International Marketing - Chapter 19: Negotiating with International Customers, Partners, and Regulators

Chapter 19Negotiating with International Customers, Partners, and RegulatorsInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamDifferences in Language and Nonverbal BehaviorsAmericans are near the bottom of the languages skills listAmericans don’t like side conversations by foreigners in their native languageThe variation across cultures is greater when comparing linguistic aspects of language and nonverbal behaviors than when the verbal content of negotiations is considered15 cultural groups were videotaped and their cultural differences are explained in the next few slides2Roy Philip Verbal Negotiation Tactics(The “What” of Communications)Roy Philip 3Exhibit 19.1Linguistic Aspect of Language and Nonverbal Behavior (“How” Things are Said)Roy Philip 4Exhibit 19.2Differences in ValuesObjectivity“Separating people from the problem”Competitiveness and equalityJapanese appear to be the best negotiators with the highest profitsJapanese appear to be more equitable with buyersTimeThe passage of time is viewed differently across culturesThese differences most often hurt Americans5Roy Philip Differences in Thinking and Decision-Making ProcessesWestern approach – sequentialEastern approach – holisticAmericans – business negotiation is a problem-solving activityJapanese – a business negotiation is a time to develop a business relationship with the goal of long-term mutual benefitAmerican buyers should anticipate such a holistic approach and be prepared to discuss all issues simultaneously and in an apparently haphazard order6Roy Philip Negotiation Preliminaries(1 of 2)Checklist for planning international negotiationsAssessment of the situation and the peopleFacts to confirm during the negotiationAgendaBest alternative to a negotiated agreement (BATNA)Concession strategiesTeam assignments7Roy Philip Negotiation Preliminaries(2 of 2)Aspects of the negotiation setting that should be pre-manipulatedLocationPhysical arrangementsNumber of partiesNumber of participantsAudiences (news media, competitors, fellow vendors, etc.)Communications channelsTime limits8Roy Philip Summary of Japanese, American, and Chinese Negotiation StylesRoy Philip 9Exhibit 19.4At the Negotiation TableBusiness negotiations proceed through four stagesNontask soundingTask-related exchange of informationPersuasionConcessions and agreement10Roy Philip Task-Related Information ExchangeLet the foreign counterparts bring up businessExpect a large number of questions but little feedbackAllow periods of silenceUse multiple communication channelsUnderstand the lack of, or the bluntness of negative feedbackMeet aggressive first offers with questions, not anger11Roy Philip PersuasionTask-related information exchange versus persuasionAvoid threats, warnings, and other aggressive negotiation tacticsAvoid emotional outburstsAsk more questionsUse third parties and information channels of communication12Roy Philip Concessions and AgreementWrite down concession-making strategiesUnderstand differences in decision-making stylesIn many cultures, no concessions are made until the end of the negotiations13Roy Philip After NegotiationsIn most countries other than America legal systems are not depended upon to settle disputesJapan Contacts primarily contain comments on principles of the relationshipChina Contracts are more a description of what business partners view their respective responsibilities to beMany foreign CEOs expect a formal contract signing ceremonyFollow-up communications are very important14Roy Philip