You are a sales representative for an advertising consultancy. You are responsible for selling perimeter advertising for sports arenas in Italy. You sell 25 metre electronic advertising at Italian Serie A (first division) football matches.
Price on live television:
· corner position: $120 per flash (one minute);
· halfway line or behind the goal $240 per flash (one minute);
You can offer discount of up to 20%, but only for deals of three matches or more.
You can offer two free flashes at non-televised games instead of a discount.
Notes:
You have no space on the halfway line (middle of the playing area) in January and February.
A deal must be for a minimum of 10 flashes per match.
File card B/1
You represent an international fashion house with a major youth market, especially in Italy and Spain. You want to advertise at Italian Serie A (first division) football matches. You have a budget of $10,000. You would like the following:
· electronic advertising at matches on live television only;
· a minimum of ten flashes in every game (a flash = one minute);
· you prefer halfway line positions (they are most often seen by the TVcameras);
· you don’t want behind the goal unless you get a good discount;
· you would like to advertise at between four and six matches in the early part of the year (January – March).
File card A/2
You represent an international company with business links in Tokyo. You urgently need to buy a brand-new luxury apartment in Tokyo’s Shinjuku district. You could spend up to 250m, but you would prefer to spend only about 150m because you would like to buy a second, smaller apartment in Hachioji – but this is not essential.
Unit 14
Notes:
a) Shinjuku is one of the most famous and prestigious districts in downtown Tokyo.
b) You would like the apartment to be near Shinjuku Gyoen Park, or close to Shinjuku station.
c) Hachioji is a suburb – you are not sure exactly where.
d) You need the apartment to be ready in less than three weeks.
e) You want the inside decorated to your specific requirements – you will pay extra for this.
f) You would like an apartment with a swimming pool and tennis courts.
g) You want a large apartment – about 200sq. m.
h) If you cannot have any of the above, you would like to pay less.
File card B/2.
You represent an international property company. You are selling luxury apartments in Tokyo.
| Costs:
| Shinjuku district:
| 100m to 200m
|
| Ueno:
| 70m to 80m
|
| Hachioji:
| 60m
|
| Chofu:
| 80m
|
Notes:
a) Apartments in Tokyo are small: land is very expensive.
b) 70sq.m. is normal, 100sq.m. is large by Tokyo standards.
c) It is virtually impossible to provide a swimming pool or tennis courts.
d) You have two new apartments in Shinjuku:
· 100sq.m. at 120m
· 150sq.m. near the Shinjuku Gyoen Park, 200m
e) Shinjuku is one of the most famous and prestigious districts in downtown Tokyo.
f) Prices are negotiable – but no more than 20% less.
g) Hachioji is a suburb, about 40 minutes by train from the centre.
h) You have an excellent apartment in Chofu (near the centre) for sale at 120m.
i) The apartments could be ready in 5 to 6 weeks.
j) Special interior design can be arranged – cost about 20m.
Practice 12. Discuss the following questions:
1. What qualities make a good negotiator?
2. Do you have to negotiate? Do you like negotiating? Why/why not?
3. What are the normal social «rules» in your country in the context of a buyer-customer negotiation?
4. Is every negotiation potentially a win-win one?
5. Do you think that making goodwill gestures is a good idea, or should you always demand concessions in return for the concessions that you make?
6. What sort of agreements or contracts does your orgatization have with others?
Who draws them up?
Unit 14
LANGUAGE CHECKLIST
A.
| Making an opening
statement:
| Welcome to …
I’m sure we will have a useful and productive meeting.
|
| First meeting:
| We see this is a preparatory meeting …
We would like to reach agreement on …
|
| One of the series of meetings:
| Following previous meetings we have agreed on some important issues. Today we have you think about …
We have reached an important stage …
|
| Stating your aims and
objectives:
| I’d like to begin with a few words about our general expectations …
May I outline our principal aims and objectives today …
We want to clarify our positions …
We have a formal agenda …
We don’t have a formal agenda, but we hope to reach agreement on …
There are three specific areas we would like to discuss. These are …
We have to decide …
|
| Stating shared aims and objectives:
| Together we want to develop a good relationship.
We agree that …
It is important for both of us that we agree on …
|
| Handing over:
| I’d like to finish there and give you the opportunity to reply to this.
I’d like to hand over to my colleague…, who has something to say about …
|
B.
| Bargaining:
| We can agree to that if …
…on condition that …
… so long as …
That’s not acceptable unless …/without …
|
| Making concessions:
| If you could … we could consider …
So long as … we could agree to …
On condition that we agree on … then we could …
Let’s think about the issue of …
We could offer …
Would you be interested in …?
