Negotiation- (Origin Latin Nego- Otio) Not in leisure but conducting business

It is a mutual agreement between two parties on set of tangible or intangible items resulting in
a balance of interest of both the parties. In negotiation, basic work is to identify the needs.
Identifying the needs being the buyer is very important since all that matters while buying is
the need for the product. If there is need then only should plan on moving ahead for the
negotiation.
In the process of negotiation being buyer should always make sure that he/she do not reveal
the need towards that product/service. This may lead to exploitation or there are chances to be
taken advantage of the buyer.
Styles There are 5 styles in negotiation, they are: - (Buyers angle)

Collaborative style- In this type both the buyer and seller have win-win situation.
Competitive style- Here in this buyer is having the advantage over the seller,
Accommodative style- In this style more basically focuses on the relationship
between the buyer and the seller. Maybe the seller or the buyer are interested in
building the relationship in the business so may sacrifice ones advantage.
Personality style- In this more personal issues are interfered between the negotiations
which is not right thing to do while doing the business. Here there will be a chances of
losing the advantage and letting off the negotiation by the buyer or the seller.
Compromising style- Commonly seen/did negotiation style. Usually seller or the
buyer coats the price which is in a range and they decide to settle for a price in the
middle of the range. Example- Seller coats Rs.1000 for a product but the seller coats
Rs.800 the deal may be settled for Rs900.

Framework used

Best alternative to negotiation (BATNA) - Having an alternative negotiation which is

best or advantageous than the other. From this framework one can know when to
reject the offer or to accept the offer.
Reservation price- A favourable point at which buyer and the seller are comfortable to
accept the deal
Zone of possible agreements ZOPA)

Concession- There will be a give and take policy used.

Value- Giving something less and getting more or spending less on giving value and taking
more from the other party.
Preparation for the negotiation

Identifying the issue (1 or 2 major issue)

Issue classification ( analysed)

Factors for analysis

Economic implication To check whether there are any economic implication from
the deal. First should analyse other partys implication.
Should check the Past preceding of the other party

Executing on Time
Legal implications
Should set the priority on the tangible and nontangible items.

Defining the goals and objectives

What do we want?
What should we do to meet the wants?
Are we willing to give up or sacrifice to meet that wants?
What is requirements?

Should answer the following questions before entering into the negotiation
Should know the other partys issues, resources and also the interest like financials, interests,
needs, negotiation style. All these information need to be collected.