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Management
Partnership
Strategies
Persuasion
Marketing concepts
1)
2)
3)
4)
5)
Production concept
Product concept
Selling concept
Marketing concept
Societal concept
Sales
Production
(Sales Orientation)
Customer
Needs
Producti
on
Emphasis
on Sellers
(Marketing Orientation)
Needs
Custome
rs
Sales
Emphasis
on
Customer
Needs
Types of selling
Order taker sales people
Order creators
Order getters
Types of Selling
Inside Order
Taker
Order
Takers
Delivery Sales
People
Outside Order
Takers
Selling
Functio
n
Order
Creators
Missionary
Sales People
Front Line
Sales
People
Order
Getters
New
Business
Sales
People
Organization
al
Sales People
Consumer
Sales People
Sales
Support
Sales
people
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Technical
Support sales
People
Merchandisers
9
Foc
us
Factor
y
Mean
s
End
s
Selling and
promotin
g
Profits
though
sales
volume
Selling concept
Market
Customer
needs
Coordinate
d
marketi
ng
Profits through
customer
satisfaction
Market concept
10
MARKET ANTICIPATION
Marketing mix
Producer
Marketer
Product
Price
Consumer
Place
Promotion
11
12
Technology
Customer
orientation
Emerging
trends in
sales
management
Technolo
Relationship
selling
gy
Global and
ethical
Issues
Diversity
New selling
methods
13
14
9
8
7
6
5
4
3
2
I am customers friend,
9
15
Selling situations
Sales task and function
Maintenance selling
Developmental selling
16
Selling skills
Effective
communicatio
n skills
Problem
solving
skills
Selling Skills
Listening
Skills
Negotiation
and
bargaining
skills
Conflict
management and
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resolution
skills
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17
Communication process
Intended
Message
Encoding
Feedbac
k
Noise
Sent Message
Sender
Chann
el
Perceived
Message
Decodin
g
Received
Message
Receiver
18
Communication process
contd.
19
Process of listening
Attendan
ce
Interpretat
ion
Remembra
nce
Evaluatio
ns
Response
Action
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20
Levels of listening
Feedback
Paraphrasing
Clarifications
Emphatic
listening
Active Listening
Barriers to Listening !
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21
Conflict management
skills
Models of conflict
Components of conflict
The conflict resolution process:
- lumping
- avoidance
- coercion
- meditation
- conciliation
- arbitration
- adjudication
- negotiation
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22
Stage II
Stage III
Stage IV
Stage V
Potential
opposition
or
Incompatibil
ity
Cognition &
Intentions
Behaviou
r
Outcome
s
Antecedent
Conditions
Communicati
on
Personal
Variables
Structure
Personalizat
ion
Perceive
d Conflict
Conflict
handling
Intentions
Competing
Felt
Conflict
Collaboration
Compromisin
g
Avoiding
Overt
Conflict
Partys
behaviour
Others
reaction
Increased
group
performan
ce
Decreased
group
performan
ce
23
Negotiation skills
Situation and timing for negotiations
Formulation for a bargaining
strategy
The theory and strategy of principle
negotiations
-
24
Habit I: be proactive
Habit 2: begin with an end in mind
Habit 3: put first things first
Habit 4: think winwin
Habit 5: seek first to understand,
then to
be understood
Habit 6: synergize
Habit 7: renewal
25
26
Problem definition
techniques
Statement
and
Restatem
ent5
Dunkers
diagram 4
Present
desired
state
analysis
3
Problem
Definition
Techniques
Evaluate
problem
statemen6
t
Explore the
2 problem
27
Dunkers diagram
Achieve the desired state
General Solution
Possible path to the desired state
Path 1
Path 2
Path 3
Functional Solution
Solution 1
Solution 2
Solution 3
Specific Solution
28
ss
e
M
Relax
Constraints
Perceived problems
Make an
Opposite
Statement
Re Statement
Generali
ze
Re Statement
29
Potential problem
Problem analysis
Analysis
Past
Decision analysis
Future
What is the fault
How to prevent future
faults?
