Marketing Management, Millenium Edition - epiheirimatikotita.gr

Principles of Personal Selling 311➤➤Closing. Now the salesperson attempts to close the sale using one of several closingtechniques. The rep can ask for the order, recapitulate the points of agreement, offerto help the buyer write up the order, ask whether the buyer wants A or B, get thebuyer to make minor choices such as the color or size, or indicate what the buyer willlose if the order is not placed now. In addition, the rep might offer the buyer aninducement to close, such as a special price, an extra quantity, or a token gift.Follow-up and maintenance. Follow-up and maintenance are necessary to ensurecustomer satisfaction and repeat business. Immediately after closing, the salespersonshould cement any necessary details on delivery time, purchase terms, and othermatters that are important to the customer. The salesperson should schedule a followupcall when the initial order is received to check on proper installation, training, andservicing. The purpose is to detect any problems, assure the buyer of the salesperson’sinterest, and reduce any cognitive dissonance that might have arisen. The salespersonshould also develop a maintenance and growth plan for the account.NegotiationSalespeople involved in business-to-business deals, in particular, need negotiatingskills as they work with customers to reach agreement on price and other terms of salewithout making concessions that will hurt profitability. Although price is the most frequentlynegotiated issue, other issues include contract completion time; quality ofgoods and services; purchase volume; responsibility for financing, risk taking, promotion,and title; and product safety.To be effective in sales negotiation, reps must be well prepared and have planningskill, knowledge of subject matter being negotiated, the ability to think clearlyand rapidly under pressure and uncertainty, the ability to express thoughts verbally, listeningskill, judgment and general intelligence, integrity, the ability to persuade others,and patience. 29 These attributes come into play when it is appropriate to negotiatewith a customer or prospect—which is not in every situation.When to NegotiateAccording to Lee and Dobler, negotiation is an appropriate procedure for concludinga sale when (1) many factors bear not only on price, but also on quality and service;(2) business risks cannot be accurately predetermined; (3) a long period of time isrequired to produce the product purchased; (4) production is interrupted oftenbecause of numerous change orders. 30There is an obvious advantage in knowing the other party’s reservation price andin making one’s own reservation price seem higher (for a seller) or lower (for a buyer)than it really is. The openness with which buyers and sellers reveal their reservationprices depends upon the bargainers’ personalities, the negotiation circumstances, andexpectations about future relations.Formulating a Negotiation StrategySuccessful salespeople prepare a strategic plan before meeting their buyers and makingtactical decisions during negotiation sessions. A negotiation strategy is a commitmentto an overall approach that has a good chance of achieving the negotiator’s objectives.Some negotiators pursue a “hard” strategy, whereas others maintain that a “soft”strategy yields more favorable results. Fisher and Ury propose a strategy of “principlednegotiation.” In this strategy, the parties (1) actively listen to each other’s viewpoint,(2) focus on their interests rather than on their personal differences or positions,(3) search for options that offer mutual gain, and (4) insist on objective criteria toassess the solution. 31