Chapter 1 Introduction Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

Introduction Managing a sales force is a complex task –Must bridge gap between buyer and seller –But must also hire, train, assign, motivate, compensate, evaluate, coach and lead the sales force to reach sales goals Today these tasks must be accomplished in the global marketplace –Global role is more complex and uncertain

The Global Marketplace Global Marketing and the Triad Most business occurs in NAFTA, Europe, and Pacific Rim Culture, geography, technology, and legal systems Currency exchange International travel expense Changing time zones Sales success requires knowledge, experience, and ability Sink or swim approach not appropriate

Globalization Globalization level increases each year –Many firms are threatened, e.g. labor-based –World class products e.g. Mercedes, Rolex, Sony –No one controls globalization – tariffs or quotas –Hurts less educated workers in developed nations Where do we go from here? –Will continue at a rapid pace – EU/NAFTA/Asia –Managers must plan from a global viewpoint –Firm’s success dependent on approach taken

Technological Innovations Changing the way people live and work –Internet Instant feedback – customer response Web pages – track customers Amount of information provided –Communications Cell phones, faxes, inexpensive long distance –Customer relationship management Interwoven with relationship marketing

Demographic Changes Growing diversity at work and in the market –By 2050 US will be much more diverse –Future buyers and sellers comprised of all races, nationalities, and genders –Similar changes occurring in Europe & Asia –Creates differing needs for consumers –Trend away from expatriates toward local or third country = more diversity in workplace!

Relationship Marketing Serve customer needs to maintain long-term and profitable relationship –Differing meanings - Not new! –Expensive to make empty sales calls B2B sales calls average cost $200 –Need to facilitate a “Win-Win” situation –Information technology allows firms to compute profit stream for each firm Differing service levels per customer possible

Class Discussion Are all customers and all sales good? –Should a firm sell to anyone who wants to buy? –Why or why not? What criteria should we use to select customers? Should selection criteria be measurable? Why or why not? –If the answer is “no,” how do we make sure customers are worth our effort?

Economic/Legal Changes Markets differ economically in potential and attractiveness –Asia vs. Japan vs. US vs. Europe –Global firms can shift emphasis between markets Different legal environments in the world –Russian legal system in flux – EU changes –Asian governments adhere to legal codes Different copyright and trademark process –Different worker benefits/employment laws in place European labor laws vs. those of US

Ethical Challenges Must define and practice ethical behavior –Sales generates ethical complaints – Why? –Buyer-Seller trust essential for success –Dissatisfied customers tell more people –Ethical standards vary by culture U.S. Foreign Corrupt Practices Act –Ethical expectations vary by culture –Sales managers must control sales force ethics

Ethics Are all salespersons unethical? –Why are salespersons perceived to be untrustworthy? If a salesperson is unethical what will likely be the outcome? –Is this fair? What role does the sales manager play in this process?

Summary Global trade has increased significantly and is predicted to exceed $8T by 2002 –Roles of sales manager and sales force have changed drastically –Nearly all firms compete globally –Sales force MUST be managed differently –Successful nations will absorb workers from other cultures –Must understand disparate cultures we encounter in U.S. and in other nations

Book Approach I – Introduction and Culture –Importance of a global view amid cultures II – Global Personal Selling –Historical and the selling process III – Global Human Resources –Select, train, assign, motivate, compensate IV – Global Strategic Management Issues –Forecasting, segmenting, strategies, CRM

Chapter 1 Questions How will globalization change the operation of firms? The role of the sales manager? How are the internet, communications, and CRM affecting the role of the sales manager and the sales force? What changes to the sales force are necessary to form a relationship? Why is this easier to adopt than implement? Where does trust fit into the buyer-seller equation?