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    SMBD 2

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    Vaishnavi Khandelwal
    The document discusses various concepts related to negotiations and purchasing. It defines bargaining as negotiating specifically over price, while negotiation can involve multiple issues. It outlines strategies for principle negotiations such as inventing mutual gains and focusing on interests rather than positions. For new buyers, it distinguishes between deal issues, like equipment and payment terms, and relationship issues, like goals and trust. It then presents 5-stage and 8-stage models of the purchasing process for household and business customers.

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    Download as DOCX, PDF, TXT or read online from Scribd

    SMBD 2

    Uploaded by

    Vaishnavi Khandelwal
    25 views2 pages
    The document discusses various concepts related to negotiations and purchasing. It defines bargaining as negotiating specifically over price, while negotiation can involve multiple issues. It outlines strategies for principle negotiations such as inventing mutual gains and focusing on interests rather than positions. For new buyers, it distinguishes between deal issues, like equipment and payment terms, and relationship issues, like goals and trust. It then presents 5-stage and 8-stage models of the purchasing process for household and business customers.

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    The document discusses various concepts related to negotiations and purchasing. It defines bargaining as negotiating specifically over price, while negotiation can involve multiple issues. It outlines strategies for principle negotiations such as inventing mutual gains and focusing on interests rather than positions. For new buyers, it distinguishes between deal issues, like equipment and payment terms, and relationship issues, like goals and trust. It then presents 5-stage and 8-stage models of the purchasing process for household and business customers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views2 pages

    SMBD 2

    Uploaded by

    Vaishnavi Khandelwal
    The document discusses various concepts related to negotiations and purchasing. It defines bargaining as negotiating specifically over price, while negotiation can involve multiple issues. It outlines strategies for principle negotiations such as inventing mutual gains and focusing on interests rather than positions. For new buyers, it distinguishes between deal issues, like equipment and payment terms, and relationship issues, like goals and trust. It then presents 5-stage and 8-stage models of the purchasing process for household and business customers.

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    Submission for session 07

    Vaishnavi Khandelwal
    PGMB1951

    Learnings Outcome:
    1. Bargaining –Bargaining is a type of negotiation in which the buyer and seller of a good or
    service debate the price and exact nature of a transaction. If the bargaining produces
    agreement on terms, the transaction takes place. Bargaining is an alternative pricing
    strategy to fixed prices. Bargaining is basically what other side wants and it is restricted
    to price alone.
    2. Negotiation-Negotiation is a dialogue between two or more people or parties intended to
    reach a beneficial outcome over one or more issues where a conflict exists with respect to
    at least one of these issues. Negotiation is an interaction and process between entities who
    compromise to agree on matters of mutual interest, while optimizing their individual
    utilities. This beneficial outcome can be for all of the parties involved, or just for one or
    some of them. Negotiators need to understand the negotiation process and other
    negotiators to increase their chances to close deals, avoid conflicts, establishing
    relationship with other parties and gain profit. It may include much more than price or
    may not consist of price at all.

    3. Strategies of principle negotiations:


     Invent options for mutual gains
     Formulation for a bargaining strategy
     Focus on interest not on position
     Insist on objective criteria

    4. A new buyer /First time buyer may face two types of issues:
     Deal Issue
     Relation Issue
    5. Deal Issues-
    It consists of the following:
     Equipment
     Ownership
     Installation
     Training
     Spare parts and consumables
     Payment specific
    1|Page
     Upgradation

    6. Relation Issue –
     Specific mutual long term goals
     Individual personal interest
     Specific areas for future collaboration
     Mutual desire to maintain trust and respect

    7. Five stage model for household customers:


     Problem/ Need recognition
     Information search
     Evaluate alternatives
     Purchase decision
     Post purchase behaviour

    8. Eight Stage model for business buyers:


     Problem/Need recognition
     Characteristics and quantity determination
     Specification development
     Suppliers search and qualifications
     Obtain and analyse suppliers proposal
     Evaluation and selection of buyers
     Selection of purchase order routine
     Performance feedback and post purchase evaluation

    2|Page

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