Unit 4 Negotiating Prices.docx

Unit 4 Negotiating Prices.docx

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Unit4NegotiatingPrices

授课章节

名称

UnitFourNegotiatingPrices（PartⅠ&PartⅡ）

教材逻辑结构分析和学生分析

Negotiationplaysavitalpartinbusinessactivities.Negotiationbetwwenthesellerandthebuyernormallycoversaspectsincludingquality,quantity,packaging,price,shipping,insurance,payment,complaints,andarbitration.Inthisperiod,Sswillknowsometipsaboutnegotiation.

教学目的

1.Knowsometipsaboutnegotiation;

2.Listenforsomespecificpoints.

教学重点

Thetipsaboutnegotiation.

教学难点

Listentothetipsintherealconversation.

更新、补充

及删节

内容

Conversationsaboutnegotiation

教学方法与

使用教具

CommunicativeLanguageTeaching;

Tape-recorder

Teachingprocedures:

Step1Leadingin

1.Haveawarm-upactivitybyaskingthestudentsdidtheyknowhowtobargaininamarket.

2.Askthemwhatmethodtheyoftenusetobargaintheprice.

Step2Presentation

1.PartⅠWarm-up

Getthestudentstoworkinpairs.Askthestudentstofillintheblanksaboutsometipsfromnegotiationexpertsandthencomparetheiranswerswiththeirpartnets’.

2.PartⅡListeningPractice

（1）Task1

A.Getthestudentstolistnetothesentencesonpage38andthenfillintheblankswiththeappropriatephrasesfromthelist.

B.Playthetapeandaskthestudentstochecktheiranswers.

（2）Task2

A.GetthestudentstolistentotheconversationaboutNickDonaldtalkingabouttheirregulationsongivingdiscountsandcommissionandthendecideifthestatementsonpage39aretrueorfalse.

B.Checktheanswers.

C.Askthestudentstolistentotheconversationagainandfillintheblanksonpage39.

D.Checktheanswers.

Step3BusinessProfile:

PriceNegotiationStrategies

Exporters,especiallysmallandmedium-sizedenterprises（SMEs）,indevelopingcountrieswhomaybeenteringnewmarkets,oftenfaceproblemsininitiatingnegotiationswithimoporters,agentsandbuyers,inthetargetmarkets.Thesedifficultiesgenerallycentreonpricingquestionsandparticularlyonthefactthatpricesmaybeconsideredtoohigh.

Althoughpriceisonlyoneofmanyissuesthathavetobediscussedduringbusinessnegotiations,toofrequentlyittendstoinfluencetheentirenegotiationprocess.Newexportersmaybeinclinedtocompromiseonpriceatthebeginningofthediscussions,therebybypassingothernegotiatingstrengthsthatwheymayhave,suchastheproduct’sbenefits,thefirm’sbusinessexperienceanditscommitmenttoexportingqualityproducts.Aspricingisoftenthemostsensitiveissueinbusinessnegotiations,thesubjectshouldbepostponeduntilalltheotheraspectsofthetransactionhavebeendiscussedandagreedupon.

Itisestimatedthatabout80%oftheissuesnegotiatedareofanon-pricenature.Decisionstoplaceexportordersinvolvealong-termcommitmentandare,inanycase,rarelymadeonthebasisofpricealonebutratheronthetotalexpertpackage.Thisisparticularlysoinmarketswherecosumersarehighlyconsciousofquality,styleandbrandnames,wheremarketingchannelsarewellstructured,andwheretheintroductionoftheproductinthemarketistime-consumingandexpensive.

Bypresentingamorecomprehensivenegotiationpackageinwell-plannedandorganisedmanner,exportersshouldbeabletoimprovetheeffectivenessoftheirbusinessdiscussionsand,inthelongterm,theprofitabilityoftheirexportoperations.

Tacticsinnegotiations

Animportermayrejectanexporter’spriceattheoutsetofthediscussionssimplytogettheupperhandfromthebeginningofthenegotiations,therebyhopingtoobtainconcessionsonothermatters.Theimportermayalsoobjecttoinitialpricequotedtotesttheseriousnessoftheoffer,tofindouthowfartheexporteriswillingtolowertheprice,toseekaspecificlowerpricebecausetheproductbrandisunknowninthemarket,ortodemonstratealackofinterestinthetransactionastheproductdoesnotmeetmarketrequirements.

Iftheimporterdoesnotaccepttheprice,theexportershouldreactpositivlybyinitiatingdiscussionsonnon-pricequestions,insteadofimmediatelyofferingpriceconcessionsortakingadefensiveattitude.Wideningtheissuesandexploringtherealreasonsbehindtheobjectionstothepricequotedwillputthetalksonamoreequalandconstructivefooting.Onlybyknowingthecausesofdisagreementcananexportermakeareasonablecounter-offer.Thiscounter-offerneednotbebasedmerelyonpricing.Itcancoverotherrelatedaspects.

