negotiation+skills final 1
TRANSCRIPT
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GODREJ INDUSTRIES LIMITED
TRAINING PROGRAM ONNEGOTIATION SKILLSASSIGNMENT FOR INTERNAL ASSESSMENT
By Apurva Nimbalkar
Roll no: 97
Course: MMS
WELINGKAR INSTITUTE OF
MANAGEMENT, DEVELOPMENT & RESEARCH
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Training Program on, NEGOTIATION SKILLS
Objectives of this program: This particular training aims at improving the
performance of the sales department. It is designed to suit the 3 main learning
styles, auditory, visual, and kinesthetic. at the end of this program, the
participants would be able to
o
Determine the importance of negotiation in the sales process
o
Identify key steps to take at every point in the negotiation process
o
Determine how to use various negotiation strategies to achieve results
o
Use effective communication to achieve good negotiation outcomes.
MODULE 1: ICE BREAKER- SIMILAR CIRCLES:
Duration:
This icebreaker can take up to 30 minutes to run.
Intended for:
Use as an icebreaker at the beginning of a training program. This is a fun way for
participants to get to know each other without having to go through the ordeal ofintroducing themselves to the group as a whole.
Objective:
To help break the ice at the beginning of training sessions where participants do
not already know each other well.
Resources Needed:
Flip chart paper and marker pens.
Instructions:
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Arrange participants into groups of three. If the numbers do not work out exactly
consider joining one group yourself. Alternatively, you can have one or two pairs
of people.
Show participants a flip chart already primed with three circles. Explain that youwant each group to replicate the drawing using the flip chart pen and blank flip
chart paper you give to them. People working in pairs need only draw two
overlapping circles.
When they have done this explain that each member of the group is assigned one
circle. In the area that does not overlap any of the other circles they write at least
two unique facts about themselvesa unique fact is a piece of information about
them that does not apply to anyone else in their small group (e.g. Born In Austria).
In the overlapping areas they need to write a common fact applying to everyone
in the overlapping areas. For example A and B might both run marathons but C
does not - so they would write this in the AB area of overlap.
Where all three circles overlap the participants need to find a fact that applies to
all three.
For people working in pairs ask them to come up with 3 unique facts and three
common facts.
Allow a fixed time limit for the activity (say 15 minutes).
When participants have completed the activity display the finished work. Find an
interesting fact about each person and ask each person a question in turn. For
example: 'I'm interested to see you run marathons. How much training does this
involve?' This will help to introduce each individual to all of the other participants.
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MODULE 2: CLASSROOM TRAINING: Topics to be covered under this module
are as under
1)
Basic understanding of the term negotiation & how we use it in our day
to day life
2)
Negotiating with Prospects and Customers
3) Negotiation Strategies
4)
Communication Skills
Basic understanding of the term negotiation & how we use it in our day to
day life:
o
Negotiation: The process of getting what you want from another
person. This process keeps on happening on a daily basis for e.g.,
Subordinates negotiate with their bosses over deadlines; Workers
negotiate with their clients over services they can offer them etc.
o Why negotiation is essential: To convince people to take your side of
an issue, To agree on how to share or divide a limited resource, To
resolve a problem or dispute between the parties, To sell a product
or service
o
Sales Negotiation: Sales negotiation can be a formal event at a
specific time and date or it can be ongoing at different points in thesales process. As a sales staff, candidates are seeking a mutually
beneficial relationship with their prospects and clients, not
something that benefits only them or their prospects or customers.
o
Negotiation with customers is essential because of different
customer attitudes:
Objection : Customer displays opposition to your product
Indifference: Customer shows a lack of interest in your
product because of no perceived need for its benefits
Scepticism: Customer is interested in a particular benefit, but
doubts whether your product can really provide the benefit
Acceptance : Customer agrees with your benefits and has no
negative feelings toward your product
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Negotiating with Prospects & Clients:
o
Negotiation with prospects and customers must be undertaken
within the context of the sales process. Where inadequate
prospecting, pre sales preparation and planning is done, negotiation
is likely to be unsuccessful
Overview of the sales process
o
Steps to be followed
Before Negotiation: The sales personnel should avoid
negotiating unless he had an opportunity to fully present his
products and services, he should be confident in the value his
product or service will provide his prospect, he should be
prepared to work toward a solution that works for both himand his prospect
During Negotiation: The sales personnel should use open
ended questions to confirm his understanding of customers
needs, he shouldnt rush to fill pauses with more talkinstead
be comfortable with moments of silence, he should be
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prepared to make slight adjustments for his prospect if
possible, He should try to identify small things both the parties
agreed on to help develop positive momentum.
