Introduction - Understanding Sales Cycles in Sustainable Fashion
Business negotiation refers to the discussion between two or more organisations and business entities, considering the focus on finding a resolution to a conflict. The aim of business negotiation is to come to a win-win situation which refers to the fact of mutual benefit and signing contracts in the end. Business negotiation is of utmost importance since it can also refer to a strategic discussion that might help companies or organisations to solve their issue where both parties can find an acceptable resolution (Dias, Ribeiro, and Albergarias, 2019). Additionally, both parties can benefit mutually. At the same time, international business denotes the business that mainly operates beyond the national borders, and it is associated with the selling of products or services between countries. In this regard, there is an extreme significance of negotiation in the context of international business, and it can be mentioned as a way of deliberate introduction between two or more business entities who are originating from diverse nations or countries and aim to define or redefine their business matters independently. Negotiation in international business is essential since it can influence the entire process of getting better deals offered by other parties or business entities. It is a voluntary process where both business entities can modify their offers and can sign contracts where they will be benefited together (Pedersen, Ritter, and Di Benedetto, 2020). In this report, the introduction of a product along with the sales cycle to sell the product will be taken into consideration.
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The product selected is sustainable clothing, and it can be mentioned as a part of sustainable fashion that not only aims to reduce the impact on the environment however the introduction of the new product will help people to be mindful while using these products. In simpler words, it can be mentioned as a part of fashion which will be ethically produced and environmentally friendly. Sustainable clothing includes a diverse range of clothing items for women, men and children and only natural and recycled fabrics will be used to manufacture the clothing items. The use of chemical treatment and water will be significantly less so that it cannot impact the environment directly (Rausch and Kopplin, 2021). Considering this, it is essential to know about sustainability and its aspects, and sustainability is all about considering the significant requirements of present generations without the need of compromising the requirements of future generations. Sustainability helps people to keep a balance between social well-being, economic growth and environmental care. There are mainly three principles of sustainability, such as society, the environment and the economy and there is the theory of the "triple bottom line" of sustainability that also refers to three central pillars, such as profit, planet and people. The new product will promote the aspects of the "triple bottom line" and the need for sustainability.
Considering the introduction of sustainable clothing, the sales cycle of "Johnston's or Futrell" will be used. The sales cycle is of utmost significance, and it describes all possible steps of sales, starting from contacting customers to closing the deal, along with follow-ups. It can be mentioned as a journey of potential customers, from identifying their need for a product to making a decision to purchase (Bayu Pratama, 2020). Additionally, the sales process is a roadmap for salespeople. The sales cycle is significant since it can help an organisation or a business to ensure their process of selling is effective, and the business should use the sales cycle to keep track of the journey of the salesperson. However, it is crucial for a business to make outlines so that it can define its strategies effectively and systematically. In addition to this, a sales cycle can help a business to deliver its products or services which will be aligned with the needs of the customers. With an effective sales cycle, a business entity can easily organise the sales pipeline of the organisation, and at the same time, it can prioritise customers.
It is basically a tactical and repeatable procedure followed by the salesperson in order to turn a lead into a potential client (Mortensen et al., 2019). While using a sales cycle, a salesperson always knows the next movement that might help him or her to sell the particular product to the customer. The approaches of this salesperson can help him or her to achieve success, and at the same time, he or she can determine how to improve their sales approach.
Stages of sales cycle (Johnston's or Futrell)
Considering the selected sales cycle, it can be found that there are mainly seven stages of the sales cycle.
Prospecting:The first stage of the sales cycle is the prospect for leads, and in this regard, for selling something, it is essential to have a customer. Additionally, the business of sustainable clothing will identify the potential prospects at the very beginning of the sales procedure, and a solid understanding is a must to define the intention of selling. Every salesperson in the sustainable clothing business will have to know why the customers should buy the specific product he or she is selling and what kind of problems or issues the product might resolve (Johnston and Marshall, 2021). These answers can help the salesperson to get potential customers, and if the salesperson can be able to prospect the customers, it will be possible to get more customers, reaching more customers will be possible.
Contacting: The second stage is all about contacting potential customers, and in this regard, a business entity should initiate contact after identifying its prospects. In this regard, the business of sustainable clothing will use an effective communication channel which will help the business to contact its prospects. Traditional sales letters and email, messaging, and various other forms of contact will be used for establishing contact with the potential customers and thereby, it would be possible to set up formal meetings with them (Bolander et al., 2020).
