Global Marketing Management

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Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

1

Global Marketing Management







Masaaki Kotabe & Kristiaan Helsen

Third Edition

John Wiley & Sons, Inc., 2004


Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

2

Chapter 15

Sales Management

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

3

Chapter Overview

1. Market Entry Options and Sales Force


Strategy

2. Cultural Considerations

3. Impact of Culture on Sales Management


and Personal Selling Process

4. Cross
-
Cultural Negotiations

5. Expatriates

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

4

Introduction


The salesperson is the front line for many
companies.


The success or failure of the company rests largely
on the ability of its sales force.


International sales management can be divided
into two categories: (a) international strategy
considerations, and (b) intercultural
considerations.


Issues such as recruiting, training, supervising,
and evaluating sales force are an integral part of
international sales management.

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

5

1. Market Entry Options and

Sales Force Strategy


The sales management “process”

starts with
setting objectives and strategy.


Other issues include: recruiting, training,
supervising, and evaluating. In addition, market
entry methods and level of integration are equally
important (see exhibit 15
-
2).


Low
-
Involvement Options include
:


Export Management Companies(EMCs)


Export Trading Companies (ETCs)

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

6

1. Market Entry Options and

Sales Force Strategy (contd.)

»
Sogoshosha

(Japanese general trading
companies)


Examples:

Mitsubishi, Mitsui, Sumitomo,
and Marubeni


Midlevel Involvement


High
-
Involvement


Role of Foreign Governments


Issues of host governments’ rules and practices


Companies as “corporate citizens” in the host
countries

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

7

2. Cultural Considerations


Personal Selling


Cultural Generalization


Organization (Corporate) Culture


Relationship Marketing


Myers
-
Briggs Type Indicator



MBTI (see Exhibit
15
-
3)


Popular tool for characterizing people which
addresses their cognitive styles and is based on
the following
four personal dimensions
:


1. Extrovert vs. Introvert

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

8

2. Cultural Considerations (contd.)


2. Sensing vs. Intuitive


3. Thinking vs. Feeling


4. Judging vs. Perceiving

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

9

3. Impact of Culture on Sales
Management and Personal Selling
Process



Sales force management consists of the
following six steps
:

1.
Setting salesforce objectives

2.
Designating salesforce strategy

3.

Recruiting and selecting salespeople

4.
Training salespeople

5.
Supervising salespeople

6.
Evaluating salespeople

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

10

3. Impact of Culture on Sales
Management and Personal Selling
Process (contd.)


Salesforce Objectives


What the salesforce will be asked to do


Salesforce Strategy


Sales structures
: Territorial salesforce, product
salesforce, and customer salesforce


Recruiting and Selecting


Training

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

11

3. Impact of Culture on Sales
Management and Personal Selling
Process (contd.)


Supervising


Motivation and Compensation


Management Style


Ethical Perceptions


Evaluating


Quantitative evaluations


Qualitative evaluations

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

12

4. Cross
-
Cultural Negotiations


Conducting successful cross
-
cultural negotiations
is a key ingredient for many international business
transactions.



Stages of the Negotiation Process:


Non
-
task surroundings


Task
-
related information exchange


Persuasion


Concessions and agreement

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

14

4. Cross
-
Cultural Negotiations (contd.)



Cross
-
Cultural Negotiation Strategies include the
following:


a. Employ an agent or advisor


b. Involve a mediator


c. Induce the counterpart to follow one’s own
negotiation script


d. Adapt the counterpart’s negotiation script


e. Coordinate adjustment of both parties


f. Embrace the counterpart’s script

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

15

4. Cross
-
Cultural Negotiations (contd.)


g. Improvise an approach.


h. Effect symphony.



To pick a strategy, the following steps ought to be
considered
:


1. Reflect on your culture’s negotiation
practices


2. Learn the negotiation script common in the
counterpart’s culture


3. Consider the relationship and contextual
cues

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

16

4. Cross
-
Cultural Negotiations (contd.)


4. Predict or influence the counterpart’s
approach


5. Choose a strategy


Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

17

5. Expatriates


Expatriates

are home
-
country personnel sent
overseas to manage local operations in the foreign
market.


Advantages of Expatriates


Better Communications


Development of Talent


Difficulties of Sending Expatriates Abroad


Cross
-
Cultural Training


Motivation


Compensation

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

18

5. Expatriates (contd.)


Family Discord


Security Risk


The Return of the Expatriate


Repatriation


Repatriation is the return of the expatriate
employee from overseas.


GMAC Relocation Services’ 2001 Survey

reported a number of effective ways to reduce
attrition rates. These include the following:

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

19

5. Expatriates (contd.)


1. Chances to use international experience


2. A choice of positions upon return


3. Recognition


4. Repatriation career support


Generalizations About When Expatriates are
Good/Bad


Expatriates are important whenever
communication with the home country office is
at a premium.

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

20

5. Expatriates (contd.)


Expatriates are especially important in complex
operating environments, or when elevated
political risk requires constant monitoring.

Chapter 15

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

21

Copyright © John Wiley & Sons, Inc., 2004