9TH EDITION
Manning and Reece
CHAPTER 12
NEGOTIATING
BUYER CONCERNS
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
12-2
SIX-STEP PRESENTATION PLAN
1. APPROACH
2. PRESENTATION
3. DEMONSTRATION
4. NEGOTIATION
5. CLOSE
6. SERVICE
See details Figure 12.1.
12-3
WIN-WIN STRATEGY
NEGOTIATION 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.”
12-4
NEGOTIATION PLANNING LEADS TO
ACTIONS
STRATEGIC
PLANNING FOR
NEGOTIATING
ACTIONS DURING
NEGOTIATIONS
See Figure 12.2.
12-5
COMMON TYPES OF BUYER CONCERNS
NEED FOR PRODUCT
PRODUCT ITSELF
SOURCE OF PRODUCT
PRICE
TIMING
12-6
NEED FOR PRODUCT
Conditioned response: I
don’t need the product
Happy with current
product
Not convinced of your
product’s benefits
12-7
ABOUT THE PRODUCT
Product not established
Product will not be
popular
Associates didn’t like the
product
Present product/system
is satisfactory
12-8
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
12-9
PRICE CONCERNS—TRAINED
BUYERS
Buyers trained in
negotiating
--Budget Limitation Tactic
--Take-It-or-Leave-It
--Split-the-Difference
12-10
PRICE CONCERNS—LOW PRICE
STRATEGY
Buyers seeking low
price
--Sales executives able to
apply various discounts
--Downside, lower profits
and lower commissions
12-11
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
12-12
PRICE ICEBERG
Price is only the tip of the iceberg…remind
customer of value-added factors below tip
12-13
PRICE VERSUS COST EXAMPLE
Note how Canada’s Bombardier
positions its CRJ against Airbus.
Figure 12.4
12-14
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
12-15
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
12-16
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
12-17
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”
12-18
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
12-19
SPECIFIC METHODS-3
Demonstration
--Discuss competitive advantages of
your product
--Might also involve physical product
demonstrations
Trial offer
--Prospect tries product without
purchase commitment
12-20
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
12-21
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.
12-22