This negotiation techniques tutorial introduces the concept of distributive negotiations, or approaching bargaining as a win-lose situation.
Hope you will enjoy the video! Here's a link to the full course on Udemy:
This tutorial is part of a series of short movies on how to be an effective negotiator. The complete module can be found on Udemy, as a core part of the MBA in a Box course by CEO Valentina Bogdanova and 365 Careers.
Among business strategy and marketing insights, the course delivers repeatable tactics and bargaining strategies that can be widely applied across professional and personal settings.
Negotiation module table of contents:
1. Negotiation: An Introduction
Intro to Negotiation
Why is negotiation a core managerial skill?
Why are people bad negotiators?
2. Negotiation: The negotiation toolbox
Understanding BATNA
Reservation point and the Bargaining range
3. Negotiation: The importance of preparation
Assessing yourself
Assessing your opponent
Assessing the situation
3. Negotiation: Types of negotiation
Distributive negotiations (Slicing the pie)
Distributive strategies (Pie-slicing strategies)
Interest-based bargaining
Interest-based negotiation strategies
Claiming
Choosing the correct negotiation strategy
4. Negotiation: Subtleties that will help you in the long run
Adverse tactics and protecting yourself from them
Conflict resolution
Establishing trust
Broken trust and how to repair it
Mediums of negotiation
5. Negotiation: A Complete Negotiation Case Study
The negotiation between Disney and Lucasfilm
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The core idea of distributive negotiations is to distribute a fixed amount of resources. Like money, or the slices of a pie. This is why distributive negotiations are also described as a “slicing the pie” approach.
The point of going into distributive negotiations is to secure as much of the bargaining range for yourself as you can.
This type of competitive negotiating is often called win-lose, or zero-sum. Why? If you manage to claim a lot of the negotiation surplus, your opponent will be left with less. The more one side gets, the less the other side receives.
Distributive bargaining is effectively a dance between your reservation point and your partner’s walkaway. The goal is to reach a resolution which is closer to your target, and, ultimately, your partner’s reservation point, not the other way around.
The popular opinion in conflict resolution theory is that win-lose bargaining should not be used, because it does not deliver the best results. However, there are specific situations in which aggressive negotiations make more sense than negotiations which focus around creating value for all parties. For example, when buying a used car, or haggling at a flea market.