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There are two main approaches to any negotiation situation: distributive and integrative strategies. Each are useful in specific contexts, and the same negotiator may use either strategy depending upon their goal. We encounter distributive negotiation every time we buy a car or ask for a discount on an as-is item. Integrative negotiations happen on an ongoing basis, such as agreeing to let our children go to bed an hour later in exchange for mowing the lawn. Negotiation Skills Improve your negotiation skills with online classes and free tips. NextLevelPurchasing.com/negotiation Distributive Basics Distributive negotiation is appropriate in "divide the pie" situations, when there is a fixed amount of resources and whatever one party gains, the other party loses. Usually it's employed when the parties don't know each other and don't believe they will need to develop a relationship with each other for use in the future. A distributive approach to negotiation is usually what we encounter when we make a purchase. Distributive Tactics In distributive bargaining, it's best to keep information to yourself while trying to get information out of the other party. Let them make the first offer, since this lets you know what they're willing to give up. Do tell them about alternatives you have, such as competing offers for what you're selling, or interest in a product that competes with the one they're selling if you're the buyer. But be willing to make concessions in order to reach a realistic outcome. Integrative Basics An integrative bargaining situation occurs when it's possible to produce a greater outcome together than either could reach on his

Differences Between Distributive Bargaining & Integrative Bargaining

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Page 1: Differences Between Distributive Bargaining & Integrative Bargaining

There are two main approaches to any negotiation situation: distributive and integrative strategies. Each are useful in specific contexts, and the same negotiator may use either strategy depending upon their goal. We encounter distributive negotiation every time we buy a car or ask for a discount on an as-is item. Integrative negotiations happen on an ongoing basis, such as agreeing to let our children go to bed an hour later in exchange for mowing the lawn.

Negotiation SkillsImprove your negotiation skills with online classes and free tips.NextLevelPurchasing.com/negotiation

Distributive Basics

Distributive negotiation is appropriate in "divide the pie" situations, when there is a fixed amount of resources and whatever one party gains, the other party loses. Usually it's employed when the parties don't know each other and don't believe they will need to develop a relationship with each other for use in the future. A distributive approach to negotiation is usually what we encounter when we make a purchase.

Distributive Tactics

In distributive bargaining, it's best to keep information to yourself while trying to get information out of the other party. Let them make the first offer, since this lets you know what they're willing to give up. Do tell them about alternatives you have, such as competing offers for what you're selling, or interest in a product that competes with the one they're selling if you're the buyer. But be willing to make concessions in order to reach a realistic outcome.

Integrative Basics

An integrative bargaining situation occurs when it's possible to produce a greater outcome together than either could reach on his own. It's used when the parties have a relationship or want to establish one, and when cooperation benefits both parties. There are often multiple issues to address, and the negotiations can be complex and ongoing. Most of us use integrative bargaining within our families and between business partners.

Integrative Tactics

Determine your list of priorities, and make a guess about the other party's priorities as well. Share information with each other, being honest about your priorities; often something critical to one side is a minor concession to the other, and vice versa. Find and offer solutions that produce the most gain for the other party as well as for yourself. Remember that you will be in other negotiation situations with the other side in the future, and be willing to compromise when needed to build goodwill for later.

Page 2: Differences Between Distributive Bargaining & Integrative Bargaining

How to Negotiate a Movie Distribution Agreement

Getting a movie distributed is hard work for a filmmaker. After going through the long and difficult process of conceiving, filming and editing the film, take the necessary steps to ensure that it's released for viewing. Learn to negotiate a movie distribution agreement that suits your needs and gets your film to the audience.

Instructions

1.o 1

Research potential distributors. Identify the movie's genre and the audience it appeals to most. Find distributors that have released similar titles. Gather contract information.

o 2

Talk with distributors to determine if there is interest on both sides. Once you have selected the company to distribute the film, ask them to draft a generic distribution agreement for you to amend.

