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ladder of influence’; as marketers call it; puts the salesperson’s role in 
perspective。 This is a method to rank the ‘warm bodies’ a customer will 
encounter in the selling process in the order in which it is most likely to 
influence your customers favourably。 At the top of the scale is the personal 
remendation of someone whose opinion is trusted and who is known 
to be unbiased。 An example here is the endorsement of an industry expert 
who is not on the payroll; such as an existing user of the goods or services 
who is in the same line of business as the prospective customer。 While 
highly effective; this method is hard to achieve and can be expensive and 
time consuming。 Further down the scale is an approach by you in your 
role as a salesperson。 While you may be seen to be knowledgeable; you 
clearly stand to gain if a sale is made。 So you can hardly be unbiased。 Sales 
calls; however they are made; are an expensive way to reach customers; 
especially if their orders are likely to be small and infrequent。 
How selling works 
There is an erroneous view that salespeople; like artists and musicians; 
are born; not made。 Selling can be learnt; improved and enhanced just like 
any other business activity。 First; you need to understand selling’s three 
elements: 
。 Selling is a process moving through certain stages if the best results 
are to be achieved。 First; you need to listen to the customers to learn 
what they want to achieve from buying your product or service; then 
you should demonstrate how you can meet their needs。 The next stage 
is handling questions or objections; a good sign as it shows that the 
customer is sufficiently interested to engage。 Finally es ‘closing 
the sale’。 This is li。。le more than asking for the order with a degree of 
subtlety。 
。 Selling requires planning in that you need to keep records and 
information on customers and potential customers so you know when 
they might be ready to buy or reorder。 
。 Selling is a skill that can be learnt and enhanced by training and 
practice; as shown in the case study below。 The Sales Training Directory 
(sales…training…courses。uk》Directory) lists sales course 
providers in the UK。
110 The Thirty…Day MBA 
NEGOTIATING 
Like selling; negotiating; of which it usually forms a part; is as much a 
science as an art。 There are a few immutable rules; easily understood but 
invariably difficult to execute: 
。 Aim high at the outset。 Unless you can find the point of resistance; you 
can’t find the outer limits of your negotiating range。 
。 You must be prepared to walk away from a deal and make that evident; 
if you are to have any negotiating leverage。 To achieve this you 
must have prepared plans B and C ready to execute if the terms you 
want can’t be achieved。 For example; when negotiating to buy out a 
petitor; have other businesses in the frame too; or have plans to 
enter that market without them。 
。 Search out a range of variables to negotiate other than price。 Delivery 
date; payment terms; quantities; currencies; shared future profits; knowhow 
swaps are just a handful of areas rich in negotiating possibilities。 
。 Never give a concession away。 Anything given for nothing is seen as 
being worth nothing。 Instead; trade concessions and always put the 
highest value possible on the concession。 ‘We will pay 30% upfront 
rather than the 20% you’re asking for (a gain for the seller) if you bring 
the price down to £1。2m rather than the £1。3m you’re asking’ (a gain for 
the buyer) is the place to start if you hope to hit a £1。25m final price。 
。 Talk as li。。le as possible。 The less you say the less you can give away。 
。 Once you have put a proposition on the table; shut up。 The first to blink 
is the loser。 
When Sumir Karayi started up in business in the spare room of his flat in 
West Ealing; London; he wanted his business to be distinctive。 He was 
a technical expert at Microsoft and with two colleagues he set up 1E 
(1e) as a mune aiming to be the top technical experts in 
their field。 The business name es from the message that appears on 
your screen when your puter has crashed。 Within a year of starting 
up the team had learnt two important lessons。 Businesses need leaders; 
not munes; if they are to grow fast and prosper; and they need 
someone to sell。 
On the remendation of an adviser Karayi went on a selling course 
and within months had won the first of what became a string of blue chip 
clients。 The pany is now one of the 10 fastest…growing panies in 
the Thames Valley; with annual turnover approaching £15 million; profits 
of 30 per cent and partners and reseller partners worldwide。
Marketing 111 
MARKET RESEARCH 
The purpose of market research is to ensure you have sufficient information 
on customers; petitors and markets so that you can be reasonably 
confident that enough people want to buy what you want to sell at a price 
that will give you a viable business proposition。 
You do not have to launch a product or enter a market to prove there 
are no customers for your goods or services; frequently; even some modest 
market research beforehand can give clear guidance as to whether your venture 
will succeed or not。 
While big businesses may employ market research agencies to design 
and execute their research; an MBA should both understand the process 
and be able to carry out elementary research themselves quickly and on a 
low budget。 
The fundamental goals of market research 
The purpose of market research from an MBA’s perspective is twofold: 
1。 To build credibility for a business proposition。 The MBA must demonstrate; 
first to his or her own satisfaction; and later to colleagues; 
superiors and eventually to financiers; a thorough understanding of the 
marketplace for the new product; service or strategy。 This will be vital if 
resources are to be a。。racted to execute the proposal。 
2。 To develop a realistic market entry strategy for the proposed course of 
action; based on a clear understanding of genuine customer needs and 
ensuring that product quality; price; promotional methods and the distribution 
chain are mutually supportive and clearly focused on target 
customers。 
You will need to research in particular: 
。 Your customers: Who will buy your goods and services? What particular 
customer needs will your business meet? How many of them are 
there? 
。 Your petitors: Which established panies are already meeting 
the needs of your potential customers? What are their strengths and 
weaknesses? 
。 Your product or service: How should it be tailored to meet customer 
needs? 
。 What price should you charge to be perceived as giving value for 
money? 
。 What promotional material is needed to reach customers; which newspapers; 
journals do they read?
112 The Thirty…Day MBA 
。 Whether or not your operational base is satisfactorily located to reach 
your customers most easily; at minimum cost。 
Seven steps to successful market research 
Researching the market need not be a plex process; nor need it be 
very expensive。 The amount of effort and expenditure needs to be related 
in some way to the costs and risks associated with the proposition。 The 
market research needs to be conducted systematically following these 
seven stages: 
1。 Formulate the problem: Before embarking on your market research you 
should first set clear and precise objectives; rather than just se。。ing out to 
find interesting general information about the market。 
So; for example; if you are planning on selling to young fashion…conscious 
women; among others; your research objective could be: to find 
out how many women aged 18 to 28; with an ine of over £35;000 
a year; live or work within your catchment area。 That would give you 
some idea whether the market could support a venture such as this。 
2。 Determine the information needs: Knowing the size of the market; 
in the example given above; may require several different pieces of 
information。 For example; you would need to know the size of the 
resident population; which might be fairly easy to find out; but you 
might also want to know something about people who e into 
the c

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