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Unit 7

This document discusses various techniques and tactics used in persuasion and negotiation. It contrasts distributive vs integrative negotiation approaches and describes tactics associated with each. Specific tactics covered include assessing the other party's targets and resistance point, managing impressions, changing perceptions, brainstorming alternative solutions, and expanding resources. The document also discusses the importance of ethical behavior in negotiation and purchasing.

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Benjamin Adelwini Bugri
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88 views36 pages

Unit 7

This document discusses various techniques and tactics used in persuasion and negotiation. It contrasts distributive vs integrative negotiation approaches and describes tactics associated with each. Specific tactics covered include assessing the other party's targets and resistance point, managing impressions, changing perceptions, brainstorming alternative solutions, and expanding resources. The document also discusses the importance of ethical behavior in negotiation and purchasing.

Uploaded by

Benjamin Adelwini Bugri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UNIT 7

Techniques and Tactics of Persuasion

Tactics for negotiations


The distributive approach to
negotiations is based on the idea that
there is a fixed ‘pie’ and our only
objective is to maximise our share of it.
We do so by obtaining
concessions which reduce
the supplier’s share of the
pie.
By contrast, in an
integrative negotiation we
focus on joint problem
solving in order to increase
the size of the ‘pie’.
The focus is on tactical
moves by buyer and
supplier. Once again the
distinction between
distributive and integrative
approaches is a useful one.
We begin by discussing
tactics associated with
distributive bargaining.
1. A first step is to assess
The other party’s target (i.e. his
hoped for outcome),
His resistance point (i.e. his
minimum acceptable outcome), and
His costs of terminating the
negotiation.
2. Another tactical task for the buyer is
to manage the other party’s
impressions.(imprint)

The buyer may actively foster a


misleading impression in the supplier’s
mind (while avoiding actual lies).
3. Another tactical task
is to change the
supplier’s perceptions.
(opinion)
This means putting the
supplier’s own objectives in a
different light – making them
seem less attractive or more
costly than the supplier had
originally thought.
we noted that one stage
integrative negotiation process is
to generate alternative solutions.
Here are some tactical means by
which such alternatives may be
developed.
One approach is simply to
brainstorm the problem with a view
to generating as many solutions as
possible.
Other techniques rely on redefining
the problem, e.g. by finding ways of
increasing the total resources to be
shared between the parties.
OTHER STRATEGIES OF Generating
Alternative Solutions
1. Expand the pie
Many negotiations begin with a shortage of
resources, and it is not possible for both sides to
satisfy their interests or obtain their objectives
under the current condition. A simple solution is to
add resources – expand the pie – in such a way that
both sides can achieve their objectives.
2. Logroll
Successful logrolling requires the parties to find
more than one issue in conflict and to have
different priorities for those issues.
The parties then agree to trade off among
these issues so that one party achieves a highly
preferred outcome on the first issue and the
other person achieves a highly preferred
outcome on the second issue.
3. Use nonspecific compensation
This tactic is to allow one person to obtain
his/her objectives and pay off the other person
for accommodating his/her interests. The pay
off may be unrelated to the substantive
negotiation, but the party who receives it
nevertheless views it as adequate for agreeing
to the other party’s preferences.
4. Cut the costs for compliance
Through cost cutting, one party achieves
his/her objectives and the other’s costs
are minimized if he/she agrees to go
along. However, it requires a more
knowledge of the other party’s real needs
and preferences.
5. Find a bridge Solution
When the parties are able
to invent new options that
meet all their respective
needs they have created a
bridge solution.
A. Techniques of persuasion
Steele and Beasor identified five
approaches to influencing suppliers:
threat, emotion, logic, compromise
and bargaining.
others

1.Reciprocity
2.Scarcity
3.Price Anchoring
4.Attentional Bias
There is much material in the purchasing
literature on the subject of tactics and
ploys. Often these are characterised by an
element of deviousness, amounting in
some cases almost to sharp practice. They
are therefore more likely to be met with in
distributive negotiations rather than
integrative negotiations.
Nowadays, policies on ethical
behaviour are considered an essential
element in strategic management.
This, and the importance rightly
accorded to these issues by
professional bodies, makes it vital that
you study this area closely
Notice as you do so that the
appearance of inappropriate
behaviour is often as damaging as
actual abuse: even untrue rumours
of unethical behaviour can damage
your firm and your profession.
Buyers are more exposed to
temptation than most professionals.
They control large sums of
organisational funds.
They are engaged in decisions
between one supplier and another, all
such suppliers having an interest in
influencing the buyer’s decision.
It is difficult to determine wholly
objective criteria for deciding
between rival suppliers, and non-
objective criteria may enter by the
back door.
This places great responsibility on
the buyer’s shoulders.
National and international bodies
representing purchasing professionals
have published codes of practice
setting out (usually in fairly broad
terms) what activities are considered
unethical and giving general guidance
on the ethical performance expected
of members.
A starting point in studying this
area is a consideration of the
ethical code published by the
Chartered Institute of
Purchasing and Supply.
3.Creating negotiation leverage
Conflict can be highly desirable. It
can energise relationships and
clarify issues. John Hunt suggests
that conflict is constructive, when
its effect is to:
•Introduce different solutions to problems

•Define power relationships more clearly

•Encourage creativity and the testing of


ideas
•Focus attention on individual contributions

•Bring emotions out into the open

•Provide opportunity for catharsis: the release


of hostile feelings that might otherwise be
repressed
Conflict can also be destructive,
negative and damaging. Hunt
suggests that conflict of this
kind may act to:
•Distract attention from the task

•Polarise views and ‘dislocate’ the parties


concerned

•Subvert objectives in favour of secondary


goals
•Encourage defensive or ‘spoiling’ behavior

•Result in disintegration of the relationship

•Stimulate emotional, win-lose conflicts, or


hostility
Cornelius and Faire outline a
win-win approach to conflict
resolution as follows.
•Step 1: find out why each party needs
what they say they want.

•Step 2: find out where the differences


dovetail.
•Step 3: design new options

•Step 4: cooperate.
A buyer can analyse the pattern of
concessions made by a supplier. The main
point is that a series of concessions at the
same monetary value suggest that the
supplier still has room for maneuver; the
buyer should therefore continue to seek
further concessions.
By contrast, a pattern of reducing
concessions may suggest that the
supplier is approaching his resistance
point; the buyer cannot (if he believes
the supplier) expect to gain much
more ground in the negotiation.

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