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Negotiation The bargaining process through which buyers and sellers resolve areas of conflict and/or arrive at agreements is called negotiation (Weitz, Castleberry and Tanner, 1998). In formal business negotiations, there are several potential areas of negotiation. Businesses usually pay a lot of attention to the four Ps of marketing, which are product, place, promotion and price. Under product category, salespeople and buyers can negotiate on quality, features, style or packaging. Another example is price; price level, discounts, allowances and payment terms. Effective negotiation is when as many interests as possible are met. There are four negotiation strategies that are: 1. Win-win strategy 2. Win-lose strategy 3. Lose-win strategy 4. Lose-lose strategy Each strategy has a different outcome. The first strategy win-win is whereby both parties are satisfied with the outcome of the negotiation. This process pursues the needs of the parties involved rather than win positions or victories. Win-lose and lose-win strategies are when one party comes out dissatisfied while the other comes out satisfied. As for lose-lose strategy, both parties end up disappointed at the end result of the negotiation (Dwyer, 1999). Among the strategies, salespeople should naturally choose win-win strategy and aim to achieve an outcome that is favourable to both themselves and the buyers. When I was negotiating with my house agent, we were both looking towards the win-win strategy where my housemates and I, as well as her and the house owner were happy with the end results. There are two phases in negotiation, preparation and bargaining. However, when approaching a negotiation, salespeople need to establish the five-step approach to negotiation to ensure successful resolution (Dwyer, 1999), which are: 1. Plan 2. Discuss 3. Propose 4. Negotiate the issue 5. Check These five steps aid in achieving the desired outcome at the end of the negotiation. Firstly, preparing and planning for negotiation set out exactly what is to be communicated and aims of the parties involved to both parties and direct the negotiation in the preferred direction (Bazzett, 1999). This is considered to be one of the most important steps in the negotiation process. Salespeople should also draw together all the relevant information to the particular matter so that there is a clearer picture of the negotiation. Negotiation planning involves several other factors. Salespeople must identify the desired outcomes and place priority on them. Needs of both parties need to be identified so that there is clear direction to where the negotiation leads to. The second step is to discuss with the buyers regarding the issue at hand without actually going into negotiation mode.

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