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1、Advanced NegotiatingMedia Sales ObjectivesWhat are your sales objectives?1To get results for customers2To develop new business3To retain and increase current businessPresellUpsell4To increase customer loyaltyMedia Sales StrategiesWhat are your sales strategies?1To sell solutions to advertising and m

2、arketing problems-Complete customer focus2To reinforce the value of advertising and your mediumStrategies3To create value for your product4To become the preferred supplierTo establish,maintain,and improve relationships at all levels of the client and agency(keep agency informed)To provide the best r

3、esearch,information,and adviceTo be your partners online marketing consultant by providing solutionsStrategies5To innovate5New packages,new rotations,new ideas5New creative approaches5Innovative technology5“The only functions of an enterprise:marketing and innovation.Peter DruckerKey FunctionsTo cre

4、ate a differential competitive advantage in a buyers mindTo manage relationshipsTo solve problemsBargaining for AdvantageBased largely on Bargaining for Advantage:Negotiating Strategies for Reasonable People,Richard Shell,Penguin Books,1999Before You BeginAll knowledge begins with“know thyself.Look

5、inside first and honestly assess your styleAccommodating and cooperativeCompetitiveTo be a successful negotiator,you must be yourself at bargaining table.Tricks and stratagems you dont feel comfortable with wont work.The best negotiators play it straight,ask a lot of questions,listen carefully,and c

6、oncentrate on their and the other sides interests.Understand PersuasionThe best negotiators see the psychological and strategic currents that are running below the surface.They understand and know how to use the principles of persuasion:ReciprocationCommitment and ConsistencySocial ProofLikingAuthor

7、ityScarcityThe Approach:Information-Based BargainingInformation-based bargaining involves getting as much reliable knowledge about the other sides business,personal needs,fears,interests,and demands as possible.Successful negotiating also involves situational strategies-there is no one-size-fits-all

8、 approach.The best negotiators have explicit guidelines for their conduct at the table regardless of what others may do-the“rules of the game.Discovery=Gathering InformationThe most important initial step in selling and negotiating is gathering information-discovery.Gather Information:ListenThe vita

9、l,fundamental skill in gathering information is listening.Dont sell until you listen.Dont negotiate until you listen and gather and exchange information.The Six Foundations of Effective NegotiationFoundation#1:Your Bargaining StyleNegotiations in all cultures follow a four-step path:PreparationDisco

10、very and information exchangeExplicit bargainingCommitmentWe Are All Negotiators“A negotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us.We Are All NegotiatorsAll communication interaction occurs

11、 in a context of ongoing relationships that are characterized by deeply embedded norms of reciprocity.The quid pro quo normSets off an automatic trigger.Triggers and Stereotypes*The trigger effectAutomatic reactions(turkey,robin)If we ask someone to do us a favor,we will be more successful if we giv

12、e a reason.“Because pulls the trigger.Stereotypes=shortcuts(“Expensive=good)*Influence:The Psychology of Persuasion,Robert Cialdini,William Morrow,1993Reciprocation*The reciprocation rule says that we should repay,in kind,what another person has provided us.Whether we want it or not(Hare Krishna)Giv

13、e you a flower,book,or candy caneandPulls the trigger.Free sampleThe rule is overpowering.*Influence:The Psychology of Persuasion,Robert Cialdini,William Morrow,1993Reciprocation*Society benefits from strong reciprocation rules,thus encourages them.“Although the obligation to repay constitutes the e

14、ssence of the reciprocity rule,the obligation to receive makes the rule easy to exploit.“The obligation to receive reduces our ability to choose who we wish to be indebted to and puts the power in the hands of others.*Influence:The Psychology of Persuasion,Robert Cialdini,William Morrow,1993Reciproc

15、ation*People find it highly disagreeable to be in a state of obligation.People who violate the reciprocity rule are disliked.“Welsher,“moocher,“freeloader.When youre negotiating,you choose a small,indebting first concession and then ask for a bigger reciprocal concession in return.*Influence:The Psy

16、chology of Persuasion,Robert Cialdini,William Morrow,1993Reciprocation*Or,even more effective,ask for a major concession(“Invest in it for$5 million),then when you are turned down,come back with a smaller ask(“How about$3 million).The second ask will be seen as a concession on your part and the othe

