2. Some questions answered in Chapter 14
What is negotiation selling? How does it differ from nonnegotiation selling?
What items can be negotiated in selling?
What type of planning needs to occur prior to a negotiation meeting?
How should a seller set objectives?
How can the negotiation session be effectively opened? What role does friendly conversation play?
What negotiation strategies and tactics do buyers use? How should negotiators respond?
What are the salesperson’s guidelines for offering and requesting concessions?

3. Think of the last time you were engaged in some kind of negotiation
As you think about the negotiation that took place, ask yourself if you were successful in meeting your objectives for the session.
Were you successful as a negotiator? Was the other person?

4. What can be negotiated? Inventory levels the buyer must maintain.
From Exhibit 14.1
Inventory levels the buyer must maintain.
Inventory levels the seller must keep on hand to be able to restock the buyer quickly.
Details about the design of the product or service.
How the product will be manufactured.
Display allowances for resellers.
Advertising allowances and the amount of advertising the seller does.
Sales promotion within the channel of distribution.
Delivery terms and conditions.
Retails and wholesale pricing points for resellers.

5. Which items reflect your personality and traits on an average day?
From Exhibit 14.2
Helpful
Inconsistent
Gambler
Use high pressure
Tactful
Risk taker
Receptive
Self-confident
Listener
Manipulative
Planner
Seek new approaches
Stingy
Perfectionist
Persistent
Easily influenced
Factual
Competitive
Stubborn
Think under pressure
Practical
Enthusiastic
Analytical
Afraid of conflict
Flexible
Economical
Controlled
Tolerate ambiguity
Passive
Gullible
Honest
Strong need to be liked
Arrogant
Endurance
Belligerent
Impatient
Organized

6. Add 1 point for each green item; subtract 1 point for each red item
From Exhibit 14.2
Helpful
Inconsistent
Receptive
Use high pressure
Passive
Risk taker
Gambler
Self-confident
Listener
Manipulative
Planner
Seek new approaches
Factual
Perfectionist
Persistent
Easily influenced
Stingy
Competitive
Stubborn
Think under pressure
Practical
Enthusiastic
Analytical
Afraid of conflict
Flexible
Economical
Controlled
Tolerate ambiguity
Tactful
Gullible
Honest
Strong need to be liked
Arrogant
Endurance
Belligerent
19-22: Excellent 15-18: Good 11-14: Fair
Impatient
Organized

7. Planning for the negotiation session
Choosing the location
Making proper time allotment
Setting negotiation objectives
Choosing and managing the negotiation team
Recognizing individual behavior patterns
Controlling information

8. Comparing buyer and seller price positions
Exhibit 14.3 SO
Buyer’s
opening
price ST
Buyer’s
target
price SM
Buyer’s
maximum
price $ $ ST
Seller’s
target
price SO
Seller’s
opening
price SM
Seller’s
minimum
price

9. Will bargaining be harder or easier?
Exhibit 14.3 SO
Buyer’s
opening
price ST
Buyer’s
target
price SM
Buyer’s
maximum
price $ $ SM
Seller’s
minimum
price ST
Seller’s
target
price SO
Seller’s
opening
price

10. Your opening position
Assume that you have been invited to a 3rd interview with Camadon next Friday. You know that if Camadon is going to hire someone, the job offer always comes in the 3rd interview. You also know they like to negotiate with their new hires.
What will be your target position, opening position and minimum position for your salary?
Camadon has also developed positions for your salary. How will you discover these positions before next Friday?

11. Preparing for negotiation
If you were a salesperson preparing for an upcoming negotiation session, who from your firm would you get involved in the planning?
Who would you select to be on your team?
What criteria would you use?

12. Preparing for negotiation
Assume that you are a member of a student group that is getting ready to negotiate with the student government association. Your group wants to host a job fair and you want to convince the student government group to provide funding. Develop an agenda for this meeting.

