Professional Documents
Culture Documents
Ghaziabad
We undertook the project “Buyer Seller Dyad & Spin technique” as a part of our course
curriculum of PGDM in the field of Sales Management at IMT, Ghaziabad.
The duration of our project was 4 weeks. In the Duration we studied many companies
from different sectors and Analysed there buyer seller relationship
We have tried to incorporate the results to the best of our abilities & available resources.
There is always a sense of gratitude, which everyone express to others for the
helpful and needful services they render during different phases of life and help to
achieve the goals. We too, want to express our deep gratitude to each and everyone who
have always been helpful to us in getting this project to a successful end.
We are thankful to Prof. Sanjeev Prashar (Professor, IMT GHAZIABAD), who is
not only our teacher in-charge of Sales Management but also our guide for this project.
We express our humble thanks to his for spacing every moment out of his busy
schedule for us, who has not only guided us properly but also gave us an encouraging
help to make this project successful one. Without his able guidance, we would not have
been able to complete this project.
1.1 Objectives: -
To find out actual practices of companies that implement buyer seller dyad as well spin
technique. These companies have been chosen from five different selling strategies: -
Communication, Negotiation, Persuasion, Client profit planning, Business development
strategy.
Further SPANCO technique has been analyzed w.r.t. to IMS India pvt ltd. (A CAT
coaching institute)
1.2 Scope:-
The literature review has been carried out to understand the evolution of relevant theories
of sales management. Further, the companies have been selected from in and around
Delhi/ NCR region.
1.2..................................................................................................................................
TABLE OF
........................................................................................................................CONTENT S
LIST OF
FIGURES............................................................................................................................... .
BUYER
2 ..............................................................................................................SELLERDYA D
2.1........................................................................................................................
2.2..............................................................................................................
2.3...........................................................................
Content of
2.3.1 Communication...............................................................................................
Functional
2.3.1.1 Utility .....................................................................................................................
.
Social Organizational
2.3.1.2 Utility.....................................................................................................
.
Situational
2.3.1.3 Utility .....................................................................................................................
.
Emotional
2.3.1.4 Utility.......................................................................................................................
Curiosity
2.3.1.5 Utility .......................................................................................................................
.
Style of
2.3.2 Communication ...................................................................................................
Task Oriented
2.3.2.1 Style ..................................................................................................................
.
Interaction Oriented
2.3.2.2 Style .........................................................................................................
.
Self Oriented
2.3.2.3 Style ...................................................................................................................
.
Determinant
2.3.3 Factors........................................................................................................
Personal
2.3.3.1 factors ........................................................................................................................
.
Organizational
2.3.3.2 factors...............................................................................................................
.
Product-related
2.3.3.3 factors..............................................................................................................
.
DYADIC SALES PROCESS
2.4 MODEL ...........................................................................................
Source
2.4.1 Legitimization ......................................................................................................
Information Exchange - Problem
2.4.2 Identification ................................................................
Attribute
2.4.3 Delineation .......................................................................................................
Attribute Value
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List of Figures
2.1 Background1
In their initial researches, researchers had found that the emphasis in business is placed
on finding the ideal sales type while doing salesman selection. The salesmen were
thought of as outgoing, bluff, hardy and aggressive. They were mostly found to be money
oriented in compare to their counterparts in technical line who were work oriented. Initial
sales approaches were:
The Sales Personality: what the salesman must be. This approach argues that
salesman must be mentally tough but he must have more tact, diplomacy, and social
poise than most other employees. He must be ambitious, self confident and like to
travel.
The Persuasive Salesman: how to persuade or manipulate prospect. This approach
argues that regardless of the type, all prospects will buy from someone. You can be
the one if you learn to classify prospects and then use the methods, principles and
techniques that permit you to handle various prospects in profitable manner.
The Adaptable Salesman: be whatever the prospect wants. According to this
approach good salesman is a chameleon and likes being one. Salesman should be
what the client wants; to make the client feels the salesman understand him.
