Write Up on Selling & Negotiation[1] (1)

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Terminologies

SKILL

A skill is the learned capacity to carry out pre-determined results often with the minimum outlay

of time, energy, or both. Skills can often be divided into domain-General and domain-Specific

skills. For example, in the domain of work, some general skills would include time

management, teamwork, leadership, self motivation, etc., whereas domain-specific skills would

be useful only for a certain job. It usually requires certain environmental stimuli and situations

to assess the level of skill being shown and used.

KNOWLEDGE

Knowledge acquisition involves complex cognitive processes: perception, learning,

communication, association and reasoning. The term knowledge is also used to mean the

confident understanding of a subject with the ability to use it for a specific purpose if

appropriate. Knowledge applies to facts or ideas acquired by study, investigation, observation,and/or experience and represent the range of one's information and understanding of a

particular subject.

BEHAVIOUR

The actions or reactions of a person in response to external or internal stimuli. The aggregate

of the responses or reactions or movements made by a person in any situation. Certain human

behaviors result from instinct, while others must be learned.

COMPETENCE

It denotes the ability of a person to perform a specific task, action or function successfully. A

person who has specific range of skill, knowledge and ability to perform a task successfully is

recognized as competent for the said task. In other words, it denotes a state where a person

has necessary and sufficient skills, knowledge and ability (physical and mental) to perform an

assigned task successfully.

• COMPETENCE IS A FUNCTION OF SKILLS, KNOWLEDGE AND BEHAVIOUR.

• DIFFERENT STAGES OF COMPETENCE

o High on skills & High on knowledge – Consciously Competent

o High on skills & Low on knowledge – Unconsciously Competent

o High on knowledge & Low on skills – Consciously Incompetent

o Low on knowledge & Low on skills - Unconsciously Incompetent

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Superiors: Higher than another in rank, station, or authority: a superior officer. Being at a rank

above another: higher, senior.

Peer group: A person who is of equal standing with another in a group. Contemporaries of the

same status. A person who is of equal standing with another in a group. Community in which

most or all members have roughly the same characteristics such as age, class, education,merit, rank, standing, or status. All those people of about the same age, status, etc. in a

society, regarded as forming a sociological group with a homogeneous system of values.

Team mates: Team means a group organized to work together. A fellow member of a team is

referred as a team mate.

Subordinates: Under the authority or control of another. Under the power or authority of

another. Subject to or under the authority of a superior.

CUSTOMERS

A customer is someone who makes use of or receives the products or services of an individual

or organization. The word historically derives from "custom," meaning "habit"; a customer was

someone who frequented a particular shop, who made it a habit to purchase goods there, and

with whom the shopkeeper had to maintain a relationship to keep his or her "custom," meaning

expected purchases in the future. In other words, a customer is one that buys goods or

services. A customer (also known as a client, buyer, or purchaser) is usually used to refer to a

current or potential buyer or user of the products of an individual or organization, called the

supplier , seller , or vendor . This is typically through purchasing or renting goods or services.

STRATEGY

The strategy definition most commonly known today is as the art of analysing, projecting and

directing campaigns. Strategy is not planning. Strategy deals with competitive situation in an

uncontrolled environment. Planning deals with situations in a controlled environment. Strategy

is the greatest "winning tool" that man ever invented! It enables the practitioners to see clearly

the future of any encounter they undertake - whilst reacting rationally and consciously without

the need for intuition or guesswork. It is the Art of the "Conscious Mind"; the Art of the General

in the battlefield; therefore, it is: "A style of thinking; a conscious and deliberate process; an

intensive implementation system; the art of ensuring future success." Strategy, a word of

military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while

strategy is concerned with how different engagements are linked. How a battle is fought is a

matter of tactics: the terms and conditions that it is fought on and whether it should be fought at

all is a matter of strategy, which is part of the four levels of warfare: political goals or grand

strategy, strategy, operations, and tactics.

NEGOTIATION

A discussion set up or intended to produce a settlement or agreement. Mutual discussion andarrangement of the terms of a transaction or agreement. Negotiation is one of the most

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common approaches used to make decisions and manage disputes. It is also the major

building block for many other alternative dispute resolution procedures. Negotiation occurs

between spouses, parents and children, managers and staff, employers and employees,

professionals and clients, within and between organizations and between agencies and the

public. Negotiation is a problem-solving process in which two or more people voluntarily

discuss their differences and attempt to reach a joint decision on their common concerns.

SALE / SELLING

A sale is the pinnacle activity involved in the selling products or services in return for money or

other compensation. It is an act of completion of a commercial activity. The exchange of goods

or services for an amount of money or its equivalent. To exchange ownership for money or its

equivalent. The seller - the provider of the goods or services - completes a sale in response to

an acquisition or to an appropriation or to a request. There follows the passing of title (property

or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership. Ideally, a seller agrees upon a

price at which he willingly parts with ownership of or any claim upon the item.

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NEGOTIATION

• We all have negotiated on something or the other – knowingly or unknowingly. Neither

you should be ashamed of negotiation nor should you deliberately avoid it.

• You will find it extremely difficult to grow professionally if you have poor negotiation

skills. You will fail in your responsibility if you do not negotiate deals in the best interest

of your organisation.

• Through proper practice, you can improve upon your negotiation skills and become a

very effective negotiator.

• As a professional, your focus should be on negotiating win-win deals for your

organisation. Any win-lose deal is not sustainable over long-term.

NEGOTIATION - BASIC

• A process to arrive at mutually agreed ‘terms of engagement’ between two parties, e.g.

two nations, central and state governments, government and other outfits, employer

and employees, buyer and seller, family members, etc.

• Negotiation is never a one-time exercise. Need to negotiate arises each time a

roadblock surfaces.

• While the prime objective of any ‘negotiation’ exercise is to arrive at mutually agreed

terms of engagement, all negotiations may not lead to an agreement.

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• While two parties are negotiating a deal, often we see a third party playing the role of a

moderator.

• A good negotiator will always prepare himself well to face the other party proactively

during the entire process - before, during and after.

NEGOTIATION – GIVE & TAKE

• Before actual negotiation, it is important to know what you want at the end of the

exercise. It is equally important to know / assess what the other party is truly looking for.

• Before actual negotiation, it is important to know what you can give up and what you

cannot. It is equally important to know / assess what the other party can give up and

what they cannot.

• You enter into a negotiation with three bags in hand – what you can give easily, whatwill be difficult for you to give and what you must not give. Remember, the other party

will also do the same!

• During the negotiation process, for anything that you ‘GIVE’ from any of your three

bags, you must make sure that you ‘TAKE’ something from the bags of the other party.

• The challenge is in GIVING something which you can easily give by TAKING something

which the other party may find difficult to give.

• The heat is most felt when trading starts on items that both parties feel that they must

not give.

NEGOTIATION – HOW TO NAVIGATE

• Importance of creating a right environment and ambience for the negotiation process to

move forward smoothly.

• Need to listen to the other side – one mouth and two ears rule! Listening to the other

side and observing their body language will open up many relevant windows.

• It is all right to seek clarifications on things that you are not clear or you haven’t fully

understood while the other party is communicating.

• Learn to ask the right questions. Asking right questions and probing will help you in

understanding the relevant issues of the other side that will guide the dynamics of your

negotiation.

• In case the negotiation gets more complicated than what you had anticipated and you

feel the need for a moderator to carry the process forward, you should be ready with

options with people who are acceptable to you and those who are not.

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• In case you are approaching a dead-end situation, you must plan for an exit so that

both sides can come back once again with fresh perspective.

SELLING - THE BASICS

• You may have a brilliant idea, an excellent plan or a good product – if you cannot sell it

to the right people it is as good as useless!

• If you would like to grow professionally you will need to sharpen your selling skills.

• To prepare a sales pitch, it is important for you to understand what you are selling, to

whom are you selling and why are you selling. The sales pitch must vary depending

upon these three dimensions – what, whom and why.

• Sales pitch must focus on the benefits accrued to the other party if they accept your

idea, plan, product, etc. Your target audience will be more interested with the benefitsrather than your idea, plan or product. WHAT IS IN IT FOR ME?

SELLING – DIFFERENT APPROACHES

• Selling of products or services

• Selling of tangible goods and intangible goods

• Selling of consumer products and industrial products

• Selling in domestic markets and international markets

• Selling to mass market or niche market

UNDERSTANDING NEGOTIATION AND NEGOTIATION TYPES

Negotiation is a dialogue intended to resolve disputes, to produce an agreement uponcourses of action, to bargain for individual or collective advantage, or to craft outcomes tosatisfy various interests. It is the primary method of alternative dispute resolution.

Negotiation occurs in business, non-profit organizations, government branches, legalproceedings, among nations and in personal situations such as marriage, divorce,parenting, and everyday life. The study of the subject is called negotiation theory .Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, suchas diplomats, legislators or brokers.

Business negotiation is the process by which typically two or more parties come

together to try to create a mutually agreeable contractual decision. Each party will havecompeting interests and, thus, negotiations can be quite intricate and lengthy. Negotiations

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end when all parties have come to a final decision and have agreed to contractualguidelines.

Aside from the technical definition, negotiation is an intricate process that entails more than just numbers, details and information collecting. Skillful negotiation deals with every aspect

of negotiation you can think of from running in depth cost analyses to learning how to dealwith a specific party at its level and its comfort level.

