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Introduction

The document discusses the introduction, definitions, nature, P's, factors affecting, basic process, results and guidelines of negotiation. Negotiation is a process where two parties work to reach an agreement on mutually agreed terms. It requires flexibility and effective communication between two parties.

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wijerathnadilmi
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38 views

Introduction

The document discusses the introduction, definitions, nature, P's, factors affecting, basic process, results and guidelines of negotiation. Negotiation is a process where two parties work to reach an agreement on mutually agreed terms. It requires flexibility and effective communication between two parties.

Uploaded by

wijerathnadilmi
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Introduction of negotiation

Negotiation is a negotiation process where two parties work together to reach an


agreement on mutually agreed terms to acquire each other's wants. For examples:
 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 A 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 too 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.
BASIC NEGOTIATION PROCESS
 OFFER
 AGREEMENT
 COUNTER 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 attitude
 Narrow down to few points of dispute /conflict
 Step By step approach
 Find out the other parties state of mind/culture/background /likes & dislikes
 Hide your desire
 Think before you speak
 Know your market information
 Bring your own expert

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