Selling skills training

MASS TRAINING
MASTERING YOUR SELLING SKILLS
Marketing Department
Makhzani Co. Ltd
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Training Agenda
 Basic selling skills
 Sales Process
 Communication skills
 Handling customer objections
 Negotiation skills
 Effective time management
 Key account management
 Adaptive selling
 Pareto’s law
MASS Training Copyrighted Makhzani Marketing Dep.
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You will never get a 2nd chance to make a 1st impression
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AIM
 To Create an Outstanding Success for Our Brands
 Understand in depth, the role of Sales Team
 Develop a Framework for an Effective Sales Approach
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SELLING & SALESPERSONS
 What selling is ?
 What a salesperson does ?
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*What Is Selling ?
To satisfy a Need / Want with your product for Mutual Benefits.
To Identify / Generate / Influence a Need / Want.
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What selling is.
 “The process of:
Developing customer relationships (CRM)
Discovering customer needs,
Matching appropriate products with these needs,
and communicating benefits.”
Manning and Reece
Selling Today
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Selling is a ‘process’ that:
 Facilitates the transfer of goods & services
 Persuades prospects to buy
 Occurs over various lengths of time
 Involves multiple steps (preparing, opening, presenting, closing,
servicing), although maybe not all on every call
 Is part of ‘marketing’ (promotion)
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Selling is a ‘process’ that: CONT..
 Is customer (vs. product) driven. (Customer centricity)
 Bridges between the company and the customer
 Aims to develop long-term, (win-win relationships)
 Strives for repeat business. (Long term BR)
 Is technically oriented.
 Emphasizes service and value.
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Philosophy Of Selling
selling = motivating customer’s commitment
Sales Rep customer
All good reasons why a
customer should buy /
use your product
All the things that a
Customer has to give
BY ASKING
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Selling is ‘helping’ people:
 Solve problems
 Make more $
 Buy
 Meet their needs/goals
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Selling Philosophy of ‘Good’ Salespeople:
 Selling is problem solving
 Selling is a helping, caring activity
 A customer is a person to be served, not a prospect to be sold
 Treat people as human beings, not $ signs
 Unique products, relationships, cultures are important
 Be customer driven, not product driven
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Selling Philosophy of ‘Good’ Salespeople:
 Focus on customer needs
 The customer is the reason a salesperson exists
 Long-term success depends on pleasing others
 Selling is a ‘win-win’ activity
 A commitment to self improvement and life-long learning essential for
long-term success
 Adherence to a strict code of ethics emphasizing, among other things,
mutual trust, respect, and honesty is essential
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“What Makes a Good Salesperson?”
1. Empathy = the ability to sense what the customer is feeling.
2. Drive = the personal need and want to make a sale (not merely for the
money); = a proper ego that is enhanced by success while somewhat
weakened yet motivated and not shattered by failure.
Harvard Business Review
July-August, 1964
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Selling is a ‘profession’ based on:
 Scientific skills, even though it is not an ‘exact’ science
 Knowledge about selling principles/theories
 A code of ethics
 Psychological & sociological aspects of human behavior
(CONSUMER BEHAVIOR)
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 What do salespeople do?
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1) They Sell:
 Products/services
 Solutions
 Information
 Ideas
 Service
 Their company
 Themselves
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2) They work with people:
 Solve problems
 Represent the company
 Communicate (benefits?) with customers
 Develop relationships, partnerships, alliances
 Discover needs
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2) They work with people:
 Gather information
 Educate customers
 Catalyze change
 Help people buy
 Serve customers
 Treat people with respect
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3) They Manage:
 Their time
 Their territory
 Their records
 Their stress
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Rewards of being a professional
salesperson: BROS
 Freedom (own boss)
 Job variety
 Challenge
 Tangible accomplishments
 Recognition/awards
 Financial compensation
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Rewards of being a professional
salesperson: BROS
 Opportunities for advancement
 On ‘cutting’ edge
 Personal relationships
 Satisfaction from helping others
 Job security
 Entertaining customers
 Travel
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Negative aspects of being a professional
salesperson: CONS
 Long hours (physically exhausting)
 Isolation (often work alone)
 Mentally depressing
 Rejections
 Complaints
 Stress
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Types of Selling
 Indirect selling – any form of selling that does not involve a sales person. (Ex:
advertising, promotion, displays, signage)
 Direct Selling – when there is contact between a salesperson and the customer.
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Methods of Selling
 Personal selling – any form of direct contact between a salesperson and customer
 Business to Business – may take place in a manufacturers showroom (inside sales) or in
the field (outside sales).
 Telemarketing – selling over the phone
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Feature - Benefit Selling
The concept that a salesperson needs to
match the features of each product to a
customer’s needs and wants.
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Features Vs. Benefits
Features
 A physical characteristic or
quality of a good or service;
what is it’s intended use?
Benefits
 Advantages or personal
satisfaction a customer will get
from a good or service; features
that have been made into
customer benefits are selling
points.
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MASS Training
PART 2
Call Planning Process