30
Approval
Planning
Carry through
Follow up
Evaluation
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I
M
P
L
E
M
E
N
T
A
T
I
O
N
31
32
Pre-sale
preparati
on
Follow up
action
Prospecti
ng
Closing
the Sale
Preapproach
before
the
interview
Approach
to the
customer
Handling
Customer
Objection
s
Sales
Presentat
ion
33
Prospecting
Successful prospecting
50 potential prospects
50 potential prospects
15 Qualified prospects
25 Qualified prospects
6 Interviews
17 Interviews
1 sale
7 sales
No
Yes
Successful prospecting
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34
Process of prospecting
Identify and define prospects
35
Methods of prospecting
Cold canvassing
36
Selling process
Pre approach to selling
Approach to the customer
Sales presentation
- approach to sales
presentation
- attracting customer attention
- creating interest
- arousing desire and building conviction
- canned presentation
- organized presentation
- tailored presentation
37
38
39
40
Sales Organization
41
Sales organization
an organization of individuals either working together
for the marketing of products and services manufactured
by an enterprise or for products that are procured by the
firm for the purpose of reselling
42
Sales organization
contd.
a structural body through which the functions of
sales management are carried out
43
External factors:
-Sales Organisation design based on Team performance
- Trend towards elimination of sales force (bazee.com)
- Market driven strategy (customer segmentation strategy) vs.
Customer driven strategy (partnership strategy)
- The speed of market change (higher decentralisation)
- Reduction in the number of vendors per buyer
- Closer customer relationships
- Changes in regulations and international practices
44
Organizational principles
Span of control
Centralisation vs. decentralisation
Unity of command
Hierarchy of authority
Stability and continuity
Coordination and integration (Marico & P &G for rural)
Homogeneity
Objectivity
Specialization
45
Organizational design
- Formal and coordinated task
- Assigning territories
- Establishing flows of communication and responsibilities
of sales groups and individuals to customers effectively
Mr. Ratnakar Shetty
Line organization
President / Owner
Mr. Chandrakant
VP (Sales)
Five sales people
46
Direct
to
Home
Regional
Distributors
Institutional
market
Direct
marketin
g
Distribut
ors
Corporate
market
Bundlin
g
Gifting
Consumer
Retaile
rs
Consumer
s
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47
Design by territory
VP Marketing
National Sales
Manager
Divisional
Manager
(East)
Divisional
Manager
(North)
Divisional
Manager
(West)
Regional Sales
Manager
Regional Sales
Manager
Regional Sales
Manager
District Sales
Manager
District Sales
Manager
District Sales
Manager
Sales Staff
(City wise)
Sales Staff
(City wise)
Sales Staff
(City wise)
48
Staff Function
Staff Function
Mrs. Chitra
Mohanty
(Advt / Sales
Promotion Mgr)
Mr. Dibya
Behera
(Sales Manager)
Mr. Chandra De
Manager
(MR)
20 Sales People
49
Design by product
President,
Marketing
50
Design by customer
President
(Marketing)
Vice President
(Marketing)
Sales Manager
Industrial
Relations
Sales Manager
Wholesalers
Sales Manager
Retail Sales
Sales People
Sales People
Sales People
51
President
Functional
Vice
President
(Production
)
Vice
President
(Marketing)
Vice
President
(HRD)
Marketing
Combined
Manager
Sales Org. DesignInternational
GeographicMarketing
Manager
India
G.M
Consumer care
G.M
International
Sales
Divisional
Manager
Soaps
Divisional
Manager
Paper
Divisional
Manager
Food
Eastern Sales
Division
Western Sales
Division
Northern Sales
Division
Customer
Europe Division
G.M
International
Sales
America
Division
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Product
Gulf Division
52
Sales Organization
Key account sales
-
focus on CRM
customer profitability and value analysis
the few accounts give incremental returns
national accounts
53
Customer
Sales
Marketing
Technical
Support
Manufacturing
54
(Numbe
(Ideal
(Length
X r of X frequenc Xof a call)
Potenti
y of calls)
al
custom
Ideal sellingers)
time available for a
(Number
of existing
people
=
customers
)
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University Press 2005, All
salesperson
rights reserved.
