Differences Between Distributive &
Integrative Strategies
by Evangeline Marzec, Demand Media
Use the appropriate negotiation strategy depending on the
situation.
There are two main approaches to any negotiation situation:
distributive and integrative strategies. Each are useful in specific contexts,
and the same negotiator may use either strategy depending upon their goal. We
encounter distributive negotiation every time we buy a car or ask for a
discount on an as-is item. Integrative negotiations happen on an ongoing basis,
such as agreeing to let our children go to bed an hour later in exchange for
mowing the lawn.
Distributive Basics
Distributive negotiation is appropriate in "divide the
pie" situations, when there is a fixed amount of resources and whatever
one party gains, the other party loses. Usually it's employed when the parties
don't know each other and don't believe they will need to develop a
relationship with each other for use in the future. A distributive approach to
negotiation is usually what we encounter when we make a purchase.
Distributive Tactics
In distributive bargaining, it's best to keep information to
yourself while trying to get information out of the other party. Let them make
the first offer, since this lets you know what they're willing to give up. Do
tell them about alternatives you have, such as competing offers for what you're
selling, or interest in a product that competes with the one they're selling if
you're the buyer. But be willing to make concessions in order to reach a
realistic outcome.
Integrative Basics
An integrative bargaining situation occurs when it's
possible to produce a greater outcome together than either could reach on his
own. It's used when the parties have a relationship or want to establish one,
and when cooperation benefits both parties. There are often multiple issues to
address, and the negotiations can be complex and ongoing. Most of us use
integrative bargaining within our families and between business partners.
Integrative Tactics
Determine your list of priorities, and make a guess about
the other party's priorities as well. Share information with each other, being
honest about your priorities; often something critical to one side is a minor
concession to the other, and vice versa. Find and offer solutions that produce
the most gain for the other party as well as for yourself. Remember that you
will be in other negotiation situations with the other side in the future, and
be willing to compromise when needed to build goodwill for later.
