Negotiation is a process by which people reach a compromise or agreement while avoiding disputes and differences in order to obtain the best possible outcome for their position.

Negotiation is an interactive process between two or more parties or negotiators. They seek to find common ground on issues of common interest. The aim is to reach a mutually acceptable agreement that will be respected by all. The principles of fairness, mutual benefit and maintaining a relationship are the keys to a successful outcome.

In a business-to-consumer (B2C) relationship, negotiation is very different from marketing and sales. The main difference is that marketing consists of making the product, services or company known. Selling is about convincing the other person to buy the product or service. Negotiation normally follows sales, and sales follows marketing.

Negotiation is the key to making progress in the workplace, resolving conflicts and creating value in contracts. It can help foster collaboration, strengthening the bond between marketer and customer. Effective negotiation requires the marketer to listen carefully. Effective listening enables you to identify the customer’s needs.

When negotiating a marketing contract, a marketing specialist asks pertinent questions. This helps to determine the results the customer wants. Clarifying needs also enables the marketer to provide quality solutions.

A marketer with strong communication skills also gains a more detailed understanding of customer needs. They are therefore able to create personalised solutions to increase customer satisfaction. The marketing manager is also able to correct any doubts the customer may have.

Strong negotiating skills are useful when discussing prices with suppliers. You can increase your profits by reducing purchasing costs. This can involve buying media, publishing sponsored posts, buying advertising, etc.

Negotiation styles or behaviours are modes of communication used in a negotiation situation to achieve a desirable outcome. There are five main negotiating styles:

Successful negotiations often involve one or more of these different negotiating styles. A multi-party approach is a type of agreement in which more than two parties seek to reach an agreement. An example of a multi-party negotiation is a negotiation between several heads of department in a large company.

In a team negotiation, several people negotiate an agreement. Team negotiations are common in large commercial contracts. There are several personality roles in a negotiating team. In some cases, one person may play more than one role.

Interest-based negotiation uses the principles and interests of the parties to reach an agreement. This type of negotiation often focuses on conflict resolution. It is based on an integrative cooperative approach to serve the interests of both parties.

Positional negotiation involves clearly stating the position you are defending from the outset. Then you defend that position against the attack. It may not take into account the interests of the other party, or it may not see what the other party is getting at. This is not considered to be very productive.

Distributive bargaining is where two parties negotiate over a single product or issue, such as price.

Selling involves persuading a prospect to buy a product or service. A typical sales transaction involves the salesperson communicating the value and interest of their solutions to persuade a potential buyer.

The practical definition of selling can vary depending on the sector, the customers you sell to and the sales approach you use.Selling is about developing and maintaining positive, ongoing relationships. Negotiation can be a one-off issue that only arises at the start of a new relationship.

Firstly, selling consists of giving value to your offer. Negotiation takes place when you enter into a dialogue with your customer. The aim is to reach an agreement on the conditions under which you will supply the product or service. This means that both parties must want to reach an agreement. They both have a mandate to change the conditions.

Selling is a process whereby the seller identifies how the proposed solutions meet the buyer’s needs. Negotiation, on the other hand, is the process by which the two parties agree the terms of a deal.

To find out more, read our FAQs on commerce.

Commercial negotiation is one of the most stressful and potentially anxiety-provoking elements of sales. Each one requires a great deal of preparation, empathy, insight and a willingness to compromise strategically.

Composure is essential when negotiating. If you get angry or frustrated, you risk putting off potential customers. When negotiating with your customers, you can opt for a hard or soft selling approach.

Your choice depends on a number of factors, such as the type of product and your sales priorities. Commercial negotiation training can teach you when to use the aggressive or soft selling approach.

There are two main ways to become an expert negotiator and salesperson:

– experience in the field. Trying, making mistakes, failing, trying again, succeeding. And do it over and over again to improve.

– do a course in sales or customer marketing. INSEEC offers many courses specialising in sales. What’s more, the negotiation and sales module is part of the compulsory core curriculum for all courses, regardless of their specialisation.

You can take a sandwich course at the INSEEC business school to learn how to optimise a sales negotiation and combine theory and practice.