negotiation
TRANSCRIPT
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