Unite 1 notes

1. MBA: I
SEM: I
Selling & Negotiations Skills Lab
Course Code: 115
Generic Elective – Institute Level
- 2 Credits
Course Faculty:
Prof. Piyush Aole

2. UNIT 1
• Basics of Selling: Definition, Fundamentals & Importance of
Selling. Role in the context of organization – survival and
growth.
• Types of Selling - Different in selling situations, New business
versus service selling, Newton’s classification of sales types,
McMurry & Arnold’s classification of selling types, Consumer
indirect selling, Industrial selling, Missionary, Sales
Team/group selling Merchandising, Telesales, Franchise
selling, International selling.

3. UNIT 2
• Pre-Selling Work : Attributes of a Good Salesperson -
Personality & physical characteristics, Enthusiasm,
Confidence, Intelligence, Self-worth, Knowledge- product,
Competition, organization, market, customer, territory;
• People Buy From People, Communication skills, Persuasive
skills, Personal Diary, Time management, Managing Sales
Documents and collaterals management. Fear Factor in Sales.
Maximising Productivity in a Sales Role, Meetings and Your
Time,
• The Telephone - Social Media & Online Data Bases as a Sales
Tools, Developing Your Script, Mailers, Pre- Call Planning,
Generating Appointments

4. UNIT 3
• Selling in Action: Identifying Key Individuals – Prospecting,
Influencers and Decision Makers, Talking to the Right
Individuals,
• Making that Good First Impression, How to Win Friends and
Influence People, Dale Carnegies Six Principles of
Relationship, What’s In It For Me?, Honesty and Integrity.

5. UNIT 4.
• Objection handling: Analyzing the Reasons for Objections,
Seeing What We Can Do, Listen - Probe - Advise (LPA),
• Exercise: Objection Handling, Uncovering Objections, Seven
Types of Objections, Turning Objections into Selling
Opportunities.
• Selling Techniques: Cross Selling, Up Selling, Value Added
(Suggestive) Selling, Advancing Opportunity, Exceeding
Customer Expectations, Giving Recognition.

6. UNIT 5
• Sales Conversation, Negotiation & Closure: Starting a Quality
Prospecting Conversation, Listeners Control Conversations, Trial
Closing, Creating an Opportunity: Situation vs Problem
Questions, Difficulty Questions, Negative and Positive Answer
Questions, Directive Questions, Rhetorical Questions.
• Negotiation Styles/Strategies (5), Negotiation Process, Reverse
Psychology in Negotiation. Sales Proposals: How to Construct a
Sales Proposal, Important Factors to Consider, Putting It All
Together
• Note: 1. The course should be delivered from a skills building perspective.
• 2. Principles should be supplemented by live exercises on personal.

7. • Suggested Text Books:
• 1. Selling & Sales Management, Geoffrey Lancaster & David Jobber, Macmillan India
Ltd.
• 2. Negotiation: Communication for diverse settings, Michael L Spangle and Myra
Isenhart, Sage South Asia
• Edition.
• 3. The Sales Bible: The Ultimate Sales Resource, Jeffrey Gitomer, Wiley India
• 4. How to win friends and influence People, Dale Carnegie
• 5. The Art of Closing the Sale, Brian Tracy, Pearson Education.
• 6. Questions are the answers: Allen Pease
• Suggested Reference Books:
• 1. Sales Management, Bill Donaldson, Palgrave Publications
• 2. You can negotiate anything, Herb Cohen
• 3. Managing Sales Leads, Crocker and Obermayer, American Marketing Association

8. UNIT 1
• Basics of Selling: Definition, Fundamentals &
Importance of Selling. Role in the context of
organization – survival and growth.
• Types of Selling - Different in selling situations, New
business versus service selling, Newton’s classification
of sales types, McMurry & Arnold’s classification of
selling types, Consumer indirect selling, Industrial
selling, Missionary, Sales Team/group selling
Merchandising, Telesales, Franchise selling,
International selling.

9. • Basics of Selling:
• Definition:- Selling is any transaction in which money is exchanged
for a good or service. During a sales negotiation, the seller attempts to
convince or “sell” the buyer on the benefits of their offer. If the buyer
wishes to strike a deal, they will give the seller an agreed upon amount
of money in exchange for the seller’s product/service. Put simply,
selling is the act of persuading.(to cause someone to do something by
asking, arguing, or giving reasons.)
• Defination of negotiation skills
• Negotiation skills are inherent qualities that help two or more parties
agree to a common logical solution. In the workplace, you may have to
display your negotiating skills in various situations such as:

10. • Negotiating a salary hike with the HR manager after promotion.
• Negotiating a project deadline with your team lead or manager.
• Negotiating few days off for a family holiday with your manager.
• Negotiating contract terms with a potential customer.

