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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Copyright 2010 Pearson Education,Inc.Publishing as Prentice Hall,13-,*,CHAPTER,13,Negotiating Buyer Concerns,1,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,2,Six-Step Presentation Plan,Approach,(Chapter 10),Presentation,(Chapter 11),Demonstration,(Chapter 12),Negotiation,Close,Servicing the Sale,3,Six-Step Presentation Plan,FIGURE,13.1,4,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,5,Negotiation:A Win-Win Strategy,Personal selling is not a“we versus they process,If trust is strong,negotiation becomes apartnership to work through,if not,negotiation becomes combative,Seek to maintain long-term relationship,6,Strategic PlanningLeads to Actions,FIGURE,13.2,7,Planning for Formal Negotiations,Gather information before the negotiation,Decide team versus individual negotiations for both seller and buyer,Understand the value of what you are offering,Determine your goals and financial objectives,8,Planning for Formal Negotiations,Prepare an agenda,Review,adaptive selling styles,Use the Negotiations Worksheet,9,The Negotiations Worksheet,FIGURE,13.3,10,Conducting the Negotiation Session,Understand the problem,Create alternative solutions that can add value,Periodically review acknowledged points of agreement,Do not make concessions too quickly,Be mindful of your timing(Pareto Law),Know when to walk away,11,Common Types of Buyer Concerns,Customers may have concerns related to:,Need for the product,Product itself,Source of the product,Timing,Price,12,Need for Product,Conditioned response:“I dont need the product.,Sincere need resistance a great challenge,Not convinced of your products benefits,Best way to overcomeprove your product is a good investment,13,Concerns About the Product or Services,Product not well established,Present product/system is satisfactory,14,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,15,Concerns Related to Time,Also known as“the stall,Usually customer does not perceive benefits of buying nowor sees both positive and negative in product,16,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,17,Specific Methods for Negotiating Buyer Concerns,Direct denial,Refute prospects 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,18,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,19,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,20,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 theWebsite,21,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,22,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,23,The Price Iceberg,Price is only the tip of the iceberg.Remind customer of value-added factors below tip,FIGURE,13.4,24,The“Winner in the Short Run,The cavernous Airbus leads on seat
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