Page 62 - DMGT525_MATERIALS_MANAGEMENT

Dilfraz Singh, Lovely Professional University
Unit 5: Negotiation

Unit 5: Negotiation Notes

CONTENTS
Objectives
Introduction

5.1 Meaning of Negotiation
5.2 Objectives of Negotiation
5.3 Techniques of Negotiation

5.4 Negotiator
5.4.1 Qualities of a Good Negotiator
5.5 Tactics and Strategies in Negotiation
5.5.1 Factors Influencing Tactics
5.5.2 Preparation for Negotiation

5.6 Phases of Negotiation
5.7 Request for Quotation (RFQ)
5.8 Summary

5.9 Keywords
5.10 Review Questions
5.11 Further Readings

Objectives

After studying this unit, you will be able to:

 Explain the Meaning of Negotiation
 Discuss the Objectives of Negotiation
 Explain the Techniques of Negotiation

 Define the Negotiator
 Discuss the Tactics and Strategies of Negotiation
 Describe the Phases of Negotiation
 Explain the Concept of RFQ

Introduction

In the previous unit we dealt with the objectives and functions of purchasing department. The
unit also discussed about the purchase policies and procedures. This unit will help you to further
your knowledge about negotiation in purchasing process. The various section and sub section of
this unit will also summarize the techniques and tactics of negotiation.
Negotiation is, indeed, a battle of wits and an Art of embodying sophisticated tactics and
maneuvers by both the buyer and the seller. Normally buyers should not be opportunist and try

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