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SPANCO and Types of Negotiation

The SPANCO process outlines the typical 6 stages of a sales cycle: 1) Suspect stage where target markets are identified, 2) Prospect stage where leads are identified, 3) Approach stage where customers are met, 4) Negotiate stage where offers are negotiated, 5) Close stage where orders are finalized, and 6) Order stage where orders are delivered and accounts are followed up. There are two types of negotiation: distributive where parties compete over a single issue like price, and integrative where parties work together to find solutions across multiple issues that benefit both sides.

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1K views2 pages

SPANCO and Types of Negotiation

The SPANCO process outlines the typical 6 stages of a sales cycle: 1) Suspect stage where target markets are identified, 2) Prospect stage where leads are identified, 3) Approach stage where customers are met, 4) Negotiate stage where offers are negotiated, 5) Close stage where orders are finalized, and 6) Order stage where orders are delivered and accounts are followed up. There are two types of negotiation: distributive where parties compete over a single issue like price, and integrative where parties work together to find solutions across multiple issues that benefit both sides.

Uploaded by

Rahul Gaha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Q. What is SPANCO Process?

Ans. SPANCO is an abbreviation of 6 stages of a typical sales cycle which usually occurs during
every sales process. Namely:

Stage 1: SUSPECT (Define a Target Market)


In this stage, we have to check seeing whether there is an actual need for the service or product
and identify the potential customers.

Stage 2: PROSPECT (Identify the leads)


Here the sales people have to identify customers who might be interested in the service or
product. To further convert them into a long term customers.

Stage 3: APPROACH (Reach the Customer)


During this stage, you go on to meet the clients identified during the Prospecting stage. This
meeting can happen either virtually using phone & video calls or physically by meeting in person.
In this stage, the sales person tries to identify the client's requirements, analyze them, and offer a
solution.

Stage 4: NEGOTIATE (Negotiates the offer)


This is one of the most crucial stage of the sales cycle as this decides whether the client would buy
from you or not. It involves negotiation with the clients on the pricing aspect of the deal and its
associated terms & conditions. During this stage, you should demonstrate the value of your product
to be more than what the customer is going to pay. 

Stage 5: CLOSE (Finalize the Order)


The order gets finalized and all negotiations get completed by this stage .The sales person needs
to explain to the customer all terms and conditions of the deal and after obtaining customer’s
consent through sign on the contract and completing all the necessary formalities.

Stage 6: ORDER (Follow up the Account)


This is the last stage of the sales cycle, wherein the Client would issue the purchase order and
Order is delivered. Once a Purchase Order (PO) is issued, the salesperson has to hand over
concerned department then to delivery team which would carry it forward. The client's
responsibility is transferred to them and marks the end of the sales cycle.

Q. Types of Negotiation.
Ans. Negotiation is a method by which people settle differences. It is a process by which
compromise or agreement is reached while avoiding argument and dispute. This is conducted
between two person or party.

There are two types of negotiation:

1. Distributive negotiation

A distributive negotiation is a negotiation in which parties are haggling over to extreme side
concerning one issue i.e. the price of a given commodity or service. This turn into a competition of
who will end up with more piece of pie. Distributive bargaining is a
competitive bargaining strategy in which one party gains only if the other party loses something.
Example: bargaining over a commodity in local Bazaar.

2. Integrative negotiation

Integrative negotiation is often referred to as “win-win” and typically entails two or more issues to
be negotiated. In this strategy in which the involved parties work together to find a solution that
satisfies the needs and concerns of each other. Both the parties brainstorm to suggest different ideas
that benefit both of them. Example: salary, benefits, start date, holidays etc in the a job negotiation.

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