Presentation is loading. Please wait.

Presentation is loading. Please wait.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns.

Similar presentations


Presentation on theme: "Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns."— Presentation transcript:

1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns

2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-2 Learning Objectives Describe the principles of formal negotiations as part of a win-win strategy Describe common types of buyer concerns Discuss specific methods of negotiating buyer concerns Outline methods for creating value in formal negotiations Work with buyers who are trained in negotiating

3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-3 Six-Step Presentation Plan 1.Approach (Chapter 10) 2.Presentation (Chapter 11) 3.Demonstration (Chapter 12) 4.Negotiation 5.Close 6.Servicing the Sale

4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-4 Six-Step Presentation Plan FIGURE 13.1

5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-5 Negotiation Defined Working to reach an agreement that is mutually satisfactory to both buyer and seller Negotiation is a process Ability to negotiate problems or objections is a most effective way to create value

6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-6 Negotiation: A Win-Win Strategy Personal selling is not a “we versus they” process If trust is strong, negotiation becomes a partnership to work through, if not, negotiation becomes combative Seek to maintain long-term relationship

7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-7 Strategic Planning Leads to Actions FIGURE 13.2

8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-8 Planning for Formal Negotiations 1.Gather information before the negotiation 2.Decide team versus individual negotiations for both seller and buyer 3.Understand the value of what you are offering 4.Determine your goals and financial objectives

9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-9 Planning for Formal Negotiations 5.Prepare an agenda 6.Review adaptive selling styles 7.Use the Negotiations Worksheet

10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Negotiations Worksheet FIGURE 13.3

11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Conducting the Negotiation Session 1.Understand the problem 2.Create alternative solutions that can add value 3.Periodically review acknowledged points of agreement 4.Do not make concessions too quickly 5.Be mindful of your timing (Pareto Law) 6.Know when to walk away

12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Common Types of Buyer Concerns Customers may have concerns related to: Need for the product Product itself Source of the product Timing Price

13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Need for Product Conditioned response: “I don’t need the product.” Sincere need resistance a great challenge Not convinced of your product’s benefits Best way to overcome—prove your product is a good investment

14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Concerns About the Product or Services Product not well established Present product/system is satisfactory

15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Concerns Related to the Source of Product Positive ways to overcome include: Work harder to identify how product solves problems Point out the superior benefits of your product and your company Work on recruiting internal champions to build more support for your message Try to stay visible and connected

16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Concerns Related to Time Also known as “the stall” Usually customer does not perceive benefits of buying now—or sees both positive and negative in product

17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Concerns Related to Price Price is one of the most common buyer concerns Skillful negotiation in this area is required Price objections may be nothing more than an excuse To most buyers, value is more important than price Position your product or service with a convincing value proposition Customers who perceive added value are less likely to object on basis of price

18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Specific Methods for Negotiating Buyer Concerns Direct denial Refute prospect’s opinion or belief Be firm, not offensive, think win-win Indirect denial Acknowledge prospects as partly right Feel-Felt-Found “I understand how you feel” “Others have felt that way” “Until they used the product and found it quite easy and reliable”

19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Specific Methods for Negotiating Buyer Concerns Questions Convert problem into need-satisfaction question “What would a 10 percent reduction in employee turnover save your company?” Superior benefit Acknowledge prospect has valid concern and focus on superior benefit Superior benefits should outweigh specific customer concerns

20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Specific Methods for Negotiating Buyer Concerns Demonstration Discuss competitive advantages of your product Demonstrations overcome buyer skepticism effectively Trial offer Prospect tries product without purchase commitment

21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Ask Positive Questions In their best-selling The New Conceptual Selling, authors Heiman, Sanchez, and Tuleja recommend using questions framed in a positive way rather than negatively. See the Website

22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Specific Methods for Negotiating Buyer Concerns Third-party testimony Neutral third-party testimony adds credibility Almost never triggers client argument Postpone method Postpone answers to client concerns until later in dialogue Explain why you want to postpone

23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Creating Value During Formal Negotiations Do clarify price concerns with questions Do add value with a cluster of satisfactions Do not make price focal point Do not apologize for the price Do point out the relationship between price and quality Do explain and demonstrate the difference between price and cost

24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Price Iceberg Price is only the tip of the iceberg. Remind customer of value-added factors below tip FIGURE 13.4

25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The “Winner in the Short Run” The cavernous Airbus leads on seat cost per mile, but the much lower price per trip of the CRJ200 makes it a winner in the minds of some buyers. FIGURE 13.5

26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Working with Buyers Trained in Formal Negotiation Budget limitation tactic Take-it-or-leave-it tactic Let’s-split-the-difference tactic “If....then” tactic “Sell low now, make profits later” tactic

27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Sales Negotiation Training Acclivus offers the Acclivus Sales Negotiation System for salespeople who work in the business- to-business sales arena. See the Website

28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Sales Negotiation Training Karrass Limited offers the Effective Sales Negotiating Seminar See the Website

29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Key Concept Discussion Questions Describe the principles of formal negotiations as part of the win-win strategy Describe common types of buyer concerns Discuss specific methods of negotiating buyer concerns

30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Key Concept Discussion Questions Outline methods for creating value in formal negotiations Describe how you would work with buyers trained in formal negotiation

31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


Download ppt "Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 13-1 CHAPTER 13 Negotiating Buyer Concerns."

Similar presentations


Ads by Google