international marketing 14 edition chapter17
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TRANSCRIPT
I n t e r n a t i o n a l M a r k e t i n g I n t e r n a t i o n a l M a r k e t i n g
Personal Selling and
Sales Management
Chapter 17
1 4 t h E d i t i o nP h i l i p R. C a t e o r a
M a r y C. G i l l yJ o h n L . G r a h a m
McGraw-Hill/IrwinInternational Marketing 14/e
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
17-2
What Should You Learn?What Should You Learn?
• The role of interpersonal selling in international marketing
• The considerations in designing an international sales force
• The steps to recruiting three types of international sales people
• Selection criteria for international sales and marketing positions
17-3
What Should You Learn?What Should You Learn?
• The special training needs of international personnel
• Motivation techniques for international sales representatives
• How to design compensation systems for an international sales force
• How to prepare Americans for foreign assignments
• The changing profile of the global sales and marketing manager
17-4
Global PerspectiveInternational Assignments are Glamorous, Right?
Global PerspectiveInternational Assignments are Glamorous, Right?
• Job security
• Adjustment to other cultures
• Readjustment upon return to U.S.
• Will an international assignment really help your career?
17-5
Designing the Sales ForceDesigning the Sales Force
• Relationship marketing and customer relationship management
• Decisions must be made regarding the numbers, characteristics, and assignments of sales personnel
• Different market requirements regarding direct sales and customer approach
• Territory allocation
• Customer call plans
17-6
Recruiting Marketing and Sales PersonnelRecruiting Marketing and Sales Personnel
• The largest personnel requirement abroad for most companies is the sales force
• Expatriates
– Numbers are declining– Important for highly technical or involved products– High cost– Cultural and legal barriers– Limited number of high-caliber personnel willing to live abroad
• Virtual expatriates
– Manage operations in other countries but don’t live there
17-7
Recruiting Marketing and Sales Personnel Recruiting Marketing and Sales Personnel
• Local nationals
– Transcend both cultural and legal barriers– Familiar with distribution systems and referral networks– Headquarters personnel may ignore their advice– Lack of availability– Sales positions viewed negatively
• Third-country nationals
– Expatriates working for a foreign company
• Host-country nationals
– Work restrictions
17-8
The 20 Most Expensive Cities to Live on the Planet (in order)
The 20 Most Expensive Cities to Live on the Planet (in order)
Exhibit 17.1
17-9
Selecting Sales and Marketing Personnel
Selecting Sales and Marketing Personnel
• Management must define precisely what is expected of people
• Prime requisites– Maturity– Emotional stability– Breadth of knowledge– Positive outlook– Flexibility– Cultural empathy– Energetic and enjoy travel
• Mistakes can be costly• A manager’s culture affects personnel decisions
17-10
Training for International MarketingTraining for International Marketing
• The nature of the training program depends on:
– The home culture of the sales person– The culture of the business system and foreign market
• Continual training is important in foreign markets
• Companies should provide home-office personnel with cross-cultural training
• The Internet now makes some kinds of sales training much more efficient
17-11
Personal Selling Tipsfrom Brussels to Bangkok
Personal Selling Tipsfrom Brussels to Bangkok
Exhibit 17.2
17-12
Motivating Sales PersonnelMotivating Sales Personnel
• National differences must always be considered when motivating the marketing force
• Individual incentives that work effectively in the U.S. can fail completely in other cultures
• Communications are important in maintaining high levels of motivation
• A company needs to make clear the opportunities for growth within the firm
17-13
Salespeople’s Distribution of 100 Points among Rewards in Terms of Their Importance
Salespeople’s Distribution of 100 Points among Rewards in Terms of Their Importance
Exhibit 17.3
17-14
Designing Compensation Systems for Expatriates
Designing Compensation Systems for Expatriates
• Fringe benefits
• Compensations comparisons between the home office and abroad
• Short-term assignment compensation
• Using a compensation program to recruit, develop, motivate, or retain personnel
17-15
Global Similarity to U.S. Compensations Plans
Global Similarity to U.S. Compensations Plans
Exhibit 17.4
17-16
A Compensation Blueprint How IBM Pays 140,000 Sales Executives Worldwide
A Compensation Blueprint How IBM Pays 140,000 Sales Executives Worldwide
Exhibit 17.5
17-17
Designing Compensation Systems for a Global Sales Force
Designing Compensation Systems for a Global Sales Force