After Negotiation: If the sales personnel is able to make a sale,
then he should Thank the customer/ prospect for their time
and reinforce the purchase decision. If hes not able to make a
sale, the sales personnel should sincerely thank the prospect
for their time, avoid appearing annoyed or disappointed, and
give the prospect an out or an opening for them to come
back to the organisation in the future.
Negotiation Outcomes
Common mistakes to be avoided in negotiation process:
Inadequate preparation Use of intimidating behaviorImpatience Loss of temper talking too much, listening too
little, and remaining indifferent to body language. Arguing
instead of influencing.
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Negotiation Strategy:
o
Honey: Start with the cheapest possible product or service but one
which still has benefits for the prospect.
o Pinpoint the need: Focus on the need
o
Challenge: The prospect throws a challenge in an effort to win some
concessions
o
Limited Authority: Limited authority is an attempt to postpone the
decision on a pretext to get approval from a competent authority.
Whereas the real aim is to gain time for reconsideration, and/or
keeping the prospect still interested in the service for a reasonable
period of time until a win-win situation is achieved.
o
Good Guy/ Bad Guy: The good guy / bad guy is an internationally
used strategy. One member of a team takes a hard line approach
while other member is friendly and easy to deal with. When bad guy
steps out for a few minutes, the good guy offers the deal that under
the circumstances seems too good to refuse
o
Defer: Deferring strategy allows the negotiators time to reevaluate
their positions. Deferring a decision often proves that patience pays.
o
Keep It Light: The sales personnel never want to let negotiations
become too tense. If the sales personnel do not appear to be takingthe negotiation as a do or die affair, his prospect may conclude that
he is ready to move on if s/he does not cooperate and based on that
s/he may decide to be cooperative.
Effective Communication: Communication skills are crucial in the
negotiation process
o Oral communication: Oral communication is significant in building
rapport and trust with customers.
o
Listening: Perhaps the best strategy to adopt while the other side lets
off steam is to listen quietly without responding to their attacks.
o
Non-Verbal Communication:
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Body Language What It could mean
Avoiding eye contact Lack of confidence in bargaining
position
Making excessive eye contact Trying to bully or intimidate
Fiddling with objects such as
hair, pencils, or papers
Lack of confidence
Crossing and uncrossing the
legs
Impatient
Keeping legs and arms crossed Not receptive
MODULE 3: TRAINING GAME
FEATURES & BENEFITS
Duration:
These timings of this training game are quite flexible and you can use it to suit
your requirements.
Intended for:
Use this training game as a method of ensuring that participants understand the
value of product benefits when selling.
Contents:
Alternatively, you can follow the instructions below.
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Instructions:
Ask a member of the group to act as the customer and give a very brief outline of
their requirements for a product they wish to purchase. e.g. "I have to buy a
mobile phone for my wife. I would like something robust, portable and simple touse".
The rest of the delegates then have to sell that item focusing on the customers
needs.
The rules are:
The first person gives a feature e.g. "this phone has a slim style design" and thenpasses it onto the next participant who has to provide a benefit "which means
that, it will fit easily into your wife's purse".
It then gets passed to the third delegate who provides another feature, and the
fourth then provides the corresponding benefit - matching the customer's needs,
and so on. You then swap and have a different customer and/or product.
Objectives:
This training game is useful to highlight the importance of features and benefits in
a sales environment and provide an opportunity to practice each. The training
game would suit a sales skills training course or perhaps even a customer care
training course.
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TRAINING GAMEWITH INTEREST
Duration:
This training game should take about 20 - 30 minutes.
Intended for:
This training game can be used to demonstrate the impact of poor
communication skills on relationships.
