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TB1900_Kap05_The Sales Negotiation.PPT - DEI-ISEP


  • pg 1
									            The Sales Negotiation

                 Requirements analysis
                 Arguments for SAP Business One
                 Handling objections
                 How to order SAP Business One

 SAP AG 2003
            The Sales Negotiation: Unit Objectives

                   At the conclusion of this unit, you will be able to:

                    Carry out a requirements analysis of your
                    List arguments for SAP Business One and turn
                     them into benefits for your customer
                    Address objections raised by your customer
                    Describe how to order SAP Business One

 SAP AG 2003
            Requirements Analysis: Topic Objectives

                  At the conclusion of this topic, you will be able to:

                   List and define the types of questions used in the
                    requirements analysis
                   Explain the Iceberg Theory
                   List general motives and buying reasons
                   List important facts for the requirements analysis
                   Describe how to perform the requirements analysis

 SAP AG 2003
            Questions for the Requirements Analysis

                             1. Open question:
                               Elicits a lot of information

                               Cannot be answered with "yes" or "no"
                               Is a W-question (who, what, where, when or

                             2. Closed question:
                               Elicits detail information

                               Can be answered with "yes" or "no"

                             3. Alternative question:
                               Good for arranging dates
                               Good for concluding negotiations
                                 (partial decisions)

 SAP AG 2003
            The Iceberg Theory

                                   The Iceberg Theory
                                   (also known as Pareto's Principle)
                                   Every decision to buy consists of rational and emotional
                                   Rational percentage:        ~20%
                                   Emotional percentage:       ~80%
                                   However 80% of time is spent discussing 20%
                                   of the reasons for deciding to buy.
                                   Small and midsize business customers expect software
                                   vendors to offer the following characteristics to help
                                   them face the problems common to the SMB market:
                                      Knowledge of business environment
                                      Ability to offer guidance
                                      Solutions

                Also consider the emotional reasons behind the decision to buy.

 SAP AG 2003
            Motives and Reasons for Buying

                            Safety, security, respect from others
                            Power, influence, recognition, prestige,
                            Ownership, income, profit
                            Convenience, maintaining the
                             status quo
                            Curiosity

                           What motive is most important for your customer?

 SAP AG 2003
            Facts for the Requirements Analysis

           Budget                                                Scope of business (regional/national)
           Business strategy                                     Existing hardware
           Market and competitive situation                      Management structure
           Company objectives (short-term and long-term)
           Competitors                                           Number of users up to now
           Buying motivation (rational/emotional)                Reaction to Basel II
           Core business process (current/planned)               E-business, B2B interfaces
           Strengths and weaknesses of the company               CRM experience
           Financing type
           Company data and facts                                Consultants involved
           Joint decision makers                                 Special features of your company
           Opinion makers                                        Management active in sales
           Actual situation DP/IT                                Service specification document available
           Hardware/software/personal/networks
           Current problem areas                                 Expectations of a new solution
           Previous ERP                                          Project trigger – Core problem
           Continuity (system changed often?)                    Interfaces
           Type of controlling tool                              Quantity structure
           Special instructions, regulations, certificates
           Type of financial accounting                          Time frame (decision and implementation)
           Type of business (sales, production, purchasing)      Project aims
                                                                  Special features of project
                                                                  Evaluation criteria of management
                                                                  External influencing factors

 SAP AG 2003
            Requirements Analysis Process

                        Procedure for requirements analysis:

      1. Project business            2. Solution sales                   3. Product sales

                                                                      Might not want to pay
       Preliminary study is
                                   Consulting                        No consultants before
        financed                   Actual data analysis               decision
       Consultants carry out      Feasibility study
                                                                      Possible structured
        study                      Process analysis
       Costs for each             Service specification document
                                   Connectivity                      Hence free
                                   Add-ons                            requirements analysis

                                     Partner decides

 SAP AG 2003
            Arguments for SAP Business One: Topic Objectives

                  At the conclusion of this topic, you will be able to:

                   List arguments for SAP Business One and turn them
                    into benefits for your customer

 SAP AG 2003

                        "First kindle the
                        flame within you,
                        in order to kindle it
                        in others"

                        (Saint Aurelius Augustinus)
                        Born 13.11. 354, † 28.8. 430, church father
                        of the West.
                        A teacher of rhetoric in Tagaste, Carthage,
                        Rome and Milan

 SAP AG 2003
            Arguments (1)

        Look and feel of Microsoft                  High security of investment
        Simple transfer of data to Microsoft Word   Development in C++ (standard programming language)
        or Microsoft Excel
                                                    Projects can be mapped
        Clear contact management
                                                    Accepted by end users
        Physical inventory support
                                                    Documents (Microsoft Word) can be attached to
        Simple administration                       contacts
        Dense partner network                       Authorization management
        Forward-looking                             Low infrastructure demands
        Multilingual capability                     Rapid Return on Investment (by avoiding non-profit
        Client capability
                                                    Available worldwide
                                                    HR interface
        Internet sales
                                                    Standard letters from SAP Business One
        Batch and batch management
                                                    Internal communication directly from
        Open database standard                      SAP Business One
        Illustrations in applications               Up-to-date information – No batch processing
        One packet with all features                User-defined fields
        SAP stands for quality.                     Good value
        Over 1,600 installations worldwide          Microsoft-SQL database
                                                    Easy to master – Minimal training requirement

 SAP AG 2003
            Arguments (2)

