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Copyright © 2006 AchieveGlobal , Inc.

International Negotiation, Cosmin JoldesThe Faculty of International Business and Economics,ASE Bucharest

4. 4. International Negotiation ProcessInternational Negotiation Process



1. Understanding Negotiations2. Planning Negotiations3.3. Conducting NegotiationsConducting Negotiations

SUMMARY:InternationalInternational negotiationnegotiation process: process:



1.1. Understanding NegotiationsUnderstanding Negotiations™ - Sales Negotiation

CUSTOMER COMMITMENT – Agreement to pay a price, in return for deliverables, under specified terms and conditions

SALES NEGOTIATION – Process by which differences in price, delivrables, and terms & conditions are resolved in order to gain customer commitment

SUCCESSFUL NEGOTIATION – A win-win2 agreement that satisfies the customer, the salesperson and sales organization



1.1. Understanding NegotiationsUnderstanding Negotiations™ - When to negotiate?

Customer indicates a conditional commitment Salesperson proposes price, deliverables and terms &

conditions Customers raises objections that salesperson cannot

overcome with benefits Salesperson confirms that all objections have been raised



1.1. Understanding NegotiationsUnderstanding Negotiations™ - Negotiating alternatives

Alternative When to use? Make a trade off Anytime – the best choice

for a win-win2 agreement Add an enhancement No flexibility to meet

customer need

Split the difference Unimportant difference – to expedite resolution

Make a concession Trivial difference at end

Walk away One or more parties will lose



2.2. Planning NegotiationsPlanning Negotiations™ - Analyze the situation

Identify customer motivations and objections to your initial proposal

Identify sales motivations and objections to the implied customer counterproposal

Describe a win-win2 agreement:• customer win• sales organization win• salesperson win



2.2. Planning NegotiationsPlanning Negotiations™ - Develop alternatives

Identify variables Generate alternatives Evaluate alternatives according to how well they satisfy

• Your customer• You and your organization



2.2. Planning NegotiationsPlanning Negotiations™ -Optimize the outcome

Identify customer enhancements Identify acceptable combinations of alternatives Establish a walk-away position Identify benefits to emphasize Identify assumptions to test



3.3. Conducting NegotiationsConducting Negotiations™ - Position the negotiation

Why? To establish clarity, structure and a positive atmosphere

How? Summarize the sale/negotiation to date Confirm customer objections Establish the agenda



3.3. Conducting NegotiationsConducting Negotiations™ - Explore alternatives

Why? To identify an acceptable alternative for resolving each differenceHow? Clarify / confirm the what and why of customer needs (always the first step) State the what and why of sales needs (always the second step) Test alternatives (What if…)

• General idea• Specific alternative

Invite customer suggestions Emphasize benefits (product/service, company, proposal, alternative) Make it look difficult Confirm acceptability (“If… then…”) Put the acceptable alternative aside (always the last step)



3.3. Conducting NegotiationsConducting Negotiations™ - Formulate agreement

Why? To bring closure to the negotiation

How? Make a new proposal Summarize the benefits Clarify steps for finalizing the agreement



3.3. Conducting NegotiationsConducting Negotiations™ - Handle an Impasse

Why? To progress successfully in a negotiation

How? Acknowledge the impasse Establish reasons for persevering Suggest a temporary change of pace



1.1. Understanding NegotiationsUnderstanding Negotiations2.2. Planning NegotiationsPlanning Negotiations3.3. Conducting NegotiationsConducting Negotiations

SUMMARY:InternationalInternational negotiationnegotiation process: process:



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