1. 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

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

3. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

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

5. 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

6. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

7. 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

8. 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

9. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

10. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

11. 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

12. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

14. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

15. 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

16. 4. Cross-Cultural Negotiations (contd.)
4. Predict or influence the counterpart’s approach
5. Choose a strategy
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

17. 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
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

18. 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:
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19. 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.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

20. 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.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

21. Copyright © John Wiley & Sons, Inc., 2004
Chapter 15
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004