The first document describes competitive or distributive bargaining, which involves making high initial demands and small concessions while sharing little information. The goal is to get the best outcome for your side.
The second document describes interest-based negotiation, which aims to satisfy both parties' interests by expanding the total benefits and finding solutions that meet as many needs as possible.
The third document provides tips for different stages of negotiation including making small talk to build rapport, explaining your own position and interests, and asking questions to understand the other side.
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DRI Sharing Success Seminar Negotiation Part Two
1. Competitive
• Start high/low Distributive Bargaining
• Make small/grudging
concessions
• Demand reciprocity
• Share little information
• Maintain high aspirations
• Make hypothetical offers
you can later disown
• Stress BATNA
• Make multiple offers with
same benefit to you
2. A process in which we
Interest Based seek to expand the
Negotiation pie of benefits
available to the
parties in an
attempt to satisfy as
many of their needs,
desires, preferences
and priorities as
possible (their
interests).
3. • Let’s have lunch or coffee . . .
• Small talk . . .
• How’s business?
• Me too . . . .
• I was hoping we might be
able to discuss . . . .
• Here’s what I bring to the
table . . .
• I thought it might benefit you
to have . . .
• Here’s my proposal
4.
5. • 10 minutes
total
• Ask woman
next to you for
something you
don’t believe
you are
entitled to – 5
minutes
• Switch sides – 5
minutes
• Askee – just
LISTEN; do not
respond
11. • Reassert your suggestions
– I understand Bob didn’t want to
revisit the issue but I’ve got an idea
that will be good for all of us
– You may not have heard what I said,
let me explain again
• Ask Clarifying Questions
– I may not have understood your
proposal in all its dimensions; tell me
one more time
– So that are three parts to your
proposal – 1) this; 2) that and 3) this
other thing – is that right?
• Use What Works and Merge It with your
own plan
– Numbers 1 and 2 are good; if we
include them with my points 10 and
15, we’d be able to [do what we’re
both trying to accomplish or avoid
the problem we’re worried about]
12. Anchoring
• Make the first offer
• Make it aggressive
• Set the bargaining range
• Resist being anchored
• anchors are most compelling
in conditions of uncertainty
• Know your BATNA
• Create false anchors
• Pretend you’re negotiating
for someone else
"Should You Make the First Offer?" by Adam D. Galinsky,
Northwestern University's Kellogg Graduate School of Management..
13. Framing
• Present Losses as Gains
•Strong tendency to prefer avoiding
losses over acquiring gains
• competitor’s deal would be a loss
because – mired in bureaucracy; can
afford to fail; product not as good
• Use language that emphasizes your
position & frames information in your
favor
• fewer rather than greater – greater
attention to needs; partner in place;
more dedicated, motivated, faster
fear that an aggressive first offer will annoy the other side is typically exaggerated most negotiators make first offers that are not aggressive enough a nonaggressive first offer requires small concessions or a decision to stand by the original demand one of the best predictors of negotiator satisfaction with an outcome is the number and size of the concessions extracted from an opponent by making an aggressive first offer your opponent is able to "extract" concessions from you WHY IS THIS SO?items being negotiated have both positive and negative qualities—qualities that suggest higher & lower priceshigh anchors selectively direct our attention toward an item's positive attributes; low anchors to its flaws a high list price directed real estate agents' attention to the house's positive features (such as spacious rooms or a new roof) while pushing negative features (such as a small yard or an old furnace) to the back recesses of their minds similarly, a low anchor led mechanics to focus on a car's worn belts and ailing clutch rather than its low mileage and pristine interior
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