17、r side will feel obligated to settle.*Influence:The Psychology of Persuasion,Robert Cialdini,William Morrow,1993Four Bargaining TypesThe four bargaining styles are based on the way people prefer handling interpersonal conflict(in descending order of aggressiveness):1Competitors2Narcissists3Cooperato

18、rs(compromisers)4AccomodatorsBargaining StylesTry this“thought experiment:Ten people sitting a round table.$1000 prize to each of first two people who can persuade the person sitting opposite to get up,come around the table,and stand behind his or her chair.How will you respond?You will need to move

19、 quickly.Close your eyes,think about how you would handle this.When you have an answer raise your hand.Bargaining StylesA cooperator wouldnt argue and would run behind someone elses chair who offered$500 split.An accommodator would get up an run behind the opposites chair while others were talking a

20、nd not think of his/her reward.A competitor would say,“Quick,get behind my chair!Ill share the money with you!A narcissist would say,“Quick,get behind my chair!Ill give you part of it!Bargaining StylesCompetitors try to control negotiations,opening with ambitious demands,using threats and ultimatums

21、,and walking out to demonstrate their commitment to their goals.In the table game,the competitor is the persuader,will decide how to share the money,and will keep the lions share.A competitor is not interested in being fair,but wants to win at all costs-and wants the other side to lose.Know Your Sty

22、leThe four types can be folded into two basic types:CooperatorsResearch shows about 60%are cooperative and 75%of effective negotiators are cooperative.Avoid defend/attack spirals and cycles of emotion-laden assigning of blame or disclaiming fault.CompetitorsResearch shows about 24%are truly competit

23、ive.Only 12%of effective negotiators are competitive.Know Your StyleResearch shows most people tend to believe others are like themselves(projection).A dangerous assumption.Read“Negotiating Styles and“Patterns of Negotiation in the Advanced Negotiating Workbook(charleswarner.us/inpexppr.html).Compet

24、itors are hard to convert because they view their counterparts as competitive.Dont waste time trying to convert people.Beyond Style-To EffectivenessEffectiveness is more attitude than ability.Four key habits of thought of effective negotiators:1A willingness to preparePreparation is the champions ke

25、y to success.2High expectationsExpectations high enough to present a real challenge but realistic enough to promote good working relationships.Four Key Habits of Thought of Effective Negotiators3The patience to listen4A commitment to personal integrityKeep promises and dont raise hopes with promises

26、 you have no intention of fulfilling.Foundation#2:Your Goals and ExpectationsGoals:Youll never hit the target if you dont aim at it.The difference between a goal and an expectation is your attitude.Our goals give us direction,but our expectations give weight and conviction to our statements-we are m

27、ost enthusiastic when we strive to achieve what we feel we deserve.The more preparation we do,the more it reinforces our beliefs that our goals are achievable and reasonable.Mental PreparationConfidence is everything,in yourself,in your product,in your proposal.Mentally rehearse.Visualize.See a posi

28、tive outcome.Practice out loud.Put yourself in the other sides shoes.EmpathyPrepare Your GoalsGoals set the upper limit of what you will ask for.You mentally concede everything beyond your goals,so you seldom do achieve higher.Challenging but achievable goals help reinforce our commitment.Passionate

29、 commitment to ambitious goals gives you a significant psychological edge.Focus on your highest legitimate expectation of what you should achieve,not your bottom line.The Positive Bargaining Zone$0$250$100$150Sellers bottom line:Seller must get at least$100.Buyers bottom line:Most buyer will payis$1

30、50.During negotiations,people tend to gravitate toward their bottom line-the dominant reference point-and measure success with reference to the bottom line as it is difficult to reorient to an ambitious bargaining goal.Effective Preparation1Think carefully about what you really want-and remember tha

31、t money is often a means to an end,not the end itself.2Set an optimistic-but justifiable-target.3Be specific.4Get committed.Write down your goal and,if possible,discuss it with someone else.5Carry your goal with you into the negotiation.Commitment and Consistency*“our almost obsessive desire to be(a

32、n appear to be)consistent with what we have already done.“Once we have made a choice or taken a stand,we will encounter personal and interpersonal pressure to behave consistently with that commitment.“Those pressures will cause us to respond in ways that justify our earlier decision.*Influence:The P

33、sychology of Persuasion,Robert Cialdini,William Morrow,1993Commitment and ConsistencyCognitive dissonancePeople are very stubbornly consistent with past actions-often because we are mentally lazy.Consistency examples:“How are you feeling today?(Red Cross begins solicitation phone calls with this que

