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½Negotiation involves two or more parties with
competing or conflicting interests or needs,
working towards an agreement on how they
will cooperate.´
- O
Assertive Persuasive
Patient Decisive
Open-Minded áonfident
áareful Listener áonsiderate
Self-Disciplined Prudent
áreative Respect for Others
Flexible Ability to Handle Pressure
Highly Ethical
Factual
Negotiator
Lead Relational
Negotiator Negotiator
Negotiating
Roles
Logical Intuitive
Negotiator Negotiator
Factual Negotiator
Features
Knows all facts related to the issues
Asks factual questions
Ensures that no fact is left out
Provides information
Problem
Tendency to leave emotional issues aside while focusing on
details and make the other party hostile
Relational Negotiator
Features
Establishes relationships with the other party
Builds trust
Is sensitive to the other party¶s emotional issues
Perceives the position of the other party
Problem
Propensity to concentrate on building relationships and lose sight
of the reason for negotiation
Intuitive Negotiator
Features
Able to proffer unexpected solution
Able to separate key issues from others
Visualizes implications of proposal
Accurately guesses the progress of negotiation
Sees the picture
Problem
This may be dangerous because of wildness and lack of discipline
Logical Negotiator
Features
Sets rules of negotiation
Develops an agenda
Argues logically
Adapts position to meet changing situation
Problem
Likely to see the process as being more important that content or
outcome
The Lead Negotiator
áompromisers
Problem Solvers
Accommodators
áompetitors
Avoiders
Nemawashi
To dig around a root before transplanting it
Positional Power
Information Power
áontrol of Reward
áoercive Power
Access to and áontrol of Agenda
Using Power in Negotiation
A Be able to manipulate meaning and symbols
A Maintain a measure of flexibility
A Use personal power through confidence
A Be able to manipulate rewards
A Develop networks and alliances
A Know the area in which you intend to negotiate
½Leverage is having something that
the other guy wants. Or better,
need. Or best of all, simply cannot
do without´
Ñ O
Three Positions for Decision Analysis
Ideal Position
Realistic Position
Fallback Position
BATNA
The Best Alternative to a Negotiated Agreement
(BATNA) provides more leverage for favourable
positioning.
Initiate Negotiation, Foster áonducive Platform
!
áonduct Positional Evaluation, Assess Interests, Identify & Review Realistic Openings
Assert and Present Options, Highlight Solution álusters
"
Steer Parties to a Favourable áonvergence
Endorse Agreement, Manage áordiality
Ñ
Identifying Buying Signal
i. Assumptive ownership
ii. Issuing instruction for delivery
iii. áoncentrated attention to buying details
iv. Disappointment at lead time for possession
v. Looking intently at the product
vi. Asking questions about usage of product
Action during Sales Negotiation
Be prepared for tactical response in form of flinch or silence
Use open-ended questions
Mention benefits the prospect would derive from product/service
Don¶t be hasty to fill pauses during sudden silence.
Listen
Be ready to change value proposition to confirm price concession
Identify tracks towards agreement
áonclude agreements from time to time
Paraphrase client¶s statements and demonstrate commitment
Action After Sales Negotiation
Do the following, if agreement is accomplished
1. State agreement verbally and in draft
2. Reinforce purchase decision of prospect/customer and express
thankfulness.
Dutch Auction
Auction
i
! O
Deadlock
Analyse
Potential
Ally¶s
Interests
Assess our
Resources
Relevant to
Potential Ally
Diagnose
our
Relationship
with Potential
Ally
Select
Influencing
Approach
Execute and
Monitor our
Approach
Ñ
Goals of Lease Negotiation
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