Ch 13 Flashcards
The definition of negotiation is ________.
working to reach an agreement that is mutually satisfactory to both buyer and seller
Negotiations can happen at any stage of the sales process, but in most cases the most important negotiations will take place during the ________ stage of the buying process.
resolution of problems
The concept of finding “what alternative(s) will be acceptable to you if your negotiation does not succeed” is called ________.
best alternative to negotiated agreement or BATNA
A second important negotiation planning tool, ________, is defined as the space between the seller’s walk-away point and the buyer’s highest willingness to pay.
zone of possible agreement or ZOPA
”Do unto others as they want to be done unto” is an application of the _____ rule of negotiating.
platinum
The great majority of buyer concerns fall into five categories. Those categories are ________.
need, product, source, time, and price
If you are calling on business prospects, the way to overcome need resistance is to prove your product ________.
is a good investment
Concerns about the product or service often become the focal point of buyer resistance. Two common factors influencing the buyer’s attitude are that the product or service ________.
is not well established or the current product or service is satisfactory
Resistance to time is often referred to as stalling. A stall usually means the customer ________.
does not yet perceive the benefits of buying now
In the eyes of most customers, value is more important than price. Always try to position your product with ________.
a convincing value proposition
_____ is one of the biggest obstacles sales people have to conquer.
Price objection
In analyzing each buyer concern, the salesperson should try to determine which method can be most effective. In most cases, the salesperson can use ________.
a combination of methods
Studies indicate that the favorable testimony of ________ can be an effective method of responding to buyer resistance.
a neutral third party
Today’s customers are well informed and might want to ________ early in the sales process.
engage in negotiations
A salesperson might attempt to turn the objection into a(n) ________ by concluding the sale without prejudicing the opportunity to continue the selling process with the buyer should he or she refuse to commit.
trial close
The challenge a salesperson faces in almost every negotiation is to sell products and services based on ________, not on price.
fair and unique value propositions
One way to clarify price concerns is ________.
by asking questions to determine what the customer is thinking
To help overcome price concerns, salespersons need to direct the customer’s attention to________.
the value-added features of your product or service
The best time to deal with price is ________.
after you have reviewed product features and buyer benefits
Many ________ buyers are primarily interested in price and convenience during negotiations, so consider eliminating features that contribute to a higher selling price.
transactional
One strategy to use with buyers who use the “budget limitation tactic” is to ________.
use unbundling by eliminating some items to reduce the price
Buyers sometimes use the “take-it-or-leave-it” tactic. An alternative strategy to counter this tactic is to ________.
confidently review the superior benefits of your product and make another closing attempt
Buyers will also use the “let-us-split-the-difference” tactic. If the buyer’s suggestion is not acceptable, then you might ________.
make a counteroffer
The consequence of the use of the “if . . . then” tactic could be serious. If the buyer does have a number of options that offer the same benefits as yours, then the salesperson ________.
might have to concede
The “sell low now, make profits later” approach ________.
can create value for both you and your customer because it might be a way of gaining a foothold in your buyer’s business
