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Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
Negotiation
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Negotiation
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Negotiation
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Negotiation

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Negotiation is to trade something we have for something we want. Negotiation happens both at price level and value level. it is necessary to identify the techniques used in negotiating price and …

Negotiation is to trade something we have for something we want. Negotiation happens both at price level and value level. it is necessary to identify the techniques used in negotiating price and value.

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  • 1. Negotiation Training Presented By: Sarika Goel Mosaic Services NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 2. Negotiation You can Negotiate Anything NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 3. IndexWhat we will Cover NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 4. • Basics of Negotiation• What is negotiation• P/V Equation Reprised• Types of Negotiation• 3 Elements of negotiation• Negotiation Concepts• Negotiation Styles• Why Children are good negotiators• Negotiator Checklist NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 5. Basics ofNegotiation NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 6. • We all negotiate, all the time, at home, with family, with friends, at office, in public.• These negotiations can be about anything.• Negotiation is the most effective way of resolving conflicts and securing agreement.• A two way discussion to agree terms.• A process of discussion aimed at reaching agreement.• Establishing consensus among two or more parties. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 7. What isNegotiation NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 8. Negotiation is the useof information and It is influencingpower to affect others to getbehavior. what you want. To negotiate is to trade something we have for something we want. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 9. P-V Equation Reprised NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 10. Win-Win for both client and company Win:- Customer Loss:- Company/Sales Rep No benefit for the company Win:- Customer Loss:- Company/Sales Repvalue Customer feels cheated price NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 11. 2 Types ofNegotiation NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 12. Distributive Negotiation• A negotiation in which the parties compete over the distribution of the fixed some of value.• Key Question here is, “Who will claim the most value”?• A gain by one party is at the expense of the other.• The sellers goal is to negotiate as high as possible and the buyers goal is to negotiate as low as possible.• Win-Loose or Zero sum negotiation.• Thus, the deal is simple, no need for creativity. Neither party is interested in long term relationship. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 13. Integrative Negotiation•A negotiation in which the parties cooperate to achieve themaximum benefits by integrating their interests into anagreement.•These deals are about creating value and claiming it.•Win-Win situation. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 14. 3 Elements of Negotiation NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 15. 1 Power If you think you can or you cant, you are always right.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 16. The other side always seems to have more power and authority than you think you have. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 17. Power is the capacity or ability to get things done… to exercisecontrol over people, events, situations, oneself. As such, it isntgood or bad. It isnt moral or immoral. It isnt ethical or unethical.Its neutral.Believe firmly that you have power and you will convey that self-confident perception to others. It is you who determine how theysee, believe, and react to you. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 18. 2 Time As long as you get there before its over, you’re never lateNSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 19. The other sidedoesn’t seem to be under the same kind of organizational pressure, time constraints and deadlines you feel you are under. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 20. • Time plays critical role in negotiation• 80% of results are generally agreed upon in the last 20% of the time.• Time/Deadline pressure weakens you/build tension. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 21. 3 Information Some people feel the rain, others just get wet.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 22. The other side seems to know more about you and your needsthan you know about them and their needs. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 23. • More info you have, the better you will be able to negotiate.• Information and facts helps you to generate alternatives, strategies and convince the other party.• Information about the other party, market information, trends, technologies.• Published standards, guidelines, data equip you to put your points effectively. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 24. Mainstream NegotiationThe Road Always Travelled v/s The Road Less Travelled NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 25. 3 Price Side Techniques NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 26. Generating Competition The Hand you are dealt with: Client regard themselves as someone who wants to sell money. Money is the product up for sale. How do they get people to bid for the money. How to play: Create Competition for something you possess, i.e. knowledge and expertise. Never enter a negotiation without options.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011 One
