Sellingskillstraining

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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 ?

What Is Selling ?*
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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.

Philosophy Of Selling 10
selling = motivating customer’s commitment
Sales Rep customer
All good reasons why a

customer should buy / All the things that a
use your product 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

Rewards of being a professional 23
salesperson: BROS
 Freedom (own boss)

 Job variety
 Challenge
 Tangible accomplishments
 Recognition/awards
 Financial compensation

Rewards of being a professional 24
salesperson: BROS
 Opportunities for advancement

 On ‘cutting’ edge
 Personal relationships
 Satisfaction from helping others
 Job security
 Entertaining customers
 Travel

Negative aspects of being a professional 25
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
 Theconcept 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
Benefits Features
 Advantages or personal
satisfaction a customer will get
 A physical characteristic or
from a good or service; features quality of a good or service;
that have been made into what is it’s intended use?
customer benefits are selling
points.

MASS Training
PART 2
Call Planning Process
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Customer Buying Decisions
 Salespeoplemust study what motivates

customers to buy and what decisions
customers make before finally purchasing a
product.

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Rationale Motives Emotional Motives
 social approval
 product dependability
 recognition
 time or monetary savings
 power
 convenience
 love
 comfort  affection
 recreational value  prestige

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
MASS Training Copyrighted Makhzani Marketing Dep. 36

MASS Training Copyrighted Makhzani Marketing Dep. 37
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Pre Call Planning .I

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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 changed i.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.
Customer data cont. 44
4-General Profile
 Best time for visit
 Working hour
 Address
 Phone number
 Personal data and preferences

Selling process The “Buyer” Become a… 45
Prospecting Lead
Collecting pre-call information
Making the approach
Discovering needs Prospect
Making the presentation
Responding to objections
Customer
Obtaining commitment
Follow up
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Prospect 48
Need Ability

Need, Want and Demand
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Maslow's Hierarchy of Needs

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MASS Training
PART 3
The Basic Selling Steps

The 7 Basic Selling Steps 52
1. Pre call
2. Opening 3. Questioning 4. Presentation
planning
7. Post call 5. Handling

6. Closing
analysis objections

• Identifying the right
1. Pre call customers

planning Targeting
• Review last call

Call preparation • Objective selling: S.M.A.R.T = Specific,
Measurable, Achievable, Realistic, Time
bound
 • Plan the call: objectives, promotional
Projecting the right materials, sequence of detailing
company image
• Posture, Facial
Expressions, 
customeressing Utilize waiting time
& Grooming
• Observing

Opening is the skill of capturing the customer’s attention and focusing

2. Opening
the sales call.
• Greeting
• Rapport building
Steps of opening: • Purpose of call
• Initiating business discussion
• Need/Benefit opening:
• Identify a known or presumed need
Types of opening: • Offer a product feature & benefit to satisfy that
need.
• Opening as a question
• Stimulating opening

• Questioning is used for the purpose of gaining information to use in the

3. Questioning
sales call.
• Start with open questions and then move to close questions.
Open Questioning: • Invites an extended customer response

• Start with What, When, Why, Where, Who & How
Closed Questioning: • 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 • 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 is presented in the form of a statement

Benefit Tag Questioning: supported by a Feature and followed by a Closed
Question
Tag On Questioning:
• Tag on questions are used when customer makes a
positive statement which you want to reinforce.

4. Presentation Presentation is zeroing on the customer’s identified Needs/Wants with

appropriate Product Features and Benefits.
• 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
During Presentation: 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

5. Handling • Can be question, comment or query.
objections • Shows interest of the customer in your product.
• An incorrect negative perception because of

Misunderstanding: misinformation.
• To handle this provide the right information.
Skepticism: • A customer’s doubt that your product can actually

deliver the stated benefit.
• Offer proof (clinical studies, references)
• A real short coming or disadvantage of your product.

