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1、PrefaceChapter One: Preparation for N.Chapter Two: Structure and Sequence of N.Chapter Three: Negotiation Tactics / Strategy,Preface,Preface: Introductory Knowledge,I. buyer/seller bargaining on the pricemobility, different price, mutually satisfying agreement, own purpose, concessiona. Two elements
2、 i. cooperation: mutual interest ii. conflict: interest opposed arguedb. Two direction i. hold on or lose all ii. give in lower reward,Preface: Introductory Knowledg,c. adjust themselves by exchanging ideas on common interest; neither wholly satisfied; for both more beneficial.d. integral part of bu
3、siness activity. N. do not isolate in the course of selling & providing service. N. a tool to get profit.e. time scale: 1) N.ors preparation for N. first contact. 2) reach agreement common interest operated during 3rd period may cause further N. 3) extended period: both sides continue co.,c. adjust
4、themselves, agreement disciplines both sides, if cooperate, effect of bargain limited, in the long run, unfaircorrect.f. measure of success: notachieve max. profit butsuccessful operation of trade.“Good begun is half done.” Preparation / vital for the highest level of success., agreement disciplines
5、 both,II. The definition of N. Gerard I. Nierenberg, author of the first book on the formalized process of N, The Art of N.ing, stated, “ Whenever people exchange ideas with the intention of changing relationships, whenever they confer for agreement, then they are N.ing.” In modern sensein book The
6、Roots of Sound Rational Thinking “the ability to deal with business affairs, to arrange by discussion the settlement of terms, to reach agreements through treaties and compromise, and to travel through challenging territory. ” -suggests a purposeful effort to resolve problems through talking and int
7、ellectual control.,II. The definition of N.,Including consultation, bargaining, mediation（调解）, arbitration（仲裁）, sometimes, litigation(起诉).Different forms:1) Competitive style: To try to gain all there is to gain2) Accommodative (通融) style: To be willing to yield all there is to yield3) Avoidance sty
8、le: To try to stay out of N.4) Compromising style: To try to split the difference or find an intermediate point according to some principle 5) Collaborative style: To try to find the Max. gain for both parties-by exploration of the interest of both sides.6) Vengeful style: to try to harm the other7)
9、 Self-inflicting (自损) style: to harm oneself8) Vengeful and self-inflicting style:,Including consultation, barga,III. Principle of Trust in N.1. Trust important. Divided into three types:1) Deterrence(威慑)-based trust: think to be punished do or do not do sth. Based on consistency with past, which ex
10、tends to: * Calculus(预计)-based trust: expect to benefit if do or do not do sth.2) Knowledge-based trust: expect the other people to act in a certain way based on the knowledge of him. The expectation is based on the understanding of the other peoples action, thoughts & intents.3) Identification(识别)-
11、based trust: share the interests, values & concerns of the other people very well-internal(深层次).,III. Principle of Trust in N.,2. Trust Building in N. Winning the trust the other party-key to successful N. All N. involves risk. Sometimes when N.ors say they N.te in faith, do not really mean it or ar
12、e misunderstood. Talks collapse since each side lacks it in the others competence and good intentions. A. Facing strangers or under pressure, etc make it difficult to form trust. Peter B. Stark & Jane Flaherty listed fifteen things in book The Only N.ing Guide Youll Ever Need to build trust.1) Demon
13、strate your competence Trust can be built by convincing opponent-you have both expertise and the will to support your end/part of the N. E.g. buying a computer, you have a higher level of trust in a salesman giving knowledgeable answers to your questions.,2. Trust Building in N.,2) Make sure the non
14、verbal signals you are sending match the words you are saying Opponent can tell more about your total message by reading and understanding the nonverbal you are sending than by just listening to your words.3) Maintain a professional appearance A well-groomed professional appearance is important. Fur
15、ther enhance your appearance with good posture, a careful choice of words, a clear confident voice and eye contact.4) Communicate your good intentions People tend to give greater leeway (room) to an individual if they know his intentions are good. Emphasize that opponents needs and goals are importa
16、nt to you and that you will do whatever it takes to create a lifelong win-win relationship.,2) Make sure the nonverbal sig,5) Do what you say you are going to do Keep your promises and honor your commitments. Your reliability may be the most important factor in opponents decision to N.te with you ag
17、ain at a later date.6) Go beyond the conventional relationship The example is that when a N.or needed more time to study a contract that was unfamiliar to him, opponent not only allowed him more time, but also offered him samples of the contract to study. By doing so, the counterpart went well beyon