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o 3

Consider the territory that the agreement covers. Use one distributor for the United States, Canada and their territories, a separate company for Europe, and another one for the market in China.

o 4

Discuss whether the distribution agreement covers theatrical screenings only or include DVD distribution, as well as the length of the terms. It is to the

Page 3: Differences Between Distributive Bargaining & Integrative Bargaining

filmmakers advantage to have a short term--less than 5 years--with automatic extensions.

o 5

Include the amount of publicity and media the distribution company is obligated to perform on behalf of the film. This figure includes number of print materials and advertisements to be created to publicize the film, interviews, articles and reviews.

o 6

Agree upon the distribution fees. Filmmakers can either agree to a 50/50 split of the profits after the distributor recoups the costs of distributing and marketing the film. The alternative is to choose to accept royalties, in which a percentage of the money goes directly to the filmmaker.

Read more: How to Negotiate a Movie Distribution Agreement | eHow.com http://www.ehow.com/how_2105022_negotiate-movie-distribution-agreement.html#ixzz26JfFsneh

Read more: How to Negotiate a Movie Distribution Agreement | eHow.com http://www.ehow.com/how_2105022_negotiate-movie-distribution-agreement.html#ixzz26JevEqp0

Note: buyers today usually have more power than sellers, as they have more options to choose a product.

Distributive bargaining, also known as positional bargaining, zero-sum negotiation, competitive negotiation or negotiation win-lose, is a type or style of negotiation in which parties compete for the distribution of a fixed amount of value.

At the end of a purely distributive bargaining, which a party has won the other has lost. The final points keep adding zero as has been previously created value, unlike what happens in an integrative negotiation.

Distributive bargaining usually occurs in negotiations based on the sale of products where all that matters is price, for example in the sale of an automobile or real estate.

Page 4: Differences Between Distributive Bargaining & Integrative Bargaining

The purely distributive bargaining is usually an aggressive person, ruthless, stubborn, cunning, deceitful, self-centered and, above all, manipulative.

Before seeing the different strategies and tactics that can be used in a distributive negotiation, you need to know some important characteristic of this type or style of negotiation:

Bargaining power: benefits that you have to win a negotiation. Is basically given by the alternatives that you have a negotiation, for example, buyers today usually have more power than sellers, as they have more options to choose a product.

Perception: what one side thinks the other. In a distributive bargaining is not so much what one has, but what the other party thinks you have.

Alternatives: alternatives that you have a negotiation, for example, if you have a single client than the client that is negotiating, only have an alternative. The more options you have, will have greater bargaining power.

BATNA (best alternative to a Negotiated Agreement) is a better alternative to a negotiation (the alternative that one would take in case of not reaching an agreement). Before any negotiation, we must determine our BATNA and thus know when no agreement is better and retire (when possible agreement less favorable than our BATNA), for example, if we calculate that we can charge a client 1000, that amount will be our BATNA when negotiating with a second client, in this case, our goal is to reach an agreement where we pay 1000 or more and preferably, should offer a lower figure, we know that it is preferable to a non- agreement and seek the first customer.

Some peculiarities of BATNA is dynamic, ie constantly changing, and it is psychological, ie based on a personal perspective, which tends to be subjective (eg, a seller might consider that his product is worth much more than actually worth).

Backup point: The point that sets the lower limit of a negotiation. Is the minimum (or maximum) that you are willing to accept. The backup point adrift of BATNA though not always coincide (eg, when to buy a place, not only consider the price of other similar facility, but also its location.) Before any negotiation, we must determine our point of reservation and, thus, how much is the minimum (or maximum) that we should accept.

Zone of possible agreement: range within which you can close a deal. It is located located between the reservation points of the two parties, for example, if a buyer of a product sets its reserve price in 3000 (the most you would pay), and a seller of the product sets its reserve price in 2500 (least you could accept), the zone of possible agreement between the two sides would be located between 2500 and 3000.

Page 5: Differences Between Distributive Bargaining & Integrative Bargaining