmer and machinery dealer have compatible interests the farmer would like to have the drill and the machinery dealer would like him to have it. Conflicts may arise when terms of an exchange are discussed.

Each side has multiple interests. The most powerful interests are basic human needs: security. economic well-being. a sense of belonging. recognition. and control over one's life. Identify the interests of all the parties involved in the negotiation. Ask why. and then ask why not? Make a list to sort various interests on each side: It helps to write them down as they occur to you. Make your interests come alive-be specific. Concrete details not only make your interests credible. they also add impact. Do not however imply that the other side's interests are unimportant or illegitimate. Acknowledge their interests as part of the problem. If you want the other side to appreCiate your interests. begin by demonstrating that you appreCiate theirs. Do unto others as you would have them do unto you. If you want someone to listen to and understand your reasoning. give your interests and reasoning first and your conclusions or proposals later. Be concrete but flexible. Begin your negotiation with well thought out interests and options. but keep an open mind. Be hard on the problem. soft on the people. Spend your aggressive energy focusing on the problem. looking forward. not back. 1\vo negotiators. each pushing hard for their interests. often stimulate each other's creativity in developing mutually advantageous solutions. Invent Options for Mutual Gain Skill at inventing options is one of the most useful assets a negotiator can have. but it does not come naturally. Practical negotiation appears to call for practical thinking. not wild ideas. Four obstacles often inhibit conSideration of multiple options: premature judgment. searching for a single answer. the assumption of a "fixed pie". and thinking that "solving their problem is their problem". By focusing on single best answer too early or taking sIdes. you are likely to short, circuit a wiser decIsion-making process in which you select from a large number of possible answers. How do

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Selling and Negotiation Skills

you get around these obstacles to develop creative options? You need to: 1. Separate the act of inventing options from the act of judging them. 2. Broaden the options on the table rather than look for a single answer. 3. Invent ways of making their decision easy. Separate Inventing from Deciding Separate the creative act from the critical one; in other words, separate the process of thinking up possible decisions from the process of selecting among them. Invent first. decide later. A brainstorming session is the next required step. A brainstorming session with a few friends and colleagues should produce as many ideas as possible to solve the problem at hand.

Although more difficult than brainstOrming with your own side. brainstorming with people from the other side can prove extremely valuable. To protect yourself when brainstorming with the other side. distinguish the brainstorming session explicitly from a negotiating session where people state official views and speak on the record. Broaden Your Options Even with the best of intentions. participants in a brainstorming session are likely to operate on the assumption that they are really looking for the one best answer. At this stage however it is good to come up with several options thus providing room within which to negotiate.

Another way to generate multiple options is to examine your problem from the perspective of different professions and disciplines that can offer unique insight into the situation. Using Objective Criteria

Negotiate on the basis of objective criteria. An objective criteria is independent of the will of either side. Suppose for example your landlord informs you he will not renew your lease this year. You explain. calmly. as many reasons as you can think of "off the top of your head" why you believe he/she should renew your agreement. What may develop is a contest of wills. Using objective criteria, moves the contest away from individual wills and focuses on specific. decision-making criteria that are mutually agreeable.

Negotiation Strategies

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It helps produce amicable and efficient negotiations. The first

step in developing objective decision criteria is to discuss with the other party possible "fair" standards and procedures. Decide on exactly what objective criteria are mutually acceptable and establish checks to ensure that criteria to satisfy the agreed upon objective is met. Let's say that in the borrower/lender dispute. both mutually agreed upon criteria is a realistic cash flow plan indicating the ability to pay all debt and expenses when due. The values for expected receipts and expenses should be agreeable to both sides. The more standards of fairness. efficiency or sCientific merit you bring to bear on your particular problem. the more likely you are to produce a final package that is wise and fair. Other examples of objective criteria include decisions on standards such as market value. precedent. what a court would decide. equal treatment, efficiency. etc. For example. when negotiating the price of a piece of land an appraisal often serves as objective criteria from which the real estate agent and client (potential purchaser) can negotiate an acceptable price. Objective criteria should apply at least in theory to both sides. You can use the test of reciprocal application to tell whether a proposed criteria is fair and independent of either party's will. For example. if the real estate agent selling you the farm land offers you a standard form contract, you would be wise to ask if that is the same standard they would use if they were buying land or property. Remember. no matter how good you feel about the objective criteria you come up with. you must come to the table with an open mind. Frame each issue as a joint search for objective criteria. To encourage a team approach. ask the other person for their theory or rationale. Reason and be open to reason. Making threats is not enough

In addition to the content of the decision you would like them to make. you will want to consider from their point of view the consequences of following that decision. If you were they. what results would you most fear? What would you hope for? We often try influencing others by threats and warnings of what will happen if they do not deCide as we would like. Offers are usually more effective. Concentrate both on making them aware of the consequences they can expect if they do decide as you wish and on improving those consequences from their point of view. How can you make your offers more credible? What are some specific things that they might like? Would they like to be given credit for having made the final proposal? Would they like to make the announcement? What can you invent that might be attractive to them but low in cost to yourself?

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Selling and Negotiation Skills

To evaluate an option from the other side's point of view, consider how they might be criticized if they adopted it. Write out a sentence or two illustrating what the other side's most powerful critic might say about the decision you are thinking of asking for. Then write out a couple of sentences with which the other side might reply in defense. Such an exercise will help you appreciate the restraints within which the other side is negotiating. It should help you generate options that will adequately meet their interests so that they can make a decision that meets yours. A final test of an option is to write it out in the form of a "yes able proposition." 1iy to draft a proposal to which their responding with the single word "yes" would be suffiCient, realistic, and operational. When you can do so, you have reduced the risk that your immediate self-interest has blinded you to the necessity of meeting concerns of the other side. In a complex situation, creative inventing is an absolute necessity. In any negotiation it may open doors and produce a range of potential agreements satisfactory to each side. Therefore, generate many options before selecting from them. Invent first; decide later. Look for shared interests and differing interests to dovetail and seek to make their decision easy. Make their decision easy Since success for you in a negotiation depends upon the other side's making a decision you want, you should do what you can to make that decision an easy one. Rather than make thinks difficult for the other side, you want to confront them with a choice that is as painless as possible. Impressed with the merits of their own case, people usually pay too little attention to ways of advancing their case by taking care of interests on the other side. To overcome the shortsightedness that results from looking too narrowly at one's immediate self-interest, you will want to put yourself in their shoes. Without some option that appeals to them, there is likely to be no agreement at all.

Whose shoes? Are you trying to influence a single negotiator, an absent boss, or some committee or other collective decision-making body? You cannot negotiate successfully with an abstraction like "Mumbai City" or "the University" Instead of trying to persuade "the insurance company" to make a decision, it is wiser to focus your efforts on getting one insurance agent to make a recommendation. However, complex the other side's decisional process may seem, you will understand it better if you pick one person - probably the person with whom you are dealing-and see how the problem looks from his or her point of view.

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Negotiation Strategies

By focusing on one person you are not ignoring complexities. Rather, you are handling them by understanding how they impinge on the person with whom you are negotiating. You may come to appreCiate your negotiating role in a new light, and see your job, for example, as strengthening that person's hand or giving her arguments that she will need to persuade others to go along. One British ambassador described his job as "helping my opposite party get new instructions." If you place yourself firmly in the shoes of your opposite person, you will understand his problem and what kind of options might solve it. Workplace related negotiations

Depending upon the situation and time, the way the negotiations are to be conducted differs. The skills of negotiations depends and differs widely from one situation to the other. Here, we will discuss three broad categories. Types

Parties Involved

Examples

Day - to - day / 1. Different levels of 1. Negotiatiors for pay, Man age ria I management terms and working Negotiations· 2. In between colleagues conditions. 2. Description of the job 3. Trade unions and fixation of 4. Legal advisers responsibility. 3. Increasing productivity. 1. Management

Commercial Negotiations

2. 3. 4. 5. 6. 7.

Suppliers Government Customers Trade unions Legal advisors Public

Legal Negotiations 1. Government 2. Management 3. Customers

1. Striking a contract

with the customer. 2. Negotiations for the price and quality of goods to be purchased. 3. Negotiations with finanCial institutions as regarding the availability of capital. 1. Adhereing to the laws of the local and national government.

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Selling and Negotiation Skills

1. Day-to-day/Managerial Negotiations Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regard to the working relationship between the groups of employees. Usually. the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business. internally. the superior needs to allot job responsibilities. maintain a flow of information. direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization.

2. Commercial Negotiations Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationships. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the another. 3. Legal Negotiations These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.

Suppose you are in the midst of a negotiation and the counter party suddenly says: 'That's it. 1 would not like to talk any more on that." OR

"I am new in the business. you would need to consider this " OR

'That's final. take it or leave it" There could be many ways by which the opposite person could try to gain sympathy or overpower you or even sometimes put you in an uncomfortable position. The person should be very careful in handling such situations. given below are some examples of such situations and how to deal with the same.

Negotiation Strategies

Common Negotiation Tactics'1 Tactic

Description

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Response

Snow Job

Overwhelming other Ask for a summary of party with facts and key pOints. Impose a deadline. Request data, figures take time off to study data

Controlling agenda

Taking charge of what Be assertive, insist items should be that issues supportive of your goals be discussed and when included.

Comparisons

The party makes comparisons with other Companies/ competitors

Nibbling

The party gradually Keep track of all their erodes your position by concessions, having you make a cumulative effect series of concessions

Playing innocent

Other party acts Ignore plea, assume innocent, e.g., Says he professional attitude is new to business, asks for sympathy, patience. understanding

Divide and conquer

Dealer tries to test Hold frequent team other team members meetings, exchange information frequently, for their sympathy project unity, do not ~llow informal agreements.

Making a scene

Dealer trie::. to Remain calm and intimidate through refuse to be outbursts of emotion intimidated. Continue to act rationally. Let the other person vent steam. Refuse to deal with the person.

Lies

Deception by commission Withhold trust, probe or omission for details and double check facts. Request a different negotiator.

Know your competitors, differentiate yourself, know competitors weaknesses.

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Selling and Negotiation Skills

Creating stress

creates stressfill Acknowledge the tactic environment deliberately and address the to maximize discomfort, situation. encourage rapid conclUSion

Personal attack

P~ makes comments about your habits, behaviour, appearance, experience etc.

