ISMM Model Analysis: U405 Sales Negotiation Assignment, March 2018

This assignment analyzes sales negotiation strategies using the ISMM model. It begins with a win-win matrix, exploring scenarios where both sellers and buyers can benefit. The assignment then delves into the bargaining arena, examining situations like property sales and car purchases, and the concept of the Zone of Possible Agreement (ZOPA). Furthermore, the assignment explores the use of BATNA (Best Alternative To a Negotiated Agreement) in negotiation scenarios. The final section identifies and explains key variables involved in deal-making, such as concession strategies, customer offers, and the importance of BATNA for both the organization and the buyer. The document provides a detailed analysis of these elements, offering insights into effective negotiation techniques. The assignment concludes with a discussion on the variable costs involved in purchasing and the importance of maintaining a composed demeanor during negotiations to achieve win-win outcomes.

Running Head: ISMM Model assignment U405 Sales negotiations March 13, 2018
Name:
Student Number:
Word count:
Name of the course: U405
Tutor name:
Date of the assignment:
“ISMM MODEL ASSIGNMENT-SALES
NEGOTIATIONS”
1 | P a g e

Running Head: ISMM Model assignment U405 Sales negotiations March 13, 2018
TABLE OF CONTENTS
Task 1-Win-win Matrix.....................................................................................................................3
Task 2: The bargaining arena.............................................................................................................3
Task 3: Variables...............................................................................................................................4
Works Cited.......................................................................................................................................5
2 | P a g e

Running Head: ISMM Model assignment U405 Sales negotiations March 13, 2018
TASK 1-WIN-WIN MATRIX
WIN LOSE
WIN
Both the Sellers A and B get a
great market segment where
they work to support
themselves so that the value of
the company increases and
more and more customers get
attracted towards the products.
Seller A loses as there may be
issues arisen for the coverage
as well as support. They may
not be structured appropriately
for which customer losses get
complaints on the basis of
availability as well as
responsiveness.
LOSE
Seller B cannot work as the
way of consultative sale
professionals. Customer losses
can have the complaint for
hard sales as well as being
sold-to.
The skills of seller are needed
to be updated. It is found to be
weak in the area of solution
selling or in case of value
position as well as negotiation.
There are other who has skills
and capabilities.
(Perla, 2009) (ISMM, 2016)
TASK 2: THE BARGAINING ARENA
Situation 1:
An individual, named Mustafa, is an owner of a house and wants to sell at a price of $ 50,000.
This price is targeted as minimum price. Also, the valuation of the house is $50,000. On the other
hand, Alex, another individual is willing to pay $60,000 and thus he wants to be the valuation as
$60,000. If this trading occurs and Alex has bought the property from Mustafa through the price
which is lying from $50,000 to $ 60,000, it would be said that both the individuals have the
common interest of trading. It is called the “contracting Zone” in which the parties are agreed with
a common value of trading. This is known as ZOPA or Zone possible agreement.
Situation 2:
Another situation can be arising due to the negotiations under BATNA or “Best Alternative to a
Negotiated Agreement”. This situation can be arising when the buyer wants to buy a car for $6000
from the dealer who deals with other potential purchasers at the same time. When the deal will get
the best price for the car, the agreement will made and thus it is valued. In this case, the consumer
gets influenced by the company’s selling product, here model and quality of the car. This
agreement may go parallel when there is another deal can be happened with the same customer for
3 | P a g e
B
A

Running Head: ISMM Model assignment U405 Sales negotiations March 13, 2018
different product. So sometime, it may not be the exact mid position of the selling or it may occur
at the end of the financial year.
Situation 3:
In any political measures, the bargaining situation may arise when there are more than one
political parties create the government of the nation. It is generally called “hung Parliament”. The
party thus formed through the most valuable votes would found itself under typical bargaining
situation. As this case there is prime minister Selection has occurred in the countries like Austria,
Turkey, Germany or India.
TASK 3: VARIABLES
a) Variable that is used for deal making:
Under the situation of the car dealing scenario as stated in the assignment, the most deal
making situation may be used by providing some concession over the new car which the
byer wants to purchase by exchanging the old car.
b) Variable as per the customer offer:
As the customer or the party has a good reputation in the industry, he would offer for the
high quality or high priced product, here, car. Also about the security as well as the
insurance term can be checked from the customer end.
c) Variables those are mostly important for organization as well as the buyer:
As per the best dealing price under the negotiation, it can be the opportunity cost for the
car for which the dealing is going on. In this scenario BATNA is right things to do about
the agreement with the organization. BATNA is found as the most valuable important
source for negotiation power. When the potential results of the present negotiation offer
the value which is less than the BATNA, the negotiation situation would have no proof and
thus the best use of the availability option is that before any deals the BATNA value is
needed to be set. Through the use of BATNA, the most important thing is that it analyses
the intelligence of the competitor as they are available within the organization. After this, it
can be easily set down the breakpoints as well as the BATNA agreement would be
successful.
d) Variable cost to buy:
The variable’s cost or the car cost can be decided under the situation of the win-win
agreement when both the parties finally go for the trading of the car.
To overcome the situation, it is very important to keep one under composed and not to be
over react with the seller. This tactics become powerful under the scenario when the
weakness is being known by the other parties. The offer value should be extreme but under
the realistic situation. In the similar situation, when the customer act under professional
manner it would be the win-win situation for both the parties under trading (ISMM, 2016).
4 | P a g e

Running Head: ISMM Model assignment U405 Sales negotiations March 13, 2018
WORKS CITED
ISMM. (2016). ISMM Model Assignment. ISMM, Level 4.
Perla, M. (2009). Win/Loss Analysis . Retrieved from https://salesmanagement.org/:
https://salesmanagement.org/web/uploads/pdf/9c864791ac31c9c6f5c34c8fb2f79eac.pdf
5 | P a g e