Negotiations are a crucial part of business strategy. To master the art of negotiation, you must know the different styles or approaches.
Currently, the negotiations focus on a win-win agreement that benefits all. Understanding the different approaches or negotiation strategies. Here is a list of 5 most popular negotiation tactics –
- Highballing or Lowballing – It is the most common tactic. Consider a scenario where you are the supplier, and your counterpart is the buyer. You assume a highballing tactic where you raise the product’s price very high while the buyer opens the offer with a meagre price. You will arrive at a mutually agreeable price.
You must research the market to understand the ideal price for your product. Find the best alternatives to an agreement and get a fair deal from the negotiation.
- Snow Job – It is a tactic often used to confuse or intimidate the party. When the other party reveals a lot of information and overwhelms you with facts and figures, the other party dumps a lot of unnecessary information, making it difficult for you to determine the critical facts or relevant information.
- You must be firm in your stance to avoid or win the negotiation. You must be specific and stick to the facts. Pay close attention to the other party’s words and filter out unnecessary information overload.
- Concession – In this situation, the other party asks for a small favour or concession right before the deal is closed. The party will try to wear you down with negotiation and squeeze out a few concessions.
To avoid such a situation, be clear about the agenda of the meeting from the start. Be specific about what issue you want to discuss and ask your counterpart to do the same. Continuously ask the party if they have anything to add or ask. Lastly, turn down any such requests for concessions if you have given them the opportunity to voice their demands.
- Good cop, bad cop – One member from the other party is understanding and lenient, while another member is hard to impress. It is known as the good cop, bad cop tactic. Here, you must realize that they are working together to turn the bargain in their favour.
You must remain firm on your terms. Do a detailed research on the value of your offering. Try to carefully understand if the other party is imposing unfair terms of trade. Do not give in to the pressure.
- Cherry picking – In this tactic, the other party will unbundle the bargain and assume other terms remain the same. They can extract some extended benefits from the agreement. For example, the buyer asks you, the supplier, to send 1000 units in advance without any service charge out of the 5000 units ordered.
You must address this issue immediately and clearly communicate the terms of the bargain. You must establish the terms of the agreement from the start. You should work out multiple price bundles so that the other party can choose the most convenient package. It will benefit both the parties and avoid confusion between the parties.
A proficient sales manager is skilled in various negotiation styles. Hence, it is essential to understand the various negotiation techniques and management skills that will make you a successful manager in the long term.
How does MITSDE help you become a successful marketing and sales manager?
MIT School of Distance Education (MITSDE) is an institute that understands the current skills gap in the market. It strives hard to bridge the gaps. MITSDE offers AICTE-recognized and approved distance learning business management courses.
The Post Graduate Diploma in Management courses impart relevant skills and a core understanding of the business world.
For this purpose, MITSDE brings to you a PG Diploma in Marketing Management (PGDM Marketing Management). The online PGDM Marketing course is a 21-month course and covers concepts like –
- Basics of marketing
- Market research & testing
- Project Management
- Strategic Marketing
- Product and Brand Management
- Digital Marketing
- Business Communication
- Finance management
It also gives you hands-on training on the latest marketing tools. Equipped with these tools and techniques, the marketing course will take you a long way successful negotiator and marketing expert.
MITSDE also offers a dedicated team of student success managers to assist learners’ academic journey.
The placement cell offers resume-building and career-building sessions to help secure reward learners.
Lastly, initiatives like MITSDE Labs and Harbour offer a perfect blend of practical hands-on training and psychological counselling.
The bottom line is that MITSDE offers a 360-degree learning approach that guarantees a rewarding career.