nego

1. S
CHAPTER 3 - SETTING
OBJECTIVES AND DETERMINING
POSITIONS

2. Identify Objectives
S Objective: A specific result a person aims to
achieve (within a timeframe and available
resources)
S Questions to identify objectives:
1.What are you trying to accomplish in this
negotiation?
2.What are they (other party) trying to accomplish?

3. Negotiation Objectives
Business Personal
Increase revenue, gain
market share, reduce
cost, acquire a key
customer, get resource
from another internal
unit, buy something at a
reasonable price
Enhance reputation,
maintain a strong
relationship, increase
the power in future
negotiations, look good
to management

4. Needs/Objectives Matrix
List as many
as possible
Circle the
most critical
ones

5. Setting Objectives and
Determining Positions
Position: one way to accomplish objectives or satisfy
needs

6. Settlement Range
S Desired Settlement Point (DSP): the point represents the
“fair deal" - Always set this point first
S Opening Position (OP): the point at or above your DSP
that: (1) high and (2) defensible
S Walk-away (WA): the point at which the other party’s OP
is unacceptable

7. Settlement Range
Seller
DSP OP
WA
$1,500 $1,700
$1,300
Buyer
DSP
OP WA
$1,400 $1,600
$1,200