P~

Do not become defenSive or hostile, counter arguments, stress your credentials, emphasize importance of trust between you both.

Refusal to negotiate Dealer threatens or Probe for reasons, asks to end dialogue suggest alternatives

Brinkmanship

Take it approach

Extreme demands

Dealer makes unrealistically high demands that you feel pressured to give and make concessions to appear reasonable

Escalating demands

Making one concession Call tactic to attention. then add new demands Take a break. or reopen old demands Wait till the last Make the tactic explicit moment thus creating and negotiate without frustration so as to gain it. Create objective deadlines. concessions

Deliberate delay

Create obligations

or

leave Ignore it, let them know what he/they have to lose if dialogue breaks down. Look for face saver so that he can back off without losing face.

Dealers tries to compromise your position so that you feel obliged to offer concessions

Don't give in, Ask why he feels the demand is unreasonable, ask for demands to be prioritized. Know your worst case scenario. Emphasize benefits of your proposal.

Refuse to accept personal responsibility for your company's actions. Focus on present and future opportunities.

Negotiation Strategies

MISTAKES DURING NEGOTIATIONS

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Centuries together there have been debates on whether negotiation is an art or science. Whatever it might"be, but there are some common mistakes which could happen during negotiation. As a negotiator 1 don't care whether it is an art or science until and unless 1 get it right. That's what it matters in a long-term professional or a personal deal. Here we would discuss three widely and commonly committed mistakes during negotiations. 1. Negotiation is a formal event 2. Negotiation is always associated with money 3. Thinking in absolutes There are many more mistakes which could lead to the failure of negotiations, but as in the scope of this chapter we would discuss only three mistakes as mentioned above. Negotiation is a formal event Many a times you will hear people saying. "I am heading for. a negotiation".

"I have liked the house and deCided to buy it, but only negotiations are remaining". "In today's meeting we will negotiate to our best and close the

dea1." All the dialogues mentioned above clearly shows that "Negotiation is conSidered to be a formal event." Wherein the fact is that one negotiates everytime. The kind of things a sales person puts forward also forms a part of negotiating throughout the deal. Negotiation is associated to money

Photo of money with cross mark

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Selling and Negotiation Skills

Negotiation is a much larger thing and money could be just one part of the process of negotiation. One needs to very well keep in mind that having a conflict only on the price might take the situation more towards the bargaining part of the negotiation side. All the deals not necessarily would be based on money. Today everyone wants to derive the maximum value out of a deal, Maybe a big business deal or if you are buying something for your office or home. Here if the sales person pays attention only to the money part of it, then the deal/sale may be a disaster.

A person when negotiating needs to look at the holistic picture. As discussed in distributive style of negotiation wherein all the aspects involved in the negotiation should be considered. Last Sunday I along with my wife was out to buy a DVD player. After going through a lot of models, weighing the pros and cons of number of manufacturers we squared upon a make which suited our requirements. But I felt that there was some scope for price negotiations. I was wrong on this front after some conversation, I realized that the sales person and even the manager did not have the right and power to reduce the price. As I was a regular in that store, they knew that if I had walked out without buying the DVD player, the store would have been at a bigger loss. So they now offered free speaker's along wi't h the DVD player. I was more than happy with the deal, infact more content and happier than waiting if I had got a price discount. This was because the speaker's really boosted the movie experience and I was able to experience the best movie experience without spending a bomb on a home theatre. This is when I also realized that negotiation is not always about money. Sometimes the buyer or the second party in the negotiations is not that much concerned about money and many a times they are not aware of the value addition to the deal without price reduction. Then it is your duty to put the whole picture in front and negotiate to the best possible outcome. Thinking in absolutes

When it comes to negotiations the most illogical brain also tries to project and think in black and white. Basically the point is that people try to see and think only what is in front, but during negotiations the person should see beyond what is shown and interpret things behind those. The more frustrated we get with another person, the more likely we are to see them only through the nearSighted lens of our own frustration. We subconsciously filter out evidence that would round out our view of them and instead notice the actions that are consistent with whatever we suspect is wrong with them or their thinking. So they appear to get more wrong and

Negotiation Strategies

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we get more right. Of course. the more we suggest the other person is wrong. unfair. stubborn. or the like. the more likely they are to defend themselves. In other words. more I point out. hel she becomes even stiffer and try to depend themselves the most. Instead of asking ourselves. How can I convince the opposite party that I'm right. a more effective question is. which pieces of the puzzle do we both bring to this problem? Thus one should think beyond what is there in front. 2.4 SUMMARY

Before getting into any kind of negotiations. one should spend good time in a pre-negotiation stage. This will help the person to be comfortable during the actual process of negotiations. Thus. one needs to keep in mind the following points: 1. Evaluate relative strengths

2. Set the objectives 3. Keep an eye on the other side 4. Decision regarding the style and the scene 5. Setting of the Agenda 6. Pleading your case 7. Timing and Adjournments 8. Arriving at an agreement 9. Effective Implementation 10. Handling Breakdown It is also important to understand that what kind of culture the negotiator belongs to. as culture plays a very important role in the attitudinal behaviour of a person. Other than this Information. Time and Power play an important role during negotiations. In order for disputing parties to identify the ZOPA. they must first know their alternatives. and thus their "bottom line" or "walk away position." ZOPA (Zone of POSSible Agreement): ZOPA exists if there is a potential agreement that would benefit both sides more than their alternative options do. BA1NA (Best Alternative to a Negotiated Agreement): Roger Fisher and William Ury introduced the concept of "BA1NA" (Best Alternative To a Negotiated Agreement). This is the best course of action that a party can pursue if no agreement is reached. BA1NAs determine each side's bottom lines. If you have an alternative product or service available for lesser price then you would not mind walking out from the deal. Or if you are the seller and have a buyer who is ready to pay more or you are confident that you will find a buyer who will pay

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Selling and Negotiation Skills

more than the offered price that will be your bottom line. If you don't do better than that in the negotiation, you'll walk away. Some of the other points to be remembered during negotiation: • • • • • •

Focus on Interests, Not Positions Invent Options for Mutual Gain Separate Inventing from Deciding Broaden Your Options Using Objective Criteria Make their deCision easy

2.5 SELF ASSSESSMENT QUESTIONS 1. Explain in detail the various activities duri~g a prenegotiation stage. 2. What does one mean by, "Separate the people from the problem"? 3. Write a short note with an illustration which explains the concept of (a) ZOPA (b) BATNA 4. Explain in short, what does one means by Power, Information and Time in relation with negotiations. 5. Give few examples related to our day-to-day life where negotiation form a part. 6. Give few examples related to workplace negotiations .

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Selling Skills

Objectives After goint through this chapter, you will be able to understand: • Various steps in sell1ng • impP"+:mce of every step in the selling process

Structure: 3.1 Selling t(, Customf'rs 3.2 Summary 3.3 Self Assessment Q~, tions

3.1 SELLING TO CUSTOMERS The biggest challenge for a sales professional is the acquisition and retention of customers. A customer is one whose need can be satisfied by your product or service in exchange of money. Thus. the first requisite is need. Need can be known to the customer or many a times is created by the seller. Needs may be implied or explicit. For standard and conventional products. the need is mostly obvious. To illustrate - you may need a pair of formal shoes-the need here is explicit. For niche and unconventional categories, the need is many a times not known and creation of

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Selling and Negotiation Skills

awareness holds the key. Lets say a shoe company offers to etch your initials on the shoe you order. In that case. you need to be aware that such a possibility exists. To summ~rise. need is essential to obtain a customer.

The next criteria is that your product or service should satisfy that need. An IT manager of a firm needs to purchase 10 laptops. If you are in the business of mobile handsets you will obviously not be able to satisfy his need. If you can offer to sell him 10 laptops only then are you in a position to attempt to acquire his business. Sometimes needs can be altered if the product or service you have is very closely related. A person is planning to go on a family vacation and is looking for a digital camera. You are in the bUSiness of mobile handsets. You may succeed in convincing him to purchase a handset with a suffiCiently good camera. The last criteria is that the prospect should possess or be able to acquire (through a loan)sufficient money to pay for your product or service. Only then can the deal go through. If you are an automobile dealer and the prospect is unable to arrange the desired amount he may have to settle for something less - may be a two wheeler. Thus. we have identified that need; product that satisfies the need; and finances to pay for the product are essentials for a sale. Taking the above factors as given obviously. there is a competitive war to acquire a customer and often the selling skills of the sales professional becomes the determining factor as to who will get the deal. So let us check the various ingredients required to sell to customers and the different stages of this process. Opening a call It is said that a job well begun is half done. Keeping this in mind. the opening of a call can be the most important stage to create an impression. It is in these initial stages that a customer is assessing you and making mental notes which will help him evaluate whether he can impose his trust and hence. business in you and your organization. So let us see what can help us enhance this first impression'. , Grooming Everyone likes to deal with a well groomed person. Shabbiness is definitely a put off.

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Selling Skills

Here are some specifics that will take you a long way in establishing yourself right.

The clothes should be well coordinated. If you are wearing formals the shirt and trouser should combine with each other. Ensure you have at least 1 blue, grey and black trouser as these go with a wide array of shirts. All leather accessories such as belts, shoes and purses or handbags should match. For example, if you are wearing a black or grey trouser ensure your belt and shoe · is black. Similarly if the trouser is brown the leather should also be a variant of brown. Also take care that the shirt is well tucked into the trousers and not partly looking like a cape. If you are also wearing a tie ensure it is knotted properly and the top of your shirt is buttoned. After all, this is not a noose around your neck. Do not wear anything very outlandish. Although your attempt may be to create a loud impression often it may be mistaken that you are not very meticulous and hence, may not be able to take care of the basics. Always carry a handkerchief or a bunch of tissues with you. The last thing you want to be seen doing at the customers premise is wiping your brow or sneezing into your bare hands. One, who has realized the virtues of good grooming, should also make graciousness a part of his or her personality. Having embraced 'grace', one should grow and travel through the journey of life with grace. One's behavior should change with age. That is the difference between staying young at heart and acting young. For instance, coyness in a young woman is permissible but if stretched as the years roll on, it would seem like a pathetic attempt to remain 'girlish'.

