Everybody wants to tell you what negotiations tactics they use, the mindset of a good negotiator; however few talk about difference between negotiation styles or what technically called the distributive negotiation and the integrative negotiation.
When learning negotiation techniques, you should know where you would use these techniques. Knowing the context of negotiation is primordial to prepare wisely for. Like you choose to buy a Ferrari sport car but you don’t know if the roads are suited for and where you going to be driving. You’re off road if you prepare for something that you ignore the ground you’ll be on.
So today, we show you these main negotiation styles to start Kicking Every Agreement.
Distributive Negotiation Style:
Distributive negotiation is appropriate in “divide the pie” situations, when there is a fixed amount of resources and whatever one party gains, the other party loses. Usually it’s employed when the parties don’t know each other and don’t believe they will need to develop a relationship with each other for use in the future. A distributive approach to negotiation is usually what we encounter when we make a purchase.
Distributive Negotiation Tactics:
In distributive bargaining, it’s best to keep information to yourself while trying to get information out of the other party. Let them make the first offer, since this lets you know what they’re willing to give up. Do tell them about alternatives you have, such as competing offers for what you’re selling, or interest in a product that competes with the one they’re selling if you’re the buyer. But be willing to make concessions in order to reach a realistic outcome.
Integrative Negotiation Style:
Often referred as a Win-Win negotiation, an integrative negotiation style aims to (when it’s possible to produce a greater outcome together than either could reach alone). It’s used when the parties have a relationship or want to establish one, and when cooperation benefits both parties. There are often multiple issues to address, and the negotiations can be complex and ongoing. Most of us use integrative bargaining within our families and between business partners.
Integrative Negotiation Tactics:
Determine your list of priorities, and make a guess about the other party’s priorities as well. Share information with each other, being honest about your priorities; often something critical to one side is a minor concession to the other, and vice versa. Find and offer solutions that produce the most gain for the other party as well as for you. Remember that you will be in other negotiation situations with the other side in the future, and be willing to compromise when needed to build goodwill for later.
First step in the process
Now you can define which negotiation styles are suited for the situation you’re preparing for. Achieve the preparation of the negotiation and move on to the next step in the negotiation process.