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Selling and negotiation important answers.


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Selling and negotiation important answers.

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Selling and negotiation important answers.

  1. 1. Selling & Negotiation Skills. Answer Bank For MMS Semester 1- 2013. 1. “Aim high - Aim for the best outcome”. The statement envisages the entire process of Sales & Negotiation. In your own words and citing relevant examples where ever necessary give us a complete understanding of the same with respect to: [Answer any two] a. Preparation for a sales presentation b. Selling strategy directed towards institutional buyers c. Negotiation strategy expected & adopted by informed consumers of high end products. Answer “a”Here are ten tips for selling better with prepared presentations. 1. Plan Ahead Be sure you are organized and equipped to talk, show, and sell. Know all you can about your prospect before you make the presentation. Tailor your products/services benefits to solve your prospects' problems and fill their needs and desires. 2. Make A Great First Impression. A clean uncluttered sales presentation, like an artist's creation, is a mirror-image of your character, personality, and attitude. 3. Be Clear. Be Logical. Be Brief. Don't be brief at the expense of being misunderstood. Clarity starts with you. Clear answers to your prospects overriding question... What can you do for me? will lead to understanding and sales. 4. Maintain Control. Never sit between two buyers. Don't let the prospect read ahead or thumb through your visual aids until you're ready for him to. Ask the prospect to instruct his secretary to hold all calls during your presentation. (It takes guts to sell.) 5. Seek Change of Pace. Put bounce in your voice. Change pace, tempo, and volume. Ask lots of questions. Get verbal confirmation of agreement at each stage of the presentation. 6. Prepare For Interruptions. Don't be flustered or thrown off balance. Expect interruptions and use them to summarize key sales points. 7. Involve The Prospect. Give the prospect something to feel, handle, manipulate, examine. Let the prospect mentally take possession of your product or service. 8. Gauge Your Progress. Progress should be measured in terms of understanding. No sale. The more the prospect agrees with you, the more progress you are making. 9. Give A Complete Sales Talk Every Time. Your presentation must perform four important functions: (A) Win the prospects attention,
  2. 2. (B) hold his interest, (C) persuade and convince him of the rightness of your proposition, (D) prove that a buying decision is a logical step for him to take. 10. Seek A Buying Action...Expect To Close. A good presentation naturally leads to a buying decision. Make it easy for the customer to buy. If your prospect was properly qualified and your sales presentation on target, you will find the selling process goes quickly and easily. Answer “c”Negotiation is a dialogue intended 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. It means bargaining for a particular thing so that both parties have optimal output. Good negotiator adopts: • Add 10% to sales revenues, which arguably goes straight to the bottom line as incremental profit. • Save 10% of the cost of bought in products and services. • Reduce staff turnover by 5-10%, which reduces recruitment and training costs, as well as improving quality, consistency and competitive advantage. • Result in successful debt negotiation with creditors, which enables a business to continue trading. Failure to negotiate debts often leads to business closure. In a selling role for a company, good negotiation requires a careful combination of empathy for the other person's situation and feelings, with our own responsibilities to secure the best possible commercial outcome for the company. On occasions there can be a personal dilemma. We can feel torn between the interests of the customer - with whom it is of course essential to build an understanding - and the needs of the company. So it is essential to remember our fundamental responsibility as a sales person to remember: You work for your company, not for the customer. By the same token, the customer is out to secure the best possible deal for themselves and their organization, not for your company.
