unit fourteen sales and negotiation. study objectives this unit looks at various aspects of sales...

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Unit Fourteen Sales and negotiation

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Unit Fourteen

Sales and negotiation

Study Objectives

• This unit looks at various aspects of sales including the preliminary demonstration and the stages of commercial negotiations.

• Both face-to-face and telephone negotiation are covered, in which agreement on prices, quality of product and delivery, etc, are sought cooperatively by both parties.

Discussion

•How to be a successful

salespeople?

Background information

• You don’t have to be a special kind of person to sell a product.

• But although successful salespeople often have special talents and an outgoing personality, the skills they employ are used by us all: we build and maintain relationships with different kinds of people, we listen to and take note of what they tell us and don’t just enjoy the sound of our own voices, and we explain things to them or discuss ideas with them.

• A firm may depend on their own sales team or on the salesmanship of their distributors, wholesalers or retailers.

• But any company needs to establish a personal relationship with its major clients (key account) and potential customers (prospects).

• It is often said that ‘people do business with people’: a firm doesn’t just deal impersonally with another firm.

14.1 Selling and buying

• This section introduces the activity of selling and encourages you to think about both sides of the sales process and diverse forms that selling and buying can take.

Soft Sell or Hard Sell?• In selling, as in martial arts, there are

times when being aggressive is the only way to close the deal.

• At other times, though, a softer approach is the better way to go.

• The difference is that, in selling, our customers are not our enemies. Rather, they are our sparring partners, and the result of our interaction is that both parties should come out stronger in the end.

The Soft Sell • If you've decided that a kinder, gentler

approach is what's needed to close a deal, there are two "soft" steps you can take when someone comes at you with an objection:

• 1. Listen and observe. You want to know not only what the person is saying to you, but also how he or she is saying it. You want to hear the words and analyze the personality behind the words. Most important, you want to establish eye contact and create a bond that can lead to a strong relationship.

• 2. Question their objections. You can't counter an attack unless you're able to size up your opponent. And you can't handle an objection unless you understand exactly what it is and where it's coming from. Only then can you see the possibilities available to make your product or service fit with your customers' needs. So question your customers' objections, and find out how you can fill their needs. Ask them to explain, expand and elaborate until you fully understand the situation.

The Hard Sell • Sometimes, it's necessary to take a more

aggressive approach to make a sale. There are two steps to follow here:

• 1. Let your enthusiasm and passion show • Let customers see that you believe strongly

that there is a match between what they need and what you've got to offer. There's a saying in martial arts: "If you understand yourself and not your opponent, you win half the battles. If you understand your opponent and yourself, you win 100 percent of the battles. If you understand neither, you win no battles." If you really understand yourself and what you're selling, and you really understand the customer, you will come away with a win-win situation.

• 2. Be able to support your belief• In sales, belief and enthusiasm can

carry the day? If they are backed up by knowledge and understanding. Have all your facts and figures down, and have at least three or four strong reasons illustrating how your product stands out from the rest.

14.2 The sales process

• This section deals with the stages which a sales interview ideally goes through, when you meet a client or when a salesperson visits you to sell you something.

STEPS IN THE SALES PROCESS

• Understanding the basics of the actual sales process, and customizing them for your business, are critical in building customer relationships. Whatever your setting, and whether you sell a product or service, the following steps are the ones you should use.

• 1. Know your product or service Before you even have a preliminary conversation with a prospect, it is essential that you clearly understand what attributes make your product or service unique or desirable, and why people should want what you have to offer.

• 2. Make initial contact • The actual sales conversations with

people in your target market begin when you start letting them get to know you, and vice versa.

•3. Exchange information • This step consists of meeting with

your prospects, asking them questions, uncovering their needs, giving them information about your product or service, and determining how it might fill those stated needs.

• 4. Propose a solution • Once you have ascertained that there is a

good fit between you and the prospect, you can propose how your product or service would specifically solve a problem or handle a need.

• By understanding the features and benefits of competing products or services, you can also prove at this point how your offer is better.

• 5. Confirm the sale • Rather than focusing on "closing the sale,"

a term that indicates the end of the process, confirming the sale means you are reviewing the customer's willingness and ability to make a commitment.

• It is a natural extension of a sales relationship built on a foundation of trust, respect and rapport.

• 6. Deliver • Although actually delivering your product

or service is not technically part of the sales process, it is a very critical step.

• If you don't deliver, you don't have a sale. • In addition, during this step you have an

excellent opportunity to continue to build trust and cement your relationship with your client.

• 7. Follow up • This is the time to find out how your

client likes your product or service. • This stage provides an ideal chance

to create repeat business or get referrals to new prospects.

• And if there is a problem, you have an opportunity to correct it.

Step A

• This is a pre-listening activity designed to focus your attention on the general gist of what is involved in the sales process before you listen to the recording.

• Answers:1) product 2) weaknesses3) buying 4) before5) wants6) client7) individual

Step B

• This is a listening-for-gist activity.• Listen to the recording and answer

the two questions:1) What is the talk about?2) What stages are referred to in the talk?

Answers:1) A typical sales interview where you meet a client

or a salesperson visit you.2) The Opening Stage, the Building Stage and the

Closing Stage

Step C

• Listen to the recording again and fill the gaps in this summary of the talk.

