Page 247 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes An issue is a matter or question parties disagree about. Issues can usually be stated as
problems. For example, "How can wetlands be preserved while allowing some industrial
or residential development near a stream or marsh?" Issues may be substantive (related to
money, time or compensation), procedural (concerning the way a dispute is handled), or
psychological (related to the effect of a proposed action).
Positions are statements by a customer about how an issue can or should be handled or
resolved; or a proposal for a particular solution. A disputant selects a position because it
satisfies a particular interest or meets a set of needs.
Interests are specific needs, conditions or gains that a party must have met in an agreement
for it to be considered satisfactory. Interests may refer to content, to specific procedural
considerations or to psychological needs.

Settlement Options – possible solutions which address one or more customer's interests.
The presence of options implies that there is more than one way to satisfy interests.
The negotiator will need to select a general negotiation approach. There are many techniques,
but the two most common approaches to negotiation are positional bargaining and interest-
based bargaining. The list of reasons for choosing to negotiate is long. Some of the most common
reasons are to:
Gain recognition of either issues or customers;
Test the strength of other customers;

Obtain information about issues, interests and positions of other customers;
Educate all sides about a particular view of an issue or concern;
Ventilate emotions about issues or people;
Change perceptions;

Mobilize public support;
Buy time;
Bring about a desired change in a relationship;
Develop new procedures for handling problems;

Make substantive gains;
Self Assessment

Fill in the blanks:
4. Managers and ....................... must need to appropriate follow-up procedures and practices.
5. Negotiators must have Emotional .......................
6. Regional generalizations very often are not .......................

14.3 Cultural Differences

Cultural differences cause four kinds of problems in international business negotiations, at the
levels of:
1. Language

2. Non-verbal behaviours

242 LOVELY PROFESSIONAL UNIVERSITY