promotion and negotiation methods & sales...

PROMOTION AND NEGOTIATION METHODS & SALES

TECHNIQUESFACULTY OF ENGINEERING MANAGEMENT

Ph.D., Eng. Joanna Majchrzak

Department of Marketing and Economic Engineering

Mail: [email protected]

Meetings: Monday 13:00 – 14:30

Wednesday 11:30 – 13:00

Room 316, Strzelecka Street

Promotion & Negotiation and Sales Technique 1

mailto:[email protected]

Schedule1. Introduction & Marketing

2. Marketing Communication & Promotion

3. Promotion decision and tools

4. Sales Technique – Sales Promotion and Personal Selling

5. Sales Technique – Sales Force Management

6. Negotiations

7. Credit:

- Test (open question The table of contents and case study) 6 PRESENTATIONS

- Classes attendance and activities


negotiation• Negotiation is a dynamic process of adjustment by which two parties,

each with their own objectives, confer together to reach a mutually satisfying agreement on a matter of common interest

• Negotiation is everyday life

• In modern organizations, negotiation may be just another type of communication skill used to get on with outhers (participatory and decentralised / groups, teams, divisions, profit centres – all of theseneed some decision-making power to function)

• Wherever there is a power, and wherever decision need to be made –negotiaiton skills are used

• Bad press – the „negotiation” is code for „manipulation” or „lying”

Promotion & Negotiation and Sales Technique 3Contract negotiation handbook – secound edition, P.D.V MARSH

the stages in a negotiation1. Selling to the customer

2. Identifying the gap:

• Where is it ?

• What is it ?

• How big is it ?

3. Preparing to negotiation:

• Analysis both the customer’s need and our own

• Deciding what we want from the deal and how we are going to achieve it

• Adopting starting positions, or stances

• Exchanging concessions and trading to bridge the gap


RememberYou do not always have to negotiate - your aim should be to sell and close the sale in your standard terms and conditions of sale, with no gap to be bridged by negotiation

Manual of Sales Negotiation, John Lidstone, 1991

6.1. Getting YES


Getting to YES• „Getting to YES” Negotiaating agreement without giving in, By Roger Fisher and William

Ury with Bruce Patton, editor, 1983

• Like it or not, you are a negotiator.

• Negotiation is a fact of life.

• Everyone negotiating something every day

• You will be more effective if you believe what you are saying and doing.

• Don’t use the ideas as if you were wearing someone else’s clothes. Cut and fit them until you find an approach that makes sense and is comfortable.

• Negotiation is a basic means of getting what you want from others.

Promotion & Negotiation and Sales Technique 6„Getting to YES” Negotiaating agreement without giving in, by Roger Fisher and William Ury with Bruce Patton, editor, 1983

Getting to YESNegotiations take place at two levels:

(1) substance … the issue, the topic, what the negotiation is about.

(2) procedure … how you will negotiate, seems to escape notice and happen without conscious decision. It’s a game about a game. Each move structures and refines the rules of the game.


krazydad.com pamela.ramali.net

Getting to YESPrincipled Negotiation

(1) PEOPLE … separate the people from the problem. Remove the emotions,

perceptions and human communications difficulties.

(2) INTERESTS … focus on interests, not positions. A position often obscures

what you really want.

(3) OPTIONS … generate possibilities before making the final decision.

Pressure and adversity narrow your vision, inhibit creativity.

(4) CRITERIA … insist that the result be based on an objective standard. One

side’s “say so” is not sufficient.


6.2. Negotiation Model


A model of negotiation


Confirm itDocument/ understanding

Negotiate ? Choose data Research

Choose approachesPlanningGoalsPositionInterestsFallbacksBottom linesConcessionsTerritoryPowerTimePrinciples

Choose peopleIndividual / team

Choose toolsNon-verbalsensitivityListening skillsQuestionongskillsPersuasive skillsCulturalsensitivityCommunicationchannelsStrategies and tactics

Do itnegotiate

Agree ? YES / NO

Walk away

No / BATNA / Plan B

Yes

Try again

Temporary eqailibrium

Negotiation Skills, Eunson Baden, John Wilkey&Son, 1994, p. 3



Negotiate ? Negotiation is usually something that takes place between twoindividuals or groups of individuals – two sides

OS (our side) TOS (the other side)

Try to resolve a dispute or conflict by punching someone on the nose, orgoing on strike, or going to court, orgoing to war, or doing nothing, orwalking away

