1. Chapter Learning Objectives
The role of interpersonal selling in international marketing
The considerations in designing an international sales force
The steps to recruiting three types of international sales people
Selection criteria for international sales and marketing positions
The special training needs of international personnel
Motivation techniques for international sales representatives
How to design compensation systems for an international sales force
How to prepare Americans for foreign assignments
The changing profile of the global sales and marketing manager

2. Global Perspective International Assignments are Glamorous, Right?
Job security
Readjustment upon return to U.S.
Adjustment to other cultures
Will an international assignment really help your career?
Relationship marketing and customer relationship management

3. Designing the Sales Force
Decisions must be made regarding the numbers, characteristics, and assignments of sales personnel
Different market requirements regarding direct sales and customer approach
Territory allocation
Customer call plans

4. Recruiting Marketing and Sales Personnel
The largest personnel requirement abroad for most companies is the sales force
Expatriates
Numbers are declining
Important for highly technical or involved products
High cost
Cultural and legal barriers
Limited number of high-caliber personnel willing to live abroad
Virtual expatriates
Manage operations in other countries but don’t live there

5. Recruiting Marketing and Sales Personnel (continued)
Local nationals
Transcend both cultural and legal barriers
Familiar with distribution systems and referral networks
Headquarters personnel may ignore their advice
Lack of availability
Sales positions viewed negatively
Third-country nationals
Expatriates working for a foreign company
Host-country nationals
Work restrictions

6. Selecting Sales and Marketing Personnel
Management must define precisely what is expected of people.
Prime requisites:
Maturity
Emotional stability
Breadth of knowledge
Positive outlook
Flexibility
Cultural empathy
Energetic and enjoy travel
Mistakes can be costly
A manager’s culture affects personnel decisions

7. Training for International Marketing
The nature of the training program depends on:
The home culture of the sales person
The culture of the business system and foreign market
Continual training is important in foreign markets
Companies should provide home-office personnel with cross-cultural training
The Internet now makes some kinds of sales training much more efficient

8. Motivating Sales Personnel
National differences must always be considered when motivating the marketing force
Individual incentives that work effectively in the U.S. can fail completely in other cultures
Communications are important in maintaining high levels of motivation
A company needs to make clear the opportunities for growth within the firm

9. Designing Compensation Systems for Expatriates
Fringe benefits
Compensations comparisons between the home office and abroad
Short-term assignment compensation
Using a compensation program to recruit, develop, motivate, or retain personnel

10. Designing Compensation Systems for a Global Sales Force – The Do’s
Do involve representatives from key countries.
Do allow local managers to decide the mix between base and incentive pay.
Do use consistent performance measures (results paid for) and emphasis on each measure.
Do allow local countries flexibility in implementations.
Do use consistent communication and training themes worldwide.

11. Designing Compensation Systems for a Global Sales Force – The Don’ts
Don’t design the plan centrally and dictate to local offices.
Don’t create a similar framework for jobs with different responsibilities.
Don’t require consistency on every performance measure within the incentive plan.
Don’t assume cultural differences can be managed through the incentive plan.
Don’t proceed without the support of senior sales executives worldwide.

12. Evaluating and Controlling Sales Representatives
In the U.S., emphasis is placed on individual performance, which can easily be measured by sales revenues generated
In many countries evaluation is more complex where teamwork is favored over individual effort
The primary control tool used by American sales managers is the incentive system
In other countries, corporate control and frequent interactions with peers and supervisors are the means of motivation and control

13. Preparing U.S. Personnel for Foreign Assignments
Foreign assignments typically cost from percent of the annual base salary
This cost increases if the expatriate returns home before completing the scheduled assignment
The planning process must begin prior to the selection of those going abroad and extend to their specific assignments after returning home

14. Overcoming Reluctance to Accept a Foreign Assignment
Concerns for career:
An absence will adversely affect opportunities for advancement
Concerns for family:
Education of the children
Isolation from family and friends
Proper health care
The potential for violence

15. Reducing the Rate of Early Returns
Evaluation of an employee’s family
75 percent of families sent abroad experience adjustment problems with children or marital discord
Cross-cultural training for families as well as the employee
Local ombudsmen

16. Successful Expatriate Repatriation
Commit to reassigning expatriates to meaningful positions.
Create a mentor program.
Offer a written job guarantee stating what the company is obligated to do for the expatriate on return.
Keep the expatriate in touch with headquarters through periodic briefings and headquarter visits.
Prepare the expatriate and family for repatriation once a return date is set.

17. Developing Cultural Awareness
Most expatriate failures are cause by lack of an understanding of cultural differences and their effect on management skills.
Good cultural skills can be learned and developed.
Cultural skills provide the individual with the ability to relate to a different culture even when the individual is unfamiliar with the details of that particular culture.

18. The Changing Profile of the Global Manager
Fewer companies today limit their search for senior-level executive talent to their home countries
Some companies believe that it is important to have international assignments early in a person’s career, and international training is an integral part of their entry-level development programs
Many companies are active in making the foreign experience an integrated part of a successful corporate career

19. Foreign-Language Skills
Many believe that learning a language improves cultural understanding and business relationships
Many believe that to be taken seriously in the business community, the expatriate must be at least conversational in the host language
Many companies are making stronger efforts to recruit people who are bilingual or multilingual