SONEGA - Negotiation 2019 - Students

Msc in Sports Industry Management
Negotiation Skills
Hans SCHLIERER
January/February 2019
Sales management and negotiation team
▪ Members:
▪ 2 full-time professors
Christian SIMON Hans SCHLIERER
▪ 14 negotiation professionals (associate professors):

▪ N. Davy, S. Delmon, L. Feneyrolles, P. Hari, S. Hilaire, P.
Maitrepierre, J.J. Margaine, O. Mekdjian, P. Pietruszka, O.
Prost, P. Buchon, M. Montolio
Msc in Sports Industry Management - Negotiation Skills

Sales management and negotiation team
▪ Activities
All sectors requiring specific competencies in B2B
negotiations
▪ Clients:
- All EMLYON Business School programs
- Companies:
▪ IBM, Alcatel, Lyonnaise de Banque, Canal+, Michelin, LCL,
Keolis, Renault Trucks, Saint-Gobain, Danone, Auchan etc…

Course objectives
▪ Make you familiar with the B2B negotiation
▪ Recognize the different stages of any negotiation
▪ Learn how to conduct a negotiation process in real situations
▪ Highlight the importance of negotiation in any function

and position in any organization
▪ Train you to master the B2B key negotiation techniques

Course organization
1st half day Presentation + Concept and strategies 3h
2nd half day Making contact + understanding requirements 3h
3rd half day Outlining the offer + How to conclude 3h
4th half day Negotiation exercise 3h

Definition
▪ Face to face activity between two or more parties.
The parties have divergent interests but feel
interdependent.
▪ They intend to reach an agreement to overcome

divergences and to built and maintain a mutual
relationship.

Negotiation types
▪ Social
▪ Diplomatic
▪ Legal
▪ …
▪ Business
▪ External
▪ Selling
▪ Purchasing
▪ Collaboration (Joint venture, supplier integration…)
▪ Internal

Main reasons for divergences
▪ Objectives
▪ Values
▪ Facts, reasons, solutions
▪ Negotiator status + role
▪ Language
▪ Culture
Picture from www.priceline.com

Strategies
+ Power
- Trust + Trust
Source : M. Cathelineau
- Power

Strategies
Strong Power
Low High
Trust Trust
Weak Power

Integrative Strategies
High
Trust Strategies Techniques Tactics
Power
Strong
• Give and • Constructive proposals
Open
Take • Make counter proposals
• Compromise
• Summarize • Trial close
Balanced Win-Win Objective • Make credible promises
• Use a third party (mediator)
• Enlarge • Give and accept equally
Transform extensions
Weak Request • Trials, tests
• Globalization
• Creative approach
•…

Distributive Strategies
Low
Trust Strategies Techniques Tactics
Power
• Threat
“Attack” • Packaging • Fait accompli
Strong
• Ultimatum
Aggressive • “Salami”
• “Grilling” the client
• Harassment
• Manipulation of • Create a surprise
Balanced Defensive the timeframe • Change negotiators
• Divide up
• Decoy, Illusion • Change Position
• Pretend to “Quit”
• Minimize Concessions
Weak Bargaining • …

3 key STEPS to succeed in negotiation
1. The preparation
2. Handling face-to-face negotiation
3. The follow-up

Objectives
Step 1: Preparation • Quantitative et Qualitative
• Short, medium, and long term
• Principle and fallback position
Client
Margin to Means
Manoeuvre
• "Techniques"
• Human dimension
• Financial
Scenarios
Power
• Orientation
• Strategies
Stakes Relation- • Primary techniques
ship • Tactics
Material Face to face

• Making contact
• Discovering needs
Mental • Develop the supplier’s offer
• Conclusion
• Common points • Techniques of Negotiation

• Research Guide • Role plays
• Mental visualization
• Sales Manual
• Etc...
• Etc...

Step 2: Handling face-to-face negotiation
4 big PHASES
▪ Making contact
Create added value
▪ Understanding requirements
▪ Developing the offer

Negotiate – sell added value
▪ The conclusion

4 big PHASES
▪ Making contact
▪ The conclusion

Making Contact
▪ Objective = facilitate the communication and exchange
▪ Key steps
▪ Establishing rapport → create a positive impression
▪ Validate timing → respect, adapt yourself
▪ Propose ‘layout / structure’ → be at ease with preparation
▪ Presentation → build trust in your company and yourself
▪ Visit objective interest → create professional coherence, drive
▪ Action plan professionalism → structure the sales call, express
▪ …and only then: move to phase 2!

