I worked for a marketing business, and I was responsible for meeting with a major retail chain that was one of my firm’s clients to discuss the goals and budget for an upcoming advertising campaign. The client, represented by the head of marketing and finance, desired to attract new customers and increase revenues at their physical locations. During this stage, essential themes were negotiated, such as the scope of the campaign, the overall budget, and the techniques that would be used to reach the target audience. The customer wanted to receive marketing materials through digital and traditional channels, such as social media ads and email newsletters. They did, however, have a limited budget and were attempting to keep expenses to a minimum. It was critical to maintaining the agency’s high output and client satisfaction standards. We needed to ensure we were adequately compensated for the work we would be doing, so that was something to keep in mind. I informed the customer that several suggested marketing methods would necessitate a larger budget and that the campaign could only be effectively executed with the necessary resources. Without adequate funding, I emphasized how difficult it would be to carry out the campaign properly.
After some deliberation, we agreed on a budget that satisfies both sides and a strategy that incorporates both digital and traditional marketing approaches. We were granted the go-ahead to proceed with the campaign once the client approved the completed work. The client and the agency profited from the fruitful discussions that resulted from this arrangement. The client received the agreed-upon scope of work, and the agency was adequately reimbursed.
In this case, success will be measured by our ability to find a way forward that meets both parties’ needs and improves their situation. Priority is given to connection building, trust formation, and bargaining from shared interest positions (Shell, 2006). My approach to negotiation in this scenario is either interest-based or principled. This approach prioritizes two-way dialogue, attentive listening, and compromise to reach a mutually beneficial outcome (Sigurðardóttir et al., 2019). In this case, my strategy would involve learning about and respecting the client’s preferences and constraints while protecting the agency’s interests. However, my approach may vary depending on the context. The consumer may have been using positional bargaining, an approach to negotiation in which one party tries to retain a fixed position or demand (Steinel & Harinck, 2020). In contrast, the other party tries to persuade them to change their mind. Their first goal was to find the most affordable rate for the campaign, but after some back-and-forth and an appreciation for the agency’s perspective, they were able to come to an agreement that worked for everyone involved.
Based on my counterpart’s communication, attitude, and behavior, I might have taken a somewhat different strategy had I been negotiating the same issue with someone else. I would still try to achieve a win-win solution, but my communication style and strategy would shift depending on the other party’s stance. One of the most important aspects of bargaining is learning to read the other side’s negotiating tactics and adapting your plan accordingly. Understanding one’s negotiation style and being able to identify and adapt to the styles of others are both necessary for improving one’s effectiveness and efficiency.
In conclusion, we employed a principled or interest-based approach to negotiation, which involves open dialogue and accommodating both sides to create a win-win agreement. The method may change based on factors such as the situation and the other side’s tactics, deeds, and attitudes. Therefore, understanding one’s negotiation style and being able to adapt to the styles of others are both crucial to achieving a win-win outcome in every negotiation.
References
Shell, G. R. (2006). Bargaining for advantage: Negotiation strategies for reasonable people (2nd ed.). New York, NY: Penguin.
Sigurðardóttir, A. G., Hotait, A., & Eichstädt, T. (2019). Buyer and seller differences in business‐to‐Business negotiations. Negotiation Journal, 35(2), 297–331. Web.
Steinel, W., & Harinck, F. (2020). Negotiation and bargaining. Oxford Research Encyclopedia of Psychology. Web.