Real Objection: • To handle real objection, minimize the impact by focusing
on the advantages.
5. Handling • Can be question or query.
objections • Shows interest of the customer in your product.
• customer is not interested in your product because

customer is satisfied with competitor’s product or
customer has never used that type of product.
Indifference: • Identify a need that can not be satisfied by the
customer’s preferred product.
• customer does not openly raise an objection because

Hidden Objection:
the customer is disinterested.
• How to handle: Ask customer if they have concerns.

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The 7 Basic Selling Steps
6. Closing Real success of a sales call depends on the use of effective closing.
After Review all the benefits accepted by the customer •

Presentation: Ask for business (trial use, continued use, expanded use) •
Wait for a response. •
7. Post call analysis Post call analysis is the process of evaluating and recording the outcome of
the call, in order to plan for future calls.
After Evaluate the Call •

leaving the chamber: Record Call Information •
Set Objectives for next meeting with the customer. •

Asking Questions 62
 Questions are used to PROBE information from customers

 Questions starting with
WHAT
WHERE
WHY
HOW
WHO
WHICH
are very useful

Funnel Technique 63
a powerful tool to Encourage the Flow of Conversation
1) motivate the customer to talk.
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2) open with neutral questions to
get unbiased information.
4) ask closed questions to 3
pinpoint precise requirement.
5) summarize to gain
3) ask lead questions to explore
customer’s acceptance of
5 more deeply.
requirements.

DAPA Method Of Selling 64
D efine the customer’s requirement for your product.
A cceptance by the customer of the requirements.
P rove that your product can fulfil the customer’s requirement.
A cceptance of the proof by the customer.

Significance of DAPA 65
D efine the customer's requirement for your product

sales rep: asks open active questions
customer : LISTENS and ANSWERS accordingly
A cceptance by the customer of the requirements

customer : ANSWERS and gives acceptance
sales rep : does active listening and makes notes
P rove that your product can fulfil the customer’s requirement

sales rep : offers the product (or service)
customer : does active listening and if things are not clear, asks questions
A cceptance of the proof by the customer

sales rep : does relevant answering
customer : accepts the product as his/her need

*Presenting the Benefits 66
NEED
what the customer

wants?
what the customer

gains?
FEATURE/
BENEFIT
OFFERING
what do we offer?
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Famous Quote

*Handling Objections 68
Objection – An Obstacle Or An Opportunity
When Do Objections come?
 When D to A from DAPA is not done

 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

How do we tend to feel?
 Dejected  Frustrated
 Angry
 Defensive
Challenging

How Should We React?
Don’t get aggressive.

 Pause
 Stay calm. Do not disturb the customer.

Let him/her speak first.
 Don’t get defensive

*Kinds Of Objections 71
 Unspoken Objection
 Objection that we hear and

cannot answer
 Objection that we hear and can

answer

*Handling the unspoken 72
objection
 customer frowns
 customer looks elsewhere
 customer smiles
(sarcastic)

*Handling the unspoken 73
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?

*Handling the objections we hear and can
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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)?

*Handling the objections we hear and can
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answer
When you hear an Objection:
probe gently
 Give your best possible solution?
 Are you satisfied with my answer?

*Handling the objections we hear and 76
cannot answer
Features we offer but Product Features the customer

customer does not need features that wants, but we do not
meet the have
Find Out: customer’s
needs Find Out:
 Why the customer may not
need it?  Why does the customer want it?
 How long will the customer  How important is it?

not need it? 1) Essential 2) Desirable
3) Useful
 Will the customer ever need
it in future?  Can we explore an alternative?

*Selling The Price Effectively 77
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.

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
YOU
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
Selling The Price Effectively* 80
SANDWICH METHOD

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

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

*Closing The Sale 83
What prevents a sales rep from closing EFFECTIVELY?
FEAR
UNCERTAINTY
DOUBT

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

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

*Checklist Steps to be followed?
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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.

*Checklist Steps to be followed?
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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?

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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?