55
56
Sales territory
A group of present and potential customers
assigned to
an individual sales person, a group of sales
persons, a branch, a dealer, a distributor or
a marketing organization at a given period
of time.
57
Sales territory
(contd.)
Factors
influencing the
modifications
of a territory:
mergers
market
consolidation
split in
division
sales force
turnover
customer
relocations
product
life
cycle change
product
line
Modify
territorial
boundarie
s to
balance
workload
and
potential
60
Territory shapes
circle
wedge
Clover leaf
61
Opportunity
H
i
g
h
L
o
w
Opportunity
Strategy
Allocate a moderate level of
resources to maintain current
advantage.
Strong
Opportunity
Strategy
Sales territories
New Territories..?
Use of Information Technology
IT enabled services
computer programmes
simulation techniques
63
Workload capacity
No. of
custom
ers
No. of
No. of
calls / custom
annum
ers
No. of
calls /
annum
Control Unit - 1
Control unit - 2
Major
100
800
150
1200
Moderat
e
150
900
250
1500
Total
no. of
calls /
annum
(in
both
units)
Minor
4
600
2400
700
2800
Workload= No of working
days x av. no. of calls
/ day 9600
4100
5500
240 working days x 4 calls per day = 960
Required no. of sales persons = 9600 960 = 10 (for 2 control units)
65
Time / call
Calls /
annum
Hours /
annum
Total hours /
annum
Major
(250)
60 min. /
call
40
40 hrs.
10,000 (250x 40
hrs.)
Moderate
(500)
30 min. /
call
30
15 hrs.
7,500 (500 x 15
hrs.)
Minor
(800)
20 min. /
call
18
6 hrs.
4,800 (800 x 6
hrs.)
Total
22,300 hrs.
66
68
69
70
Sales quota
A quota is an expected performance
objective
A quota is a sales assignments or goal to
be
achieved in a specific period of time
It is routinely assigned to the sales units
(e.g.
A sales quota is the sales goal set for a
departments,
divisions,
and individuals)
product
line, company
division,
or sales
representative.
Sales units proceed
to reach
quotas in
It is primarily
a managerial
their
device for defining and stimulating the sales
respective domains
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effort.. Kotler
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71
Principles..contd.
Flexible to the prevailing and emerging
market
conditions
There
should be a level of definiteness in
the quota
set for a salesperson
It should be fixed either in terms of
geographic
territory, on money value, or on the basis of
A participatory quota setting procedure
units of
followed
product(s)
jointly by the sales manager and sales people
together
serves as a tool Oxford
of motivation
and leads to the
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73
rights reserved.
S M A R
T
E
I
E
T
P
E
C
I
F
I
C
A
S
U
R
A
B
L
E
T
A
I
N
A
B
L
E
A
L
I
S
T
I
C
M
E
S
P
E
C
I
F
IC
SBO
MBO in the
Sales
domain?
74
Output
Your
territory
Results
expected
Pessimistic Realistic
Optimistic Results
1. Volume per
month
2. Expenses per
month
3. Gross margin
/month
4. Market
share/month
5. Key account
coverage/ month
75
quota
sale activity
quota
combination
quota
76
77
78
persons performance index. What conclusions can you draw based on your
results?
Mr . A
Mr . B
Mr. C
Sales Quota
150,000
190,000
160,000
Actual Sales
160,000
160,000
110,000
Performance Index
107
84
69
Performance index can be calculated by dividing actual sales by quota (x 100) and
then the sales manager can draw inferences about the activity of each sales man
in this case. Mr C is under performing where as Mr A is doing well. Mr B can
improve upon as his performance index is within an acceptable limit.
Calculate the order to sales call ratio and the average size of order for the year
from the following table. Why does the salespersons performance differ?
Name No. of Calls No. Of Orders
Actual Sales
Sales/Call
Sales/Order
Mr . A
1300
350
Rs 500,000
Rs. 384.6
Rs.
1428.6
Mr. B
1400
650
Rs 560,000
Rs. 400.0
Rs.
