NEGOTIATION

Six Successful Strategies for Negotiation

When doing business we don’t have a choice as to whether or not we negotiate. The only choice we have is how well we negotiate. We all go through some sort of negotiation each day. We promote products, services, thoughts: supervisors use negotiating skills to motivate employees, set budgets and timelines, employees negotiate for promotions and raises, parents negotiate with their children to clean up and spouses negotiate each time they decide how to manage their time or finances.

Here are six important strategies that may be used for negotiations in business but pertain especially to the negotiating process:

1. The negotiating process is continual, not an individual event. Good negotiating outcomes are a result of good relationships and relationships must be developed over time. Because of that, good negotiators are constantly looking for opportunities to enhance the relationship and strengthen their position. In some cases, the result of the negotiation is determined even before the individuals meet for discussion.

2. Think positive. Many negotiators underestimate themselves because they don’t perceive the power they have inside of themselves accurately. In most negotiating situations, you have more power than you think. You must believe that the other party needs what you bring to the table as much as you want the negotiation to be a success. Also, be sure that that positivity is visible during the negotiation. Be aware of the tone of your voice and non-verbal body language while interacting with the other party.

3. Prepare. Information is crucial for negotiation. Research the history, past problems or any sensitive points of the other party. The more knowledge you have about the situation of the other party, the better position you’ll be in to negotiate. The most important part of preparation is Practice! The study of negotiation is like golf or karate. You have to practice to execute well.

4. Think about the best & worst outcome before the negotiations begin. Don’t be upset if things don’t go your way. In these instances, it’s a good time to reevaluate all positions and return to the table. In most cases, as long as you know the highest and lowest expectations of each party a middle ground can usually be reached in the overlapping areas.

5. Be articulate & build value. This is key, and it’s what separates the good negotiators from the masters. When you have a strong belief in what you’re negotiating for, you will shine. Become a master at presenting your thoughts and ideas so that others see the value.

A tip on how to do that well:

 • Be direct when presenting a situation. Be clear about what is expected. Discuss ways to apply how it can happen.

 • Don’t simply talk about what needs to happen. Discuss the consequences – how your solution will be beneficial to the other party.

6. Give & Take. When a person gives something up or concedes on part of a negotiation, always make sure to get something in return. Otherwise, you’re conditioning the other party to ask for more while reducing your position and value. Maintaining a balance will establish that both parties are equal. 

 

Central to the art and science of persuasion understands three goals for which everyone is aiming. The art and science of persuasion is often discussed as though changing people’s minds is about using the right arguments, the right tone of voice or the right negotiation tactic.

But effective influence and persuasion isn’t just about patter, body language or other techniques, it’s also about understanding people’s motivations.

In the scrabble to explain technique, it’s easy to forget that there are certain universal goals of which, at least some of the time, we are barely aware. Influence and persuasion attempts must tap into these to really gain traction.

Six Principles of Influence

Principle #1: Reciprocation

Reciprocation recognizes that people feel indebted to those who do something for them or give them a gift. For marketers, the implication is you have to go first. Give something: give information, give free samples, give a positive experience to people and they will want to give you something in return. The reciprocation principle explains why free samples can be so effective. People who receive a free, unexpected gift are more likely to listen to a product’s features, donate to a cause, or tip a waitress more money. The gifts do not have to be expensive or even material; information and favors can work.

Principle #2: Social Proof

When people are uncertain about a course of action, they tend to look to those around them to guide their decisions and actions. They especially want to know what everyone else is doing –especially their peers.

“Laugh tracks on comedy shows exist for this very reason,” Testimonials from satisfied customers show your target audience that people who are similar to them have enjoyed your product or service. They’ll be more likely to become customers themselves.

A similar principle applies to television commercials that say: “If our lines are busy, please call again.” Instead of saying “Operators are standing by.” The first response implies that other people like your offer so much that the phone lines are busy, which may persuade others to act similarly.

Principle #3: Commitment and Consistency

People do not like to back out of deals. We’re more likely to do something after we’ve agreed to it verbally or in writing. People strive for consistency in their commitments. They also prefer to follow pre-existing attitudes, values and actions. People want to be both consistent and true to their word. Getting customers or co-workers to publicly commit to something makes them more likely to follow through with an action or a purchase.

Ask your team members if they’ll support your next initiative and say why. Getting people to answer ‘yes’ makes them more powerfully committed to an action. For instance, don’t tell people: “Please call if you have to cancel.” Asking “Will you please call if you have to cancel?” gets customers to say yes, and measurably increases their response rates.

Age matters: The older we get, the more we value consistency. And that makes it harder for older people to make a change. Researcher Stephanie Brown co-authored a 2005 study titled “Evidence of a positive relationship between age and preference for consistency,” published in the Journal of Research in Personality. The study confirmed the belief that older people become “set in their ways.” The solution? Praise them for making good past decisions, based on the information they had at the time. Then find ways to stress the consistent values connecting old actions and purchases with values underlying any new actions or purchases.

Principle #4: Liking 

“People prefer to say ‘yes’ to those they know and like,”. People are also more likely to favor those who are physically attractive, similar to themselves, or who give them compliments. Even something as ‘random’ as having the same name as your prospects can increase your chances of making a sale.

“One of the things that marketers can do is honestly report on the extent to which the product or service – or the people who are providing the product or service – are similar to the audience and know the audience’s challenges, preferences and so on. So, for instance, sales people could improve their chances of making a sale by becoming more knowledgeable about their prospects’ existing preferences.

Principle #5: Authority

People respect authority. They want to follow the lead of real experts. Business titles, impressive clothing, and even driving an expensive, high-performing automobile are proven factors in lending credibility to any individual. Giving the appearance of authority actually increases the likelihood that others will comply with requests – even if their authority is illegitimate.

When people are uncertain, they look outside themselves for information to guide their decisions. Given the incredible influence of authority figures, it would be wise to incorporate testimonials from legitimate, recognized authorities to help persuade prospects to respond or make purchases.

Principle #6: Scarcity

In fundamental economic theory, scarcity relates to supply and demand. Basically, the less there is of something, the more valuable it is. The more rare and uncommon a thing, the more people want it. Familiar examples are frenzies over the latest holiday toy or urban campers waiting overnight to pounce on the latest iPhone.

“The tendency to be more sensitive to possible losses than to possible gains is one of the best-supported findings in social science.” Therefore, it may be worthwhile to switch your advertising campaign’s message from your product’s benefits to emphasizing the potential for a wasted opportunity:

- “Don’t miss this chance…”

- “Here’s what you’ll miss out on…”

In any case, if your product or service is genuinely unique, be sure to emphasize its unique qualities to increase the perception of its scarcity. 

Ref: Dr. Hanif Lakdawala's Media Planning & Buying Notes