Qualifying the customers:Qualifying the customers is the third stage of the sales cycle, and in this regard, the business of sustainable clothing will try to understand the customers effectively. After the contact stage, it is one of the most critical stages, and it can help the business to fix formal meetings with the customers. It is evident that if the business of sustainable clothing is able to implement this stage effectively, it would be possible to save resources as well as time for the company. Finding the most potential customer who can make an effective purchasing decision will be possible.
Presenting the product: Presenting the product is the 4th stage of the sales cycle, and in this regard, the business of sustainable clothing will present the product portfolio. It is the most critical stage of the entire sales cycle, and in terms of qualifying this stage, the business of sustainable clothing requires lots of preparation. The salesperson will have to present the sustainable clothing items defining all the importance and the issues it can solve (Razmak et al., 2022). Demonstration about the product can help the salesperson to get the trust of the customer, and thereby, it would be possible to sell the product effectively.
Overcoming the objections: The fifth stage is overcoming the objections of the customers, and in this regard, the business of sustainable clothing will try to understand the significant objections of their potential customers. Additionally, while selling the product to the customers, negotiation will be of utmost importance, and it is obvious that customers will negotiate for the cost of the products. Regarding this, the salesperson will have to negotiate with the customers effectively to maintain a good profit margin against all qualitative products.
Closing the sale: Closing the sale is the 6th stage of the sales cycle, and it can be mentioned as the moment of truth. There are a number of sales approaches that might help a business entity or a salesperson to close this sale, and it completely depends on the preceding stages and how the salesperson has tried to influence the customer (Lam, Mulvey, and Robson, 2022). Regarding this, the salesperson of the business of sustainable clothing will have to read the attitude of the customers so that he or she can understand the decision-making of the customer. If the salesperson of sustainable business clothing finds that the customer is attentively listening to the salesperson about the products, then the salesperson can establish a good connection with the customer and can easily sell the product. Thereby the salesperson and the entire business should know that after closing the first deal or selling a product, the sales do not over. The business will have to try to sell other products to the customers by continuously contacting and establishing good relationships with them.
Generating referrals: Generating referrals is the last stage of the sales cycle, and in this regard, the salesperson of the sustainable clothing business will have to ask the customers for referrals just after closing a sale. It is important to establish good relations with customers so that the customers can recommend that product to other customers. It can help the business to save time and energy and can directly contact other people to sell their products. It can help to increase the sales of the company, and at the same time, the customer base of the company will also be increased. With the help of the selection of the sales cycle, it would be possible to describe all the steps effectively that might help a salesperson to be effective at his or her responsibilities. A salesperson can use the entire sales cycle as a road map and can learn a lot of things from here (Brashear-Alejandro et al., 2019). With the help of this sales cycle, a salesperson, as well as the business, can understand how to sell products to the customers by gathering all possible information and how important negotiation is. It can be mentioned that selling a specific product to a customer is not the end of a sale; however, a business entity should track the purchasing behaviour of the customer and should establish a good relationship with those customers. A business should send messages, emails etc., to let them know about various discounts and offers to attract them. Additionally, it has become easy for various companies nowadays the use websites and social media (Rajabi et al., 2021). Businesses can be able to recognise those people who visit the website of the business, and the business can get the contact information of the customer and can contact them easily. This can help the business to increase its customer base.
It can be concluded that an individual can learn a lot of things from the stages of the sales cycle, and the exercise helps to know about negotiation and how important it is in terms of international business and for selling a product to customers. In this regard, it has been learned that with the help of negotiation, two or more parties can solve a conflict and can benefit mutually. In terms of selling a product, negotiation is also significant, and the salesperson must know all possible approaches considering negotiation so that it can be possible to earn a good profit margin. From the seven stages of the sales cycle, the prospects, as well as the ways to close a deal through proper negotiation, have been learned, which is the major benefit of the exercise. Furthermore, a sales cycle can help a business to deliver its products or services which will be aligned with the needs of the customers. With an effective sales cycle, a business entity can easily organise the sales pipeline of the organisation, and at the same time, it can prioritise customers. The possible challenges that might be faced on the presentation day can be a lack of effective starting and failure to engage. In order to resolve the challenges, it would be important to understand the simple consequences of the exercise, and it will help to present effectively.
References
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