Lecture 13 negotiating -part 1

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Lecture 13 negotiating -part 1

  1. 1. T343—Electronic Media Sales Negotiating
  2. 2. Negotiating <ul><li>Media negotiations are unique </li></ul><ul><ul><li>Most client are long-term </li></ul></ul><ul><ul><li>Product is perishable </li></ul></ul><ul><li>You must enter into negotiations expecting to close the sale </li></ul><ul><ul><li>Prospects/customers want to make a deal </li></ul></ul>
  3. 3. 5 Steps to Negotiation Process <ul><li>Approach the process with Knowledge </li></ul><ul><li>Preparation </li></ul><ul><li>Maneuvering for Dominance/Control </li></ul><ul><li>Bargaining </li></ul><ul><li>Closing & Getting Commitment </li></ul>
  4. 4. 5 Steps to Negotiation Process <ul><li>Approach the process with Knowledge </li></ul><ul><li>Preparation </li></ul><ul><li>Maneuvering for Dominance/Control </li></ul><ul><li>Bargaining </li></ul><ul><li>Closing & Getting Commitment </li></ul>
  5. 5. Information must be at the foundation of your approach <ul><li>Information about your client </li></ul><ul><ul><li>Remember “Discovery” is always ongoing </li></ul></ul><ul><li>Information about your client’s competition </li></ul><ul><ul><li>You must have knowledge about what your client’s competition is doing “in order for you to position your offers in a way that helps your [client] beat their competitors” </li></ul></ul><ul><ul><li>p. 216 </li></ul></ul><ul><li>Information about your competitors </li></ul><ul><ul><li>Just because you don’t bad mouth them doesn’t mean you aren’t aware of what they are doing </li></ul></ul><ul><li>Information about how your client views negotiation </li></ul>
  6. 6. 10 Steps to Preparing for Negotiation Find a Link to this in my notes on Chapter 12 of the Courseload Textbook
  7. 8. 10 Steps to Preparing for Negotiation <ul><li>Assess the Situation </li></ul>
  8. 9. Don’t let the desire to form a “partnership” result in your being blackmailed
  9. 11. “ Your goal should be to develop strong relationships with your customers so they trust you to bring them the best available deals at all times. Mutual trust keeps negotiating to a minimum and makes tacit coordination possible” pg. 221
  10. 12. 10 Steps to Preparing for Negotiation <ul><li>Assess Your Situation </li></ul><ul><li>Determine Your Negotiator Style </li></ul>
  11. 14. 4 types of negotiators <ul><li>Competitors </li></ul><ul><ul><li>“ I win, you lose” </li></ul></ul><ul><ul><li>Negotiation is a game </li></ul></ul><ul><li>Cooperators </li></ul><ul><ul><li>“ I win, you win” </li></ul></ul><ul><ul><li>Maximize joint gain, build trust, enhance the relationship </li></ul></ul><ul><li>Narcissists </li></ul><ul><ul><li>“ We’re both going to lose” </li></ul></ul><ul><ul><li>This is because they think they don’t want to give an inch </li></ul></ul><ul><ul><li>When you don’t give an inch either, they shift to competitors </li></ul></ul><ul><li>Accommodators </li></ul><ul><ul><li>“ I lose, you win” </li></ul></ul>
  12. 16. “ One of your objectives in negotiations is to train the prospect/client to cooperate by demonstrating that both sides can win, to show them that negotiating fairly and in good faith can produce an outcome that is beneficial for both sides. However, it is very difficult to change a person’s negotiating style, so be prepared to be competitive if you have to.” p. 202
  13. 17. 10 Steps to Preparing for Negotiation <ul><li>Assess Your Situation </li></ul><ul><li>Determine Your Negotiator Style </li></ul><ul><li>Determine Your Objectives </li></ul>
  14. 18. Objectives: MADCUD <ul><li>M easurable </li></ul><ul><li>A ttainable </li></ul><ul><li>D emanding </li></ul><ul><li>C onsistent with Company Goals </li></ul><ul><li>U nder YOUR Control </li></ul><ul><li>D eadlined </li></ul>
  15. 20. 10 Steps to Preparing for Negotiation <ul><li>Assess Your Situation </li></ul><ul><li>Determine Your Negotiator Style </li></ul><ul><li>Determine Your Objectives </li></ul><ul><li>Determine Leverage </li></ul>
  16. 21. Leverage <ul><li>Positive or Negative </li></ul><ul><li>Ways of improving leverage </li></ul><ul><ul><li>BANTA (having another option) </li></ul></ul><ul><ul><li>Tit-for-Tat tactic…repeat their demands </li></ul></ul><ul><ul><li>Warning </li></ul></ul>
  17. 23. Leverage <ul><li>Positive or Negative </li></ul><ul><li>Ways of improving leverage </li></ul><ul><ul><li>BANTA (having another option) </li></ul></ul><ul><ul><li>Tit-for-Tat tactic…repeat their demands </li></ul></ul><ul><ul><li>Warning </li></ul></ul><ul><ul><li>Bluff </li></ul></ul>
  18. 24. 10 Steps to Preparing for Negotiation <ul><li>Assess Your Situation </li></ul><ul><li>Determine Your Negotiator Style </li></ul><ul><li>Determine Your Objectives </li></ul><ul><li>Determine Leverage </li></ul><ul><li>Estimate the Ballpark, Commit to Walk-Aways, Set Anchors </li></ul>
  19. 25. Ballparks <ul><li>Ballpark </li></ul><ul><ul><li>The difference between a buyer’s initial offer and your H ighest L egitimate E xpectations (HLE) </li></ul></ul><ul><ul><li>HLEs include more than price </li></ul></ul><ul><ul><ul><li>Production expectations </li></ul></ul></ul><ul><ul><ul><li>Ad positions </li></ul></ul></ul><ul><ul><ul><li>Promotions </li></ul></ul></ul>
  20. 26. Walk-aways <ul><li>The absolute lowest conditions (price, contract details, etc.) that you will take. </li></ul><ul><li>You must be COMMITTED to this. </li></ul><ul><li>But, don’t (mentally) focus on them. Instead, focus on your HLE </li></ul>
  21. 28. Anchors <ul><li>Your opening offer </li></ul><ul><li>It sets the perception of your walk-away in the minds of the prospect/client </li></ul>

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