Instructions:
Ask participants to work in pairs. One participant in the pair should talk about a
topic that is dear to their heart, a favorite holiday, hobby or sport.
The role of the other person is one of total disinterest. They should fidget in their
seat, turn away, not look at the person and generally be ignorant.
Review:
You should review this session by exploring the following questions with the
participants.
1. How did it make you feel to be ignored?
2. How did it feel to do the ignoring?
3. What might be the impact if this continued?
4. In 'real' life do you always show as much interest and listen as carefully as you
ought?
5. What is the impact of not listening?
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6. What would happen if we started to listen and show interest more in people?
7. How do you think we can demonstrate that we are interested?
8. What will be different?
Objectives:
This training game assists participants in developing their communication skills
and appreciating the impact their body language has on others.
VIDEOS
Also with addition to the above mentioned modules, some short video clippings
like the two below will be shown to the audience to ensure that they are engaged
in the training program
https://www.youtube.com/watch?v=7rzq2Bq_EsA
https://www.youtube.com/watch?v=1FeM6kp9Q80
https://www.youtube.com/watch?v=7rzq2Bq_EsAhttps://www.youtube.com/watch?v=7rzq2Bq_EsAhttps://www.youtube.com/watch?v=1FeM6kp9Q80https://www.youtube.com/watch?v=1FeM6kp9Q80https://www.youtube.com/watch?v=1FeM6kp9Q80https://www.youtube.com/watch?v=7rzq2Bq_EsA -
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Schedule for the training program
The training program will happen 3 days in a stretch, 2 sessions per day & will
be conducted twice in a year firstly in the month of April dates (5th
, 6th
& 7th
ofApril) & then in the month of October (18th,19th & 20thof October)
Number of instructors conducting the training program = 2
Batch size for each session = 30 employees per batch
Duration of each session = 3 & a half hour (Including tea break)
Number of sessions conducted each day = 2 sessions
1stsession (batch I) = 9:00 am12:30 pm
2ndsession (batch II) = 1:00 am4:30 pm
Venue: Godrej Campus
Time breakup for each session
Batch I: 9:00 am9: 30 am (snacks & tea would be served)
9:30 am10:00 am (icebreaker exercise = similar circles)
10:00 am- 11:30 am (classroom training)
11:30 am12:00 pm (management game = features & benefits)
12:00 pm12: 30 pm (management game = with interest)
Batch II 1:00 pm1:30 pm (icebreaker exercise = similar circles)
1:30 pm3:00 pm (classroom training)
3:00 pm3:30 pm (management game = features & benefits)
3:30 pm4:00 pm (management game = with interest)
4:00 pm4:30 pm (snacks & tea would be served)
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Training budget:
For the month of April Amount in rupees
Item Cost Per Number Cost
Training/Instructional Manuals 30 180 5400
Course development fees 15000 -- 15000
Certificates 50 180 9000
Facility Rental including
electricity ( all 3 days)
30000 -- 30000
Technical Equipment 15000 -- 15000
Stationary 5000 -- 5000
Tea & Snacks 50 192 9600
Instructors fees 50000 2 100000
per diem 437.50 180 78750
Total expenses in the month of April = 267750 rupees
For the month of October Amount in rupees
Item Cost Per Number Cost
Training/Instructional Manuals 30 180 5400
Course development fees 15000 -- 15000
Certificates 50 180 9000Facility Rental including
electricity ( all 3 days)
30000 -- 30000
Technical Equipment 15000 -- 15000
Stationary 5000 -- 5000
Tea & Snacks 50 192 9600
Instructors fees 50000 2 100000
per diem 437.5 180 78750
Total expenses in the month of October = 267750 rupees
Total Annual expenses = 535500 rupees
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Calculation of Per Diem:
o
Monthly salary of each employee = 31000 rupees
o
Per day salary of each employee = 1000 rupees
o Hourly salary of each employee (8 hours per day) = 1000/8 = 125
o
Number of hours lost by each employee = 3 & a half hour
o Per Diem for each employee = 437.5 rupees
o Therefore, per diem for 180 employees = 78750 rupees