Could we tie this agreement to …?
|
| Accepting:
| We agree.
That seems acceptable.
That’s probably all right.
|
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| Confirming:
| Can we run through what we’ve agreed?
I’d like to check/confirm/what we’ve said.
I think this is a good moment to repeat what we’ve agreed so far.
|
| Summarising:
| I’d like to run through the main points that we’re talked about.
So, I’ll summarise the important points of our offer.
Can we summarise the proposals in a few words?
|
| Looking ahead:
| So, the next step is …
We need to meet again soon.
In our next meeting we need to …
So, can we ask you to …?
Before the next meeting we’ll …
We need to draw up a formal contract.
|
C.
| Dealing with conflicts:
| I think we should look at the points we agree on…
We should focus on the positive aspects…
We should look at the benefits for both sides …
It is in our joint interests to resolve the issue …
What do you think is a fair way to resolve this problem?
We hope you can see our point of view …
Let us explain our position …
Could you tell us why you feel like that?
I think we should look at the whole package, not so much at individual areas of difficulty.
Perhaps we could adjourn for a little while.
I think we need to consider some fresh ideas …
|
| Rejecting:
| I’m afraid we can’t …
Before agreeing to that we would need …
Unfortunately, …
I don’t think it would be sensible for us to …
I think if you consider our promotion, you’ll see that …
|
| Ending negotiations:
| So, can we summarise the progress we’ve made?
Can we go through the points we’ve agreed?
Perhaps, if I can check the main point …
So the next step is …
What we need to do now is …
It’s been a very useful and productive meeting.
We look forward to a successful partnership.
|
| Breaking off negotiations:
| I think we’ve gone as far as we can.
I’m sorry, but I don’t think we’re going to agree a deal.
It’s a pity we couldn’t reach agreement this time.
Unfortunately, we appear unable to settle our differences.
It would be better if we looked for some independent arbitrator.
|
Unit 14
SKILLS CHECKLIST.
| Type of negotiation:
| a) towards agreement – both teams try to suit joint interests; b) independent advantage – each team aims to get best deal; c) conflict – a team aims to win and make the other ream lose.
|
| Purpose of negotiation:
| a) exploratory (possible areas of interest);
b) conciliatory (resolving differences);
c) work towards a contract.
|
| Facts and figures:
| a) prepare statistical data;
b) know facts;
c) prepare visuals.
|
| Strengths and weaknesses:
| a) list your bargaining strengths;
b) know your possible weaknesses;
c) calculate your bargaining position.
|
| Possible concessions:
| a) plan your bargaining strategy;
b) list essential conditions – impossible to concede;
c) list possible concessions.
|
| Opening statements:
| a) state general objectives;
b) state priorities;
c) state independent (not joint) objectives;
d) be brief.
|
| Bargaining:
| «A key principle in negotiation is to give a little and get a little at the same time».
Ask for concessions.
All concessions are conditional – «If …., then ….»
Give what is cheap to you and valuable to them.
|
| Main speaker:
| Create a joint, public and flexible agenda.
Question needs and preferences.
Don’t talk too much.
Listen.
Don’t fill silence.
Build on common ground.
Explore alternatives: «What if …?»
Be clear, brief and firm.
|
| Support speaker:
| Wait till the Chair or your main speaker brings you in.
Be clear, brief and firm.
Follow the concession rules.
Support your main speaker:
- agree (nod, say «That’s right»);
- emphasise (The point is very important);
- add forgotten points (And we must remember...);
- but don’t make concessions for your main speaker;
- listen;
- don’t fill silence.
|
Unit 14
| Dealing with conflicts:
| Show understanding of the other side’s position.
Highlight advantages of agreement.
|
| Don’t …
- be sarcastic;
- attack;
- criticise;
- threaten;
- blame.
| Do …
- ask questions;
- listen;
- summarise;
- build on common ground;
- explain your feelings.
|
| Types of negotiator :
| hard
negotiates to win;
makes demands.
| fighter
win – lose.
|
| principled
looks for common benefits;
makes offers.
| independent
advantage
win – win.
|
| soft
looks for agreement;
accepts what’s on offer.
| creative negotiator
looks for agreement.
|
| Rejecting:
| Ask for adjournment.
Discuss options.
Remember your limits.
Decide if your interests are being met: if not, reject the proposal on offer, or suggest alternatives.
|
| After the negotiation:
| Compare the results with your objectives, targets and limits.
Examine the process of the negotiation: the planning – the strategy – team roles – the issues.
Learn from failure: what went wrong and why, identify weaknesses and errors, discuss and plan ahead.
Build on success: negotiate success, praise people, develop teamwork and partnership.
|
CULTURE PAGE.
