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Chapter sales management. After studying this chapter you will be able to understand: How global marketing management differs from international marketing management, the need for planning to achieve company goals, the important factors for each alternative marketentry strategy, the increasing importance of international strategic alliances.
GLOBAL MARKETING MANAGEMENT Seventh Edition MASAAKI KOTABKE | KRISTIAAN HELSEN Chapter 14 PowerPoint Sales Management Chapter Overview Market Entry Options and Salesforce Strategy Cultural Considerations Impact of Culture on Sales Management and Personal Selling Process Cross-Cultural Negotiations Expatriates Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 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 Chapter 14 Copyright © 2017 John Wiley & Sons, Inc Exhibit 14-1: International Sales Strategy and Intercultural Considerations Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 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) Chapter 14 Copyright © 2017 John Wiley & Sons, Inc Exhibit 14-2: Degree of Involvement and Sales Management Issues Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 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 Copyright © 2017 John Wiley & Sons, Chapter 14 Inc 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 Chapter 14 Copyright © 2017 John Wiley & Sons, Inc Avon Sales Representative in Brazil Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 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: Extrovert versus Introvert Intuitive and Sensing Thinking versus Feeling Judging versus Perceiving Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 10 Exhibit 14-3: Differences in Buyer-Seller Relationship s Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 11 Impact of Culture on Sales Management and Personal Selling Process • Sales force management consists of: • • • • • • Chapter 14 Setting salesforce objectives Designing salesforce strategy Recruiting and selecting salespeople Training salespeople Supervising salespeople Evaluating salespeople Copyright © 2017 John Wiley & Sons, Inc 12 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 Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 13 Impact of Culture on Sales Management and Personal Selling Process • Supervision – Motivation and Compensation – Management Style – Ethical Perceptions • Evaluation – Quantitative Evaluations – Qualitative Evaluations Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 14 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 Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 15 Exhibit 14-5: Negotiation Styles and Guidelines in Five Countries Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 16 Cross-Cultural Negotiations • Cross-Cultural Negotiation Strategies a b c d e f g h Chapter 14 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 Copyright © 2017 John Wiley & Sons, Inc 17 Cross-Cultural Negotiations • Consider these steps prior to strategy selection Reflect on your culture’s negotiation practices Learn the negotiation script common in the counterpart’s culture Consider the relationship and contextual clues Predict or influence the counterpart’s approach Choose a strategy Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 18 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 Security Risk Copyright © 2017 John Wiley & Sons, Chapter 14 Inc 19 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: • • • • • • Chapter 14 Chances to use international experience Position choices upon return Recognition Repatriation career support Improving performance evaluation Family repatriation support Copyright © 2017 John Wiley & Sons, Inc 20 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 Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 21 ... are equally important (Exhibit 1 4- 2) Chapter 14 Copyright © 2017 John Wiley & Sons, Inc Exhibit 1 4- 2: Degree of Involvement and Sales Management Issues Chapter 14 Copyright © 2017 John Wiley... versus Feeling Judging versus Perceiving Chapter 14 Copyright © 2017 John Wiley & Sons, Inc 10 Exhibit 1 4- 3: Differences in Buyer-Seller Relationship s Chapter 14 Copyright © 2017 John Wiley & Sons,... sending salespersons overseas Chapter 14 Copyright © 2017 John Wiley & Sons, Inc Exhibit 1 4- 1: International Sales Strategy and Intercultural Considerations Chapter 14 Copyright © 2017 John Wiley