Negotiation Skills (Art of Negotiation).pptx

05/28/2025
Negotiation Skills
maysra.aburahal@gmail.com
1

05/28/2025
The Art of Negotiation
2 maysra.aburahal@gmail.com

Negotiation is a part of our daily
lives—we need it at home, at work,
in the market, and everywhere.
In short, it is any conversation you
have with another party where you
aim to persuade them or convey a
specific idea.
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Introduction

Negotiation is a fundamental skill in
human life—it is the tool that enables us to
achieve our interests and reach
compromises in various aspects of life.
Whether you are negotiating with family
members about daily decisions, colleagues
at work about projects, or even vendors in
the market to get the best deal, the ability
to persuade and convey ideas clearly plays
a crucial role in success.
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Negotiation is not just an exchange of words;
it is an art that requires a deep understanding
of the other party, a thorough analysis of the
situation, and a well-planned strategy to
achieve desired goals. So, how can we develop
this skill and make the most of it in our daily
lives? This is what we will explore in the
following lines.
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Negotiation primarily depends on the
availability of information to the parties
involved. A negotiator who possesses
more information is in a stronger position
and has a greater ability to steer the
course of the negotiation process.
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The negotiator defines the objectives
of the negotiation process as follows:
- Setting the minimum goals that
must be achieved and cannot be
compromised.
- Determining the maximum goals,
representing the highest possible
outcome that can be obtained.
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Although berries are among the most
expensive and beneficial fruits, you won't
catch a fish if you use berries as bait. Why?
Simply because fish do not feed on berries.
Just as you need the right bait to catch a fish,
you also need to present what others want
before expecting to achieve your own goals.
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Lloyd George, one of Britain's Prime
Ministers, once said that if there was a
reason for his continued hold on power,
it was his understanding of the
necessity of using the right bait for the
fish. In other words, he knew what the
voters wanted, understood their goals
and struggles, and persuaded them in
a way that suited their needs.
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Key Negotiation Skills:
1. Active Listening
Paying close attention to the other
party is essential for understanding
their perspective.
It demonstrates respect and helps
identify areas of agreement and
potential compromises.
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2. Clear Communication
The ability to express your ideas
clearly and concisely is crucial.
Effective communication ensures that
your message is understood and
helps prevent misunderstandings.
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3.Emotional Intelligence
Being aware of your own emotions
and those of others can help you
navigate difficult conversations and
build strong relationships.
Emotional intelligence allows you to
remain calm under pressure and
respond appropriately to signals of
understanding from the other party.
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4.Problem-Solving
Negotiation often involves finding
creative solutions to complex
problems.
Strong problem-solving skills
enable you to think critically and
explore alternatives that meet the
needs of both parties.
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5.Patience and Perseverance
Negotiations can be long and
challenging.
Patience and perseverance are
essential to staying focused
and working through obstacles
to achieve a positive outcome.
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6.Persuasion
The ability to convince others is
central to successful negotiation.
This involves presenting
compelling arguments,
leveraging the interests of the
other party, and persuading
them of the benefits of the
proposed solution.
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Persuasion Skills
:
Persuasion plays a fundamental role
in a person's success across various
aspects of life. Those with strong
persuasion skills tend to excel and
achieve greater success compared
to others.
Psychologist Robert Cialdini
identified six key principles that help
in influencing and persuading
others:
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The First Principle:
Reciprocity
People naturally tend to give when
they receive. When someone does a
favor for you, you often feel an
internal urge to return the favor in
some way.
How to use it? Give first before
asking for something, and make
your generosity unexpected so that
it has a greater impact.
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The Second Principle:
Consistency
People like to remain consistent with
their previous actions and decisions,
meaning they prefer a gradual approach.
How to use it? Ask for small
commitments before requesting larger
ones. For example, if you want a
customer to subscribe for a full year, first
convince them to pay for a one-month
subscription. Then, later persuade them
to switch to the annual plan.
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The Third Principle:
Scarcity
People tend to value things more when they
are in limited supply.
How to use it? Highlight what the person
might lose if they don’t engage with you or
delay their response.
Example: On the IDF learning platform, if you decide to
cancel your annual subscription, instead of offering you
special features or promotional deals to keep your
subscription, they take a different approach. They display an
imagined image of your certificate—cut in half—along with
multiple messages emphasizing the magnitude of the loss
you would experience after cancellation.
This technique is also known in User Experience (UX)
science as "Loss Aversion"—reducing your negative feelings
toward a particular experience by framing it in a way that
makes you reconsider your decision.
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The Fourth Principle:
Liking
People tend to respond more positively
to individuals they feel comfortable with.
How to use it? Compliment others before
making a request—but be sincere and avoid
flattery.
Mention specifically what you truly
appreciate about the person, whether it's
their way of thinking, their approach, or their
actions. Genuine praise fosters trust and
strengthens connections, making it more
likely for the other party to be receptive to