  • 27. DealFrame/StructureThe Hand you are dealt with:Client use ‘what if’ statements to theiradvantage to which sales personmake a counter offer in client’s favor.How to Play:Power of Persistence; When presentingsomething to the other side, if clientdoes not agree/or use what ifstatements, don’t move on to nextoffer. Be persistent to what you haveoffered.Two NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 28. How important is that sale for you? The hand you are dealt with: Price Discount: Client generally says this is the least I can afford. Nine out of 10 times, the sales person will offer discounts. How to Play: Power of Risk Taking: Risk taking involves mixing courage with common sense. Not to do so may result in being out-negotiated. That means avoid becoming emotionally attached to a position wherein the other party can manipulate you with ease.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011 Three
  • 29. 5 Value Side Techniques NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 30. Value NibblingThe hand you are dealt with:The client would always induce youto invest in a situation. His initialapproach would be collaborativeas he Is hungry for help.How to play:Power of Investment: Make theother person invest his time withyou. At the beginning of eachencounter, you should approachpeople collaboratively. If you wantto become competitive later, butonly at the end, after the other sidehas made an investment.One NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 31. Satisfying Needs The hand you are dealt with: Value Exclusion: Clients generally ask for value exclusions like if I take the delivery on my own, if you don’t have to maintain it etc. Client indicates that my needs arent being fully met, so your needs should not be totally satisfied. How to Play: Use the Power of knowledge of Needs: Find the real needs of the other side which are rarely verbalized. If you can establish a reasonable guess about what someone’s needs are, you can predict, with remarkably certainty, what will happen in any interaction.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011 Two
  • 32. Documentation The hand you are dealt with: Discounting: You might encounter clients discounting your prices and saying you are way too expensive, I just cannot afford this, to which you generally make a counter offer or ask what is the best you can pay. How to Play: Power of legitimacy: Use the power of legitimacy when you encounter such situations. Printer words, documents, signs carry authority. Back your offer with some kind of printed documents.Three NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 33. Expertise The hand you are dealt with: You have no clue: When clients use statements like you have no clue about my business, have you ever working in this industry. It is when we come up with the sample work to prove our metal. How to Play: Power of Expertise: Establish your background and credentials early in the confrontation. If you do, your statements may not even be challenged. Ever notice do we question the statements of doctors, tax accountants, attorneys?NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011 Four
  • 34. AttitudeThe hand you are dealt with:We are too much involved and itgets very important for you to getthe sale, be it deadline pressure,you tend to go with all of the abovetricks which is a big NO.How to play:Power of Attitude: Develop theattitude of caring, but not caring toomuch. Develop ‘it’s a game’attitude and you will get betterresults because your attitude willconvey your feeling of power andmastery of your life. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011 Five
  • 35. NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 36. Time Constraint The hand you have dealt with: Ultimatum: Client would give ultimatum for take it or leave it, or if I pay you right away, can you give me this? How to Play: Don’t allow the other party to know any absolute time constraints you might be in. Use time to your advantage and know other person’s timelineNSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 37. Road to be travelledMake it as your ScreenSaver NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 38. Create Competition for something you posses Power Of Persistence Power Of Risk Taking Power Of Investment Power of knowledge of Needs Power of Legitimacy Power of Expertise Power of Attitude NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 39. NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 40. Negotiation Concepts NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 41. • BATNA (Best alternative to a negotiated Agreement): your options if you fail to reach agreement during negotiation.• Reservation Price: The least favorable point at which you will accept a negotiated deal, ‘the walk away price’.• ZOPA (Zone of Possible Agreement): The range in which a potential deal can take place; defined by the overlap between the parties reservation prices.• Value creation through Trades NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 42. Why BATNA?BATNA tells you when to accept and when to Rejectan agreement.