PRESENTATION
ON
NEGOTIATION
INTRODUCTION
Negotiation is the process of bargaining, Where two
parties ,trying to reach an agreement on mutually
accepted terms to acquire each others wants.
Example:
- Customer trying to negotiate with buyer over a price
of a product.
- Negotiation for salary between
employee & employer.
DEFINITIONS OF NEGOTIATION
In the words of Bill Scott ,” a negotiation is a form of meeting
between two parties: OUR PARTIES & OTHER PARTIES”.
According to J.A. Wall, ”negotiation is a process in which two
or more parties exchange goods or services and attempt to
agree on the exchange rate for them.”
Winston’s Advanced Dictionary,” the discussions &
bargaining that goes on between parties before a contract is
settled or deal is agreed upon”.
NATURE OF NEGOTIATION
It requires involvement of two parties.
Requires flexibility.
A process not an event.
Needs effective communication.
Continuous process( i.e. between buyer & seller,
employer & employee for wages, working hours etc)
Win- win situation for parties involved.
P’s OF NEGOTIATION
Like P’s of Marketing, essentials of negotiation are called as P’s of
negotiation. They are as follows:
Purpose : aim is required otherwise it will result in wastage of money,
manpower & time.
Plan : main agenda on which negotiation is to be carried on.
Pace : main points should be covered in discussions, also proper breaks must
be introduced to maintain interest of peoples involved.
Personalities : negotiator initiating negotiation must have convincing power, effective
communication skills, can influence people & process of negotiation .
FACTORS AFFECTING NEGOTIATION
PLACE: Familiarity with surrounding helps in boosting
confidence.
TIME: Time should be adequate for smooth exchange of
ideas & securing agreement before it is to late .
ATTITUDE: Attitude of both parties should be positive,
i . e, willingness to make an agreement or deal.
SUBJECTIVE FACTORS: Like relation of two
parties involved, status difference, information & expertise.
NEGOTIATION PROCESS
OFFER
COUNTER
AGREEMENT
OFFER
COMPROMISE CONCESSION
OFFER: First proposal made by one party to another
in the negotiation stage.
COUNTER OFFER: Offer made by second party to
first party, or proposing their offer against first party
offer.
CONCESSION: Increase or decrease made in the
offer or change in the idea.
COMPROMISE: Sacrifice made by both or one
party.
AGREEMENT: Point where both parties agrees,
which is beneficial to both.
The Result of a Negotiation
Loss/Loss : Take the cake away so that neither
party gets it.
Win/Lose : Give it to one party or cut it unevenly.
Draw : Cut the cake down the middle.
Win/Win : Make two cakes which are of a much
larger size than the present size.
Guidelines For Successful
Negotiations
Positive Attitudes
Narrow down to few points of dispute /conflict
controversy
Step By step approach
Find out the other parties state of mind culture background's
Likes & dislikes
Hide your prove desire
Don’t disclose your deadlines
Think before you speak
Know your market information
Bring your own expert
THANK
YOU