For example, just like people, we all have different customs and ways we are used to doingbusiness. If a one party is used to more formal business meetings and another is not,regardless of the more casual company’s quality of business, this can directly affect themore formal business’ opinion of the former. Skillful negotiation takes such factors intoaccount.

Negotiation is the concerted effort that is placed to give your company the cutting edge itneeds for business survival, growth and empowerment. Negotiation will help your companymake the best financial and inter-company decisions possible. Negotiation is for your

company’s protection.

Negotiation is valuable time spent to make sure that profitable, cost effective relationshipsare made with other important businesses that can further promote your company’s goodname as well. The more fruitful and positive relationships your company is able to createand maintain the more positive advertisement and acknowledgement your company enjoy.Contacts like these are invaluable and help to sustain and keep your company growing andable to remain competitive.

Negotiation is not settling for anything less than getting the very best contractualagreements for your company. You believe in your company and you want it to continue togrow and thrive. You will not let your company fall prey to unwise contractual agreements.Negotiation will make sure that the best possible deals are made keeping your company’sassets safe and well protected.

Negotiation is a strategic business endeavor or tool that keeps companies from spendingtheir money unwisely or venturing into a business contract too quickly without taking thetime to really weigh the varying pro and con factors. It is a tool that will help get your company the best deals possible.

Negotiation Types

There are 2 opposite types or schools of negotiation: Integrative and Distributive

Like it or not, everybody is a negotiator. We use negotiation techniques almost every day. Wenegotiated when we were kids trading sports cards or toys. We still do it today when wenegotiate with the boss for a salary raise, or to buy bigger toys like cars or mobile phones! Itdoesn't stop there either because we also use negotiation in our personal lives. We all havesome combination of family, friends, significant other, or kids. At some level, we negotiate with

them all the time without even knowing it.

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Many people don't like to negotiate because they view it as a hassle. Even though we mightconsciously think we're avoiding the blatant negotiation process, we end up doing it withoutrealizing that's exactly what's happening. So we may as well learn how to do it well, and decidewhich of the 2 negotiation types to use.

Removing the veil, we find there are two relatively distinct types of negotiation. The 2 types areknown as distributive negotiations, and integrative negotiations. The Negotiation Experts'training courses teach both methods, as both are essential to negotiate successfully inbusiness.

Distributive Negotiations - the Fixed Pie

The term distributive means; there is a giving out; or the scattering of things. By its merenature, there is a limit or finite amount in the thing being distributed or divided amongst thepeople involved. Hence, this type of negotiation is often referred to as 'The Fixed Pie' . There isonly so much to go around, but the proportion to be distributed is limited but also variable. Howmany times has somebody shouted out, 'Who wants the last piece?' Everyone looks at each

other, then at the product, and two or more hands rush to grab it.

In the real world of negotiations, two parties face off with the goal of getting as much aspossible. The seller wants to go after the best price they can obtain, while the buyer wants topay the lowest price to achieve the best bargain. It's really just good old plain haggling, whichis not all that much different from playing a tug of war.

A distributive negotiation usually involves people who have never had a previous interactiverelationship, nor are they likely to do so again in the near future. Simple everyday exampleswould be when we're buying a car or a house. Purchasing products or services are simplebusiness examples where distributive bargaining is often employed. Remember, even friendsor business acquaintances can drive a hard bargain just as well as any stranger.

Secondly, when we are dealing with someone unknown to us, and it's a onetime onlyoccurrence, we really have no particular interest in forming a relationship with them, except for the purpose of the deal itself. We are generally less concerned with how they perceive us, or how they might regard our reputation. Ours and their interests are usually self serving.

Distributive Bargaining Basics

• Play your cards close to your chest - Give little or no information to the other side. The

less they know about our interests as to why we want to make the purchase, our preferences, or the point at which we'd decline to deal, the better our position.Expressing eagerness or need reveals a weakness which could be exploited to our disadvantage.

• The opposite is equally true - Try to pry as much information from the other side. Any

additional information that we uncover can be used as leverage to negotiate a better deal.

• The only thing you should ever tell - The only information we should ever reveal are

those alternative options, such as other sellers, which shows we are prepared to walkfrom the negotiation whenever it suits us.

• Let them make the first offer - Whatever is used as the first offer will generally act as an

anchor upon which the rest of the negotiation will revolve. Try to get the other side toset the stage from which to start.

• Be realistic - Being too greedy or too stingy will likely result in no agreement, so keep it

real.

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Integrative Negotiations - Everybody Wins Something (usually)

The word integrative means to join several parts into a whole. Conceptually, this implies some

cooperation, or a joining of forces to achieve something together. Usually involves a higher degree of trust and a forming of a relationship. Both parties want to walk away feeling they'veachieved something which has value by getting what each wants. Ideally, it is a twofoldprocess.

In the real world of business, the results often tilt in favour of one party over the other because;it's unlikely that both parties will come to the table at even strength, when they begin the talks.

Nonetheless, there are many advantages to be gained by both parties, when they take acooperative approach to mutual problem solving. The process generally involves some form or combination of making value for value concessions, in conjunction with creative problemsolving. Generally, this form of negotiation is looking down the road, to them forming a longterm relationship to create mutual gain. It is often described as the win-win scenario.

Integrative Negotiation Basics

Multiple Issues - Integrative negotiations usually entails a multitude of issues to be negotiated,unlike distributive negotiations which generally revolve around the price, or a single issue. Inintegrative negotiations, each side wants to get something of value while trading somethingwhich has a lesser value.

Sharing - To fully understand each other's situation, both parties must realistically share asmuch information as they can to understand the other's interests. You can't solve a problemwithout knowing the parameters. Cooperation is essential.

Problem Solving - Find solutions to each other's problems. If you can offer something of lesser value which gives your counterpart something which they need, and this result in yourealising your objective, then you have integrated your problems into a positive solution.

Bridge Building - More and more businesses are engaging in long term relationships.Relationships offer greater security.

Summary

We use the two types of negotiation described above all the time. Occasionally, these

two different forms of negotiation even overlap. By understanding their nature, we willbe better prepared when faced with different situations. By learning more, we canimprove both our interpersonal and professional relationships, through an increasedawareness of the negotiation process utilized in our everyday lives.

NEGOTIATION STRATEGIES

PREPARING FOR THE NEGOTIATION

• Goals: What you want to get out from the negotiation? What do you expect from theother person?

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• Trading: What you and the other person have which you can trade? What do you and

the other person have so that the other wants it? What might you both be prepared to

give away?

• Alternatives: If you do not reach an agreement with the other person, what alternatives

do you have? Are these good or bad alternatives? How much it matters if you do notreach an agreement? Will the failure to reach an agreement cut out future

opportunities? What alternatives may the other person have?

• The relationship: What is the history of relationship between the two parties? Can this

history impact the negotiation? Will there be any hidden issues that might influence

negotiation? How you will handle these?

• Expected outcomes: What outcome would people be expecting from the negotiation?

What was the outcome in the past, and what precedents have been set?

• The consequences: What are the consequences of winning or losing this negotiation byyou? What are the consequences of winning or loosing by the other person?

• Power: Who has the power in the relationship? Who controls the resources? Who

stands to lose most if agreement is not reached? What power does other person have

to deliver which you do hope for?

• Possible solutions: Based on all considerations, what possible compromises might be

there?

4 GOLDEN RULES

While you are planning a negotiation or discussing options, you will need to remember the

following four points:

1. Separate the people from the problem.

2. Focus on interests, not positions.

3. Invent options for mutual gain, i.e. work together to create options that will satisfy both

parties.

4. Insist on using objective criteria for judging a proposed solution.

SEPARATING THE PEOPLE FROM THE PROBLEM

It is extremely difficult to deal with problems without people misunderstanding each other,

getting angry or upset and taking things personally. Negotiating resolutions may be easier if

you remember the “other side” is a human being with emotions, deeply held values, a different

background and viewpoints and is, like you, somewhat unpredictable.

In negotiation, the “people problem” often causes the relationship to become entangled indiscussion of the problem. Personality differences may cause conflicts unrelated to a business

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problem. Dealing with a problem and maintaining a good working relationship need not be

conflicting goals. But, the negotiating parties must be committed and psychologically prepared

to treat the relationship and problem separately. You can be prepared by anticipating potential

“people problems” of three kinds: perception, emotion, and communication. And, remember

you have to deal with your own as well as their people problems.

FOCUS ON INTERESTS, NOT POSITIONS

Both sides will have multiple interests in a particular negotiation exercise. If you want the other

side to appreciate your interests, begin by demonstrating that you appreciate theirs. If you want

someone to listen to and understand your reasoning, give your interests and reasoning first

and your conclusions or proposals later. Be concrete but flexible. Begin your negotiation with

well thought out interests and options, but keep an open mind.

Be hard on the problem, soft on the people. Spend your aggressive energy focusing on the

problem, looking forward, not back. Two negotiators, each pushing hard for their interests,

often stimulate each other’s creativity in developing mutually advantageous solutions.

INVENT OPTIONS FOR MUTUAL GAIN

Skill at inventing options is one of the most useful assets a negotiator can have, but it does not

come naturally. Practical negotiation appears to call for practical thinking, not wild ideas. Four

obstacles often inhibit consideration of multiple options: premature judgment , searching for a

single answer , the assumption of a “fixed pie” , and thinking that “solving their problem is their

problem” . By focusing on a single best answer too early or taking sides, you are likely to short

circuit a wiser decision-making process in which you select from a large number of possible

answers.