Buyers want the salesperson to 92
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.”
MASS “The
Adapted from Jim Organ, Training Copyrighted
Best Reps WillMakhzani
TakeMarketing
on theirDep.
Bosses for You,” Purchasing, November 7, 1996,
pp. 50-52.
Knowledge makes it easier 93
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

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Social Style Matrix
Analytical Driver
Amiable Expressive

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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)
Driver
Amiable Expressive

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Analytical Driver
Amiable
Office has friendly, open atmosphere
Pictures of family displayed Expressive
Personal mementos on the wall
Desk placed for open contact with people
Casual or flamboyant dress
Likes solitary activities (e.g., reading, individual
sports)

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Analytical Driver
Expressive
Motivational slogan on the wall
Office has friendly, open atmosphere
Amiable Cluttered, unorganized desk
Desk placed for open contact with people
Casual or flamboyant dress
Likes group activities (e.g., politics, team sports)

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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
Amiable Expressive

Social Style Matrix: 100
Customer Expectations
Analytical Driver
Atmosphere: Open, honest Atmosphere: Businesslike
Interview Pace: Deliberate Interview Pace: Quick
Information provided: Evidence of Information provided: Salesperson’s
salesperson’s expertise in solving qualifications; value of product
problems
Amiable Expressive
Atmosphere: Businesslike Atmosphere: Open, friendly
Interview Pace: Deliberate Interview Pace: Quick
Information provided: Evidence that Information provided:
salesperson is trustworthy, friendly What salesperson thinks; whom s/he
knows
Analytical Driver
Salesperson should provide: Salesperson should provide:
Evidence that salesperson has analyzed Documented evidence, stress results
the situation Presentation of benefits:
Presentation of benefits: What product can do
How product can solve the problem
Amiable Expressive
Salesperson should provide: Salesperson should provide:
Evidence that salesperson is Recognition and approval
trustworthy, friendly Presentation of benefits:
Presentation of benefits: Who has used this product
Why product is best to solve problem
Analytical Driver
Assistance to aid decision-making: Assistance to aid decision-making:
Evidence and offers of service Explanation of options and probabilities
Amiable Expressive
Assistance to aid decision-making: Assistance to aid decision-making:
Guarantees and assurances Testimonials

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Indicators of Versatility
Less Versatile More Versatile

Limited ability to adapt to other’s Able to adapt to other’s needs
needs Generalist
Specialist Broad interests
Well-defined interests Negotiates issues
Sticks to principles Unpredictable
Predictable Looks at many sides of an issue
Looks at one side of an issue

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Adaptive Behaviors
Less Adaptive More Adaptive

“I’ll tell you how it should be “Let’s discuss it.”
done.” “I see your point. We’ll do it your
“I’m right.” way.”
“It’s always been done this way.” “I’m always looking for new
“You’re wrong.” ideas.”
“Take me or leave me.” “I want to understand.”
“How can I accommodate you?”

6-104
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Adaptive Behaviors
Reducing Assertiveness Increasing Assertiveness

Ask for customer’s opinion Get to the point
Acknowledge merits of customer’s Don’t be vague or ambiguous
viewpoint Volunteer information
Listen without interruption Be willing to disagree
Be more deliberate; don’t rush Take a stand
Let customer direct flow of conversation Initiate conversations

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Adaptive Behaviors
Reducing Responsiveness Increasing Responsiveness

Become businesslike Verbalize feelings
Talk less Express enthusiasm
Restrain enthusiasm Pay personal compliments
Make decisions based on facts Spend time on relationships rather than
Stop and think business
Socialize, engage in small talk
Use nonverbal communication

Strengths and Weaknesses
Analytical Driver
Strengths: Strengths:
Industrious, persistent, serious, exacting, Strong-willed, independent, practical,
orderly. decisive, efficient
Weaknesses: Weaknesses:
Critical, indecisive, stuffy, picky, Pushy, severe, tough, dominating, harsh
moralistic
Amiable Expressive
Strengths: Strengths:
Supportive, respectful, willing, Enthusiastic, ambitious, stimulating,
dependable, agreeable dramatic, friendly
Weaknesses: Weaknesses:
Conforming, unsure, pliable, dependent, Manipulative, undisciplined, egotistical,
awkward
MASS Training Copyrighted Makhzani Marketing Dep. excitable, reacting
6-107
108
MASS TRAINING
(Key) Account Management
Makhzani Co. Ltd
109
Agenda
 The theory
 The practice
 Useful tools