Customer Buying Decisions
 Salespeople must study what motivates
customers to buy and what decisions
customers make before finally purchasing a
product.
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Rationale Motives
 product dependability
 time or monetary savings
 convenience
 comfort
 recreational value
Emotional Motives
 social approval
 recognition
 power
 love
 affection
 prestige
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Extensive Decision Making
 Used when little or no
previous experience with the
item because it is
infrequently purchased.

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

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

Call Planning Process
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MASS Training Copyrighted Makhzani Marketing Dep. 37

.IPre Call Planning
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A. Prospecting
Process of locating potential customers for a product
or a service
Find customer
Qualify
Classify
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 Geographical segmentation
 Specialty segmentation
 Pts Rate segmentation
 Concept segmentation
 Behavioral segmentation
 Social segmentation
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The market is constantly changedi.e. annual customer turnover 15 % : 20
%.
Find new customer to replace those that switch to
competitors
The more information the sales person has about
the prospect the higher the probability of meeting
the prospect’s needs & developing long term
relationship
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Customer data
1-Personal:
 Name(including pronunciation)
 Family status
 Education
 Interests & disinterests
 Mobile & e-mail
2-Attitudes :
 Towards sales people
 Towards your company
 Towards your product
3-Styles :
Social styles (driver ,analytical ….) MASS Training Copyrighted Makhzani Marketing Dep.
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4-General Profile
 Best time for visit
 Working hour
 Address
 Phone number
 Personal data and preferences
Customer data cont.
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Follow up
Obtaining commitment
Responding to objections
Making the presentation
Discovering needs
Making the approach
Collecting pre-call information
Prospecting
Selling process The “Buyer” Become a…
Lead
Prospect
Customer
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Prospect
Need Ability
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Need, Want and Demand
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MASS Training Copyrighted Makhzani Marketing Dep.Maslow's Hierarchy of Needs
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MASS Training
PART 3
The Basic Selling Steps
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The 7 Basic Selling Steps
1. Pre call
planning
2. Opening 3. Questioning 4. Presentation
5. Handling
objections
6. Closing
7. Post call
analysis
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Projecting the right
company image