USING OBJECTIVE CRITERIA

Using objective criteria moves the contest away from individual wills and focuses on specific,

objective decision-criterion that are mutually agreeable. It helps produce amicable and efficient

negotiations.

Objective criteria should apply at least in theory to both sides. You can use the test of

reciprocal application to tell whether a proposed criterion is fair and independent of either

party’s will.

Example: valuation report, bank comfort letter

Best Alternative to a Negotiated Agreement (BATNA):

“The reason you negotiate is to produce something better than the results you can obtain

without negotiating. What are those results? What is that alternative? What is your BATNA –

your Best Alternative To a Negotiated Agreement? That is the standard against which any

proposed agreement should be measured.” – Roger Fisher and William Ury

BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller, Getting to

Yes: Negotiating Without Giving In. It stands for "best alternative to a negotiated agreement."

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BATNAs are critical to negotiation because you cannot make a wise decision about whether to

accept a negotiated agreement unless you know what your alternatives are. Your BATNA "is

the only standard which can protect you both from accepting terms that are too unfavorable

and from rejecting terms it would be in your interest to accept."In the simplest terms, if the

proposed agreement is better than your BATNA, then you should accept it. If the agreement is

not better than your BATNA, then you should reopen negotiations. If you cannot improve theagreement, then you should at least consider withdrawing from the negotiations and pursuing

your alternative (though the costs of doing that must be considered as well).

Having a good BATNA increases your negotiating power. Therefore, it is important to improve

your BATNA whenever possible. Good negotiators know when their opponent is desperate for

an agreement. When that occurs, they will demand much more, knowing their opponent will

have to give in. If the opponent apparently has many options outside of negotiation, however,

they are likely to get many more concessions, in an effort to keep them at the negotiating table.

Thus making your BATNA as strong as possible before negotiating, and then making that

BATNA known to your opponent will strengthen your negotiating position.

BATNA also affect what William Zartman and may others have called " ripeness," the time at

which a dispute is ready or "ripe" for settlement. When parties have similar ideas or "congruent

images" about what BATNAs exist, then the negotiation is ripe for reaching agreement. Having

congruent BATNA images means that both parties have similar views of how a dispute will turn

out if they do not agree, but rather pursue their other rights-based or power-based options. In

this situation, it is often smarter for them to negotiate an agreement without continuing the

disputing process, thus saving the transaction costs. This is what happens when disputing

parties who are involved in a lawsuit settle out of court. The reason the parties settle is that

their lawyers have come to an understanding of the strength of each sides' case and how likelyeach is to prevail in court. They then can "cut to the chase," and get to the same result much

more easily and more quickly through negotiation.

On the other hand, disputants may hold "dissimilar images" about what BATNAs exist, which

can lead to a stalemate or even to intractability. For example, both sides may think they can

win a dispute if they decide to pursue it in court or through force. If both sides' BATNAs tell

them they can pursue the conflict and win, the likely result is a power contest. If one side's

BATNA is indeed much better than the other, the side with the better BATNA is likely to prevail.

If the BATNAs are about equal, however, the parties may reach a stalemate. If the conflict is

costly enough, eventually the parties may come to realize that their BATNAs were not as good

as they thought they were. Then the dispute will again be "ripe" for negotiation.

Determining Your BATNA

BATNAs are not always readily apparent. Fisher and Ury outline a simple process for

determining your BATNA:

1. Develop a list of actions you might conceivably take if no agreement is reached;2. Improve some of the more promising ideas and convert them into practical options; and

3. Select tentatively, the one option that seems best.

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BATNAs may be determined for any negotiation situation, whether it be a relatively simple task

such as finding a job or a complex problem such as a heated environmental conflict or a

protracted ethnic conflict.

Fisher and Ury offer a job search as a basic example of how to determine a BATNA. If you do

not receive an attractive job offer by the end of the month from Company X, what will you do?Inventing options is the first step to determining your BATNA. Should you take a different job?

Look in another city? Go back to school? If the offer you are waiting for is in New York, but you

had also considered Denver, then try to turn that other interest into a job offer there, too. With a

job offer on the table in Denver, you will be better equipped to assess the New York offer when

it is made. Lastly, you must choose your best alternative option in case you do not reach an

agreement with the New York company. Which of your realistic options would you really want

to pursue if you do not get the job offer in New York?

More complex situations require the consideration of a broader range of factors and

possibilities. For example, a community discovers that its water is being polluted by thedischarges of a nearby factory. Community leaders first attempt to negotiate a cleanup plan

with the company, but the business refuses to voluntarily agree on a plan of action that the

community is satisfied with. In such a case, what are the community's options for trying to

resolve this situation? They could possibly sue the business based on stipulations of the Clean

Water Act. They could contact the Environmental Protection Agency and see what sort of

authority that agency has over such a situation. They could lobby the state legislature to

develop and implement more stringent regulations on polluting factories. The community could

wage a public education campaign and inform citizens of the problem. Such education could

lead voters to support more environmentally minded candidates in the future who would

support new laws to correct problems like this one.

In weighing these various alternatives to see which is "best," the community members must

consider a variety of factors.

• Which is most affordable and feasible?

• Which will have the most impact in the shortest amount of time?

• If they succeed in closing down the plant, how many people will lose their jobs?

These types of questions must be answered for each alternative before a BATNA can be

determined in a complex environmental dispute such as this one.

BATNAs and the Other Side

At the same time you are determining your BATNA, you should also consider the alternatives

available to the other side. Sometimes they may be overly optimistic about what their options

are. The more you can learn about their options, the better prepared you will be for negotiation.

You will be able to develop a more realistic view of what the outcomes may be and what offers

are reasonable.

There are also a few things to keep in mind about revealing your BATNA to your adversary.

Although Fisher and Ury do not advise secrecy in their discussions of BATNAs, according to

12



McCarthy, "one should not reveal one's BATNA unless it is better than the other side thinks it

is." But since you may not know what the other side thinks, you could reveal more than you

should. If your BATNA turns out to be worse than the opponent thinks it is, then revealing it will

weaken your stance.

BATNAs and the Role of Third Parties

Third parties can help disputants accurately assess their BATNAs through reality testing and

costing. In reality testing, the third party helps clarify and ground each disputing party's

alternatives to agreement. S/he may do this by asking hard questions about the asserted

BATNA: "How could you do that? What would the outcome be? What would the other side do?

How do you know?" Or the third party may simply insert new information into the

discussion...illustrating that one side's assessment of its BATNA is likely incorrect. Costing is a

more general approach to the same process...it is a systematic effort to determine the costsand benefits of all options. In so doing, parties will come to understand all their alternatives. If

this is done together and the parties agree on the assessment, this provides a strong basis

upon which to come up with a negotiated solution that is better than both sides' alternatives.

But if the sides cannot come to such an agreement, then negotiations will break down, and

both parties will pursue their BATNA instead of negotiation.

Purpose of the analysis:

The purpose of the analysis is to help parties make informed decisions about possible options

for resolution or a deal. It is almost always helpful to compare possible outcomes along

alternative paths to actual proposals on the table in a negotiation before making a decision

within the negotiation. If an alternative looks highly attractive and is highly probable, a party

may choose to reject a proposal that is significantly less satisfactory. On the other hand, if

proposed options in the negotiation look reasonable or better in comparison to probable

alternative outcomes, a party may feel more comfortable accepting a proposed deal. The

analysis assists the parties in deciding if a particular resolution is in their best interests or not. It

also helps mediators to ground parties in reality and prevent impasse by focusing them on

actual possibilities rather than unformulated dreams.

In some cases, a party will reject a proposed resolution even though the probable alternatives

are clearly less attractive in a "business" sense. However, the exercise is still useful in this

instance because:

1. The parties are making their choices having considered and with full knowledge of these

probable alternative outcomes (i.e. "with their eyes wide open").

2. The exercise highlights the existence of other interests, beyond "business" sense, that are

driving the party. Knowledge of these interests may be helpful to continued negotiation. At a

minimum, parties gain clearer understanding of their interests and the value they are placing

upon them.

13



Mediators should also keep in mind that they may have different values, risk tolerance levels

and approaches to decision-making than the parties and take care to respect those

differences. Again, the purpose of the analysis is to educate and promote informed decision-

making, not to force settlement or impose the mediator's idea of what makes sense.

Conclusion:

BATNA analysis can be highly influential in case assessment and settlement. Many clients

need to consider intelligently whether a possible negotiated settlement makes sense or

whether they would prefer to pursue some other alternative that might yield better results or

involve lower costs. Mediators who can walk their clients through a carefully detailed and

organized BATNA analysis are providing a valuable service.

SELLING TO CUSTOMERS

The difference between Price & Value

• Price is what you pay to acquire a particular product or service. Value is the benefits

you get or derive out of such an acquisition.

• ‘Cheap’ always doesn’t mean ‘Good Value’. ‘Expensive’ always doesn’t mean ‘BadValue’.

• For a particular product OR service, ‘Value’ isn’t the same for everyone.

ROLE OF SALES PROFESSIONAL CHANGES WITH …….

• Type of products sold – Consumer Products (different product types within consumer

products) / Industrial Products

• Profile of the customer – existing user buying own product, existing user buying

competition product, not an existing user but having potential to use the product, etc.

• Nature of the product – existing product category / new product category, etc.

PRODUCTS

14



CONSUMER PRODUCTS (Current View)

SELLING

15



Ask yourself the following questions:

1. WHY AND HOW DOES THE ROLE OF SALES PROFESSIONALS DIFFER IN

HANDLING DIFFERENT PRODUCT TYPES?

