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Integrative Bargaining Elements

Integrative bargaining involves multiple issues where each side can gain value from certain issues while giving others up. It requires openly sharing information, problem solving to address each side's interests, and building long-term relationships. Distributive bargaining typically focuses on a single fixed resource like price where one side's gain requires the other's loss. It involves revealing little information while obtaining the other's, establishing alternatives, making the first offer to anchor negotiations, and keeping expectations realistic.

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127 views5 pages

Integrative Bargaining Elements

Integrative bargaining involves multiple issues where each side can gain value from certain issues while giving others up. It requires openly sharing information, problem solving to address each side's interests, and building long-term relationships. Distributive bargaining typically focuses on a single fixed resource like price where one side's gain requires the other's loss. It involves revealing little information while obtaining the other's, establishing alternatives, making the first offer to anchor negotiations, and keeping expectations realistic.

Uploaded by

Dr-Shefali Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Integrative Bargaining Elements

There are some negotiations in which both parties feel as if


they gained something in the deal. This is known as
integrative bargaining, and the best way to think about this
strategy is that it’s a “win-win” for both parties.
The idea is that you’re negotiating in such a way that you take
the other party’s wants, needs, fears, and concerns into the
equation. Instead of simply worrying about losing less than
the other party, you are looking for a solution in which both
parties have to give up something to finalize the deal.
Integrative Negotiation Basics
Multiple Issues – Integrative negotiations usually involve many issues that
are up for negotiation. Each side wants to get something of value while
trading something of lesser value. In contrast, distributive negotiations
generally revolve around the price or a single issue.
Sharing – To understand each other’s situation, both sides should share as
much information as possible. This helps each side understand the other’s
interests. You can’t solve a problem without knowing the parameters.
Cooperation is essential.
Problem Solving – Find solutions to each other’s problems. For example,
offer something valuable to the other side that is of lesser value to you. If
you can make this trade while realizing your goal, you have integrated your
problems into a positive solution.
Bridge Building – More and more businesses are engaging in long-term
relationships. Relationships offer greater security and the promise of future
success.
Distributive Bargaining Elements
There are some instances in which you are negotiating
for what are known as fixed resources, which
typically means the price of a product or service. In
these situations, you may need to adopt a distributive
bargaining strategy, which is based on the idea that
your gain means the other party’s loss.
In other words, your goal is to negotiate in such a
way that when you reach an agreement, you have
given up less than the other party. Your goal is to win
as much as you can during the negotiation, and,
typically, that means that the other party has to give
up something.
 Play your cards close to your chest – Give little or no
Distributive Bargaining Basics

information to the other side. The less the other negotiator


knows about our interests, the better our position. This can
include why we want to make the purchase, our preferences, or
the point at which we’d decline the deal. Expressing eagerness
or need reveals a weakness that could be exploited.
 The opposite is equally true – Try to obtain as much
information from the other side as you can. Any further
information uncovered is potential leverage to negotiate a
better deal.
 Let the other side know you have options – The only
information we should reveal is the fact we have options. This
includes other sellers we can purchase from at a competitive
price. Reminding the seller of their competition shows our
willingness to walk if necessary. It also lets the seller know
there will be no negative consequences for us.
Make the first offer – Whatever the first offer is will
generally act as a  negotation anchor. The anchor
becomes the point on which the rest of the negotiation
will likely revolve. Try to make the first offer to
ensure discussions set off in your favor.
Be realistic – Being too greedy or too stingy will
likely result in no agreement. So, keep expectations
realistic

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