Targeting

Call preparation

Utilize waiting time

• Identifying the right
customers1. Pre call
planning
• Posture, Facial
Expressions,
customeressing
& Grooming
• Observing
• Review last call
• Objective selling: S.M.A.R.T = Specific,
Measurable, Achievable, Realistic, Time
bound
• Plan the call: objectives, promotional
materials, sequence of detailing
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Types of opening:
Opening is the skill of capturing the customer’s attention and focusing
the sales call.
Steps of opening:
• Greeting
• Rapport building
• Purpose of call
• Initiating business discussion
• Need/Benefit opening:
• Identify a known or presumed need
• Offer a product feature & benefit to satisfy that
need.
• Opening as a question
• Stimulating opening
2. Opening
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Closed Questioning:
• Questioning is used for the purpose of gaining information to use in the
sales call.
• Start with open questions and then move to close questions.
• Invites an extended customer response
• Start with What, When, Why, Where, Who & How
• Invites a “Yes” or “No” reply from the customer
• Start with Do, Will, Is, Should
Choice Questioning: • Give customer two or more positive options in order
to rule out a negative “No” response.
3. Questioning
Open Questioning:
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Tag On Questioning:
• Questioning is used for the purpose of gaining information to use in the
sales call.
• Start with open questions and then move to close questions.
Benefit Tag Questioning:
• Benefit is presented in the form of a statement
supported by a Feature and followed by a Closed
Question
• Tag on questions are used when customer makes a
positive statement which you want to reinforce.
3. Questioning
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Presentation is zeroing on the customer’s identified Needs/Wants with
appropriate Product Features and Benefits.
During Presentation:
• Sit up straight in front of the customer
• Look confident and speak with enthusiasm.
• Hold the Detail Aid in front and use a pen to focus
customers attention
• Don’t look at the Detail Aid, look at the customer.
Observe his/her actions.
• If interrupted, do a brief recap before continuing
• Don’t be distracted by surroundings
4. Presentation
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Skepticism:
• Can be question, comment or query.
• Shows interest of the customer in your product.
Misunderstanding:
• An incorrect negative perception because of
misinformation.
• To handle this provide the right information.
• A customer’s doubt that your product can actually
deliver the stated benefit.
• Offer proof (clinical studies, references)
Real Objection:
• A real short coming or disadvantage of your product.
• To handle real objection, minimize the impact by focusing
on the advantages.
5. Handling
objections
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Hidden Objection:
Indifference:
• customer is not interested in your product because
customer is satisfied with competitor’s product or
customer has never used that type of product.
• Identify a need that can not be satisfied by the
customer’s preferred product.
• customer does not openly raise an objection because
the customer is disinterested.
• How to handle: Ask customer if they have concerns.
• Can be question or query.
• Shows interest of the customer in your product.
5. Handling
objections
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Real success of a sales call depends on the use of effective closing.
After
Presentation:
•Review all the benefits accepted by the customer
•Ask for business (trial use, continued use, expanded use)
•Wait for a response.
6. Closing
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Post call analysis is the process of evaluating and recording the outcome of
the call, in order to plan for future calls.
After
leaving the chamber:
•Evaluate the Call
•Record Call Information
•Set Objectives for next meeting with the customer.
7. Post call analysis
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Asking Questions
 Questions are used to PROBE information from customers
 Questions starting with
WHAT
WHERE
WHY
HOW
WHO
WHICH
are very useful
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Funnel Technique
a powerful tool to Encourage the Flow of Conversation
1) motivate the customer to talk.
2) open with neutral questions to
get unbiased information.
3) ask lead questions to explore
more deeply.
4) ask closed questions to
pinpoint precise requirement.
5) summarize to gain
customer’s acceptance of
requirements.
1
2
3
4
5
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DAPA Method Of Selling
D
A
P
A
efine the customer’s requirement for your product.
cceptance by the customer of the requirements.
rove that your product can fulfil the customer’s requirement.
cceptance of the proof by the customer.
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Significance of DAPA
efine the customer's requirement for your product
cceptance by the customer of the requirements
rove that your product can fulfil the customer’s requirement
cceptance of the proof by the customer
sales rep: asks open active questions
customer : LISTENS and ANSWERS accordingly
customer : ANSWERS and gives acceptance
sales rep : does active listening and makes notes
sales rep : offers the product (or service)
customer : does active listening and if things are not clear, asks questions
sales rep : does relevant answering
customer : accepts the product as his/her need
D
A
P
A
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*Presenting the Benefits
NEED
FEATURE/
OFFERING
BENEFIT
what the customer
wants?
what do we offer?
what the customer
gains?
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*
Famous Quote
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*Handling Objections
 When D to A from DAPA is not done
Objection – An Obstacle Or An Opportunity
 It’s a customer tactic to get a discount
 The customer is confused due to hidden cost or competition
 A habit of asking questions
 A strategy to postpone decision making
When Do Objections come?
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How do we tend to feel?
