Lecture Global marketing management (7th edition): Chapter 14 - Masaaki Kotabe, Kristiaan Helsen
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GLOBAL
MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN
Chapter 14 PowerPoint
Sales Management
Chapter Overview
1.
2.
3.
4.
5.
Market Entry Options and Salesforce Strategy
Cultural Considerations
Impact of Culture on Sales Management and
Personal Selling Process
Cross-Cultural Negotiations
Expatriates
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Introduction
• The salesperson is the front line for the company.
• The success or failure of the company rests largely
on the ability of its salesforce.
• International sales management can be divided into
two categories: (1) international strategy
considerations, and (2) intercultural considerations.
• Careful selection, training, supervision, and
evaluation are an integral part of sending
salespersons overseas.
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Exhibit 14-1: International Sales Strategy
and Intercultural Considerations
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1. Market Entry Options
and Sales Force Strategy
• The salesforce 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 (Exhibit 14-2).
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Exhibit 14-2: Degree of Involvement and
Sales Management Issues
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1. Market Entry Options
and Sales Force Strategy
• Low-Involvement Approaches
– Export Management Companies (EMCs)
– Export Trading Companies (ETCs)
• Sogoshosha (Japanese general trading companies)
– Examples: Mitsubishi, Mitsui, Sumitomo, and Marubeni
– Licensing
• Limited Involvement Approach
• Mid-level Involvement Approach
• High-Involvement Approach
• Role of Foreign Governments
– Issues of host countries’ rules and practices
– Companies as “corporate citizens” in the host
countries
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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.
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Avon Sales Representative in Brazil
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3. Cultural Generalization
•
•
•
•
Cultural Generalization
Corporate (Organizational) Culture
Relationship Marketing
Myers–Briggs Type Indicator—MBTI (Exhibit 14-4)
Popular tool for characterizing people which addresses
their cognitive styles and is based on the following four
personal dimensions:
1. Extrovert versus Introvert
2. Intuitive and Sensing
3. Thinking versus Feeling
4. Judging versus Perceiving
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Exhibit 14-3:
Differences
in
Buyer-Seller
Relationship
s
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4. Impact of Culture on Sales Management
and Personal Selling Process
• Sales force management consists of:
•
•
•
•
•
•
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Setting salesforce objectives
Designing salesforce strategy
Recruiting and selecting salespeople
Training salespeople
Supervising salespeople
Evaluating salespeople
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4. Impact of Culture on Sales Management
and Personal Selling Process
• Salesforce Objectives
– Roles the salesforce will play in reaching company
goals
• Salesforce Strategy
– Structures: territorial salesforce, product salesforce,
and customer salesforce
• Recruitment and Selection
• Training
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4. Impact of Culture on Sales Management
and Personal Selling Process
• Supervision
– Motivation and Compensation
– Management Style
– Ethical Perceptions
• Evaluation
– Quantitative Evaluations
– Qualitative Evaluations
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5. Cross-Cultural Negotiations
• Conducting successful cross-cultural negotiations is
a key ingredient for many international business
transactions.
• Stages of Negotiation Process:
–
–
–
–
Non-task surroundings
Task-related information exchange
Persuasion
Concessions and agreement
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Exhibit 14-5: Negotiation Styles
and Guidelines in Five Countries
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5. Cross-Cultural Negotiations
•
Cross-Cultural Negotiation Strategies
a.
b.
c.
d.
e.
f.
g.
h.
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Employ an agent or adviser
Involve a mediator
Induce the counterpart to follow one’s own
negotiation script
Adapt the counterpart’s negotiation script
Coordinate adjustment of both parties
Embrace the counterpart’s script
Improvise an approach
Effect symphony
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5. Cross-Cultural Negotiations
• Consider these steps prior to strategy selection.
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 clues
4. Predict or influence the counterpart’s approach
5. Choose a strategy
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6. Expatriates
• Expatriates are home country personnel sent
overseas to manage local operations in the foreign
market.
• Advantages of Expatriates
– Better Communication
– Development of Talent
• Difficulties of Sending Expatriates Abroad
–
–
–
–
–
Cross-Cultural Training
Motivation
Compensation
Family Discord
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6. Expatriates
• The Return of the Expatriate—Repatriation
– Repatriation is the return of the expatriate employee
from overseas.
– There are a number of effective ways to reduce
attrition rates. These include providing:
•
•
•
•
•
•
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Chances to use international experience
Position choices upon return
Recognition
Repatriation career support
Improving performance evaluation
Family repatriation support
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6. Expatriates
• Generalizations about When Using Expatriates
Is Positive or Negative
– Expatriates are important whenever communication
with the home country office is at a premium.
– Expatriates are especially important in complex
operating environments, when elevated political risk
requires constant monitoring, or when a high cultural
distance separates the home and host countries.
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