Chapter 27 Chapter 27 The Basics of Negotiation

We face an increasingly globalized economy.Negotiation, as the focus of economic exchanges, has penetrated into every aspect of economic life.Negotiation is both a science and an art. In today's increasingly fierce market competition, negotiation technology has developed into a comprehensive modern discipline integrating sociology, linguistics, psychology, logic, behavior, communication, public relations and many other disciplines.Especially for managers of modern enterprises, if they cannot master the techniques and art of negotiation in business activities, they will not be able to succeed.

Negotiation plays a vital role in business operations, and managers are paying more and more attention to negotiation.Therefore, a comprehensive and systematic understanding of the basic connotation of negotiation will be of great help to managers. Negotiation is essentially a dialogue.In this dialogue, both parties explain their situation, state their views, and listen to each other's demands.In the constant confrontation, the two sides made concessions and compromises with each other, and finally reached an agreement.By mastering negotiation skills, you can take the initiative in the dialogue and get the results you want.

Negotiation is a social and economic activity integrating strategy, technology and artistry.According to the most general understanding, negotiation is the behavior and process in which people strive to reach a consensus through negotiation in order to coordinate the relationship between each other and meet their respective needs.Negotiations are usually between individuals.They are either for themselves or represent organized groups.Therefore, negotiation can be seen as an integral part of human behavior.Human negotiators are as old as human civilization. In essence, the direct reason for negotiation is that the parties involved in the negotiation have their own needs, or the organization they represent has certain needs, and the satisfaction of one party's needs cannot ignore the needs of the other party.Therefore, the main purpose of the negotiation between the two parties is not to just pursue their own needs as the starting point, but to conduct consultations through the exchange of views and jointly find a solution that is acceptable to both parties.

Negotiation is an important means for enterprises to carry out economic and trade activities.It has its own laws and rules, and it is the unity of science and artistry.It is related to the success or failure of the transaction and the survival and development of the enterprise. The core task of negotiation is that one party tries to persuade the other party to either understand, allow, or accept the point of view proposed by itself.The emergence of negotiation is that the two sides of the negotiation are both interconnected and conflicting or have differences in terms of views, interests and behaviors.The negotiating parties are relatively independent or equal in terms of material strength, personality, and status.It is not to say that the two sides have disagreements in terms of views and interests, which will lead to negotiations, nor does it mean that the two sides have mutual connections and conflicts in terms of views and interests, which will definitely lead to negotiations.

Negotiation is a product of the market economy.In the exchange of goods, the buyer hopes to obtain more products with less money.The seller, on the other hand, wishes to obtain more money for the same commodity.The so-called "negotiation" arises because of the needs and desires and contradictions of buyers and sellers.People's definition of negotiation generally refers to two or more organizations or individuals engaged in negotiations, in order to meet the needs of their respective economic interests, exchange views and negotiate on differences involving the vital interests of all parties, and seek to reach a consensus and reach an agreement. economic exchanges.

Negotiation is a very systematic work, which requires the negotiating parties to adopt scientific strategies based on the content of the negotiation and their own actual conditions in order to make the negotiation proceed smoothly.At the same time, it is also necessary for the negotiating parties to cooperate sincerely and negotiate with each other, so that the negotiation can have a successful conclusion. Business negotiation is highly comprehensive, involving economics, marketing, marketing, management, psychology, behavior, linguistics and other multi-disciplinary content, using multi-disciplinary basic knowledge and scientific research results.In practice, it is an applied science that emphasizes practicality and focuses on solving practical problems.Business negotiations are not only regular and principled, but also flexible and creative.

Business negotiation refers to the negotiation activities between buyers and sellers on various transaction conditions in order to realize the transaction of a certain commodity or service. There are many factors involved in business negotiations, and the needs and interests of negotiators are manifested in many aspects, but value is almost the core content of all business negotiations.This is because the expression of value in business negotiations - the price most directly reflects the interests of both sides of the negotiation.The gains and losses of the negotiating parties in other interests can more or less be converted into a certain price in many cases, and be reflected through price rises and falls.