Tomeetpriceobjections,someexportersartificiallyinflatetheirinitialpricequotations.Thisenablesthemtogivepriceconcessionsduringtheopeningofthenegotiationswithouttakinganyfinancialrisks.Thedangerofthisapproachisthatitimmediatelydirectsthediscussionsintopricingissuesattheexpenseoftheotherimportantcomponentsofthemarketingmix.Generallysuchinitialpriceconcessionsarefollowedbymoredemandsfrombuyersthatwillfurtherreducetheprofitabilityoftheexporttransaction.Forinstance,thebuyermaypressforconcessionson:

●Quantitydiscounts

●Discountsforrepeatorders

●Improvedpackagingandlabelling（forthesameprice）

●Tighterdeliverydeadlinesthatmayincreaseproductionandtransportcosts

●Freepromotionalmaterialsinthelanguageoftheimportmarket

●Freeafter-salesservicing

●Supplyoffreepartstoreplacethosedamagedfromnormalwearandtear

●Freetrainingofstaffinthemaintenanceanduseoftheproduct

●Marketexclusivity

●Along-termagencyagreement

●Highercommissionrates

●Bettercreditandpaymentterms

Toavoidbeingconfrontedbysuchcostlydemands,anexportershouldtrytodeterminethebuyer’srealinterestintheproductfromtheoutset.Thiscanbeascertainedthroughappropriatequestionsbutmustslaobebasedonresearchandotherpreparationsbeforethenegotiations.Onlythenshouldsuitablecounter-proposalsbepresented.

Planningnegotiations

Toachieveafavourableoutcomefromthenegotiations,anexportershoulddrawupaplanofactionbeforehand,whichaddressesafewkeyissues.Experiencednegotiatorsconsiderthatasmuchas80%oftheiroveralltimedevotedtonegotiationsshuoldgotosuchpreparations.Thepreliminaryworkshouldbeaimedatobtainingrelevantinformationonthetargetmarketandthebuyersoftheproduct.Itshouldalsoincludedevelopingcounter-proposalsifobjectionsarerasedonanyoftheexporter’sopeningnegotiatingpoints.Thepreparationsshouldthusinvolveformulatingnegotiatingstrategiesandtactics.

Marketresearch

Inordertobeabletosupplyapotentialcustomerwithwhatwheyneed,itisnecessarytoknowthemarket.Thisrequiresresearch.Anexportershouldassesscompetitionfrombothdomesticandforeignsuppliersandbefamiliarwiththepricesthattheyquote.Thedistributionchannelsusedfortheproductandthepromotionaltoolsandmessagesrequiredshouldalsobeexamined.Suchinformationwillbevaluableforthesellerinnegotiationwithbuyers.Themorethatisknownaboutthetargetmarketandthebuyersfortheproductsconcerned,therbettertheexporteristoconductthenegotiationsandtomatchtheoffertothebuyer’sneeds.

Supplyassessment

Makingcounter-proposalsalsorequiresdetailedinformationonthecostsoftheexporter’sproductionoperations,freightinsurance,packingandotherrelatedexpenses.Anexportershouldcarryoutarealisticassessmentofthequantitiesthatcanbesuppliedandthescheduleforsupplyingthem.

Aspartofthepreparationsfornegotiations,anexportershouldlistanypotentialpriceobjectionsthebuyercouldhavetowardstheofferbeingpresented,alongwithallpossibleresponses.

Step4ConsolidationandAssignment

1.GettheSstorememberthetipsfromthenegotiationexperts.

2.Assignment:

Askthestudentstobuyathingandbargaintheprice.

授课章节

名称

UnitFourNegotiatingPrices（PartⅢ&partⅣ）

教材逻辑结构分析和学生分析

Inthisperiod,thestudentsaresupposedtolearntheexpressionsaboutnargaining,requestingfordiscounts,expressingagreementandrefusingapricereduction.Afterlearningtheexpressions,theywillwatchavideoaboutafactorytouraboutpricenegotiation.

教学目的

1.Knowtheexpressionsaboutnegotiatingprices;

2.Understandtheexpressionsintherealconversation;

3.Mastertheskillsandtechniquesusedinnegotiations.

教学重点

Mastertheexpressionsaboutnegotiatingprices.

教学难点

Howtousetheskillsandtechniquesinthepricenegotiation.

更新、补充

及删节

内容

SomeotherdefinitionsaboutdoingbussinesssuchasTrialOrder.

教学方法与

使用教具

Task-basedteaching;

Tape-recorder

Teachingprocedures:

Step1Leadingin

1.Revisethetipsfromnegotiationexperts.

2.Checkthestudents’homeworkandasksomepairsofstudentstotelltheirexperienceaboutbargainningtheprice.

Step2Presentation

1.LanguageFocusA

A.Talkingabouttheprice

ThisbusinesscanbeconcludedifyoucanloweryourpricetoRMB50peritem.

Wouldyoubeabletogiveadiscountforrepeatorders/bulkorders/largerquantities?

Asthisisanewproduct,wouldyouconsiderincreasingthediscounttohelpusgetitintothemarket?

Idon’tdenyyourexcellentqualityandifyouofferacompetitiveprice,wecanplacealargerorder.

I’mafraidwecan’tacceptthatpricebecauseitismuchlowerthanthemarketprice.

US$100/mtisalreadyourbottom/rock-bottomprice.Itcan’tbeloweredanyfurther.

Tobefrank,it’sdifficulttomeetyourpriceandthegeneralpracticeistogiveonlya2%discount.

Ususllyweoffernodiscountforthiscommodity/quantity/ordervalue.Ourprofitsareverylow.

B.Talkingaboutcommission

Doyouincludeanycommission?

We’reacommissionedagent.Wedobusinessonacommissionbasis.

Youcangeta