Unit title: Persuasion and negotiation

Unit code: 403

Group J A
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 Illustrate using specific contextual examples, the strategies that negotiators can use in
different negotiation contexts

Negotiations are done with the aim of reaching an agreement between parties involved in a given
discussion or deliberation. Effective negotiating is an art form that demands strong decision-making
abilities, the capacity to listen more than you speak, and the ability to discern whether an offer is good or
harmful.

In addition, the aspect of association in negotiation is a widely used concept in advertising. It seeks to
connect link a product to an abstract symbolic idea. This strategy seeks to appeal to peoples’ emotions
seeing emotion is a key driver to people’s decision-making process. For example, Safaricom utilizes this
strategy by associating their products to emotions/feelings. This is seen in their campaigns such as
Tunaweza, Tuinuane etc. These campaigns appeal to the feelings first which then builds an
attachment/affiliation to the product. It is why we have seen a rising trend of companies taking on certain
celebrities as brand ambassadors. This is because; some people are likely to buy a product just because a
certain celebrity they love endorses it.

For negotiation to succeed, there are strategies that must be considered to ensure that mutual agreement is
achieved. Some of the strategies are as follows:

 Collaborative Negotiation: This negotiation strategy involves cooperation and a win-win approach. It is
commonly used in situations where both parties have a long-term relationship and want to maintain a
positive working relationship. For example, a labor union negotiating with a company for better benefits
for its employees. In this context, negotiators can use strategies such as sharing information, listening
actively, and brainstorming to come up with creative solutions that benefit both parties. Before any
negotiation is done, it is prudent to create a good relationship by the other party that you will engage by
being polite and nice to them. This is because, both of you are looking to get as much as you can from the
process, without the other party feeling that they are compromised.

 Accommodative strategy. From the outset of the negotiation process, accommodating negotiation
purposefully places you at a disadvantage with the other side. You're more interested in offering an
apology or a sweetheart bargain in exchange for a more equitable one later on than you are in really
winning. This is true of a businessman who has met a prospective and lucrative client. The businessman
 will be willing to accept all the demands of the client even when they are at his cost reasoning that he will
give him business not only today but for a long period of time. This therefore places him in a
disadvantaged position and is bound to be exploited as a result with no surety of business tomorrow.
Overuse of the accommodation style detracts an organization from its focus and may be interpreted as a
sign of weakness.

 Competitive Negotiation: This strategy involves a win-lose approach where one party tries to gain an
advantage over the other. It is commonly used in bargaining situations where the goal is to get the best
deal possible. For example, a buyer negotiating with a seller for a lower price. In this context, negotiators
can use strategies such as making competitive offers, using time pressure, and using BATNA (Best
Alternative to a Negotiated Agreement) to gain leverage in the negotiation. This strategy helps to bring
satisfaction so as to avoid dreadlock between the parties. BATNA also provides a negotiator with an
alternative if the current deal being negotiated falls through. BATNA doesn’t employ strong-arm tactics
but rather about having a clear understanding of the next best course of action so as to achieve a win-win
situation. Another example is where unions try to negotiate for a pay increment for their members and use
BATNA to achieve their objectives.

 Integrative negotiation: In an integrative negotiation, both parties are looking to find a mutually beneficial
solution and are willing to work together to achieve it. In this context, negotiators can use the strategy of
"collaborative problem-solving" where they focus on identifying shared interests and finding creative
solutions that meet the needs of both parties. For example, in a business partnership negotiation, both
companies may have different goals, but by collaboratively discussing their long-term plans and
objectives, they might be able to find a mutually beneficial partnership that aligns with both of their
interests through active listening and finding common ground. Through this, you are able to identify
underlying issues before convening a joint meeting where you can address both parties and seek a
solution. By creating a safe space for open communication and focusing on solutions, you can help the
conflicting sides reach a mutually agreeable compromise that resolves the dispute and fosters a more
peaceful coexistence.