861.5
Mr. C
1600
580
Rs. 900,000
Rs. 562.5
Rs.
1551.7
Total
4300
1580
Rs. 19,60,000
Rs.455.8
Rs.1240.5
Oxford
Press
2005,
All
The order to sales call ratio
can
be University
found out
by
dividing
the actual sales by calls
79
rights
reserved.
and actual sales by orders. The average size of the order can be found out by
80
81
Strategic position
Job qualification
analysis
Establis
Decide on the
Organizatio
h hiring
Job
description
number of people
nal
objectiv
to
hiresources of
Identify
best
characteris
es
Plannin
recruitment:
tics,
g
internal and external
company
sources
image and
Recruitme Generate database
climate,
nt
of candidates
Turnover
Evaluate candidates
Select and induce
candidates to accept
positions
Socializati
Socialize
on
Selectio
n
styles of
supervision
,
compensati
on, and
motivation
of the
company
82
level of motivation
83
way sales
job to be performed and skills & abilities needed to
perform the job.
2. Turnover Just-in-time hiring / Stock piling
3. Job Analysis
Gathering and organization of information
concerning the Tasks, Duties and Responsibilities of a
specific jobs.
84
Internal sources
- existing employees
- lateral and upward moves
- interns and cooperative students
- employee referral programmes
External sources
- industry sources
85
External sources
- networking
referrals
contd...
- web consultants
- responses to direct open advertisements
Selection procedure
- inviting application forms
- personal interviews
- reference checks
- physical examinations
- psychological tests
- intelligence
- personality
- aptitude and skills
- determination of terms of service
- appointment
- initial orientation
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86
Socialization process
Encounter stage
Settling stage
(employee mentoring)
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87
88
89
90
91
92
Training needs
Identification of specific problems
Anticipating impending and future
problems
Management requests
Interviewing and observing the
personnel on the job
Performance appraisal
Questionnaire survey
Checklist
Attitude survey
Interpersonal skill test
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93
Presentation options
94
Types of training
Cross-functional training
Team training
Creativity training
Literacy training
95
Training methods
Didactic method (lecture method)
-
Visual support
Participative
Conferences
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96
Training methods
contd..
Seminars
Discussions
Role play
Case study
Fishbowl (role reversal method)
Workshops (participative)
Sensitivity training (interpersonal
relationships)
Transaction analysis
In-tray exercises
Transcendental meditation
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97
Aim
Content
Knowledge
Proficiencies
Location
Evaluation
98
Process of socialization
Anticipatory socialization
Accommodation stage
Outcome stage
99
100
Management
judgement
Fairness
Motivation
Flexible
Competitiveness
Cost
effective
101
Compensation Level
Firms Internal factors
a) financial ability
a) prevailing compensation
policies in industry
b) Compensation policy
b) Legal conditions
c) Economic conditions
d) Promotion policy
d) Market competition
e) Job description
e) Trade union
f) Job evaluation
f) Global considerations
103
Review job
description
Implement
the plan
Establish
compensati
on
objectives
Establish
compensati
on level
Review the
entire plan for
short term/long
term
Choose
compensati
on method
Decide on
commission
or indirect
Compensati
ons &
Relate
rewards to
performanc
e&
measureme
104
nt of
105
Methods of compensation
Straight salary
Straight commission
Combination plans
i. Salary and commission
ii.Salary and bonus
iii.Salary + commission and bonus
106
Combination plans
i.Salary + commission
ii.Salary + bonus
iii.Salary + commission + bonus
107
Types of compensation
plans
Financial compensation
Non-financial compensation
108
Financial compensation
Allied methods
109
Straight Salary
Advantages
Disadvantages
a) Provides a sense of
security
f) May discourage
salespeople to offer
additional efforts for slow
moving items
112
Straight Commission
Advantages
Disadvantages
113
g) Salespeople cannot
complain for any
underpayment - linked to
performance
g) Salespersons can
divulge valuable
information of the
company to outside
sources
114
Disadvantages
e) It demands high
administrative cost
115
116
Specific
Plan
117
Introduction
A good sales management program needs
systematic control mechanism to monitor the
sales force performance and keep the costs
under control
No sales plan is effective in the absence of a
sales control mechanism.