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Agenda
 The theory – (based on research by Prof. Derrick-Philip Gosselin)

 The practice – (case from the Telecom world)
 Useful tools – (Key Account Plan)

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The Theory : Content
Concepts & Definitions
 Different types of Account Management
 Definition of Strategic Account Management
 Strategic Account Management Process

Concepts behind 112
Strategic Account Management
Marketing?
Strategic Account
Strategy? Management ? Sales?
Key Account
Management?
Concepts behind 113
Marketing?
Strategic Account
Key Account
Management?
Strategic concept ?
114
LUCK
value
CREATION
Perception
Opportunities in REPEATABLE
ways
Development
value
DISTRIBUTION
Adapted model from Prof. Aimé Heene: © 2000 Prof.Dr. A. Heene TIMING

Marketing concept? 115
 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. MASS Training Copyrighted Makhzani Marketing Dep. (*) Segment, Target, Position
(**) Customer Value, Cost to Customer, Convenience, Communication
Consumer vs Business marketing 116
CONSUMER MARKETING BUSINESS MARKETING

(CLASSIC 1960) (1980)
Push products / services

Relationship based
by manipulation:
Value Creation = problem solving
4 P’s / 4C’s 
Product use
STP
Process addes value
PLC 
Transformation process
Active seller / Passive Customer
Trust / credibility/ reputation
Atomistic market
Not applicable in Growth = problem solving

Business Markets = Performance/ Commitment/
Trust/ Loyalty
MASS Training Copyrighted Makhzani Marketing Dep. (*) Segment, Target, Position
(**) Customer Value, Cost to Customer, Convenience, Communication
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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

Sales concept ? 118
 Sales = The process to create a transaction.

 The Type of sales process depends on the type of transaction.
Types of sales processes

 Individual, territory
Transactional sales
 Find, call, present, sell, follow up
 Team based project (temporarily)
System sales
 Sell system: product+services+integration
 Dedicated cross functional sales force for one customer

Major account sales  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) MASS Training Copyrighted Makhzani Marketing Dep.
Sales evolution 119
Strategic
Strategic Selling Solutions
Consultative Selling
System Traditional Transaction

Selling Sales selling
Technology
Enabled Selling
Technology Based
Commodities Selling

Concepts behind 120
Marketing?
Strategic Account
Key Account
Management?

The Key Account Management 121
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.

The Key Account Management 122
Concept: Current situation (2)
 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 Theory : Content 123
 Concepts & Definitions

Definition of Key Account Management (2) 124
 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.

Why was Key account 125
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.

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

Why will It become 127
more important?
5 Trends
Less but more
important
customers
More competition
More complexity
More concentration thru M&A Less but more
More central purchasing important
suppliers
More outsourcing of services
Elimination of low value activities
Account management
is an efficient and effective
process to implement
Current view on 128
Key Account Managemen
Geography
Global
International
Regional/National
Local
Sales
Focus
Relationship Driven Supplier Customer
Marketing Driven
Strategy
Driven current views on “Key Accounts” are mainly Local or International
Approach oriented, Supplier Focused and have a Sales or Relationship Approach.
MASS
© Training
Gosselin, Copyrighted
Heene, 2000 Makhzani Marketing Dep.
129
The Theory : Content

Definition of a Strategic Account 130
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.
Gosselin, Heene 2000
S Strategic
Existing Accounts
Customers
NS =
SUPPLIER
S Important/Key
Potential
Accounts
Customers
NS +
Important/Key
S NS S NS
Suppliers
Existing Potential
Suppliers Supplier
S: Strategic
CUSTOMER
NS: Non Strategic
Source: D-P Gosselin, 2002
Definition of Strategic 131
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

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 Static/ Supplier

Performance Defensive Short Term Sales
Selling driven
Key Account Coordination/Rel Static/ Mid Term

