Chapter 12 Flashcards
negotiation
the bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreement
life is a…
negotiation
negotiation philosophies
ultimate goal is to reduce/resolve conflict
non-negotiation selling
price
credit terms
(fairly stable)
negotiation selling
typical for large/important clients
more intensive planning
large number of people from selling firm involved
negotiation objectives
understand value you are offering
- plan for concessions (target, min, and opening positions)
- adaptive planning (if this, then that)
team selection and management
- equal team size
- defined roles
- team leader
- established rules
- practice to understand respective roles
competing mode
assertive and uncooperative
accommodating mode
unassertive and highly cooperative
compromising mode
middle in terms of cooperativeness and assertiveness
mutual solution
collaborating mode
assertive and cooperative and find max satisfaction for everyone
preliminaries
conversations to break the ice
ensure a comfortable environment
establish a win win environment
prepare an agenda or listing of what will be discussed and in what sequence
general guidelines for negotiation meeting
listen carefully
keep track of issues
consider cultural differences
agenda for negotiation meeting
intro agree on agenda issues break issues summary of agreement
dealing with win-lose negotiators
- detach yourself
- acknowledge position and respond
- build them a bridge
- warn, don’t threaten
lowballing
when one party intentionally underestimates or understates a cost
nibbling
small extra, or add on, the buyer requests after the deal has been closed
browbeating
attempt to alter the selling team’s enthusiasm and self-respect
negotiation jujitsu
salesperson steps away from the opponent’s attack
emotional outburst tactic
“I can’t believe you’d do this after all these years”… in hopes that they will concede
concessions
one party agrees to change a position in some fashion
bdget limitation tactic/budget bogey
everything is perfect but you’ll have to come down to our price in order to do it
red herring
bringing up minor point first to distract the other side from considering the main issue
trial balloons
floating an idea without really offering it as a concession or agreement “what if we started using this, how much would it cost?”
win win not yet negotiating
buying team gets its goals and selling team doesn’t BUT sellers expect to achieve their goals in the near future
