Transcript SALES MANAGEMENT Chapter Fifteen

Global Marketing Management
Masaaki Kotabe & Kristiaan Helsen
Third Edition
John Wiley & Sons, Inc., 2004
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
1
Chapter 15
Sales Management
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
2
Chapter Overview
1. Market Entry Options and Sales Force
Strategy
2. Cultural Considerations
3. Impact of Culture on Sales Management
and Personal Selling Process
4. Cross-Cultural Negotiations
5. Expatriates
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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Introduction
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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.
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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1. Market Entry Options and
Sales Force Strategy
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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).
Low-Involvement Options include:
– Export Management Companies(EMCs)
– Export Trading Companies (ETCs)
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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1. Market Entry Options and
Sales Force Strategy (contd.)
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» 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
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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2. Cultural Considerations
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Personal Selling
Cultural Generalization
Organization (Corporate) Culture
Relationship Marketing
Myers-Briggs Type Indicator – MBTI (see Exhibit
15-3)
– Popular tool for characterizing people which
addresses their cognitive styles and is based on
the following four personal dimensions:
1. Extrovert vs. Introvert
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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2. Cultural Considerations (contd.)
2. Sensing vs. Intuitive
3. Thinking vs. Feeling
4. Judging vs. Perceiving
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Impact of Culture on Sales
Management and Personal Selling
Process
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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
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Impact of Culture on Sales
Management and Personal Selling
Process (contd.)
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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
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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3. Impact of Culture on Sales
Management and Personal Selling
Process (contd.)
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Supervising
– Motivation and Compensation
– Management Style
– Ethical Perceptions
Evaluating
– Quantitative evaluations
– Qualitative evaluations
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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4. Cross-Cultural Negotiations
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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
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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4. Cross-Cultural Negotiations (contd.)
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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
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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4. Cross-Cultural Negotiations (contd.)
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– g. Improvise an approach.
– h. Effect symphony.
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
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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4. Cross-Cultural Negotiations (contd.)
– 4. Predict or influence the counterpart’s
approach
– 5. Choose a strategy
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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5. Expatriates
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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
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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5. Expatriates (contd.)
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– Family Discord
– Security Risk
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:
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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5. Expatriates (contd.)
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– 1. Chances to use international experience
– 2. A choice of positions upon return
– 3. Recognition
– 4. Repatriation career support
Generalizations About When Expatriates are
Good/Bad
– Expatriates are important whenever
communication with the home country office is
at a premium.
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Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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5. Expatriates (contd.)
– Expatriates are especially important in complex
operating environments, or when elevated
political risk requires constant monitoring.
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
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Copyright © John Wiley & Sons, Inc., 2004
Chapter 15
Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004
21