Global Marketing Management, 5e Chapter 14Copyright (c) 2009 John Wiley & Sons, Inc. 1 Chapter 14...

Global Marketing Management, 5e

Chapter 14Copyright (c) 2009 John Wiley & Sons, Inc.

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Chapter 14

Sales and Cross-cultural Management

Chapter Overview

1. Market Entry Options and Salesforce Strategy2. Cultural Considerations3. Impact of Culture on Sales Management and Personal Selling Process4. Cross-Cultural Negotiations5. Expatriates


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Introduction

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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Exhibit 14-1: International Sales Strategy and Intercultural Considerations

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 (Exhibit 14-2).


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1. Market Entry Options and Sales Force Strategy


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Exhibit 14-2: Degree of Involvement and Sales Management Issues

1. Market Entry Options and Sales Force Strategy

Low-Involvement Options Export Management Companies(EMCs) Export Trading Companies (ETCs)

Sogoshosha (Japanese general trading companies)

Examples: Mitsubishi, Mitsui, Sumitomo, and Marubeni

Mid-level Involvement High-Involvement Role of Foreign Governments

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

countriesChapter 14Copyright (c) 2009 John Wiley & Sons, Inc.

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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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3. Cultural Generalization

Cultural Generalization Organization (Corporate) Culture Relationship Marketing Myers-Briggs Type Indicator–MBTI (Exhibit 14-

3) Popular tool for characterizing people which addresses their cognitive styles and is based on the following four personal dimensions:

1. Extrovert vs. Introvert2. Sensing vs. Intuitive3. Thinking vs. Feeling4. Judging vs. Perceiving


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Exhibit 14-3: Myers-Briggs Type Indicator of Personal Characteristics

4. Impact of Culture on Sales Management and Personal Selling Process Sales force management consists of:

1. Setting salesforce objectives2. Designating salesforce strategy3. Recruiting and selecting salespeople4. Training salespeople5. Supervising salespeople6. Evaluating salespeople


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

Supervising Motivation and Compensation Management Style Ethical Perceptions

Evaluating Quantitative evaluations Qualitative evaluations


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

5. Cross-Cultural Negotiations

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


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Exhibit 14-4: Negotiation Styles and Guidelines in Five Countries


Cross-Cultural Negotiation Strategies a. Employ an agent or advisor

b. Involve a mediatorc. Induce the counterpart to follow one’s own

negotiationscript

d. Adapt the counterpart’s negotiation scripte. Coordinate adjustment of both partiesf. Embrace the counterpart’s scriptg. Improvise an approach.h. Effect symphony.


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Exhibit 14-5: Culturally Responsive Strategies and Their Feasibility


Consider these steps prior to strategy selection.1. Reflect on your culture’s negotiation practices2. Learn the negotiation script common in the

counterpart’s culture3. Consider the relationship and contextual cues 4. Predict or influence the counterpart’s

approach5. 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 Communications Development of Talent

Difficulties of Sending Expatriates Abroad Cross-Cultural Training Motivation Compensation Family Discord Security Risk


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6. Expatriates

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: Chances to use international experience A choice of positions upon return Recognition Repatriation career support


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6. Expatriates

Generalizations for Using Expatriates Expatriates are important whenever

communication with the home country office is at a premium.

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


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Global Marketing Management, 5e Chapter 14Copyright (c) 2009 John Wiley & Sons, Inc. 1 Chapter 14...

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