Final answer:
Sarah is using the win-win negotiation philosophy, aiming for an outcome where both her company and Target department store benefit, creating mutual gains.
Step-by-step explanation:
Sarah is exemplifying the win-win philosophy of negotiation by explaining how both her company and Target can improve their profits. This approach is characterized by seeking a mutually beneficial agreement where all parties gain something from the deal. Unlike zero-sum, distributive, positional, or hard-bargaining negotiation strategies, win-win focuses on collaboration and creating value that can be shared, rather than competing for a fixed amount of resources or advantage.