MKTG 4774 Chapter 19

Negotiation & the Dangers of Stereotypes

The process of verbal and non-verbal exchanges between two or more parties with the goal of reaching a mutually satisfactory agreement.

Negotiations are conducted between people, not national stereotypes.

Cultural factors often make huge differences.

Situational Characteristics Influencing Cross-Border Negotiations

Context of the negotiation.

Physical arrangements.

Time limits.

Status differences.

Stages of Negotiation in International Marketing

Stages of Negotiation in International Marketing

Preparation

Relationship building

Information exchange

Persuasion

Making concessions and reaching agreement

 Preparation 

Negotiators focus on getting information, planning their strategies, and learning as much as possible about the other party or parties.

Relationship Building

Parties meet to discuss their mutual interests in the negotiation and get to know each other.

This stage involves both formal and informal meetings at mutually agreeable and neutral locations.

Information Exchange

Each party states an initial position as a formal presentation followed by discussions of the issues involved.

The other party has the opportunity to ask questions and clarify important points.

Persuasion

Each party is concerned with changing the beliefs, preference structures, attitudes, and interests of the other parties.

Attempts are made to work toward a mutually satisfactory agreement that can work in both the short and long-run.

Making concessions and reaching agreement

One party is willing to concede something, with the expectation that the other party will reciprocate.

Saving Face

Loss of face can occur when either party gets itself boxed into a corner.

Avoid definite statements.