Offensive
Management ational Supplier driven Marketing
Strategic Account Competitive Dynamic/ Long Term

Proactive
Management Advantage Interactive Strategic

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

Management Management
Complexity

Implications of 134
 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
The Theory : Content 135

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

Account Relationship 137
Development Model
Complex Account Relationship Development
Model of Millman & Wilson (1994) Synergetic AM
Partnership AM
Level of
Involvement
with the
customer Mid-AM
Early AM
Simple
Transaction Systems/Solutions
Nature of the customer Relationship
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
"Quasi-integration" Selling
Selling company now one Selling company is now in Relationship disintegrates or
Product need company and buying company
Transactions commence of a few "preferred partnership with buying product fails to keep up with
established together deliver value to the end
suppliers" company the market
customer
Buying Company Key account manager / Operational staff get to

Focus teams at all interfaces
scrutinize price and key contact relationship know their opposite Contacts at all levels
between supplier and customer
other terms strengthens numbers
Key account manager's Key account manager Key account manager Key account manager looks Key account manager looks for
focus is to establish working to increase working to establish for opportunities for process opportunities for process
relationship volume of business distinctive business advantage advantage
Source: Prof. Malcom McDonald, Cranfield 1999, Millman & Wilson 1994
Strategic selection 139
Complex • Not all customers have same value

• Volume is not the selection criteria Partnership
• The more complex the product and the more Joint Relation
complex the customer, the more chance there
is to build a partnership and create value
Customer
Relationship
Complexity
Opportunistic
Simple Price Driven
Transaction Systems/Solutions
Product/Service Complexity
140
Strategic selection
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 141
Model of Whitney
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
Source: J. Withney, 1996,

HBR
142
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?
Do the supplier and customer have and do they agree on a common strategy
Strategic Fit
for the long term?
Symbiosis Does the customer, value a long term relationship?
Do we want to be seen as a partner with this customer? Do we put enough
Sustainable
resources to get him?

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

Positioning of Strategic Account Management 144
Positioning Model of Gosselin & Heene (2000)
Invest in H
relationship
or reduce
investments
Key Accounts Strategic Accounts
Competence Not stable:

Leverage Invest in specific
Willingness solutions
Transactional or manage
(Supplier) Captive Customers
Customers for profit
L
L Relationship willingness H
(Customer)
145
Characteristics of the process
 Selection of Strategic accounts
 Process & Resource allocation
 Competence
 Advanced Research

146
The Principles of
Account Management Process
Building Long-term Relations

Winning
and
Developing Consistent Products/Services keeping
Strategic
Providing a Network Organization Customers
Source: Senn & Zeier 2000

Where do successful 147
Companies perform better?
High Low
Performers Performers
Account Management Processes
(Avg. Performance) (Avg. Performance)
Building Long-term Relations 65 % 40 %
Developing Consistent Products & Services 68 % 42 %
Providing a Network Organization 69 % 46 %
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%
• MASS Training
Results based on supplier performance resp. customer satisfaction Copyrighted
ratings Makhzani
by their key accountsMarketing Dep.
148
MASS TRAINING
NEGOTIATION SKILLS
Makhzani Co. Ltd
149
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.

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

151
What is
Negotiation?

152
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.
153
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

154
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?
155
Because of Customer Attitudes
 A customer’s attitude toward your product or service generally falls into one of four categories.....
 Objection
 Indifference
 Skepticism
 Acceptance

156
Customer Attitudes
Indifference: Skepticism : Customer

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

157
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.

158
Negotiating with
Prospects and
Customers

159
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?

160
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

161
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.

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

During negotiation...
 Use open ended questions to confirm your  Listen

understanding of their needs.
 Be prepared for tactical responses from  Be prepared to make slight adjustments for
prospects and customers – such as exclamations your prospect if possible eg. Adjust the
after you explain the terms of your service (eh, product/service offering, loan payment terms
aba! etc) or silence – don’t react and instead etc.
respond with more questions
 Try to identify small things you have both

 Don’t rush to fill pauses with more talk – be
agreed on to help develop positive momentum
comfortable with moments of silence
– summarize these agreements periodically

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

165
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
166
 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

167
• 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.

