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Topic : Conducting Effective Negotiations
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Industry : Human Resources (HR) ConsultingFunctional Area : Communication(Sales & Marketing)
Activity:  230 views;  last activity : 12 10 2010 10:43:51 +0000

Negotiation : We all negotiate in our professional and personal lives. We negotiate at work, during sales and when dealing with others. Its easy to negotiate some and sometimes its very difficult.

What might have lead to the failure of negotiation ??? 

Why is it sometime so difficult to negotiate ???

Barriers to successful negotiation ??

 

 
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1 2 3 4 5
1 Failing to understand other person's needs
2 Negotiation is an art to be performed
3 I win you lose
4 Lack of confidance
5 Past experiences of the other person
6 Win SOME - Lose SOME
7 Urgency
8 So what if i have attitude
9 successful negotiation means
10 Negotiate win/win agreements with clients
11 Need
12 Blaming The Other Person
13 Emotions
14 bargaining power
15 Degree of like or dislike for the individual
16 WIN WIN
17 Win - Win

Failing to understand other person's needs

idea posted by Shashikant Rajak Senior Consultant, Technozone consultancy ltd
One of the barriers to negotiation is failing to understand the needs of the other person, If we are unable to determine what is the persons need or wants, we won't be able to negotiate succesfully as we are trying to find out a solution acceptable to both the parties. Later when we understand the other person needs, you ma be suprised sometimes finding out that there was no disagreement at all.
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negotiation n barganing a thin line former is a win win approach n barganing is a win lose approach.negotiation is not a competitive sport.one should definetly negotiate and its a need 2 if u see no body has everything of his interest he must negotiate wid other body to full fill his interest.negotiation is an ongoing relationship so take gud care of other side also other wise next time dere will be no negotiation.

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by Ramdas Pawar, Sales/BD Manager, Flex  | 04 14 2009 09:07:04 +0000

I agree that without understanding the needs and doubts of the other person one cannot become a good negotiator.Because only when you understand what other person is trying to say you can present your view in relation to that and you will be in a better position to convince him.

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Negotiation is so easy as tough , vise versa. It all depends upon the level of understanding. Every person defers only upon the level of understanding. I have seen people who are illeterate but they can easily negotiate, this because only levelling of understanding. As such One shall improve thier understanding levels. then it will be easy to negotiation.

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Negotiation is an art to be performed

idea posted by Chacko Jacob Sales/BD Manager, WIPRO Limited

I believe that negotiation is successful only if understand the customer well enough. When I say the customer, it is the organization, as well as the individual who represents the organization and also the culture of the organization. How could we neglect the factors that influence the decision making? Usually we all focus on the person itself. What about the others factors that influence him? Aren't they important?

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by Ramdas Pawar, Sales/BD Manager, Flex  | 04 10 2009 07:34:28 +0000

Mr.Jacob i completely agree with you.While negotiating with someone it is very important that we understand the needs and the doubts of the person and also try to understand the factors which are influencing him to negotiate with us.In this way we will be able to understand his view point and accordingly we'll be able to express our view in a convincing manner.

What do you guys say?

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I fully Agree; Negotiation is an art to be performed but want to add  few   more things; performance also depends on your understanding of the technology ( Product) you are negotiating; technological updates you have about the product and fundamental knowledge of the cost calculation of the product ( weather it is tangible or intangible) with full awareness of your need and suppliers'.....

 

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by jairaj shyam prasad, Production Manager, BOSCH Ltd  | 03 14 2009 11:32:11 +0000

 i fully agree with this.Negotiation itself is an art of communication.It depends how one handles it.person who starts negotiation should first allow his party to speak and give as much time as possible to set in the common wavelength between them which becomes crucial in getting expected results.Negotiation dosen't mean Win-win, Win-lose situation, it is an understanding of topic which has to be dealt very carefully.Most of the times a negotiator should become a pshychiatrist!!

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I win you lose

idea posted by Radha Sundaram Sales/BD Manager, Bharti Airtel
Negotiation will fail if you looking negotiation as a contest between the two and trying to win the contest. Negotiation is not a contest and there is no loser only winner in negotiation.

So try to find out a solution to the conflict where both the parties are winner. When both are wins, no question for lose :)

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by Prarthana , Business Analyst  | 12 12 2008 05:54:10 +0000

Simply amazing!!!!

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Lack of confidance

idea posted by BEENA AGARWAL Head/VP/GM-Corporate Planning/Strategy, ANADI HI TECH AGRO PVT LTD

A foolproof plan with proper genuine product and market will never face any problem in negitiation.If both parties are confident and reliable with their product and need as well there is no question of failure.

Its also the way one approaches about his demand what ever it may be,selling or buying,it should be clear with full confidence that there is no loophole in my planning ,this approach will never fail any negotiation.

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Past experiences of the other person

idea posted by Bithika Bhatnagar Trivedi Project Manager, None

If the person you are negotiating with has a had a good experience and you are trying to stuck a deal on the same lines, he will generally give into your terms. As he knows that it can be trusted. However it can happen otherwise if the past situation have left a bad mark then this person will not agree to your ways of things.