In business negotiations, on the one hand, we must focus on price and insist on our own interests. On the other hand, we should not only limit ourselves to price, but should broaden our thinking and try to gain due benefits from other interest factors.Because, instead of arguing endlessly with the opponent on the price, it is better to make the other party make concessions unconsciously on other interest factors.This is what people engaged in business negotiations need to pay attention to. The result of business negotiation is reflected by the agreement or contract reached by both parties.The terms of the contract essentially reflect the rights and obligations of all parties, and the rigor and accuracy of the contract terms are important prerequisites for securing various interests in the negotiation.Some negotiators put in a lot of effort in business negotiations and finally got a more favorable result for themselves, and the other party had to make a lot of concessions in order to get the contract.At this time, the negotiator seems to have won the negotiation, but if he is careless when drafting the contract terms, and does not pay attention to the completeness, rigor, accuracy, reasonableness and legality of the contract terms, the result will be judged by the negotiating opponent in terms of wording or terms. In terms of expressive skills, it will lead you into a trap.This will not only lose all the benefits obtained, but also pay a heavy price for it.

In business negotiations, the two parties in the negotiation are not in a hostile relationship, but it is not without conflicts and contradictions of interests. In negotiations without any skills and principles, negotiators often fall into a situation from which they cannot extricate themselves.Either the negotiations are deadlocked, or both parties always feel that the goals of both parties have not been achieved after reaching an agreement, or there is always a feeling that one side of the negotiation seems to have lost the game. There are two important reasons that may lead to the above results.One is that at least one of the negotiating parties does not have high sincerity in the negotiation; the other is that the negotiating parties have not been able to fully grasp the principles and skills of the negotiation within the limited negotiation time to maximize the interests of both parties. Aware that the success of negotiations requires negotiators to follow certain scientific methods and steps to control the process of negotiations in addition to proficiency in the professional content of business negotiations.

Under the premise that both sides of the negotiation have long-term cooperation sincerity, the steps of negotiation should be divided into three stages: affirming value, creating value and overcoming obstacles. The negotiating parties should fully communicate their respective interests and needs, and declare the methods and advantages that can meet the needs of the other party.The key step at this stage is to find out the real needs of the other party. Therefore, the main skill is to ask the other party more questions and inquire about the actual needs of the other party;Because the more you understand the real needs of the other party, the more you can know how to meet the other party's requirements; at the same time, the other party knows where your interests lie, and only then can you meet your requirements.