168
 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?
169
Negotiation outcomes
PROSPECT
Win Lose
Win Both the prospect and the sales person are The salesperson is satisfied with the sale but
satisfied with the terms of the sale and a good the prospect is not. He may even feel
SALES PERSON
business relationship develops manipulated or taken advantage of. The

business relationship is in trouble
Lose The prospect is satisfied with the sale but the Both parties are dissatisfied with the sale
sales person feels manipulated and may thus the bond of trust between them may
reciprocate in future negotiations or reduce be so damaged that they are unlikely to
customer service. The business relationship is in enter into any future business relationship.
trouble.
170
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.

171
Negotiation
Strategies

172
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.

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

product/service on your listing.

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

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

176
Strategy Approach
Limited Authority Akosua says, ‘those two people you are

referring to took huge loans and so were
Limited authority is an attempt to postpone given the opportunity to negotiate their
the decision on a pretext to get approval terms of payment’ . But she indicates that
from a competent authority. Whereas the she will speak to her boss about it.
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.
177
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
Based on your experience
approach while other member is friendly and easy to
on the field, how would you
deal with. act out the good guy/bad
When bad guy steps out for a few minutes, the good guy strategy to your favour?
guy offers the deal that under the circumstances
seems too good to refuse. Bad guys usually comprise
spouses, lawyers etc.

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

179
 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.

180
MASS TRAINING
Communication Skills
Makhzani Co. Ltd
181
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
182
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.

183
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.
184
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.

185
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.

186
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.

187
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.

Non-verbal Communication 188
Feelings and emotions

received from others
through their body actions
Symbolic Vibes
Paralanguage Kinesics
How something is said instead of what

is said i.e. volume, rate and rhythm, Facial expressions, body gestures, dress
silent pauses, sighs etc. etc.

189
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

190
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?

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1

 Basic selling skills

MASS Training Copyrighted Makhzani Marketing Dep.

You will never get a 2nd chance to make a 1st impression

MASS Training Copyrighted Makhzani Marketing Dep.

 To Create an Outstanding Success for Our Brands

 Understand in depth, the role of Sales Team

 Develop a Framework for an Effective Sales Approach

MASS Training Copyrighted Makhzani Marketing Dep.

 What a salesperson does ?

MASS Training Copyrighted Makhzani Marketing Dep.

To satisfy a Need / Want with your product for Mutual Benefits. 

To Identify / Generate / Influence a Need / Want. 

MASS Training Copyrighted Makhzani Marketing Dep.

 “The process of:

Manning and Reece

MASS Training Copyrighted Makhzani Marketing Dep.

 Facilitates the transfer of goods & services

MASS Training Copyrighted Makhzani Marketing Dep.

 Is customer (vs. product) driven. (Customer centricity)

MASS Training Copyrighted Makhzani Marketing Dep.

selling = motivating customer’s commitment

Sales Rep customer

All good reasons why a

MASS Training Copyrighted Makhzani Marketing Dep.

MASS Training Copyrighted Makhzani Marketing Dep.

 Selling is problem solving

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 Focus on customer needs

1. Empathy = the ability to sense what the customer is feeling.

Harvard Business Review

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 Scientific skills, even though it is not an ‘exact’ science

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 What do salespeople do?

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MASS Training Copyrighted Makhzani Marketing Dep.

MASS Training Copyrighted Makhzani Marketing Dep.

MASS Training Copyrighted Makhzani Marketing Dep.

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 Freedom (own boss)

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 Opportunities for advancement

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 Long hours (physically exhausting)

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 Business to Business – may take place in a manufacturers showroom (inside sales) or in

 Telemarketing – selling over the phone

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 Theconcept that a salesperson needs to

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 Salespeoplemust study what motivates

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Rationale Motives Emotional Motives

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Extensive Decision Making

 Used when little or no

Limited Decision Making

 Used when a person buys

Routine Decision Making

 Used when a person needs little