BATNA (Best Alternative to a Negotiated Agreement) oras a Plan B – can be a very powerfull negotiation tactic, just as it can be a distinct drawback in negotiation to demonstrate that you have no option but to negotiate(and for example, you are not free to walk away)

Negotiate




Choose data Research

• The essence of all good negotiation is preparing and planning, and the essence of all good preparation and planning is research

• You will need to try and predict the behaviour of TOS, and you will do that be constructing theories about tchem

• What do you know about the other side (TOS) ? • Are they in growth phase or in decline ? • Are they flush with funds or verging on bankruptcy ? • What is their possition within the wider industry ? • Do the people you are going to face over a table have the personal

health and stamina to stand up to the stresses of a protractednegotiation ?

• Are they liked or disliked within their organization – why / why not ?• What about the other sides – your competitors, who also want to sell

or buy ? / what do you know about them ? And what they areoffering/demanding ?




Choose approachesPlanningGoalsPositionInterestsFallbacksBottom linesConcessionsTerritoryPowerTimePrinciples

• You need to clarify things about your own side and make some informed guesses aboutthose same things as they relate to TOS

• What the goals?• What are you both trying to achive?• What motivates you?• What will you be happy with? • What will the opening position be?• Will you open high (we won’t take a penny less then $4000) or low (we think $3000 is a

reasonable figure. What to you say?)• Will they concentrate on price, or will they try and put together a package that involves

price, service, spare parts and training?

• Are there any interests that are mutual to both sides, so that both can „win” negotiation ? – what it is you agreeon ?

• The motivation patterns „people don’t just want to save money; they want to save face, too”.• BOTTOM LINE – how does one reach the bottom line ?




Choose peopleIndividual / team

• Single negotiator or send a tem• organizational structure

www.nicurriculum.org.uk

shrinkfittingservices.bizNegotiation Skills, Eunson Baden, John Wilkey&Son, 1994, p. 3



• The complete negotiator is the complete communicator• As such, a negotiator has to aware not only of what is being said, but what is being unsaid – the

aspects of non-verbal communication, such as posture, gesture, eye contact, clothing• The good negotiator needs to be a good listener – to listen for signals, hidden meanings, and, at

more basic level, to simply concentrate on what is being said and to put aside other matters• The good negotiator also know how to ask questions, and how to use persuasive language and

concepts• Culture differences• Communication channels: face-to-face (formal meetings, informal meetings, and by the use of third

parties), or mediated (teleconference)

• Strategies and tactics of negotiationLOWBALLING – making the offer much more attractive then TOS might reasonably expect (future volume, plugged TOS into the production stream)BREAK DEADLOCKS – involves a simple arthimetical division of the sum of the two sides (price, delivery date, completiondeadline etc.)USE OBJECTIVE CRITERIA – if data exists – the resourse to that data can save a lot of time and emotional enegry(subjectivity)PILOT STUDY / TRIAL – a usefull way of producing an action-oriented compromise, when no or little data exists as a basisfor agreement and final agreement will not be produced until data is producedSUMMARISE / WHAT IF / MANUPLATE TIME / DEADLINE ETC

Choose toolsNon-verbal sensitivityListening skillsQuestionong skillsPersuasive skillsCultural sensitivityCommunication channelsStrategies and tactics


Getting to YESTwo ways to negotiate:

• Soft (avoid personal conflict)

• Hard (sees any situation as a contest)

• PRINCIPLED NEGORIATION

„Every negotiation is different, but the basic elements do not change. Principlednegotiation is an all-purpose strategy … hard on merits, soft on people. If the other side learns it too, principled negotiation does not become more difficult. It becomes easier!”

Questions:

• What if the other side is more powerful? (Develop your BATNA … Best Alternative To a Negotiated Agreement. That is the standard against which any proposed agreement should be measured)

• What if they will not play along?

• And what if they use dirty tricks?


