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far better than anything the competition currently has on offer. Emphasize that your competitors are still offer-
ing largely out-of-date models as the latest design. This is a method your own company would never engage in.
Mr. C
Tell him that you understand his fears concerning the price, but since the beginning of the year you have
acquired some new after-sales engineers and the problems he mentions with after-sales service are now a thing
of the past. Moreover, the slight difficulties with the new technology were simply teething troubles which have
now been satisfactorily resolved. It's perhaps worth giving the new-look product a chance, since in the trade
journals it has been certified as being twice as fast as the old model, despite appearances. It is, after all, per-
formance that counts. Despite his unwillingness to place an order this time, tell him that you are convinced that
you will be able to do business in the future. Thank him for his time and promise to call again next month,
when you will be able to offer him a number of new articles which you feel will be just the kind of item he will
be able to use.
T a s k 25.
A. Pre-reading questions:
1. What is meant by business negotiation?
2. What kinds of business negotiation do you know?
3. What are the reasons for conflicts in business negotiation?
B. Read this text and sum up the main facts.
Negotiating
Diplomacy, friendliness and co-operation are important in selling. There's a widespread belief, which is
probably true, that buyers 'buy from those they like' and that sellers give a better deal to 'those they like'. All
salespeople have a certain 'fear', or reverence, for buyers because they have the power to give or to withhold an
order. '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. Because addi-
tional persuasion may he required, it's important not to give away concessions while making the sales presenta-
tion.
In international business there are different types of business negotiations, negotiation styles and negotia-
tion situations. A simplified model of what goes on shows four main phases of negotiation:
1. The preparation phase: this is where you work out what you want and what your main priori-
ties are.
2. The 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. The 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. Formulate your proposals in the form of if ...,
then ... . Be patient and listen to the other side's proposals.
4. The 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.
Not all business negotiations take place face-to-face. Sometimes you may have to exercise negotiating
skills on the telephone. Clearly, too, not all business bargaining ends in a deal. Some negotiations may begin
with an exploratory session during which clients specify their needs and expect you to come back later with a
proposal of how your company will meet those needs.
People often try to postpone a decision. They might politely break off from the negotiation and say some-
thing like: 'I’ll have to think about it' or ‘I’ll have to consult my boss or my department head', etc. On the
whole, however, people expect that agreement will be reached or else you'll do business with another company.
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'.
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