2. SHOULD I FOCUS MORE ON SELLING A PRODUCT OR SELLING A SOLUTION TO

MY CUSTOMERS?

3. SHOULD I BE SEEN AS A SALESMAN OR A SOLUTION PROVIDER BY MY

CUSTOMERS?

4. IS THE CUSTOMER MORE INTERESTED IN BUYING MY PRODUCT OR

FULFILLING A PARTICULAR NEED OF HIS/HER THROUGH MY PRODUCT?

5. SHOULD I FOCUS MORE ON GENERATING NEW CUSTOMERS FOR MY

PRODUCTS OR RATHER CONCENTRATE ON RETAINING THE EXISTING

CUSTOMERS?

6. HOW CAN I IMPROVE CUSTOMER PREFERENCES FOR ME AS A SALES

PROFESSIONAL?

7. HOW CAN I ALWAYS REMAIN ONE-UP AGAINST MY COMPETITORS AND

MAINTAIN MY POSITION AS A ‘PARTNER-IN-PROGRESS’ WITH MY CUSTOMERS?

16



KEY ACCOUNTS MANAGEMENT

IF THESE ASSUMPTIONS ARE TRUE, THEN HOW DO WE USE THIS INFORMATION?

17

Defined Prospectsnot yet worked on

Worked onProspects not yet

buying

Buying Customers

Brick wall

MARKET PLATFORMWORKING PLATFORM

BUYING PLATFORM

UNIVERSE

The Dimensions of Platform

LEAKAGE

LEAKAGE

LEAKAGE

R0

A B C classificationof accounts



CREATING CUSTOMERS - THE SALES PROCESS

Criteria for An Effective Customer Interaction

1. Have a clearly defined objective for each call

2. Work with decision makers and Influencers. Build Internal Coaches.

3. Use questions rather than statements. Avoid making assumptions.

4. Base any presentation on the real situation as the customer sees it.

5. Prove that your product or service is of benefit to the customer.

SELLING TO YOUR SUPERIORS, PEERS AND SUBORDINATES

You have got to sell yourself, your ideas and your proposals much like you might sell a product.

The problem is that you can't really sell a product. The best salesperson in the country can't sell a

product. Nobody can. What you can sell are solutions. You uncover needs and prove value and

sell solutions to those who have those needs.

Let's say you'd like a raise. You might be able to sell the boss on the idea simply by meeting pre-

set goals and specifying exactly what you've done for him and the company since your last pay

increase. Normally bosses don't have to be told that it's in their interest to keep productive people

producing and to keep their best people happy. But sometimes they do.

And you use this same type of strategy when you're selling to a subordinate or a peer. Show the

people you're dealing with how what you're proposing will make their life or job or numbers better,

more convenient, more cost-efficient. Show what it will do for the impression others—particularly

their superiors—have of them. Provide them with reassurance, perhaps explaining how similar

plans have worked for others. In other words, prove value. Concentrate on what’s -in-it-for-them

and what’s-in-it-for-you will usually take care of itself.

One of the hardest challenges for creative people — especially those working in units such as

R&D, design, or marketing — is how to win top management's support for their ideas. Many

18



feel that their proposals are killed not because they have poor potential but because their boss

simply does not understand them or does not even listen to the presentation.

The solution to this problem is to have your boss onboard long before the idea comes up. Top

executives who successfully promote innovation hardly invest in unexpected breakthroughs.

They are actively involved upfront. A former senior manager at PortalPlayer, a contractor thathelped Apple develop the iPod, reported, "The interesting thing about the iPod is that since it

started, it had 100% of Steve Jobs time."

Therefore, avoid situations in which you have to sell an innovative idea to your boss. You might

succeed, but the outcome will depend on factors that have nothing to do with the merits of your

idea (e.g. how you presented the idea and the mood of your boss). Executives give poor

responses to cold calls — especially when it comes to breakthrough concepts that require deep

understanding and may have risky implications for the business. In such a situation, they, of

course, prefer to say "no." Instead, start the interaction with senior executives earlier in the

innovation process:

1. Get an endorsement to investigate a business challenge. For example, if you work

in the R&D department of a food company, a challenge could be coming up with new

products that are healthier and provide a better experience by eating less. It's more

likely that you will gain support for investigating such a challenge than suddenly selling

an idea for a new valuable cheese that people will buy in smaller quantities. So even if

you already have an idea for solving a problem, don't immediately pitch it.

2. Design the innovation process together. Once you have top management's support

to tackle the challenge, come to an agreement on how to come up with ideas for

tackling it.

3. Update top executives frequently. Keep feeding them information on how the

investigation is developing along the way. When you do so, don't talk about the

emerging possible solutions; instead, provide information on how you are interpreting

the challenge. In this way, executives will more easily grasp the solution once you

present it.

4. Involve top executives in the creation of the solution. By doing so you will not only

receive precious insights but also stronger support, because executives will feel they

own the idea. This implies that your boss will put his or her name on the idea.

It is not implied that if you follow these steps, the idea that you ultimately propose will or should

be accepted. You must be mentally prepared that for any new idea or proposal, the default

answer is ‘no’. But if your boss has a better understanding of your proposals, he can help you

in sailing through your company's decision-making processes and you will feel more supported

and less frustrated.

Why Your Customers Really Buy

by Tad Tuleja and Stephen E. Heiman

In this excerpt from chapter one of The New Conceptual Selling, learn why you need to stop

selling, at least in the traditional way, and find out why your customers really buy.

19



This is a book that shows you how to stop selling.

This may not strike you as exactly what you had in mind when you picked up a book with

selling in its title. But if you're a sales professional, it's almost certainly what you need. Why?

Because we are, right now, experiencing a shift in customer consciousness that is dramaticallyredefining everything we know about selling and fundamentally altering the rules of this ancient

profession. To survive in sales today, you've got to junk the old rules and take a 180-degree

turn on what you do when you "sell."

For centuries, sales success was an outgrowth of product knowledge. The great salesperson

was someone who so thoroughly understood his product (or service) that he could persuade a

person who didn't know anything about it—the ignorant buyer—that it could solve a problem

the buyer didn't even know she had. In traditional selling, product knowledge was a magic

elixir. Coupled with glibness—allegedly the sales profession's unique contribution to humaninteraction—it could turn the most recalcitrant buyer into a willing victim by enabling the

salesperson to "sell" her whether she wanted to buy or not. Hence the ultimate salesman

cliche: "He could sell iceboxes to Eskimos."

When we say this book will show you how to stop selling, this is the kind of selling we have in

mind. Call it "the art of persuasion" or "the snake oil method" or "hucksterism" or just plain

"traditional selling." By any name, it's selling according to old rules—rules that are becoming as

obsolete as snake oil itself. That's why the rules in this book are decidedly nontraditional.

If the old rules said you've got to "talk it up" until your prospect "bites," the new rules say you've

got to start by listening to the prospect. This doesn't mean your product or service is

unimportant. It means it is secondary to the customer's perception—not of you, or of your

product, but of his own situation. We refer to that perception as the customer's Concept, and

attending to the customer's Concept is the very foundation of a philosophy that might be

referred to as No-Sell Selling.

For a quick fix on No-Sell Selling, consider this story.

NO DOGS, NO PONIES

A few years ago a major manufacturer was experiencing problems with the food service

company that was managing its employee cafeterias and went shopping for a replacement. On

orders from senior management, the vice-president for operations invited the incumbent's four

major competitors to the manufacturer's Chicago headquarters. Each candidate would have

ninety minutes to present its case to a selection committee composed of finance, operations,

and employee service managers. The presentation date was one month away.

Because this multiple-site food service contract was worth several million dollars a year, all four

of the invited companies expressed strong interest. Their sales managers designated top

20



people to handle the new-account presentation and made it clear that their pitches had better

be perfect. The four individuals who were chosen—all first-rate, experienced professionals—

understood that this would be one of the most important sales calls they would ever make. So

they spared no effort in preparing.

But they didn't all prepare in the same way.

Three of the four went the sales rep's time-honored route. They crammed their heads full of

product and service specs and burned the midnight oil memorizing their companies'

capabilities. They reviewed the presentation techniques that had worked for them over the

years and prepared perfectly timed, brilliantly written pitches that made their service packages

look like offers no sane person could refuse.

The pitches all had catchy openings (for establishing "rapport"), plenty of arguments and

counterarguments (for deflecting the inevitable objections), and a copious supply of trial closes.

Not to mention the usual supporting material: Among the three of them, these candidates had

put together enough spreadsheets, statistical abstracts, overheads, diagrams, and colored

slides to keep a congressional committee in session for a year. For the three of them, it was

going to be the battle of the dog-and-pony shows.

The circus metaphor is appropriate because the idea behind such sales pitches is the same

one behind big top performances. You are the ringmaster in charge of the show, and your job

is to keep the action moving—to fend off boredom by engaging the spectators' attention at all

times. Trot out enough dancing dogs and prancing ponies, and the customer will be so dazzled

by your staging that the ink will dry on her check before she knows what hit her.

The rep sent in by the fourth candidate—we'll call him Gene—didn't buy this traditional wisdom.

A few months before the manufacturer sent out its invitations, Gene had attended one of our

two-day programs on Conceptual Selling. In those two days we had taught him a method for

managing his face-to-face sales calls that reversed everything he had done in presentations

before—and that went to the heart of the issue posed by the title of this chapter: why people

really buy. We'll be talking throughout this book about why people buy and demonstrating how

understanding your customers' decision-making process makes you a much more effective

sales professional than even the most dazzling practitioners of the dog-and-pony method.