Photo of Gromming

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Selling and Negotiation Skills

WhUe grooming one should very meticulously take care of the following: • Neat appearance • Styles that highlight your strengths and shield your drawbacks • Clothes • Color coordination of clothes ties bows. socks. belts. • Appropriate accessories handkerchiefs. scarves • Right make-up • Hair/hairstyle • Shoes • Perfumes/Aftershave Lotions • Briefcase/Handbags • Strive for simplicity • Jewelry must complement NOT overpower the personality of the wearer • Do not use gaudy and flashy jewellery • No chipped nail polish

In addition to visual appeal. each of the above brings about selfawareness. self-confidence and self-esteem. All these individual aspects need to be cultivated singly and collectively to create a complete. harmonious and pleaSing picture. When one knows one looks well. one naturally feels good and exudes self-confidence. Punctuality

This is one of the most imperative elements and can go a long way in making your first meeting impressionable. Plan to reach an appointment at least 15 minutes in advance after taking into account all worst case Scenarios. Be aware of the traffic conditions on your route and whether you are travelling in the same direction as peak traffic or against it. Only knowing the distance in terms of kilometers may not be sufficient.

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Selling Skills

Photo of an Watch

If you are going to this address for the first time budget an additional few minutes to ask for directions and locate the place. Also remember many organizations may have security procedures at the gate including filling an entry pass and this may consume some time. If visiting a large organization. manufacturing unit. plant. etc .. you may have to take a short walk till you reach the person you are wanting to see. If you need to visit the restroom before you meet your prospect this could also take a couple of minutes. All this needs to be planned so that you are announced a few minutes before the appointed time. In case of any small eventualities enroute. you may not be early but would still be in time. Approach

Approaching anybody. would many times feel like appearing for an examination. as many people get butterflies in their stomach. While approaching anybody one needs to be confident. Remember expert sales guys know what they are talking about. In contrast. absence of an adequate level of knowledge is likely to make the salesperson diffident at best. This could explain why some salespeople seem reluctant to -approach customers. they are worried they might be asked a question which they cannot handle. But as a salesperson. one should be able to approach the customer confidently. Approach will include the way a salesperson enters the room or walks towards the customer and the looks on the face (always smile and be polite). Mannerisms

Manners are often related to the persons character thus. one needs to be very well mannered.

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Selling and Negotiation Skills

Your posture and mannerisms speak a lot about your confidence. None of us would like to deal with an ill-mannered person. Mannerism could include anything from the one glance over things to the way he or she greets or sits or even walks into the room. In sales, manners relate to the overall code of conduct, and everybody would like to. deal with people follOwing a good code of conduct. Points to remember

• Whilst shaking hands ensure your hand is firm and not wobbly. • Be erect irrespective of whether you are seated or standing. • Avoid fidgeting and maintain eye contact as far as possible. • When you exchange business cards always do so respectfully. • Create a feeling that you are comfortable with what you are doing. • After all the person opposite you is expected to give a few lacs worth of business. Homework

It is better to have done some basic groundwork before making your opening call. This will prevent rhetOriC questions which at times, could be a small irritant to the potential customer. This is more so if the person opposite you is from the purchase, material, administration, general affairs department because in such a __case ..he would be meeting several sales arid marketing professiohaIs in the course of his job. Now-a-days, all information is aVailable online and it would be a good idea to do some research' through a search engine before' proceeding on your vi~it. You may choose to or not to , use this information on the call as the situation may demand but at least you can comfort yourself with the thought that you are prepared if the need arises. The knowledge you may want to seek could be the basic bUSiness of the prospect's organization, turnover, number and location of branches and any remarkable achievements. This knowledge could be acquired by many means either through internet, reading books, talking to peers, colleagues, friends, attending seminars, reading newspapers, through induction programs, reading' brochures, etc.

For sales person we have clasSified knowledge in to four types, I.e, (a) Products (b) Company/Organization

Selling Skills

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(c) Competition (d) Up-coming trends Many people are thoroughly impressed if they realize you have this information in place beforehand. It also creates a feeling that you are highly serious about your job. From the prospect perspective this justifies his investment of time with you. On the other hand. if you feel the customer is taking pride in speaking about his organization and its achievements please let him continue. Do not interrupt him to showcase your knowledge. It might just backfire. The actual opening

Now that you have groomed yourself well. reached before time and exchanged customary greetings ple~santly. it is time to get down to actual basics. During an opening call a structured attempt is made to gather background information. It would be a good idea to take the customer's permission to jot down notes. Many sales professionals assume that taking notes looks unintelligent. On the contrary. this practice demonstrates that you mean business. After all. what the prospect will be sharing with could be his years of business. experience and hardwork. If you are trying to convince him that you can remember all of this in a few minutes you may not break ice early. The goal of assimilating background information during an opening call is to provide a more suitable solution eventually. After all only if the basiC information is known. can one pitch in the right option. Else. we may be left with the poor option of quoting our product and price without any conviction. So lets see what all. do we seek to unearth during this call. Firstly we need to understand the clients organization. business and set up. This could be a mix of open ended and close ended questions. For example "How many branches do you have" could be a relevant close ended question. Similarly "What has been your growth in the last fiscal" could be another important piece of information. An open-ended question could be .. What is the nature of your business". As explained earlier look out for the customer reactions - if you notice that these baSic questions are sounding too rudimentary, you can flaunt your homework at this stage. However if the customer is comfortable and willing it is always better to hear it from the horse's mouth. Depending on the business model. product or the service provided, the opening could just last a minute or two or in some cases this opening could last for anything between 30 to 60 minutes depending on the complexities involved and the product or services you are handling. When you feel you have garnered

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Sefflng and Negooaoon Skms

enough of relevant information it would be prudent to briefly summarise the key elements. Just to make sure you have not heard, understood or captured anything incorrectly. Prospecting:

NQw that you have finished gathering all the basic necessary information it is time to proceed to some more pointed questioning. Here the questions are more directed keeping at the back of your mind what you have set out to achieve. If you are employed with a 5 star hotel and you are attempting to sell room nights, after having got the basic information in your opening call you may want to ask "Do you have a lot of conferences?" or "Do you have offsite meetings with your employees?" or "Are all your trainings held inhouse?" You are trying to decide in a subtle manner if this organization could classify as prospect for you in the near or distant future. Understanding the hierarchy of the organization also helps you plan your line of questioning more so in the case of multi-locations. Inspite of all the technological advancements such as video conferencing travel between the corporate/registered office and the branches is given. Similarly if the organisation includes further division of the company into regions or circles, travel within the circle by the regional head can also be taken for granted. So in such a case you will try to uncover two sets of information. Firstly, the magnitude and frequency of the conferences, seminars, trainings, workshops, incentive trips and so on which will be in large groups travelling to a single location. Secondly, the routine travel which may be one or two individuals at any location but almost as a continuous routine. Meeting all stakeholders

The overall objective is that at the end of your pursuits your solution should seem the most logical one according to the customer. It is important to point here that deCisions often are not made by a single individual in an organization even if he is empowered to do so. Hence, it would be wise to meet as many stakeholders as possible. It goes without saying that necessary permissions should be sought to avoid stepping on any toes. Users are important influencers and hence it is prudent to meet and keep them updated. The product you are canvassing could be used by several users - at times a whole department or sometimes even the entire organization. Once this set of people had been visited, it eliminates· the need for unnecessary assumptions as basic and undisputable facts can be used. Also later at the time of decisionmaking you are one up as your efforts would be visible and would also have helped you pitch a more apt solution.

Selling Skills

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Another important element in any purchase is the cost. Hence, if possible meet the finance department to gauge what is on their mind in terms of investment which could include capital as well as revenue expenditures. No point suggesting a solution eventually which is five times the allocated budget. A word of caution though. Finance professionals may want to play their cards close to their chest and hence direct questioning may not always get you specific answers. For example you are with the CFO and you ask " How much money have you set aside for this project?" The response you may evoke is "Give us your proposal and we will evaluate." Hence very subtle-questions might be needed to gauge the situation. You could say "We do have a full blown version which would take care of your reqUirement for many years to come but if I have some idea about what you are willing to spend I could offer the optimum solution."

Depending on the business you are in, the HR department may or may not be an important stakeholder. If you are, lets say in an organization that promotes binders and shredders this department may not require your time. However if you are in the business of training, consultancy or anything remotely connected to 'people' be sure you have whetted the HRD needs. It is also a good idea to look around you when you are in the customer premises. Bulletin boards and internal newsletters could give you a lot of handy knowhow. Many a times what we assume is confidential is in fact, information the organization is transparently willing to share. This could be in terms of their goals, financials or poliCies.

Need Analysis Next we get to the core of the process of selling to customers. This is the stage where we have to map the exact nature of requirement. Care should be given to the finest detail and the aim is to offer the most optimum solution to the 'Customer such that his need is completely satisfied. You must also keep in mind that you may have a large range of products to offer and although it is the customer who eventually decides you hold the moral responsibility of ensuring the right solution is offered and chosen. This is also of utmost importance for repeat and referral business without which a brand can seldom build its credibility. If you are working for a logistics company and you are trying to source the business of couriering the documents of a customer, here is the information you will need to unearth during the need analysis.

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Selling and Negotiation Skills

• What is the monthly quantity of the consignments? • Which are the locations between which these documents need to be exchanged? • What is the time period that the customer sees as reasonable for these to reach their destination? • Is the quantity of consignments more or less uniform throughout the month or are there prominent peaks? • Are they mostly one or two documents in an envelope or are there heavy consignment of documents also? • How are they currently managing? • Are they facing any problems with the current arrangement?