Sales force control mechanism keeps costs
within budgeted limits but also brings discipline
to organizational processes of implementation.
Sales force control helps in budget
modifications and additional recruitment if so
required to achieve sales objectives
Organizing
Sales
Manageme
nt Process
Controlling
Coordinating
Incentives
Promotion
Higher job responsibility
Job enrichment
Negative Actions
Demotion
Withdrawal
Transfer
Termination
128
Sales Audit
It comprised a systematic process of
appraising sales objectives and policies by
aggregating individual inputs into
organizational performance
Helps in evaluating overall performance of the
organization against sales goals, objectives,
methods, procedures and sales staff
motivation
It helps in focusing on overall sales strategy
rather than on individual components of
evaluation and suggests corrective actions.
It helps in unearthing opportunities for
improvement in sales force performance
Marketing Audit
This is a systematic and objective method of studying
the total marketing efficiency of an organization.
It evaluates the marketing policies and activities of
the firm and measures the directions and levels of
growth
It evaluates long term business growth in terms of
strategy, structure and policies followed by the firm
It is called control of controls as it covers both
business and market aspects of the organization.
It helps in reviewing assumptions used in developing
strategy. It serves as an indicator for future direction
that firm plans to take.
Sales Analysis
Across Organizations
At national level
At regional level
At division level
At state level
At district level
At branch level
By Types of sales
Cash
Credit
Shipment
Order size
Product category
Market
Type of distribution channel
Size of customer order
By types of Analysis
Comparing with Sales quota
Comparing with Previous Time Period
Comparing with industry average
Comparing with Strategic Competitors
Comparing with Sales Forecast
Classify Marketing
Expenses
Transform accounting
expenses data to activity
expense groups
Develop Bases for
allocating Common
Expenses
Calculate Contribution
Margin
Finalize the Corrective
Actions Required for The
Situation
Budgetary Control
It involves sales planning, sales forecasting, sales budgeting and profit planning
Ratio Analysis
Conclusion
A good sales management program demands
systematic control mechanisms to monitor she
sales force performance and keep cost under
control
With increased competition and fragmented
market share it is imperative to control costs
and manage performance in time bound
manner
Management and control mechanisms should
be integrated with planning process for
improving overall organization performance.
137
138
Periodic
Result Oriented
Flexible
Provide directions
Encouraging
Understandable
Strategic Fitness
Realistic
Fair
Vision for
improvement
Attainable
Realistic
Quantifiable / Measurable
Comparable / analysable
141
Designing implementation
mechanisms
How salespersons achieve targets? (by
way of meeting customer satisfaction &
companys economic interests):
How quickly & accurately they apprise
the potential customers
How quickly they procure orders & fulfils
them
How precisely they can convert sales
orders to monetary benefits to the
company
142
Establishing Performance
Standards
Quantitative Performance
Standards
Qualitative Performance
Standards
143
Sales Analysis
(an integrated
process)
Profitability
Analysis
Productivity Analysis
(Effectiveness & Efficiency)
145
148
Modern Methods
a) Ranking method
b) Paired Comparison
method
d) Checklist method
(weighted / un-weighted)
149
Traditional Methods
Ranking Method:
Ranked on the level of their performance,
regardless of the type of work they perform.
Ranking arranges salespeople in terms of
best performance, next best performance
till the least performing salerperson is
reached.
Actual degree of difference in the
performance of the salespersons cannot be
ascertained.
150
3
High
5
Moderate
7
Low
9
Very
Low
Very Good
5
Good
4
Average
3
Bad
2
Very Bad
1
153
Excelle
nt (5)
Goo
d
(4)
Fair
(3)
Bad
(2)
Very
Bad (1)
Scor
e
Product
knowled
ge
0.3
1.2
Co.
knowled
ge
0.2
0.8
Selling
Skill
0.1
CRM
Skills
0.1
0.2
Motivati
on
0.1
0.2
0.3
154
Performance Standards
Very Good = > 60%
Good = 40 60%
Average = 20 - 40%
Bad = < 20%
Very bad = < 10%
It is simple to implement
and can avoid bias to a
large extent.