 Dejected
 Angry
Challenging
 Frustrated
 Defensive
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How Should We React?
 Pause
 Stay calm.
Don’t get aggressive.
 Don’t get defensive
Do not disturb the customer.
Let him/her speak first.
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*Kinds Of Objections
 Unspoken Objection
 Objection that we hear and can
answer
 Objection that we hear and
cannot answer
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*Handling the unspoken
objection
 customer frowns
 customer smiles
(sarcastic)
 customer looks elsewhere
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*Handling the unspoken
objection
What do you do when such an Objection Comes?
 PAUSE and then convert it into a SPOKEN
OBJECTION by asking:
You are thinking something Sir?
Anything particular Sir?
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*Handling the objections we hear and can
answer
When you hear an Objection:
 Pause
 probe gently
 Please, tell me more.
 Apart from this, is there anything else that is of concern to you?
 If I can take care of this to your satisfaction, could we proceed forward (would
you consider our product)?
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*Handling the objections we hear and can
answer
When you hear an Objection:
probe gently
 Give your best possible solution?
 Are you satisfied with my answer?
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*Handling the objections we hear and
cannot answer
Product
features that
meet the
customer’s
needs
Features we offer but
customer does not need
Find Out:
 Why the customer may not
need it?
 How long will the customer
not need it?
 Will the customer ever need
it in future?
Features the customer
wants, but we do not
have
Find Out:
 Why does the customer want it?
 How important is it?
1) Essential 2) Desirable
3) Useful
 Can we explore an alternative?
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*Selling The Price Effectively
Psychological aspects of price:
 Price is the only weapon that the customer has.
 Make sure YOU believe in your own pricing.
 Make the customer feel that you are there to help and not to fight.
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the right stage to present the price:
NOT UNTIL the customer has REALISED the BENEFITS of your product
What does a customer pay for?QUALITY
BENEFITS
CONSISTENCY
RELIABILITY
REPUTATION
BRAND NAME
SERVICE
YOUMASS Training Copyrighted Makhzani Marketing Dep.
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how to postpone revealing price:
If the customer says, “ It must be Expensive” -- Initially Ignore it
If the customer asks a little later, “How Much” – Tackle him/her in the following manner:
1) I am coming to that Sir  ask an Open Neutral Question
2) It depends on your requirement Sir  ask an Open Neutral Question
3) I am sure the Price is not your only consideration Sir
4) It depends on your order size
5) I will leave you with a full Price list Sir
6) First let me tell you the benefits that you are getting
if pressed a lot, tell the price using the SANDWICH METHOD and continue
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SANDWICH METHOD
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SANDWICH METHOD
STEP I: present the BENEFITS of your product
STEP II: put the price in front of the customer
STEP III: JUST CONTINUE with explaining him/her the features that
he/she will derive out of this price
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Handling Price Objection
STEP I: customer objects
STEP II:
sales rep : what are you comparing with, sir?
customer : competition, perception, budget, past experience
STEP III:
sales rep : how much is the difference we are talking, sir?
customer : 20% (the faster he says this, ITS FALSE)
STEP IV: express the difference
STEP V: demonstrate the benefits passable when compared to the difference
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*Closing The Sale
What prevents a sales rep from closing EFFECTIVELY?
FEAR
DOUBT
UNCERTAINTY
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*Closing The Sale
Why a sales rep may not close well?
Too Early
Too Late
Too Meek
Too Aggressive
customer’s objections not resolved completely
Sales process not followed
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*Closing The Sale
When to close?
• The customer has understood your product completely
• The customer has developed trust in your company
• The customer has a desire for the benefits for his/her patients
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*Checklist
Steps to be followed?
STEP I: Greet the customer  further ask for his well being.
STEP II: Give a small 15 seconds introduction on company image.
STEP III: Listen to the customer and use the FUNNEL TECHNIQUE to get the flow of
conversation.
STEP IV: Once you have understood the requirement, use the DAPA Method of
Selling so as to confirm there is no GAP between the need and the offering.
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*Checklist
Steps to be followed?
STEP V: In case the customer has a doubt/objection, then concentrate and resolve
that before moving ahead.
STEP VI: In case the customer asks about the PRICE. Tell him/her that you would
give him/her the best price comparing others. (Use the price postponement
techniques).
STEP VII: In case the question still arises on PRICE, use the SANDWICH METHOD to
answer it.
STEP VIII: Pleasantly Close the sale and confirm the prescriptions.
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MASS TRAINING
ADAPTIVE SELLING
Makhzani Co. Ltd
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Adaptive selling
What is adaptive selling?
Why is it important for salespeople to practice adaptive selling?
What kind of knowledge do salespeople need to practice adaptive
selling?
How can salespeople acquire this knowledge?
How can salespeople adapt their sales strategies, presentations, and
social styles to various situations?
6-89
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Adaptive Selling
Salespeople practice adaptive
selling when they use different
sales presentations for different
customers and alter their sales
