Selling and Negotiation Skills Session-3 Terms used in Negotiation TYPES OF NEGOTIATIONS

Agenda Terms used in Negotiations Types of Negotiations

Terms and their Meanings-1 Negotiation: a way of getting what you want from others by interactive communication designed to reach an agreement

Terms and their Meanings-1 Negotiation: a way of getting what you want from others by interactive communication designed to reach an agreement

Terms and their Meanings-2 Strategies and Tactics in Negotiations A strategy is “a careful plan or method, especially for achieving an end.” Tactics refers to “the skill of using available means” to reach that end

Terms and their Meanings-3 A situation of negotiation: is a realization that the desirable ends can be satisfied through a process of mutually beneficial exchanges between parties

Types negotiation situation i)Buying and selling : Exchanging for mutual benefit. ii) Influencing : get someone to agree to a view that is different from yours Iii)Seeking consensus of a group for any decision or a course of action for the group to follow iv) settling a dispute Class task: classify instances

Terms and their Meanings-4 Parties to negotiation: Two groups of people. First group: the party called as the Negotiating Party, Seller, proposer Second Group: The Other party, sometimes called as the Buyer, Opponent. These terms are used to analyze negotiations from learning perspective.

Terms and their Meanings-4 Proposal: the offer made by one party to the Other party for acceptance Agreement: The acceptance of a proposal by the other party Deal: To give a part or distribute in exchange, something of value Closing the deal. Completing the transaction

Types of Negotiations Distributive Negotiation Integrative Negotiation

Distributive Negotiations A negotiation in which the Pie( Payoff) is presumed fixed and commonly perceived to be the same among the parties. The parties agree to distribute the Pie fairly between them. Characterized by competition and aggression Negotiate to win only Pursues Win/Lose or Lose/Lose strategies. Sharing the Pie fairly Theirs Ours

Integrative Negotiations A Negotiation in which parties agree to co-operate and collaborate with one another to create a larger pie for each other. Characterized by Cooperation and collaboration Negotiate for a mutually enriching relationship Pursues Win/Win strategies Increasing the Pie Distributing a larger Pie

Real Negotiations Most Negotiations are mixed type They are Integrative followed by Distributive.