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。 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 kn