Lecture International marketing (15/e): Chapter 19 - Philip R. Cateora, Mary C. Gilly, John L. Graham

Chapter 19 - Negotiating with international customers, partners, and regulators. After studying this chapter you will be able to understand: The problems associated with cultural stereotypes, how culture influences behaviors at the negotiation table, common kinds of problems that crop up during international business negotiations, the similarities and differences in communication behaviors in several countries,...

15th edition 

and Nonverbal Behaviors

skills list

foreigners in their native language

comparing linguistic aspects of language and 

nonverbal behaviors than when the verbal 

content of negotiations is considered

cultural differences are explained in the next few  slides

Verbal Negotiation Tactics (The “What” of Communications)

Exhibit 19.1

Behavior  (“How” Things are Said)

Exhibit 19.2

– “Separating people from the problem”

– Japanese appear to be the best negotiators with  the highest profits

– Japanese appear to be more equitable with buyers

– The passage of time is viewed differently across  cultures

– These differences most often hurt Americans

Differences in Thinking  and Decision­Making Processes

problem­solving activity

develop a business relationship with the goal of  long­term mutual benefit

approach and be prepared to discuss all issues 

simultaneously and in an apparently haphazard  order

(1 of 2)

1 Assessment of the situation and the people

2 Facts to confirm during the negotiation

3 Agenda

4 Best alternative to a negotiated agreement 

(BATNA)

5 Concession strategies

6 Team assignments

(2 of 2)

pre­manipulated

1.Location

2.Physical arrangements

3.Number of parties

4.Number of participants

5.Audiences (news media, competitors, fellow 

vendors, etc.)

6.Communications channels

7.Time limits

and Chinese Negotiation Styles

Exhibit 19.4

stages

1 Nontask sounding

2 Task­related exchange of information

3 Persuasion

4 Concessions and agreement

Task­Related  Information Exchange

feedback

of negative feedback

not anger

persuasion

negotiation tactics

communication

the end of the negotiations

• In most countries other than America legal systems  are not depended upon to settle disputes

• Japan 

– Contacts primarily contain comments on principles of  the relationship

• China  

– Contracts are more a description of what business 

partners view their respective responsibilities to be

• Many foreign CEOs expect a formal contract signing  ceremony

• Follow­up communications are very important