Chapter 5 Global Selling Process, II Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

Introduction This chapter builds upon Chapter 4: –Interpersonal communication process –Sales negotiation process –Initial steps of the global selling process Interpersonal communication and sales negotiation processes interwoven into the global selling process

Sales Process Finding customers Preparing Relationship building Product offering Offer clarification Securing the purchase Maintaining the relationship

Relationship Building Making a favorable impression and gaining trust of potential customer –Time required varies by culture Number of ways to meet client: –Guaranteed introduction –Referral introduction –Personal introduction –Benefit introduction

Relationship Building Should know appropriate greeting and phrases in customer’s language –Business cards in English and customer’s language –Business cards have taken the place of personal introductions in Japan

What is a Buying Center? One or more people in the B2B customer firm that play different, but important, roles in the buying process. They include: –Initiators –Users –Influencers –Buyer –Gatekeeper –Salesperson must identify and interact correctly with each group of clients playing specific roles

Product Offering Salesperson must select an appropriate method to offer the product to the client This step normally includes one or more of the following styles: –Stimulus response –Mental States –Need satisfaction –Problem solving –Consultative selling

Stimulus Response Salesperson provides appropriate stimulus through words and actions that will derive desired response –Utilized with canned sales presentations –Seen with low involvement products –Purchaser involvement limited –Often not flexible –Used for one-time interactions

Mental States Salesperson attempts to move customer through the purchase stages (attention, interest, desire, action) –Presentation must be well-planned –Limited purchaser involvement –Hard to know what stage customer is in –Difficult when used across cultures –Not well received by professional purchasers

Selling Approaches Need satisfaction – meets and asks questions in an effort to identify and satisfy a customer need –Focuses on customer’s need(s) Problem solving – extension of Need Satisfaction that includes study or team of experts Consultative selling – salesperson functions as a consultant and may even recommend a competitor’s product that best satisfies customer need(s)

Buyer-Seller Meeting Meet with customer at appointed time –Punctuality more important in some cultures –Make favorable impression Sharing information through small talk Presenting gifts Begin meeting by restating last communication as understood –Insure customer’s goals understood –No slick presentations –Explain how the solution solves goals and needs

Offer Clarification Once presentation finished, expect questions –Clarify offer or ask for price concessions –Remember that negotiations take place during the entire process –May request test data or testimonials from satisfied customer –View this step as normal negotiations

Securing the Purchase Simply asking the customer to purchase –Difficult to manipulate buyer into purchase –This is especially true in B2B interactions Best approach is the direct one –Since our product addresses your need(s), shall we agree to the purchase? –Some countries, like China, seller may await the buyer to raise issue of purchase

Maintaining the Relationship Final, but very important step in sales process –Satisfied customers purchase again and again –Customer wants supplier they can trust and who will be there when problems arise –Customer satisfaction very important in Japan –B2B firms track customer satisfaction levels –Salesperson must have authority to keep customer satisfied

Ethical Considerations Personal selling generates buyer complaints –Salespersons believed to have low ethical standards –Some firms operate from a selling orientation –Most complaints attributable to management Setting unrealistic sales goals/quotas Rewarding for sale even when questionable behavior is involved

Role of Salesperson That of a boundary spanner –Must bring buyer and seller together –Initial positions often far apart Seller wants: highest price, standard product, longest delivery, and no service Buyer wants: lowest price, custom product, shortest delivery, and service contract Salesperson must mediate

Role Conflict Salesperson experiences role conflict when two or more parties want her to comply with their expectations –Each party can reward or punish salesperson Sales manager can give or withhold raise Customer can order or withhold purchase Family can give or withhold love, approval Salesperson must attempt to satisfy concerns of all parties – not an easy task!

Chapter 5 Summary The sales process is completed –Approach must be modified based upon culture of buyer –No “tricks” to selling; just hard work! Salesperson may be viewed as being less than ethical because of role played Role conflict can occur in B2B sales Ethical behavior always the best approach

Discussion Questions What is the benefit of the global salesperson making informal sales presentations? What kinds of questions might the prospective buyer have for the global salesperson after the presentation? What is role conflict and how might it affect the global selling process?