• What is their monthly billing? • At what time would they prefer a pick up? • After this need analysis you would be able to determine whether your own network would be able to cater to this requirement-how many pickup boys would be required-at what time-any specific period such as month ends. billing cycle dates when you would have to provide more manpower. would you be able to fulfil the time of delivery. at a reasonable cost and so. Just for a moment imagine that you have ignored this part of the sales cycle. All you would have to offer the customer is a matrix of locations with a per kg price tag. Which at best would be filed amongst a hundred files. And at worst may find its way to the nearest trash can as soon as you are out of Sight. Sometimes whilst having that tasty bhelpuri at the streetside chaatwala you may be surprised to see the paper you are eating in has your proposal printed on it. Lets take another example from an altogether different industry. Maybe you are a relationship manager in a bank. You are not selling a physical product here but the objective is to increase the cash inflow to your bank. You are meeting an important client and you want to offer some of your investment options. After acqUiring all the baSic information the following may be useful if determined during the need analysis stage. • • • • • •

What is the amount he could spare as an investment? What time period is he looking at? What is the risk taking appetite? What kind of returns attract him? What does his current portfolio broadly constitute? Does he want to invest at one go or in phases?

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• Does he anticipate that at any future stage he might have to break this investment? • Is he looking for any tax benefits? • Is he looking at an iilsurance linked investment? At the end of this, you can consider the amount mentioned by him and simulate the returns over the agreed time frame. This exercise will throw up actual figures rather than theoretical wish lists.

Again consider the case without the need analysis stage. You would just be offering a wide range of options which might end up confusing the customer. This could either lead to a delay of decision (and hence your sale) or he might end up making an impulsive decision with the risk of a later realization that it was not the most prudent choice. Either ways you would not have made a very fine impression and the chances are high he would place his other eggs in a different basket the next time around. This stage is sometimes very time consuming especially if the number of incumbents is large. However, more often than not it forms the nucleus of the sales cycle to a customer and has no substitute to it. Also if properly done it leaves you one up on your nearest competitor. Proposing Now that you have categorically analysed the customer need it may be the ripe time to pitch your solution. You may be in a position to have numerous options which are near fits but like mentioned earlier it is your moral and professional responsibility to ascertain that the right choice is made. Mter all this is your day-to-day business-your source of livelihood. Whereas for the cu~tomer it may be a one time decision or something he Is dwelling on after a long gap. Hence, it is only fair to assume that you are t!:-.e expert and therefore the onus of the right decision being mao..; lies with you.

While pitching your solution do keep the following things in mind: You have the basic organizational information. Will your solution fit in? It should not violate any of the other objectives of the organization. For example if the customer has a green procurement poliCy your product should comply. Whilst prospecting you have met the various stakeholders. Will your solution be an optimum option to all of them. It should not put

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one department to a lot of inconvenience because the next time around they will firmly put their foot down if given the option. Again to illustrate if you are developing software it should be friendly to all users and not just to the IT department. The IT personnel will have far greater knowledge on software and would be able to navigate a package better. However. that is not why softwares are designed.

You have also done a detailed need analysis: With all your heart offer that solution which actually fits best. This is the stage when for a few minutes put yourself in the customers shoes and think from his perspective. Cover all angles - product reliability. delivery. dimensions. life. service deliverables. quality. and so on. You have also attempted to find out what is the investment the customer is willing to make. Your offer should not be beyond this figure by multiple times. It is certainly possible to upgrade a customer with a premium product where the hike in his investment can be justified through some benefits. But there is always an upper cap to his increasing his investment. When it comes to investment consider the initial as well as recurring cost. No point shocking a customer with inflated bills. post his purchase. If he is caught unawares it would obviously impact future business. . A customer never buys the features of the prodUct. It is always the benefits that the customer is interested in. The customer will think that "your product or service has all the best features available in the market. but does it meet my requirements." Are benefits derived from features that are part of the consumable product? For instance. a plasma television includes such features and benefits as: Feature Screen size

Screen resolution Surround sound Remote control

Functional Benefit offers greater detail and allows for more distant viewing viewing provides clear. more realistic picture

immerses all senses in the viewing experience allows for greater comfort while viewing

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Few more examples of features linked to benefits are as follows; Feature Link Real Teak wood table and this indicates From the House of which means XYZ

Contemporary oval shape and design

indicates

Scratch-proof surface

which means

Formal. long sleeved means it is cotton salwar kameez ABC company Brand and the benefit is 100% cotton

means

Fashionable style collar

means you have

Benefit lasting for generations full confidence that the piece has been quality tested impeccable taste and makes a style statement to your dining room the piece will look as good as new. even after 5 years wearable to work and for evening wear full confidence that the shirt has been tested for durability you will be comfortable as it absorbs sweat wide range to and color options choose from

These features are called functional because they result in a benefit the user directly associates with the consumable products. For marketers, functional benefits are often the result of materials. designs and production decisions. How the product is built can lead to benefits such as effectiveness, durability. speed. ease-of-use. and cost savings to name just a few. Objection handling:

Many a times after the sales person has proposed a solution the customer could raise objection on certain things. It could be: (1) Price

(2) Product (3) Mter sales seIVice (4) The company/organization (5) Need (e.g; "I do not require such a high end product") (6) Resistance to change (7) Pyschological (hidden which he or she is not able to express) Negotiation

Now that you have offered your solution do not expect it to be the end of the sales cycle. Mter all if every customer purchased on the printed price or MRP why would an organization require a dynamic

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sales. force. Also if the person you are meeting is from a specialized purchase department he ·is appraised on the quality of his buying decisions.

It is often mistaken that negotiation is only price related. This stage could involve delivery, complimentary accessories, upgrades, recurring expenditures, warranty and many other related parameters.

Since negotiation has already been covered at length in different chapters of this book we will not dwell on it further here. However do remember where it is placed in the process of selling to a customer. A common mistake is to offer product, price and then start negotiating in the initial stages itself. Closure and Commitment

The process of negotiation is supposedly over when the prospective buyer and the seller have agreed mutually on all the terms and conditions including price. Now is the time to close the deal. In the fiercely competitive market that we have today, it is only logical that a host of competitors will be breathing down the customer's neck once they realize that the business may be closed in your favour shortly. Hence, it is not prudent to waste too much time once the negotiation stage is done with. This is the point of time we must close the deal by obtaining the commitment of the customer. Depending on the line of business you are in you might require an agreement. a purchase order, a SLA or simply a cheque with your organization name etched against Pay .... Or even in some kind of retail sales or over the counter sales the commitment and the closure may happen at the same time. In case of large sales or sale of financial product sales you must reach an agreement with the customer as to when you will receive this formal go ahead. Especially in case of financial products (mutual funds, insurance. etc.) or in case of corporate sales one should always remember that there is many a times a slip between the cup and the lip. This slip could be in the form of some referral or influence. diversion of the customers budget or simply a rethink. And from experience I can tell you that after such a lot of structured hard work it is one of the most heartburning feelings to lose a deal due to a last minute whimsical pendulum like behaviour of the prospect. Hence. it is prudent to shirk all traces of complacency and obtain the customer commitment at the first given opportunity. Which means you have closed the order and all further rooms for discussion.

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Points to Remember:

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ABC

ABC is a common term which stands for 'Always Be Closing', which is both good and bad advice. ABC is good advice when it is used to keep in mi.nd that you are always aiming towards a close. It is bad when you just use it as a means of battering the customer to death with a barrage of unsubtle closing techniques. Selling can be a lot like fly fishing. If you tug hard on the line, it will snap and the fish will get away. The best method i~ a gentle

coaxing that gradually brings the fish in to shore - although sometimes when they are spooked you have to let them out again and calm .them down further away. Silence after When you have used a closing technique, be quiet afterwards and let them respond. If you just keep talking, then you may miss what they have to say - like 'yes' for example.

Silence also builds tension and will encourage them to respond - and a response to a well-put closing question will hopefully be positive. Watch emotions Watch out for the other person not only in what they say but also in the emotions behind the words.

Never try closing when they are in a negative emotional state - you will only cause further objection and possibly anger that means they will never buy from you again. Over-closing It is not unknown for sales people to talk their customers into closure then carry right on and talk them out again. You can overdo closing and it reqUires a close sensitivity to avoid this trap. It is often the fear of the other person saying 'no' that often

causes a sales person to keep on talking. You must have faith and also accept that when they say 'no' it is no real comment about you. If you take rejection personally then you are probably in the wrong job.

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Order

As mentioned earlier in case of institutional or corporate sales closure and order are two different and prominent steps. Now that you have verbally obtained the necessary commitment you may assume its time to put your feet up. However that is certainly not the case. Most organizations have a well defined procedure to secure a purchase or service contract and depending on the number of people and amount of money involved this could be a long drawn process. This business makes sense only if you receive the formal contract which will enable you to complete execution - collect the payment and bank the cheque.

In case of larger organizations, there could be many people involved in the buying process, to mention a few are as follows: • lrifluencers: These are the people who will influence the

decision of purchase. This could be the supervisor of the purchaser, people who are going to use the product or service, or the technical person. • Users: These are the people who will use the product or service purchased. It is here that the need has been felt. • Decision-makers: These are the people who will take the final decision about the purchase. The decision-maker is very important as he is the person that a seller should approach with a proposal. For proprietary/partnership and small private limited firms, the final authority is obviously the owner and except for very miniscule amounts any agreement or order would require his approval. This process of order release takes comparatively lesser time as long as the owner is in the same city. For larger private limited firms, multinationals, the purchase process is documented and would normally reqUire more than one authorization beyond a certain amount. In case the requisite approvals have not been taken proactively by the purchase manager, the formal release could take a little longer. For PSUs, nationalized banks, public limited companies, the organization size is larger and generically the process takes much longer especially if you are not in touch with every individual in the chain. Many a file have been delayed, lost and buried in oblivion in basements and do not see the light of the day ever again. Educational institutes are either run by private trusts where the board or trustees need to meet up to take purchase decisions among other matters. The meeting dates need to be pre-decided

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accommodating the busy schedules of the trustees and hence, this may also delay the decision. For aided institutes, they have to wait for the funds to arrive and sometimes this wait is longer than all the other stages of the selling to customer cycle.

Similarly state and central government departments are also dependent on the allocation of funds and budgets and the sales takes longer here unless we are very close to the period when the budgets are about to lapse. In which case the purchase accelerator is hit very hard. In some transnational companies, approvals from their overseas offices may have to be sought not only in terms of expenditure but also keeping in mind standardization and compatibility of equipment and although most such approvals are now sought electronically it does get lengthy at times since there is no physical interaction with the approver and you may not know what is playing on his mind. In case where the sale reqUires certain import or export of items elaborate documentation leads to a time lag before which you can see the fruits of your pursuits. As we can see establishing a need, offering your solution, convincing your customer and acquiring his written consent can sO{Iletimes be a long chain and sales professionals tend to get impatient if not frustrated.