• Involve representatives from key countries
• Allow local managers to decide the mix between base and incentive pay
• Use consistent performance measures (results paid for) and emphasis on each measure
• Allow local countries flexibility in implementations
• Use consistent communication and training themes worldwide
17-18
Designing Compensation Systems for a Global Sales Force
Designing Compensation Systems for a Global Sales Force
• Don’t design the plan centrally and dictate to local offices
• Don’t create a similar framework for jobs with different responsibilities
• Don’t require consistency on every performance measure within the incentive plan
• Don’t assume cultural differences can be managed through the incentive plan
• Don’t proceed without the support of senior sales executives worldwide
17-19
Evaluating and Controlling Sales Representatives
Evaluating and Controlling Sales Representatives
• In the U.S., emphasis is placed on individual performance– Which can easily be measured by sales revenues generated
• In many countries evaluation is more complex– Where teamwork is favored over individual effort
• In U.S.– Primary control tool used by sales managers is the incentive
system
• In other countries– Corporate control and frequent interactions with peers and
supervisors are the means of motivation and control
17-20
Preparing U.S. Personnel for Foreign Assignments
Preparing U.S. Personnel for Foreign Assignments
• Cost of foreign assignments
– Typically from 150-400 percent of the annual base salary– Cost increases if the expatriate returns home before completing
the scheduled assignment
• The planning process
– Must begin prior to the selection of those going abroad – Must extend to their specific assignments after returning home
17-21
Overcoming Reluctance to Accept a Foreign Assignment
Overcoming Reluctance to Accept a Foreign Assignment• Concerns for career
– An absence will adversely affect opportunities for advancement
• Concerns for family
– Education of the children– Isolation from family and friends– Proper health care– The potential for violence
• Special compensations packages deal with concerns
17-22
Reducing the Rate of Early ReturnsReducing the Rate of Early Returns
• Evaluation of an employee’s family
– 75 percent of families sent abroad experience adjustment problems with children or marital discord
• Cross-cultural training for families as well as the employee
• Local ombudsmen
17-23
Successful Expatriate RepatriationSuccessful Expatriate Repatriation
• Commit to reassigning expatriates to meaningful positions
• Create a mentor program
• Offer a written job guarantee stating what company is obligated to do for returning expatriate
• Keep the expatriate in touch with headquarters through periodic briefings and headquarter visits
• Prepare the expatriate and family for repatriation once a return date is set
17-24
Developing Cultural AwarenessDeveloping Cultural Awareness
• Expatriate failures
– Caused by lack of an understanding of cultural differences and their effect on management skills
• Cultural skills
– Can be learned and developed– Provide the individual with the ability to relate to a different
culture even when the individual is unfamiliar with the details of that particular culture
17-25
The Changing Profile of the Global ManagerThe Changing Profile of the Global Manager
• Fewer companies today limit their search for senior-level executive talent to their home countries
• Some companies believe
– It is important to have international assignments early in a person’s career
– International training is an integral part of their entry-level development programs
• Many companies are active in making the foreign experience an integrated part of a successful corporate career
17-26
Foreign-Language SkillsForeign-Language Skills
• Many believe:
– Learning a language improves cultural understanding and business relationships
– To be taken seriously in the business community, the expatriate must be at least conversational in the host language
• Many companies are making stronger efforts to recruit people who are bilingual or multilingual
17-27
SummarySummary
• The company’s sales force is on the front line of a marketing organization
• The role of marketers in both domestic and foreign markets along with the composition of international managerial and sales forces is rapidly changing
• The recent emphasis on using local personnel operating in their own lands has highlighted the importance of adapting U.S. managerial techniques to local needs
17-28
SummarySummary
• The development of an effective marketing organization calls for careful recruiting, selecting, training, motivating, and compensating of expatriate personnel and their families
• The most practical method of maintaining an efficient international sales and marketing force is careful, concerted planning at all stages of career development