1. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1 Global Marketing Management Masaaki Kotabe & Kristiaan Helsen Third Edition John Wiley & Sons, Inc., 2004

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

3. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 3 Chapter Overview 1. Market Entry Options and Sales Force Strategy Strategy 2. Cultural Considerations 3. Impact of Culture on Sales Management and Personal Selling Process and Personal Selling Process 4. Cross-Cultural Negotiations 5. Expatriates

4. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 4 Introduction The salesperson is the front line for many companies. 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. 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. 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. Issues such as recruiting, training, supervising, and evaluating sales force are an integral part of international sales management.

5. Chapter 15Kotabe & 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. 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). 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: Low-Involvement Options include: –Export Management Companies(EMCs) –Export Trading Companies (ETCs)

6. Chapter 15Kotabe & 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 Examples: Mitsubishi, Mitsui, Sumitomo, and Marubeni Midlevel Involvement Midlevel Involvement High-Involvement High-Involvement Role of Foreign Governments Role of Foreign Governments –Issues of host governments’ rules and practices –Companies as “corporate citizens” in the host countries

7. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 7 2. Cultural Considerations Personal Selling Personal Selling Cultural Generalization Cultural Generalization Organization (Corporate) Culture Organization (Corporate) Culture Relationship Marketing Relationship Marketing Myers-Briggs Type Indicator – MBTI (see Exhibit 15-3) 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

8. Chapter 15Kotabe & 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

9. Chapter 15Kotabe & 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: Sales force management consists of the following six steps: 1.Setting salesforce objectives 2.Designating salesforce strategy 3. Recruiting and selecting salespeople 4.Training salespeople 5.Supervising salespeople 6.Evaluating salespeople

10. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 10 3. Impact of Culture on Sales Management and Personal Selling Process (contd.) Salesforce Objectives Salesforce Objectives –What the salesforce will be asked to do Salesforce Strategy Salesforce Strategy –Sales structures: Territorial salesforce, product salesforce, and customer salesforce Recruiting and Selecting Recruiting and Selecting Training Training

11. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 11 3. Impact of Culture on Sales Management and Personal Selling Process (contd.) Supervising Supervising –Motivation and Compensation –Management Style –Ethical Perceptions Evaluating Evaluating –Quantitative evaluations –Qualitative evaluations

12. Chapter 15Kotabe & 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. Conducting successful cross-cultural negotiations is a key ingredient for many international business transactions. Stages of the Negotiation Process: Stages of the Negotiation Process: –Non-task surroundings –Task-related information exchange –Persuasion –Concessions and agreement

14. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 14 4. Cross-Cultural Negotiations (contd.) Cross-Cultural Negotiation Strategies include the following: 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

15. Chapter 15Kotabe & 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: 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

16. Chapter 15Kotabe & 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

17. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 17 5. Expatriates Expatriates are home-country personnel sent overseas to manage local operations in the foreign market. Expatriates are home-country personnel sent overseas to manage local operations in the foreign market. Advantages of Expatriates Advantages of Expatriates –Better Communications –Development of Talent Difficulties of Sending Expatriates Abroad Difficulties of Sending Expatriates Abroad –Cross-Cultural Training –Motivation –Compensation

18. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 18 5. Expatriates (contd.) –Family Discord –Security Risk The Return of the Expatriate – Repatriation 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:

19. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 19 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 Generalizations About When Expatriates are Good/Bad –Expatriates are important whenever communication with the home country office is at a premium.

20. Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 20 5. Expatriates (contd.) –Expatriates are especially important in complex operating environments, or when elevated political risk requires constant monitoring.

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