18、d the conventional relationship. Thus the trust between them built up quickly.7) Listen Listen openly to opponent s ideas Encourage opponent to exchange ideas. Get complete information before expressing your opinion.,5) Do what you say you are goi,8) Over-communicate When N.s get tough, the natural
19、tendency is to communicate less. Resist that tendency.9) Discuss the indiscussibles There are issues difficult to address. Salary is one example. But discussing these types of issues helps build trust and eliminate future problems.10) Provide accurate information, without an hidden agenda Each oppon
20、ent has to have enough information to make good decisions that meet both N.ors goals. Give opponent information on both sides of the issue, not just the side you prefer. Admit it when you do not have all the answers.,8) Over-communicate,11) Be honesteven when it costs you sth.If opponent has made a
21、mistake in adding his figures, tell him. If you have made a mistake in your calculations or decision-making, admit it.12) Be patient Patience breeds trustand better decisions.13) Uphold fairness It is your responsibility to ensure that your counterpart gets a fair outcome. If you make sure everyone
22、goes away happy, you will earn yourself a good reputation as a N.or.14) N.te for abundance, not scarcity Focus on creating a bigger pie. If your counterpart in a N wants you to lower the price not refusing, consider agree it if he buy more products or extend the length of the contract.15) Take calcu
23、lated risks One of the fastest ways to build trust in a relationship is to be willing to take calculated risks.,11) Be honesteven when it cos,B. Maximizing Joint Gain Trust hard to build, easy to destroy, difficult to regain. Believing that the other party is competent and trustworthy allows N.ors t
24、o take the risks that are necessary to achieve N.ted outcomes, and to implement agreements in ever-changing social, economic, and political environments. When profit, security, or peace depends upon the motives and actions of another party, trust becomes essential. Fortunately, by applying the princ
25、iples and strategies above, N.ors can build the trust that is necessary for a N. to yield max. joint gain.,B. Maximizing Joint Gain,# Case study An author N.ing with a literacy agent right to sell the book. Agent told him- commission higher in international deals than domestic ones. First, the highe
26、r international rate sounded arbitrary (任意的)-a sneaky(鬼祟的) way to gain money from him. But agent explain-she had to charge a higher commission for an international deal split money with the agent in the foreign country. Her net commission be lower. Though this explanation had no impact on the writer
27、s bottom line, it made the author like the agent and trust her even more.What strategies did the agent use to build trust in her relationship with the author?explained her demands, provided accurate information honest,# Case study,In 1996, the executives at Boeing Aircraft N.te with suppliers. In an
28、 effort to make the production of the 717 profitable, Boeing asked its suppliers to cut their prices by 20 to 30%. This was bold(大胆的) move, since the suppliers prices were competitive. Although not all suppliers were interested, almost everyone agreed that if the plane could not be produced profitab
29、le, everyone, including the suppliers, would lose. In return for the lower prices, Boeing promised to outsource(外购) as much work as possible to the suppliers and do more business with each of them in the future. Thus, an agreement was reached.What strategies did Boeing apply to the negotiation?N.ing
30、 for abundance, focusing on creating a bigger pie, both sides happy.,In 1996, the executives at,IV. Modules (环节) of Business N. Four modules: Enquiry and reply, offer and counter-offer, acceptance and conclusion of a contract. In practice, not every N. covers all four. Offer and acceptance is usuall
31、y discussed by lawyers concerning contract formation. To establish a contract, there must be bargain: in the form of offer of one side/an acceptance of that offer by another. Common one, buying clothes, You accept the price-deal. Do not accept counter-offer.,IV. Modules (环节) of Business N,1) Enquiry
32、 & ReplyAn executive of a company wishing to obtain goods from overseas must make sure: company can best supply goods, reputation, price, terms they offer, time for delivery, potential suppliers After that, he will give out enquiry, then suppliers make reply. N. has begun. If enquiry is made, party
33、is liable to buy. The other party can make no reply. But according to business practice, the other party should respond without delay in form of quotation, offer, bid.,1) Enquiry & Reply,A. Enquiry can be of two types: 1. General enquiry Buyer asks for general information: catalogue, price listquota
