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Mastering Buyer Concerns: Negotiation Strategies and Tactics

Learn negotiation strategies to address common buyer concerns such as pricing, product value, and timing. Develop skills in overcoming objections and dealing with trained buyers.

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Mastering Buyer Concerns: Negotiation Strategies and Tactics

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  1. 9TH EDITION Selling Today Manning and Reece CHAPTER 12 NEGOTIATING BUYER CONCERNS

  2. LEARNING OBJECTIVES • Describe common types of buyer concerns • Outline general strategies for negotiating buyer concerns • Discuss specific methods of negotiating buyer concerns • Describe ways to deal with buyers who are trained in negotiating

  3. SIX-STEP PRESENTATION PLAN 1. APPROACH 2. PRESENTATION 3. DEMONSTRATION 4. NEGOTIATION 5. CLOSE 6. SERVICE See details Figure 12.1.

  4. WIN-WIN STRATEGYNEGOTIATION DEFINED Negotiation Is A Process ”,,,working to reach an agreement that is mutually satisfactory to both buyer and seller. It involves building relationships instead of one-time deals.”

  5. NEGOTIATION PLANNING LEADS TO ACTIONS STRATEGIC PLANNING FOR NEGOTIATING ACTIONS DURING NEGOTIATIONS See Figure 12.2.

  6. COMMON TYPES OF BUYER CONCERNS NEED FOR PRODUCT PRODUCT ITSELF SOURCE OF PRODUCT PRICE TIMING

  7. NEED FOR PRODUCT • Conditioned response: I don’t need the product • Happy with current product • Not convinced of your product’s benefits

  8. ABOUT THE PRODUCT • Product not established • Product will not be popular • Associates didn’t like the product • Present product/system is satisfactory

  9. SOURCE OF PRODUCT • Ways to overcome resistance --Identify how product solves problems --Superior benefits of your product --Client profits by adding second line --Place trial order to evaluate merits --Recruit champions inside buyer’s firm --Stay visible and connected to client

  10. PRICE CONCERNS—TRAINED BUYERS • Buyers trained in negotiating --Budget Limitation Tactic --Take-It-or-Leave-It --Split-the-Difference

  11. PRICE CONCERNS—LOW PRICE STRATEGY • Buyers seeking low price --Sales executives able to apply various discounts --Downside, lower profits and lower commissions

  12. DEALING WITH PRICE CONCERNS • Do add value, stress service • Don’t make price focal point • Don’t apologize for your prices • Do point out price/quality relation • Explain difference between price and cost • Don’t make concessions too quickly

  13. PRICE ICEBERG Price is only the tip of the iceberg…remind customer of value-added factors below tip

  14. PRICE VERSUS COST EXAMPLE Note how Canada’s Bombardier positions its CRJ against Airbus. Figure 12.4

  15. CONCERNS RELATED TO TIME • Also know as “the stall” • Signals conflict • Usually customer does not perceive benefits of buying now…or…sees both positive and negative in product

  16. CUSTOMER OBJECTIONS Customer objections are often requests for more information to justify buying decision See Table 12.1 in text for samples See Table 12.1

  17. NEGOTIATING BUYER CONCERNS • Anticipate and forestall • Know value of your offering • Prepare for negotiations • Understand the problem • Create alternative solutions • Find points of agreement • Avoid anger

  18. SPECIFIC METHODS-1 • 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”

  19. SPECIFIC METHODS-2 • Questions --Convert problem into question --Do you agree it’s worth paying a little more for much higher quality? • Superior benefit --Acknowledge prospect has valid concern and focus on superior benefit --Superior benefits should outweigh specific customer concerns

  20. SPECIFIC METHODS-3 • Demonstration --Discuss competitive advantages of your product --Might also involve physical product demonstrations • Trial offer --Prospect tries product without purchase commitment

  21. SPECIFIC METHODS-4 • Third-party testimony --Neutral third-party testimony adds credibility --Almost never triggers client argument • Postpone method --Postpone answers to client concerns until later in dialog --Explain why you want to postpone

  22. APPLICATION:DIGITAL ELECTRONICS • Go to a consumer electronics store and ask for help with laptop/notebook PCs • Raise a series of concerns and note how salesperson reacts -- Price too high -- Heard that brand “XYZ” is bad -- Maybe its not time to buy Last slide Chapter 12.

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