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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Topic 1: Negotiation planning and preparation- Preparation techniques
  • 1. BATNA and reservation points
    • 2. Setting objectives and targets
      • 3. Information gathering and analysis
        Topic 2: Negotiation fundamentals- Principles of commercial negotiation
        • 1. Definition and purpose of negotiation
          • 2. Types of negotiation (distributive vs integrative)
            Topic 3: Negotiation strategies and tactics- Approaches to negotiation
            • 1. Concession strategies
              • 2. Collaborative and competitive strategies
                • 3. Tactical behaviours and influence techniques
                  Topic 4: Power, ethics and communication in negotiation- Influencing factors
                  • 1. Sources of negotiation power
                    • 2. Ethical considerations in negotiation
                      • 3. Communication and interpersonal skills

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                        CIPS Commercial Negotiation Sample Questions (Q47-Q52):

                        NEW QUESTION # 47
                        Representatives from South African Department of Health is negotiating the price of hospital drugs with US pharmaceutical companies. Which of the following are most likely to be macro factors that influence the outcomes of the negotiation? Select TWO that apply.

                        Answer: A,B

                        Explanation:
                        All one-to-one commercial negotiations between a specific purchaser and a specific supplier take place within an industrial market and a larger business environment characterised by multiple forces which both parties typically have little control over. STEEPLE framework highlights the 6 main external influences on a business:
                        Particularly, pharmaceutical industry is a heavily regulated sector, therefore, legal and regulatory matters in the industry is highly important. Otherwise, technological trends also permeate into pharmaceutical companies, technologies like digitalisation may transform the balance of power in such negotiation.
                        LO 1, AC 1.3


                        NEW QUESTION # 48
                        Which of the following are types of non-verbal communication that could be used during a negotiation meeting? Select THREE that apply:

                        Answer: A,D,E


                        NEW QUESTION # 49
                        Different types of relationships impact on commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?

                        Answer: D


                        NEW QUESTION # 50
                        When might a buyer decide to use a distributive approach to a negotiation with a supplier?

                        Answer: D

                        Explanation:
                        A distributive approach is appropriate when multiple suppliers offer similar products, as this competitive environment allows the buyer to focus on maximizing their position rather than building long-term partnerships. CIPS suggests that a distributive or competitive approach is best used in non-critical purchases or when supplier dependency is low, as is the case here.


                        NEW QUESTION # 51
                        Amelia needs to negotiate prices with a potential client that she has not met before. She was due to attend their offices next week, but the meeting has been cancelled. The potentialclient has offered a telephone call as an alternative, but Amelia has declined the offer as she feels negotiations cannot succeed without a face-to- face meeting. Is this the right decision?

                        Answer: C

                        Explanation:
                        While face-to-face meetings are beneficial, declining all other forms of interaction can hinder progress.
                        Telephone calls can be effective in early negotiation stages to build rapport and set expectations. Conditioning the client through initial calls is a common and productive practice.
                        Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.4 - Modes of Communication in Negotiation


                        NEW QUESTION # 52
                        ......

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