  3. 3. 2. “Selling process is not only an art but also a science” In context to the above statement can we have an understanding on: [answer any two ] a. The entire selling process that one would adopt for selling cars at a dealership. b. Reason for being termed as an art. c. Why it is also termed as a science? Answer “a”- The entire selling process that one would adopt for selling cars at a dealership Basics-A car dealership is a private business owned by a single owner or group of investors. Most car dealerships carry a limited number of franchises to sell various makes of automobiles and trucks. A used lot is often attached to a car dealership where trade-ins and other purchased vehicles are sold. Various departments make up a car dealership, including the sales team, business administration, mechanics and finance department. Franchise-When a dealer buys a franchise, there are usually rules that come with the package including how to decorate the showroom. Management-The sales manager oversees the sales team and the ordering of new vehicles. Most car dealerships try to keep an inventory of about 2 months in stock. They must order a mix of styles and colors to appeal to the most customers and not make them wait for special orders. Sales-Salespeople take turns greeting customers as they approach the showroom. Salespeople often work their own leads through referrals, networking and personal advertising. Customers often go to a showroom armed with a salesperson's name. The first job of the salesperson is to explain the features and benefits of a vehicle and get the customer to drive the car or truck. Finance-The finance and insurance department (F&I) takes an application for financing from the customer or accepts the payments that the customer has pre-arranged. Service-The service department accepts the new cars when they come off the trailer and prepares them for the lot and the showroom. The cars must be cleaned and prepped, plastic covers removed and striping applied. The service department also installs add-ons that the customer ordered. The service department can repair cars and perform regular maintenance functions. Many service departments also have a body shop and keep parts on hand to sell and use for repairs.
  4. 4. Answer “b”Selling is offering to exchange an item of value for a different item. The original item of value being offered may be either tangible or intangible. The second item, usually money, is most often seen by the seller as being of equal or greater value than that being offered for sale. From a management viewpoint it is thought of as a part of marketing,[1] although the skills required are different. Sales often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salespersons (singular: salesperson). Selling is considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesman relates his or her offering of a product or service in return enabling the buyer to achieve their goal in an economic way.[2] While the sales process refers to a systematic process of repetitive and measurable milestones, the definition of the selling is somewhat ambiguous due to the close nature of advertising, promotion, public relations, and direct marketing.
  5. 5. 3. “Negotiating should develop a 'partnership' approach - not an adversarial one”. Give us a better understanding of the above statement by explaining the following: [Any two only] a. The context in which a negotiation process should be viewed. b. Detailed understanding of the term partnership. c. Anticipated effects of the adversarial approach. Answer “c”II. The Adversarial Style The methodology of negotiation has long been associated with aggressively adversarial tactics. This competitive, attacking, often ego-driven style, known as the adversarial style, is characterized by hard-bargaining, aggressive techniques. Most adversarial negotiators view the process as a zero-sum, win/lose prospect, and opposing counsel as a warrior opponent in a battle of wits. The adversarial negotiator’s typical approach involves making high demands, stretching facts, attempts to outmaneuver the opponent, intimidation, and an unwillingness to make concessions. Some lawyers advocate this style, professing its effectiveness in increasing their clients’ gains and avoiding exploitation. It does in fact have numerous advantages; in certain negotiating situations such as pure commodity purchases, lowest-bid transactions, and primarily distributive bargains, the adversarial approach produces optimal results. Answer “b”A partnership is an arrangement in which parties agree to cooperate to advance their mutual interests. Partnership helps is minimizing the starting cost required to set a company. While partnerships stand to amplify mutual interests and success, some are considered ethically problematic. When a politician, for example, partners with a corporation to advance the latter's interest in exchange for some benefit, a conflict of interest results; consequentially, the public good may suffer. While technically legal in some jurisdictions, such practice is broadly viewed negatively or as corruption. Governmentally recognized partnerships may enjoy special benefits in tax policies. Among developed countries, for example, business partnerships are often favored over corporations in taxation policy, since dividend taxes only occur on profits before they are distributed to the partners.