156
Modern Methods
Sales
Managers
Salespeo
ple
Themselves
Peers
160
Distribution channel
management - an
introduction
161
162
Discrepancies in the
process of exchange
163
Direct Distribution
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Indirect distribution
164
Distribution channel
strategy
165
Distribution channel
management
(contd.)
Distribution
channel
management
encompasses all activities dealing with the
distribution function of the firm
The distribution strategy provides guidelines
for decision making.
The distribution management function can be
viewed as happening in two phases:
a. Distribution process mapping & establishment
b.Day-to-day management of channels.
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166
Distribution channel
management
(contd.)
167
Channel Management
tasks
Design of the
channel
structure
Establishing
the channel
Distribution Channel
Strategy
Channel
Objective
Activity Finalization
Organizing the
activities
Developing Policy
Guidelines
Motivating
Channel
Members
Resolving
Conflicts
among
channel
members
Ex ante
Phase
Ex
Poste
Phase
168
C&F /Depot /
Super Stockist
(4-10%)
Stockist / Wholesaler
(8-16%)
Institution
Hospital
Retailer/ Chemist
(16-20%)
Patient
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169
170
Designing customeroriented
marketing channels
171
172
Channel Design
1)
2)
3)
4)
173
174
175
1.
Bulk-Breaking
2.
Spatial convenience
3.
Waiting time
4.
Assortment
5.
Installation support
Available
6.
7.
Consumer financing
Available
176
Channel Flows
Flow Name
Explanation
Physical
Possession
Ownership
Promotion
Negotiation
Financing
Risk taking
Ordering
Payment
177
178
179
180
Plan..
Contd.
181
182
Channel relationships
Perceptions of organizational power
Dependence
Control
Trust
Commitment
Co-operation
183
184
Channel control
Tolerance
Function
profit
earned by
channel
member
(lost
opportunitie
s)
PayOff
Function
Zoneof
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Supplier
authority
185
Tolerance
function
C
Pay off
function
Coercion
persuasion
Authority
control 186
Channel Power
Reward Power (e.g. DSA of car
finance sector)
Coercive power
Expert power
Reference power (brand power)
Legitimate power (contractual)
187
Company
policies reputation
3.
Incentive
Program
researc
h
Distributor firm
incentives
1.Channel
Oxford University Press 2005, All
Core
rights reserved.
Distributo
sales force
incentives
2. Capability
Building
188
Programs
Influence
Strategy
group
Types of Influence
Strategy
Indirect
influence
strategies
Information exchange
Information control
Modelling
Direct
Unmediated
Strategies
Recommendation
Warning
Positive normative
Negative normative.
Explanation
Channel Managers
Influence strategy types
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189
Reward and
Punishment
Strategies
Economic reward
Non-economic reward
Economic punishment
Non-economic punishment
Direct request
Personal plea
Promise
Threat and
Legalistic reference.
Direct
unweighted
strategy
Direct
Mediated
strategies
(contd.)
Influence strategy
types
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rights reserved.
190
Behaviou
r
towards
the
channel
program
+
ve
- ve
Neutr
al
Negat
ive
Reinforcement
process
Behavioural
Reinforcement
(non-economic
reward)
Moderate
rationalization
Attitude change
(Recommendation
)
Radical
rationalization
Attitude change
(Recomm./warning
/inf. exchange)
Inducement process
Behavioural change
Moderate
confrontation
Behavioural and
attitudinal change
Radical
confrontation
Behavioural and
attitudinal change
(economic reward)
191
Cognitive/
Felt
conflict
Structural
sources of
conflict
Manifest
conflict
Conflict
outcomes
Conflict
resolution
CAUSES OF CONFLICTS
Felt conflict
Negotiation
Manifest conflict
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193
Negotiation Strategies
HIGH
Accommodativ
e
Concer
n for
the
Other
s
interes
t LOW
Collaborative/proble
m solving
Compromise
Avoidance
LOW
Competitive
/aggressive
HIGH
194