Chapter 12

Question 1

negotiation

Answer 1

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

Question 2

life is a…

Answer 2

negotiation

Question 3

negotiation philosophies

Answer 3

ultimate goal is to reduce/resolve conflict

Question 4

non-negotiation selling

Answer 4

price
credit terms
(fairly stable)

Question 5

negotiation selling

Answer 5

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

Question 6

negotiation objectives

Answer 6

understand value you are offering

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

Question 7

team selection and management

Answer 7

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

Question 8

competing mode

Answer 8

assertive and uncooperative

Question 9

accommodating mode

Answer 9

unassertive and highly cooperative

Question 10

compromising mode

Answer 10

middle in terms of cooperativeness and assertiveness

mutual solution

Question 11

collaborating mode

Answer 11

assertive and cooperative and find max satisfaction for everyone

Question 12

preliminaries

Answer 12

conversations to break the ice

ensure a comfortable environment

Question 13

establish a win win environment

Answer 13

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

Question 14

general guidelines for negotiation meeting

Answer 14

listen carefully
keep track of issues
consider cultural differences

Question 15

agenda for negotiation meeting

Answer 15

intro
agree on agenda
issues
break
issues
summary of agreement

Question 16

dealing with win-lose negotiators

Answer 16

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

Question 17

lowballing

Answer 17

when one party intentionally underestimates or understates a cost

Question 18

nibbling

Answer 18

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

Question 19

browbeating

Answer 19

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

Question 20

negotiation jujitsu

Answer 20

salesperson steps away from the opponent’s attack

Question 21

emotional outburst tactic

Answer 21

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

Question 22

concessions

Answer 22

one party agrees to change a position in some fashion

Question 23

bdget limitation tactic/budget bogey

Answer 23

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

Question 24

red herring

Answer 24

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

Question 25

trial balloons

Answer 25

floating an idea without really offering it as a concession or agreement “what if we started using this, how much would it cost?”

Question 26

win win not yet negotiating

Answer 26

buying team gets its goals and selling team doesn’t BUT sellers expect to achieve their goals in the near future