Exam 3 Selling and Negotiation Rockman Chapter 3

It is important for a plan to be ______ rather than exact.

flexible

______ is a question about whether information that could matter does matter.

Relevance

Which of the following components of a negotiation plan involves understanding what you want, as well as what the others will want?

Interests

Which of the following components of a negotiation plan involves identification of BATNA?

Alternatives

Which of the following components of a negotiation plan involves first considering the convincing or understanding views, for example?

Approach and tactics

*Determine Potential tactics for any situation-both what you can use and what can be used on you
*Assess likelihood of effectiveness by evaluating what assets you have at your disposal to counter the tactic
*Think how tactics can be resisted

Anticipating Negotiating Tactics

*Requires creativity and critical thinking
*Creatively add or package issues
*Takes time and effort (including a cost/benefit assessment)

Planning for Value Creation

*Know what interests are to be satisfied through negotiation
*Anticipate others interests and how to meet them
*Make a plan focused FIRST on underlying interests, before jumping to positions

Interests

Issues are building blocks of agreements
Brainstorm before negotiation
Make a preference table
Create a system to compare issues; general guidelines:
-good enough is the right balance of simplicity and accuracy
-not precise enough is easy to use but leads to bad trades
-too complex can lead to precise trades but will be very hard to use in real time

Issues and Creating a Preference Table

Logrolling: trading the issues that are less important to one party against issues that are more important to the other party
Knowing more (or less) important issues for both parties is critical for finding the best outcomes

Issues and Creating a Preference Table Cont.

*Measure and anchor of performance
*Helps prevent the impact of emotions in the midst of a negotiation
*Guard against "over-specification"
-One specific goal = one specific path to that goal
- Tendency to talk through issues like a "checklist" which suffocates value creation

Goals

*Always identify your alternatives, especially your BATNA
*BATNA "Best Alternative To A Negotiated Agreement"
*BATNA is what happens is you fail to reach an agreement
*BATNA determines resistance points
* "sunk cost" bias - drives a desire for completing the negotiation based on the value of past efforts but risks leaving value on the table

Alternatives