your request.
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The Fifth Principle:
Authority
People tend to listen to those who
have proven expertise and knowledge.
How to use it? Highlight and
demonstrate your experience,
certifications, or credentials before
attempting to influence others and
gain their attention. Establishing
credibility early on increases trust and
makes people more receptive to your
ideas and opinions.
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The Sixth Principle:
Social Proof
People often look at how others behave in
similar situations before making their own
decisions.
How to use it for influence? Show how
others have responded in the same situation.
For example, if you are selling a product in an
online store, display customer reviews and
testimonials about their experiences with
your product. Positive feedback from
previous buyers builds trust and encourages
new customers to follow suit.
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How to Improve Your Negotiation Skills:
1. Proper Preparation
Before entering any negotiation,
research the subject thoroughly,
understand your goals, and anticipate
the needs and objections of the other
party. Good preparation boosts your
confidence and positions you for
stronger negotiations.
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2. Practicing Active Listening
Focus on genuinely understanding the
other party's perspective.
Listen attentively and concentrate more
on hearing than speaking.
Show your understanding through
nodding and active responses.
This not only helps in finding common
ground but also builds trust and opens
opportunities for collaboration.
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3. Enhancing Communication Skills
Work on expressing your ideas clearly
and concisely.
Avoid vague terminology, be mindful
of your tone of voice, and ensure
your body language aligns with your
message.
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4. Developing Emotional Intelligence
Practice being aware of your
emotions and managing them
effectively during negotiations.
This will help you stay calm, respond
appropriately, and maintain a
positive atmosphere.
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5. Practicing Negotiation Scenarios
Engage in role-playing exercises to
simulate negotiation situations.
This helps you refine your skills in a
controlled environment and prepares
you for real-world negotiations.
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6. Seeking Feedback and Insights
After each negotiation, reflect on
what went well and what can be
improved.
Seeking feedback from colleagues
or mentors can provide valuable
insights into your negotiation style
and opportunities for growth.
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Why are negotiation skills important?
1. Achieving better results
Effective negotiators can secure
agreements that are more
beneficial, whether in business
deals, meeting discussions, or
personal conflicts.
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2. Conflict resolution
Strong negotiation skills help
resolve disputes amicably,
leading to solutions that satisfy
all parties and prevent future
conflicts.
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3. Building relationships
Negotiation is not just about the
outcome; it’s about the process.
Effective negotiators build trust
and rapport, strengthening
relationships and encouraging
collaboration.
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4. Career advancement
In the workplace, negotiation skills are
essential for professional growth.
Whether you are negotiating a raise,
managing a team, or closing deals,
these skills are key to career success.
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5. Boosting self-confidence
Mastering negotiation skills can
enhance your confidence in various
situations, empowering you to advocate
for yourself and make better decisions.
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Negotiation Techniques:
1. Pressure
This is the simplest approach and is more
like giving orders. It tends to be
aggressive and lacks understanding. It
usually occurs between two parties, one
of whom has higher authority. The
stronger party exploits the weaker party’s
lack of experience and vulnerability.
Example: A manager may listen to an
employee, but ultimately, they only
implement what they personally deem
appropriate.
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Negotiation Techniques:
2. Persuasion
This method is characterized by flexibility and
understanding. It usually occurs between two
parties of equal strength, with the goal of
exchanging benefits and achieving mutual
satisfaction.
Some of its strategies include:
•
Incentivization: "Do this, and you'll get a reward."
•
Fear appeal: "Do this because the boss needs it
urgently."
•
Gradual request: "Complete this step, then I'll ask
you for more steps sequentially."
•
Subtle messaging: "A crowded store in front of my
shop signals customer trust in my service quality."
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Negotiation Outcomes:
1. Win-Win Situation
A scenario where everyone benefits is
the result of a negotiation approach
that focuses on mutual gains. In this
case, parties work together to fulfill
interests and create more
opportunities for understanding.
When both sides are satisfied with the
agreement, the chances of long-term
success are significantly higher.
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2. Win-Lose Situation
In this scenario, there is a
limited number of resources or
goods to be divided, and one
party's gain directly translates
to the other party's loss.
It is an undesirable and often
forced situation.
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3. Lose-Lose Situation (No-Win Situation)
This refers to the outcome of negotiations,
disputes, or difficult circumstances where all
involved parties end up in a worse position
than before.
In a scenario where everyone loses, no one
achieves the desired results, and all suffer
negative consequences.
Arbitration or mediation is often used to
avoid such undesirable outcomes by finding
more satisfactory and fair solutions for all
parties involved.
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Example of a Lose-Lose Situation:
Two competing companies in the same
industry. Instead of cooperating or seeking
compromises, each company chooses to
completely eliminate the other from the
market. They both reduce their prices to
unprofitable levels, ultimately leading to
significant financial losses for both.
Outcome: Both companies lose substantial
profits, and may be forced to lay off
employees or even close some branches to