The first step in understanding that process is to remember a seemingly simple message we

gave Gene:

People buy for their own reasons, not for yours.

The message is crucial because until you know your customers' reasons for wanting—or not

wanting—to buy, you're selling with blinders on. No matter how many reasons you may have

21



for believing your product or service is a great buy, they will mean nothing unless each

individual customer has solid reasons of his own for wanting to do business with you.

As difficult as it can be to discover those reasons, sales success depends on doing just that—

and on staying in touch with each customer's reasons when they change (as they often do)from one sales call to another. In this era of accelerated change, when even your longtime

customers face new problems every day that can radically alter the way they see your product

or service, taking a customer's views for granted, even for a minute, can spell disaster for even

the most "secure" account. That's just what had happened in the Chicago account: The

incumbent was on the way out because he had failed to keep on top of the manufacturer's

changing perception of their service needs.

Solid business begins and ends with the customer: with his or her needs, problems, and range

of reasons for buying.

Recently, much to my delight, I’ve been in front of potential customers more often. Over theyears I feel as if I’ve developed good sales instincts. Successful entrepreneurs are instinctivesalesmen. Nonetheless, I wanted to review some basic principles of conceptual selling. Let’sdo it together.

First, no one buys a product or service. The customer buys what they think the product or service will do for them. There are two tasks to conceptual selling

• Understand the customer’s concept first , of what he or she wants to accomplish

• Connect your product/service to that concept

The benefits of focusing on the customer’s concept first are:

• Allows you to learn more about your customer

• Enables you to focus on results

• You’re unlikely to be pigeonholed with the competition

• Minimizes the importance of price competition

• Positions yourself with the person who makes the final decision

• Enables you to spot early those situations that are not Win-Win

There are three phases of a sales call.

The first phase is Getting Information:

• Effective selling begins with the ability to ask good questions – why?

• Qualifies the prospect early

• Helps you understand the current situation

22



• Builds rapport

• Helps you determine the customer’s decision-making process

• Enables you to identify differences between your service and your competitors’

• Reinforces your own credibility

• Motivates and sustains your customer’s interest

The second phase is Giving information:

• Relate information about your service to his or her concept

• Relate information about your service that differentiates your offer from the competition

• Differentiation only works by pointing out Unique Strengths

The third phase is Getting commitment:

• Get some kind of commitment from the client after every sales call

• Get a higher degree of commitment as the sale moves forward

• Whenever customers refuse Commitment, it’s because they feel they’re going to lose

with you or your solution — there remains a Basic Issue

Why do salespeople talk so much?

• They feel more comfortable being in control

• They feel it’s their job to tell the prospect about their service

• Talking is what the customer wants the salesperson to do

• Talking takes less planning

• Sometimes answers to questions are hard to swallow

In the end, it must be a Win-Win scenario.

• Don’t oversell on expectations

• Don’t get suckered into a giveaway

• Hear the customer out

• When in doubt find out

• Be willing to walk

• Always give information in context of the customer’s concept

So, we’ve reviewed that to be effective on sales calls, you must be able to listen andunderstand what the customer is trying to accomplish. Then, explain how your solution fits intomaking that possible. Simple, right?

23



CONCEPTUAL SELLING

Conceptual Selling requires salespeople to first understand their customers' issues – what they are

trying to accomplish, fix or avoid – and then apply their expertise to jointly develop solutions. This

consultative approach builds credibility and trust, and solutions that are difficult for competitors to

replicate.

For centuries, sales success was an outgrowth of product knowledge. The great salesperson wassomeone who so thoroughly understood his product (or service) that he could persuade a personwho didn't know anything about it—the ignorant buyer—that it could solve a problem the buyer didn't even know she had. In traditional selling, product knowledge was a magic elixir. Coupled withglibness—allegedly the sales profession's unique contribution to human interaction—it could turnthe most recalcitrant buyer into a willing victim by enabling the salesperson to "sell" her whether shewanted to buy or not. Hence the ultimate salesman cliche: "He could sell iceboxes to Eskimos."

If the old rules said you've got to "talk it up" until your prospect "bites," the new rules say you've gotto start by listening to the prospect. This doesn't mean your product or service is unimportant. Itmeans it is secondary to the customer's perception—not of you, or of your product, but of his ownsituation. We refer to that perception as the customer's Concept, and attending to the customer'sConcept is the very foundation of a philosophy that might be referred to as No-Sell Selling.

The first step in understanding that process is to remember:

People buy for their own reasons, not for yours.

The message is crucial because until you know your customers' reasons for wanting—or notwanting—to buy, you're selling with blinders on. No matter how many reasons you may have for believing your product or service is a great buy, they will mean nothing unless each individualcustomer has solid reasons of his own for wanting to do business with you.

As difficult as it can be to discover those reasons, sales success depends on doing just that—andon staying in touch with each customer's reasons when they change (as they often do) from one

sales call to another. In this era of accelerated change, when even your longtime customers facenew problems every day that can radically alter the way they see your product or service, taking acustomer's views for granted, even for a minute, can spell disaster for even the most "secure"account.

Solid business begins and ends with the customer: with his or her needs, problems, and range of reasons for buying.

STRATEGIC SELLING

In most industries today, a handful of ideal customers have become universal targets. Nearly everyindustrial salesperson dreams of calling on the CEOs or managing directors of those top

companies, which logically means that there are maybe 500 customers for a million sellers.

With such intense competition, conventional approaches are not up to the challenge. Salespeopleneed to develop strategies that distinguish their products, services and their organizations in themind of the customer.

Making a sale has always involved an element of systematic planning, but strategic selling meansmore than rehearsing product information and timing the close. Strategic selling begins withunderstanding your company's strategy, vision and distinctiveness, and then selecting high-profilecustomers.

The next step, logically, is anticipating each stage of the buying process, from analyzing thecompetition to identifying the influencers and decision-makers and being switched in to the buyer's

political issues. In other words, there is a need for a comprehensive strategic profile and a rigorousopportunity-assessment process.

24



Most important, strategic selling means strategizing from the customer's point of view. Topachievers see strategic selling as a routine part of their work -- not a final resort.

What Are the Implications for Sales Management?

For companies to remain competitive now, their sales organization must be able to respondpositively to changing economic tides. As businesses strive to establish customer orientation, salespartnerships and a strategic approach to selling, they are demanding more and more from their salespeople -- but ensuring that these new methods are widely practiced and smoothlyimplemented falls to sales management.

Building Productivity

Sales productivity is a strategic issue. That's why problems in this area stem from salespeoplebeing unclear about their company's priorities, i.e., what their message should be and what theyshould be selling.

The trend in industry of removing layers of management between the sales force and the general

manager presents a challenge to those sales managers who remain. To begin with, the salesmanager becomes an essential link between company strategy and what takes place in thecustomer's office. He or she must not only grasp the corporate vision, but be able to communicate itto the sales force in terms of the real effects on sales practices.

Creating Direction

Sales managers with an intimate feel for the selling process succeed because their staff membersregard them as part of the sales team, but coaching the team is as important as playing in it. Inother words, sales managers must be prepared to provide training, feedback and support to everyindividual within the team.

Once committed to the training process, they must routinely reinforce new ways of behaving in realsales situations. They must provide a clear sense of direction on a daily basis, not just at themonthly sales meeting, quarterly review or annual appraisal.

The very best sales managers engage in frequent coaching and feedback, even when their salespeople work in remote locations. While encouraging salespeople to air their problems openlyand discuss their concerns, sales managers must be able to offer clear and specific feedback for improving sales performance.

Rewarding Change

The sales manager is charged with translating the company's reward system into specificimprovements in sales performance. Both salespeople and corporate managers count on the salesmanager to recognize and reward outstanding achievement, formally and informally. The process of promoting new attitudes about the customer and the role of the salesperson can be frustrating andslow. Reverting back to recent research, there is compelling evidence to suggest that companieswill see results sooner if they recognize and reward salespeople -- "You get more of the behavior and results that you reward."

The trend in sales compensation appears to be away from commission to guaranteed salary, fromcompensation based on orders to compensation based on delivery and sign-off. Interestingly, someorganizations base their "salesperson of the year" award on customer satisfaction or customer retention rather than sheer volume of orders or activity.

And Now the Good News

25



It is now a given fact in any sales-related seminar or conference you may attend that traditionalsales methods are being relegated to the annals of history. The new, more discerning customers of today have seen to that. They now wield greater bargaining power, demand more value for money,and have become more knowledgeable and professional when it comes to decision-making.

Suppliers are now faced with rising customer expectations and the need to become more flexible to

the requirements of each individual client.

Yet the key to differentiation lies within these expectations, since more complex buying decisionslead customers to value closer links with their suppliers.

BODY LANGUAGE

Body language is a form of non-verbal communication, which consists of body posture,

gestures, facial expressions, and eye movements. Humans send and interpret such signals

subconsciously.

Research has suggested that between 60 and 70 percent of all meaning is derived from

nonverbal behavior.

Body language may provide clues as to the attitude or state of mind of a person. For example,

it may indicate aggression, attentiveness, boredom, relaxed state, pleasure, amusement, and

intoxication, among many other cues.

Understanding body language

The technique of "reading" people is used frequently. For example, the idea of mirroring body

language to put people at ease is commonly used in interviews. Mirroring the body language of

someone else indicates that they are understood.