Although aggression is a hallmark of a individual in this field, this trait if' useful in the build up to the order. The flip side is that patience is an equally important attribute and many a times an impatient person may give up, set the prospect aside and eventually forget about him. Whereas someone with a little more perseverance will continue is follow up till he sees the business in his hand. Once you have acquired the formal order you need to ensure timely execution and live up to each commitment. If it is a product, then delivery and installation if required would complete the execution. In case of a project the completion of the entire project needs to be done. And in case of a service agreement it is a continuous process which may have a time period when it is subject to renewal. You need to also ensure timely submissions of documents including invoices to facilitate an early payment. And keep an eagle eye for any parallel or future business opportunities as well as referrals. This brings us to the conclusion of the chapter on SeUing to Customers.

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3.2 SUMMARY

A company might have the best of the products and services, but unless these are not sold it does not make any business sense, and for this one requires sales people who possess selling skills - few pOints to remember while selling are as follows: I. Identifying the need 2. Opening

a call

3. Grooming

4. Punctuality 5. Approach 6. Mannerisms 7. Homework 8. Prospecting 9. Meeting stakeholders 10. Proposing II. Objection handling 12. Closure of commitment 13. Order 3.3 SELF ASSESSMENT QUESTIONS

1. Explain in detail why need analysis is important in the whole selling cycle. 2. What is the importance of grooming during sales? 3. Explain with examples the importance of appropriately handling objections. 4. In case of larger organization who would be the various stakeholders as far as a sales person is concerned. Explain.

Selling to Superiors Objectives Mter goint through this chapter, you will be able to understand: • How to do a detailed swar analysis for self. • Your strengths & your weakness • Concept of selling to superior (practical approach)

Structure: 4.1 How to Use Your Strength to Sell to Superiors?

4.2 How to Work on Your Weakness to Sell to Superiors 4.3 How to Sell to Your Boss? 4.4 Summary 4.5 Self Assessment Questions

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We have seen in the previous chapter how to sell to a customer. Now we proceed to what in my opinion is a more important aspect-Selling to your superiors. It is said that each individual irrespective of the profession he is in has to "sell" throughout his life. The earliest example in ones life is that of an infant who is hungry. Here he uses his tears to draw his mothers attention. Similarly, I am sure each one of you would have used your "selling skills" to convince your parents to buy you that ice lolly, or the branded T shirt or lately may be even the trendy handset.

However one misnomer is that selling to superiors means convincing them that you possess certain skills which you actually don't. Quite the contrary. Such an approach works only in very shortterm situations - lets say in an interview where you have probably just 30 minutes to sell yourself. In reality, selling to superiors involves showcasing your abilities and efforts and packaging it in a much more presentable manner. For this to happen, firstly one must have an inside out knowledge of what our capabilities are. It is always wise to introspect what is our true potential and what are our areas of development. It is also prudent to leave your ego aside and do this in the most true and honest manner because this analysis is only meant for you and the closer it is to reality the easier it gets for you to consolidate your strong points and work on the weaker areas. One of the most common techniques used for this analysis is SWOT. SWOT

Every person should be an aware of his/her strengths and weakness. This will not only help in a self analysis but will also give a fair idea about the potential threats and opportunities. Let us first understand the SWOT (strength weakness opportunity and threat) analysis. SWOT Analysis is a powerful technique for identifying Strengths and Weaknesses, and for examining the Opportunities and Threats you face. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities. What makes SWOT particularly powerful is that with a little thought, it can help you uncover opportunities that you are well placed to take advantage of. And by understanding your weaknesses,

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you can manage and eliminate threats that would otherwise catch you unawares. Theory for SWOT

Strengths: • What advantages (for example, Core competencies, experience, skills, education or connections) do you have that others don't have? What do you do better than anyone else? • What personal resources do you have access to? In other words, what are your personal competitive advantages amongst peers. • What do other people see as your strengths? • What is your financial status (risk tolerance)? • How well are you connected, I.e., Networks: personal and professional affiliations through which to make connections, contacts and garner support? ConSider this from your own perspective, and from the point of view of the people around you. And don't be modest, be as objective as you can. If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths! In looking at your strengths, think about them in relation to the people around you - for example, if you're a great mathematician and the people around you are great at maths, then this is not likely to be a strength in your current role, it is likely to be a necessity.

Weaknesses: • What could you improve? • What should you avoid? • What things are the people around you likely to see as weaknesses? • What are the gaps in mission critical skills? • Are there any gaps in competitive strengths? If yes, what are those? • Are you vulnerable to: cultural, attitudinal, behavioral aspects? • Is location or the geography a hindrance or a weakness?

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Again. consider this from a personal and external basis: Do other people perceive weaknesses that you do not see? Do co-workers consistently out-perform you in key areas? It is best to be realistic now and face any unpleasant truths as soon as possible. Opportunities:

A useful approach to looking at opportunities is also to look at your strengths and ask yourself whether these open up any opportunities. • Where are the good opportunities facing you? • What are the interesting trends you are aware of? Useful opportunities can come from such things as: • Changes in technology. markets and your company on both a broad and narrow scale; • Changes in government policy related to your field; • Changes in social patterns. population profiles. lifestyle changes. etc. • Local Events • Timely developments and trends (personal. company. industry) • Support system(s): peers. family. personal, others? • Tactical developments. information, research and findings? Alternatively. look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them. Threats:

• • • • • • • •

What obstacles do you face? What are the people around you doing? Is your job (or the demand for the things you do) changing? Is changing technology threatening your position? Could any of your weaknesses seriously threaten you? Effect of corporate culture/politics? Personal limitations and obstacles (I.e.. geography, etc.) Sustaining/cultivating skills through ongoing practice/ education.

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Ii: I

• Anticipated/possible/likely changes to business landscape? • Insurmountable competition (peers, etc.)? .

Strength

Weaknesses

Opportunities

Threats

Canying out this analysis will often be illuminating - both in terms of pointing out what needs to be done, and in putting problems into perspective. A SWOT matrix is a framework for analyzing your strengths and weaknesses, and the opportunities and threats you face. This helps you to focus on your strengths, minimize weaknesses, and take the greatest possible advantage of opportunities available. Personal SWOT Analysis

After a better understanding of SWOT analysis, let us first do a SWOT analysis for self. [*would suggest to do a detail SWOT before proceeding ahead) Consider the overall picture of where you think you are now, and where you want to be. What personal skills, experience and behaviours will help you (list under Strengths) Which will require some work (List under Weaknesses)?

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What external factors (things out of your direct control) may help you (Opportunities) or hinder you (1llreats)? You can now consider how you can make the most of your strengths and opportunities. and try to develop your weaknesses and minimise your threats. This will form a key part of your Personal Development Plan.

4.1 HOW TO USE YOUR STRENGTHS TO SELL TO SUPERIORS Now that we have studied the technique of SWOT let us return to our original track which is selling to superiors. If I were to explain how to build your career well in one very simple statement it would be - Consolidate your strengths and eliminate your weaknesses. Obviously easkr sai.d than done. But we must consistently and progressively work in that direction. Also keep in mind that barring the odd exception your superiors are always miles ahead of you in terms of experience and expertise. Hence. an honest and sincere approach pays higher dividends as compared to a superfiCial effort which will more often than not. be seen through. Let us say you have identified as one of your strengths. knowledge of the product you are attempting to sell. You have realized that your product knowledge is far superior to that of your peers. Consolidate and use this strength to your advantage. Keep on updating yourself through reading or otherwise of any latest changes in the features make more visits or meetings where you can actually talk about your products and convert these features into advantages and benefits for your customers. Similarly if you feel relationships are part of your strength areas and you can break ice early. attempt to meet more relevant people since you can create a better impression and this may eventually translate into more business. If you realise you are savvy at documentation and minuting. probably send across the minutes of your important discussions penned down well. It is sure to impress those who read it. If you ability to grasp and understand is high, do lot of reading and surfing so that you can keep yourself abreast of the latest advancements and this can be used judiciously while you are with your potential customers.

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Many professionals make the mistake of being complacent about their strengths. There is always the danger that a feeling may creep in along the lines of .. This is what I am good at. So let me ignore it and concentrate on the other areas." Remember even a sharp knife may rust if not used regularly and to keep its edge in shape a little sharpening is always useful.

Also if you keep consolidating your strong areas very shortly others too will realize what you have learnt. That these are your strengths. And constant demonstration (relevantly) will ensure that your superiors get to know of this quickly. As stated earlier this is supposedly a bunch of men much wiser than you. If you choose to ignore this element. your strengths may be a little secret you have kept with you. And however much you blow your own trumpet about these. the proof of the pudding is always in the eating.

Also in the process you are continuously sharpening your skills which will help you be more successful in what you are doing currently and also go a long way in making you a professional with rock solid strengths which you can use throughout your career.

4.2 HOW TO WORK ON YOUR WEAKNESSES TO SELL TO SUPERIORS? Obviously if your superiors can see your strengths. your weaknesses will be more than visible to them. In fact. the entire human race has an inherent capability to spot weaknesses (amongst others) much more than their ability to spot strengths. In the case of managers this characteristic multiplies exponentially. So moving around in your organization with known chinks in your armour is not an act of wisdom if you are trying to climb the steps of your career ladder irrespective of whether you are in a corporate scenario or not. You must (and this is your only option) work on these developmental areas and show significant signs of progress rapidly. Again this is easier said than done. Mter all who would not want to eliminate his weaknesses if possible. The idea is to keep chiseling at these chinks to minimize their stature till they are no more considered as weaknesses capable of putting spokes in-your career wheels. Let us take a few examples. Let us say you have a weak memory. You constantly keep forgetting important tasks that need to be done.

