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CH 14

This document discusses international sales management and cultural considerations. It covers market entry options and salesforce strategy, the impact of culture on sales management and personal selling processes, cross-cultural negotiations, and using expatriates. Key topics include cultural generalizations, relationship marketing, negotiation styles in different countries, challenges of sending expatriates abroad, and repatriating expatriates.

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Deepanshu Saraswat
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
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22 views21 pages

CH 14

This document discusses international sales management and cultural considerations. It covers market entry options and salesforce strategy, the impact of culture on sales management and personal selling processes, cross-cultural negotiations, and using expatriates. Key topics include cultural generalizations, relationship marketing, negotiation styles in different countries, challenges of sending expatriates abroad, and repatriating expatriates.

Uploaded by

Deepanshu Saraswat
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
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1

Chapter 14

Sales Management
Chapter Overview
2

1. Market Entry Options and Salesforce


Strategy
2. Cultural Considerations
3. Impact of Culture on Sales Management
and Personal Selling Process
4. Cross-Cultural Negotiations
5. Expatriates
Introduction
3

 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.
International Sales Strategy and
Intercultural Considerations
4
1. Market Entry Options and
Sales Force Strategy
5

 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 (
Degree of Involvement and Sales
Management Issues
6
1. Market Entry Options and
Sales Force Strategy
7

 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
countries
2. Cultural Considerations
8

 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.
3. Cultural Generalization
9

 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. Introvert
2. Sensing vs. Intuitive
3. Thinking vs. Feeling
4. Judging vs. Perceiving
Myers-Briggs Type Indicator of
Personal Characteristics
10
4. Impact of Culture on Sales
Management and Personal Selling
11 Process
 Sales force management consists of:

1. Setting salesforce objectives


2. Designating salesforce strategy
3. Recruiting and selecting salespeople
4. Training salespeople
5. Supervising salespeople
6. Evaluating salespeople
4. Impact of Culture on Sales
Management and Personal Selling
12 Process
 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
4. Impact of Culture on Sales
Management and Personal Selling
13 Process
 Supervising
 Motivation and Compensation
 Management Style
 Ethical Perceptions
 Evaluating
 Quantitative evaluations
 Qualitative evaluations
5. Cross-Cultural Negotiations
14

 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
Negotiation Styles and Guidelines
in Five Countries
15
5. Cross-Cultural Negotiations
16

 Cross-Cultural Negotiation Strategies


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
g. Improvise an approach.
h. Effect symphony.
Culturally Responsive Strategies
and Their Feasibility
17
5. Cross-Cultural Negotiations
18

 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 cues
4. Predict or influence the counterpart’s
approach
5. Choose a strategy
6. Expatriates
19

 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
6. Expatriates
20

 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
6. Expatriates
21

 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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