  6. 6. 4. “Do not negotiate if there are unrealistic demands being made at any stage”. In view of the above statement, which we all agree to, explain the following: [any two] a. Reasons for not negotiating. b. Unreasonable demands – detailed understanding c. Stages in the negotiation process. Answer “c”5 Steps of Negotiation Process Previously in this blog we discussed about the negotiation and tried to define it. We seen that negotiation permeates the interactions of almost everyone in groups and organizations. 1.Preparation and Planning Before the start of negations one must be aware of conflict the history leading to the negotiation the people involved and their perception of the conflict expectations from the negotiations etc. 2.Definition of Ground Rules Once the planning and strategy is development one has to begin defining the ground rules and procedures with the other party over the negotiation itself that will do the negotiation. Where will it take place? What time constrains, if any will apply? To what issues will negotiations be limited? Will there be a specific procedure to follow in an impasse is reached? During this phase the parties will also exchange their initial proposals or demands. 3.Clarification and Justification When initial positions have been exchanged both the parties will explain amplify, clarify, bolster and justify their original demands. This need not be confrontational. Rather it is an opportunity for educating and informing each other on the issues why they are important and how each arrived at their initial demands. This is the point where one party might want to provide the other party with any documentation that helps support its position. 4.Bargaining and Problem Solving The essence of the negotiation process is the actual give and take in trying to hash out an agreement. It is here where concessions will undoubtedly need to be made by both parties. 5.Closure and Implementation The final step in the negotiation process is formalization the agreement that has been worked out and developing and procedures that are necessary for implementation and monitoring. For major negotiations – this will require hammering out the specifics in a formal contract.Negotiation Process has five stages. In all steps of negotiation process the
  7. 7. involved parties bargain at a systematic way to decide how to allocate scarce resources and maintain each other’s interest. Answer “b”Demands that seem unreasonable can be a tremendous source of stress. These often arise when innocent situations come together and reinforce one another to create stressful, extreme, and unfeasible demands on you. For example, if you are in a customer service role, several customers can be clamoring for completion of large jobs at the same time. This becomes intensely stressful when you only have the resource to service a few of them. Similarly, enthusiastic middle managers can amplify the importance of simple, low priority requests from senior managers, creating unwarranted pressure on implementation teams. In other situations, requirements can be misunderstood when transmitted from person-to-person, the importance of deadlines can be overstated, and requests can be made in ignorance of key pieces of information. In all of these cases, and in many others, reasonable people can make unreasonable demands with or without knowing it. If you add into this the concept of “stretch goals”, the fact that people making requests may not have correctly appreciated the situation, and the fact that that people may be playing normal commercial games, you can see how problems arise. This tool helps you to work through apparently unreasonable demands to understand what lies behind them, and develop appropriate solutions to them. It helps you to work effectively with the person making the demand to find a satisfactory solution, rather than just assuming that the other person is “difficult and unreasonable”. This helps you to reduce the stress that these situations can cause.
  8. 8. 5. For effective sales or negotiation to happen, body language plays an important role. Please explain in details any two terms pertaining to body language as given below: a. Positive body language b. Negative body language c. When positive body language, are exaggerated, they can become more negative than positive. Answer “a”1. Positive Body Language Positive body language is generally quite reliable as an indicator of a person's feelings. It signals interest in the other person and in the conversation. • Relaxed posture Comfortably seated, relaxed breathing, no visible stiffness or abrupt movements. These indicate no major barriers to communication. • Arms relaxed Uncrossed arms and open hands (palms up or otherwise visible to the other person) are signs of openness. • Good eye contact Looking in the other person's eyes, particularly when he is speaking, indicates interest in that person. Proper eye contact involves looking away occasionally to avoid staring. • Nodding agreement When nods are used to punctuate key things the other person has said, they signal agreement, interest and understanding. However, continual unconscious bobbing of the head usually indicates that the listener is tuning out. • Taking notes Shows interest and involvement, particularly if notes are on what the other person is saying. • Smiling This is a very positive sign. It signals a warm, personal relationship. • Leaning closer Reducing the distance between two people, particularly when the other person is speaking, indicates interest is up and barriers are down. • Gesturing warmly Talking with hands, particularly with palms open, indicates involvement in the conversation and openness to the other person.
  9. 9. Answer “b”2. Negative Body Language Actions that are generally considered negative may just be a matter of comfort for this person, may indicate that the person is tired, or may result from other matters that are weighing on this person's mind. • Tense body Stiffness, wrinkled brow, jerky body motion, hands clasped in front or palms down on the table. • Arms folded in front This creates a barrier and can express resistance to what is being said. • Hand on face A hand over one's mouth is a closed gesture. Leaning on one's elbow with the chin in the hand can communicate boredom. • Fidgeting Moving around a lot, playing with things and drumming fingers are usually signs of boredom, nervousness or impatience. • Arms behind head, leaning back In a well-established relationship, this can be a relaxed gesture. In a new relationship, it is often used to express a desire for control or power. • Yawning This signals boredom or confusion. The other person is talking too much or in too much technical detail. • Impatience Some signs are trying to interrupt what the other person is saying or opening one's mouth frequently as if to speak. • Distraction Eyes flicking about, blank stares, flipping through literature without really reading it, looking at others in the office or looking at the person's body or clothing all represent distraction. • Leaning away Avoiding moving closer, even when something is handed to the person, is strongly negative. • Negative facial expressions These include shaking head, eyes narrowed, scowling.