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Or maybe important dates. You have lost many a teenaged friend whose birthday you completely forgot or possibly recalled three days later. And your bills constantly have a late fee rider since you make your payments a week later than the payment due date. To minimize this weakness you need to..:strengthen your memory. Well this is certainly not an ad for memory pills. What we need to do is conjure a mechanism to counter this weakness. So you need to note down your important tasks and dates. Again do it in the manner you are most comfortable with. You can have an excel spreadsheet and make it a point to refer to it each morning as you start your day. Or you can choose to jot it down in a planner you always carry with you. Or maybe even in a small pocket pad which you keep closest to your heart. Similarly. if punctUality is your area of development (we have already read about its importance earlier) make it a point to wake up half an earlier so that you start your day at least fifteen minutes early - assuming you were fifteen minutes late before. This new you is sure to make a few heads turn to take notice and will get you some brownie pOints. If lets say you are selling laptops and you have identified product knowledge as your weak edge. burn a little midnight oil. Read brochures. catalogues or any on line material that you may access to and learn about all the nuances of your product. Also. update yourself on Similar competitive products. Make notes and comparatives. try and have a hands on to understand all that you have read and soon you may notice with this inclination product may no more be the demon you had feared. If language is something you are not comfortable with. you can easily opt for a public speaking course. Again reading even if it is very basic in nature such as newspapers or books can help enhance your vocabulary. If you do not have a fancy for computers and feel that it is a hindrance. in addition to any course you may wish to join it would be a good idea to have a self exploration with the help key. You will be surprised to notice how much you can pick up.

The baSic idea is that whatever be your weakness. even if one cannot intrinSically wipe it away. with a little bit of effort and the right initiative it can be toned down to not make a visible impact in your professional endeavors. Just keep in mind we are not in any way trying to mask our defiCiencies - we are making a Sincere attempt to minimize them.

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And nothing can create a better impression on your superior other than him to learn that you are vigorously involved in self development. And believe me. his helping hand will not be far away to partner your efforts.

4.3 HOW TO SELL TO YOUR BOSS Selling your to boss is critical to your success. If you can not get your boss's approval when you need it. you are not going to go very far in your career. I was reading a blog run by Michael Hyatt who has some real time experiences to share who has himself been a president of a company and heard number of proposals. The follOwing tips are based on his 27 years of rich experience.

Photo of Superior Boss 1. Meet your boss's needs. This is the fir.:.l and most important key to getting to "yes." Everything else in th is article is a footnote to this point.

Face it: no one cares about your needs. Okay. may be I'm ,I\'erstating it. A few people care. But. certainly everyone is more illterested in having their needs met than yours. That's just reality. The sooner you accept it, the faster you will get to "yes." For a salesperson to be effective. he must show the prospect how his product will solve the prospect's problem or meet the prospect's need. The same is true for the manager seeking approval on an important project. The boss doesn't care how this will make your life easier. (Read that sentence again. Write it on a note card if necessary

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and memorize it.) He's concerned about his need::> and the needs of the company. So you must frame your proposal in these terms.

Most top managers have two basic needs: they want to grow their company and they want to increase their profitability. Whether they are a private company or a public one, this is the ticket to their personal success. If your proposal promises to do either, you've got their ear. If not, you're likely dead before you start. Middle managers have similar needs. However, in addition, they have a need to improve their image with their supervisor(s). They also have a need to meet their uiut's goals. So before you schedule an appointment to pitch your proposal, you must answer the question, "How is my proposal going to help my boss achieve his goals?" If you can't answer that question, you're not ready to make the pitch. For example, recently, one of my team member wanted to add two graphic designers to his unit. With salary, benefits, and other overheads, this was going to cost about $100,000 a year. However, rather than start with this, he said, "Boss, great news. I think I figured out a way to save the company $100,000 a year." For me, that translated Into additional profit, so I was immediately interested. He then explained how we were already spending about $200,000 a year in outsourcing cover designs for a particular category of books. He convinced me that we could cut our expenses in half by bringing this function inside. He made it a "no-brainer" because he showed me how his proposal met my needs.

2. Pick your battles. I have a basic rule when it comes to pitching my boss: I don't take a swing unless I am confident I will hit the ball. I would encourage you to do the same. Don't make the pitch unless you intend to make the sale. Your credibility as a manager is at stake-with your boss, your peers, and your direct reports. For example, I used to work for a guy who couldn't sell his boss (now my boss) anything. This was unfortunate for me. because my proposals often exceeded his approval limit. He would then have to take my proposal to his boss for approval. Initially. he would enthusiastically approve my proposal and promise to get his boss' approval. However. almost always. he would come back with his tail between his legs. mumbling about how unreasonable his boss was. Eventually. he started procrastinating going to his boss. He knew he would get rebuffed and did not want to appear powerless to me. As a result. my proposals would languish on his desk. waiting for an approval that would never come.

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Mter about six months of this nonsense. his boss sensed my frustration. He then asked me to start reporting directly to him. Frankly. based on my then-boss's comments about him, I dreaded this. He viewed him as an unreasonable, capricious tyrant. However, I found him to be exactly the opposite. He was a great listener and sincerely wanted to help me. He made quick decisions and never impeded my progress.

I've now been working with him for three years. I feel the same way about him now, that I felt at the beginning. My ability to get quick decisions enhances my credibility, both with him and my direct reports. They know they can count on me to get the approvals they need to accomplish their goals-and mine-in a timely manner. Again, the key is here is to pick your battles and prepare thoroughly. Eventually, you will develop a reputation for getting things done. This reputation will actually make it possible to pre-sell your boss before you even say one word. He'll be thinking. If John is recommending this, it is worth a serious consideration. I can be confident he has thought it through and asked the tough questions.

3. Do your homework. I've already mentioned this in passing. but it is worth repeating here and amplifying. In my experience, this is the number one reason why people do not get to "yes." They simply haven't thought the proposal through. As a result. it is full of holes. Each of these provides an easy way out for the boss and a quick "no" for you. A couple of years ago. I developed a Recommendation Briefing Fonn (a.k.a. "RBF") as a means of summarizing my proposal and making sure I covered the key pOints - briefly and in order. The form contains five major headings. Here's how to use them:

• Recommendation: Start with the conclusion. It is so much easier for me - and probably your hG3S - to concentrate if he knows what you want up front. This keeps me from constantly being distracted who thoughts like. I wonder where he is going with this? What does he want? Get to the pOint! etc. If you start with the conclusion, your boss can relax and listen to the rest of your proposal. Also. be sure to state precisely what you are recommending. Don't beat around the bush. Be brief - two sentences at the most. And don't include more than one recommendation per form. Keep it simple . • Background: Usually, your boss will need a little context for your recommendation. Give him the background. But again. be brief. Only provide the background necessary for

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him to make an intelligent decision. A paragraph should be sufficient. Stay focused and keep moving. • Rationale: List all the reasons why your boss should accept your recommendation and approve your proposal. Shoot for five to seven reasons. (If you come up with more. select the most important ones and delete the others. You want to convince him, not bore him!) In addition to including why he should approve your recommendation, also articulate the consequences of not approving it. Once you have your list. prioritize it. Start with your most important reason and then work down the list. listing the next most important next. etc. • Timetable: Indicate when you will implement the proposal if approved. If the rollout will be staged (I.e .. done in segments). briefly outline the key milestones. • Financial Impact: State this negatively (i.e .. the cost or investment) and positively (Le., the that is, additional sales. return on investment. etc.). Make it clear, and shoot straight. Don't downplay the cost or hype the benefits. You want to develop a reputation of being conservative. but not overly so. Regardless, you always want to under-promise and overdeliver. Keep in mind that the entire RBF Should be no more than two pages long. Shorter the better. I have seen very effective RBFs that are only a page long. If' you have more information - and I often do bring it along as backup, in order to answer specific questions. Note: make sure all the documents you intend to distribute are neat and profeSSional. 4. "Bullet proof" your proposal. This is where the battle is won or lost. Unfortunately, it's a step that most people skip - to their own detriment. Spending 30 minutes working on this is the best investment you could make. First, think of every question your boss could possibly ask. To prime the pump. use the "who. what. why, when. where. and how" helpers. Make sure each key question is answered in your RBF. Don't risk getting a "no" because you haven't carefully thought through the proposal.

Next. on a separate sheet of paper. list every objection to your recommendation you can think of. Play devil's advocate. However, do not try to answer the objection yet. First. get them on paper. Once you've done that. go back and write out talking pOints (i.e., bullets) for overcoming each objection. I type this up on a separate document

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Selling to Superiors

that I take to the meeting with my boss. I have it in my folder for reference.

5. Make the pitch. Schedule a time to make the pitch. Pick a time when your boss is likely to be the most receptive. Has it been a bad month? Don't schedule an appointment right after he's likely to get the news. Is he more alert in the morning or the afternoon? Use some common sense and try to schedule the meeting when you have the best chance of success. "

Now go in and make the pitch. I usually just slide the RBF across the table and jump in. I literally walk through the document one section at a time. Here are a few pOinters to keep in mind while making your presentation. • Maintai~ eye cuntact. Yes, I know. I said that, I walk through

the document. However, I do not read it. The document is intended to be "talking points" list rather than a narrative. You should be familiar enough with your recommendation so that you can stay focused on your boss - and his reactions - rather than the RBF. • Stay alert to the signals. Does your boss appear bored? Pick up the pace. Does he have a question? Stop talking and let him ask. (Hint: If your boss engages you in a discussion, this is a good thingl It means he is interested.) Is he distracted? Let him get refocused or reschedule the appointment. The last thing you want to do is plow ahead, oblivious to the reactions of the very person you're trying to persuade. • Re-state the recommendation. When you get to the end of your presentation, restate your recommendation and ask for a decision. Then - and this is critical - stop talking. Give your boss a chance to say, "yes." This may make you feel uncomfortable, but, trust me, you will decrease your chances of success if you keep talking. Sometimes, your boss just needs to sit there and absorb your pitch. Sometimes, he may sit quietly to see what other information you may volunteer. Regardless, resist the temptation to fill the vacuum with words. • Know when you are done. Once your boss approves your recommendation, it's once again time to shut up. My Dad taught me this early in my career, and it has served me well ever since. I can not tell you how many times I have seen a person in authority give his approval and then watch the presenter proceed to unsell the sale. If pOSSible, when the

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boss says. "yes." thank him for his decision. collect your belongings and leave the room. If you can't leave. then at least move to the next agenda item or change the subject. 6. Accept responsibility for the outcome. When I was further down the food chain. I used to hear my peers constantly complain about how unreasonable their boss was or how bureaucratic the company was. Blah. blah. blah. They had a thousand and one excuses for why they did not "make the sale." Few of them were willing to accept the fact that their proposal just was not that compelling. Their presentation skills sucked. and it was easier for them to blame someone else rather than accept responsibility for the outcome. As a result. they missed the opportunity to improve their skills. If your boss says. "no." go back to your desk and engage in a little post mortem analysis. What went wrong? What could have been stronger? Where were you unprepared? How can you do this better next time? Accept full responsibility for the outcome. and you will gradually get better at this critical skill. Not only will you become better at getting to "yes." you will also find yourself moving along faster in your career.

