Welcome to CIPS Yorkshire Branch Meeting Introductions O Deb ebbie - - PowerPoint PPT Presentation

Buyer and Seller : in 2 minds?

Welcome to CIPS Yorkshire Branch Meeting

Introductions

O Deb

ebbie ie Shore e

O Sarah Morga

gan

Sales people? What phrase springs to mind? Vote now

A.

Wide-boys

• B. Your new best friend
• C. The guru
• D. The consultant

E.

Honest John

University of Houston says…

O The Assurer O The Engager O The Compellor

Negotiating, not trading

We e often en res esor

• rt

t to la lazy tr trad ades es in

• ur dai

aily ly li lives es

A state of conflict

‘Negotiation is applicable where there is disagreement or potential disagreement between suppliers and buyers’

(Lysons and Farrington)

The sales person’s objectives

O To achieve revenue targets O To achieve profit/yield O To build long term relationships O To achieve customer satisfaction O Market growth/marketshare O New business development

“When others sense your willingness to walk k away, , your ur hand nd is strengthened….Sometimes you are better

• ff not getting to yes.”

Rober ert t Rubin, n, former mer US Secre reta tary y of the Treasur easury y and co- chairm rman n of Go Goldma dman n Sachs s

Sales tactics

Structure ucture

DIPADA / AIDA FABs Competitor knowledge/ weaknesses Objection handling – real, imagined and hidden

• bjections

Adding value Test and probe

O Prepare

Prepare

O Argue

Debate

O Signal

Propose

O Propose

Bargain

O Package O Bargain O Close O Agree

(Gavin Kennedy, CIPS)

Negotiation planning

Neg egoti tiati tion

• n

BATNA – Best Alternative –

• ffer choices of proposals

Upselling/cross selling Top, middle and bottom Shopping list Never concede, trade

Closing the deal

Closin ing Trial closes Closing techniques e.g. assumptive close Win-win ZOPA (Zone of possible agreement)

Building relationships

Inter erpe persona

• nal

l

Motivation - of sales person and buyer Blocking, stalling developmental tactics Customer satisfaction Listening Metacommunications Paralanguage

Grant Leboff, Marketing Donut (http://www.stickymarketing.com/)

The solution, we are told, is not to sell to people, but to help them buy

In the context of your own

• rganisation, what is the most

prized outcome of a negotiation

• Writ

ite e it on a post t it note

• Eliminat

iminate e duplic ication ation by placing ing your note e on top

• f simi

milar lar one ne/gr /groupin uping g similar milar one nes s together er

The Buyer’s objectives

O Review post – it notes

O Any comme

• mments?

ts?

Win/Win

Stephen R. Covey

• A focus on results not methods
• High levels of motivation
• Rewards and goals orientated

Wit ith win in/win in acc ccou

• unta

tabi bili lity ty, , peop

• ple

le eval valua uate th thems mselv lves

Results of negotiation



Win-lose: one party gets what he wants at the expense of the other party



Lose-lose: neither party gets what he really

• wants. Compromise comes into this

category.



Win-win: both parties get as close as possible to what they really want. (Cornelius and Faire)

Key words

OCollaborative OIntegrative ODistributive

Hard, Soft, Principled Negotiation I

Be soft on the people, hard on the problem Be hard on the people and the problem Be soft on the people and the problem Separate the people from the problem Demand concessions as a condition of the relationship Make concessions to cultivate the relationship The goal is a wise

• utcome reached

efficiently and amicably The goal is victory The goal is agreement Participants are problem- solvers Participants are adversaries Participants are friends

Principled (partnership) Hard (adversarial) Soft (cosy)

Problem Positional Bargaining: which Game Should You Play? Solution Change the Game: Negotiate on the Merits

Hard, Soft, Principled Negotiation II

Proceed independent

• f others

Distrust others Trust others Insist on using

• bjective criteria

Insist on your position Insist on agreement Develop multiple

• ptions to choose

from; decide later Search for the single answer: the one you will accept Search for the single answer: the one they will accept Invest options for mutual gain Demand one-sided gains as the price of agreement Accept one-sided losses to reach agreement Avoid having a bottom line Mislead as your bottom line Disclose your bottom line Explore interests Make threats Make offers Focus on interests, not positions Dig into your position Change your position easily Principled(partnership)

Hard (adversarial) Soft (cosy)

Hard, Soft, Principled Negotiation III

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

• f will

Reason and be open to reasons; yield to principle, not pressure Apply pressure Yield to pressure Principled(partnership

Hard (adversarial) Soft (cosy)

Source: Getting to Yes (Fisher and Ury)

Conflict modes

Conflict-handling styles (Thomas -Kilmann)



Avoiding: ding: you withdraw from the conflict or attempt to sweep it under the carpet.



Compet eting ing/f /forcin cing: you impose your solution on the problem.



Accommo moda dati ting ng: you concede the issue without a fight, to preserve harmony.



Compromising mising: you use bargaining or negotiation, so that each party trades some concessions for some gains.



Collaborat rating ing: you work together to try and find an

• utcome which meets the clearly stated needs of

both parties as far as possible.

Which style are you? Vote now

A.

Competitive

B.

Compromising

C.

Collaborating

• D. Avoiding

E.

Accommodating

P.S if you want to do the Thomas-Kilmann diagnostic questionnaire later, ask us for a copy

The Relationship Spectrum

Collaborative advantages

O Open book accounting O Transparency O Value-added opportunities O Supports internal relationships O Flexible contracts O Innovation and value engineering opportunities O Long term relationships O Minimise supply chain risk O What others do you currently use?

Room 100

Guerrilla Negotiation Tactics

Win-Win

Commission

• nly sales

people

Which would you banish ? Vote Now

A.

Guerrilla Negotiation Tactics

• B. Win-Win
• C. Commission only sales people

Negotiation is…

O Agreeing terms of the exchange O Takes place once the intention to

exchange has been stated

O The achieving of each party’s

• bjectives – finding the common

ground

O Consider conflict carefully!

Thank you

O Any questions?

Contac act t detai etails Debbie Shore Curriculum Area Manager, CIPS Tel: 0113 216 2099 Deborah.shore@leedscitycollege.ac.uk Sarah Morgan Curriculum Leader, CIM Tel: 0113 216 2374 Sarah.morgan@leedscitycollege.ac.uk