34、stion,knowing that if you say“fine you will be more likely to be consistent and give something).“The United States is not perfect(In the Korean War Red Chinese prison camps,they got prisoners to admit something small knowing that they would admit to larger and larger and larger faults to remain cons

35、istent.)Start small and work up is the lesson.Commitment and ConsistencyIn the camps they would have prisoners read the Communist Manifesto out loud,eventually the prisoners would begin to believe it-because they said it and they wanted to be consistent.Belief follows action because people want desp

36、erately to avoid cognitive dissonance,being inconsistent.Get people to do something-an action-and they will believe they did it for a good reason in order to remain consistent.Commitment and ConsistencyFoot-in-the-door tacticStart with a small compliance and work up.Small“Drive Safely sign,then a hu

37、ge billboard Door-in-the-face tacticStart with a request for help,get commitment with the concept,make a huge ask,settle for medium amount.“Do you believe in driving safely?“Will you put up a billboard?“How about a little bit smaller sign?Commitment and ConsistencyWrite it down to increase commitmen

38、t.Write down goals to increase commitment to them.Testimonial contests(P&G,General Mills)Public commitmentsTell a friend youre stopping smoking.The more effort that goes into a commitment-getting something-the more valuable it becomes.Get people to take internal(personal)responsibility.Threats dont

39、work.Commitment=ConfidenceIf you are committed to goal,this commitment will show-it will communicate your confidence and resolve to the other side in a negotiation.Preparation leads to setting high goals and expectations,which lead to commitment,which leads to confidence.Confidence and self-esteem e

40、manates from people who know what they want and why they ought to get it.Foundation#3:Authoritative Standards and NormsIn addition to the power of clear goals,negotiation harnesses one of human natures most basic psychological drives:our need to maintain consistency and and a sense of fairness(inter

41、nally and externally).In order to maintain consistency and a sense of fairness,we must have standards for comparison.StandardsStandards bracket the bargaining zone and permit both sides to talk about their preferred end of the range without appearing,at least in their own eyes,to be unreasonable.Fin

42、ding the standards that apply in a negotiation and doing your homework on how to make your best case using these standards give you a“speaking role in the negotiation process.Standards:We All Want to Appear to Be ReasonableStandards,especially standards the other side has adopted,are important to un

43、derstand because people like to seem to be consistent when they make a decision.People are open to persuasion when they see a proposed course of action as being consistent with a course(or standards)they have already adopted.Standards and ConsistencyYou maximize your leverage when your standards are

44、 ones the other party views as legitimate and relevant to the resolution of your differences.The best practice,therefore,is to anticipate the other sides preferred standards and frame your proposal within those standards.Encourage them to be consistent.Beware of Consistency TrapsThe tip-off is when

45、someone tries to get you to agree with some statement before telling you why the statement is important.“Would you like to save some money?“Wouldnt you like to settle this now?They try to get you to agree quickly because it seems logical.Competitive,aggressive negotiators(and telemarketers)often use

46、 consistency traps.The Power of AuthorityIn addition to the consistency principle,there is another lever that make standards persuasive-the authority principle.We are all socialized to respect,defer to,and obey authority.Reinforced by symbols of authority:Status and positionMoney and powerComplex co

47、ntractsAuthoritative,legalistic packagingFoundation#4:RelationshipsNegotiation in the end is about people-relationships.Personal relationships create a level of trust and confidence between people that eases anxiety and facilitates communication.Relationships are built around the norm of reciprocity

48、.We feel obligated to exchange gifts and Christmas cardsand concessions in a negotiation.Relationship RulesRelationship Rule#1:“Do unto others as they would have others do unto them.Relationship Rule#2:“People like and trust people exactly like themselves.Relationship Rule#3:“People dont care how mu

49、ch you know until they know how much you care.Relationships=TrustAn ounce of trust is worth a ton of contracts.Andrew Carnegie and J.P MorganThe Rules of Reciprocity:Be trustworthy and reliable yourself if you want others to be.Be fair to those who are fair to you.Let others know when you think you

50、have been treated unfairly.Unfair treatment,left unnoticed,leads to exploitation.Tit For TatTrust begets trust.Fairness begets fairness.Generosity begets generosity.But always take turns(tit for tat).After you make a move,wait until the other side reciprocates before you move again.Reciprocity is a