1. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.1 Global Marketing Management, 4e Chapter 15 Sales Management

2. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.2 Chapter Overview 1. Market Entry Options and Salesforce Strategy Strategy 2. Cultural Considerations 3. Cultural Generalization 4. Impact of Culture on Sales Management and Personal Selling Process and Personal Selling Process 5. Cross-Cultural Negotiations 6. Expatriates

3. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.3Introduction  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.

4. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.4 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).

5. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.5 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

6. Chapter 15Copyright (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.

7. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.7 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

8. Chapter 15Copyright (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

9. Chapter 15Copyright (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

10. Chapter 15Copyright (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

11. Chapter 15Copyright (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

12. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.12 5. Cross-Cultural Negotiations

13. Chapter 15Copyright (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.

14. Chapter 15Copyright (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

15. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.15 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

16. Chapter 15Copyright (c) 2007 John Wiley & Sons, Inc.16 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

17. Chapter 15Copyright (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.