presentation during a sales call
based on the nature of the sales
situation.
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Being Adaptive
Is your behavior different at a restaurant if you are there
with your best friends than it is when you’re there with your
parents?
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Buyers want the salesperson to
understand their business.
“Do your homework. … Know ahead of time what we’re
up against in the market, what we’re trying to do. If I offer
to show you around, jump at the chance. Or, better yet,
ask me yourself.”
Adapted from Jim Organ, “The Best Reps Will Take on their Bosses for You,” Purchasing, November 7, 1996,
pp. 50-52.
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Knowledge makes it easier
to practice adaptive selling.
Knowledge is organized into categories
Product and company knowledge
Greater knowledge  more flexibility
Each category consists of
Method of classifying customer (categorical)
Approach to selling the customer (procedural)
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Approaches for Developing Knowledge
Tap knowledge from experts
Read company materials and trade publications
Use market research information
Ask for feedback
Analyze successes and failures
Develop an intrinsic orientation toward your work
6-94
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Social Style Matrix
Analytical
Amiable Expressive
Driver
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Cues for Recognizing Social Styles
Analytical
Achievement awards on wall
Office is work-oriented, showing much activity
Conservative dress
Likes solitary activities (e.g., reading, individual
sports)
Amiable
Driver
Expressive
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Amiable
Office has friendly, open atmosphere
Pictures of family displayed
Personal mementos on the wall
Desk placed for open contact with people
Casual or flamboyant dress
Likes solitary activities (e.g., reading, individual
sports)
Analytical Driver
Expressive
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Expressive
Motivational slogan on the wall
Office has friendly, open atmosphere
Cluttered, unorganized desk
Desk placed for open contact with people
Casual or flamboyant dress
Likes group activities (e.g., politics, team sports)
Analytical Driver
Amiable
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Driver
Achievement awards on the wall
No posters or slogans on office walls
Calendar prominently displayed
Furniture placed so contact with people is
across the desk
Conservative dress
Likes group activities (e.g., politics, team sports)
Analytical
ExpressiveAmiable
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Social Style Matrix:
Customer Expectations
Driver
Atmosphere: Businesslike
Interview Pace: Quick
Information provided: Salesperson’s
qualifications; value of product
Expressive
Atmosphere: Open, friendly
Interview Pace: Quick
Information provided:
What salesperson thinks; whom s/he
knows
Analytical
Atmosphere: Open, honest
Interview Pace: Deliberate
Information provided: Evidence of
salesperson’s expertise in solving
problems
Amiable
Atmosphere: Businesslike
Interview Pace: Deliberate
Information provided: Evidence that
salesperson is trustworthy, friendly
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Driver
Salesperson should provide:
Documented evidence, stress results
Presentation of benefits:
What product can do
Expressive
Recognition and approval
Who has used this product
Analytical
Evidence that salesperson has analyzed
the situation
How product can solve the problem
Amiable
Evidence that salesperson is
trustworthy, friendly
Why product is best to solve problem
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Driver
Assistance to aid decision-making:
Explanation of options and probabilities
Expressive
Testimonials
Analytical
Evidence and offers of service
Amiable
Guarantees and assurances
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Indicators of Versatility
Less Versatile
Limited ability to adapt to other’s
needs
Specialist
Well-defined interests
Sticks to principles
Predictable
Looks at one side of an issue
More Versatile
Able to adapt to other’s needs
Generalist
Broad interests
Negotiates issues
Unpredictable
Looks at many sides of an issue
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Adaptive Behaviors
Less Adaptive
“I’ll tell you how it should be
done.”
“I’m right.”
“It’s always been done this way.”
“You’re wrong.”
“Take me or leave me.”
More Adaptive
“Let’s discuss it.”
“I see your point. We’ll do it your
way.”
“I’m always looking for new
ideas.”
“I want to understand.”
“How can I accommodate you?”
6-104
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Adaptive Behaviors
Reducing Assertiveness
Ask for customer’s opinion
Acknowledge merits of customer’s
viewpoint
Listen without interruption
Be more deliberate; don’t rush
Let customer direct flow of conversation
Increasing Assertiveness
Get to the point
Don’t be vague or ambiguous
Volunteer information
Be willing to disagree
Take a stand
Initiate conversations
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Adaptive Behaviors
Reducing Responsiveness
Become businesslike
Talk less
Restrain enthusiasm
Make decisions based on facts
Stop and think
Increasing Responsiveness
Verbalize feelings
Express enthusiasm
Pay personal compliments
Spend time on relationships rather than
business
Socialize, engage in small talk
Use nonverbal communication
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Strengths and Weaknesses
Driver
Strengths:
Strong-willed, independent, practical,
decisive, efficient
Weaknesses:
Pushy, severe, tough, dominating, harsh
Expressive
Strengths:
Enthusiastic, ambitious, stimulating,
dramatic, friendly
Weaknesses:
Manipulative, undisciplined, egotistical,
excitable, reacting
Analytical
Strengths:
Industrious, persistent, serious, exacting,
orderly.
Weaknesses:
Critical, indecisive, stuffy, picky,
moralistic
Amiable
Strengths:
Supportive, respectful, willing,
dependable, agreeable
Weaknesses:
Conforming, unsure, pliable, dependent,
awkward
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MASS TRAINING
(Key) Account Management
Makhzani Co. Ltd
108