  10. 10. 6. Explain in details any two statements mentioned below: a. Essential skills for successful sales professionals. b. Important attitudes for sales professionals c. Requisites for successful sales professionals. Answer “b”Persistent and determinant-The determined person refuses to accept defeat and goes on to attain what he wants. Maintain a long-term relationship with customers. Need to view each sale as a stepping stone towards earning the goodwill of their customers. Having a friendly personality Good reputation and behavior to their customers and their organization. Answer “a”Prospecting Without a consistently full pipeline, you will struggle to meet your sales targets and goals. You will experience peaks and valleys and experience a great deal of frustration. Questioning Although this sounds like a fundamental concept, the majority of sales people I have encountered over the last 15 years fail to effectively execute it. Listening You can ask all the questions in the world but if you don’t listen carefully to what the other person tells you, you are wasting your time and losing valuable sales opportunities. Active listening means actually hearing what people tell you. It means asking clarifying questions when the other person says something vague or that requires elaboration. Presentation Skills Presentation skills should be mastered in order to have great presentation and the customers can be attracted to buy the product by watching the presenting skills of the individual.
  11. 11. 7. “The entire process of sales comprises of seven steps”. In view of the statement let us understand: [answer any two] a. Brief on each of the seven steps. b. Detailed understanding on information gathering c. Pre- meet preparation for the sales of a high end Laptop. No matter what you're selling, every sale follows roughly the same pattern. It's a rare sale that doesn't include each of these steps in one form or another. In order to succeed in sales you need to master each one of these stages. If you're weak in one or more areas, you might survive as a salesperson but you won't thrive. 1. Prospect for Leads You can't prospect effectively without knowing all about your product(s). If you don't understand the product, how could you know who will want to buy it? 2. Set an Appointment It's time to use those leads you collected in stage 1. Many salespeople prefer to cold call over the phone, but you can also call in person, send email or even mail out sales letters. 3. Qualify the Prospect The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact. The idea is to confirm that your prospect is both able and potentially willing to buy your product. 4. Make Your Presentation The presentation is the core of every sales cycle, and it's probably where you'll invest the most preparation time. Keep in mind that you're not just selling your product... you are also selling yourself! You represent your company, so appearance counts. 5. Address the Prospect's Objections Here's where you get to deal with your prospect's concerns. The one you'll hear most often?“I have to think about it.” 6. Close the Sale Once you've made your presentation and answered your prospect's questions and objections, it's time to ask for the sale. This is the second-most neglected stage of the sales cycle... which is especially sad given that it's probably the most critical one. 7. Ask for Referrals This is hands down the most commonly neglected step. Too many salespeople are so relieved to get a sale that they grab their things and race out the door the second they get the chance, for fear the prospect will change their mind! b. Detailed understanding on information gathering c. Pre- meet preparation for the sales of a high end Laptop.
  12. 12. 9. “God has given us two ears and two eyes but only one mouth”. As a professional explain the importance of [any two]: a. Eyes in the selling & negotiating process b. Importance of the mouth. c. The power of listening. Answer “a”Eyes in the selling & negotiating process • You may force your self to look at person’s face while talking, thereby pretending to have interest you don’t feel, but you consciously cannot control the size of your eye pupils. • The pupil will change size with the interest the individual feels e.g. if a man is looking at a women and feels attracted to her his pupils will dilate, women reacts the same way to men. • If a customer is offered an interesting proposal his eye pupils automatically enlarge. • It may happen that the buyer expresses the shock verbally on hearing the price, only to be betrayed by lack of pupil reaction. • As people’s mood changes from positive to negative the eye pupil will contract or dilate accordingly. • When we are listening, our eye contact is as high as 100%, but when we are talking our eye contact can be as low as Zero. Answer “c”1. Listen to what they say. Don’t interrupt, disagree or “evaluate.” 2. Nod your head, and make brief acknowledging comments like “yes” and “uh-huh.” 3. Without being awkward, repeat back the gist of what they just said, from their frame of reference. 4. Inquire. Ask questions that show you’ve been paying attention and that move the discussion forward.