 Cross-cultural negotiation: In a negotiation involving parties from different cultures, there are additional
challenges such as language barriers, differing values, and communication styles. In this context,
 negotiators can use the strategy of "cultural intelligence" where they seek to understand the other party's
cultural norms, values, and communication styles. For example, in a negotiation between a Western
company and a Chinese company, the Western negotiator might start by researching the Chinese culture
and adapting their negotiation style to be more relationship-oriented and avoid aggressive tactics. One
strategy that negotiators can use when negotiating an international business deal is understanding cultural
differences and building rapport while at it. According to Scotwork.com, cultural differences in
negotiations have the capability to affect communication and decision making. To overcome this, carrying
out research on the other party’s culture and norms will help one build trust and create rapport with them
which in turn will work to your favor in negotiations. Another example is when you are a Kenyan fabric
maker negotiating with a Chinese clothing factory to supply them with fabric for their clothes designs. By
learning, understanding, and respecting the Chinese cultural norms and their mode of dressing, you will
know what to say during negotiations, what samples to carry with you for bidding and generally create an
easy atmosphere for negotiations.

 Multi-party negotiation: In a negotiation involving multiple parties, each with their own interests and
agendas, it can be challenging to reach a consensus. In this context, negotiators can use the strategy of
"building coalitions" where they form alliances with other parties to better achieve their goals. For
example, in a political negotiation involving multiple parties, a negotiator from one party may reach out
to another party to form a coalition to push through a particular policy.

 Concession Strategy: Plan your concessions carefully, making sure they are not given away too easily or
without something in return, and ensure they lead towards your negotiation objectives. A negotiator might
intentionally make small concessions throughout the negotiation process on less important matters to
appear flexible and cooperative while holding firm on key issues.

 Good Guy/Bad Guy: The good guy/bad guy approach is typically used in team negotiations where one
member of the team makes extreme or unreasonable demands, and the other offers a more rational
approach. This tactic is named after a police interrogation technique often portrayed in the media. The
"good guy" appears more reasonable and understanding, and therefore, easier to work with. In essence, it
is using the law of relativity to attract cooperation. The "good guy" appears more agreeable relative than
the "bad guy."
 Silence and Active Listening: Use silence as a tool to encourage counterparts to share more information,
and engage in active listening to understand their perspective and interests deeply. Silent observation of
reactions or non-verbal cues may be essential in understanding the other party's position or satisfaction
level with proposals, leading to adjustments in offers without direct confrontation. Anchoring: Set the
tone and starting point of negotiations with an initial offer that favors your end goals. This can shape
subsequent discussions and adjustments towards a more favorable outcome for you. Upon initiating salary
negotiations, an employee may state a higher expected salary than what they are willing to accept, thus
setting the anchor point around which negotiations may revolve.

REFERENCES

Miller, O. (2014). The negotiation style: a comparative study between the stated and in-practice
negotiation style. Procedia-Social and Behavioral Sciences, 124, 200-209.

Narsimhan, S., & Prasad, D. (2016). Competitive negotiation tactics and Kraljic portfolio category
in SCM. Journal of Supply Chain Management System, 5(3).

Dragojevic, M., Gasiorek, J., & Giles, H. (2016). Accommodative strategies as core of the theory.
Communication accommodation theory: Negotiating personal relationships and social identities
across contexts, 1(1), 36-59.

Bear, J. (2011). “Passing the buck”: Incongruence between gender role and topic leads to
avoidance of negotiation. Negotiation and Conflict Management Research, 4(1), 47-72.

Fisher, R & Ury, W. (2011). Getting to YES: Negotiating agreement without giving in. Penguin
Books.

Hawkins, M. (2018). Best Practices for a Successful Negotiation or Mediation. Dinsmore & Shohl
LLP. https://www.dinsmore.com/publications/best-practices-for-a-successful-negotiation-or-
mediation/)

https://www.scotwork.com/negotiation-insights/tips-for-successful-cross-cultural-negotiation/