NEGOTIATION
ART OF GIVE AND TAKE
Presented by-
RAVI KANT
09MBAPMG007
DEFINATION
o Negotiation is conferring with another person or
group to arrive at a settlement of some conflict.
INTRODUCTION
o Negotiation is a fact of life in sales organizations (all organizations)
and should be mastered rather than feared and avoided.
o Negotiation is useful for resolving conflict when the two sides:
– share an important goal.
– have some differences.
– are in a position to trade things that they value with
one another.
WHY STUDY NEGOTIATION?
o Effective negotiation techniques are useful for self-defense and for
improving one’s own position.
o Skilled negotiators will take advantage if they sense fear or
incompetence
o Executives have identified negotiation as one of the skills that business
students should possess in order to function effectively as managers.
o Once skills are mastered, prospects of sustaining productive
relationships when conflict arises will improve.
SUCCESSFUL NEGOTIATIONS
o The mark of a successful negotiation is a contract, written or verbal, that
signifies that a mutually agreeable solution to conflict has been reached.
o What is necessary to be a good negotiator?
– Most important: prepare thoroughly for the negotiation.
– Never enter negotiation when you are tired,
hungry or angry.
– Allow for the possibility of not reaching agreement .
o Always remember that nearly everything is negotiable. The other
party’s “last offer” may also be negotiable
NEGOTIATION PREPARATION
o Homework is the most important aspect of any negotiation process.
o Preparation endows negotiators with confidence in their ability and a
stronger, factually based belief in the correctness of their positions.
o Good negotiators understand the implications of each item on the
table, the consequences associated with various concessions, and
where the absolute bottom line of the negotiation lies.
PREPARING FOR A NEGOTIATION
o Define your goals, the other party’s goals, and the conflict.
o Identify the goals you share with the other party.
o Define the things you are willing to trade and their value to the other
party. Do the same for the other side: what they might offer you and
how much it is worth to you.
o Realize that you are no weaker or stronger than the other party. The
two sides share goals and both sides are willing to trade to attain their
objectives
WHAT TO DO DURING A NEGOTIATION
o Volunteer
to do the paperwork, to keep notes on what is being
agreed upon.
o Open by stating the goals you share.
o State your demands: high if selling, low if buying.
o If
you yield from your demands, yield in small amounts,
infrequently.
o Nevergive something for nothing. Trade what is cheap to you but
valuable to them for what is valuable to you but cheap to them.
DURING A NEGOTIATION
o Talk less and listen more: remember you will never give anything
away while you are silent. Use the silent period to think over what
has been said.
o Find alternatives.
o Take breaks.
o Reach for an agreement, but do not insist upon it unless necessary.
End results may be agreement, agreement to continue later, or end
of the negotiation.
DURING A
EGOTIATION
o What to Emphasize During a Negotiation:
– Repeat the goals you share with the other party from time
to time.
– State your position clearly and repeatedly.
– Clarify positions. Repeat what they said. Ask questions.
o
What to Avoid During a Negotiation:
– Do not make concessions early.
– When you make concessions, avoid large concessions.
Make the other side earn the concessions they get.
– Avoid irritating the other side or making them angry.
– Do not accept a deadline for reaching a settlement
NEGOTIATION AND
RELATIONSHIPS
o Though people often enter negotiations driven by self-centered
motives, the negotiation should also be influenced by the relationship
outcome the person desires after the negotiation process is over.
o The type of negotiation strategy one chooses will directly affect the
relationship they currently share or hope to develop with the other
party.
THANKS