11. • The 5 Selling Fundamentals
• Continuity:
• This is about repetition. Just a couple calls to a prospect is not
enough. “If after a couple of calls the prospect is not engaging
with you, then they must not be interested.” That is a big lie!
There’s a reason why the biggest brand names spend billions
on advertising; they know they need to keep their name out
there. If big brands know they need to do that, you better not
think a couple of calls is all it takes.

12. • Competence:
• Separate yourself from everyone else. This is about you
demonstrating your intelligence to your prospect and customer
However, it’s not about you doing all the talking. It’s about
engaging the prospect in a conversation that has them
thinking. Don’t waste time telling them how great you and
your company are. That’s old school. Instead, focus on the
questions you ask.

13. • Confidence:
When there is a high degree of confidence, there’s a high degree
of trust–and it’s there that real value is created. We create real
value when we’re trusted, because that is when the other person
feels enough at ease to reveal everything and get to the core of
their issues.

14. • Opportunity:
You now know the customer’s critical needs, the customer has an
astounding level of confidence in you, and so it becomes the
perfect time to present the opportunity.
• Profit

15. • Importance of selling
1. Discovery
2. Ability of selling skill
3. More educated and informed customers
4. Confidence
5. Think like your customers

16. • Role in the context of organization
• Context of the organization is the business environment determined by
external factors like legal, financial, social, regulatory and cultural, etc. and
organization’s internal environment determined by internal factors like
internal structures, governance, resource capabilities. Context of the
organization also depends on the requirements of the Interested Parties.
• “Leading in the Organizational Context means directly and indirectly
influencing and aligning individual and team efforts toward fulfillment of
the organization’s purpose through systems, processes and structures.”
• Organizational leadership requires a strong perspective from the head of the
organization.

17. • Role in the context of organization – survival
and growth.
• Organizational Growth and Survival by examining the various terms
depicting organizational strategies, leadership behaviors and traits, there are
six elements that must call as organizational growth and survival.
• The six components are:
• Organizational life cycle
• Transformational leadership
• Concern for people
• Expert power
• Participative leadership
• Effectiveness

18. • Types of Selling
• Let’s start off with the five primary sales categories:
1. B2B sales (business-to-business sales)
2. B2C sales (business-to-consumer sales)
3. Enterprise sales
4. SaaS sales
5. Direct sales

19. • B2B sales
• B2B sales, or business-to-business sales, are sales that occur between other
buyers or services. They’re frequently more complex, involve more
players, and take longer than B2C (business-to-consumer) sales. They also
typically deal with larger amounts of revenue than B2C sales and tend to
focus on long-term relationships rather than one-time purchases.
• There are three main of types of B2B sales:
1. Supply sales
2. Distribution sales
3. Service sales

20. • B2C sales
• The key difference between B2C sales and B2B sales is the approach to
buyers. B2B sales are far more focused on logistics, negotiating, and the
relationships between the buyer and seller. B2C sales, on the other hand,
are all about the brand, price, and emotional reaction. A successful B2C
seller knows how to communicate their brand on an emotional level to the
general population.
• Enterprise sales
• Enterprise sales (also called complex sales) are a type of B2B sale that
specifically targets large companies. Enterprise sales come with high
stakes. Most of them entail lengthy processes that end with a huge revenue
deal, a complicated implementation, or a multi-cycle complex contract.

21. • SaaS sales
• SaaS sales refers to software-as-a-service sales. SaaS is any type of
software hosted by a single provider or company, often sold on a
subscription plan. We’re very familiar with SaaS software because it’s our
business. Zendesk is a SaaS company. We create and sell CRM software
and platforms to businesses to help them improve their customer service
skills and smooth their sales pipelines.
• Direct sales

22. • New business versus service selling
• Advantages of Selling a Product
• Products offer a uniform solution to customers' problems. If you sell
products, you sell identical versions to numerous customers. You may
offer advanced or improved versions of products, but even those remain
very similar to each other. Your prospects can evaluate features before
they buy, and if you do not sell to one prospect, you can try to sell the
same item to another prospect. When you sell a product, you can focus
more on selling than on customizing the product.
• Disadvantages of Selling a Product
• You must store inventory when you sell products. Whether you
manufacture goods or purchase them for resale, you must constantly
estimate how much you need on hand to meet demand. That means you
spend money on products before you make any income from them. You
have warehousing and personnel costs for inventory, along with losses
due to damage and theft. You must constantly tweak sales projections so
that you know how much inventory to order.

