PRESENTED BY : VISHAL ANAND

INTRODUCTION 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.

DEFINITIONS OF NEGOTIATION In the words of Bill Scott , a negotiation is a form of meetingbetween 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. Winstons Advanced Dictionary, the discussions & bargaining that goes on between parties before a contract is settled or deal is agreed upon.

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

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

FACTORS AFFECTING NEGOTIATION

confidence.

PLACE: Familiarity with surrounding helps in boosting

TIME: Time should be adequate for smooth exchangeof ideas & securing agreement before it is to late .

positive, i . e, willingness to make an agreement or deal.

ATTITUDE: Attitude of both parties should be

parties involved, status difference, information & expertise.

SUBJECTIVE FACTORS: Like relation of two

NEGOTIATION PROCESSOFFERCOUNTER OFFER

AGREEMENT

COMPROMIS E

CONCESSION

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.

Loss/Loss : Take the cake away so that neither party gets it. Win/Loss : 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.

Planning Briefing Bidding

Bargaining Setting Ratifying

Reviewing

Positive Attitudes

Narrow down to few points of dispute /conflict controversy Step By step approachFind out the other parties state of mind culture background's Likes & dislikes

Hide your prove desire Dont disclose your deadlines Think before you speak

Know your market informationBring your own expert