The document provides an overview of negotiation. It defines negotiation as a process where two parties try to reach an agreement by bargaining and exchanging goods or services. The key aspects of negotiation discussed include: - The five P's of negotiation: personalities, pace, plan, purpose, and process. - The negotiation process, which involves offers, counteroffers, concessions, compromise, and ultimately agreement. - Factors that can affect negotiations like time, attitude, place, and subjective considerations. - Different negotiation styles like win-win, win-lose, lose-lose and their implications. - Positive attitudes that can help negotiations like finding common ground and understanding other parties.

1. PRESENTATION
ON
NEGOTIATION
PRESENTED BY : VARSHA SHARMA
MBA-12

2. Negotiation is the process of bargaining, where two
parties trying to reach an agreement on mutually
accepted terms to acquire each others wants.
Example:
- Customer trying to negotiate with buyer over a price
of a product.
- Negotiation for salary between
employee & employer.
INTRODUCTION

3. DEFINITIONS OF NEGOTIATION
In the words of Bill Scott ,” a negotiation is a form of
meeting between two parties: OUR PARTIES & OTHER
PARTIES”.
 According to J.A. Wall,” negotiation is a process in
which two or more parties exchange goods or services
and attempt to agree on the exchange rate for them.”
 Winston’s Advanced Dictionary,” the discussions &
bargaining that goes on between parties before a contract
Is settled or deal is agreed upon”.

4. NATURE OF NEGOTIATION
 It requires involvement of two parties.
 Requires flexibility.
 A process not an event.
 Needs effective communication.
 Continuous process( i.e. between buyer & seller,
employer & employee for wages, working hours etc)
 Win- win situation for parties involved.

5. P’s OF NEGOTIATION
Personalities : negotiator initiating negotiation must have convincing power, effective
communication skills, can influence people & process of negotiation.
Pace : main points should be covered in discussions, also proper breaks must be
introduced to maintain interest of peoples involved.
Plan : main agenda on which negotiation is to be carried on.
Purpose : aim is required otherwise it will result in wastage of money,
manpower & time.
Like P’s of Marketing, essentials of negotiation are called as P’s of negotiation.
They are as follows:

6. FACTORS AFFECTING NEGOTIATION
• PLACE: Familiarity with surrounding helps in boosting
confidence.
• TIME: Time should be adequate for smooth exchange
of ideas & securing agreement before it is to late .
• ATTITUDE: Attitude of both parties should be
positive, i.e., willingness to make an agreement or deal.
 SUBJECTIVE FACTORS: Like relation of two
parties involved, status difference, information &
expertise.

7. NEGOTIATION
PROCESS
OFFER
COUNTER
OFFER
CONCESSIONCOMPROMISE
AGREEMENT

8.  OFFER: First proposal made by one party to another in the
negotiation stage.
 COUNTER OFFER: Offer made by second party to first
party, or proposing their offer against first party offer.
 CONCESSION: Increase or decrease made in the offer or
change in the idea .
COMPROMISE: Sacrifice made by both or one party.
 AGREEMENT: Point where both parties agrees, which is
beneficial to both.
EXPLANATION :

9. • Loss/Loss : Take the cake away so that neither
party gets it.
• Win/Lose : Give it to one party or cut it
unevenly.
• Draw : Cut the cake down the middle.
• Win/Win : Make two cakes which are of a
much larger size than the present size.

10. Positive AttitudesNarrow down to few points of dispute /conflict
controversyStep By step approach
Find out the other parties state of mind culture background's Likes
& dislikes
Hide your prove desire
Don’t disclose your deadlines
Think before you speak
Know your market information
Bring your own expert