Chapter 12 Flashcards

1
Q

negotiation

A

the bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreement

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2
Q

life is a…

A

negotiation

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3
Q

negotiation philosophies

A

ultimate goal is to reduce/resolve conflict

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4
Q

non-negotiation selling

A

price
credit terms
(fairly stable)

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5
Q

negotiation selling

A

typical for large/important clients
more intensive planning
large number of people from selling firm involved

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6
Q

negotiation objectives

A

understand value you are offering

  • plan for concessions (target, min, and opening positions)
  • adaptive planning (if this, then that)
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7
Q

team selection and management

A
  • equal team size
  • defined roles
  • team leader
  • established rules
  • practice to understand respective roles
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8
Q

competing mode

A

assertive and uncooperative

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9
Q

accommodating mode

A

unassertive and highly cooperative

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10
Q

compromising mode

A

middle in terms of cooperativeness and assertiveness

mutual solution

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11
Q

collaborating mode

A

assertive and cooperative and find max satisfaction for everyone

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12
Q

preliminaries

A

conversations to break the ice

ensure a comfortable environment

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13
Q

establish a win win environment

A

prepare an agenda or listing of what will be discussed and in what sequence

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14
Q

general guidelines for negotiation meeting

A

listen carefully
keep track of issues
consider cultural differences

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15
Q

agenda for negotiation meeting

A
intro
agree on agenda
issues
break
issues
summary of agreement
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16
Q

dealing with win-lose negotiators

A
  • detach yourself
  • acknowledge position and respond
  • build them a bridge
  • warn, don’t threaten
17
Q

lowballing

A

when one party intentionally underestimates or understates a cost

18
Q

nibbling

A

small extra, or add on, the buyer requests after the deal has been closed

19
Q

browbeating

A

attempt to alter the selling team’s enthusiasm and self-respect

20
Q

negotiation jujitsu

A

salesperson steps away from the opponent’s attack

21
Q

emotional outburst tactic

A

“I can’t believe you’d do this after all these years”… in hopes that they will concede

22
Q

concessions

A

one party agrees to change a position in some fashion

23
Q

bdget limitation tactic/budget bogey

A

everything is perfect but you’ll have to come down to our price in order to do it

24
Q

red herring

A

bringing up minor point first to distract the other side from considering the main issue

25
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?"
26
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