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Win SOME - Lose SOME

idea posted by Makrand Bhave Marketing & MICE, WIZCRAFT International

When you are at the crucial level of closing a sale, the dreaded NEGOTIATION process begins. Mentally you got to be prepared for giving some leeway to the buyer but taking some rope from him to keep your bottomline intact!

It is always a process where both win, buyer because he got the price and the product that he wanted, You because you got the sale, made your presence felt in your company but both had to let go of some precious thoughts!

Negotiation begins only when the buyer and the seller do not agree on a PRICE POINT as competition is lurking right behind you.

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Urgency

idea posted by Gopalan V Subramanian Head/VP/GM-Marketing, easyinsuranceindia.com

Because of the urgency in closing the sales, sales people are in the habit of making the presentation with out seeing the intrest and need of the other end. Generally, most negotations are becoming very tough, because of wrong and urgent approch.

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So what if i have attitude

idea posted by Sasi Dash Art Director/Sr Art Director, U TV

"So what if i have attitude" well attitude always plays a major role in whatever one does. If its hostile (negative attitude) the situation can get worsen and if its cooperation and friendly (postitive attitude) both parties can come to mutual an understanding.

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successful negotiation means

idea posted by SRINIVASAN P Freelancer, Freelancer

Negotiations normally fail due to various reasons:

1) Each party coming to table with a view to win (somehow)

2) Allowing emotions to come into play

3) Not willing to see others' point of view

4) Failure to take into account the changed circumstances

5) Ideological differences

For a successful negotiation:

1) Both the sides should aspire for win-win situations (i.e., give something, take something)

2) Talk without hidden agenda

3) Be clear about what one wants to achieve through negotiations

4) Be transparent

5) Have a long-term view of the possible benefits of a successful negotiation

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Negotiate win/win agreements with clients

idea posted by Raju Ramalingam Business Analyst, Rhytha Web Solutions

1. Understand why the client is buying your services

2. Look for opportunities for both sides to win

3. Plan your approach to negotiations

4. Standard business negotiation terms

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idea posted by Darpan Sinha Tech Architect, Royal Bank of Scotland

I feel its the NEED of the stuff which is the top most baireer in negotioation. If you dont have the need then you can negotiate freely as you dont have the fear of loosing the stuff or missing the oppourtinuty and one in this kind of situation can negotiate well, and its exactly opposite when one is in need.

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Blaming The Other Person

idea posted by Amit Madhav Senior Consultant, GKC
I think negotiation fails when two parties starts blaming each other. When one starts blaming other,the other person in turn will blame him and this will create an angry situation between the both with later on will be difficult to solve as each other don't cooperate any more...
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Emotions

idea posted by Dayanand Deshpande Senior Consultant, Ernst & Young
Sometimes during negotiation our emotions takes control of the situation, well its normal to become emotional during negotiation but getting carried away by it may lead to unsuccessful negotiation.

We were are emotional our behaviour changes...So its important to maintain control.

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EMOTIONS :( EMOTIONS :) EMOTIONS

When we were are emotional our behaviour changes...So its important to maintain control.

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bargaining power

idea posted by amritraj Senior Sales Executive, Infotech Enterprises
"Negotiation is difficult"... yes indeed it is. why? being a front end sales guy, i face it day in and day out. And the reason is purely on the bargaining power of either the supplier or the purchaser. In today's highly clustered market pricing pressures are heavy on both the supplier as well as the purchaser. The supplier has his rates which he needs to get( even if following a volume based pricing method), the purchaser is governed by ever stringent budgets.. to meet these two parameters aand reach an equivocal solution is no less difficult then asking batman to give up his batomobile
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Degree of like or dislike for the individual

idea posted by Rakesh Mohapatra Sales/BD Manager, Bharti Airtel

When one person like the other person, he will try his best to solve the conflict and come up with an successful negotiation, but if the person dislikes, the negotiation may get off the track and focus is only on the personalities. If this happens negotiation is almost impossible. Its better to stop focusing on personalities  and focus on the issues rather.

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WIN WIN

idea posted by R. Rajagopalan Sr.vice president, CUMI

it is an art. I suggest you go thro " DISC" profile of a person. ( DISC is a test which determone the behavior of people and if you do this, you can reasonably judge in half an hour where is th eother  perosn will fit in) and you should change your attitude/ behaviour to suit other person. Itis not diffcult. Please think intheir shoes or appear to be. many decisions are taken on perception. Add an extra element of service in any negotiation, which will differenciate from your competitor. Get what the user require than purchase guy wants. You must be able to tell minimum 5 points on your products( why should otehr buy) than the price, then itis easy. If teh starting point is price, then it is difficult. altimately, I beleive in 30 years, rleationship is a differenciation. at th end of the day, both of you should feel, WIN win situation.......it is not easy but definitely NOT difficult.

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Win - Win

idea posted by Prarthana Business Analyst
Negotiation is usually seen by both the parties as a WIn - WIN situation. Anything not in this boundary cannot be negotiated is the mindset. SO when each of the party tries to achieve a win - win situation, negotiation becomes difficult.
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