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Business Physiology

In: Business and Management

Submitted By mover
Words 1514
Pages 7
Personal power, communication and effective persuasion
H Woodman


In order to effectively persuade or negotiate with a person, good communication skills are essential. Persuasion is the ability to induce another party to embrace your point of view by using reasoning. Persuasive people try to get other parties to want what they want without arguing by providing solutions that work. They do this by using communication techniques such as talking relentlessly and using complex terms which means they have to explain it more (Dainton, 2010). They use perceived power they receive from the other party by using authority which is builds trust. For example, the use of doctors in a toothpaste advert persuades people to buy the toothpaste. Negotiation is a situation where parties having a conflicting interest, each with no power to influence the other to get their way reach an agreement. In a negotiation, both parties can compromise or alternatively invent a solution that meets both of their objectives.
For instance, in a business involving a car dealer or salesman and a buyer, concepts of persuasion and negotiation are used in order to make a deal. The deal may not necessarily be favorable to both parties. The car salesman may use persuasion to get the buyer to agree to the terms of purchase. For example, car salesmen try to be likable by using techniques such as smiling and telling jokes. They create emotional attachment to the buyer by letting buyers test drive the cars or feel the upholstery. They sway buyers by using their fear of loss or being indebted. For instance, they tell buyers how much that model of the car is on high demand and the number of people buying them. They throw in words like ‘discount’ to get buyers to feel obliged to make the purchase. When a buyer is reluctant to make the purchase, they can bring in their ‘manager’ as a symbol of authority to persuade the buyer. The ‘manager’ influences the buyer by creating a perception of being trustworthy even though the ‘manager’ may just be another salesman. The more the buyers like the salesman, the more likely they are to be persuaded by him. Car salesmen often negotiate the sale by using the terms of purchase. They try to identify where the buyer’s interest lies; monthly payments, interest rates etc. Salesmen negotiate the purchase price and try to sell financing and extended warranties to their customers. Buyers can also negotiate with salesmen when they are aware of the terms of purchase. Buyers who are aware of the general value of the car, finance rates and have a fined tuned estimate of the price have a significant negotiation power compared to the salesman.
Listening is one of the communication issues presented in this scenario. Car salesmen rarely listen to the buyer or at least pretend to. This is because they are more concerned about making the sale than finding out the specifics of the buyer. They talk relentlessly and will often interrupt buyers as a tactic to keep buyers interested in what he has to offer. They listen when the buyer is about to make a purchase. On the other hand, the buyer actively listens to what the salesman has to offer. The ability of the parties to articulate their interest and view of the situation is another communication issue. Car salesmen are more interested in selling therefore they are not as interested in finding out the interest of the buyer. In fact, they can even decide on the car to sell to the buyer by expressing their own interest regarding the car. A buyer who is unsure and unprepared can easily be swayed by the salesman. The use of defensive language and behavior is also a communication issue. Salesmen use defensive language as a persuasion technique to get buyers to make additional payments to justify the purchase price of the car.
Power in this case refers to each party’s perception of its own strengths or weaknesses relative to the other party. Power is derived from the need of the sale. For example, the salesman would have more power over the buyer if the buyer shows more need for the car. On the other hand, salesmen usually have a greater need of making sales hence the buyer has more power in this case. The knowledge and existence of alternatives or variety is another source of power. A buyer who knows more about a car or is willing to accept a variety of colors for example, has greater power. Buyers also have greater bargaining power because they can easily find other salesmen in case a deal is not struck. On the other hand, a salesman has power over a buyer who believes that a certain vehicle is unique. Power can also be derived from the character of the parties. A salesman who is credible or trustworthy has power over the buyer. This is because buyers are more likely to make purchases when they think the seller is trustworthy. A salesman can increase his power by for example providing proof a sale through pictures. The energy and time invested in the deal can influence who gets the power. A buyer who is under time pressure or has spent significant energy to buy a car gives power to the salesman who determines how long the negotiation takes place. A buyer is more likely to settle at a price that is convenient to the salesman to avoid further pressure. All these sources of power are perceived because they are based on what each party thinks they have that the other party needs.
Power is the ability to favorably affect another party’s decision. In a scenario involving a car dealer and a buyer, the balance of power is determined by demand and availability of information. A car dealer or sales man has greater power over the buyer in situations where the vehicle is on high demand or the vehicle is hard to find. When a particular vehicle is in short supply, buyers want it more and the sales man has a greater influence on the price settled. In case buyers have more information about the general value of the car and have made alternative arrangements for financing and have a fine tuned estimate, then they have greater bargaining power over the seller. In case mediation is necessary, I would consider seeking collaboration between the salesman and the buyer. Collaboration enables the parties to see from each other’s perspective in terms of their interests, goals and objectives. The aim is to allow both parties to clarify their goals. We would survey the range of probable and satisfactory outcomes that either benefit or cost both parties to avoid unfair advantage or disadvantage. Assisting the salesman and the buyer to evaluate alternatives and make a decision would also help to reduce conflict from arising.
The objectives, interests, alternatives, communication and the obligations at risk are some of the factors to be considered when building an effective negotiation strategy. The objectives of the negotiation should be to create allies in the long run by identifying the position of the other party and working towards reaching a common agreement. Finding common interests and sharing them creates grounds for mutual understanding. Developing the best alternatives is another plan for a party in case they fail to reach an agreement or meet each other’s interests. The commitments at stake should drive the development of an effective negotiation strategy to avoid conflict between parties because of the mutual loss they may face.
Persuasion is the ability to induce another party to embrace your point of view by using reasoning. Negotiation is a situation where parties having a conflicting interest, each with no power to influence the other to get their way reach an agreement. Persuasion is an attempt to influence another party to change their beliefs or actions while negotiation usually aims at reaching a settlement. In the above scenario, persuasion is mostly used for expression. A salesman tries to sell by challenging; explaining, convincing and urging a buyer to get a car which the salesman wants to sell (Levine, 2003). . It is about getting the buyer to want what the salesman wants. Persuasion is used when buyers have no knowledge of the model of vehicle that they want. Negotiation is used in the actual trade when the dealer and buyer try to settle on a price. Negotiation involves surveying needs, priorities, constraints and interests of the parties in order to reach a settlement (Maddux, 1995). Negotiation is more effective in this scenario because buyers are usually aware of the car they want to buy and try to bargain on the purchase price or terms of purchase. REFERENCES Dainton, M. (2010). Applying communication theory for professional life: A practical introduction. Los Angeles: Sage Publications. Levine, R. (2003). The power of persuasion: how we are bought and sold. Hoboken, N.J: John Wiley & Sons. Maddux, R.B. (1995). Successful negotiation effective “win-win” strategies and tactics (3rd Ed.) Menlo Park, Calif.: Crisp.

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