cover the losses.
Long-Term Impact: This negatively affects
the local economy, workers lose their jobs,
and consumers become less confident in
the products due to the intense
competition.
In the end, all parties find themselves in a
worse position than they were before
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The Art of Negotiation (Golden Rules):
1. Do Not Show Weakness
Negotiate as an equal and ensure that you
take control of the negotiation process.
Avoid statements like:
•"I won't receive my full salary if the
negotiations fail."
•"Failure will impact my awaited
promotion."
By maintaining confidence and control,
you strengthen your position and improve
your chances of reaching a favorable
outcome.
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2. Do Not Show Excessive Enthusiasm
Conceal your admiration for the service,
product, or offer presented by the other
party, no matter how appealing it may be.
Avoid statements like:
•"This offer is amazing!"
•"I've never received such a deal before!"
•"This product is one of a kind!"
By maintaining a neutral stance, you
prevent the other party from leveraging
your excitement to their advantage.
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3. Never Make the First Offer
Avoid raising the negotiation bar too
high, as you might present an offer
greater than what the other party
hopes for.
For example: If the other party asks
about the price, you are willing to pay
for a product or service, making the
first offer could result in suggesting a
price higher than what they were
initially considering.
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4. Never Accept the First Offer
The first offer is often the lowest
acceptable deal and provides minimal
benefit to the other party.
Avoid falling into this trap—even if the
first offer seems acceptable to you.
Example: The other party offers you a
product or service at a competitive and
satisfactory price. Show reluctance and
aim for a better deal, as maximizing
benefits is the essence of negotiation.
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5. No Compromising (No Free Gifts)
Maintain integrity—never offer an
unacceptable trade on behalf of your
company to close a deal, nor should
you seek personal benefits.
Example: Never ask the other party,
"What will you give me in exchange
for approving the deal?"
Doing so could jeopardize your
reputation and career stability.
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6. Don’t Negotiate!!
Yes… don’t negotiate if you’re not
required to.
Example: A client requests a service or
a solution to a problem, and the price
is non-negotiable. Proceed with
resolving the issue, ask for the agreed
compensation, and firmly state that
the price is final.
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7. Don’t Take Negotiation Personally
Negotiation consists of meetings and
discussions aimed at exchanging interests. It
may take place between two companies,
with you representing one of them. Don’t let
the other party distract you with personal
conversations.
Examples:
•Avoid accepting a personal dinner invitation
disguised as a business dinner unless your
company approves.
•Don’t let compliments from the other party
influence the direction of negotiations.
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8. Do Not Make Quick Decisions
Avoid being influenced by pressure from the
other negotiator, such as statements like: "This
offer is only available for a limited quantity" or
"It will expire within a set period."
Your response can be:
•
"I need time to get approval from senior
management."
•
"I require time to think and make a decision."
•
Or, even stronger: "I will take my time to
compare all offers available to me."
This approach ensures that you make well-informed
decisions without succumbing to undue pressure.
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9. Listen and Pay Attention
Showing interest in the other party
and focusing on what they say is a
crucial way to understand their
perspective, gain their goodwill, and
earn their respect.
It also helps build effective bridges
of understanding and shortens
negotiation time.
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Negotiation Process Steps:
.1Before starting a negotiation, it’s
essential to define:
The Goal
Know your negotiation objective, the ideal
outcome that represents your highest
ambition, and the minimum acceptable result.
The Location
Negotiating at your own site indicates the
other party’s interest in closing the deal and
gives you a psychological advantage.
The Timing
Timing matters—if you’re a sales
representative, avoid negotiations at the end
of the month, as this might put you under
pressure to meet your sales target.
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Negotiation Points
Define and prioritize negotiation
points based on their importance to
you.
Example: Quality, price, payment
facilitation, and warranty duration.
Gathering Information
Understanding the other party
thoroughly—their capabilities,
strengths, and weaknesses—gives you
an advantage during negotiation.
Questions
Rely more on open-ended questions
to uncover all relevant details during
the negotiation process.
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Negotiation Leadership
For both parties, determine whether
the negotiator is an individual or a
team and assess the level of
authority granted to them.
And finally… Negotiation Tricks:
These are the tricks of negotiation
that can enhance the chances of
reaching a favorable agreement.
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Negotiation Tricks:
1. Pressure Cards
Expressing urgency, being busy, showing a
lack of enthusiasm, or setting a time limit on
the presented offer can pressure the other
party into making concessions.
2. Exaggeration
Responding to the first offer with a
significantly different price and then gradually
negotiating towards a more acceptable price.
Be careful: Avoid saying, “Let’s split the
difference between the two offers/prices,”
because the other party is likely to respond
with a counteroffer closer to their original
price.
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For Example :
If the other party offers a product at 100
Pounds, and your response is 50 Pounds, but
they reject it—
If YOU suggest a middle price, such as 75
Pounds, they will likely use that against you
and counter with 80 Pounds!
However, the reverse approach is more
effective—
If THEY suggest 75 Pounds, you can counter
with 70 Pounds, making the negotiation work
in your favor.
This way, the difference of just 5 Pounds
won’t have a significant impact on them, but
it will give you an advantage in maintaining
control over the price discussion.
05/28/2025 53

