negotiation

NEGOTIATIONNEGOTIATIONNEGOTIATIONNEGOTIATION

Negotiation is…….

Argument

Getting yourown way

Compromise

Only Discussion

Negotiation is …

Give & take

Psychologicalwarfare

Reaching Agreement

Finding a mutuallyacceptable solution

Definition of Negotiation

Negotiation is working side by side to achieve mutually beneficial solutions.

Definition of Negotiation

“Negotiation is the art of reaching an agreement by resolving differences through creativity”

Definition of Negotiation

Soft:Participants are friends.The goal is agreement.Hard:Participants are adversaries.The goal is victory

How we learn

negotiation?

Types of Negotiation1. Professional2. Personal

Types PartiesInvolved

Examples

Family/Social Negotiation

1.Family members2. Friends/ Social Groups

1. Buying or selling homes, cars or whatever

2. Forming or breaking relationships

3. Dividing responsibilities or tasks amongst friends/family

4. Seeking to persuade others to a particular course of action

COMMON TYPES OF BUYER CONCERNS

Salespeople learn that patterns of buyer resistance exist

COMMON TYPES OF BUYER CONCERNS

Product

Source

Time

Price

Need

1.Concerns related to need for the product

No

Not Required

“I do not need your product”

“I am very happy with my current system”

“I am already overstocked”

1.Concerns related to need for the product

No

I am already overstocked

Keep different varieties for changing customer’s demand

Accept a free trial offer

Give credit against a minimum opening order

Solution

2.Concerns about the product

1. Not well established

Use laboratory test resultsThird party testimonial from satisfied usersEffective demonstrationTry to show more benefits

2.Concerns about the product

2. Not Popular

Discuss sales results at other firmsShow sample advertisement

2.Concerns about the product

3. Friends & acquaintance didn’t like

Use questions to pinpoint the problemClarify any misinformation

2.Concerns about the product

4. Present product is satisfactory

Build greater amount of DesireConcentrate on superior benefits

3.Concerns related to source

I have to

search best

source

Understand prospects problemand provide solution by your product

Emphasis on addition of a second line

Point out superior benefits of your product

Encourage for trial order

Point out that the prospect’s firstobligation is to the business

Try to stay visible and connected

4.Concerns related to price

Favorable

credit

terms AFTER SALE SERVICE

Quick delivery

Excellent

technical

assistance

A sales proposal is sometimesLike ICEBURG

4.Concerns related to price

1. Budget limitation tactic

Reduce price by eliminating some items

4.Concerns related to price

2. Take-it-or-leave-it-tactic

Confidently review the superior benefits and make another closing attempt

4.Concerns related to price

3. Let-us-split-the-difference tactic

Give a counteroffer

4.Concerns related to price

HOW TO DEAL WITH PRICE CONCERN?

Add value with a cluster of satisfaction

Do not make price your focal point

Relationship b/w price & quality

Explain difference b/w price & cost

Don’t apologize for the price

Don’t make concession too quickly

5.Concerns related to Time

Prospect has positive as well as negative feelings

“Do you have any concern about our warranty program?”

“Does anyone else need to approve this purchase?”

Objections = Requests

Objection Source of HesitationRequest for……………..

“Price too high” Cost V/s Benefits Value articulation

“Think about it” Afraid to make a bad decision

Create comfort, provide proof

“Talk to boss” Unable to justify decision

Risk reduction, benefit review

“Need more quotes”

Unsure you’re their best option

Targeted solution

“ Set with current provider”

Doesn’t see benefit of change

Differentiation

“Bad history” “Past experience is affecting current view”

Offer proof of change

Exercise # 1Roles: Satish is sales officer with Fast Couriers Ltd. Mr. Rao is Administrative Manager with Golden Foods Pvt. Ltd.

Background: Courier services offered by the Satish are the cheapest in the market. Satish is going to meet Mr. Rao for an order, but Mr. Rao is mentioning that they need a courier who can adopt to the flexible requirement of the company-sometimes letters have to be sent early in the morning and some times late in the evening. He is also saying that your prices are high.

Time: 5 minutes

Exercise # 2Roles: Alok is sales executive with M/s Golden motors Ltd. which deals in Cars( range from 6 lacs to 15 lacs). Mr. Ravi is prospect who is a Senior Executive in Infocus Ltd.

Background: Mr. Ravi wants to take small cars worth Rs. 4 lacs , because he has not been claiming Car Allowance from his company. He has small family of 5 person , which includes his wife, 3 small children- 9,7 and 5 years old- and of course, himself, but Alok wants to sell his car range 6 lacs to 7 lacs to Mr. Ravi.

Time: 5 minutes