The bargaining process through which buyers and sellers resolve areas of conflict and/or arrive at agreements is called negotiation (Weitz, Castleberry and Tanner, 1998). In formal business negotiations, there are several potential areas of negotiation. Businesses usually pay a lot of attention to the four Ps of marketing, which are product, place, promotion and price. Under product category, salespeople and buyers can negotiate on quality, features, style or packaging. Another example is price; price level, discounts, allowances and payment terms. Effective negotiation is when as many interests as possible are met. There are four negotiation strategies that are:1.Win-win strategy2.Win-lose strategy3.Lose-win strategy4.Lose-lose strategyEach strategy has a different outcome. The first strategy win-win is whereby both parties are satisfied with the outcome of the negotiation. This process pursues the needs of the parties involved rather than win positions or victories. Win-lose and lose-win strategies are when one party comes out dissatisfied while the other comes out satisfied. As for lose-lose strategy, both parties end up disappointed at the end result of the negotiation (Dwyer, 1999). Among the strategies, salespeople should naturally choose win-win strategy and aim to achieve an outcome that is favourable to both themselves and the buyers. When I was negotiating with my house agent, we were both looking towards the win-win strategy where my housemates and I, as well as her and the house owner were happy with the end results. There are two phases in negotiation, preparation and bargaining. However, when approaching a negotiation, salespeople need to establish the five-step approach to negotiation to ensure successful resolution (Dwyer, 1999), which are:1.Plan2.Discuss3.Propose4.Negotiate the issue5.CheckThese five steps aid in achieving the desired outcome at the end of the negotiation. Firstly, preparing and planning for negotiat...