Negotiation Tricks:
3. Cherry Picking
This technique involves selecting the best
advantages from all presented offers and
combining them to achieve the maximum
benefits during negotiations.
4. Higher Authority
If you want to end negotiations or need
higher-level support when reaching a
deadlock, it’s time to say: "I will refer this
to senior management."
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Negotiation Tricks:
5. Good Guy and Bad Guy Strategy
When negotiating as a team, one member takes on a
friendly and cooperative approach, while the other
remains firm and unyielding. This contrast can pressure
the other party into making concessions.
6. Blocking Opportunism
After reaching an agreement, the other party may
attempt to gain additional benefits. To prevent this:
•Ensure that the terms of the agreement are clear,
preferably written and officially approved.
•If asked for extra advantages, respond confidently:
"Providing this additional benefit is beyond my
authority”.
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Negotiation Tricks:
7. Blocking Drain Tactics
Conversely, after an agreement is finalized, the
other party may attempt to withdraw the offer
or demand additional concessions. In such cases,
it is essential to firmly reject any further changes
and adhere strictly to the agreed-upon terms.
8. The Red Herring Trick
Historically, the smell of fish was used to distract
hunting dogs. In negotiations, this strategy is
sometimes employed to lighten the atmosphere
and reduce pressure by shifting attention away
from the main negotiation topic.
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Negotiation Tricks:
9. Delay and Frequent Interruptions
The other party may try to pressure you by arriving
late or frequently interrupting your speech,
intending to unsettle you. Stay calm and respond
confidently by ending the negotiation and setting a
more suitable time later.
10. Intentional Information Trick
This involves subtly conveying a piece of
information that aids your negotiation, making it
appear unintentional.
Examples:
•Deliberately leaving a document with key
information visible on your desk in front of the
other party.
•Speaking loudly on the phone with a colleague,
ensuring the conversation contains details that the
other party overhears.
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Negotiation Process:
2. During Negotiation:
Focus on two key principles:
First: Emphasize Service Value, Not Price
Communicate the high quality of the service rather
than highlighting the price alone. Even if the price is
not the lowest in the market, underscore the
superior value your service offers.
Second: Facilitate Payment
Ensure the amount paid feels manageable in relation
to the value provided. This principle is often applied
through installments or special offers to make
payments more convenient for the customer.
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Important Tips:
Pay Attention to Your Performance During
Negotiation
•Maintain a Relaxed Yet Upright Posture:
Sit straight, avoid interlocking your fingers, and minimize
body or foot movements.
•Control Your Voice Like a Conductor:
Speak with a slightly elevated, firm tone when necessary.
•Make Clear Eye Contact:
Keep your gaze confidently locked on your negotiator’s
eyes—without excessive boldness that feels like a
challenge.
•Firm Handshake:
Shake hands with an acceptable level of firmness in a
straight manner. Don’t allow the other party to initiate or
position their hand higher than yours.
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Negotiation Process:
3. After Negotiation and Closing the Deal:
Congratulate and Offer a Gift
If you are the service provider, offering a
small gesture of appreciation can encourage
client loyalty, attract new customers through
recommendations, and strengthen your
reputation in the market.
A simple, thoughtful act can leave a lasting
impression that goes beyond the transaction
itself!
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In Conclusion:
Negotiation is the process of completing a deal
that ensures mutual benefit between two parties
or partners.
Mastering negotiation techniques helps in
achieving favorable outcomes while maintaining
strong professional relationships.
Absolutely! Negotiation is about finding mutual
benefit and reaching agreements, not turning
discussions into conflicts. Keeping the process
professional, respectful, and strategic ensures
positive outcomes for both parties
.
Mastering negotiation techniques helps in
fostering collaboration rather than confrontation
.
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05/28/2025
62 maysra.aburahal@gmail.com

Negotiation Skills (Art of Negotiation).pptx

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