34、tion sheets, sample, illustration, photo, etc2. Specific enquiry Buyer points to the product(s) he wants: the name of the commodity, the specifications, the quantity, the unit price FOB (free on board) or CIF (cost, insurance, freight), the time of shipment, the terms of payment and may request an o
35、ffer. enquiry can be made by: post office mail, fax, e-mail, phone, courier service(信使).,A. Enquiry can be of two types,3. Quotation A indication of price without obligation. A satisfactory one includes: a. Details on prices, discounts and terms of payment. b. Clear indication of what the prices cov
36、er (e.g. freight, insurance, etc.) c. An undertaking (promise) as to the date of delivery or time of shipment.,3. Quotation,B. Guidelines for Making Enquiries Professionally 1. Before enquire about products, note: The estimated quantity youre going to order. The terms of pricing you want (CIF or FOB
37、) The destination air/sea port for CIF or C&F (cost & freight) quotations that is most convenient for your business.2. If first enquiry, you should also say sth. About how the suppliers name is obtained and some details of his own business, so it is clear he is a client who should be taken seriously
38、. There is no need for long, overpolite phrases and still less for humility.3. Enquiries should be addressed to the company instead of an individual to receive quick attention.,B. Guidelines for Making Enqui,4. The enquirer should be reasonable in the information requested and clear on details, Incl
39、uding prices, discounts, terms of payment, and the length of time required for delivery-he can expect an equally clear answer.5. Most letters of enquiry are short and simple, so that many firms have adopted the practice of sending printed enquiry forms, thereby eliminating the need for a letter.,4.
40、The enquirer should be reas,C. Guidelines for Replying Enquiries Professionally1. Make sure that quotation is correct and exact. If cant reply correctly in the short-term, need to inform the buyer that you received his message, the reason for late, exact time to reply.2. When reply, focus on what yo
41、u can do. Introduction of your company, advantage of it, also company name, established year, total capital, annual sales, contact person, phone and fax number, etc.3. Set up product catalogue list. Better with clear photos of product. Describe each kind of product with details, including: product n
42、ame, specification, model, minimum orders, key contact person, price, international standard and technical parameters, etc.,C. Guidelines for Replying Enq,4. If you want to increase sales, the reply must now fulfill the function of a salesman: It must contain information which will sustain the enqui
43、rers interest and persuade him to place an order. You can even provide additional information that is not requested by the customer but relevant.5. The secret to converting an enquiry into a real order is to make the buyer reply as soon as possible. Through a simple buyers enquiry, you can establish
44、 a communication channel promptly. The following examples may work well: I can introduce the product your competitor asked for. I can make some special samples for you if you reply. I can introduce the 1,500 kinds of products to you if you reply. If you want samples, please reply.,4. If you want to
45、increase sal,D. When not to N.te (ways of saying “no”): People say different things when they really know the answer is “no”:“Ill see what I can do. Ill let you know.Maybe. Ill find out. Ill ask. You could call head office and ask; they have more authority than I.” If demand not possible, too commer
46、cially demanding, or not reasonable for any reason, we must kill it there and then, or itll bother you. Not negotiate if there are unrealistic demands at any stage. Reason: It prevents you having to concede unnecessarily. It avoids raising false hopes-make it difficult for us to satisfy later. It st
47、amps(破坏) your personal authority and professionalism. Then you should say clearly, honestly, “No, Im afraid not.”,D. When not to N.te (ways of s,Case study I have a problem with a supplier who is the sole supplier of our organization. The supplier manufactures various items for us which are used in
48、our products. Now the supplier is insisting a price increase of about 50% without any justification. We are a government-owned organization involved in manufacturing several products for our clientswhich are other industrial concerns.How should we approach this situation given our organizations limi
49、ted annual budget?1st, examine your BATNA, your best alternative to a negotiated agreement, which can tells you what choice you can make to improve a situation. (If other suppliers can offer the same items for your product especially abroad. Or if your product can be redesigned to avoid using that m
50、aterial. If both are not OK, you can tell the supplier that the increase will harm long-term relationship. Dont hesitate to express your disappointment, even anger. If you simple accept the increase without objecting, you are inviting more the same in the future.),Case study,2) Offer & Counter-offer