13. Mini-max strategy
Using the mini-max strategy for negotiation planning, the negotiator must answer four questions. Which of the following is one of those questions?
“What is the most I can offer without getting laughed out of the room?”
“What is the maximum I can accept?”
“What is the minimum I can ask for and not get laughed out of the room?”
“What is the minimum I can give away?”
None of the above.

14. Conflict-handling behavior modes
Exhibit 14.5
Assertive
Accommodating
Collaborating
Competing
Avoiding
Compromising
Competing
Collaborating
Compromising
Uncooperative
Cooperative
Avoiding
Accommodating
Unassertive

15. Competing mode Assertive and uncooperative
Collaborating
Compromising
Avoiding
Accommodating
Assertive and uncooperative
Tend to pursue their own goals at the expense of the other party.
Like to be surrounded by “yes men.”
Look for a win for themselves, a loss for the other person.

16. Avoiding mode Unassertive and uncooperative
Competing
Collaborating
Compromising
Avoiding
Accommodating
Unassertive and uncooperative
Do not attempt to fulfill their own needs or the needs of others.
In essence, they refuse to address the conflict.
They do not strive for any agreement.

17. Accommodating mode Unassertive but highly cooperative
Competing
Collaborating
Compromising
Avoiding
Accommodating
Unassertive but highly cooperative
Tend to neglect their own goals in order to satisfy the concerns of the other party.
They may seek a win-lose agreement where they are the losers!
Display excessive generosity and easily yield to another’s point of view.

18. Compromising mode
Competing
Collaborating
Compromising
Avoiding
Accommodating
These people are “in the middle” in terms of assertiveness and cooperativeness.
Attempt to find a quick, mutually agreeable solution that partially satisfies both parties.
The agreement reached does not usually maximize the satisfaction of the parties.
Will often say “Let’s just split the difference.”

19. Collaborating mode Assertive and cooperative
Competing
Collaborating
Compromising
Avoiding
Accommodating
Assertive and cooperative
They seek to maximize the satisfaction of both parties and reach a truly win-win solution.
Collaborators have the motivation, skills, and determination to really dig into an issue or a problem and explore all possible solutions.

20. Opposites
The exact opposite of the competing mode for resolving conflict is the avoiding mode.
True
False

21. Thinking it through
What if you do everything in your power to establish a win-win attitude with the buyer team, but they insist on viewing the negotiation as a series of win-lose maneuvers? Since they won’t play by win-win rules, should you?

22. Negotiation strategies
Asking for a small add-on or extra concession after the contract has been signed is called:
lowballing
nibbling
browbeating
shaving dollars
whittling

23. Has anyone used any of these win-lose negotiation strategies on you?
Emotional outbursts
Suddenly start crying, gets angry, or looks sad.
Lowballing (nibbling)
Reaches agreement, then adds additional items.
Good guy–bad guy routine
One person is very aggressive; then the second person is nice.
Budget limitation tactic
Calls for you to meet their budget ceiling.
Browbeating
Attempts to undermine another’s confidence.

24. Guidelines for making concessions
Get the buyer’s demands and opening position first.
Always get a concession in return for yours.
Concessions should gradually decrease in size.
Don’t be afraid to decline to make a concession.
All concessions offered are tentative.
Be confident and secure in your position.

25. Guidelines for making concessions
Don’t accept the first attempt at a concession.
Help the buyer see the value of your concessions.
Start the negotiation without preconceived notions.
If you realize you made a mistake, say so.
Don’t easily agree to “let’s split the difference” offers.
Know when to stop.
Use silence effectively.

26. Any questions about the terminology?
Accommodating mode
Adaptive planning
Agenda
Ambush negotiating
Avoiding mode
Brainstorming session
Browbeating
Budget bogey
Budget limitation tactic
Collaborating mode
Competing mode
Compromising mode
Concession
Emotional outburst tactic
Face
Good guy-bad guy routine
Lowballing
Minimum position
Negotiation
Negotiation jujitsu
Nibbling
Opening position
Sneak attack
Target position
Win-lose negotiating
Win-win negotiating
Win-win not yet negotiating