Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1 Global Marketing...

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

1

Global Marketing ManagementGlobal Marketing Management

Masaaki Kotabe & Kristiaan HelsenMasaaki Kotabe & Kristiaan HelsenThird EditionThird Edition

John Wiley & Sons, Inc., 2004John Wiley & Sons, Inc., 2004


2

Chapter 15Chapter 15

Sales ManagementSales Management


3

Chapter OverviewChapter Overview

1. Market Entry Options and Sales Force1. Market Entry Options and Sales Force

StrategyStrategy

2. Cultural Considerations2. Cultural Considerations

3. Impact of Culture on Sales Management3. Impact of Culture on Sales Management

and Personal Selling Processand Personal Selling Process

4. Cross-Cultural Negotiations4. Cross-Cultural Negotiations

5. Expatriates5. Expatriates


4

IntroductionIntroduction

The salesperson is the front line for many The salesperson is the front line for many companies.companies.

The success or failure of the company rests largely The success or failure of the company rests largely on the ability of its sales force.on the ability of its sales force.

International sales management can be divided International sales management can be divided into two categories: (a) international strategy into two categories: (a) international strategy considerations, and (b) intercultural considerations, and (b) intercultural considerations.considerations.

Issues such as recruiting, training, supervising, Issues such as recruiting, training, supervising, and evaluating sales force are an integral part of and evaluating sales force are an integral part of international sales management.international sales management.


5

1. Market Entry Options and 1. Market Entry Options and Sales Force StrategySales Force Strategy

The sales management “process”The sales management “process” starts with starts with setting objectives and strategy.setting objectives and strategy.

Other issues include: recruiting, training, Other issues include: recruiting, training, supervising, and evaluating. In addition, market supervising, and evaluating. In addition, market entry methods and level of integration are equally entry methods and level of integration are equally important (see exhibit 15-2).important (see exhibit 15-2).

Low-Involvement Options includeLow-Involvement Options include::– Export Management Companies(EMCs)Export Management Companies(EMCs)– Export Trading Companies (ETCs)Export Trading Companies (ETCs)


6

1. Market Entry Options and 1. Market Entry Options and Sales Force Strategy (contd.)Sales Force Strategy (contd.)

» SogoshoshaSogoshosha (Japanese general trading (Japanese general trading companies)companies)

Examples:Examples: Mitsubishi, Mitsui, Sumitomo, Mitsubishi, Mitsui, Sumitomo, and Marubeniand Marubeni

Midlevel InvolvementMidlevel Involvement High-InvolvementHigh-Involvement Role of Foreign GovernmentsRole of Foreign Governments

– Issues of host governments’ rules and practicesIssues of host governments’ rules and practices– Companies as “corporate citizens” in the host Companies as “corporate citizens” in the host

countriescountries


7

2. Cultural Considerations2. Cultural Considerations

Personal SellingPersonal Selling Cultural GeneralizationCultural Generalization Organization (Corporate) CultureOrganization (Corporate) Culture Relationship MarketingRelationship Marketing Myers-Briggs Type IndicatorMyers-Briggs Type Indicator – MBTI (see Exhibit – MBTI (see Exhibit

15-3)15-3)– Popular tool for characterizing people which Popular tool for characterizing people which

addresses their cognitive styles and is based on addresses their cognitive styles and is based on the following the following four personal dimensionsfour personal dimensions::

1. Extrovert vs. Introvert1. Extrovert vs. Introvert


8

2. Cultural Considerations (contd.)2. Cultural Considerations (contd.)

2. Sensing vs. Intuitive2. Sensing vs. Intuitive

3. Thinking vs. Feeling3. Thinking vs. Feeling

4. Judging vs. Perceiving4. Judging vs. Perceiving


9

3. Impact of Culture on Sales 3. Impact of Culture on Sales Management and Personal Selling Management and Personal Selling

ProcessProcess

Sales force management consists of the Sales force management consists of the following six stepsfollowing six steps::

1.1. Setting salesforce objectivesSetting salesforce objectives2.2. Designating salesforce strategyDesignating salesforce strategy3.3. Recruiting and selecting salespeopleRecruiting and selecting salespeople4.4. Training salespeopleTraining salespeople5.5. Supervising salespeopleSupervising salespeople6.6. Evaluating salespeopleEvaluating salespeople