A lot many studies in sociology and social psychology have dealt with variables which
are important to person interaction system. It was mostly fund that though salesman
realize that he must please their prospects but he mostly tend to deny the importance of
personal relations. Salesmen claim that a prospect‟s age,
religion, ethnic background or appearance makes no difference to them. They mostly
equate hard work with success. They deny the importance of their interaction with
particular kind of prospects. But various researches have shown that successful dyads are
more alike than the unsuccessful one.
Personal selling requires two people i.e. Buyer and Seller. Different researchers have
analyzed these two among different dimensions.
1
F. B. Evans, “ Selling as a dyadic relationship A new approach”, American Behavioural Scientist, May
1963
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Harry Hansen [1961] simply classifies salesmen into two groups i.e. Industry
salesmen and consumer salesmen.
Robert McMurry [1961]2 discusses selling in terms of creativity level required for
selling the product – Direct Selling, Inside Order Taker, Outside Order Taker,
Missionary Salesperson,
Creative Sale of Tangible Product and Creative Sales of Intangible.
Beckham and Davidson [1962] classify them into – Industrial users, wholesalers,
retailers and consumers. They have argued that need for creativity varies from one
person to another, although the salesman is selling the same product line. So
adaptability of selling behaviour to the expectation of customer would results in a
more effective selling relationship.
F. B. Evan [1963] in his research had found that more alike the salesman and the
prospect are the greater is the likelihood of success. This is true for physical
characteristics (age, height), objective factors (income, religion, education) and
variables (politics, smoking) that may be related to personality factors.
2 The Mystique of Super Salesmanship, Harvard Business Review, March – April, 1961
3 “Effect of expectation levels and role consensus on the buyer seller dyad”
4 “Bargaining Behavior in a Buyer-Seller Dyad”
The basic postulate underlying the conceptual framework summarized in figure 2.1 is that
whether a specific buyer-seller interaction will or will not work is a function of two
distinct dimensions of interaction.
5
“An Experimental Analysis of a salesman‟s expert and referent bases
of social power in the buyer-seller dyad”
6
Jagdish N Sheth “Buyer Seller Interaction: A conceptual framework”, Advances in
consumer research
Whatever the objective, a satisfactory interaction transaction between the buyer and the
seller will occur if and only if they are compatible with respect to both the contest and
style of communication. Both the style and content of buyer-seller communication are
determined by a number of personal, organizational and product related factors. For
example, the personal life styles and backgrounds will often determine the style of
communication the buyer or the seller chooses to engage in. Similarly, organizational
training and orientation will also mould the buyer or the, seller with respect to the style of
communication he is expected to engage in. Finally, the content of communication is
likely to be determined by product-related variables such as market motivations, buyer
and seller plans and technology or competitive structure of industry.
(Background, lifestyle and role orientation) anchored to the individuals involved in the
interaction. These factors are likely to determine the style of interaction each individual
prefers.
Even in household marketing, we believe there are organizational factors not; only
associated with the seller but also with the buyer in so far as a typical household has
some organizational structure, no matter how implicit it may be. These factors often
determine both the style and the content of interaction. The content will be heavily
influenced by organization objectives and to some extent by organization structure.
Similarly, each organization has explicit or implicit style of management often dictated
by the top man in the organization.
The three types of determinants of style and content of interaction are extremely relevant
to isolate individual differences among buyers and sellers, product differences for the
same buyer or seller, and organizational differences for the same product. They
essentially serve the function of reducing all the buyer-seller interactions to a common
base by partialing out the effects of personal, organizational and product differences.
The salesperson attempts to establish the nature of the problem in order to be able to
suggest an attribute package that will results in a sale. The salesperson is also concerned
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about positioning the attribute package with respect to competition and in
developing a
strong bargaining base.
Also of importance is the nature of the product. If there are product differences then they
may be used to differentiate the various attribute packages. However, if substantial
product differences do not exist, then intangible attributes may dominate.
The importance of individual attributes likely varies as a function of the stage of the
relationship. Careful work needs to be done on the stages in which the attributes set is
developed and values of the individual attributes are negotiated.
