Global Marketing Management, 5e
1
Chapter 14
Sales and Cross-cultural
Management
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Chapter Overview
2
1. Market Entry Options and Salesforce
Strategy
2. Cultural Considerations
3. Impact of Culture on Sales Management
and Personal Selling Process
4. Cross-Cultural Negotiations
5. Expatriates
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Introduction
3




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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Exhibit 14-1: International Sales Strategy
and Intercultural Considerations
4
Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 15
1.
Market Entry Options
and Sales Force Strategy
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).
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Exhibit 14-2: Degree of Involvement and
Sales Management Issues
6
Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 15
1.
Market Entry Options
and Sales Force Strategy
7

Low-Involvement Options
 Export
Management Companies(EMCs)
 Export Trading Companies (ETCs)
 Sogoshosha



(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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
2. Cultural Considerations
8

Personal Selling
 At
the level of personal selling, there is little true
international selling.
 The sales task tends to take place on a national basis.
 Personal selling is predominantly a personal activity.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
3. Cultural Generalization
9




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 four personal
dimensions:
1. Extrovert vs. Introvert
2. Sensing vs. Intuitive
3. Thinking vs. Feeling
4. Judging vs. Perceiving
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Exhibit 14-3: Myers-Briggs Type Indicator
of Personal Characteristics
10
Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 15
4. Impact of Culture on Sales Management
and Personal Selling Process
11

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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
4. Impact of Culture on Sales Management
and Personal Selling Process
12

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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
5. Cross-Cultural Negotiations
14


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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Exhibit 14-4: Negotiation Styles and
Guidelines in Five Countries
15
Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 15
5. Cross-Cultural Negotiations
16

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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
Exhibit 14-5: Culturally Responsive
Strategies and Their Feasibility
17
Copyright (c) 2007 John Wiley & Sons, Inc.
Chapter 15
5. Cross-Cultural Negotiations
18

Consider these steps prior to 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
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
6. Expatriates
19



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
 Family Discord
 Security Risk
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
6. Expatriates
20

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:




Chances to use international experience
A choice of positions upon return
Recognition
Repatriation career support
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14
6. Expatriates
21

Generalizations for Using 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.
Copyright (c) 2009 John Wiley & Sons, Inc.
Chapter 14