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CHAPTER 10: PERSONAL SELLING AND SALES MANAGEMENT - Coggle Diagram
CHAPTER 10: PERSONAL SELLING AND SALES MANAGEMENT
INTERNATIONAL SELLING
importance of salesperson
most direct tie to a customer
final link in culmination of marketing and sales efforts
relationship marketing
long-term alliances rather than one-time
Customer relationship management (CRM)
DESIGNING THE SALES FORCE
First step: things to consider in designing force
analyses of current and potential customers
the selling environment
competition
the firm’s resources and capabilities
cultural influences on sales management
distribution strategies vary by country
sales strategy impacted by cultural elements
degree of market development impacts design of sales force
RECRUITING MARKETING AND SALES PERSONNEL
three recruitment sources
expatriates
advantages
Greater technical training
Better knowledge of company and product line
Proven dependability
May add prestige to product lines for foreign customers
Able to communicate effectively with headquarters’ personnel
disadvantages
High cost
Cultural and legal barriers
Limited number of high-caliber personnel willing to live abroad
virtual expatriates
advantages
Can manage operations and enjoy diversity-driven creativity without having to uproot family and move
disadvantages
Close contact with customers tougher to maintain
Travel is still needed and can be dangerous
local nationals
advantages
More knowledgeable about country’s business structure
More capable of adapting sale pitch to customers
Less cost to maintain
disadvantages
Their advice tends to be ignored by headquarters’ personnel
Language and cultural barriers impact level of influence
Difficult to recruit high-quality sales people
Some cultures view sales as bottom rung of social ladder
third-country nationals
new pool of expatriate created
SELECTING SALES AND MARKETING PERSONNEL
Maturity
Emotional stability
Breadth of knowledge
Positive outlook
Flexibility
Cultural empathy
High level of energy
Enjoyment of travel
assessment of traits
Interviews and role-playing exercises can be used
Referrals often best way to recruit personnel
Some traits vary in importance by culture
TRAINING FOR INTERNATIONAL MARKETING
Depends largely on cultures involved
Content depends on type of sales personnel selected
The Internet sometimes makes training more efficient
Motivating Sales Personnel
Complicated by culture
key motivators
communications
blending company and personal objectives a goal
DESIGNING COMPENSATION SYSTEMS
for expatriates
Designing equitable compensation difficult for companies
Fringe benefits play a major role in many countries
Difference in pay makes it hard to repatriate personnel
Short- versus long-term assignment benefits
for a global sales force
Plans for American countries vary around the globe
Reflect economic, legal, and cultural differences
Asia and Western Europe require more localization
Personal income tax rates relatively low in U.S. and Japan
Work councils (internal labor union committees) set rules about compensation in Europe
Plans around world generally similar to U.S. approach
Japan and southern Europe the most different from U.S.
Recommendations for global compensation plan
Allow local managers to decide mix of incentive versus base pay
Use consistent training and communication schemes worldwide
Don’t assume cultural differences can be managed through incentive plan
EVALUATING AND CONTROLLING SALES REPRESENTATIVES
US (simple)
Emphasis placed on individual performance and sales
elsewhere (complex)
Relationship-oriented cultures especially
PREPARING US PERSONNEL FOR FOREIGN ASSIGNMENTS
Planning
High cost of sending and supporting expatriate
Repatriation a goal
Overcoming Reluctance to Accept a Foreign Assignment
main reasons to refuse
Uprooting family to move to strange environment
Fear that absence will adversely affect career advancement
overcome reservations
Select candidates thoughtfully
Return expatriates to home office at right moment
Reward expatriates with subsequent promotions at home
Provide special compensation packages for hardship
Reducing the Rate of Early Returns
Higher salaries motivate expatriates to remain abroad
Emphasis on collectivism lowers perceived work load and increases job satisfaction
Consider families in cultural adjustment process
Successful Expatriate Repatriation
Family-related problems: financial and lifestyle readjustments
Decreased standard of living after returning to home country
Career-related problems: lack of detailed plan for future of career
Successful Expatriate Repatriation
Steps for success
Commit to reassigning expatriates to meaningful positions
Create a mentor program
Offer a written job guarantee stating what the company is obligated to do for the expatriate upon return
Keep the expatriate in touch with headquarters
Prepare the expatriate and family for repatriation and cultural readjustment
DEVELOPING CULTURAL AWARENESS
Cultural Intelligence Important
Many businesses only focus on functional skills
Growing need to develop cultural awareness
Cultural Skills
Communicate a positive regard and sincere interest in people
Tolerate ambiguity and cope with cultural differences
Display empathy by understanding others’ needs and differences from their point of view
Remain nonjudgmental about the behavior of others
Recognize and control the self-reference criterion
Laugh things off
THE CHANGING PROFILE OF THE GLOBAL MANAGER
factors in company leader choice
Increases in international competition
Globalization of companies
Technology
Demographic shifts
The speed of overall change
FOREIGN LANGUAGE SKILLS
recruiters actively seek multilingual candidates
Shows cultural understanding and overall intelligence
Studies show that lack of language proficiency can cause power struggles and out-group affect in global teams
Language limitations complicate cross-cultural adjustments and damage multinational companies financially
Multilingual individuals also have intercultural sensitivity and they can think more efficiently.
Have opportunity for working in niche markets that require not only your language skills, but also your other career skills.