„martial arts of judo and jujitsu, avoid pitting your strength against theirs directly; instead, use your skill

to step aside and turn their strength to your ends”

Getting to YES


SOFT HARD PRINCIPLED

Participants are friends Participants are adversaries Participants are problem-solvers

The goal is agreement The goal is victory The goal is wise outcome reached efficientlyand amicably

Make concessions to cultivate the relationship

Demand concessions as a condition of the relationship

Separate the people from the problem

Be soft on the people and the problem Be hard on the people and the problem Be sof on the people and hard on the problem

Trust others Distrust others Proceed independent of trust

Change your position easily Dig in to your position Focus on interest, not possitions

Make offers Make threats Explore interests

Disclose your bottom line Mislead as to your bottom line Avoid having a bottom line

Accept one-sided losses to reach agreement Demand one-sided gains as the price of agreement

Invent options for mutual gain

Search for the single answer: the one theywill accept

Search for the single answer: the one you willaccept

Develop multiply options to choose form;decide later

Insist on agreement Insist on your position Insist on using objective criteria

Try to avoid a contest of will Try to win a contest of will Try to reach a result based on standardsintependent of will

Yield to pressure Apply pressure Reason and be open to reason; yield to principle, not pressure



Do itnegotiate

• The negotiations itself• The silent exchange of gesture between two individuals in a corridor or room– to –• full-scale series of meetings between large teams of individuals which drags on for years

Agree ? YES / NO

Win – win No losersThe begining of a long term, highly-productive partnership

Win/lose

BATNA / Plan B

Confirm itDocument/ understanding

jasondrohn.com

www.virtualstudio.tv

www.designofsignage.comwww.dreamstime.com www.iconfinder.com

www.iconfinder.comNegotiation Skills, Eunson Baden, John Wilkey&Son, 1994, p. 3

http://www.coca-cola.co.uk/

The Coca-Cola Company Mission• To refresh the world - in

mind, body and spirit• To inspire moments of

optimism - through our brands and actions

• To create value and make a difference everywhere we engage

The Coca-Cola Company VisionTo achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver:Profit: Maximising return to shareholders, while being mindful of our overall responsibilitiesPeople: Being a great place to work, where people are inspired to be the best they can bePortfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy people's desires and needsPartners: Nurturing a winning network of partners and building mutual loyaltyPlanet: Being a responsible global citizen that makes a differenceProductivity: Be a highly effective, lean and fast-moving organisation

The Coca-Cola Company ValuesOur shared values that we are guided by are:

LeadershipPassionIntegrityAccountabilityCollaborationInnovationQuality

Coca-Cola will unveil 18 special edition mini-bottles in Brazil on Wednesday to

commemorate the country’s hosting of the 2014 FIFA World Cup in June

http://www.coca-cola.co.uk/

Additional in-store space, outside the product category for 3 months

Consumer Promotions

Gift with purchases

40

Consumer Promotion

Consumer gift such as a mini-bottle received at the time of purchase.

buy 6, get special edition mini-bottle

6

Trade Promotion

6-pack

Product Packet Bottles HL Exposition

Coca Cola, 1l 180 1 080 10,80 40

Coca Cola Zero, 1l 80 480 4,80 10

Coca Cola Cherry Coke, 1l 40 240 2,40 5

Sprite, 1l 20 120 1,20 5

Fanta, 1l 20 120 1,20 5buy 2 040 Additional in-store space

per month 20 per month

per outlet 20 [HL] per outlet

1HL = 100 L

TV advertising

Cinema advertising

Radio advertising

Outdoor advertising

Press advertising

Online advertising

Shelf POS

Additional off-shelf displaySource: Own study, fictitious data

In 1990, the brothers Piotr and Paweł Woś opened their first grocery store by Głogowska Street in Poznań. The name for the retail chain Piotr i Paweł reflects the first names of the two founders, as well as being the names of the two patron saints of Poznań: St. Peter and St. Paul. The late nineteen-nighties and the first decade of the twenty-first century saw the continued expansion of the delicatessen supermarkets. As of 2011, the company plans to expand its retail chain via 10 new stores annually. Between 2011 and 2016, 57 new stores were opened. In 2016, the company received the award of the Market of the Year for the "best quality of fresh produce". The company opened 11 stores across Poland in 2016. The chain constitutes more than 138 stores in Poland, 15 stores in Poznań. Currently the chain introduces the new category of premium stores to which 25 stores are classified, 4 in Poznań.

Source: https://pl.wikipedia.org/wiki/Piotr_i_Paweł

Product January February March April May

Coca Cola, 1l 10 10 11 12 14

Coca Cola Zero, 1l 5 4 4 5 5

Coca Cola Cherry Coke, 1l 0,5 2 2 2 2

Sprite, 1l 2 3 2 1 1

Fanta, 1l 0,5 1 1,5 0,5 0,5

18 20 20,5 20,5 22,5

HL HL HL HL HL

Source: Own study, fictitious data

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