The Negotiation Process

The negotiation process about which we are going to talk about was held between the managers of two departments of chocolate company. The process itself is interesting and it is also a good illustration of the negotiation styles used by participants.

[pic 1]

Marketing Manager: if we don’t use big bars and special shape, we can lose the market share. So can you buy a better machine to produce this kind of product?

Marketing manager open a conversation for the proposal about a new machine to produce big bars and special shape roduct. He/ She use the coercivs approach since telling the R&D manager about the fact that this technology is valuable. (suggestion)

[pic 2]

R&D Manager : the major problem is that we have a fixed budget, we can’t buy a new machine.So we can only prosuce small and one shape chocolate.

R&D Manager give the reason that why they can’t but a new machine and insist his/her opinion about product.(suggestion taken without counter suggestion)

[pic 3]

R&D Manager : if you will just look at this thing rationally, you will find that because the limited to the machine, we can only produce small and one shape product.

This is rational approach of R&D Manager by trying to convince the Marketing manager with the fact that there will be a technology event so that limited to produce product.

[pic 4]

Marketing manager:I can agree with you on this point.

Marketing manager agree with R&D Manager in the size and shape of chololate design.They make an agreement.

R&D manager:I don’t agree with you. Green, white and red is the best combination to lower costs. We have been working together for a long time and make benefits for company.  I will be appreciate if you can accept my suggestion.[pic 5]

R&D manager proposed a counter suggestion.Relationship-raising approach,which is highly recommend both in business negotiation and private life is applied in this lose- win situation.,”We have been....for a long time”is the typical format of a relationship-raising approach,so we decided to use this sentence in order to maximize the probability that the marketing manager will accept this counter suggestion.

Marketing manager:Ok. It sounds like a good idea. Let’s settle on these normal colors.[pic 6]

The marketing manager accept the counter suggestion and make a confirmation about the package color.

Marketing manager:If we don’t use big bars and special shape, we can lose the market share. [pic 7]

This rational approach is used in the win-win situation.

[pic 8]

Marketing manager:We need to make profits and we need to catch the customers eyes.That is why we should change product package and shape.

The marketing manager point out the need of the company:to maximize the profit. That is why the R&D manager agree on his suggestion.