By communicating with each other, the two sides often affirm their respective interests and understand the actual needs of the other party.However, the agreement reached in this way does not necessarily maximize the interests of both parties.Interests are often not effectively balanced here.Even if a balance is achieved, this agreement may not be optimal.Therefore, both parties in the negotiation need to find ways to find a better solution and find the greatest benefits for all parties involved in the negotiation.This step is to create value. In general business negotiations, few negotiators can fully create, compare and measure the best solutions from a holistic perspective.Therefore, negotiators often feel that the negotiation results are unsatisfactory, that they do not have the feeling of "winning", or that they always have a little regret.From this point of view, it is very important to seek the best solution in order to maximize the interests of both negotiating parties. Negotiation obstacles generally come from two aspects: one is the conflict of interests between the negotiating parties; the other is that the negotiators themselves have obstacles in the decision-making process.The former obstacle requires both parties to coordinate their interests in accordance with fair and reasonable objective principles; the latter requires the party with no barriers to negotiation to take the initiative to help the other party to make a smooth decision. Negotiation, as a communication activity that coordinates the relationship, is an organically connected whole.In order to fully understand and grasp negotiation activities, it is necessary to analyze the elements of negotiation in depth. Generally speaking, negotiation consists of four basic elements.This is the negotiation subject, negotiation topic, negotiation method and negotiation constraints. Negotiating subject refers to the personnel of both parties participating in the negotiating activities.In the final analysis, negotiation activities are a language and psychological warfare conducted by negotiators for their own purposes or needs.Some negotiations reached a mutually beneficial agreement in a relaxed atmosphere, while some negotiations were marathon-style procrastination in a tense and depressing state... All of these, on the one hand, are related to the negotiation topics, but on the other hand, this It is also closely related to the quality and cultivation of negotiators.Perhaps many people have experienced negotiations, but there are not many successful negotiators after all.In modern social life, in order to make the negotiation result a complete success, the negotiators should have good qualities and self-cultivation in many aspects... For example, full of self-confidence, resolute and decisive, reasonable and disciplined, shrewd and witty, open-minded and magnanimous, well versed in professionalism, Extensive knowledge, eloquence, etc., are what every good manager needs to possess. Negotiation issues refer to the issues that the two parties want to negotiate and resolve during the negotiation.This kind of question can be about standpoint, basic interests, or behavior. For an issue to become a negotiation topic, it generally needs to meet the following conditions: First, it is common to both parties, that is, this issue is of common concern to both parties and hopes to be resolved.If you do not have this point, it will not constitute a negotiation topic.The second is that it must be negotiable, that is to say, the time for negotiation must be ripe.The maturity of the negotiation time is the prerequisite for the negotiation parties to communicate.Of course, the time of maturity can also be gradually achieved through people's efforts. Negotiation style refers to the attitude or method adopted by negotiators to resolve the negotiation issues.There are many ways to negotiate, and different classifications can be made according to different standards. If the psychological tendency is used as the standard, the negotiation style can be divided into conventional style, guiding style, devious style and impulsive style. If it is based on the strategy and attitude adopted by the negotiator, there are three types of negotiation methods: soft type, tough type, and soft and hard type.Weak negotiators want to avoid conflict and are always ready to make concessions in order to reach an agreement.Tough negotiators hold firm to every condition proposed by their side, and they adopt a strategy of fighting for every inch to obtain the satisfaction of the greatest benefit.The soft and hard negotiation methods can also be regarded as the "principled negotiation method".It is to obtain an agreement based on value, to make decisions based on fair standards, and to adopt a flexible approach to seek the best solution that benefits both sides of the negotiation.Because of this, modern negotiation science believes that the principled negotiation method is an ideal and widely applicable strategy. Negotiation constraints mainly include the following aspects: Is it a negotiation between individuals or a negotiation between groups?Are there two parties or more than two parties involved in the negotiation?Are the internal opinions of a certain party's judgment organization unanimous?As a negotiating representative, how much authority does he have?Does the negotiated final agreement require ratification?Are there any questions related to the negotiating topic?Is there a time limit on the negotiation?Secret negotiations or open negotiations, etc.The above aspects affect and restrict the progress of negotiations to a greater or lesser extent. Negotiation is a very complex comprehensive system engineering.It crosses many disciplines and fields such as economics, management, technology, law, language, psychology, and public relations, and has its own characteristics. Every negotiation is carried out for a certain purpose.The necessity of negotiation is the so-called purpose.It is reflected by whether the negotiation can achieve the goals expected by both parties and whether the expected benefits can be obtained.In other words, if the goals of either party cannot be achieved