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2.5 Relationship Skills of Salespeople
With the increased emphasis on establishing long term customer relationships in the
selling process, greater emphasis needs to be placed on hiring salespeople that possess
skills in identifying communication characteristics in prospects. This identification
process is an essential first step in the salesperson being able to adapt his or her behaviour
to permit a greater comfort level to be experienced by the prospect subsequent trust being
established over an extended period of time.
To take complete advantage of the potential benefits of the dyadic exchange process, the
adaptive approach has been expanded to include the observed personal behavioral
characteristics of the prospect. Adapting to the social styles of prospect enables the sales
message to be received with greater receptivity. It increases the comfort level and reduces
perceived risk of prospect in proposed transaction. It will increase the likelihood of
proposed transaction, possibly resulting in a profitable long term relationship between
buyer and selling organization. For this ability to correctly identify the observed social
style of the prospect is a precursor to effective adaptation.
The three variables that affect a person‟s sensitivity to
cues in others are:
• Assertiveness
• Responsiveness
• Gender
First two variables are core components of person social style and are readily measurable
through diagnostic test. By combining assertiveness and responsiveness to form social
style matrix four distinct classifications are obtained and a subject can be placed into it.
8
Michael K Rich & Daniel C Smith, “Determining Relationship Skills of prospective salespeople”, 2000
2.5.1 Responsiveness
It is defines as the extent to which one reacts to appeals, influence or stimulation
or how feelings, emotion, or impressions are shown to others. A highly responsive
person will be friendly, informal, open, emotional, undisciplined and relationship
oriented. They will tend to “emote” feelings while being sensitive to both verbal
and nonverbal signals being sent by others. A person with low responsiveness will
want to work in an environment where he or she has more time alone instead of
having to make conversation with others. They seem to “control” and are less
sensitive to cues generated by others.
2.5.2 Assertiveness
It is defined as the degree to which one states opinions with assurances,
confidence, and force, and the extent to which one attempts to direct the actions of
others. A highly assertive person will seek control over others, they will be
competive, fast acting, risk-taking, take charge type who is very directive. A low
assertive people will be cooperative, slower acting, avoiding risk, going along
with the group, exhibiting non directive tendencies.
2.5.3 Gender
It is found that females are inherently more sensitive than males to their
surroundings. It is also found that females have greater sensitivity to relevant
information when forming judgments, enhancing their identification skills.
Hence females identify social style better than males. Gender could thus be an overriding
variable in determining the effects of responsiveness and assertiveness ability of
salesperson.
3.1 BACKGROUND
Strong sales and influence skills are crucial to business success as a financial adviser.
Without the ability to convert complacent, disinterested and distracted prospects into
motivated, paying clients, an organization will be unable to turn its expertise into
commercial success.
While traditional selling styles and programs may have been fine in the transactional
environment of yesteryear, today‟s advice-driven profession needs solutions
that will enable advisers not only to make a sale but also develop a trust-based
relationship with each client.
characteristics:-
A lengthy selling cycle
A significant commitment by the buyer
An ongoing relationship after the sale
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3.1.1 What’s wrong with ‘traditional’ selling?
Let‟s take a quick look at the typical steps in a
traditional sale:
Salesman needs a selling solution that not only allows him to establish and maintain a
healthy relationship with prospect, but also creates a sense of urgency for them to do
business with him.
In turn, this necessitates some new „selling skills‟, such as the „SPIN
Selling‟ approach
The seller uses Situation Questions to establish a context leading to Problem Questions
so that the buyer reveals Implied Needs which are developed by Implication Questions
which make the buyer feel the problem more clearly and acutely leading to Need-Payoff
Questions so that the buyer states Explicit Needs allowing the seller to state Benefits
which are strongly related to sales success.
---NEIL
RACKHAM
their electorates. SPIN is in fact an acronym for: situation, problem, implication and
need-payoff.
The needs are not exactly clear, so the seller looks for clues & tries to uncover the
potential customer's implicit needs and close the sale.
"SPIN Selling" suggests that the seller should develop a questioning mindset
stating it's "more important to understand than to persuade".
