Types of Negotiation Skills

Negotiation is a vital skill in today’s fast-paced business world. Whether you’re a seasoned executive or an entry-level employee, having the right negotiation skills can make all the difference in closing deals, resolving conflicts, and achieving your goals. But did you know that there are different types of negotiation skills? In this article, we’ll explore the various types of negotiation skills, their characteristics, and how to develop them.

Distributive Negotiation Skills

Distributive negotiation skills involve negotiating over a fixed pie, where one party’s gain is the other party’s loss. This type of negotiation is often seen in price negotiations, where the buyer wants to pay the lowest price possible, while the seller wants to get the highest price. To excel in distributive negotiation, you need to be able to:

• Make aggressive opening offers

• Use time to your advantage

• Make concessions strategically

• Use objective criteria to support your position

For example, let’s say you’re buying a car and the salesperson is asking for $25,000. You could make an aggressive opening offer of $20,000, knowing that the salesperson will likely counter with a higher price. You could then use time to your advantage by saying you need to think about it and will come back later. This gives you an opportunity to do some research and find out the car’s market value, which you can use as objective criteria to support your position.

Integrative Negotiation Skills

Integrative negotiation skills involve finding a mutually beneficial solution that satisfies both parties’ interests. This type of negotiation is often seen in business partnerships, where both parties want to work together to achieve a common goal. To excel in integrative negotiation, you need to be able to:

• Ask open-ended questions to understand the other party’s interests

• Identify creative solutions that benefit both parties

• Make joint decisions

• Use non-verbal communication to build trust

For example, let’s say you’re negotiating a contract with a supplier. Instead of focusing on the price, you could ask open-ended questions to understand the supplier’s interests, such as “What are your goals for this partnership?” or “What are your biggest challenges in working with customers like us?” This can help you identify creative solutions that benefit both parties, such as offering a long-term contract in exchange for a lower price.

Principled Negotiation Skills

Principled negotiation skills involve negotiating based on principles and standards, rather than personal interests. This type of negotiation is often seen in international diplomacy, where countries need to negotiate based on international laws and norms. To excel in principled negotiation, you need to be able to:

• Separate the people from the problem

• Focus on interests, not positions

• Generate options that satisfy both parties’ principles

• Use objective criteria to support your position

For example, let’s say you’re negotiating a trade agreement with a foreign country. Instead of focusing on your country’s interests, you could focus on the principles of free trade and fair competition. You could generate options that satisfy both countries’ principles, such as reducing tariffs on certain goods or implementing stricter labor standards.

Tactical Negotiation Skills

Tactical negotiation skills involve using tactics and strategies to gain an advantage in the negotiation. This type of negotiation is often seen in sales and marketing, where companies use tactics like scarcity and urgency to persuade customers. To excel in tactical negotiation, you need to be able to:

• Use anchoring to set the tone for the negotiation

• Use time pressure to create a sense of urgency

• Use scarcity to create a sense of exclusivity

• Use framing to influence the other party’s perception

For example, let’s say you’re selling a limited edition product. You could use anchoring by setting a high price for the product, knowing that the customer will likely negotiate it down. You could then use time pressure by offering a discount for a limited time, creating a sense of urgency. You could also use scarcity by highlighting the limited availability of the product, creating a sense of exclusivity.

Emotional Negotiation Skills

Emotional negotiation skills involve being aware of and managing your emotions during the negotiation. This type of negotiation is often seen in conflict resolution, where emotions can run high. To excel in emotional negotiation, you need to be able to:

• Recognize and manage your emotions

• Empathize with the other party’s emotions

• Use emotional labeling to diffuse tension

• Use open-ended questions to encourage emotional expression

For example, let’s say you’re negotiating a conflict with a colleague. You could recognize and manage your emotions by taking a deep breath and counting to 10 before responding. You could empathize with your colleague’s emotions by acknowledging their concerns and validating their feelings. You could use emotional labeling by saying “I sense that you’re feeling frustrated with this situation,” which can help to diffuse tension.

Creative Negotiation Skills

Creative negotiation skills involve thinking outside the box to find innovative solutions that satisfy both parties’ interests. This type of negotiation is often seen in product development, where companies need to find creative solutions to meet customer needs. To excel in creative negotiation, you need to be able to:

• Generate multiple options

• Identify mutually beneficial solutions

• Use brainstorming to encourage creative thinking

• Use prototyping to test and refine ideas

For example, let’s say you’re negotiating a contract with a supplier to develop a new product. You could generate multiple options for the product’s features and functionality, and then identify mutually beneficial solutions that meet both parties’ interests. You could use brainstorming to encourage creative thinking, and then use prototyping to test and refine the ideas.

FAQ

What are the most important negotiation skills?

The most important negotiation skills are distributive, integrative, principled, tactical, emotional, and creative negotiation skills.

How can I improve my negotiation skills?

You can improve your negotiation skills by practicing, seeking feedback, and learning from your experiences. You can also take courses or attend workshops to develop your negotiation skills.

What are some common negotiation mistakes?

Some common negotiation mistakes include making concessions too quickly, taking a hardline approach, and failing to listen to the other party’s interests.

How can I negotiate effectively in a cross-cultural setting?

You can negotiate effectively in a cross-cultural setting by being aware of cultural differences, being respectful and open-minded, and adapting your negotiation style to the local culture.

What are some negotiation strategies for women?

Some negotiation strategies for women include being confident and assertive, using collaborative language, and seeking support from colleagues and mentors.

Conclusion

Negotiation is a complex and nuanced process that requires a range of skills and strategies. By understanding the different types of negotiation skills, you can develop a more effective and adaptable approach to negotiation. Whether you’re negotiating a business deal, resolving a conflict, or simply trying to get a better price on a product, having the right negotiation skills can make all the difference.