4.4 SUMMARY Selling to superiors basically means showcasing your good work and qualities to the superiors. For this. one must do a distributed SWOT for themselves. This will give a clear picture about one's strengths and weaknesses and also what could be ..the possible opportunities that arise because of the strengths and the various threats because of the weaknesses. Once the person understands this. he or she should know: 1. How to use your strengths to sell to superiors? 2. How to work on weaknesses to sell to superiors?

4.5 SELF ASSESSMENT QUESTIONS 1. Do a detailed SWOT analysis for yourself and also map the various strengths with the opportunities and the weakness to the potential threats. 2. Make a plan for yourself as to how will you use your strengths to sell to your superiors. 3. Make a plan for yourself as to how will you work on your weaknesses to sell to your superiors.

Chapter

5 Selling to Peer Groups, Teammates and Subordinates Objectives After goint through this chapter you will be able to understand: • Maslows hierachy of needs • M;l pping Maslows theory to sell to peer groups teammates and sub ordinates • How to sell to peer groups, teammates and sub ordinates

Structure: 5.1 Selling to Peer Groups, Teammates and Subordinates 5.2 Summary 5.3 Self Assessment Questions

5.1 SELLING TO PEER GROUPS, TEAMMATES AND SUBORDINATES So far we have seen how to sell to customers and superiors. In both these cases, the individualistic skills are put to test. However, as you may have already realised by now we cannot work as islands.

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Often we have to put our heads together as a group to achieve success. Hence, it is highly imperative that we also learn how to work as a bunched set rather than demonstrate isolated instances of brilliance. It might be a good idea to briefly visit Maslow's theory at this point just to understand how various individuals are motivated by different aspects.

Theory of Motivation

There are two ways of looking at a sale, one either a sales person sells his or her products/services, or a sales person motivates the buyer to buy. There is a high probability that due to few interactions in the past with all (peer's, teammates or subordinates) of them we will have some or the other background information about them. Thus this information can act as a facilitator'to understand what wiU motivate them to buy your idea/concept or even you as a person. Thus before we understand selling to them let us just touch upon the few basics of motivation theory. Here. we will limit ourselves just to the superficial understanding of the two models, i.e; (1) Maslow's Hierarchy of Needs (2) Herzberg's Theory of Motivation (1) Maslow's Hierarchy of Needs

Http://www.learnmanagement2.com

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Abraham Maslow's hierarchy of needs theory sets out to explain what motivated individuals in life to achieve. He set out his answer in a form of a hierarchy. All human need can be claSSified into five hierarchical categories and this hierarchy is universally applicable. These five categories are as under:

Diagram: Maslow's Hierarchy of Needs • Physiological needs: Food, shelter, i.e., those needs needed for basic survival. • Safety needs: The need to feel safe within your environment. Also refers to emotional and physical safety. • Social Needs: The need for love, friendship and belongingness. • Esteem needs: The need for self respect, status and recognition from others. • Self actualisatiorc The point of reaching ones full potential. Are you capable at excelling yourself? So an individual will need to satisfy their most basic need before they can move onto the next. Only when that individual knows that they have met their physiological needs will they move onto their safety needs. Maslow suggests that if you wanted to motivate an individual you will need to know where within the hierarchy they are placed.

According to Maslow's hierarchy, all needs can be ranked in order of importance from the low need to the higher level psychological needs. Maslow's concept suggests that needs change as Wl~ go along our path of striving for self-actualization. Supermarket firms develop value brands to meet the psychological needs of hunger and thirst. So, Maslows concept is useful for marketers as it can help them understand and develop consumer needs and wants. There are however. problems with Maslow's theory. Firstly. it is difficult to tell at what level a person is at within their hierarchy and when that level has been satisfied. Also there is little statistical evidence to prove that this theory actually works. Nevertheless. it is popular and does have some weight behind it. Thus if a subordinate is at the bottom of the pyramid, may be a monetary reward will be the best way to sell to him. In the earlier example where we looked at sales targets, for a colleague at the bottom of the pyramid. a high sales incentive could drive him towards greater achievement. Not so with someone in the self actualization stage.

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Selling and Negotiation Skills

If another subordinate is in the safety rung, job security could be of greater importance to him. Similarly if a peer is in the social league it is easier to sell to him through honest praise and appreciation. Mutual respect may be the way out for the esteem category. Mostly you will not find peers and subordinates in the selfactualization mode. (2) Herzberg's Theory of Motivation Herzberg's Motivational versus Maintenance Factors

Motivational Factors - Interesting, challenging work - Utilization of ones capabilities - Opportunity to do something meaningful - Recognition of achievement - Sense of importance to organization - Access to information - Involvement in decision-making

Maintenance Factors - Congenial people to work wit - Good working conditions - Pensions - Paid insurance - Job security - Vacations - Good Pay - Job titles

Supervisor's versus Higher Management's Role

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Supervisors can provide satisfaction with these factors and cause an increased commitment of employees' time and energy.

Higher management can merely prevent dissatisfaction by providing these factors in adequate quantity and quality.

A similar motivational theory was also devised by Herzberg and the same is graphically illustrated below. The fundamental remains the same. If we know what motivates an individual it becomes easier for us to sell to him. Herzberg found that certain factors were associated with job satisfaction (motivators), while the absence of other factors (hygiene factors) was aSSOCiated with dissatisfaction.

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Motivators are linked to the job content and are intrinsic to the work. These include achievement. recognition. the work itself. responsibility and advancement.

Hygiene factors are linked to the work environment and job context. These include salary. supervision. interpersonal relations. policy and administration and working conditions. Herzberg suggests the focus should be on motivators. Although this research was with an adult population and a work environment. aspects are relevant to students (particularly older students).

Aim: To increase 'job satisfaction' for young people. Job satisfaction is linked to achievement recognition. the work itself. responsibility. and advancement. • Give people recognition for their achievements • Give people responsibility • Give people advancement (status) The above may however not be an exhaustive list but will serve as a good indicator. This basically indicates that many a times the supervisor or the organization thinks that they have been motivating the subordinates by providing higher salary. good work environment or even regular salary on time. job security. vacations etc .. but these all are hygiene maintenance factors. In other words. all these for a part of hygiene factor. they have to be there. Motivator factors are based on an individual's need for personal growth. When they exist. motivator factors actively create job. satisfaction. If they are effective. then they can motivate an individual to achieve above average performance and effort. Motivator factors include: • • • • • •

Status Opportunity for advancement Gaining recognition Responsibility Challenging/stimulating work Sense of personal achievement and personal growth in a job

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There is some similarity between Herzberg's and Maslow's rqodels. They both suggest that needs have to be satisfied for the employee to be motivated. Selling to Peer groups Peers are those who are at the same status as you. Hence. in an organizational set up. there are colleagues who enjoy the same rank. level. grade or designation as you. This is always a tricky Situation. In a manager-subordinate scenario the relationship is well defined. The manager is supposed to gUide. instruct. lead whereas the subordinate is expected to comply. follow and accept. Of course in the modern era more and more organizations are encouraging the frontline to table their ideas in order to gain a fresh impetus. However. the fact remains unchanged that the manager has the final say.

In a peer-to-peer combination since all the individuals are on par. then' is no clear gUideline as to who should have the last word. Hence ideally every discussion or idea should be conSidered on merit. But. like I said ideally. Who is to decide which opinion is more meritorious than the others when all individuals are supposedly at the same levels of intelligence. Hence. you need to sell your point of view across without having the advantage of hierarchy. Again your SWOT analysis may help you but less so because in this case the peers are as experienced or expert. as you. However. it does help to have identified your strengths and weaknesses in any case. So let us begin by discussing some baSic ground rules: • Always be a good listener even if you think the idea coming from someone else is irrelevant. • Do not have any pre-conceived noti0Fl. • Focus on the content and not on the individual. • Do not form cartels. • Put the interests of the group above your own. • Place your opinion but do not force it. • Do not keep quiet fearing rejection of your ideas. • Egos are best left aside when among peers. • Eventually go along with the consensus even if you do not totally agree. • Do not be over critical of someone else's views. • Be participative but give each member an opportunity to voice his ideas

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Adhering to the above ground rules. will create an atmosphere devoid of any tension and prejudice which is essential if fair ideas are to blossom. Also. it creates mutual respect irrespective of whose thoughts are finally implemented. Sometimes difficult doors are thrown open due to unconventional freewheeling ideas and this often forms a foundation for long-term strategizing. ".

