Case Analysis : The And Procter And Gamble ( P & G. M. K. Fields

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While working as a general manger in a media agency called XAXIS, I have had many cases where negotiation took place, those were negotiations over price, contract, commission and many other issues related to digital advertising campaigns. One of the biggest negotiations that I had to go through while working there was a renewal contract of long-term conglomerate client called Proctor and Gamble (P&G). For many years, we have worked in partnership with this client with exclusive contract, which meant not to execute P&G competitors’ campaigns in our company. (See appendix 1) The negotiation was divided into a several stages, creating added value was one of the longest stages as it required a wide background information, market analysis and…show more content…
Before the formal negotiation processions took place we assumed information asymmetry and as such decided we needed to share more information. As part of our communication approach we set out to proactively promote learning through the broadest possible information exchange in all negotiations. Going in to the negotiation with the mindset to understand the other team’s interests would allow us to break down information asymmetries to enable good value based decision making. Win-win uses collaboration and communication to make resistance unnecessary (Falcao, 2010, p. 23). We were going to go into the negotiation with an open minded approach, fostering two way communication and showing that we were open to persuasion. Skilled negotiators are open to persuasion (Filip Hron, 2013, p. 53). This initial communication of a friendly nature allowed us to observe non-hostile behavior from our counterparts, building that bridge and strengthening the relationship.  Value Pursuit 3. Interests The problems started when P&G requested more commission bargaining, so-called using the win-lose approach. Our heretofore commission fee was such as market average 10 per cent for each campaign, the client unilaterally demanded to cut commission fee up to 8 per cent. The situation, not exactly same as Boulwarism case (Falcao, 2010, pp. 70-71), was a coercive attitude with “first, last and best offer” on a “Take-it-or-leave-it” basis. Client’s unilateral bargaining demand was

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