Marketing Management - Retail Sector
Added on - 20 Sep 2019
1Head of Research and Development Department (Party 1 less skilled negotiator)Head of Production Department (Party 2 Skilled negotiator)Me (Negotiator)Party 1: The manager has decided to allocate $2 million on important activities. Nothingmore is much important than market research in retail sector.Party 2: I know, it is important to get things done based on research on any subject. However,meeting the demand of the customer is equally important as attracting and retaining the. Ourdepartment needs additional fund for enhancing production facility.Party 1: But it is impossible to hand over the funds to you when there are actually no use.You all were granted funds for meeting the production level. Why didn’t you say then youneed additional funds?Party 2: How can you say that there is actually no use? We need it for increasing productionand keeping the funds ready for the production facilities in case of increase in customers.Party 1: I have written a formal letter to the manager and he will decide what to do and whatnot to.Party 2: I am not asking for the entire fund, at least 60% of the fund could be used by ourdepartment. W are ready to negotiate with your team for the remaining 40%.Party 1: We are not. We need entire fund.Party 2: Why do you need the entire fund? Just for marketing the business. The customers arealready aware of the products and services we offer so what is the use of re-marketing themunnecessarily.
2Party 1: Though the customers are aware of the business and the offerings of the company,we do have introduced a new product line with different characteristics and features and thisis why the promotion of the same is crucial else, the customers would be unaware of suchnew offerings and we might lose them to out competitors in the market.Party 2: It is just a new product and unless we produce it what will be the use of yourmarketing techniques. What if the customers demand the same within the same week withthousands of unit at each region? What will we serve them?Party 1: what do you mean by this? Marketing and promotion is a waste of time an d money?Party 2:It cannot be denied that without research in any field, it becomes a challenging taskto identify the potentials and targets which needs to be achieved. But then again, not meetingthe entire targets based on the survey or research is a shameful act which could be moreriskier and result in ineffectiveness of the team and the organization as well.Me: Do you both mind if I explain my view:Party 1 and Party 2: Yes. You may proceed.Me: Why don’t you both take equal resource and proceed with your work andleverage yourdifferences so as to create value. In fact, capitalizing on the differences can help you both tonegotiate with each other. You both must note that your primary interest must rest in gettingcredit your ideas as well as use of the resources and also gaining stature in the organization.You both must keep in mind that you are not working in your personal interest rather in thebest interest of the company. So please think on the perspective of the company first and thenmove towards taking any decision rather than creating such a trouble.
3Party 1: Do you think it would be adequate enough to proceed with only a nominal amount of$ 1million in research and development? We require more funds for proceeding withmarketing and promotion. Being the member of the management team, how could you do notknow the importance of marketing?Me: Even if I am aware of the facts, couldn’t you find out any other source for promoting theproducts and services? Why being rigid towards the marketing strategy when you know thatyou have been provided with a limited fund?Party 2: I am ready to negotiate with the other team for equal resource. Please ask them tosign the agreement for such.Me: Being stubborn for making such a decision will not help any of us. Rather, please beassured that allocation of resources will be for the best interest of the company and willbenefit all the members of the organization. Denying to negotiate with each other will alsocause delay in other programs as well.Party 1: Why should I be made responsible for the delay? Why he (party 2) is interfering withthe allocation process when he knows the importance of marketing but still not backing up.Me: Ok then, I agree that both of you have not agreed for the resource allocation of equalbasis. Therefore, I need to take help from the managerial head. Resources will be allocateddepending on the performance basis of both the departments whenever resources wereallocated.Party 1: Continue with your strategy. I know our performance and it will prove that we willtake the massive share of the resources.Party 2: Go ahead and let me know the results when you are done.