Body language signals may have a goal other than communication. Both people would keep

this in mind. Observers limit the weight they place on non-verbal cues. Signalers clarify their

signals to indicate the biological origin of their actions. Examples would include yawning(sleepiness), showing lack of interest, attempts to change the topic.

Physical expression

Physical expressions like waving, pointing, touching, etc. are all forms of nonverbal

communication. The study of body movement and expression is known as kinesics. Humans

move their bodies when communicating because, as research has shown it helps "ease the

mental effort when communication is difficult." Physical expressions reveal many things about

the person using them. For example, gestures can emphasize a point or relay a message,

posture can reveal boredom or great interest, and touch can convey encouragement or

caution.

26



• One of the most basic and powerful body-language signals is when a person crosses

his or her arms across the chest. This can indicate that a person is putting up anunconscious barrier between themselves and others. It can also indicate that theperson's arms are cold, which would be clarified by rubbing the arms or huddling. Whenthe overall situation is amicable, it can mean that a person is thinking deeply about whatis being discussed. But in a serious or confrontational situation, it can mean that aperson is expressing opposition. This is especially so if the person is leaning away fromthe speaker. A harsh or blank facial expression often indicates outright hostility.

• Consistent eye contact can indicate that a person is thinking positively of what the

speaker is saying. It can also mean that the other person doesn't trust the speaker enough to "take his eyes off" the speaker. Lack of eye contact can indicate negativity.On the other hand, individuals with anxiety disorders are often unable to make eyecontact without discomfort. Eye contact can also be a secondary and misleadinggesture because cultural norms about it vary widely. If a person is looking at you, but ismaking the arms-across-chest signal, the eye contact could be indicative thatsomething is bothering the person, and that he wants to talk about it. Or if while makingdirect eye contact, a person is fiddling with something, even while directly looking at

you, it could indicate the attention is elsewhere. Also, there are three standard areasthat a person will look which represent different states of being. If the person looks fromone eye to the other then to the forehead, it is a sign that they are taking anauthoritative position. If they move from one eye to the other then to the nose, thatsignals that they are engaging in what they consider to be a "level conversation" withneither party holding superiority. The last case is from one eye to the other and thendown to the lips. This is a strong indication of romantic feelings.

• Disbelief is often indicated by averted gaze, or by touching the ear or scratching the

chin. When a person is not being convinced by what someone is saying, the attentioninvariably wanders, and the eyes will stare away for an extended period.

•

Boredom is indicated by the head tilting to one side, or by the eyes looking straight atthe speaker but becoming slightly unfocused.

• Interest can be indicated through posture or extended eye contact, such as standing

and listening properly.

• Deceit or the act of withholding information can sometimes be indicated by touching the

face during conversation. Excessive blinking is a well-known indicator of someone whois lying. Recently, evidence has surfaced that the absence of blinking can alsorepresent lying as a more reliable factor than excessive blinking.

Some people use and understand body language differently, or not at all. Interpreting their

gestures and facial expressions (or lack thereof) in the context of normal body languageusually leads to misunderstandings and misinterpretations (especially if body language is given

priority over spoken language). It should also be stated that people from different cultures can

interpret body language in different ways.

How prevalent is non-verbal communication in humans?

Some researchers put the level of nonverbal communication as high as 80 percent of all

communication, when it could be at around 50-65 percent. Different studies have found

differing amounts, with some studies showing that facial communication is believed 4.3 times

more often than verbal meaning, and another finding that verbal communication in a flat tone is4 times more likely to be understood than a pure facial expression.

27



Body language and space

Interpersonal space refers to the psychological "bubble" that we can imagine exists when

someone is standing too close to us. Research has revealed that there are four different zones

of interpersonal space. The first zone is called intimate distance and ranges from touching to

about eighteen inches (46 cm) apart. Intimate distance is the space around us that we reservefor lovers, children, as well as close family members and friends. The second zone is called

personal distance and begins about an arm's length away; starting around eighteen inches (46

cm) from our person and ending about four feet (122 cm) away. We use personal distance in

conversations with friends, to chat with associates, and in group discussions. The third zone of

interpersonal space is called social distance and is the area that ranges from four to eight feet

(1.2 m - 2.4 m) away from you. Social distance is reserved for strangers, newly formed groups,

and new acquaintances. The fourth identified zone of space is public distance and includes

anything more than eight feet (2.4 m) away from you. This zone is used for speeches, lectures,

and theater; essentially, public distance is that range reserved for larger audiences.

Importance of Body Language in Communication

One of the oft-ignored aspects of communication is the understanding of body language. Body

language comprises of actions, gestures, facial expressions, postures and so on. It is often

said that body language cannot be concealed because it speaks the language of the heart.

Given below are some common body languages and common interpretations thereof:

1. You will seem friendly and co-operative if you:

(a) Look at the other person’s face and smile or nod your head as the other person

is talking.

(b) Have open hands, put your hand to your face occasionally and uncross your

arms.

(c) Sit with uncrossed legs, lean slightly forward and move closer to the other

person.

2. You will seem confident if you: Look into the other person’s eyes or don’t blink your

eyes and thrust your chin forward; also stand at ease with hands behind your back.

When seated, you lean back with legs out in front of you, stand straight and stay

relaxed.

3. You will seem aggressive if you: Stare at the other person, wear an ‘I’ ve read it all

before’ smile, raise your eyebrows in exaggerated amazement or disbelief or look over

the top of your spectacles and point your finger at the other person, thump your fist on

the table and rub the back of your neck. Stand while the other person remains seated,

stride around; lean back in your chair with both hands behind your head and legs

spread / crossed.

4. You will seem thoughtful if you:

(a) Look at the other person for most of the time when listening and tilt your head to oneside slightly.

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(b) Stroke your chin or take off your spectacles and put the earpiece into your mouth.

Lean forward to speak or lean back to listen.

5. You will seem defensive if you: Avoid eye contact or immediately look away; when it

occurs, don’t look at the other person; clench hands, cross arms and constantly rub an

eye or nose or ear and lean away from the other person, cross your legs and swivelyour feet towards to door.

6. You will seem anxious if you: Blink frequently, lick your lips and keep clearing your

throat; open and close your hands frequently, put your hand over your mouth while

speaking; tug at an ear and fidget in your chair.

To summarize, body language helps you read a person like a book, but caution must be

ensure that one should not jump to the hasty conclusions. Use body language only as a

support mechanism to understand people’s communication and behaviour. It has to be

understood that the above points are indicative, but can help people understand body

language. The best way is to closely watch the people with whom one interacts regularly and

then try to draw logical conclusions.

Good communication is the foundation of successful relationships, both personally and

professionally. But we communicate with much more than words. In fact, research shows that

the majority of our communication is nonverbal. Nonverbal communication, or body language,

includes our facial expressions, gestures, eye contact, posture, and even the tone of our voice.

The ability to understand and use nonverbal communication is a powerful tool that will help you

connect with others, express what you really mean, navigate challenging situations, and build

better relationships at home and work.

The power of nonverbal communication and body language

Nonverbal communication, or body language, is a vital form of communication. When we

interact with others, we continuously give and receive countless wordless signals. All of our

nonverbal behaviors—the gestures we make, the way we sit, how fast or how loud we talk, how

close we stand, how much eye contact we make—send strong messages.

The way we listen, look, move, and react tell the other person whether or not we care and how

well we are listening. The nonverbal signals you send either produce a sense of interest, trust,

and desire for connection—or they generate disinterest, distrust, and confusion.

Nonverbal communication cues can play five roles:

1. Repetition: they can repeat the message the person is making verbally2. Contradiction: they can contradict a message the individual is trying to convey

3. Substitution: they can substitute for a verbal message. For example, a person'seyes can often convey a far more vivid message than words and often do

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4. Complementing: they may add to or complement a verbal message. A boss whopats a person on the back in addition to giving praise can increase the impact of themessage

5. Accenting: they may accent or underline a verbal message. Pounding the table, for example, can underline a message.

Nonverbal communication and body language in relationships

It takes more than words to create fulfilling, strong relationships. Nonverbal communication has

a huge impact on the quality of our relationships. Nonverbal communication skills improve

relationships by helping you:

• Accurately read other people, including the emotions they’re feeling and the unspoken

messages they’re sending.• Create trust and transparency in relationships by sending nonverbal signals that match

up with your words.

• Respond with nonverbal cues that show others that you understand, notice, and care.

Unfortunately, many people send confusing or negative nonverbal signals without even

knowing it. When this happens, both connection and trust are lost in our relationships.

Types of nonverbal communication and body language

There are many different types of nonverbal communication. Together, the following nonverbal

signals and cues communicate your interest and investment in others.

Facial expressions

The human face is extremely expressive, able to express countless emotions without saying a

word. And unlike some forms of nonverbal communication, facial expressions are universal.

The facial expressions for happiness, sadness, anger, surprise, fear, and disgust are the same

across cultures.

Body movements and posture

Consider how your perceptions of people are affected by the way they sit, walk, stand up, or

hold their head. The way you move and carry yourself communicates a wealth of information to

the world. This type of nonverbal communication includes your posture, bearing, stance, and

subtle movements.

Gestures

Gestures are woven into the fabric of our daily lives. We wave, point, beckon, and use our

hands when we’re arguing or speaking animatedly—expressing ourselves with gestures often

without thinking. However, the meaning of gestures can be very different across cultures and

regions, so it’s important to be careful to avoid misinterpretation.

