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

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 Chapter 15 Sales Management Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 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

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 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. Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

1. Market Entry Options and Sales Force Strategy 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) Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

1. Market Entry Options and Sales Force Strategy (contd.) 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

2. Cultural Considerations 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

2. Cultural Considerations (contd.) 2. Sensing vs. Intuitive 3. Thinking vs. Feeling 4. Judging vs. Perceiving Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

3. Impact of Culture on Sales Management and Personal Selling Process Sales force management consists of the following six steps: Setting salesforce objectives Designating salesforce strategy Recruiting and selecting salespeople Training salespeople Supervising salespeople Evaluating salespeople Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 3. Impact of Culture on Sales Management and Personal Selling Process (contd.) 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 3. Impact of Culture on Sales Management and Personal Selling Process (contd.) Supervising Motivation and Compensation Management Style Ethical Perceptions Evaluating Quantitative evaluations Qualitative evaluations Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

4. 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

4. Cross-Cultural Negotiations (contd.) 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

4. Cross-Cultural Negotiations (contd.) 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

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

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 5. 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 Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 5. Expatriates (contd.) 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

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 5. Expatriates (contd.) 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. Chapter 15 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 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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