They also generate alternative actions to propose as needed for the actual sales
visit.
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Figure 6: SPIN Technique of Sales
Situation:-These questions get the prospect talking about their current situation.
Ex
How long have you been staying in this home?
How long have you worked in this company?
Need:- These questions highlight the value of Sellers's product in solving the
prospect‟s problem.
How can a helmet save person‟s life in case of an
accident?
Explicit needs are those that the buyer wants to do something about – they play
on your mind, keep you up at night and motivate you to take action.
3.4 SITUATION
• Every good seller begins the sales call by assessing the prospect, by asking
questions to clarify the customer's current situation.
Sellers should not ask questions to elicit information that could have been
obtained before beginning the call easily from other sources.
When overused, these questions bore the customer.
3.4 PROBLEM
Problem questions are used to uncover the problems, dissatisfactions, difficulties
experienced by the prospect.
Ask about the buyer's difficulties and focus the buyer on this difficulties while
clarifying the problem
These give Implied Needs.
3.5 IMPLICATION
Seller discusses the effects of the problem & asks Questions about the
consequences or effects of a customer's problems.
motivation to buy.
The goal of using these questions is to persuade the customer to EXPLICITLY
state a need that seller can solve.
This is the “Hurt” part of hurt & rescue
The final set of questions reveal how the product or services offered can add real
benefit.
These questions bring it all together so your solution makes sense to your
prospect and they are ready to buy.
Sales are the front end of a company. The company takes good number of initiatives to
meet customer requirements. Sales & Marketing are the parallel themes of a company to
run. It involves a lot of steps for a salesman to go through. Hence they need to take a few
steps to reach their target or to convince their customers.
Xerox is the company which has given the sales people a term to sales people to handle
sales in professional manner. This is called SPANCO.
4.1 SUSPECT
4.2 PROSPECT
Sales person finds out the prospects after applying QFD as above.
Probing of prospect to know whether he can be converted or no.
4.4 NEGOTIATION
Negotiation happens on mutual understanding of both the parties
Pricing, offers etc are finalized to be a win- win situation for both the parties
4.5 CLOSURE
Involves closing of the deal
Finalization of the order is done after finalizing the terms & conditions and
pricing.
4.6 ORDER
Purchase order comes into picture
Sales people need to pick the order by agreeing on terms & conditions- payment,
delivery etc
o SUSPECTS
o Engineering College /Graduate Students
o Working people
o PROSPECTS
o Students who have taken CAT /MBA exams previously
o QFD– Age , Educational Background, Interest in pursuing MBA career
o APPROACH
The companies were visited as per the Sales Strategies followed by them in finalizing the
deals with the clients. It should be kept in mind that no company follows a single Sales
strategy but follows a mix of them depending on the kind of sales process required to
close the sales
In this kind of sales strategy, representative is the personal communicator and provides
information close to the buying decision. The company visited is City Heart Bus Service
and TIME PVT LTD and following is the flow chart of Communication strategy
followed by them till the point of closing the sales.
The persuasion level requires the sales representative to go beyond the role of a mere
communicator to the role of understanding at least the immediate and narrow needs of the
customers.
At this stage, the sales representative tries to fit the customer into the existing product or
service mix by skillfully anticipating and overcoming objection. This Strategy is being
experienced by Indian market. The companies visited are ICICI Prudential and
CARRIER LTD.
During negotiation, the product and commercial terms are adjusted to meet the
customer‟s needs rather than just attempting to skillfully overcoming
objections as
The critical skill at this stage of selling is analyzing and understanding the customer needs
and determining how the company‟s products and services can meet
these needs.
At this point, the customer becomes a client and the process of consultative selling
begins.
The companies following this strategy are DOMINOS Ltd and TIMES BUSINESS
SOLUTION.
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5.3.1 DOMINOS LTD.
In India, Client profit planning strategy is applicable in industrial product selling. The
representative is put to work with clients‟ team to learn about profit-planning
system, product,
finance, marketing, research and development and future plans etc. so that the product meeting
the client‟s needs could be developed.