Sales Negotiation: Power Dynamics, Customer Analysis, and Strategies

This report delves into the power dynamics within sales negotiations, examining various types of power such as bargaining, positional, reward, and ethical power. It explores how these powers influence interactions between organizations and their customers. The report analyzes the strengths and weaknesses of an organization and a major customer, focusing on how bargaining power functions and its advantages, including fostering consistency and cooperation, and disadvantages, such as potential dues and fairness issues. The report references key literature to support its analysis, providing insights into how to effectively leverage power in sales interactions. This analysis is crucial for understanding how to create and maintain successful business relationships.

1
Sales Negotiations
Sales Negotiations

2
Sales Negotiations
Task 4 – Power
Q1. Think of your own organization – what powers does it have (some might call this a
list of strengths and weaknesses).
According to the organization, there are different powers which can be used in the
negotiation include bargaining power, position power, reward power, and ethics power.
Bargaining power is the degree to which individual can reward or punish the other side and
vice-versa. Position power is conferred on the basis of one’s formal position in an
organization. Reward power having a capability of perceived rewards by holding power.
Ethics power help in increasing trust which includes more power in negotiation (Terlizzi &
Dorogusker, 2016).
Q2. Apply this to one of your major customers - what are their strengths and
weaknesses
For apply the power to our major consumers are bargaining power is the general capacity of
gatherings in the circumstance to apply impact over one another. On the off chance that both
the gatherings are on the equivalent discussion, at that point they will have a square with
bargaining power (Macaulay, 2018). There are some advantages and disadvantages.
Advantages include:
 It helps in creating the enforcement consistency.
 It assists in encouraging cooperation.
 Bargaining power help in creating the relationships between two parties.
Disadvantages include:
 This type of power may require a dues payment.
 It requires government duties (Macaulay, 2018).
 It is not always a process of fair representation.
References
Macaulay, S. (2018). Non-contractual relations in business: A preliminary study. In The Law
and Society Canon (pp. 155-167). Routledge.

3
Sales Negotiations
Terlizzi, J. J., & Dorogusker, J. L. (2016). U.S. Patent No. 9,418,032. Washington, DC: U.S.
Patent and Trademark Office.