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Summary of Reading I Negotiations Finding Common Ground

Negotiations can be classified under qualitative and quantitative. The quantitative aspect covers price, volumes delivery etc. Whereas as far as qualitative aspects are considered, the process can be termed as mainly a positive experience or a negative one. Certain guidelines have been mentioned for the negotiation process they are as follows: a) Prepare for negotiations by gathering facts and info. b) Strive to resolve conflicts. c) Ask a lot of questions to determine customer demands. Negotiations are different from objections. Negotiations should not be confused with objections because objections are unresolvable in most cases. Basing the discussion to clear objections is a waste of time and resources. The salesman must identify the true objections and negotiable subjects. There is a substantial human aspect involved in the negotiation process. They include being enthusiastic during the process. Using good human relations skill. Using logic not emotions. Being aware of the body language. Being persuasive and not manipulative and finally maintaining ones integrity. There are certain challenges one faces in the negotiation process these include legal issues, strong egos, fear of losing the account, hidden agendas and cultural and language barriers. However with planning they can be mostly be overcome. There are two types of negotiations simple and complex. Complex situations require more planning and the approach is more strategic. More knowledge of the customer is required for success in this case. There are certain negotiation tools which one can apply: a) Walking Away Shows the final point in the discussion and is used in setting up of limits. b) Persuasion Used to explain the same logic again to the customer. c) Silence When one party is taking an extreme stand, silence is a courteous way of showing the angst. d) Time Constraints- Used to close the deal or put pressure on one side. e) Contracts Sometimes to help move the process contracts can be signed or some deal be made to reassure the customer. f) Delay or Inactivity A more manipulative measure, it is used to gain attention, garner power in a negotiation.

g) Authority to negotiate Granting powers can help solve conflicts at certain junctures. h) You go first to gauge the paying power of the customer, one may ask him/her to bid for the product. If the price is right no further negotiations are needed. i) Ultimatum - Giving ultimatums can prove beneficial if no headways are coming up in the negotiation. They put the customers in a corner and force them to take a decision. j) Throw Ins Sometimes something extra proposed can make the deal more suitable and negotiation becomes easier. So an extra offering after careful planning can prove beneficial for either party. Finally having employed the tools and reached a conclusion, it is very important to fix the deal and its details. Documentation, contracts are helpful to include the finer details of the negotiations outcomes. In future if any party does not honor the deal, the other party can use this document for legal procedures.

Summary of Reading II Conflict Resolution Strategies

Conflicts are commonly seen arising in the case of channel members such as wholesalers, distributors, retailers and the company itself. These conflicts can range from various issues involving prices, volume etc. It has been seen that conflicts if unsolved can result in heavy losses for either parties involved. Some of the steps in resolving conflicts are as follows: a) b) c) d) e) Evaluate conflict resolution styles for both the parties. Give positive responses to avoid a negative discussion. Review the value of the channel relationship. Keep the ego in check. Keep the consequences of the discussion in mind.

Negotiations are a part of conflict resolution. Unlike to the basic perception underlying it, a successful negotiation process is procedure driven in reality. Following are the steps in negotiation process. a) b) c) d) e) f) g) Identify & Define the problem Getting the facts right Generating Solutions Evaluating solutions Selecting the right solutions Implementing those solutions Evaluating and monitoring the results.