Agenda
 The theory
 The practice
 Useful tools
109

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

Concepts & Definitions
 Different types of Account Management
 Definition of Strategic Account Management
 Strategic Account Management Process
The Theory : Content
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Concepts behind
Strategic Account Management
Marketing?
Strategy?
Strategic Account
Management ? Sales?
Key Account
Management?
112

Concepts behind
Marketing?
Strategy?
Strategic Account
Management ? Sales?
Key Account
Management?
113

Strategic concept ?
Perception
Development
Opportunities
value
CREATION
value
DISTRIBUTION
in REPEATABLE
ways
LUCK
Adapted model from Prof. Aimé Heene: © 2000 Prof.Dr. A. Heene TIMING
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Marketing concept?
 The Economic view (1920): Mechanism to promote trade between industrial
agents as a government policy tool.
 The Consumer view (1960): Mechanism to promote sales by manipulation of
buyer behavior: 4P’s, STP(*), PLC, 4C’s (**) .
 The Transaction view (1970): Increase the number, the volume and the value
of transactions based on customer needs.
 The Relationship view (1980): Creating, developing and maintaining a
relationship (network) based on value creation and distribution by solving customer
problems.
 The New Economy view (1995): Create value on an individual basis (one-to-
one) thru solutions based on the information depth or information breadth of the
products/services content. (*) Segment, Target, Position
(**) Customer Value, Cost to Customer, Convenience, Communication
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Push products / services
by manipulation:
4 P’s / 4C’s
STP
PLC
Active seller / Passive Customer
Atomistic market
Relationship based
Value Creation = problem solving
Product use
Process addes value
Transformation process
Trust / credibility/ reputation
Growth = problem solving
= Performance/ Commitment/
Trust/ Loyalty
Not applicable in
Business Markets
Consumer vs Business marketing
CONSUMER MARKETING
(CLASSIC 1960)
BUSINESS MARKETING
(1980)
(*) Segment, Target, Position
(**) Customer Value, Cost to Customer, Convenience, Communication
116

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

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

Sales evolution
Strategic
Solutions
Commodities
Transaction
selling
System
Selling
Strategic Selling
Consultative Selling
Technology
Enabled Selling
Technology Based
Selling
Traditional
Sales
119

Concepts behind
Marketing?
Strategy?
Strategic Account
Management ? Sales?
Key Account
Management?
120

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

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

 Concepts & Definitions
123

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

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

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

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

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

129

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

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

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

Current views on Account Management
 Confusion on account management is due to non recognition of 3 different
processes
Process Focus Local
Regional
National
Inter
national
Global
Key Account
Selling
Sales Management
Key Account
Management
Relationship
Management
Strategic Account
Management
Strategic
Management
Complexity
133

Implications of
 Selection of Strategic Accounts: Portfolio/Resources
 Business Development Process: Proactive
 Strategic Process: Competitive advantage
 Competences of Strategic Account Manager and Organisation: Competence
driven
 Organizational impact: Change Management
 Interaction with other functional departements: Competence Building and
Leverage.
Strategic Account Management is about creating a customer driven
organization
134

135

Characteristics of the process
 Selection of Strategic accounts
 Process & Resource allocation
 Competence
 Advanced Research
136

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

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

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

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

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

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

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

Positioning of Strategic Account Management
Positioning Model of Gosselin & Heene (2000)
Key Accounts Strategic Accounts
Transactional
Customers
Captive Customers
Relationship willingness
(Customer)
Competence
Leverage
Willingness
(Supplier)
H
HL
L
Not stable:
Invest in specific
solutions
or manage
for profit
Invest in
relationship
or reduce
investments
144

Characteristics of the process
 Selection of Strategic accounts
 Process & Resource allocation
 Competence
 Advanced Research
145

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

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

MASS TRAINING
NEGOTIATION SKILLS
Makhzani Co. Ltd
148

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

Content
What is Negotiation?
Negotiating with Prospects and
Customers
Negotiation Strategies
Communication Skills
150

What is
Negotiation?
151

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

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

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

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

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

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

Negotiating with
Prospects and
Customers
158

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

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

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

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

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

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

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

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

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

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

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

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

Negotiation
Strategies
171

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

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

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

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

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

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

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

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

MASS TRAINING
Communication Skills
Makhzani Co. Ltd
180

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

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

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

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

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

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

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

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

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

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

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