        All functions and documents accessible from every section (drilldown arrows)
        Saves money because no extra programming required for Customizing
        Setting additional fields uncomplicated
        Greater flexibility than systems from competitors
        Attractive standard software (budget/security)
        Support given when creating documents for the bank (Basel II)
        Numerous reporting options (Drag&Relate)
        More information on opportunities and their development
        Learning from lost opportunities is made easy
        More information on the performance of salespersons
        Instant information on all the prices that the customer has already received
        Gross profit at the touch of a button at any stage of the sales process
        Bill of materials in bill of materials (multilevel bills of materials)
        Numerous analysis and comparison reports
        Export and import functions
        Uncomplicated transfer of legacy data
        Integrated communication solutions (fax/e-mail/internal/SMS)
        Extensive service + support contract tool
        Employee administration tool
        Dunning letters – 10 different letters possible
        Software development kit – for further demands

 SAP AG 2003
            Arguments (3)

         Minimal hardware requirements – No additional hardware necessary
         Immediate update of invoices in Financial Accounting
         Query wizard
         Integration of SAP Business One in SAP R/3
         All company-relevant data at the touch of a button
         Frees up time for employees to concentrate on other tasks
         Drilldown function to accelerate the availability of more up-to-date additional information
         Numerous possibilities of sorting and arranging data using Drag&Relate
         Posting sessions (parking)
         Interface connection to SAP Business Suite
         Quick implementation
         Simple Customizing by end users
         API interface allows easy link up of other applications
         Business partner concept (customers, vendors, and leads can be called via codes)
         Range of reports and information on the company easy to call up (also in graphical form)
         Range of alerts – Available online
         Release procedure – Online
         Document template generator – Simple form layout

 SAP AG 2003
            What are Your Options?

                                Identify with your arguments.
                                Present arguments from both sides.
                                Base your arguments on the problems,
                                 requirements or wishes identified during the
                                 requirements analysis.
                                Refer to good experiences with other
                                Keep It short and simple (KISS).
                                Present clear reasons for buying.
                                Repeat the key arguments.
                                Summarize the main points.

                Above all collect strong arguments for all occasions.

 SAP AG 2003
            You should always remember...

                An effective sales argument must be

   !       believable. One persuasive argument is better
                   than many feeble arguments.             !
 SAP AG 2003
            Exercise 2: Group Solution

                                            Select ten arguments from
                                            the lists.
                                            Try to put them into practice
          1. Facts          2. Advantages   as discussed.

                     3. Customer

 SAP AG 2003
            Handling Objections: Topic Objectives

                   At the conclusion of this topic, you will be able to:

                    Address objections raised by your customer
                    Use the techniques for handling objections

 SAP AG 2003
            Handling Objections

            Objections are:
             Show stoppers (if you cannot cope with them)
             The last open issues to clarify
             Counter arguments of the customer (maybe heard from
              the competitor?)
             But also a sign of interest (it lengthens the conversation)

             Show understanding
             Listen
             Keep a good atmosphere
             Don‘t disagree

                There is no need for disagreements in sales!
                Disagreement means conflict.
                Rephrase your words and keep the atmosphere in mind!!

 SAP AG 2003
            Rules for Handling Objections

                            The salesperson must have a positive
                            Show you are listening.
                            Find out the main motive.
                            Allow for a short pause before

 SAP AG 2003
            Techniques for Handling Objections

                                Express conditional agreement
                                 ("I understand what you are saying").

                               and also

                                Ask about the motive.
                                Offer to provide references.
                                Keep back objections.
                                Anticipate objections.
                                Provide hypothetical scenarios
                                 or "If" questions.

 SAP AG 2003
            Possible Objections

        No “undo" tool for changing price lists     Why is there no Industry Business
        Missing features and functions
                                                    Why only compatible with Microsoft?
        New system (tried and tested?)
                                                    Why not on Oracle?
        Only a few partners
                                                    Why is there no development
        No point of sale application
        Why is payment extra for CRM?
                                                    Why is there no production planning and
        Not production-orientated                   control?
        Not an SAP product                          Why is it so expensive?
        I would rather negotiate with               Why is there no payroll?
        SAP directly!
                                                    Why is there no future strategy?
        Few references (outside of Israel)
                                                    Why only as of two licenses?
        I don't want to be a pilot customer
                                                    Why all modules and not parts?
        I work with Lotus Notes
                                                    Why only partner sales?
        No e-mail integration (Microsoft Outlook)
                                                    SAP does not have a serious concept
        Not many developers for the product

 SAP AG 2003
            Exercise 3: Group Solution

                          Select eight possible objections
                          from the list.
                          Try to find a promising way of
                          counteracting the objections
                          in the group.
                          Have a group member present
                          the results!

 SAP AG 2003
            How to Order SAP Business One: Topic Objectives

                  At the conclusion of this topic, you will be able to:

                   Explain how to order SAP Business One

 SAP AG 2003
            The Order Process via the SAP Service Marketplace

      SBO - Partner on SAP Service Marketplace
                            SAP Service Marketplace Inbox - status tracking
         Place order on
         SAP Service         Sent to SAP          In Process       Completed
         Marketplace          Rejected

                            Reject   Change
                            order    order
        Send order
        to SAP

                    B                        C                 D
                                                   Approve           Book      Software
                          Check order
                                                   order             order     delivery
      SAP                  Waiting for response

 SAP AG 2003
            Quick Link Used for Ordering

                             SAP Service Marketplace


 SAP AG 2003
            The Sales Negotiation: Unit Summary

                  You are now able to:

                   Carry out a requirements analysis of your
                   List arguments for SAP Business One and turn
                    them into benefits for your customer
                   Address objections raised by your customer
                   Describe how to order SAP Business One

 SAP AG 2003

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