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

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Global Marketing Management, 4eGlobal Marketing Management, 4e

Chapter 15

Sales ManagementSales Management

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Chapter OverviewChapter Overview

1. Market Entry Options and Salesforce1. Market Entry Options and Salesforce StrategyStrategy2. Cultural Considerations2. Cultural Considerations3. Cultural Generalization3. Cultural Generalization4. Impact of Culture on Sales Management4. Impact of Culture on Sales Management and Personal Selling Processand Personal Selling Process5. Cross-Cultural Negotiations5. Cross-Cultural Negotiations6. Expatriates6. Expatriates

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IntroductionIntroduction

The salesperson is the front line for many The salesperson is the front line for many companies.companies.

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

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

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

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1. Market Entry Options and Salesforce 1. Market Entry Options and Salesforce StrategyStrategy

The sales management “process”The sales management “process” starts with starts with setting objectives and strategy.setting objectives and strategy.

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

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1. Market Entry Options and Sales Force 1. Market Entry Options and Sales Force StrategyStrategy

Low-Involvement Options includeLow-Involvement Options include::– Export Management Companies(EMCs)Export Management Companies(EMCs)– Export Trading Companies (ETCs)Export Trading Companies (ETCs)

SogoshoshaSogoshosha (Japanese general trading companies)(Japanese general trading companies)– Examples:Examples: Mitsubishi, Mitsui, Sumitomo, and Mitsubishi, Mitsui, Sumitomo, and

MarubeniMarubeni Midlevel InvolvementMidlevel Involvement High-InvolvementHigh-Involvement Role of Foreign GovernmentsRole of Foreign Governments

– Issues of host governments’ rules and practicesIssues of host governments’ rules and practices– Companies as “corporate citizens” in the host countriesCompanies as “corporate citizens” in the host countries

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2. Cultural Considerations2. Cultural Considerations

Personal SellingPersonal 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.

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3. Cultural Generalization3. Cultural Generalization

Cultural GeneralizationCultural Generalization Organization (Corporate) CultureOrganization (Corporate) Culture Relationship MarketingRelationship Marketing Myers-Briggs Type IndicatorMyers-Briggs Type Indicator – MBTI (see Exhibit 15-3 in – MBTI (see Exhibit 15-3 in

your text)your text)– Popular tool for characterizing people which addresses Popular tool for characterizing people which addresses

their cognitive styles and is based on the following their cognitive styles and is based on the following four four personal dimensionspersonal dimensions::

1. Extrovert vs. Introvert1. Extrovert vs. Introvert2. Sensing vs. Intuitive2. Sensing vs. Intuitive3. Thinking vs. Feeling3. Thinking vs. Feeling4. Judging vs. Perceiving4. Judging vs. Perceiving

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

ProcessProcess

Sales force management consists of the following Sales force management consists of the following six stepssix steps::

1.1. Setting salesforce objectivesSetting salesforce objectives2.2. Designating salesforce strategyDesignating salesforce strategy3.3. Recruiting and selecting salespeopleRecruiting and selecting salespeople4.4. Training salespeopleTraining salespeople5.5. Supervising salespeopleSupervising salespeople6.6. Evaluating salespeopleEvaluating salespeople

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

ProcessProcess

Salesforce ObjectivesSalesforce Objectives– What the salesforce will be asked to doWhat the salesforce will be asked to do

Salesforce StrategySalesforce Strategy– Sales structuresSales structures: Territorial salesforce, : Territorial salesforce,

product salesforce, and customer product salesforce, and customer salesforcesalesforce

Recruiting and SelectingRecruiting and Selecting TrainingTraining

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

ProcessProcess SupervisingSupervising

– Motivation and CompensationMotivation and Compensation– Management StyleManagement Style– Ethical PerceptionsEthical Perceptions

EvaluatingEvaluating– Quantitative evaluationsQuantitative evaluations– Qualitative evaluationsQualitative evaluations

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5. Cross-Cultural Negotiations5. Cross-Cultural Negotiations

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

Stages of the Negotiation Process:Stages of the Negotiation Process:– Non-task surroundingsNon-task surroundings– Task-related information exchangeTask-related information exchange– PersuasionPersuasion– Concessions and agreementConcessions and agreement

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5. Cross-Cultural Negotiations5. Cross-Cultural Negotiations

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5. Cross-Cultural Negotiations5. Cross-Cultural Negotiations Cross-Cultural Negotiation Strategies include the Cross-Cultural Negotiation Strategies include the

following:following:– a. Employ an agent or advisora. Employ an agent or advisor– b. Involve a mediatorb. Involve a mediator– c. Induce the counterpart to follow one’s own c. Induce the counterpart to follow one’s own

negotiation scriptnegotiation script– d. Adapt the counterpart’s negotiation scriptd. Adapt the counterpart’s negotiation script– e. Coordinate adjustment of both partiese. Coordinate adjustment of both parties– f. Embrace the counterpart’s scriptf. Embrace the counterpart’s script– g. Improvise an approach.g. Improvise an approach.– h. Effect symphony.h. Effect symphony.

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5. Cross-Cultural Negotiations5. Cross-Cultural Negotiations

To pick a strategy, the following steps ought to be To pick a strategy, the following steps ought to be consideredconsidered::– 1. Reflect on your culture’s negotiation practices1. Reflect on your culture’s negotiation practices– 2. Learn the negotiation script common in the 2. Learn the negotiation script common in the

counterpart’s culturecounterpart’s culture– 3. Consider the relationship and contextual cues 3. Consider the relationship and contextual cues – 4. Predict or influence the counterpart’s approach4. Predict or influence the counterpart’s approach– 5. Choose a strategy5. Choose a strategy

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6. Expatriates6. Expatriates

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

Advantages of ExpatriatesAdvantages of Expatriates– Better CommunicationsBetter Communications– Development of TalentDevelopment of Talent

Difficulties of Sending Expatriates AbroadDifficulties of Sending Expatriates Abroad– Cross-Cultural TrainingCross-Cultural Training– MotivationMotivation– CompensationCompensation– Family DiscordFamily Discord– Security RiskSecurity Risk

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6. Expatriates6. Expatriates

The Return of the Expatriate – RepatriationThe Return of the Expatriate – Repatriation– Repatriation is the return of the expatriate Repatriation is the return of the expatriate

employee from overseas.employee from overseas.– GMAC Relocation Services’ 2001 SurveyGMAC Relocation Services’ 2001 Survey

reported a number of effective ways to reduce reported a number of effective ways to reduce attrition rates. These include the following:attrition rates. These include the following: 1. Chances to use international experience1. Chances to use international experience 2. A choice of positions upon return2. A choice of positions upon return 3. Recognition3. Recognition 4. Repatriation career support4. Repatriation career support

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6. Expatriates6. Expatriates

Generalizations About When Expatriates are Generalizations About When Expatriates are Good/BadGood/Bad– Expatriates are important whenever Expatriates are important whenever

communication with the home country office is communication with the home country office is at a premium.at a premium.

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