NEGOTIATION

Negotiation is…….
Argument

Compromise Getting your

own way

Only Discussion
 Negotiation is …
Give & take

Reaching Psychological
Agreement warfare

Finding a mutually
acceptable 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 Negotiation
1. Professional
2. Personal
 Types Parties Examples
Involved
Family/Social 1.Family members 1. Buying or selling
Negotiation 2. Friends/ Social homes, cars or
Groups 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

ed
iT
em e Product
N

Sou
ecirP r ce
1.Concerns related to need for the product

“I do not need
your product”
No
“I am very happy
with my current
system”
“I am already
Not Required
overstocked”
1.Concerns related to need for the product

Keep different
varieties for
changing customer’s
No
demand
Accept a free
trial offer
Solution
Give credit
against a minimum
I am already overstocked opening order
 2.Concerns about the product

1. Not well established

Use laboratory test results

Third party testimonial from
satisfied users
Effective demonstration
Try to show more benefits
 2.Concerns about the product

2. Not Popular

Discuss sales results at

other firms
Show sample advertisement
 2.Concerns about the product

3. Friends & acquaintance

didn’t like

Use questions to pinpoint

the problem
Clarify any misinformation
 2.Concerns about the product

4. Present product is
satisfactory

Build greater amount of

Desire
Concentrate on superior
benefits
 3.Concerns related to source

ch
Understand prospects problem
ea r
o s ce and provide solution by your product
t
h ave sour
I t
bes
Emphasis on addition of a second line

Point out superior benefits of

your product

Encourage for trial order

Point out that the prospect’s first

obligation is to the business

Try to stay visible and connected

 4.Concerns related to price

A sales proposal
is sometimes
Like ICEBURG
o ra ble s
Fav t term
i
cred
AFTE
R
SERV SALE
ICE

ve ry
eli
d
uick
Q i cal
h n
tec
nt
e l le
Exc tance
s
assi
 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 Hesitation Request for……………..

“Price too high” Cost V/s Benefits Value articulation

“Think about it” Afraid to make a bad Create comfort,

decision provide proof

“Talk to boss” Unable to justify Risk reduction,

decision benefit review

“Need more quotes” Unsure you’re their Targeted solution

best option

“ Set with current Doesn’t see benefit Differentiation

provider” of change

“Bad history” “Past experience is Offer proof of

affecting current view” change
 Exercise # 1
Roles: 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 # 2
Roles: 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