  13. 13. 10. The new way of thinking about relationships is also called organic growth. Explain the process envisaged by any two statements below: a. Nurturing Business Development Ambitions through positive word of mouth. b. Drive revenue yield through – cross sell, bundle sell & up sell. c. Create future opportunities with Introduction to various product offerings. Answer “c”To give a hope to the customers that the company will launch much more sophisticated products in the market in different fields for customer satisfaction. So they can upgrade their current product in future with a exchange to the new one. This gives satisfaction to the customer that the he can buy the product now and when it will be upgradable he can trade it for a new one. Thus proposing future opportunities to introduce new products increases current market of the company and hence the share prices. Answer “a”While doing business one should have a positive word of mouth. It builds confidence in the customer to buy the product and in the company. If one offers a negative word of mouth we cannot decline the chances that the customer may be hurt or may not buy the product. Keeping positive word of mouth also can convince the investors to invest in the company and thus increase the stock market of the company as finance of the company is increased.
  14. 14. 11. Relationship selling has attained importance and is employed as an effective selling tool. Explain any two components as given below: a. Good posture b. Sincerity c. Preparation & Presentation. Answer “a”- Good Posture One of the first key things people notice is how you carry and present yourself. Do you walk and stand with confidence like your mother taught you? Stomach in Chest out Shoulders back Head up Or do you slouch, perhaps with your shoulders drooping, your head forward and your stomach protruding? Are you saying to people that you are not sure of yourself, are not poised and, therefore, not the one they should seek out and get to know? You may be turning people away without even being aware of it. You also tell people through your posture if you are want others to approach you. For instance, if you are talking with one other person and the two of you are forming a rectangle, you will give the message that you have "closed off" your space and don't want to be interrupted. If you doubt me, stand by two people who are in the rectangular position and see how long you go unacknowledged. The two will see you out of their peripheral vision, but won't include you until they have finished their "private" conversation. If, on the other hand, the two of you stand with your feet pointed outward like two sides of an incomplete triangle, you will be inviting others into the conversation. You can make that allimportant eye contact.
  15. 15. Answer “b”Sincerity Business is heavily influenced by the personality of its founder. He is the primary decision maker and risk taker. He uses his skills, experience, and resources to get the business up and running. This is why a business owner’s personality and ethics has a huge effect on the credibility and viability of his business. When you look at successful companies, you can see how the culture of their founders is usually handed down to the employees. This is easier to do when the enterprise is still in its infancy. Everything is in flux and being the business owner automatically makes you the moral compass. It is your duty to lay the foundation of your enterprise’s vision and values. How does this insight help you in your own efforts in building your business? It helps you by providing a validating the importance of these two virtues and the critical role they play in your organization. Employees who feel valued by their employers end up happier. The benefits also extend to your customers. They receive better service and get a much more positive experience from your happy employees. Sincerity is definitely a proven morale booster that benefits people under you and customers who come to you.
  16. 16. 12. Explain any two terms pertaining to the Negotiation Process: a. Distributive Negotiation b. Integrative Negotiation c. Negotiation as a measurement for profits & losses. Answer “a”Distributive negotiation Distributive negotiation is also sometimes called positional or hard-bargaining negotiation. It tends to approach negotiation on the model of haggling in a market. In a distributive negotiation, each side often adopts an extreme position, knowing that it will not be accepted, and then employs a combination of guile, bluffing, and brinksmanship in order to cede as little as possible before reaching a deal. Distributive bargainers conceive of negotiation as a process of distributing a fixed amount of value. The term distributive implies that there is a finite amount of the thing being distributed or divided among the people involved. Sometimes this type of negotiation is referred to as the distribution of a “fixed pie.” There is only so much to go around, but the proportion to be distributed is variable. Distributive negotiation is also sometimes called win-lose because of the assumption that one person's gain results in another person's loss. A distributive negotiation often involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. Simple everyday examples would be buying a car or a house. Answer “b”Integrative negotiation Integrative negotiation is also sometimes called interest-based or principled negotiation. It is a set of techniques that attempts to improve the quality and likelihood of negotiated agreement by providing an alternative to traditional distributive negotiation techniques. While distributive negotiation assumes there is a fixed amount of value (a “fixed pie”) to be divided between the parties, integrative negotiation often attempts to create value in the course of the negotiation (“expand the pie”). It focuses on the underlying interests of the parties rather than their arbitrary starting positions, approaches negotiation as a shared problem rather than a personalized battle, and insists upon adherence to objective, principled criteria as the basis for agreement.