Eye contact

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Since the visual sense is dominant for most people, eye contact is an especially important type

of nonverbal communication. The way you look at someone can communicate many things,

including interest, affection, hostility, or attraction. Eye contact is also important in maintaining

the flow of conversation and for gauging the other person’s response.

Touch

We communicate a great deal through touch. Think about the messages given by the following:

a firm handshake, a timid tap on the shoulder, a warm bear hug, a reassuring pat on the back,

a patronizing pat on the head, or a controlling grip on your arm.

Space

Have you ever felt uncomfortable during a conversation because the other person was

standing too close and invading your space? We all have a need for physical space, although

that need differs depending on the culture, the situation, and the closeness of the relationship.You can use physical space to communicate many different nonverbal messages, including

signals of intimacy, aggression, dominance, or affection.

Voice

We communicate with our voices, even when we are not using words. Nonverbal speech

sounds such as tone, pitch, volume, inflection, rhythm, and rate are important communication

elements. When we speak, other people “read” our voices in addition to listening to our words.

These nonverbal speech sounds provide subtle but powerful clues into our true feelings and

what we really mean. Think about how tone of voice, for example, can indicate sarcasm, anger,

affection, or confidence.

It’s not what you say; it’s how you say it!

• Intensity. A reflection of the amount of energy you project is considered your intensity.

Again, this has as much to do with what feels good to the other person as what youpersonally prefer.

• Timing and pace. Your ability to be a good listener and communicate interest and

involvement is impacted by timing and pace.

• Sounds that convey understanding. Sounds such as “ahhh, ummm, ohhh,” uttered

with congruent eye and facial gestures, communicate understanding and emotionalconnection. More than words, these sounds are the language of interest, understandingand compassion.

Using body language and nonverbal communication successfully

Nonverbal communication is a rapidly flowing back-and-forth process. Successful nonverbal

communication depends on emotional self-awareness and an understanding of the cues you’re

sending, along with the ability to accurately pick up on the cues others are sending you. This

requires your full concentration and attention. If you are planning what you’re going to say next,

daydreaming, or thinking about something else, you are almost certain to miss nonverbal cues

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and other subtleties in the conversation. You need to stay focused on the moment-to-moment

experience in order to fully understand what’s going on.

Tips for successful nonverbal communication:

• Take a time out if you’re feeling overwhelmed by stress. Stress compromises your ability to communicate. When you’re stressed out, you’re more likely to misread other people, send off confusing or off-putting nonverbal signals, and lapse into unhealthyknee-jerk patterns of behavior. Take a moment to calm down before you jump back intothe conversation. Once you’ve regained your emotional equilibrium, you’ll be better equipped to deal with the situation in a positive way.

• Pay attention to inconsistencies. Nonverbal communication should reinforce what is

being said. If you get the feeling that someone isn’t being honest or that something is“off,” you may be picking up on a mismatch between verbal and nonverbal cues. Is theperson is saying one thing, and their body language something else? For example, arethey telling you “yes” while shaking their head no?

• Look at nonverbal communication signals as a group. Don’t read too much into asingle gesture or nonverbal cue. Consider all of the nonverbal signals you are sendingand receiving, from eye contact to tone of voice and body language. Are your nonverbalcues consistent—or inconsistent—with what you are trying to communicate?

Nonverbal communication and body language: Common mistakes

• You’re not subtle. Be objective about your own observations to make sure you aren’t

offending others by broadly mimicking their speech or behavior. Remember, mostpeople instinctively send and interpret nonverbal signals all the time, so don’t assumeyou’re the only one who’s aware of nonverbal undercurrents. Finally, stay true to

yourself. Be aware of your own natural style, and don’t adopt behavior that isincompatible with it.

• You bluff. Thinking you can bluff by deliberately altering your body language can do

more harm than good. Unless you’re a proficient actor, it will be hard to overcome your body’s inability to lie. There will always be mixed messages, signs that your channels of communication are not congruent. It’s a prime example of leakage, and somethingothers will detect, one way or another.

• You rush to accuse based on body language alone. Incorrect accusations based on

erroneous observations can be embarrassing and damaging and take a long time toovercome. Always verify your interpretation with another communications channelbefore rushing in. You could say something like, “I get the feeling you’re uncomfortable

with this course of action. Would you like to add something to the discussion?” Thisshould draw out the real message and force the individual to come clean or to adjust hisor her body language.

Improving your nonverbal communication skills

Before you can improve your nonverbal communication skills, you need to figure out what

you’re doing right and where there is room for improvement. The most effective method is to

observe yourself in action:

• Video camera – Videotape a conversation between you and a partner. Set the camera

to record both of you at the same time, so you can observe the nonverbal back-and-

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forth. When you watch the recording, focus on any discrepancies between your verbaland nonverbal communication.

• Digital camera – Ask someone to take a series of photos of you while you’re talking to

someone else. As you look through the photos, focus on you and the other person’sbody language, facial expressions, and gestures.

• Audio recorder – Record a conversation between you and a friend or family member. As you listen to the recording afterwards, concentrate on the way things are said, rather than the words. Pay attention to tone, timing, pace, and other sounds.

As you watch or listen to the recordings, ask yourself the following questions:

Evaluating your nonverbal communication skills

Eye contact Is this source of connection missing, too intense, or just right in yourself or in

the person you are looking at?Facial

expression

What is your face showing? Is it masklike and unexpressive, or emotionally

present and filled with interest? What do you see as you look into the faces of others?

Tone of voice Does your voice project warmth, confidence, and delight, or is it strained and

blocked? What do you hear as you listen to other people?Posture and

gesture

Does your body look still and immobile, or relaxed? Sensing the degree of

tension in your shoulders and jaw answers this question. What do you observe

about the degree of tension or relaxation in the body of the person you are

speaking to?Touch Remember, what feels good is relative. How do you like to be touched? Who

do you like to have touching you? Is the difference between what you like and

what the other person likes obvious to you?Intensity Do you or the person you are communicating with seem flat, cool, and

disinterested, or over-the-top and melodramatic? Again, this has as much to do

with what feels good to the other person as it does with what you personally

prefer.Timing and

pace

What happens when you or someone you care about makes an important

statement? Does a response—not necessarily verbal—come too quickly or too

slowly? Is there an easy flow of information back and forth?Sounds Do you use sounds to indicate that you are attending to the other person? Do

you pick up on sounds from others that indicate their caring or concern for

you?

The point of this exercise is to develop your nonverbal awareness. As you continue to pay

attention to the nonverbal cues and signals you send and receive, your ability to communicate

will improve.

OBSERVATION HELPS

Noticing the signals that people send out with their body language is a very useful social skill.

Some of us can read it naturally and some of us are notoriously oblivious. Fortunately, with a

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little extra attentiveness, you can learn to read body language, and with enough practice it'll

become second nature. 1

Pay attention to how close someone is to you. The closer they are, the warmer their

opinions are of you. The farther away that someone is, the less they actually care of the

situation or person. If you move slightly closer to them, do they move slightly further away?

That means they don't want your interaction to be any more personal than it already is. If they

don't move further away, then they are receptive. And if they respond by getting even closer to

you, they probably really like you or are very comfortable around/by you.

o It is worth noting that personal space is culturally fluid; keep in mind that what is

considered close in one country is far away in another.

2. 2

Watch their head position.

o Overly tilted heads are either a potential sign of sympathy, or if a person smiles while

tilting their head, they are being playful and maybe even flirting.

o Lowered heads indicate a reason to hide something. Take note if someone lowers their

head. If it is when he is complimented, he may be shy, ashamed, timid, keeping

distance from the other person, in disbelief, or thinking to himself. If it is after an

explanation, then he may be unsure if what he said was correct.

It should be noted that some cultures see this as a sign of respect.

o Cocked heads mean that they are confused or challenging you, depending on eye,

eyebrow, and mouth gestures. Think of how a dog slightly cocks its head when you

make a funny noise.

3. 3

Look into their eyes.

o People who look to the sides a lot are nervous, lying, or distracted. However, if a person

looks away from the speaker, it very well could be a comfort display or indicate

submissiveness. Looking askance generally means the person is distrustful or

unconvinced.

o If someone looks down at the floor a lot, they are probably shy or timid.

o Some cultures believe that looking at someone in the eyes is a sign of disrespect, so

this could explain why someone is avoiding eye contact with you.

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o Dilated pupils mean that the person is interested. Keep in mind, however, that many

drugs cause pupils to dilate, including alcohol, cocaine, amphetamines, MDMA, LSD

and others. Don't mistake having a few drinks for attraction. Also, some people have

permanently dilated pupils.

4. 4

See if they're mirroring you. Mirroring is another common gesture. If someone mirrors, or

mimics your appearance, this is a very genuine sign that they are interested in you and trying

to establish rapport with you. Try changing your body position here and there. If you find that

they change theirs similarly, they are mirroring.

5. 5

Check their arms.

• People with crossed arms are closing themselves to social influence. Though

some people just cross their arms as a habit, it may indicate that the person is

(slightly) reserved, uncomfortable with their weight (therefore trying to hide it), or

just trying to hide something on their shirt. If their arms are crossed while their

feet are shoulder width or wider apart, this is a position of toughness or authority.

• If someone rests their arms behind their neck or head, they are open to what is

being discussed or just laid back in general.

• If their hands are on their hips, they might be waiting or impatient.

