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Effective distribution bargaining is a process that require careful planning, strong execution & constant monitoring of other party reactions. Discuss?

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تاريخ النشر: 2016/03/15
Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

Distributive bargaining begins with setting opening, target, and resistance points. One soon learns the other party's starting points and his or her target points directly or through inference. Usually one won't know the other party's resistance points, (the points beyond which she or he will not go), until late in negotiation—they are often carefully concealed. All points are important, but the resistance points are the most critical. The spread between the parties' resistance points defines the bargaining range. If positive, it defines the area of negotiation within which a settlement is likely to occur, with each party working to obtain as much of the bargaining range as possible. If negative, successful negotiation may be impossible.

It is rare that a negotiation includes only one item; more typically, a set of items, referred to as a bargaining mix, is negotiated. Each item in a bargaining mix can have opening, target, and resistance points. The bargaining mix may provide opportunities for bundling issues together, trading off across issues, or displaying mutually concessionary behavior.

Under the structure of distributive bargaining, a negotiator has many options to achieve a successful resolution, most of which fall within two broad efforts: to influence the other party's belief about what is possible and to learn as much as possible about the other party's position, particularly about their resistance points. The negotiator's basic goal is to reach a final settlement as close to the other party's resistance point as possible. To achieve this goal, negotiators work to gather information about the opposition and its positions; to convince members of the other party to change their minds about their ability to achieve their own goals; and to justify their own objectives as desirable, necessary, or even inevitable.

Distributive bargaining is basically a conflict situation, wherein parties seek their own advantage—sometimes through concealing information, attempting to mislead, or using manipulative actions. All these tactics can easily escalate interaction from calm discussion to bitter hostility. Yet negotiation is the attempt to resolve a conflict without force, without fighting. Further, to be successful, both parties to the negotiation must feel at the end that the outcome was the best they could achieve and that it is worth accepting and supporting. Hence, effective distributive bargaining is a process that requires careful planning, strong execution, and constant monitoring of the other party's reactions. Finally, distributive bargaining skills are important when at the value claiming stage of any negotiation. This is discussed in more detail in the next chapter on integrative negotiation.

majid عبد الرؤوف محمد
من قبل majid عبد الرؤوف محمد , مراقب جودة , الشركه المصريه التجاريه واوتوموتيف

The piece is extracted Balbart private Nmbr piece-both on Haddah

Sidrah Nadeem
من قبل Sidrah Nadeem , Global Marketing Manager , Hill & Knowlton

Not my field of expertise, but I've learned enormously from Mr. Vinod.

Khalid Ghaffar
من قبل Khalid Ghaffar , Consultant for Business Development , Waters Corporation USA

Great Question !!!

 

For me the distributor bargaining is a gap which must be filled prior to recruit a distributor. Such bargaining  after recruitment of distributor simply add salt to the injury. Once I recruit the distributor I ask the following as business plan form Distributor and do the deep dive analysis prior to sign a contract.

  • Market size and expected market share
  • Distributor foot print, capability and required investment for the business
  • Voice of customer about the distributor team
  • Financial audit report
  • What distributor is gaining from the deal and how much he is willing to spend as marketing 
  • What he needs from me

 

Rami Abbas
من قبل Rami Abbas , Sales Manager , Al Houda Contracting and Real Estate Development

Unfortunately I don't have experience in the field, but Mr.Vinod answer covered the subject well.

Ahmed Mohamed Ayesh Sarkhi
من قبل Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

agree with mr. vinood answer

 

Emad Mohammed said abdalla
من قبل Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

i fully agree with the answers been added by experts....thanks.

Ghada Eweda
من قبل Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

II agree with the answer  given by Mr. Vinod Jetely.

 

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