through negotiation, there is no need for negotiation at all.Therefore, before negotiating, all negotiating parties must first clarify the purpose of their own negotiations and understand why the opponent is negotiating. Only in this way can it be possible to take the initiative, make full preparations, and choose appropriate negotiation techniques. To meet needs is the motivation for negotiation; both parties to the negotiation feel that their needs are met is the result of the negotiation. We can thus learn that needs and the satisfaction of needs are the common ground for negotiation.However, the needs that serve as the basis for negotiation are different for the negotiating parties. The understanding of the different needs and purposes of the two parties in the negotiation is the real understanding of the basis of the negotiation.People negotiate because of different purposes and needs, and negotiate to reach an agreement because of different purposes and needs. By negotiating the differences between the two parties to meet their respective needs, and finally reach an agreement, this principle is demonstrated by many innovative agreements. In negotiations, the most likely cause of negotiation behavior is the difference in interests between the negotiating parties, which is the reason for the two parties to negotiate and the basis for the two parties to reach an agreement. The common feature of all practical activities of people is purpose, and the practice of negotiation is naturally an activity with strong purpose. The reason why negotiations can be carried out as agreed depends on the voluntary participation of all parties involved in the negotiations.If one party forces the other party to sit at the negotiating table to negotiate, most of the results will die halfway.Only when both parties have the desire to negotiate can the negotiation proceed smoothly.Of course, the reasons for this desire are complex.Sometimes, one party to the negotiation is forced to sit at the negotiating table for some reason, and once the reasons that force them to negotiate are alleviated, they will unilaterally sabotage the negotiation.Therefore, the prerequisite for successful negotiation is the voluntariness of all parties to participate in the negotiation. Only voluntary negotiations are sincere negotiations.Volunteering is based on sincerity. There are two possibilities for insincere negotiations: one is forced to participate in negotiations for some reason; the other is trying to delay time through negotiations and eventually overwhelm the opponent. Insincere negotiation is also often used as a tactic in business negotiations.The original intention of the negotiating party is not how to negotiate, he just wants to use the fact of negotiating with you as a bargaining chip to blackmail the third party. His original intention was to negotiate with a third party.Therefore, once the third party makes some kind of concession to him, the negotiation between you and him will immediately break down.In business negotiations, it sometimes happens that the seller calls you and says, "I'd love to sell you this BMW. But my wife and kids love it. I've thought about it carefully." Now, this car is really good. So, I don’t know what to do now.” At this time, you will definitely have doubts about his sincerity in selling the car.In fact, he just wanted to bargain.So if you really want to buy this car, you might want to hear his new asking price.If his asking price is too outrageous, you might as well say to him: "I don't want to say any more, please decide for yourself!" In this way, he will naturally understand that you have seen through his tactic. Only voluntary negotiation is equal negotiation.After fierce competition between the two sides of the negotiation, although there are still differences in strength, this difference in strength cannot make one party completely overwhelm the other, nor can the other party gather strength for a large-scale counterattack in the near future.At this time, it is a wise choice for both parties to solve the problem through negotiation.In this way, if the two parties sit down voluntarily, it is possible to conduct fair negotiations under equal conditions to reach some kind of agreement, so as to avoid the situation where the fish dies and the net breaks. Only voluntary negotiations are effective negotiations.Negotiations under certain pressure have two outcomes: either they die midway, or they end up in a protracted dispute that exhausts both parties.Such negotiations often linger on details before getting to the point.Even details as small as the choice of venue can cause a negotiation to fall through.In order for all parties to make concessions on certain issues, it must be a voluntary negotiation, so that all parties can reach agreement on issues of principle as soon as possible. The suddenness and complexity of events are two characteristics that must be paid attention to and grasped in negotiations.Grasping the suddenness and complexity of events requires the flexible use of various strategies and techniques in the negotiation to make the negotiation go smoothly. Negotiation is a dynamic process, which changes in an instant.Therefore, the principle of flexibility must be mastered in the entire negotiation process, that is, the negotiation art, negotiation methods and negotiation results should all be flexible. The art of guiding the entire negotiation process must be used flexibly, and must not be copied dogmatically. Due to different negotiating objects and different negotiating topics, negotiators have to formulate different negotiating strategies. In negotiations, generally speaking, there are three different strategies to choose from—soft, tough, and compromise. This strategy is often used in negotiations between families or friends. A moderate negotiation strategy can usually reach an agreement quickly and is more efficient. However, the results obtained are often difficult to meet the requirements of both parties. Although some concessions are sometimes made, they are always based on their own interests.This strategy is used more often in negotiations between two parties whose