6. 6

Be aware of nervous gestures:

• If someone brushes their hair back with their fingers, this may be preening, a

common gesture if the person likes you, or their thoughts about something conflict

with yours. They might not voice this. If you see raised eyebrows during this time,

you can be pretty sure that they disagree with you.

• If the person wears glasses, and is constantly pushing them up onto their nose

again, with a slight frown, that may also indicate they disagree with what you are

saying. Look to make sure they push up their glasses with an intent, not casually

adjusting them. Look for pushing on the rim with two fingers, or an extra motion of

wiggling the side of their glasses. The frown or raised eyebrows should tip you off.

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• Lowered eyebrows and squinted eyes illustrate an attempt at understanding what is

being said or going on. It's usually skeptical. This is presuming they are not trying to

observe something that's far away.

7. 7

Watch their feet:

• A fast tapping, shifting of weight, laughing, or movement of the foot will most often

mean that the person is impatient, excited, nervous, scared, or intimidated.

o Note though that some people with ADHD will constantly jiggle their legs. It

doesn't mean anything, it's entirely subconscious and, while eccentric, it can't be

stopped.

• If the person is sitting, feet crossed at the ankles means they're generally at ease.

• If while standing, a person seems to always keep their feet very close together, it

probably means they are trying to be "proper" in some way.

• If they purposely touch their feet to yours, they are flirting!

Tips

• It's easy to spot a confident person; they will make prolonged eye contact and have astrong posture. Long eye contact can also be found in lovers' eyes.

• If a person talks at a fast rate and mumbles or isn't clear on what they are saying they

are lying (trying to stall for time) or not telling the full truth (being vague).

• Don't isolate yourself by constantly examining body language when interacting with

people. Otherwise, there is no reason to gain a social upper hand anyway. This is

paralysis by analysis.

• Watch the face, it will usually give off a quick involuntary and sometimes subconscious

twitch when something happens that irritates, excites, or amuses them.

• Observing in context is key to understanding body language.

• Keep in mind that each person has their own unique body language called baseline

behaviors.

• When observing others, be subtle about it.

• Pay special attention to CHANGES in body language rather than the body language

itself.

It is crucial that you understand what certain body language means and what body language

you should actually use. Listed below are the meanings of some body gestures and if youshould use them when selling or not:

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Crossed Arms

Crossed arms normally means defensiveness or sometimes just a comfortable position. Youshould try to avoid this body language at all costs even if it is a comfortable position becausemost people view it as the wrong body language.

Touching the nose

Touching the nose can mean doubt or even lying. Sometimes it can just be an itch from a cold.You should try to avoid toughing your nose unless the person you are selling to knows that youhave had a bad cold in the past couple of weeks. Also, if a client touches their nose when youare talking then they are withdrawing and did not like something you said so rethink your strategy.

Unbuttoning the jacket

Unbuttoning your jacket can suggest your openness to cooperate. On the other hand it can just

simply mean that you are trying to fit into an old jacket. It is suggested that you try to to keepthe jacket open to show you are willing to cooperate and negotiate sales. Taking off your jacketin front of a client can be extremely powerful and rolling up your sleeves means that you areready to get down to the final price.

Shaking hands

When shaking someone's hand you should consider a number of things because a handshakeis an extremely important matter when trying to make a sale. Normally, the way you handshakerepresents your personality so if you have a low self esteem you give a soft handshake or if you are quite aggressive you give a very firm handshake.

Domineering men tend to squeeze a woman's hand so you must not to let this happen. Youshould move your index finger and pinkie finger in towards your palm so that you avoid gettingyour hand crushed. By doing so, you will eradicate his domineeringness and you will bothbecome equal. The best handshake to give is a firm, strong one that shows confidence but notdomineering.

Posture

It is crucial that you don not slouch when trying to sell to someone because this portrays lack of enthusiasm and interest. When you stand up tall and keep an even balance on both feet then itmeans you are confident and relaxed.

Open palms

If you want someone to trust you then do it through body language rather than just saying it. If you show a hand with palms up it portrays honesty and can build trust, whereas showing apalm down portrays a dominant message. You should also accompany an open palm with asincere facial expression such as a smile.

Hands

Using your hands can mean a number of positive and negative things. For instance, if you

place your hands together and place them behind your head it suggest arrogance andsometimes too much confidence which can cause potential buyers to walk away from the sale.

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By placing your hands on your waist this portrays confidence, means that you are ready andwill attract others. Another gesture that suggests confidence is placing finger tips of one handonto finger tips of another.

Eyes

Your eyes should always be focused on the customer and you should never use darting eyesas this represents deceit. Looking to the right suggests also suggests deceit, looking to the leftsuggests the truth and looking down suggests low self esteem. Therefore, never look down or to the right. It is also important to remove sunglasses or dark glasses because it means that acustomer or client can not see you eyes and therefore can not read your eyes to establishwhether you are being honest. Also, if a client touches their eye when you are talking then theyare withdrawing and did not like something you said so rethink your strategy.

Mirroring

It is not only important to think about your body language but also to control your clients as

well. If a client uses negative body language such as crossing their legs and arms then youneed to change this or else they will not cooperate or negotiate in the selling process. The wayto do this is to use positive gestures and statements that will cause them to open up their bodylanguage. Then when you notice that they end up mirroring all of your movements you havethere full attention and communication. When clients end up mirroring your movements thentheir attitudes change and you can attempt to close the sale.

Pointing fingers

You should never point a finger at any client when trying to sell because all it is an aggressivegesture and just antagonizes people.

You must use body language when selling because it can end up swaying potential customerswho may be sitting on the fence or it may just allow them to leave without a sale but have apositive impression of you and your company.

Controlling Your Own Body Language

One person's body language unconsciously influences how the other person in a meetingfeels. So you can influence the way customers feel subtly through body language:

Speak a familiar language

Try to use a non-verbal vocabulary that is generally understood to convey positive messages. If

the customer is a good reader of body language, you are ahead. If the customer is not, you

have not lost anything.

• Maintain good posture, sitting erect but not stiff. Hands should be visible and open.

• Avoid closed gestures, such as crossing your arms across your chest.

• Smile.

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• Maintain eye contact, particularly while the customer is speaking. This says you care

about what the customer is saying. To avoid staring, look away occasionally to takenotes or to look at materials the customer has brought.

• Focus your attention on the customer. Avoid fidgeting or letting your eyes wander while

the customer is speaking. These actions will draw the customer's attention away fromthe conversation and suggest you would rather be somewhere else.

• Nod agreement. This is positive if you do it convincingly and in appropriate places. If

you do it automatically, it says you are not listening.

• Occasionally express agreement verbally to reinforce nods.

Reflect the customer's language

Make customers feel more comfortable at first by matching their body language. For example:

• If the customer's body language is very open, match it.

• If it is reserved or nervous, tone down your enthusiasm a bit to make the customer

more comfortable.

• If the customer prefers to maintain some distance, avoid moving too closely.

• If the customer moves slowly and makes few gestures, avoid extensive gesturing and

quick movements.

Using Body Language To Influence The Way The Customer Feels

We normally think of body language as a reflection of what the person is feeling; and that's

true. But it is also true that if you change your body language, your feelings will begin to

change as well. That's why, when you feel yourself dragging in the middle of the afternoon, a

quick walk around the block can rejuvenate you. You also tend to feel better when you put on

fresh clothes or if you just smile.

This principle has two practical applications:

1. You can make yourself look and feel better by using more positive body language

The famous football coach Vince Lombardi used to tell his players before an away game:

"You've got to look good getting off the bus, and then play a heck of a game." In other words, if

you look and act like a winner at the outset, you are more likely to become one.

2. Body language is contagious

If person X uses relatively neutral body language, and person Y uses positive or negative body

language, person X will gradually begin to mirror that. Thus, if the customer starts out neutral or

somewhat negative and you are increasingly positive, the customer's body language (and thus

their mood) will become more positive as well. To influence the way the customer feels:

1. Start with body language that is generally considered to be positive.

2. Carefully observe the customer's body language.

3. Alter your body language to more closely match the customer's.

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4. During the meeting, if you think a more positive tone is desirable, gradually change your body language to be more positive in order to influence the way the customer feels.

5. Always make positive transitions in your body language while the customer is speaking.This says you support the customer's ideas and feelings. If you make changes whenyou begin to speak, it may say that you are trying to take control.

Additional Body Language Techniques

1. Match your words and body language

The customer will trust you less if you attempt to use body language that differs markedly from

what you are saying. If you are honest in both, and use both to express your sincere interest in

helping the customer, this will show.

2. Maintain the right distance

People have a comfort zone for how close they want other people to come; only people they

feel very comfortable with are allowed to penetrate within a certain distance. Follow theseguidelines to maintain a comfortable distance:

• Follow the customer's lead. From the moment you greet customers, watch where

they stand. This will tell you how close to approach. If they back away a bit after thehandshake, maintain a greater distance.

• Don't tower over the customer. If you are much taller than the customer, be

especially careful to keep a comfortable distance. Once you are seated and thecustomer communicates more openness, you can begin to approach more closely.

• Be careful about touching. A firm, brief handshake is always acceptable for greeting

someone you do not know well. Other touching is uncomfortable for many people.

• Move closer together at an appropriate time. This is valuable in strengthening the

positive relationship. But when you move closer to the customer, do it for a reason:

1. You can move closer to the customer to look at a document together, like abrochure.

2. If the customer begins to lean closer, expressing positive energy towards you, itis OK for you to lean closer as well.

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