10


Process (contd.)Process (contd.) Salesforce ObjectivesSalesforce Objectives

– What the salesforce will be asked to doWhat the salesforce will be asked to do Salesforce StrategySalesforce Strategy

– Sales structuresSales structures: Territorial salesforce, product : Territorial salesforce, product salesforce, and customer salesforcesalesforce, and customer salesforce

Recruiting and SelectingRecruiting and Selecting TrainingTraining


11


Process (contd.)Process (contd.) SupervisingSupervising

– Motivation and CompensationMotivation and Compensation– Management StyleManagement Style– Ethical PerceptionsEthical Perceptions

EvaluatingEvaluating– Quantitative evaluationsQuantitative evaluations– Qualitative evaluationsQualitative evaluations


12

4. Cross-Cultural Negotiations4. Cross-Cultural Negotiations

Conducting successful cross-cultural negotiations Conducting successful cross-cultural negotiations is a key ingredient for many international business is a key ingredient for many international business transactions.transactions.

Stages of the Negotiation Process:Stages of the Negotiation Process:– Non-task surroundingsNon-task surroundings– Task-related information exchangeTask-related information exchange– PersuasionPersuasion– Concessions and agreementConcessions and agreement


14

4. Cross-Cultural Negotiations (contd.)4. Cross-Cultural Negotiations (contd.)

Cross-Cultural Negotiation Strategies include the Cross-Cultural Negotiation Strategies include the following:following:– a. Employ an agent or advisora. Employ an agent or advisor– b. Involve a mediatorb. Involve a mediator– c. Induce the counterpart to follow one’s own c. Induce the counterpart to follow one’s own

negotiation scriptnegotiation script– d. Adapt the counterpart’s negotiation scriptd. Adapt the counterpart’s negotiation script– e. Coordinate adjustment of both partiese. Coordinate adjustment of both parties– f. Embrace the counterpart’s scriptf. Embrace the counterpart’s script


15


– g. Improvise an approach.g. Improvise an approach.– h. Effect symphony.h. Effect symphony.

To pick a strategy, the following steps ought to be To pick a strategy, the following steps ought to be consideredconsidered::– 1. Reflect on your culture’s negotiation 1. Reflect on your culture’s negotiation

practicespractices– 2. Learn the negotiation script common in the 2. Learn the negotiation script common in the

counterpart’s culturecounterpart’s culture– 3. Consider the relationship and contextual 3. Consider the relationship and contextual

cues cues


16


– 4. Predict or influence the counterpart’s 4. Predict or influence the counterpart’s approachapproach

– 5. Choose a strategy5. Choose a strategy


17

5. Expatriates5. Expatriates

ExpatriatesExpatriates are home-country personnel sent are home-country personnel sent overseas to manage local operations in the foreign overseas to manage local operations in the foreign market.market.

Advantages of ExpatriatesAdvantages of Expatriates– Better CommunicationsBetter Communications– Development of TalentDevelopment of Talent

Difficulties of Sending Expatriates AbroadDifficulties of Sending Expatriates Abroad– Cross-Cultural TrainingCross-Cultural Training– MotivationMotivation– CompensationCompensation


18

5. Expatriates (contd.)5. Expatriates (contd.)

– Family DiscordFamily Discord– Security RiskSecurity Risk

The Return of the Expatriate – RepatriationThe Return of the Expatriate – Repatriation– Repatriation is the return of the expatriate Repatriation is the return of the expatriate

employee from overseas.employee from overseas.– GMAC Relocation Services’ 2001 SurveyGMAC Relocation Services’ 2001 Survey

reported a number of effective ways to reduce reported a number of effective ways to reduce attrition rates. These include the following:attrition rates. These include the following:


19


– 1. Chances to use international experience1. Chances to use international experience– 2. A choice of positions upon return2. A choice of positions upon return– 3. Recognition3. Recognition– 4. Repatriation career support4. Repatriation career support

Generalizations About When Expatriates are Generalizations About When Expatriates are Good/BadGood/Bad– Expatriates are important whenever Expatriates are important whenever

communication with the home country office is communication with the home country office is at a premium.at a premium.


20


– Expatriates are especially important in complex Expatriates are especially important in complex operating environments, or when elevated operating environments, or when elevated political risk requires constant monitoring.political risk requires constant monitoring.

Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1 Global Marketing...

Documents

Transcript of Chapter 15Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1 Global Marketing...