Individual approaches and preferences
Interest for the Client
9 1,9 9,9
PHILANTHROPIC
8
SOLUTIONS
6
RELATIONSHIP DIMENSION
EMPATHY 5,5
5
ROUTINE
4
2
INDIFFERENT AGRESSIVE
1 1,1 9,1
1 2 3 4 5 6 7 8 9
AGRESSIVITY DIMENSION Interest for Sales

Source : BLAKE and MOUTON

Communication principles
55%
VERBAL NON VERBAL
7%
Appearence
Words
Face
Sentences
Movements
PARAVERBAL
38%
Voice, tone

4 big PHASES
▪ Making contact
▪ The conclusion

Understanding requirement
Listen ... to understand your client’s requirements,
expectations and stakes

Communication principles
Sender’s Receiver’s
message message understanding
Feedback required

Selling approach – old way
Salesman Buyer

Sales approach – Key Account
Management (KAM)
Key Account Manager Category Manager

Team Leader Team leader
Project manager Project manager
etc … etc …
Key account team
Consultant Prescriptor …
Buying center

Interorganizational buying process
▪ Key account team: all individuals forces put together on
the selling side to build the customer's project
▪ Buying center: all individual forces put together on the

buying side to brief the provider and then to select the
best solution (offer)
▪ Key stakeholders: one individual in the key account

team and on the buying center in charge of coordinating
internally and externally the different forces in their
respective organization during the negotiation

Buying process
▪ Objective: determine the role and the importance of
each individual in the buying center for the decision
making process
▪ Role definition:
▪ Decision maker
▪ Buyer
▪ Stakeholder, consultant
▪ Sponsor
▪ User
▪ Sleeping partner (family organizations)

Listen …
... to understand your client’s requirements, expectations
and stakes
How ?

What: technical requirements
▪ Such as…
▪ the technical needs
▪ the company, history, culture, services, products,…
▪ the buying process
▪ the inter-organizational buying behaviour
▪ Buyer
▪ Decision maker
▪ Sponsor
▪ Opinion leader
▪ User
▪ …
▪ etc…

What: psychological interpretation
▪ Project stakes…
▪ Strategic or not?
▪ Banal or not?
▪ Purchase motivations

Purchase motivations
▪ Safety
▪ Status
▪ Novelty
▪ Convenience
▪ Price
▪ Sympathy

How: ACTIVE LISTENING …
techniques to understand

How: EFFICIENT QUESTIONS
▪ Open Make people talk
Why, how, what is…?
▪ Semi-open Help to clarify

Who, where, when, how much, which?
▪ Alternative 2 possible answers only

Black or white?
▪ Closed Yes or No
Usually start with a verb : can you meet with me?

Golden rules
1. Ask ONE question at a time
- i.e. no multi-part questions!!!
2. Take notes

How: the discovery guide
General The organization
The spokesperson
The organigram
The projets
The requirements
The needs
The
competition
The
budget
…
Specific

Qualification guide
+
+ - + +
• Short term • Short term
Project attractiveness
• Commercial / Manager • Commercial / Technical

• Invest • Invest
• Go • Go
- - - +
• Long term • Medium term
• Commercial / Mass Market • Commercial
• Get out the business • Inform
• No go • ?
-
- My company assets +

Summarize the key points
▪ List each of the key requirements, needs, …
▪ Mention the stakes and expected results
▪ Validate consistency between requirements and motivations
▪ Each point must get acknowledgement
▪ In case of disagreement, return to ‘understanding requirements’
and … validate that nothing was missed

Understanding requirements / offer process
Client informations
Understanding requirements
Keep Forget
Assets 1,2,3,… Issues 1,2,3,…
True False
Summarize
keypoints
Prepare the offer
Argumentation Objection Handling
Tailored offer
Summarize agreements / issues
Argumentation Objection handling

4 big PHASES
▪ Making contact
▪ The conclusion

Offer complexity
Associated services
Trade terms
Notoriety, image, branding
Product
Company, distribution network
Sales team
Inspired from : Blanc – Le Gall (2006)

Outlining the offer
Convincing is proving to our clients that our solution

is the one that best fits their needs, requirements and
stakes.

Outlining the offer
Buiding an ‘argument’
Argument / Statement
Proof
Client benefits / advantages
Agreement (YES)

Presenting arguments

Objections
▪ An objection is a client’s signal to you.
▪ At the beginning, objections are often and mainly

irrational.
▪ Later, the client becomes more rational and objections

focus on specific points (technology,…).
▪ Behaviour:
▪ Remain positive: an objection is normal and a proof of a
client’s interest in your offer!!!