•When a proposal is better than your BATNA: ACCEPT IT•When a proposal is worse than your BATNA: REJECT ITBATNA:•Develop “your” BATNA•Consider “their” BATNA NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 43. ZOPA $4500 $7000 Seller’s Walkaway position Seller’s Settlement Range ZOPA Buyer’s Settlement Range$0 $5000 Buyer’s Walkaway position NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 44. Value Creation through TradesTrade things you value less to the other partyExamples:•For a supplier the greater value may be not price but extendeddelivery time•For a customer, extended warranty versus price NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 45. Negotiating StylesHIGH Accommodate: Build friendly Collaborate: Problem solved relationship creatively, aiming for win-win Promote Harmony Search for common interests Avoid differences Problem solving behavior Give into pressure to save Recognize both party needs relations Win win becomes the main Concern for Relationship Place relations above fairness Compromise: Split the purpose difference Meeting Halfway Look for trade offs Accept half way measures Avoid: Take whatever you Aims to reduce conflict rather Defeat: Be a winner at can get than problem solving any cost Feeling of powerlessness Win loose competition Indifference to the result Pressure/intimidation Surrender Adversarial relationships Take what the other party is Defeating others becomes the willing to concede goal Concern for Substance LOW NSEZ SDF, E-9-E10, Noida Phase 2 HIGH © Mosaic Services copyright 2011
  • 46. Reasons whyChildren are suchGood Negotiators NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 47. Know exactly what they want (Intention)NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 48. They are persistent (Attention)NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 49. No does not mean No- It means maybeNSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 50. EmbarrasmentIs a technicalweapon notliability NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 51. They are prepared to trade a concession for another Concession.NSEZ SDF, E-9-E10, Noida Phase 2© Mosaic Services copyright 2011
  • 52. Super Sales Person Desktop Saver NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 53. Negotiation Check ListGood Practice Avoid•Don’t start with numbers •Interrupting•Actively Listen •Attacking•Question for clarification •Blaming•Summarizing •Talking too much•Test commitment •Sarcasm•Seeking and Giving info •Threats•Encourage Two way conversation •Taking it personally•Express Empathy •Closed Body Language•State and plan your proposal..thensummarize•Use the if you..then we will principle NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 54. Negotiation Exercise- 1 NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 55. Imagine you represent a prestigious European car manufacturer at theMotor Show. A hot prospect admires your latest model on display. Itsbeautiful... he opens the door, smells the leather, slides onto thedrivers seat. Gripping the padded steering wheel, his eyes wanderover the sumptuous dashboard and the curvesof the aeronautical design as he imagines driving his new sports car.Selling its many benefits you offer a glossy brochure, your businesscard and a warm farewell, believing he will soon return.Continuing his tour of the Motor Show hes greeted by a 50s-something manager of a competitive brand. Knowledgeable and well-experienced in the motor trade, the manager asks about the appeal ofother cars. "Well," says your hot prospect pointing your way, "the sportscar looks impressive.”"Dont buy your brand!" you hear your competitor tell him. "Youll losetens of thousands on the re-sale price.”You really want to sell this new car but what do you tell the customer? NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 56. Understand the changing dynamicsThe competitive dealer released negative information which adverselyaffected Franks previously-favourable thinking towards the luxury new car. And you. Was your competitor correct? Who knows? But your Hot Prospect, Frank, thought he was probablyright as his appearance (age, manner, clothing, direct questioning, and blunt warning) leant credibility to this belief. Unfortunately once the Genie is out of the bottle you can’t put it back. The competitive dealer replaced Franks positive thoughts about thenew car with a far more powerful negative thought – the loss of tens of thousands of dollars. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 57. Understand the other person’s thinking Franks new emotion is FEAR of future financial loss. In his currentstate of mind he will not buy your prestigious new car - truth is, he wont buy anything from you until you overcome his fear. Heres what to do - apply Antonym Thinking Counter his FEAR with its opposite – CONFIDENCE. Reassure him that he will not suffer financial loss. One Possability is a guaranteed buy-back price, a contract from your company guaranteeing to purchase the car at an agreed price at a future date. Doing so will give Frank the confidence to buy from you. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 58. Heres the Smart AnswerI won’t let you buy this car until our company protects yourinvestment. Let’s first agree ona guaranteed buy-back price to be repaid to you in the future. NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011
  • 59. Thank YouMy father said, you must never try to make all the money that’s in a deal. Letthe other fellow make some money too, because if you have a reputation for always making all the money, you wont have many deals. J. Paul Getty NSEZ SDF, E-9-E10, Noida Phase 2 © Mosaic Services copyright 2011

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