Now lets look at a few examples. You are a sales professional who is about to bag a deal worth INR 2 million. The only hitch is that the customer wants the consignment to be delivered within 4 days. You are aware that if. the material proceeds by road which is the normal process this commitment cannot be met. You also know that competition is desperately trying to win this prospect and would go an extra mile to do so. There is only one option that comes to your mind. Commit the required delivery schedule. grab the order and somehow convince your logistic peers to move the consignment by air. That way the customer would be happy. the transaction would be completed swiftly and smoothly and the door to competition would be kept shut. Obviously the cost of air transportation is going to be higher than that by road and this is a wellknown fact. Now assume you set up a meeting with your colleague from logistics to attempt a resolution to this situation. Imagine if all that the two of you were to discuss was your point of view of what would happen. You would insist the material move by air. He would cite the higher cost as an objection and the situation would be status quo unless someone higher up arbitrated. But if each of you sat with a neutral mind patiently hearing the other one out it is possible with your selling skills you would convince him that keeping in mind the long-term relationship with this client it might be a wise idea to incur that additional cost for this transaction. He might also advise you that it could be possible to implement the air mode this one time but in future we should negotiate a higher lead time. The benefits of such a discussion would be that the bUSiness gets executed at a marginally higher cost. you have a satisfied customer. competition does not enter and both you anct you colleague have risen one notch higher in each others opinion. The clich{' \\·in Win could be aptly quoted here. Lets take another illustration of interdepartmental JWlT discussion. You are responsible for distribution sales and one of your distributors last month delayed his payments by a fortnight. He has done this once or twice last year as well. However his overall payment track record is fair. Also he is one of ynur higbly' performing

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distributors. He has given you some good business again but your colleague . . trom the finance department is refusing to allow the same credit facility as earlier. The distributor has stated that his retailers have not paid him on time and hence he was forced to delay the payments. Also without the credit facility he would be unable to give you this chunk of business. This warrants another situation where you need to sell to your peer. Again keep an open mind when you come to the discussion table. If each takes a stance which is opposite in nature - you asking that the same credit facility be permitted and he vehemently denying the same - ultimately business or payment will suffer. However, once again you can use your convincing skills and arrive at a mutual consensus. May be the distributor can be coaxed to pay some part as advance and the balance can be credit thus minimizing the risk of delay. Or maybe the distributor can meet both of you jointly and reassure your colleague that such a delay will not happen in the future as he will keep some money aside for such eventualities. The end result is that you have got your business and your peer has assured himself that there is no undue risk in the transaction. Once again a good example of selling to peers. What must be kept in mind as in the case of both the above examples is that we are not in any way being dishonest to our peers. We are not falsely or overly committing and we do not have only our agenda in mind. We are seeing the larger picture and keeping in mind the organizational goals. We are fully understanding that even our colleagues have a role to play responsibly and hence we are respecting each other's point of views. This leads to a build up of trust and can go a long way in helping resolve even future situations. So. the word of caution here is that with a short-term gain in mind do not falsify data to get through a particular situation as this will have an adverse effect on your credibility and might backfire in some futuristic moment which could be of an even larger magnitude. Sell but do so with whole hearted honesty. After all they are your peers. Selling to Teammates

We partiCipate in teams at a very early age. Whether is is a school football match or gully cricket we are first divided into teams and then these teams compete with each other. We are led to believe that each individuals in our team are on our side and the other team needs ~o Be treated as competition. The advantage in such a situation

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Is that each team has a selected or nominated captain and the onus of all decision-making lies with him.

Photo of Team Later on in college we learn to make projects. assignments. case studies as teams. The notable difference in this scenario is that there is no designated captain or leader and as such the group holds the collective responsibility of all consequences favourable or otherwise. Similarly in a professional environment. we may have to work in teams several times where there is a collective goal but no appointed leader. In such cases. selling to teammates holds great importance. Let us start with something that may be easier to understand. Lets say your class is divided into teams for a certain subject and each team is given a topic on which they have to submit a report. The team size could be 5. The expected report could run to about 50 pages and it goes without saying that it must be as neat and presentable as possible. How would you go about this? One possibility is that you could choose amongst you a so called leader. But this is not very likely. given the fact that you are classmates and would conSider each other equal.. The other logical option is to divide the work so as to complete it within the given timelines. This is where sub consciously you will be selling to teammates as a lot of decisions would have to be taken. Where would you meet? At what time and frequency? Would each of you take subtopiCS? Or work collectively? Where will you get the report printed? What colour would you choose as the cover? A general trend is to go with the majority unless an individual comes up with an idea so bright. it bowls everyone else over.

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A not very different story when it comes to organizational teams. The aim is always to achieve a designated goal within a deadline. You may be in a team that has a common manager or maybe you have had to form a team for a specific task. Either way you will be expected to come up with a common solution to achieve the given job. Your organization wishes to organize a sales conference and for this purpose a team has been formed to discuss the modalities. You are part of this team. Within a specified time frame which could be three weeks you are expected to finalise the entire sequence of events. This would include dates, venue, agenda, F&B, stay, entertainment and so on. It could be that you have a flurry of ideas and according to you there is no better theme. However. you need to sell your idea to the rest of the team to get it through. Many of your teammates would have their own suggestions and each needs to be carefully evaluated before rejecting, shortlisting or finalizing any. It also may be possible you are given a budget to work with and hence all dialogue should have this at the back of the mind. Also remember that even if it is your idea that is sold well, the credit goes to the entire team if the event is a success. After all they agreed to your thoughts, didn't they? Which means that once the team is formed all privileges and responsibilities are collective and the individual is superseded. Selling to teammates is also a very good experience because it gives you the opportunity to showcase your selling skills on a level playing field where no individual has an upper hand. It is also an occasion to learn how different minds think and conjure ideas very different from your own. And finally it is many a times the reason why strong bonds are built between two or more individuals who can selflessly work towards a common goal objectively. Selling to Subordinates

Although the term "Selling to Subordinates" might sound strange nothing could be truer than this. You might feel what is the need to sell to subordinates. After all one can simply instruct them as they are bound by hierarchy to obey these commands. Nothing could be further from the truth. In the case of subordinates, the biggest challenge is to bring a sense of ownership in them. Any task given to them should imbibe the conviction that it is realistic. achievable and at the same time TIl~cessary and relevant. Only thb conviction will bring about a sincere

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and wholehearted effort towards the accomplishment of this task and here is where seUing to subordinates is more than useful.

It is a good time to know the difference between compliance and

commitment. When we give a set of instructions to a group of people we are professionally supposed to manage it could invoke a variety of reactions. There would certainly be someone in that group who may behave indifferently and try to find an escape route by having a list of excuses. Thankfully this number is not large. The majority would go about obediently following these instructions and try to fulfill the given job in a reasonable time frame. This is compliance. A percentage may be so enthusiastic about this work that they would go about doing it with multifold eagerness and actually enjoy the process. They are committed to completing this task not just dutifully but often in the best qualitative manner as well. This is because they have taken ownership of this activity since it has been sold well to them. What they demonstrate is miles ahead of compliance - it is commitment. In order to convert compliance into commitment. selling to subordinates is essential. In fact. this characteristic is evident in all walks of life. Let us see the example of a college student who has six subjects. Obviously. every student wants to pass his exams with the best possible grades. How much effort is he willing to put for these marks is an altogether different subject. Now if this student has a liking towards one of the subjects he will enjoy studying it. This will translate into a high level of commitment and the possibility is high that he will score well in this subject (unless he gets complacent while writing,the paper). If another subject is not so much to his liking his preparations will not be such a great experience and as a result his grades may also dip. The difference being that somehow one subject has been sold to him. Almost similar is the case with professi01lal life. Normally sales performances are measured quantitatively and as such each sales professional is given a target. His perfo!11lance at the end of a given period is seen in light of his target and his achievement can easily be deduced. Obviously. the star performers are those who have exceeded their targets by a huge amount. Now again let us see two different situations. First, there is an executive who feels his target is abnormally high. He thinks it is unrealistic and there is no chance of him achieving it. In short. he has not owned his target. What is most likely to happen? Since thf' target has not been sold to him the chances are he \\i11 be chasine; it halfheartedly and in the absence of a hundred per cent commitment

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he might miss the same. If he is extremely lucky he might occasionally achieve it but that is totally dependent on external circumstances. There could be another executive who feels his target is slightly higher than he would have liked it but it seems realistic if he stretches a bit. He will in all probability run towards this goal with high level of commitment and vigour. The likeliness of achievement here is higher. Obviously only commitment is not enough. There are a lot of other factors that go alongwith it. But the point to note here is that if the conviction is there the odds are better. So in the first case ifthe manager can sit and sell the target to his subordinate the circumstances would be more favourable. Again to reiterate here as in the previous chapters. by selling we do not mean painting an unrealistic rosy picture. The way is to be a guiding light and show by theory or practice the way forward to achieve what initially did not seem possible. If the manager can show how he would have successfully convinced and hence. sold to his subordinate. What we are trying to get across is that instead of just instructing your subordinate to do a specific task. if the task is sold to him by showing him the best possible way to do it .and convincing him of the possibility of achieving it more than half the job is done. There are various ways that one can sell to a subordinate. You can sit across a table and explain to him how to do it. handle his objections if any and review it after he has made a reasonable attempt. Another option would be to lead from the front and actually demonstrate how to achieve the objective. A third way would be to accompany him while he is making an attempt and give him feedback. Under no Circumstances. be untruthful with the purpose of selling to him. Your subordinate will sooner or later find out and the loss of credibility will be almost permanent. Thus. we have seen in this chapter how and why one can sell to peer groups. team members as well as subordinates. Another important element we must keep in ~nd whilst selling to peers. teammates or subordinates is that different people of equal stature may have different needs and hence. may reqUire different ways of selling. If an individual craves for recognition the best way to sell to him is to reiterate and remind him of his potential and capabilities. He will then take pride in doing the task entrusted to him and have a higher possibility of success.

Selling

to

Peer Groups, Teammates and Subordinates

5.2 SUMMARY

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Selling can be seen in two perspectives, either a person sells or motivates the buyer to buy. To sell to peers and teammates, one need to understand the basic Maslow's theory of motivation. Where, needs are classified as:

1. Physiological needs 2. Safety needs 3. Social needs 4. Esteem needs 5. Self-actualisation Also it is important to understand Herzberg's theory wherein he has clearly indicated that many a times people mistake hygiene factors as institutional factors. Once a person understands what motivates his peers, subordinates or teammates.

5.3 SELF ASSESSMENT QUESTIONS 1. Explain how can Maslow's theory be used to sell to

(a) teammates (b) subordinates. 2. Write a short note on Herzberg's theory of motivation. 3. Explain the importance of selling to peers along with appropriate examples.

Chapter

6 Conceptual Selling, Strategic Selling

Objectives After goint through this chapter. you will be able to understand: • • • •

Basics of conceptual selling Stages in conceptual selling Basics of strategic selling Various factors in strategic selling

Structure: 6.1 6.2 6.3 6.4

Conceptual Selling Strategic Selling Summary Self Assessment Questions

6.1 CONCEPTUAL SELLING The customers/clients like to buy. but as human beings would not like to be sold something Concf'ptual sellln~ helps the sales person ('onnt'ct thf' W