CHAPTER13NegotiatingBuyerConcernsLearningObjectivesDescribetheprinciplesofformalnegotiationsaspartofawin-winstrategyDescribecommontypesofbuyerconcernsDiscussspecificmethodsofnegotiatingbuyerconcernsOutlinemethodsforcreatingvalueinformalnegotiationsWorkwithbuyerswhoaretrainedinnegotiatingSix-StepPresentationPlanApproach(Chapter10)Presentation(Chapter11)Demonstration(Chapter12)NegotiationCloseServicingtheSaleSix-StepPresentationPlanFIGURE13.1NegotiationDefinedWorkingtoreachanagreementthatismutuallysatisfactorytobothbuyerandsellerNegotiationisaprocessAbilitytonegotiateproblemsorobjectionsisamosteffectivewaytocreatevalueNegotiation:AWin-WinStrategyPersonalsellingisnota“weversusthey”processIftrustisstrong,negotiationbecomesapartnershiptoworkthrough,ifnot,negotiationbecomescombativeSeektomaintainlong-termrelationshipStrategicPlanningLeadstoActionsFIGURE13.2PlanningforFormalNegotiationsGatherinformationbeforethenegotiationDecideteamversusindividualnegotiationsforbothsellerandbuyerUnderstandthevalueofwhatyouareofferingDetermineyourgoalsandfinancialobjectivesPlanningforFormalNegotiationsPrepareanagendaReviewadaptivesellingstylesUsetheNegotiationsWorksheetTheNegotiationsWorksheetFIGURE13.3ConductingtheNegotiationSessionUnderstandtheproblemCreatealternativesolutionsthatcanaddvaluePeriodicallyreviewacknowledgedpointsofagreementDonotmakeconcessionstooquicklyBemindfulofyourtiming(ParetoLaw)KnowwhentowalkawayCommonTypesofBuyerConcernsCustomersmayhaveconcernsrelatedto:NeedfortheproductProductitselfSourceoftheproductTimingPriceNeedforProductConditionedresponse:“Idon’tneedtheproduct.”SincereneedresistanceagreatchallengeNotconvincedofyourproduct’sbenefitsBestwaytoovercome—proveyourproductisagoodinvestmentConcernsAbouttheProductorServicesProductnotwellestablishedPresentproduct/systemissatisfactoryConcernsRelatedtotheSourceofProductPositivewaystoovercomeinclude:WorkhardertoidentifyhowproductsolvesproblemsPointoutthesuperiorbenefitsofyourproductandyourcompanyWorkonrecruitinginternalchampionstobuildmoresupportforyourmessageTrytostayvisibleandconnectedConcernsRelatedtoTimeAlsoknownas“thestall”Usuallycustomerdoesnotperceivebenefitsofbuyingnow—orseesbothpositiveandnegativeinproductConcernsRelatedtoPricePriceisoneofthemostcommonbuyerconcernsSkillfulnegotiationinthisareaisrequiredPriceobjectionsmaybenothingmorethananexcuseTomostbuyers,valueismoreimportantthanpricePositionyourproductorservicewithaconvincingvaluepropositionCustomerswhoperceiveaddedvaluearelesslikelytoobjectonbasisofpriceSpecificMethodsforNegotiatingBuyerConcernsDirectdenialRefuteprospect’sopinionorbeliefBefirm,notoffensive,thinkwin-winIndirectdenialAcknowledgeprospectsaspartlyrightFeel-Felt-Found“Iunderstandhowyoufeel”“Othershavefeltthatway”“Untiltheyusedtheproductandfounditquiteeasyandreliable”SpecificMethodsforNegotiatingBuyerConcernsQuestionsConvertproblemintoneed-satisfactionquestion“Whatwoulda10percentreductioninemployeeturnoversaveyourcompany?”SuperiorbenefitAcknowledgeprospecthasvalidconcernandfocusonsuperiorbenefitSuperiorbenefitsshouldoutweighspecificcustomerconcernsSpecificMethodsforNegotiatingBuyerConcernsDemonstrationDiscusscompetitiveadvantagesofyourproductDemonstrationsovercomebuyerskepticismeffectivelyTrialofferProspecttriesproductwithoutpurchasecommitmentAskPositiveQuestionsIntheirbest-sellingTheNewConceptualSelling,authorsHeiman,Sanchez,andTulejarecommendusingquestionsframedinapositivewayratherthannegatively.SeetheWebsiteSpecificMethodsforNegotiatingBuyerConcernsThird-partytestimonyNeutralthird-partytestimonyaddscredibilityAlmostnevertriggersclientargumentPostponemethodPostponeanswerstoclientconcernsuntillaterindialogueExplainwhyyouwanttopostponeCreatingValueDuringFormalNegotiationsDoclarifypriceconcernswithquestionsDoaddvaluewithaclusterofsatisfactionsDonotmakepricefocalpointDonotapologizeforthepriceDopointouttherelationshipbetweenpriceandqualityDoexplainanddemonstratethedifferencebetweenpriceandcostThePriceIcebergPriceisonlythetipoftheiceberg.Remindcustomerofvalue-addedfactorsbelowtipFIGURE13.4The“WinnerintheShortRun”ThecavernousAirbusleadsonseatcostpermile,butthemuchlowerpricepertripoftheCRJ200makesitawinnerinthemindsofsomebuyers.FIGURE13.5WorkingwithBuyersTrainedinFormalNegotiationBudgetlimitationtacticTake-it-or-leave-ittacticLet’s-split-the-differencetactic“If....then”tactic“Selllownow,makeprofitslater”tacticSalesNegotiationTrainingAcclivusofferstheAcclivusSalesNegotiationSystemforsalespeoplewhoworkinthebusiness-to-businesssalesarena.SeetheWebsiteSalesNegotiationTrainingKarrassLimitedofferstheEffectiveSalesNegotiatingSeminarSeetheWebsiteKeyConceptDiscussionQuestionsDescribetheprinciplesofformalnegotiationsaspartofthewin-winstrategyDescribecommontypesofbuyerconcernsDiscussspecificmethodsofnegotiatingbuyerconcernsKeyConceptDiscussionQuestionsOutlinemethodsforcreatingvalueinformalnegotiationsDescribehowyouwouldworkwithbuyerstrainedinformalnegotiation13-*Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,recording,orotherwise,withoutthepriorwrittenpermissionofthepublisher.PrintedintheUnitedStatesofAmerica.Copyright©2010PearsonEducation,Inc. 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