This document discusses negotiation selling and provides definitions and types of negotiation. It defines negotiation as a planned discussion between two or more parties to resolve issues or come to an agreement. There are three main types of negotiation: distributive, which is competitive; integrative, which is more collaborative; and principled, which follows four stages including problem identification and objective evaluation. The document also outlines the negotiation process and different strategies that can be used depending on goals, resources, and other factors.

1. PRESENTATION
ON
NEGOTIATION SELLING

2. MEANING OF NEGOTIATION
Negotiation is a planned and purposeful
discussion between two or more persons, may
be between disputants who are fully willing to
look forward and try to workout a solution to
their problem. Negotiations typically take place
because the parties wish to create something
new that neither could do on their own.
Sometimes, they may think that they can use
some form of influence to get a better deal,
rather than simply taking what the other side will
voluntarily offer them.

3. DEFINITION
“It is a process by which the involved parties or
group resolve matters of dispute by holding
discussions and coming to an agreement
which can be mutually agreed by them. It
also refers to coming to closing a business
deal or bargaining on some product.”
www.legalexplanation.com

4. FEATURE OF NEGOTIATIO
• It is an interpersonal as well as inter-group process. It can occur
at a personal level, or even at a corporate level; it can be at
domestic or at international level, to resolve a problem or dispute
between them.
• The parties acknowledge that there is some conflict of interest
between them.
• They prefer so search for agreement rather than fight openly, give
in, or break off contact.
• When parties negotiate, they usually expect give and take. While
they have interlocking goals that they cannot accomplish
independently, they usually do not want or need exactly the same
thing.

5. TYPES OF NEGOTIATION
• Distributive Negotiation
• Integrative Negotiation
• Principled Negotiation

6. DISTRIBUTIVE NEGOTIATION
• It is also known as competitive negotiation. It is
designed and carried out exactly like a game, where
the outcome may be either win or lose. Due to this
specific characteristic, it is also called as ‘Zero Sum’
Negotiation.
• This type of negotiation is always shaped by strong
process of bargaining.
• Bargaining strengths are kept secret, so that
protection of one’s weakness cannot be super-powered
and it is gauged by understanding the level
of information acquired by the other party to the
negotiation.

7. INTEGRATIVE NEGOTIATION
 It is the negotiation method more soft in nature, and
strongly believe in sharing the related information
with the other party involved in the process.
Therefore it is also called ’Collaborative negotiation’.
 Mutual understanding is the foundation of this style of
negotiation and is internationally accepted, even for
mergers and acquisition.
 The entire negotiation is designed around the critical
point like quantity expected, methods preferred, time
estimated for the completion and manpower
requirement etc.

8. PRINCIPLED NEGOTIATION
• It is known as ‘interest –based negotiation’,
and is a more practical approach than the
earlier two types. It is carried out in four
stages:
1. Liberation of problem,
2. Objectivity,
3. Determining alternate solutions,
4. Objective evaluation criteria.

9. PROCESS OF NEGOTIATION
Pre-negotiation stage
Conceptualization
Setting the norms
Discussion/Talks
Agreement

10. NEGOTIATION STRATEGIES
Soft strategy
Hard strategy
Balanced strategy

11. DECIDING A SUITABLE STRATEGY
Possible factors which may influence the selection of
specific strategy:
Goals
Targeted-
Resources
Authorities
Expert’s
involvement
Counterparts
Personality
profile
Alternatives
Protocol

12. Understand your
product worth
Know the competition
Don’t talk price talk
value
Know your sales
mechanism
Understand
your buyer

13. Know the
product
Understand
your sellers
motivation
Know your
budget
Don’t show

14.  First impressions and confidence
 Group’s culture and engagement
 Useful in managing difficult situation and
maintaining defensiveness
 Gauging truthfulness
 Checking the integrity
 Measuring the effectiveness

15. CLOSING OF A SALES NEGOTIATION
• Confirm areas of agreement
• Make a record
• Decide on following action:
the decision taken upon the practical
implementation of the agreement, advances,
payment details, fine, charges etc. are
decided and signed by both the parties to the
negotiation agreement.