interests are fundamentally opposed.Adopting a tough negotiation strategy can sometimes reach a certain agreement, but it takes a lot of time and energy.And it is easy to cause a sharp deterioration in the relationship between the negotiating parties, so that they often have to resort to the law. It adheres to the unity of firmness of principle and flexibility of method, and emphasizes controlling the entire negotiation process with reason rather than emotion.Therefore, adopting a compromise negotiation strategy can usually reach an ideal agreement and avoid unnecessary troubles. The methods used throughout the negotiation process must be flexible and must not be rigid.In the negotiation, sometimes the failure of the negotiation is caused by not using the method flexibly and simply adhering to the principle.Stick to the principles.The crux of the problem is that the firmness of principles cannot be opposed to the flexibility of methods.Only by using methods flexibly can we firmly implement the principles. It is also necessary to adopt a flexible attitude towards the final outcome of the negotiations.Sometimes, some kind of concession must be made, so that the original hope will inevitably be affected to a certain extent, but without concessions, an agreement cannot be finally reached.You can try to make a decision like this: I agree with your A clause, you agree with my B clause; I agree to a 5% price reduction, and you have to pay cash.In this way, losses are minimized. The process of negotiation is constituted by a series of actions of managers.This series of actions has its fixed order. This fixed order of occurrence of negotiation behavior in the negotiation process is the negotiation procedure.Understanding and being familiar with negotiation procedures is the premise and basis for properly using negotiation strategies and skills. A complete negotiation process generally follows the following procedures: negotiation preparation, negotiation opening, negotiation consultation and negotiation termination. The negotiation preparation stage is the first stage of the negotiation process.At this stage, the negotiating parties have not yet made formal contacts, and they are each making some preparations for the upcoming negotiations, so as to be prepared in the negotiations. Negotiation preparations include: looking for negotiating opponents, collecting negotiating information, building a negotiating team, and formulating a negotiation plan. Generally speaking, the more adequate the preparations for the negotiation are, the better the effect of the negotiation will be.At the same time, in the preparatory stage of the negotiation, all parties to the negotiation should conduct simple consultations on issues such as the time and place of the negotiation, so as to lay a good foundation for the next step of formal contact. The opening stage of the negotiation is a process in which the negotiating parties formally contact and talk about the non-substantive content of the negotiation.In the opening stage of the negotiation, the negotiating parties gradually show their requirements, intentions and other information to the negotiating party according to the established negotiation plan, and speculate on the strength and characteristics of the other party based on the information transmitted by the negotiating party, so as to prepare for the next bargaining .In the initial stage, the negotiating parties have just started to contact each other, and they don’t know much about each other’s strength and characteristics, so conveying information and collecting information are the main behaviors in this stage.At this stage, the negotiating parties will not contact some substantive and specific issues of the transaction.In some cases, the negotiating parties will negotiate the negotiation topics in the opening stage, that is, "what to talk about first, and what to talk about later". The negotiation and consultation stage is the negotiation stage of bargaining entered after the negotiation starts.Because in the preparation stage and the opening stage, all negotiating parties have a certain degree of understanding of the negotiating opponent, so at this stage, the negotiating parties can negotiate with the negotiating opponent on various conditions of the transaction based on the information they have obtained. consultation.The negotiation process is a process of constant conflict and contest between negotiating parties.In this process, the negotiating parties will go through bargaining, bargaining, compromise and concessions, trying to make a transition to a consensus.Therefore, the negotiation stage has high requirements for negotiation skills. The negotiation stage is a process of fully displaying and using various negotiation information. After the contest in the bargaining stage, the interests of the negotiation are getting smaller and smaller, and the negotiating parties gradually reach a consensus on the terms of the transaction project, and the negotiation process will enter the final stage.At the end of the negotiation, the contents and results of the negotiation should be confirmed and fixed in a certain legal form, so as to provide a reliable basis for the parties to deal with each other reasonably in the transaction process in the future.Therefore, the negotiating parties should sign the contract at this stage.The contract has a certain legal effect and has certain binding force on the behavior of the negotiating parties in the future transaction cooperation.The signing of the contract is a sign of the end of the negotiation process, and at the same time, it also heralds the beginning of the transaction cooperation process. The above are the four stages of the complete negotiation process.In reality, due to the role and influence of environmental conditions, interest relations and other factors, the negotiating parties may not reach a relatively consistent opinion on the various conditions of the transaction.In this case, the negotiation process will only go through three stages, and the negotiation ends at the bargaining stage.The negotiating parties did not form cooperation on the transaction project.