This document discusses international sales management and intercultural considerations. It covers several key topics: market entry options and sales force strategy; cultural considerations and their impact on the sales process; cross-cultural negotiations; and using expatriates. The success of a company's international sales depends on effectively managing these strategic and cultural issues.
2. Topics to be discussed:
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
3. 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.
5. 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 (Exhibit 14-2).
1. Market Entry Options
and Sales Force Strategy
7. 1. Market Entry Options
and Sales Force Strategy
Low-Involvement Options
Export Management Companies(EMCs)
Export Trading Companies (ETCs)
So g o sho sha (Japanese general trading companies)
Examples: Mitsubishi, Mitsui, Sumitomo, and
Marubeni
Mid-level Involvement
High-Involvement
Role of Foreign Governments
Issues of host governments’ rules and practices
Companies as “corporate citizens” in the host
countries
8. 2. Cultural Considerations
Personal Selling
At the level of personal selling, there is little true
inte rnatio nalselling.
The sales task tends to take place on a national
basis.
Personal selling is predominantly a personal
activity.
9. 3. Cultural Generalization
Cultural Generalization
Organization (Corporate) Culture
Relationship Marketing
Myers-Briggs Type Indicator–MBTI (Exhibit 14-3)
Popular tool for characterizing people which
addresses their cognitive styles and is based on the
following fourpersonal dimensions:
1. Extrovert vs. Introvert
2. Sensing vs. Intuitive
3. Thinking vs. Feeling
4. Judging vs. Perceiving
11. 4. Impact of Culture on Sales
Management and Personal Selling
Process
Sales force management consists of:
1. Setting salesforce objectives
2. Designating salesforce strategy
3. Recruiting and selecting salespeople
4. Training salespeople
5. Supervising salespeople
6. Evaluating salespeople
12. Salesforce Objectives
What the salesforce will be asked to do
Salesforce Strategy
Sale s structure s : territorial salesforce, product
salesforce, and customer salesforce
Recruiting and Selecting
Training
4. Impact of Culture on Sales
Management and Personal Selling
Process
13. Supervising
Motivation and Compensation
Management Style
Ethical Perceptions
Evaluating
Quantitative evaluations
Qualitative evaluations
4. Impact of Culture on Sales
Management and Personal Selling
Process
14. 5. 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
16. 5. Cross-Cultural Negotiations
Cross-Cultural Negotiation Strategies
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
g. Improvise an approach.
h. Effect symphony.
18. 5. Cross-Cultural Negotiations
Considerthese steps priorto strategy selection.
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
4. Predict or influence the counterpart’s approach
5. Choose a strategy
19. 6. 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 SendingExpatriates Abroad
Cross-Cultural Training
Motivation
Compensation
Family Discord
Security Risk
20. 6. Expatriates
The Return of the Expatriate – Repatriation
Repatriation is the return of the expatriate
employee from overseas.
G MAC Re lo catio n Se rvice s’ 20 0 1 Surve y
reported a number of effective ways to reduce
attrition rates. These include the following:
Chances to use international experience
A choice of positions upon return
Recognition
Repatriation career support
21. 6. Expatriates
Generalizations forUsing Expatriates
Expatriates are important whenever
communication with the home country office is at
a premium.
Expatriates are especially important in complex
operating environments, or when elevated
political risk requires constant monitoring.