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Selling & Negotiation Skills: Sameer Phanse
Selling & Negotiation Skills: Sameer Phanse
MMS Semester I
Sameer Phanse
Marketing & Information Technology Consultant
CIMR
2010
Session 1
Sameer Phanse
23:12 Marketing & Information Technology Consultant 1
What's ours is ours….and what's yours
is negotiable!
Soviet outlook toward Negotiations during the Cold War with the West
Student Representative
Sources of Power
Negotiations, Mediations and Arbitrations
Types of Negotiations
The Negotiator’s Dilemma
Sameer Phanse Marketing & Information Technology
23:12 Consultant 4
Term Paper
Term Paper
Individual students to research and prepare a Term Paper
Topic
The on-going Government of India (GOI) and Research in Motion
(RIM) negotiations
Provide in brief, all relevant background information about the situation at
hand
Analyze the implications for all the stakeholders involved
Develop Negotiation Strategies for
GOI and
RIM
Paper Specifications
At least 5 to 6 single side typed A4 size page lengths
Submission
Through the student representative
To reach the college office on or before 27th November 2010
Sameer Phanse Marketing & Information Technology
23:12 Consultant 5
Introduction
Introduction
Topic Importance
Life-Skill
Professional Life
Personal Life
Ubiquitous mechanism
Business
Politics
Society
A way of Conflict Management
Culmination of Sales
Evaluation Scheme
Active Class Participation/Interaction – 10%
Case Study/Term Paper/Project/Quiz/Presentation - 30%
End Semester Examination - 60%
Student Representative to report to me for all future co-ordination
Survival
New Job Negotiations Skills
Thrive
Skills
(Within Organization) (External)
e.g.Sales
Career Negotiations
Negotiations
Job/Entrepreneurship
Peers
Work
Expectations
Resources
Senior
Management
Subordinates
Boss 2 External
Communities
MANAGEMENT
TRAINEE
Boss’s
Peers Customers
Internal Communities
Boss 1 General
Expectations
Sameer Phanse Marketing & Information Technology
23:12 Consultant 11
Negotiations Criticality
Why the increasing stress on Negotiations?
Escalating Multidimensionality of Deals
More Sophisticated Buying Fraternity
Relationship
Accommodation Collaboration
Self-interest
Avoidance Competition
NO MINIMAL YES
MUTUAL TRUST?
WILL TO YES
NO GIVE
Negotiation AND TAKE?
Negotiation NO Negotiation
Negotiation
Sameer Phanse
23:12 Marketing & IT Consultant 17
Negotiation – A definition
The greatest misunderstanding about the
negotiation process is that it is adversarial in nature.
In actuality, it is not designed for those with a trial
and debate mentality. It is a problem solving process
in which each party may look across the table and
regard its counterparts as [potential] advocates.
Colosi
When you are in a situation that could cause you severe financial or personal risk
When the other party asks for something you cannot sustain because it’s illegal
Resources
Authority
Power
Influence
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23:12 Marketing & Information Technology Consultant 25
Sources of Power
Sources of power wield great negotiation potential
within organisations
Typical Features of Managerial Power hubs
Holding formal authority
Controlling scarce assets
Possessing information
Negotiation: Arbitration:
Voluntary, Non-voluntary,
Participants control Interested parties
the process & have the least control
outcome
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23:12 Consultant 27
Types of Negotiations
Negotiation Types (All in the Mind!)
Based on
How the Parties Perceive the Value of the subject of the
Negotiation
One-dimensional (or few parameters) or Limited definition
Multi-dimensional interpretation or Expansive definition
The basic attitude of the involved parties
Self-Interest
Relationship Orientation
Number of
Parties Involved
Issues in Focus
Phases of Interactions
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23:12 Marketing & IT Consultant 28
Types of Negotiations
Types
Based on Value perception and Party attitudes
Distributive Negotiations
Integrative Negotiations
Based on number of Parties, issues and Phases
Range from One-on-one, single Issue, single sitting to Multi-
party, multi-issue, multi-phase
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23:12 Marketing & IT Consultant 29
Types of Negotiations
Distributive Negotiation
Here the Perception of the Value is
One-dimensional (or few parameters)
The basic attitude of the involved parties is
Self-Interest
A Negotiation characterized by competition over the
allocation of a fixed amount of value
The aim of the parties is to gain as much as possible at the
Example
A Manufacturer – Vendor transaction in which the only
value-proposition is the price of the supplied material
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23:12 Marketing & IT Consultant 30
Types of Negotiations
Integrative Negotiation
Multi-dimensional interpretation of the value in question
Here the Perception of the Value is spelled out in a
Multi-dimensional manner or an unrestrained way
Efforts are made by parties to re-interpret the value proposition so as to augment its
worth and utility to all involved parties
The basic attitude of the involved parties is
Relationship or Alliance oriented
A Negotiation in which the parties collaborate to optimize gains by integrating
their interests into an agreement
Sufficient and transparent information sharing
negotiation form
Multi-party, multi-issue, multi-phase
Professional and Commercial negotiations will usually fall in
this typology
In Multi-party negotiations,
The challenges are to
Anticipate,
Identify and
Leverage the natural and situational coalitions that develop
It is imperative to
Identify the pivotal decision makers and power centers and
Initiate a rapport building dialogue with these important entities
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23:12 Marketing & IT Consultant 32
Types of Negotiations
The Multiple Sittings
Need a
Patient,
Professional and
Focused approach
The flip side is that the early phases can be capitalized to develop
A working relationship and
Foster mutual trust
The Multitude of Issues must be objectively
Examined,
Prioritized, and
Consciously manipulated on the negotiation chess-board to control the
parties and the course of the negotiations
Game theory based Software Simulations are available to guide
decision makers in complex situations. However decision makers
are loathe to suspend their own judgments for machine based
suggestions
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23:12 Marketing & IT Consultant 33
Types of Negotiations
Negotiation Reality
In real life, few commercial negotiations are strictly
distributive or integrative
Most are a mix of both, containing opportunities for
because of
The realization of the benefits of long-haul business
alliances
Emergence of Joint Ventures
Successful business enhancing mechanisms such as
outsourcing
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23:12 Marketing & IT Consultant 34
Types of Negotiations
“You have to believe that it’s in your interest to
look for ways to benefit your negotiating
counterpart. Your goal is not to hurt them, but to
help them at a little cost to yourself-and have
them help you at a little cost to them. The more
creative you are at coming up with things that are
good for both of you, the happier both of you will
be.” Michael Gordon, Negotiation
Expert, (1999)
Sameer Phanse
23:12 Marketing & Information Technology Consultant 35
The Negotiator’s Dilemma
Opp
nt
Self Opponent
one
Self Self
or
Opp
Win
Win // Lose
Lose Lose
Lose // Win
Win Sameer Phanse Win
Win // Win
Win
23:12 Marketing & IT Consultant 36
The “Skills” in Negotiation Skills
The Logical order of Learning
Knowledge
Skills
Techniques
Negotiation is a vast sea where learning doesn’t end even for the veterans
This Course will help you to gather basic information about Negotiation and
some of the skills which go with it
Reflection on the learning and application in actual life are critical to quickly
internalize the teachings
Its more important to understand the “Why” of Negotiations (or any subject for
that matter) than just the “How to”
Just learning the gimmicks and tricks of the trade whether Selling or negotiation wont
take you too far
If you understand the concepts (Why?), you can apply them successfully to almost any
situation
What worked for someone in a certain situation may not necessarily work for you
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End of Session 1
Thank You!