Sales Management Negotiations

Negotiations are a form of communication, usually in the form of a conversation, about a controversial issue, which are characterized by conflicting needs, interests and motives. Basically, negotiations aim to balance interests by weighing positions and the intensity of needs to reach a conclusion (Obrien, 2016). All people have interests, desires, motives and needs that they want to realize. These needs may be different in nature but have the same characteristics and expressions (Obrien, 2016). Buyers have the desire and need to obtain the lowest purchase price in a transaction, whereas sellers strive for the highest selling price. Both sides aim for the best price for their own side (Obrien, 2016). Intra-company demands for a higher budget are also needs that have to be enforced in intra-company negotiations (Helmold & Terry, 2016). For example, in a company, there may be a desire for additional salespeople to expand into other countries and markets. Job interviews also involve wants and needs of the parties involved, namely, to find the appropriate employee or position. In addition to the actual job, there are numerous elements in job interviews, such as salary, benefits or perks, that are part of the negotiation. Not only in companies but also in personal life, there is a plethora of needs that end up in negotiations. For example, a daughter may want her father to take her to school by car instead of using public transportation, or a family may negotiate where to go on vacation. All of these needs and wants represent negotiations over controversial issues and usually lead to a more or less consensual outcome. Negotiations are interactions between two or more parties about a specific issue with the fundamental interest of the parties to reach an agreement. These are characterized by an envisaged reconciliation of interests and a negotiated outcome (Obrien, 2016). Negotiations are diverse, as all authors describe, and take place in every conceivable area of life (Helmold, 2018; Dathe & Helmold, 2018; Schranner, 2009; Obrien, 2016). Examples of negotiations are the following: