UNIT 5

Communication Systems:

 Communication systems is the process of handling written or verbal

messages.
 Communications networks or communication channel can be as
simple as writing a letter or talking to somebody.
 However, it can also involve advanced computer systems and even
satellites.

Effective communication is essential for businesses to achieve their goals,

and it involves much more than just transmitting messages.

Definition of business communication

According to Mary Ellen Guffey, “Business communication is the process

of creating and conveying a message that is meaningful to the sender and
the receiver with the purpose of achieving a desired outcome.”

As defined by Murphy and Hildebrandt, “Business communication is the

sharing of information between people within and outside an organization
for the purpose of achieving organizational goals.”

Communication systems are defined as the interchange of information or

ideas between two entities.

The process of communication systems involves the exchange of both

formal as well as informal information, and it consists of receiving,
sending, and processing information.

It may take place between employees and supervisors within the business
or outside the business. It can be written, visual, verbal, or non-verbal.

The objective of the communication process is the exchange of ideas,

convey of information, and understanding other entities.

Therefore information is passed from one place to the other that is from
the receiver to the sender.

There are several elements involved in the process of communication

systems. The ultimate objective, however, remains to pass information
from the sender to the receiver.

The goal of business communication

The goal of business communication is to convey messages in a clear,
concise manner to achieve specific objectives, such as increasing
revenue, enhancing customer satisfaction, improving employee
engagement, or building a positive brand reputation.

Need for business communication

The need for business communication is to establish and maintain

relationships with stakeholders, make informed decisions, manage
conflicts, promote a positive organizational culture, and contribute to the
success and sustainability of the business.

Nature of business communication

The nature of business communication is dynamic and interactive. It

involves the exchange of information, ideas, and messages through
various channels, such as verbal, written, digital, and nonverbal, and
requires both sender and receiver to be actively involved in the
communication process.

Characteristics of business communication

In today’s business scenario business communication can take various

forms, including verbal, written, or digital communication. Therefore it is
important to keep in check the several features of business
communication that make it unique and important for achieving
organizational goals.

 Goal-oriented: Business communication is purposeful and directed

towards achieving specific objectives.

 Formality: It generally follows a formal and structured tone, with

attention given to language, tone, and etiquette.

 Clear and concise: Effective business communication is clear and

concise, avoiding unnecessary jargon or complexity.

 Audience-specific: Successful business communication, consider the

requirements, preferences, and expectations of the target audience.

 Documented: Business communication is often documented in

writing, whether in the form of emails, memos, reports, or other
written materials.

 Two-way process: Business communication involves a two-way

process of sending and receiving information, where feedback is
encouraged.

Objectives of business communication

The primary objectives of business communication are to inform,
persuade, build relationships, foster collaboration, and manage
reputation. In this section, we will explore six primary objectives of
business communication:

1/ To inform: Business communication aims to provide relevant and

accurate information to the intended audience, whether it’s customers,
employees, or stakeholders.

2/ To build relationships: Business communication plays a crucial role in

establishing and preserving connections with clients, staff, and additional
stakeholders.

3/ To promote goodwill: Business communication also serves as an

objective to enhance the reputation of the organization and its offerings
by portraying a favorable image.

4/ To gain Feedback: Business communication also serves as a means for

receiving feedback from stakeholders.

5/ To persuade: Another objective of business communication is

to influence stakeholders to take a specific course of action or embrace a
particular perspective.

6/ To foster collaboration: Business communication is essential for

fostering collaboration among team members and departments.

Types of business communication

The most common types of business communication include:

1/ Internal communication: is a type of communication that occurs within
an organization and involves communication between employees and
other stakeholders such as shareholders, suppliers, and customers.
Internal communication can further be divided into four board categories:

 Upward Communication: This type of communication involves

information flowing from subordinates to superiors. It is often used
to provide feedback, suggestions, or updates on the progress of a
project.

 Downward Communication: This kind of communication refers to the

sharing of information from top-level authority to lower-level
employees. It is usually done to give directions, comments, or
advice about particular projects.

 Lateral/horizontal communication: This form of communication

concerns the exchange of information between people or groups
who hold the same rank or position in an organization. It is
commonly utilized to exchange concepts, collaborate on tasks, or
settle disputes.

 Diagonal communication: This form of communication occurs among

individuals or departments occupying different levels within an
organization, yet not in a direct hierarchical relationship.

2/ External communication: This kind of communication happens when

the company interacts with people or organizations outside of it, such as
customers, suppliers, investors, and the media. It involves sending
messages about the company’s products or services, persuading people
to buy them, managing the company’s image, and more.
3/ Formal communication: The formal form of communication is
structured communication which is frequently recorded for future
reference. It encompasses reports, memos, letters, and official
communications within the company.

4/ Informal communication: This type of communication does not

follow a predefined structure or format and is often verbal. Informal
communication in the workplace includes conversations, emails, and
social interactions among employees.

Example of business communication

1/ Chat message between team members: “Hey guys, just a quick

reminder that we have a meeting at 2 pm today. Please make sure to
review the agenda and come prepared. See you there!”

2/ Memo from HR department: “To all employees, We are pleased to

announce that the company will be offering a new health insurance plan
starting next month. Please see the attached document for more
information and instructions on how to enroll. Best regards, HR
department.”

3/ Email from a manager to their team: “Dear team, I wanted to remind

everyone of the upcoming project deadline. Please make sure to complete
your tasks and submit your work by Friday at 5 pm. Let me know if you
have any questions or concerns. Thanks, John.”

4/ Social media post from a company: “Exciting news! Our new product
line is now available online and in stores. Check it out and let us know
what you think!”

5/ Thank-you letter from a business owner to a customer: “Dear Ms.

Johnson, I wanted to personally thank you for your recent purchase and
for being a loyal customer. We value your business and appreciate your
support. Please let us know if there is anything else we can do to serve
you better. Sincerely, Jane Doe, Owner.”

Methods of communication in business

Different methods of communication that businesses use to convey their

messages, share information, and collaborate with others.
1/ Verbal communication: This is the most common method of
communication and involves speaking to an employee in person or over
the phone. It is useful for conveying information quickly and getting
immediate feedback.

2/ Written communication: The written method involves conveying

information in writing, such as through emails, memos, reports, or letters.
It is useful for conveying detailed information and maintaining a record of
communication.

3/ Digital communication: This method involves the use of technology

to communicate, such as through video conferencing, instant messaging,
or social media. Digital communication is also beneficial for
communicating with teams in remote locations.

4/ Non-verbal communication: This approach entails communicating

information through nonverbal cues such as body language, facial
expressions, and tone of voice. It is useful for conveying emotions and
attitudes and can complement verbal communication.

5/ Visual communication: Businesses often use visual aids for

conveying information through images, such as graphs, charts, or videos.
It is useful for presenting complex information or business data in a simple
and easy-to-understand format.

6/ Mass communication: This method involves communicating with a

large audience, such as through advertising, public relations, or marketing
campaigns. It is useful for reaching a wide range of stakeholders and
promoting the organization’s brand and reputation.

7/ Interpersonal communication: This method involves communication

between individuals in a face-to-face setting. It is useful for building
relationships and fostering collaboration within the organization.

Characteristics of business communication

Characteristics of Business Communication

It’s crucial to understand the characteristics of good business

communication in order to implement it efficiently. Given below are such
features that make business communication different from any normal
conversation.
1) Business communication is formal:

The nature of business communication is formal most of the time. There

are instances when it might take an informal turn. Otherwise, it mostly
remains formal with a predefined structure to communication including
organization hierarchy, means of communicating information, specific
time, etc.

It helps businesses adopt a systematic approach to how people

communicate for maximum discipline and positive outcomes, alongside
other merits of formal communication.

2) Objective or Goal-Oriented:

As stated previously, business communication comes with short- and long-

term goals. This purpose is subject to change as and when the business
grows. The object plays a vital role in initiating communication and
remains the nucleus of the entire process.

Any business communication without a goal or an object proves to be

meaningless and leads nowhere. It’s thus important to clarify the intent of
the communication beforehand to avoid the wastage of time and other
resources.

3) Brief, Clear, and Factual:

Another feature of business communication is that it’s clear, concise, and

does not beat around the bush. This is necessary for the receiver to
understand the information without any failure/hindrance and provide the
right feedback in turn. A crisp and brief message also helps save time and
achieve the desired goal successfully.

Besides being clear about the message, it’s important to be clear about
the communication channel and other elements to avoid any confusion.
All the required details must be covered in the message, especially
figures, statistics, time, place, names, and so on.

4) Dynamic and Continuous:

A striking quality of good corporate communication is that it is dynamic in

nature. The tone and speaking style change as per the elements in the
communication process. For example, a manager communicating with a
subordinate might adopt an instructive style. On the other hand, when
with an executive, the manager might stick with a more courteous tone.
The term “continuous” means that as soon as one line of business
communication gets completed, another is initiated. For example, holding
meetings for different projects, creating new strategies timely, etc.

5) Internal or External:

Internal business communication means sharing of information within an

organization. This includes all the activities taking place within the
physical bounds of an organization. For example, administrative and
managerial tasks, meetings, training, interviews, planning, and so on.

External business communication, on the other hand, refers to the

communication that takes place outside an organization. Client pitches,
meetings with legal advisors and other experts, government-related tasks,
customer interactions, groundwork, and physical labor fall under external
business communication.

6) Persuasive and Pervasive:

The sender must have the qualities of a good communicator

because business communication is essentially persuasive. It’s meant to
convince the receiver and introduce assurance, especially when dealing
with customers or clients. However, that does not mean one needs to
manipulate the information; it’s not intended to “impress” someone.

Processes of communication are inevitable in business and thus,

pervasive. They can be found everywhere, between employees,
managers, and executives. It’s impossible for a business to exist without
proper communication.

7) Practical and Unbiased

For any business communication to be effective some principles are to be

followed. Thus it’s crucial to remain unbiased and prevent one’s personal
feelings from affecting the communication. Any unnecessary information
should be avoided and only relevant details must be shared.

Business communication is vital for explaining the “whats”, “whys”, and

“hows” of various procedures and is thus practical in nature.

The 7Cs in business communication are a set of principles that guide

effective communication in a professional setting. These 7Cs are as
follows:
 1. Clarity: The message should be easy to understand and free from
any ambiguity or vagueness.
2. Concise: The message needs to be short and direct, without any
extra information.
3. Complete: The message should provide all the necessary details
and information required by the recipient.
4. Correct: The message should be accurate, error-free, and factually
correct.
5. Courteous: The message should be polite and respectful, and avoid
any offensive or negative language.
6. Concrete: The message should be specific and provide concrete
details, rather than vague or abstract statements.
7. Considerate: The message should take into account the needs and
interests of the recipient, and be tailored accordingly.

By following these 7Cs, businesses can ensure that their communication is

effective, efficient, and professional, and helps to build strong
relationships with customers, clients, and other stakeholders.

Elements of business communication

The elements of business communication are the fundamental

components that make up effective communication in a business setting.
These elements include:

1/ Sender: The individual or organization that starts the communication

process by generating and sending a message.

2/ Message: The information, ideas, or thoughts conveyed by the sender

through various channels such as written documents, verbal exchanges,
or multimedia.

3/ Channel: The methods utilized for transmitting the message, such as

face-to-face discussions, telephone calls, electronic mail, or social media
networks.

4/ Receiver: The person or entity who receives the message and

interprets it.

5/ Feedback: The reply or feedback provided by the recipient to the

message, which can be expressed either verbally or through nonverbal
cues.

6/ Context: The circumstances or situation in which the communication

takes place, including the physical, cultural, and social environment, as
well as any external factors that may affect the message’s reception and
interpretation.
7/ Encoding: The process by which the sender transforms the message
into a suitable form for transmission, such as through language, symbols,
or gestures.

8/ Decoding: The process by which the recipient comprehends the

message and assigns meaning to it, based on their own knowledge,
experiences, and cultural background.

9/ Noise: Any external or internal factors that interfere with the effective
communication of a message. Noise can take various forms and may
include physical barriers, psychological barriers, or semantic barriers

By understanding and applying these elements of business

communication, organizations can improve their communication
effectiveness, enhance relationships with stakeholders, and achieve their
business objectives.

Process of business communication

 Planning: Determining the purpose, audience, and key message of

the communication, as well as the appropriate channel and timing.

 Composing: Creating the message, including selecting appropriate

language, tone, and format, and organizing the information in a
clear and concise manner.

 Sending: Transmitting the message through the chosen channel,

such as email, phone call, or face-to-face conversation.

 Receiving: The recipient receives the message and decodes it,

interpreting its meaning and relevance.

 Understanding: The recipient understands the message and its

intended meaning, which may involve seeking clarification or
additional information if needed.

 Responding: The recipient provides feedback or responds to the

message, either verbally or in writing.

 Evaluating: Reflecting on the communication and assessing its

effectiveness, including any areas for improvement or opportunities
for further engagement.

Importance of Business Communication

Reasons why business communication is highly significant:

1) Assist in Decision-making:

Without proper and timely information, it’s challenging for the managerial
staff to take the right decisions and lead the project forward. Effective
business communication helps collect opinions and suggestions necessary
for decision-making. It aids in forming new plans and policies, as well as,
updating the existing ones to achieve goals and earn success.

2) Solves Problems and Eliminates Misunderstandings:

Business communication teaches the senders and receivers proper

communication skills. Everyone in an organization learns to communicate
clearly and completely, as well as listen attentively. As a result, they gain
a thorough understanding of the situation and can take the required
action without any failure.

Effective business communication is essential in solving problems and

eliminating misunderstandings, and a well-developed business
communication skill set is crucial for achieving success in today’s
competitive business environment.

3) Maintains Customer and Industrial Relations:

The significance of business communication lies in the strengthening of

the internal and external relations of an organization. Be it building trust
between workers, employees, management, and executive or between a
company and its customers/clients. Business communication promotes
fair and recorded interactions to simplify sharing of information.

This way, better teams are built that work on the core values of
cooperation and coordination to achieve maximum efficiency.

4) Increases Employee Satisfaction and Efficiency:

Business communication offers scope for an upward flow of sharing

information, which provides employees the freedom to initiate
communication. They can connect with their superiors with much ease
and express their thoughts, takes, opinions, and feedback to the
management.

Downward business communication helps the employees to understand

various procedures and processes through management’s instructions
and guidelines. Lateral or horizontal communication allows them to
hold informal conversations, promising a change from monotonous
working lifestyles.

Purpose of Business Communication

Let’s look at the main objectives of business communication:

1) Instruction and Direction:

Business communication aims to provide instructions to subordinates. The

higher-level staff gives out commands and directives to complete a task
within a certain period.

2) Persuasion and Influence:

Business communication, as mentioned previously, is meant to persuade

and win deals. It’s necessary for the growth of a business by landing more
customers and building its clientele.

3) Exchanging Information and Facts:

The only way to share information within an organization is through

business communication. It assists in informing employees about their
daily tasks, providing feedback, getting updates, etc. By communicating,
managers of various departments can work together on a single project
and integrate their inputs to gain the desired outcome.

4) Employee Orientation:

New interns and employees can be acquainted with the company’s

infrastructure, staff, and work through business communication. Be it
allocating their first tasks, holding counseling sessions to get them
started, or evaluating their performances. Business communication is the
backbone of connecting employees with their workplace.

Role of Manager in effective business communication

The role of the manager in effective business communication includes the

following:

1/ Internal marketing is an important aspect of good business

communication. Managers should ensure that employees’ well-being and
work satisfaction are taken care of.

2/ Managers should keep track of changes in society and the ever-

changing business environment to reflect these changes in
communication processes within the business.
3/ Managers may have to work with difficult or unmotivated people, but
with the right tools and effective communication principles, they can
develop key business relationships in the workplace.

4/ Communication skills are essential for any management position as

managers often have to deal with relational complexities involved in
overseeing projects and directing a diverse group of individuals.

For instance, the manager may need to provide constructive feedback on

an employee’s work performance, while on other occasions, they may
have the opportunity to commend and acknowledge another employee’s
exceptional performance.

According to the Harvard Business Review, 72% of employees believe

that their performance could be enhanced if their managers offered
corrective feedback, also referred to as “negative” feedback.

Barriers to business communication

Obstacles that block the smooth transfer of information and ideas

between individuals or groups operating within a business context are
known as barriers to business communication. These barriers can also
lead to miscommunication and poor communication within the business.
Some common barriers to business communication include:

1/ Language differences: This is a common barrier in businesses where

employees come from diverse backgrounds and speak different
languages. Communication can be difficult when individuals do not speak
the same language.

2/ Cultural differences: Cultural differences can also create barriers to

business communication. Different cultures have their own norms, values,
beliefs, and communication styles, this can lead to misunderstandings and
conflicts in the workplace.

3/ Physical distance: When individuals are located in different regions,

countries, or time zones. Then real-time communication and coordination
of meetings and business events may become challenging.

4/ Distractions: Distractions such as noise, interruptions, and technology

can also create barriers to business communication. These distractions
can lead to a lack of focus and attention, which can result in
miscommunication or missed messages.

5/ Lack of attention or interest: Sometimes employees may not be

interested or invested in the communication taking place, leading to a
lack of engagement or participation. Lack of interest can also affect the
quality of work produced by employees reducing overall work efficiency.
6/ Emotional barriers: Emotional barriers such as fear, anger, or anxiety
can also prevent effective communication. When executives are
emotional, they may not be able to communicate effectively in various
business scenarios such as business meetings or in-person
communication.

7/ Technical difficulties: Technical difficulties refer to problems with

technology or equipment used for communication in an organization This
can make communication difficult and frustrating, leading to
misunderstandings and errors.

Importance of business communication ethics

Business communication ethics is important because it helps to establish

trust, credibility, and accountability in business relationships. It is
important to uphold these ethical standards to ensure that information is
shared truthfully, transparently, and with integrity.

By doing this, a company can prevent misunderstandings, disputes, and

legal problems that could harm its reputation and financial
performance. In addition, ethical communication fosters a positive
corporate culture, improves employee morale, and builds strong
relationships with customers and other stakeholders.

Business communication skills

Business communication skills refer to the abilities that individuals and

organizations use to effectively convey information, ideas, and messages
in a professional context.

These skills may include written communication, such as email, reports,

and proposals, as well as verbal communication, such as presentations,
meetings, and negotiations. Having good communication skills is vital in
establishing robust connections with clients, staff, and stakeholders.

It also plays a critical role in encouraging cooperation and teamwork

within an organization. In fact, the National Association of Colleges and
Employers discovered that 73% of employers value employees who
possess robust written communication abilities.

Examples of important business communication skills include:

 Active listening,
 Clarity of expression,
 Persuasion,
 Empathy,
 Diplomacy.
Using these, effective communication skills can also help to enhance
productivity, reduce misunderstandings, and improve overall business
performance.

Business communication training

Business communication training can be used as a process of educating

executives and teams on the effective use of communication skills in a
business environment. The training typically covers various
communication methods, such as written, verbal, and nonverbal
communication, and emphasizes the importance of clear and concise
communication.

The training may also focus on communication in specific contexts, such

as team meetings, client interactions, and presentations. The goal of
business communication training is to improve the communication skills of
individuals and teams.

How to improve business communication

Here are some of the top ways how you can improve business
communication

 Practice active listening

 Use clear and concise language
 Use appropriate tone and body language
 Provide context and background information
 Use different communication channels appropriately
 Practice empathy
 Be concise and to the point
 Seek feedback
 Invest in training and Practice

Importance of Listening and Key Statistics

Remember Chinese Whispers? You know, the party game where you
whisper a message to the person next to you, and then they whisper it to
the next person, and so on. Listening in a business setting is similar.

We start out with good intentions. We want to understand what the other
person is saying. Somewhere along the way, we get distracted or start
forming our own opinion about what they're saying, and we stop listening.
Next thing you know, we're unsure of what they said or have
misunderstood them. This is unsurprising but understandable. It can also
be unacceptable, depending on the situation.
Listening is not that hard to define or to do. Nevertheless, we all get
distracted; we stop paying attention. Maybe the speaker is boring, or the
topic is, and we catch only about 25% of what was being said. That’s a
terrible number. It’s bad for our jobs, our companies, for the future of the
human race!

Listening: Objectives and Process

Even with so few people actively listening, the world keeps spinning.
Perhaps, it is not so important, right? Wrong. Businesses worldwide lose
billions of dollars in revenue yearly due to ‘simple’ mistakes that could’ve
been avoided had people listened. Companies just don’t publicize these
losses, that’s all.

One must understand WHY it is important to listen and what can go wrong
if they don’t.
At this point, a distinction must be made between effective and ineffective
listening based on human factors such as acceptance and empathy. The
trainer will end the session with an exercise to improve listening when
between two individuals. The Chinese Whispers are now taking the shape
of a meaningful conversation.
Active Listening

Improving Listening and Receiving Feedback

It is incontestable that if and when you receive feedback, it is best to

listen. This ensures that the same mistakes are not repeated, a hallmark
of career progress. In this discussion, we begin with a progressive
stepwise approach to improving listening and continue discussing the
rules of receiving feedback.

Objective and Importance Of Effective Listening

i. Listening skills are crucial to giving leaders access to the knowledge

and diversity in perspective needed (i) to make better business
decisions, (ii) mitigate risk and (iii) improve the employee
experience.

ii. will help the organizations grow, innovate and retain top talent.

iii. Both parties gain value by listening to each other and sharing
insights.

iv. especially important in today’s business environment, as employees

are often spread across the globe, working remotely and in different
time zones.

v. Listening help improve the environment employees work

Personal Selling

Personal selling is a marketing technique that involves direct, face-to-face

interaction with potential customers. Not only does this technique build
relationships, but it also improves customer satisfaction, builds trust, and
helps build brand awareness.

Personal selling involves person-to-person communication, which requires

interpersonal skills and expertise to persuade leads to buy products and
services.

Customers like to do business with people they know, like, and trust,
which is why personal selling is such an important technique in sales and
business.

There are many different types of personal selling, including retail sales,
business-to-business sales, and telemarketing. Personal selling is
especially effective with high-end products like cars and homes but is just
effective with smaller purchases, especially for repeat sales and sales
referrals.

Having a personal selling strategy is important for many reasons.

Personal selling is a type of marketing strategy that involves one-on-one

interaction with prospective customers to sell a product or service.

While personal selling is a part of marketing, there are several key

differences between the two. Personal selling and marketing are both
important components of building a brand strategy, but they differ in their
approach and objectives.
Marketing entails a broader set of activities that are designed to create
awareness of a company's products or services, generate interest among
potential customers, and ultimately lead to sales. Marketing can involve a
wide range of tactics, including advertising, public relations, content
marketing, email campaigns, social media, and more.

Personal selling is a technique that involves face-to-face selling between a

sales rep and a prospective customer. With personal selling, sales
representatives try to persuade a potential customer to purchase your
product or service. This technique helps to build relationships with
customers and ensure customer satisfaction.

Importance of personal selling

Personal selling is important because it involves direct communication

between a salesperson and a prospective customer, with the aim of
persuading them to purchase a product or service or increase revenue
through personalization.
Personal selling typically happens with face-to-face meetings, but it can
also be conducted via phone, video conferencing, or other communication
channels.

The focus of personal selling is on building relationships with customers

and tailoring the sales approach to their specific needs and preferences.
Examples of personal selling might include a car salesperson meeting with
a potential customer to show them different car models and features, a
real estate agent giving a tour of a property to a prospective buyer, or a
financial advisor meeting with a client to discuss investment options.
Personal selling can also help you build a personal brand strategy.

The focus of marketing is on reaching as many people as possible and

generating interest and demand for a product or service, which you can
do by using personal selling techniques.

Types of personal selling

 Retail sales
 B2B sales
 telemarketing
 direct sales
 consultative selling

There are several types of personal selling, each with its own features and
objectives. Here are some of the most common types:

 Retail sales: This is the most common type of personal selling. It

involves experienced salespeople selling products directly to
consumers in retail stores or online. The salesperson is responsible
for explaining the features and benefits of the product, answering
any questions the customer may have, and closing the sale.
Examples of retail sales include a salesperson at a clothing store,
electronics store, or car dealership.
 Business-to-business (B2B) sales: B2B sales involve selling
products or services to other businesses. The salesperson may need
to work with a team to understand the needs of the business and to
tailor their sales pitch to meet those needs. Examples of B2B sales
include a salesperson selling office equipment to a company or a
sales representative selling industrial machinery to a manufacturer.
 Telemarketing: Telemarketing involves sales reps making sales
calls to potential customers over the phone. The salesperson is
responsible for making a persuasive sales pitch and overcoming any
objections the customer may have. Examples of telemarketing
include a salesperson calling customers to sell them credit cards,
insurance policies, or subscriptions to a service.
 Direct selling: Direct selling involves salespeople selling products
or services directly to consumers in their homes. The salesperson
typically demonstrates the product, explains its features and
benefits, and helps the customer place an order. Examples of direct
 selling include a salesperson selling cosmetics, kitchenware, or
cleaning products to customers in their homes.
 Consultative selling: Consultative selling involves salespeople
acting as consultants to their customers, helping them to identify
their needs and offering solutions to meet those needs. The
salesperson may need to conduct a needs analysis, provide product
demonstrations, and offer customized solutions to the customer.
Examples of consultative selling include a salesperson selling
software solutions to a business or a financial advisor helping a
client plan for retirement.

Personal Selling Process

1. Prospecting
2. Pre-approach
3. Approach
4. Presentation
5. Overcoming objections
6. Closing

The personal selling process typically includes several steps, each

designed to move the potential customer closer to making a purchase.
Understanding these personal selling techniques is crucial so you can
optimize the selling process.

Prospecting

The first step in the personal selling process is prospecting. This involves
identifying potential customers who may be interested in the product or
service being sold. Prospecting can be done through various means, such
as referrals, cold calling, networking events, or social media.
Pre-approach

Once potential customers have been identified, the salesperson needs to

do some research and preparation before making contact.

This involves gathering information about the customer, such as their

needs, preferences, and buying habits, as well as information about the
product or service being sold.

The salesperson may also prepare a sales presentation or demonstration

to use during the approach stage.

Approach

The approach stage is where the salesperson makes initial contact with
the potential customer. The goal is to make a good first impression and
establish rapport with the customer. The salesperson may use various
techniques, such as a warm greeting, a compliment, or an opening
question to engage the customer and start a conversation.
Presentation

Once the salesperson has established a rapport with the customer, they
will move on to the presentation stage. This involves showcasing the
product or service being sold and explaining its features, benefits, and
value proposition.

The salesperson may use various presentation techniques, such as

product demonstrations, testimonials, or case studies, to illustrate the
product's benefits and persuade the customer to make a purchase.

Overcoming objections

During the presentation, the potential customer may raise objections or

concerns about the product or service being sold. The salesperson needs
to be prepared to address these objections and provide satisfactory
answers that alleviate the customer's concerns.

This may involve providing additional information, offering solutions, or

addressing any misconceptions the customer may have.

Closing

The final stage in the personal selling process is closing the sale. This
involves asking for the customer's business and finalizing the transaction.
By the closing stage, you should have formed a personal connection with
the customer.

The salesperson may use various closing techniques, such as offering a

discount, creating a sense of urgency, or emphasizing the benefits of the
product or service, to encourage the customer to make a purchase.

After the sale, following up with the customer to get feedback after the
purchase is key to strengthening the personal relationship and nurturing
future sales.

It's important to note that not every sales conversation will lead to a sale,
but by understanding the personal selling process, salespeople can
increase their chances of success, build stronger customer relationships,
and improve the customer experience.

Personal selling typically happens in person, but it can also occur via
phone, video conferencing, email, or social media.

Advantages and disadvantages of personal selling

Personal selling advantages and disadvantages may come into play when
deciding to use this concept for your business. It can be a very effective
component of a well-designed marketing strategy, so knowing the pros
and cons is essential.

Advantages
  Customization: With personal selling, you have the power of
personalization at your side. For example, a salesperson selling
office equipment to a business can identify the specific needs of the
business and provide customized solutions that meet those needs.
 Relationship-building: A financial advisor who engages in personal
selling can build a strong relationship with clients by providing
personalized financial advice, answering questions, and
demonstrating a genuine interest in the client's financial well-being.
This can lead to long-term business relationships and referrals.
 Immediate feedback: A salesperson who is selling a new product can
observe the customer's reactions and adjust their sales pitch
accordingly. For example, if the customer seems hesitant about the
price, the salesperson can explain the value of the product and offer
additional information to address the customer's concerns.

Disadvantages

 High cost: Personal selling strategies can be expensive. For

instance, a company that employs a sales team to sell industrial
machinery to other businesses may incur significant costs
associated with travel, equipment, and salaries. This can be
particularly true if the sales cycle is long and requires multiple visits.
 Limited reach: With personal selling, you may not reach as many
people as you would with other marketing techniques. For example,
a salesperson selling cosmetics to customers in their homes can
only reach a limited number of customers at a time. This can make
it difficult to generate significant sales or reach a wider audience.
 Inconsistent quality: A company that relies on untrained or
inexperienced salespeople to sell its products may encounter issues
with quality and effectiveness. This can result in missed sales
opportunities and negative customer experiences. For example, if a
salesperson is not knowledgeable about a product, they may not be
able to answer customer questions or provide effective solutions.

Personal branding can be a great way to build your reputation and create
a strong identity, but it has its limitations.

 It can take time to maintain a consistent personal brand over time.

Your brand may need to change with you as you change and grow,
which can be tough.
 Personal branding can be time-consuming and expensive, and it
may not be right for everyone.
 Personal branding can be limiting in that it may pigeonhole you into
one area or one type of work. If you want to branch out or change
directions, later on, it can be hard to do so with a strong personal
brand.
Risk and Resilience

Companies face business risks when there is potential uncertainty around

strategy, profits, compliance, environment, health and safety.

Business risks can impact a company's bottom line and its reputation
among consumers, and risk management plans can help mitigate them.

Types of business risks

Here are several types of business risks to look for as you evaluate a
company's standing:

1. Compliance risk

A compliance risk is a risk to a company's reputation or finances that's

due to a company's violation of external laws and regulations or internal
standards. A compliance risk can result in a company paying punitive
fines or losing customers.

Example: If a manufacturing company's employees don't follow

government safety regulations while building machines, their behavior
can be a compliance risk for the company.

2. Legal risk

A legal risk is a specific type of compliance risk that occurs when a

company fails to follow a government's rules for companies. Legal risks
can result in expensive lawsuits and a negative reputation for companies.
Here are a few types of legal risks for companies:

 Contractual risks: A contractual risk occurs when a company doesn't

fulfill the obligation or liabilities in a business contract.
 Dispute risks: A dispute risk happens when a legal conflict with a
customer, stakeholder or community member interrupts a business'
processes.
 Regulatory risks: A regulatory risk can happen if a government
regulator withdraws a company's license to operate.

Example: If a factory fails to follow regulations for pollution or hazardous

waste, it could receive a fine from the government and experience a
lower reputation among consumers, stakeholders and community
members.

3. Strategic risk
A strategic risk occurs when a company's business strategy is faulty or its
executives fail to follow a business strategy at all. A company may fail to
reach its goals due to strategic risks.

Example: If a pharmacy chain positions itself in its market as a provider of

low-cost prescriptions and a competitor begins selling prescriptions at a
lower rate than the pharmacy chain, it puts the pharmacy chain at a
strategic risk of losing profits to a competitor.

4. Reputational risk

A reputational risk threatens a company's standing or public opinion.

Reputational risks can result in a profit decrease and lack of confidence
among company shareholders.

Example: A clothing company prints an offensive image on a sweatshirt,

and the story goes viral on social media, causing a wave of negative news
coverage. This bad press damages the company’s reputation and causes
sales to drop.

5. Operational risk

Operational risk occurs when a business' day-to-day activities threaten to

decrease its profits. Internal systems or external factors can cause
operational risks for companies. Here are a few specific types of
operational risks:

 Employee errors: A business can experience a threat to its

operations if employees make significant mistakes at work.
 Damage to assets: A natural disaster can damage a company's
physical assets, which is an operational risk.
 External fraud: When a company experiences external fraud such as
a theft by a third party, the theft poses an operational risk to the
company.

Example: If a retail fashion business fails to train its customer service

representatives on its refund policy and the representatives refuse
refunds for customers with defective products, the company can
experience an operational risk.

6. Human risk

Human risks in business can arise from employees' failure to perform their
essential duties in the workplace. Human risks can arise from factors
employees can't control, like health issues, or intentional actions like theft
or fraud. When a business faces human risks, it can experience a loss of
profits.
Example: Alcohol abuse can cause employees to make mistakes at work,
which can lower productivity. The lack of productivity can cause the
business to lose profits or even lead to legal risks if the alcohol abuse
leads to a workplace injury.

7. Security risk

A business can experience a security risk if it fails to create or follow

cybersecurity strategies. Ineffective training for employees, lack of
software testing and insufficient policies for security updates can all put a
company's finances and reputation at risk.

Example: If an insurance company has a weak policy for employee

passwords, this can pose a security risk for the company. A hacker or
disgruntled employee could take advantage of this policy to release
sensitive data, which can hurt the company’s reputation or impact profits.

8. Financial risk

Financial risks can occur when a company doesn't perform debt

management or financial planning tasks. Market changes or losses can
threaten a company's financial standing. Here are a few types of financial
risks for businesses:

 Currency risk: A business can experience currency risks in

international business dealings because a foreign currency's value
can depreciate unexpectedly.
 Default risk: Taking out a business loan with greater interest than a
company can afford can put a company at risk of defaulting, or not
paying, the loan.
 Liquidity risk: A company faces a liquidity risk when it can't quickly
convert its assets into cash.

Example: A marketing company takes out a high-interest loan in

anticipation of growing its client base, but the company doesn't grow as
fast as its executives anticipated. The loan's high interest rate puts the
marketing company at risk of defaulting on the loan, which may
negatively impact the company's financial operations.

9. Competition risk

A competition risk can happen when a competitor takes an increasing

share of the market for a product or service. It's sometimes called a
comfort risk because it can result from a company's executives becoming
so comfortable with a company's performance that they fail to make
continual improvements with the company's products or services.
Example: Business A sells printers. Business A may experience a
competition risk when a competitor, Business B, uses technological
innovations to sell printers with more capabilities to Business A's
customers.

10. Physical risk

Physical risks are threats to a company's physical assets, like equipment,

buildings and employees. Causes of physical risks can include damage to
buildings from a fire or natural disaster and lack of training on proper
equipment use. Businesses may need to pay for repairs to physical assets
because of physical risks.

Example: A media company owns a building that houses a newspaper

staff and a printing plant. The building can be prone to fires if employees
of the printing plant fail to properly inspect and maintain printing
equipment. The lack of maintenance and inspections can pose a physical
risk to the building, its equipment and the company's employees.

Resilience

Business resilience is an approach that attempts to prepare organizations

for unforeseen disruptions. Whether facing natural disasters, supply chain
disruptions, IT and utility outages, or even a worldwide health crisis,
resilient businesses are able to create effective plans of action to survive
and recover from emergencies with their infrastructure, customer base,
and reputation intact. Building a comprehensive resilience plan gives your
business and your people a playbook to follow when standard processes
and procedures fail.
Risks of not planning

There are several risks to not adequately planning business resilience:

 Financial loss
 Damaged reputation
 Threats to business continuity
 Slow recovery
 Environmental impacts
 Inability to support community

Benefits of planning

Planning helps businesses prepare for a range of likely and less-likely

disruptions. The benefits of planning include the following:

 Reduce financial risks

 Enhance reputation
 Minimize threats
 Speedy recovery
 Minimize disruption
 Minimize corporate risk

Business continuity vs. business resilience

The ISO 22300:2018 defines business continuity as: “the capability of an

organization to continue the delivery of products or services at acceptable
predefined levels following a disruption.” Disruptions can range from a
change in legislation that forces change, to the loss of an employee.
Continuity is the act of anticipating these disruptions and forming a plan
to ensure that business operations can continue in the event of a
disruption.

Business resilience, according to the ISO 22316:2017, is: “the ability of an

organization to absorb and adapt in a changing environment to enable it
to deliver its objectives and survive and prosper.” Essentially, business
resilience is the ability to recover from and adapt to potentially damaging
incidents. Having the right mechanisms and contingencies in place
empower companies to absorb business disruptions without severe impact
to business operations.

Key Aspects of Risk Management and Resilience

There are four aspects to risk management and resilience that companies
must internalise:
1. Anticipate Risks

We need to improve our ability to anticipate. Essentially this refers to our

ability to assess our internal and external operating environment and
identify the risks and opportunities faced to reach our strategic objectives.
As humans, we are inherently not very good at anticipating — and a
common response is “it has never happened before” or “that will never
happen”. Risks are often managed and viewed in silos, each specialist risk
area only looking at how risks relate to themselves. Risk Management as a
discipline has evolved and should be a strategic enabler therefore a more
enterprise view is required.

Enterprise risk management has undergone vast changes

In the past, companies were most concerned with mitigating losses. Risk
management was seen as a ‘tick-box’ exercise that companies complied
with grudgingly. Risk managers were appointed to manage risk and a silo
approach prevailed — with various departments like health and safety or
finance taking on responsibility. Companies focused on operational risk
(what they could control easily) and applied different risk methodologies
in various specialist risk areas. A static risk register on an Excel
spreadsheet was the norm.

Today, we are far more focused on creating AND protecting value.

Risk is integrated into the business and presents various opportunities to

build and safeguard resources. All staff should have a sense of ownership,
applying a holistic risk and opportunity methodology and using dynamic,
up-to-date information that is always freely available. Companies should
consider strategic and project risk as well as operational risk, and look for
value-adding information that brings about better decision-making.
What are the benefits of enterprise risk management?

Risk management should be a combined effort, with the risk team,

business and assurance providers working together – and proactive
behaviour should be the order of the day, with teams focusing on
anticipating uncertainties and crises.

The aim is ultimately to put an early-warning system in place. If we can

spot ‘red flags’, we can act promptly and with confidence. Providing
combined assurance is an extra line of defence during a crisis.

It also creates stakeholder trust – if shareholders, customers and the

public know that your company is managing its risks effectively, it will
have a lot more confidence.

Some key actions:

 Understand the external and internal context – gather as much

information as possible.
 Identify possible risks and understand the contributing factors.
 Rate risks to enable prioritisation of limited resources – What is the
likelihood of each risk, and what would the impact be?
 Understand what you are already doing to respond to the risk.

2. Withstand Risks

We need to ask ourselves if our businesses have the operational resilience

to withstand these events.

Millions of companies worldwide – restaurants, bars, theatres, gyms,

cinemas, casinos – are either restricting operating hours and visitor
numbers or closing their doors. Have we built in operational resilience and
do we understand our response to “red flags”?

Some key actions:

 If you don’t have an adequate mitigating response in place, identify

action plans, assign action-plan ownership, and stipulate due dates.
 Identify and track key risk indicators or red flags.
 Build operational resilience by identifying and addressing single
points of failure.

3. Respond to Risks

Emergency response: An immediate response to an incident, where

actions need to be taken swiftly to safeguard life, looks at limiting injuries
and preventing the escalation of physical damage to assets. In the current
crisis, it means safeguarding the wellbeing of staff and guests, putting
disinfecting measures in place, and possibly shutting down affected
premises temporarily.

Crisis management: Senior management must engage in strategic

decision-making and provide leadership during the event/incident. This
includes ensuring that the brand’s image and reputation remains
untarnished (is the brand making the right decisions at the right time and
informing stakeholders on a regular basis?).

Some key actions:

In terms of reporting incidents/potential cases of COVID-19, develop and

test an appropriate protocol that is aligned with the World Health
Organisation and local authorities.

 Activate crisis management plans (including crisis communications)

to discuss a strategic enterprise-wide response.

4. Recover from Risks

Finally, we need to consider what it will take to recover – do we have a

business continuity management plan in place?

Business Continuity: Can your company recover or continue with urgent or

critical business processes and meet the predetermined recovery time
objective (RTO) in order to minimise the impact on the organisation?

Disaster recovery: Do you have plans and processes in place that will help
you to restore IT services, inapplicable? These services frequently support
the business within an acceptable recovery time objective (RTO).

Companies that rely on outdated business models should change their

approach and focus on building resilient ecosystems that can adapt.
Importantly, companies should be able to adopt more flexible ways of
working, and trust their employees to drive business forward in a way that
differs from ‘business as usual’.

Some key actions:

 Your crisis management team should invocate a Business Continuity

Management Plan.
 Implement a ‘work from home’ / flexible work strategy if possible.
 Change worker shifts to limit contact.
 Transfer the responsibilities of affected staff to others.
 Follow documented standard operating procedures.

Negotiation: Definition, Stages, Skills, and Strategies

The term negotiation refers to a strategic discussion intended to resolve

an issue in a way that both parties find acceptable. Negotiations involve
give and take, which means one or both parties will usually need to make
some concessions.

Negotiation can take place between buyers and sellers, employers and
prospective employees, two or more governments, and other parties.

How Negotiations Work

Negotiations involve two or more parties who come together to reach

some end goal that is agreeable to all those involved. One party will put
its position forward, while the other will either accept the conditions
presented or counter with its own position. The process continues until
both parties agree to a resolution or negotiations break off without one.

Experienced negotiators will often try to learn as much as possible about

the other party's position before a negotiation begins, including what the
strengths and weaknesses of that position are, how to prepare to defend
their positions, and any counter-arguments the other party will likely
make.

The length of time it takes for negotiations to conclude depends on the

circumstances. Negotiation can take as little as a few minutes, or, in more
complex cases, much longer. For example, a buyer and seller may
negotiate for minutes or hours for the sale of a car. But the governments
of two or more countries may take months or years to negotiate the terms
of a major trade deal.

Some negotiations require the use of a skilled negotiator such as a

professional advocate, a real estate agent or broker, or an attorney.
Examples of Negotiations

Negotiating can take place between individuals, businesses, governments,

and in any other situation where two parties have competing interests.
Here are two everyday examples:

Say you plan to buy a new SUV but don't want to pay the
full manufacturer's suggested retail price (MSRP). In that case, you might
offer what you consider a fair price. The dealer can accept your offer or
counter with another price figure. If you have good negotiating skills, you
may be able to drive the price down to a level where you're happy and the
dealer is still able to walk away with a profit, albeit a slimmer one.

Or, suppose you've been offered a new job but don't consider the salary
sufficient. An employer's first compensation offer is often not its best
possible offer, so it may have some room to negotiate. In fact, a 2016
survey by the CareerBuilder website found that 73% of employers were
open to negotiating a starting salary with job seekers.1 And if higher pay
isn't a possibility, the employer may be willing to offer something
additional, such as more vacation time or better benefits.

In both of these examples—as in most successful negotiations—both

parties have made compromises, while also achieving their principal
goals.

A 2022 study by Fidelity Investments found that while 58% of workers had
accepted their employer's initial offer, 85% of those who attempted to
negotiate got at least some of what they asked for.2

The Stages of the Negotiation Process

Regardless of what you're negotiating over or with whom, negotiation

usually involves several distinct steps.

Preparation

Before negotiations begin, there are a few questions it helps to ask

yourself. Those include:

 What do you hope to gain, ideally?

 What are your realistic expectations?
 What compromises are you willing to make?
 What happens if you don't reach your end goal?

Preparation can also include finding out as much as you can about the
other party and their likely point of view. In the case of the SUV
negotiation above, you could probably find out how much room the dealer
has to bargain by looking up actual sales prices for that vehicle online.

Also, marshal any facts that will help you make a persuasive case. If
you're negotiating for a new job or a raise at work, for instance, come
armed with concrete examples of your accomplishments, including hard
numbers if possible. Consider bringing testimonials from satisfied clients
and/or coworkers if that will buttress your case.

Many experienced negotiators consider preparation to be the single most

important step in the entire process.

Exchanging Information

Once you're prepped for the negotiation, you're ready to sit down with the
other party. If they're smart, they have probably prepared themselves, as
well. This is the point at which both sides will present their initial positions
in terms of what they want and are willing to give in return.

Being able to clearly articulate your wishes is critical to the negotiation

process. You may not get everything on your wish list, but the other party,
if they want to reach a deal, will have a better idea of what it might take
to make that happen. You will have a better idea of their position, and
where they might be willing to bend, as well.

Bargaining

Now that both parties have laid out their case, you're ready to start
bargaining.

An important key to this step is to hear the other party out and refrain
from being dismissive or argumentative. Successful negotiating involves a
little give and take on both sides, and an adversarial relationship is likely
to be less effective than a collegial one.

Also bear in mind that a negotiation can take time, so try not to rush the
process or allow yourself to be rushed.

Closing the Deal

Once both parties are satisfied with the results, it's time to end the
negotiations. The next step may be in the form of a verbal agreement or
written contract. The latter is usually a better idea as it clearly outlines
the position of each party and can be enforced if one party doesn't live up
to their end of the bargain.

Tips for Successful Negotiating

Some people may be born negotiators, but many of us are not. Here are a
few tips that can help.

 Justify Your Position. Don't just walk into negotiations without being
able to back up your position. Bring information to show that you've
done your research and you're committed to reaching a deal.
 Put Yourself in Their Shoes. Remember that the other side has
things it wants out of the deal, too. What can you offer that will help
them reach their goal (or most of it) without giving away more than
you want to or can afford to?
 Keep Your Emotions in Check. It's easy to get caught up in the
moment and be swayed by your personal feelings, especially ones
like anger and frustration. But don't let your emotions cause you to
lose sight of your goal.
 Know When to Walk Away. Before you begin the negotiating
process, it's a good idea to know what you'll accept as a bare
minimum and when you'd rather walk away from the table than
continue to bargain. There is no use trying to reach a deal if both
sides are hopelessly dug in. Even if you don't want to end
negotiations entirely, pausing them can give everyone involved a
chance to regroup and possibly return to the table with a fresh
perspective.

Good Negotiator
Some of the key skills of a good negotiator are the ability to listen, to
think under pressure, to clearly articulate their point of view, and to be
willing to compromise, within reason.

ZOPA

ZOPA is an acronym from the business world. It stands for zone of possible
agreement. ZOPA is a way of visualizing where the positions of the parties
to a negotiation overlap. It is within that zone that compromises can be
reached.

BATNA

BATNA is another acronym from the world of business, meaning best

alternative to a negotiated agreement. It refers to the next course of
action a negotiator may take if a negotiation fails to arrive at a
satisfactory conclusion. Veteran negotiators often go into a negotiation
knowing what their likely BATNA would be, just in case.

The Bottom Line

Negotiating is essential part of day-to-life, the business world, and

international affairs. Regardless of what you're negotiating, being a
successful negotiator means knowing what you want, trying to understand
the other party's (or parties') position, and compromising if necessary. A
successful negotiation leaves everyone satisfied that they have gotten a
deal they can live with.

Types Of Negotiation In Business (Definition And Tips)

Negotiation is the process of getting the most value for the least amount
of cost through bargaining. Whether you are negotiating your salary or
trying to get a better sales deal from a client or vendor, learning how to
negotiate can be extremely beneficial in a professional setting. Knowing
the different types and approaches to the negotiation process can help
you become a great negotiator. In this article, we discuss four different
types of negotiation, describe their usage in a business environment,
explain distinct negotiation approaches and share some tips to help you
negotiate effectively:

Here are four types of negotiation models and their unique characteristics:

1. Principled negotiation

This type of negotiation uses an integrative approach and the goal is to

use the shared values between the two parties to reach a compromise.
These principles create value, build trust and reach mutually acceptable
solutions. Some values to follow in a principled negotiation include
fairness and transparency. It is also important to remember that the final
outcome is mutually beneficial and serves the interests of both parties.

2. Team negotiation

Team negotiation is a process in which two or more parties, usually

involving several individuals, attempt to negotiate a mutually beneficial
agreement. Team negotiation is common in situations such as finalising
and signing business deals. To reach a successful conclusion in a
negotiation, the two teams balance multiple interests and consider many
different factors. To achieve a negotiated agreement that is fair and
balanced, it is essential for each party to feel that the deal they are
getting is rewarding.

3. Multi-party negotiation

In multi-party negotiations, two or more parties negotiate with the other

party to reach an understanding. Multi-party negotiation often involves
leaders and management within the same organisation. This negotiation
can be difficult to manage as each leader may have different priorities
and goals. Further, there are chances of alliances forming during this
process that may affect the final result and leave certain parties
unsatisfied with the end result. In such a situation, it can be helpful to get
a neutral party to broker an agreement to avoid miscommunication.

4. Adversarial negotiation

Adversarial negotiation follows the idea that both parties are against each
other instead of working together. This type of negotiation is more
aggressive in comparison to cooperative negotiation. All parties usually
adopt a 'hard bargain' tactic in adversarial negotiation wherein any
proposed compromise gets rejected. Additionally, both parties try to get a
written commitment in such negotiations.

Different Forms Of Negotiation In Business

Negotiation in a business setting can take many forms:

 Salary negotiation: In this negotiation type, a candidate bargains for

a better pay package and benefits from their employer.
 Seller negotiation: In this type, company employees try to get the
most cost-effective deal on the services and products from a third-
party vendor.
 Client negotiation: This type of negotiation helps salespersons and
teams increase the value of products or services they offer to their
clients or customers.
  Conflict resolution: Business leaders and team managers usually
perform this negotiation to resolve issues between two or more
employees engaged in a disagreement.

Different Approaches To Negotiation

Here are two significant approaches to negotiating effectively, along with

tips to implement them in business settings:

Distributive negotiation

In this approach to negotiation, the opposing parties bargain to get a

higher share of a fixed sum. Distributive negotiation lets one party
succeed at the cost of another party losing. That is why it is also
called win-lose negotiation, competitive negotiation or zero-sum
negotiation.

Here are a few tips for implementing distributive negotiation:

 Make an initial offer. Doing this can make the bargaining process
more favourable for you. This is because making the initial offer acts
as a powerful move according to the anchoring principle.
 Remain persistent. Being patient and firm can reiterate your
position. This is why persistence in a negotiation often leads to a
successful outcome.
 Avoid divulging unnecessary information. To appear assertive during
negotiations, it can be helpful not to reveal excess information. This
can include information like your lowest acceptable outcome,
sensitive details and counter-points that may make you appear as
the weaker party.

Integrative negotiation

In this negotiation approach, both parties try to help each other by

collaborating on shared interests to receive maximum benefits. Such
negotiations aim to reach a mutually acceptable solution that solves the
problem for both parties. This is also called 'win-win negotiation' or
'cooperative negotiation'.

Here are a few tips you can apply during an integrative negotiation:

 Clarify your interests. As the goal of this negotiation is to have an

outcome that favours both parties, transparently communicating
your interests can be useful. This can help in building a promising
relationship.
 Be flexible. Whenever possible, demonstrate flexibility and
willingness to compromise. This can help build confidence in the
other party and encourage them to do the same.
 Build trust. Follow a principled approach that helps both parties
navigate the process of negotiation transparently. Show trust and
good faith in your opponent's ability and willingness to reach a
conclusion.