  17. 17. 13. “Research is an unavoidable evil in the selling process”. Explain any two scenarios based on the statement made. a. Pre sales research b. Research during the sales process – 1st meeting c. Post sales research. Answer “a”Presales is a process or a set of activities normally carried out before a customer is acquired, though sometimes presales also extends into the period the product or service is delivered to the customer. The task of a presales person starts from the initial contact phase and often ends once the customer is acquired i.e. sale is made. In some cases, presales also provide some initial or transitional support post sale. The responsibilities differ from organization to organization but in general include: 1.Solution Preparation/Proposal based on Customers Requirements 2.Product demonstrations 3.Proof of Concept Creation 4.Creation of Marketing Documents 5.... and any other activity required to generate business In India, Canada and the United States, real estate properties that are sold before construction or before construction is completed are referred to as Presales. These properties are known as off plan properties in the UK and Australia. Answer “c”After sale of tool/product providing support for that tool/product or services related to that tool/product which generate the revenue is called as post-sales. After you sell your product or service to a customer, the work was performed and paid for, he still needs to hear from you. Depending on your business, your customer needs instructions or opinion. If you sell garage door openers, provide installation and how-to-use instructions. If you sell mortgages or cosmetic dentistry, provide advice on how he should proceed with the choice he’s made: You don’t need to “sell” the loan or the crowns to him again, but you can answer common after-sale questions and offer reassurance.
  18. 18. Offering instructions and advice to your paying customers helps you to: ◾ Solidify your relationship with your customers, which makes them more likely to remain customers, and more likely to recommend you to others. ◾ Lessen the phone calls and emails you need to deal with, to answer customers’ questions. I’m not saying you aren’t willing to talk to customers, but when you answer simple, common questions in an easy-to-distribute written form, you’ll free up time you can spend with customers who have pressing problems.
  19. 19. 14. There are different types of sales. Elaborate in details along with relevant examples any two of the types mentioned below: a. Services sales b. Direct sales c. FMCG sales d. FMCD Sales. Answer “b”It means manufactures who sell directly to the public, bypassing wholesalers and retailers, is direct sales. It means selling product directly to the consumers without fixed retail locations. Modern day direct selling includes internet sales, hoardings, and personal contact arrangements. From stats data it is cleared that the 55% adults buy products through direct selling. It has a major advantage that the consumer benefit from direct selling and bcoz of convinence and service it provides. Including personal demonstration and explanation of products, home delivery, and generous satisfaction gurantee. Compared to franchising the cost for an individual to start an independent direct selling business is typically low with little resources and other cash commitments. In direct selling we require to keep a code of conduct for both salesman and the consumer. Direct selling is different than direct marketing bcoz it is about individual sales agent reaching directly and dealing with the clients. Direct marketing is about the business organisation seeking a realationship with their customer without going through an agent or retail outlet. Direct selling uses also multilevel marketing rather than single level marketing. Answer “c”The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy products, and baked goods—are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates. An excellent example is a newspaper—every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day.
