1、 Preface Chapter One:Preparation for N.Chapter Two:Structure and Sequence of N.Chapter Three:Negotiation Tactics/StrategyPreface:Introductory Knowledge I.buyer/seller bargaining on the price mobility,different price,mutually satisfying agreement,own purpose,concession a.Two elements i.cooperation:mu
2、tual interest ii.conflict:interest opposed argued b.Two direction i.hold on or lose all ii.give in lower reward c.adjust themselves by exchanging ideas on common interest;neither wholly satisfied;for both more beneficial.d.integral part of business activity.N.do not isolate in the course of selling&
3、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.agreement disciplines both sides,if cooperate,effect of bargain limited,in the long
4、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.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,“Whene
5、ver people exchange ideas with the intention of changing relationships,whenever they confer for agreement,then they are N.ing.”In modern sensein book The Roots of Sound Rational Thinking“the ability to deal with business affairs,to arrange by discussion the settlement of terms,to reach agreements th
6、rough treaties and compromise,and to travel through challenging territory.”-suggests a purposeful effort to resolve problems through talking and intellectual control.Including consultation,bargaining,mediation（调解）,arbitration（仲裁）,sometimes,litigation(起诉).Different forms:1)Competitive style:To try to
7、 gain all there is to gain 2)Accommodative(通融)style:To be willing to yield all there is to yield 3)Avoidance style: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 f
8、or both parties-by exploration of the interest of both sides.6)Vengeful style:to try to harm the other 7)Self-inflicting(自损)style:to harm oneself 8)Vengeful and self-inflicting style:III.Principle of Trust in N.1.Trust important.Divided into three types:1)Deterrence(威慑)-based trust:think to be punis
9、hed do or do not do sth.Based on consistency with past,which extends 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
10、peoples action,thoughts&intents.3)Identification(识别)-based trust:share the interests,values&concerns of the other people very well-internal(深层次).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 m
11、ean it or are 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)De
12、monstrate 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)Make sure the nonverbal signals you are sen
13、ding 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.Further enhance your appearance
14、 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 important to you and that you will do wha
15、tever it takes to create a lifelong win-win relationship.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 again at a later date.6)Go beyond the conventional relationship The ex
16、ample 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 beyond the conventional relationship.Thus the trust between them built up quic
17、kly.7)Listen Listen openly to opponent s ideas Encourage opponent to exchange ideas.Get complete information before expressing your opinion.8)Over-communicate When N.s get tough,the natural tendency is to communicate less.Resist that tendency.9)Discuss the indiscussibles There are issues difficult t
18、o 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 opponent has to have enough information to make good decisions that meet both N.ors goals.Give opponent information on bo
19、th sides of the issue,not just the side you prefer.Admit it when you do not have all the answers.11)Be honesteven when it costs you sth.If opponent has made a 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 bre
20、eds trustand better decisions.13)Uphold fairness It is your responsibility to ensure that your counterpart gets a fair outcome.If you make sure everyone 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 counte
21、rpart 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 calculated risks One of the fastest ways to build trust in a relationship is to be willing to take calculated risks.B.Maximizing Joint Gain Trust hard to buil
22、d,easy to destroy,difficult to regain.Believing that the other party is competent and trustworthy allows N.ors to 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
23、upon the motives and actions of another party,trust becomes essential.Fortunately,by applying the principles and strategies above,N.ors can build the trust that is necessary for a N.to yield max.joint gain.#Case study An author N.ing with a literacy agent right to sell the book.Agent told him-commis
24、sion higher in international deals than domestic ones.First,the higher 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 commiss
25、ion be lower.Though this explanation had no impact on the writers 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 In 1996,the executiv
26、es at Boeing Aircraft N.te with suppliers.In an 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
27、 the plane could not be produced profitable,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 Boei
28、ng apply to the negotiation?N.ing for abundance,focusing on creating a bigger pie,both sides happy.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 usually discus
29、sed 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.1)Enquiry&Reply An executive of a company wishing to obta
30、in 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 is liable to buy.The other party can make no reply.But accord
31、ing to business practice,the other party should respond without delay in form of quotation,offer,bid.A.Enquiry can be of two types:1.General enquiry Buyer asks for general information:catalogue,price listquotation sheets,sample,illustration,photo,etc 2.Specific enquiry Buyer points to the product(s)
32、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 offer.enquiry can be made by:post office mail,fax,e-mail,phone,courier service(信使).3.Quotation A indication
33、of price without obligation.A satisfactory one includes:a.Details on prices,discounts and terms of payment.b.Clear indication of what the prices cover(e.g.freight,insurance,etc.)c.An undertaking(promise)as to the date of delivery or time of shipment.B.Guidelines for Making Enquiries Professionally 1
34、.Before enquire about products,note:The estimated quantity youre going to order.The terms of pricing you want(CIF or FOB)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 na
35、me is obtained and some details of his own business,so it is clear he is a client who should be taken seriously.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.4.The enquirer s
36、hould be reasonable in the information requested and clear on details,Including 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
37、printed enquiry forms,thereby eliminating the need for a letter.C.Guidelines for Replying Enquiries Professionally 1.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.
38、2.When reply,focus on what you 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,incl
39、uding:product name,specification,model,minimum orders,key contact person,price,international standard and technical parameters,etc.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 enquirers interest and persuade
40、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 a communication channel prompt
41、ly.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.D.When not to N.te(ways of saying“no”):People say differ
42、ent 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 commercially demanding,or not reasonable for any reason,we must kill it there and then,
43、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 stamps(破坏)your personal authority and professionalism.Then you should say clearly,honestly,
44、“No,Im afraid not.”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 our products.Now the supplier is insisting a price increase of about 50%without any justification.We are a government-owned org
45、anization involved in manufacturing several products for our clientswhich are other industrial concerns.How should we approach this situation given our organizations limited annual budget?1st,examine your BATNA,your best alternative to a negotiated agreement,which can tells you what choice you can m
46、ake 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 material.If both are not OK,you can tell the supplier that the increase will harm long-term relationship.Dont hesitate to express your d
47、isappointment,even anger.If you simple accept the increase without objecting,you are inviting more the same in the future.)2)Offer&Counter-offer A.If there is no offer in the first place,there is no acceptance,therefore no agreement.According to United Nations Convention on Contracts for Sales of Go
48、ods,a proposal for concluding a contract addressed to one or more specific persons constitutes an offer if it is sufficiently specific and indicates the intention of the offeror to be bound in case of acceptance an offer is an expression to enter into a contract.It must:be capable of being accepted,
49、complete,not only advertising.B.Two kinds of offer-soft and firm 1.firm offer:with clear,complete and final trade terms to specific person or persons express or imply a definite intention once be accepted,both side must follow it,cant be changed 2.soft offer:without engagement made with reservation
50、with such words as“The offer is subject to our final confirmation”or“The prices are subject to change without notice.”to avoid dispute in the future.3.A standard offer will include the following:Name of commodities,quality,quantity and specifications.Unit price and type of currency Terms of payment