Objections types
▪ Honest with valid grounds True
or
▪ Honest with non valid grounds False
▪ Dishonest

Attitudes for objections
▪ Stay cool
▪ Think first – do not react immediately
▪ Avoid contradicting your client
▪ Listen carefully and with interest
▪ Understand why the client objects
▪ Treat the objection with respect
▪ Respond clearly and succinctly

Some objection handling techniques
▪ Dismantle
▪ Transform
▪ Compensate
▪ Postpone
▪ …

Specifics: price objections
The objection The objection is

concerns in a first product driven by the
place the product / solution financial conditions
price equation linked to the product

Specifics: handling price objections
PRODUCT / PRICE
▪ Announce the price as soon as possible.

reference!
▪ The price must be in line with the market price

(credibility).
▪ The negotiation will take place around the announced

price (reference).

Specifics: handling price objections
FINANCIAL SOLUTION
▪ The sales person must take the initiative to discuss the
financial conditions.
▪ The price is not a component of service, but a result of
the service.
▪ Explain the components of your price.
▪ Do not focus on the price but negotiate on the financial
aspects in general.
▪ Never change the price in front of a prospect without any
compensation.

4 big PHASES
▪ Making contact
▪ The conclusion

Possible outcome

Conclusion: possible outcome
▪ An agreement
▪ Some progress
▪ A possible deal → stand-by
▪ A worsening
▪ A failure

The conclusion
▪ Who should conclude ? _______________________.
▪ When to conclude ? .
▪ How to conclude ? .

Winning attitudes
▪ Have and express a clear willingness to conclude
▪ Take initiative
▪ Be confident
▪ Don’t stop your efforts – be perseverant
▪ Think long term (transactional <> relationnal)

Process / appropriate timing
▪ Do not follow but accompany the client in the buying
process
▪ Do not create a rupture in the client relationship
▪ Materialize the convergences and the next steps (to

do’s, points to finalize, agenda,…)
▪ Signals:
▪ Silence
▪ Yes (repetitive)
▪ Positive objections

Structure
▪ Summarize the benefits presented to and accepted by
the client.
▪ Propose an action plan involving both yourself and the

client (co-production).
▪ Verify that the client has accepted the plan.

Step 3: The follow-up
▪ Success:
▪ Deal with the client’s anxiety / concerns
▪ Deliver against your promisses
▪ Update your CRM
▪ Work with your organization to support the project
▪ Understand and reuse the negotiation success criteria
(learning effect)
▪ Failure:
▪ Follow up with your client
▪ Analyse and understand why you failed


SONEGA - Negotiation 2019 - Students

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SONEGA - Negotiation 2019 - Students

Uploaded by

Copyright:

Available Formats

Msc in Sports Industry Management

Christian SIMON Hans SCHLIERER

▪ 14 negotiation professionals (associate professors):

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

▪ Highlight the importance of negotiation in any function

▪ Train you to master the B2B key negotiation techniques

Msc in Sports Industry Management - Negotiation Skills

1st half day Presentation + Concept and strategies 3h

2nd half day Making contact + understanding requirements 3h

3rd half day Outlining the offer + How to conclude 3h

4th half day Negotiation exercise 3h

Msc in Sports Industry Management - Negotiation Skills

▪ They intend to reach an agreement to overcome

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

▪ Facts, reasons, solutions

▪ Negotiator status + role

Picture from www.priceline.com

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

2. Handling face-to-face negotiation

Msc in Sports Industry Management - Negotiation Skills

Material Face to face

• Common points • Techniques of Negotiation

Msc in Sports Industry Management - Negotiation Skills

▪ Developing the offer

Msc in Sports Industry Management - Negotiation Skills

▪ Developing the offer

Msc in Sports Industry Management - Negotiation Skills

▪ …and only then: move to phase 2!

Msc in Sports Industry Management - Negotiation Skills

AGRESSIVITY DIMENSION Interest for Sales

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

▪ Developing the offer

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Key Account Manager Category Manager

Key account team

Msc in Sports Industry Management - Negotiation Skills

▪ Buying center: all individual forces put together on the

▪ Key stakeholders: one individual in the key account

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

▪ Semi-open Help to clarify

▪ Alternative 2 possible answers only

Msc in Sports Industry Management - Negotiation Skills

Msc in Sports Industry Management - Negotiation Skills

General The organization

Msc in Sports Industry Management - Negotiation Skills

• Commercial / Manager • Commercial / Technical

Msc in Sports Industry Management - Negotiation Skills