• Answers:1) The Opening Stage---your client; secretary;

appointment2) The Building Stage---rehearse; friend or relation;

occasion; friendly; business-like; social conversation; responsible; trustworthy; well-known; benefits; asking (him/her) question; half

3) The Closing Stage---place; timing; thank

14.3 Selling your product

• Vocabulary• viewfinder: A device on a camera that indicates, either optically or

electronically, what will appear in the field of view of the lens. 取景器:照相机上的光学或者电子设备,用以显示出现在镜头里的东西

• exposure: A photographic plate or a piece of film so exposed. 软片:感光照片底片或电影胶片

• focusing: An apparatus used to adjust the focal length of an optical system in order to make an image distinct or clear 对焦仪器:为使其图象明显或清晰用于调节光学系统焦距的仪器

• up-market: adj, adv 高档的(地),高档消费的(地)

• down-market: Appealing to or designed for low-income consumers; downscale. 小商品市场的:面向低收入消费者的;低价的

Step A

• You’ll hear a sales representative demonstrating this product to a customer.

• Listen to the recording and do the exercises in your books.

• Answers:1) the aspects NOT covered are: after-

sales service and a guarantee period2) 1-4-3-6-2-5

14.4 Negotiating on the phone

• ‘Negotiation’ is the part of the sales conversation where bargaining about the conditions of an order takes place. It comes at the end of the sales talk at the point when the buyer is definitely interested. Not all business negotiations takes place face-to-face. Sometimes you may have to exercise negotiating skills on the telephone.

• This section presents telephone negotiation and the use of follow-up faxes.

• ‘Negotiating’ is the part of the sales conversation where bargaining about the conditions of an order takes place. It comes at the end of the sales talk at the point when the buyer is definitely interested.

• In international business there are different types of business negotiations, negotiation styles and negotiation situations. A simplified model of what goes on show four main phases of negotiation:

1) Preparation phase: this is where you work out what you want and what your main priorities are

2) Debating phase: this is where you try to find out what the other side or the customer wants. You say what you want but you don’t say yet what the final conditions are. You use open questions and listen to the customer to try to find out in what areas they may be prepared to move.

• 3) Proposal phase: this is the point at which you suggest some of the things you could trade or which you might theoretically be prepared to trade, offer or concede. Be patient and listen to the other side’s proposals.

• 4) Bargaining phase: this is when you indicate what it is you will actually trade, offer or perhaps concede. In turn you conditionally exchange individual points, along the lines of: ‘If you are prepared to pay swiftly, then we are prepared to change our delivery schedules.’ Remember to write down the agreement.

Step A

• In this listening activity we hear a Central European buyer and a DutchDutch salesperson negotiating a large order for yogurt.

• Please note down your answers to the questions in your books.

• yogurt: A custard like food with a tart flavor, prepared from milk curdled by bacteria, especially Lactobacillus bulgaricus and Streptococcus thermophilus, and often sweetened or flavored with fruit. 酸乳酪:一种具有酸味的蛋奶糕状食物,由细菌作用的牛奶凝结物制得,尤指保加利亚乳酸杆菌 和 喜温链球菌 ,常加水果以变甜或加味

• Suggested answers:1) Price, quantities and delivery date.2) Many significant points are made by both sides: the supplier mak

es it clear that they need exact figures, the buyer wants an acceptable price, and so on.

3) Both people have important points to make. This demonstrates the mutual interest in a successful outcome.

4) In particular the salesperson needs to think, and probably to decide with a colleague what to do next. This will be followed up in a fax.

5) The fax contains the next step in the negotiation. 2,000 tonnes can be delivered and a price, quality (Splendide variety) and a delivery date are proposed.

14.5 Getting it right in negotiations

• This section deals with the activity of negotiating.

• Normally both parties are interested in reaching an agreement in which both sides take away something positive from the deal. This is called a ‘win-win situation’.

• However, conflict can occur in business negotiations. Naturally, we all try to avoid this because this is where only one side can win and the other will lose. Situations which might lead to such negotiations could be late delivery, poor performance of a product, component failure or the need to make compensation payments.

Step A

• Listen to the call, make notes and discuss the questions.

• Suggested answers (1):• Substandard components seem to have

been delivered.• The supplier doesn’t appear to be very

efficient or honest!• Check the facts once more as reported by

Michelle with the individuals she mentions.• He’ll probably ask to speak to the

supplier’s representatives.

•Suggested answers (2):• Mr. Wiley thinks his components are

extremely popular and good value.• Bob Kellerman informs him about the

complaints about the writing.• Mr. Wiley says the first batch were not

manufactured by Coyote Products.• Bob Kellerman wants to know who was

responsible for quality.

Step C

• You’ll hear a face-to-face negotiation. Please listen to the recording and do the exercises in your books.

• Suggested answers:1) 4---5---1---8---7---3---6---2 M--M---F—M--–F—M—-F—M2) 1b 2d 3c 4a

14.6 Negotiating an international deal

• The simulation to come allows practice in co-operative negotiation. First there is a short preparatory step. The idea is to consider how people’s behavior in international and cross-cultural negotiation may be different from what you expect. In the situation where people use English as an international lingua franca, in particular, you may encounter individuals or groups who have a style which is different from your own.

Step A

• Suggested answers:1) they encounter someone who finishes their sentences for them (t

hey are impatient)2) someone interrupts them (they are not interested in hearing your

proposals)3) someone always goes ‘um and er’ and hesitates (they are unpr

epared and wasting your time)4) someone speaks incredibly fast without pausing for breath (they

are trying to make up your mind for you!)5) someone speaks very loudly (they think you are deaf, or they wer

e in the army!)6) someone speaks so softly or quietly they can hardly hear them (t

hey are shy, or afraid of making mistakes in English)7) someone says nothing and expects them to do most of the talkin

g (they are uncertain or first want to find out what you think)