Global Marketing Management, 4e

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Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

1

Global Marketing Management, 4e

Chapter 15


Sales Management


Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

2

Chapter Overview

1. Market Entry Options and Salesforce


Strategy

2. Cultural Considerations

3. Cultural Generalization

4. Impact of Culture on Sales Management


and Personal Selling Process

5. Cross
-
Cultural Negotiations

6. Expatriates

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

3

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

Copyright (c) 2007 John Wiley & Sons, Inc.

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1. Market Entry Options and Salesforce
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 in your text).

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

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1. Market Entry Options and Sales Force
Strategy


Low
-
Involvement Options include
:


Export Management Companies(EMCs)


Export Trading Companies (ETCs)


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

Copyright (c) 2007 John Wiley & Sons, Inc.

6

2. Cultural Considerations


Personal Selling


At the level of
personal selling,
there is little
true
international
selling.


The sales task tends to take place on a national
basis.


Personal selling is predominantly a personal
activity.

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

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3. Cultural Generalization


Cultural Generalization


Organization (Corporate) Culture


Relationship Marketing


Myers
-
Briggs Type Indicator



MBTI (see Exhibit 15
-
3 in
your text)


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


1. Extrovert vs. Introvert


2. Sensing vs. Intuitive


3. Thinking vs. Feeling


4. Judging vs. Perceiving

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

8

4. 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

Copyright (c) 2007 John Wiley & Sons, Inc.

9

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


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

Copyright (c) 2007 John Wiley & Sons, Inc.

10

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


Supervising


Motivation and Compensation


Management Style


Ethical Perceptions


Evaluating


Quantitative evaluations


Qualitative evaluations

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

11

5. 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

Copyright (c) 2007 John Wiley & Sons, Inc.

12

5. Cross
-
Cultural Negotiations

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

13

5. Cross
-
Cultural Negotiations



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


g. Improvise an approach.


h. Effect symphony.


Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

14

5. Cross
-
Cultural Negotiations


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


4. Predict or influence the counterpart’s approach


5. Choose a strategy

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

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6. 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


Family Discord


Security Risk

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

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6. Expatriates


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:


1. Chances to use international experience


2. A choice of positions upon return


3. Recognition


4. Repatriation career support

Chapter 15

Copyright (c) 2007 John Wiley & Sons, Inc.

17

6. Expatriates


Generalizations About When Expatriates are
Good/Bad


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


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