  20. 20. Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the profit margin made on FMCG products is relatively small, more so for retailers than the producers/suppliers, they are generally sold in large quantities. FMCG is probably the most classic case of low margin/high volume business. Many of the players on the retailer side such as Walmart, Carrefour, Choithram, Tawseel, Sheel, Walgreens or Metro Group and supplier side are among the largest and most recognized global companies. The following are the main characteristics of FMCGs:[2] ◾From the consumers' perspective: ◾Frequent purchase ◾Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule) ◾Low price ◾From the marketers' angle: ◾High volumes ◾Low contribution margins ◾Extensive distribution networks ◾High stock turnover
  21. 21. 15. Explain in details and in your own words any two of the statements given below: a. Relationship selling as an extension of the sales process. b. Body language during the sales process c. Sales closure indicators and process. Answer “a”Many people with small business have great ideas for new consumer products or services. They have the defined the target market and how to reach it. They know how to run a company successfully. But what they lack is sales process or ability for successful sales conversation and stop ignoring people who say “no”. The thing that makes this small business people fear is that when they want to launch a product then they hear negative comments from the colleagues that this project wont be successful or it wont work or it will not work in the market. So what happens is that this fear come in the way when you want to sell your product and it results failure. Thus you don’t make sales, you don’t have business and no matter how good the product is. So there is a positive way to deal with sales and be positive. There is a way to sell that is being positive, rewarding and enjoyable. This is known as relationship selling. This way we can improve our sales and have greater profits. Relationship selling applies to all kind of business, small and large. The process may change slightly but the overall theme is same. ExampleIn traditional selling if a seller wants to sell a car, he will try to trick, persuade or tell anything about the car to make the consumer buy it. But in relationship selling if the product service is truly good and meets the buyers demand then both parties will benefit through the sale.
  22. 22. Answer “b”Body language means in a face-to-face meeting, part of the communication is carried in a non-verbal form, what is often called body language. There are two principal reasons of body language: • People remember more of what they see than what they hear. • When a person's words and body language are consistent, we believe that person. There are two types of body languages. One is positive and other is negative. The positive body language help the person to make effective sale process where as negative body language can ruin the sales process. One should always avoid negative body language. It includes, Tense body, Arms folded in front, Hand on face, Fidgeting, Arms behind head, leaning back, Yawning, Impatience, Distraction, Leaning away, Negative facial expressions. This can make the consumer impatient and ruin the sales process. So one should have positive body language. And while the sales process if your body language is going negative then you should learn to control it. Positive body language includes, • Relaxed posture Comfortably seated, relaxed breathing, no visible stiffness or abrupt movements. These indicate no major barriers to communication. • Arms relaxed Uncrossed arms and open hands (palms up or otherwise visible to the other person) are signs of openness. • Good eye contact Looking in the other person's eyes, particularly when he is speaking, indicates interest in that person. Proper eye contact involves looking away occasionally to avoid staring. • Nodding agreement When nods are used to punctuate key things the other person has said, they signal agreement, interest and understanding. However, continual unconscious bobbing of the head usually indicates that the listener is tuning out. • Taking notes Shows interest and involvement, particularly if notes are on what the other person is saying. • Smiling This is a very positive sign. It signals a warm, personal relationship. • Leaning closer Reducing the distance between two people, particularly when the other person is speaking, indicates interest is up and barriers are down. • Gesturing warmly Talking with hands, particularly with palms open, indicates involvement in the conversation and openness to the other person. This makes the consumer relaxed and helps better communication and sales process. Thus the consumer also starts believing in seller as he has a positive body language and this helps in effective sales.
  23. 23. Answer “c”Sales closure means getting a customer to buy a product service you may offer to means financial success for you and satisfaction for your customers. Anyone can sell a product but making them satisfy and making them come back to you for future sales needs practise. Sales closing procedure can only be done only after we know that the customer shows buying indications. Once you observe that the customer is ready to buy a product then stop selling and close the deal. Sales closure indicators: 1. customer shows interest in the product or service. 2. he wants to find out how it will benefit him. 3. he will ask for any concession in the value you offered. 4. he will try to negotiate. 5. his body language will indicate the whether he is satisfied with the product or not. 6. he will show buying signs. Sales closure process- • • • • • • Once you listen to the customers, you get a rough idea whether he is going to buy the product or not. Then stop selling the process and close the deal. Tell the customer what advantages is about your project. Close the deal by asking the customer if he would like to buy the product. Close the sale by asking questions such as if he is ready to by the product and sign the docs. Put him in a situation that he won’t refuse. Add accessory or additional small products so that it makes the customer happy. Like if he buys a car, give him some accessories free.