Negotiations Flashcards
Definition of negotiation
“Negotiation is about getting the best possible deal in the best possible way.”
Types of negotiations (scenarios)
Win- win (aims to create mutual gain and find solutions that meet the needs of all parties involved by considering their common interests.)
Win- lose ( Distributive negotiation aims to divide a limited resource (e.g. money, time) among parties and focuses on each party’s individual interests.)
What are the three P´s of influence
Position (power?)
Perspective (empathy, people)
Problems (solutions)
Factors for success in negotiations
Legitimacy of your case
Confidence in presenting it
Courtesy to the other party
Adaptation to the other party’s style
Rapport
Incentives and trade offs
Research the bigger picture
Negotiation is about conflict. Why is this not a bad thing?
Negotiation is about fixing problems
Can also be a source of learning, better decision making and improving working relationships.
Outcome options in negotiations
Complete failure (No agreement)
One sided outcome (win-lose)
Particular Success (agreement to compromise)
Success (maximal satisfaction for booth parties)
Difference between option and offer
Option= no commitment, just ideas, comes in bunches
Offers= imply commitment, come one at a time, Solve problem in one swoop
What is the two types of Negotiation Strategies
Competitive Negotiations
Collaborative Negotiations
Bullet points in Collaborative Negotiations?
Problem-solving approach
Create more value for all
Win-Win outcomes
Aka: Integrative negotiations
Bullet points in Competitive strategy
Positional approach
Claim your share of value
Win-Lose outcomes
Aka: Distributive negotiations
How to avoid early Anchoring
Explore interests first.
Search for objective standards.
Let objective standards make 1st offer.
Explore options.
Remember your interests.
Know your BATNA.
What is Anchoring?
when a buyer creates an “anchor” in their decision-making process about what they expect from a sale and what parameters they want to negotiate
What is BATNA
Best Alternative to a Negotiated Agreement
Why develop a fallback plan before negotiation?
Keeps you from accepting an offer you shouldn’t reject
Keeps you from rejecting an offer you should accept