23. • Advantages of Selling a Service
• When you sell a service, you sell an intangible. You do not have to limit your
pitch to pre-existing features, because you can adjust the features of a service
to meet the needs of each client or customer. You can emphasize aspects of
your service that will solve your prospect’s problems or satisfy their needs
and you can offer a trial period for using your services. If the customer does
not keep the service, you do not have used goods on your hands to dispose
of.
• Disadvantages of Selling a Service
• You can find it difficult to describe your service to prospects. In fact, people
you pitch to may not be able to visualize what you do. You can counter this
somewhat by focusing on how your service benefits customers, but even
then you may have to repeatedly articulate why your service has value.
Customers may express more reluctance when buying a service, because
unlike a product, they can’t evaluate it before they use it.

24. • McMurry & Arnold’s classification of selling types
• Group A (service selling):-
1. Inside order sales- A salesperson who writes up sales orders at a sales
counter, or those forwarded to the company by telephone, but is not
required to sell persuasively to customers.
2. Delivery sales- mainly engages in delivering the products.
3. Outside order sales- works on the actual field and strikes a deal by meeting
prospective customers.
4. Missionary sales- a missionary type of sales job involves convincing
someone who has never used a product to buy it.
5. Technical sales- emphasizes on the technical knowledge; the engineering
sales person, who primarily acts as a consultant to the client companies/
customers.

25. • Group B (development selling):-
1. Creative selling (tangibles)- selling creative tangible content to the client.
For eg; interior designers, architects, painters.
2. Creative selling (intangibles)- selling contents which are creative but
intangible in nature. For eg; advertising agencies.

26. • Group C- basically development selling but requiring unusual creativity):-
1. Political, indirect, or back door sales person- sells big ticket items
particularly commodities or items with no truly competitive features. Sales
are consumated through rendering highly personalized services (which
have little or no connection with the product) to key decision makers- in
customer organizations.
2. Multiple sales- involves the sales of big ticket items where the sales person
must make presentation to several individuals in the customers
organization only one of which can say ‘yes’ but all of whom can say ‘no’
for eg; an account executive of an advertising agency who makes
presentation to the agency selection committees of advertises- even after
the account is obtained, the sales person has to work to retain it.

27. • Newton’s classification of sales types
• Derch Newton has given four classification of selling which are:
1. Trade selling
2. Missionary selling
3. Technical selling
4. New business selling
• Trade selling- Trade selling means where salespeople get retailers,
wholesalers and distributors to handle their products and once this is
accomplished they help distributors to sell their product by offering
promotional and merchandising product.

28. • Consumer indirect selling
• Indirect selling is employed when manufacturer markets his products
through another firm that acts as the manufacturer’s sales intermediary
• Examples of indirect sales methods:
o Wholesalers
o Retailers(supermarkets, departmental stores, multiple stores, independent
retailers, consumer co-operatives)
o Agents
o Distributors and dealers

29. • Advantages :-
• Allows a company to increase sales quickly without having to hire more
sales personnel
• Suitable for overseas market
• Channel is inexpensive- low per transaction cost
• Disadvantages:-
• Manufacturing firm has to give up control of marketing activities to other
firm
• Sometimes it may lead to reduced control of the brand message and poorer
customer service
• Intermediary can easily discontinue handling a manufacturer’s product.

30. • Industrial selling
• Industrial selling (B2B selling)
• Selling of goods and services by one business to another. Industrial goods are
those an industry uses to produce an end product from one or more raw
materials.
• Main features of B2B selling
• This is one to one selling & relatively easy to identify prospects
• Highly trained & professionals are involve
• Complex and long term process

31. • Missionary selling
• A missionary type of sales job involves convincing someone who has never
used a product to buy it.
• Selling financial planning or life insurance and other financial products are
the types of missionary sales job
• The metaphor of a missionary means educating someone about an idea or
concept and convincing them to have faith in it.

32. • Group selling
• Group selling helps one to sell more
• One to many and therefore most cost effective
• Many target customers together

33. • Merchandising
• Merchandising is everything you do to promote and sell your products once
the potential customer is in your store. When we talk about merchandise, we
are talking about products available for sale, typically in a retail setting.

34. • Telesales
• Telesales is a process of creating interest in the product and services that
your business offer to the consumers.
• Telesales is a service activity of selling a product or service to customer
over a telephone. There is no personal contact with the customers.
• Challenges- normal sales presentation involves visual contact, which shows
body language , facial expression and other non verbal cues. There is also
time limit for a seller many telesales roles have an ACD 9 average call
duration) between 3 to 10 min on a average.

35. • Franchise selling
• A franchise is a joint venture between a franchisor and a franchisee. The
franchisor is the original business. It sells the right to use its name and idea.
The franchisee buys this right to sell the franchisor's goods or services under
an existing business model and trademark.

36. • International selling
• Identify what you are doing and why
• Understand and apply the basics of selling which is true all over the world
• Figure out which buying mode the prospect is in
• Find an advisor to help navigate through the rough water of international
• Distinguish between good customers and bad customers
• Challenges-
• Cultural issues
• Language barriers
• Govt. regulation and tariffs