International Sales Force Management

Transcription

1 International Sales Force Management Agenda Developing, organizing, and managing a company-owned international sales force Negotiating in foreign markets Comparisons of important international markets

2 Developing an international sales force Two fundamental approaches Exporting through marketing intermediaries Developing and using a company-owned international sales force Which is the most frequent method of foreign-market entry? Company-owned sales force Increased involvement in foreign markets direct exporting Traveling export sales representatives Domestic-based export department or division Foreign-based branch or subsidiary

3 Advantages of own sales force Composition of sales force Expatriates Very expensive over the long run 200% over base salary Problems of personal adjustment Take a long time to fully understand and appreciate a foreign market Good for short-term investment in high-growth markets

4 Nationals (Locals) Big trend in global business Less-developed countries pressure MNCs to hire nationals More qualified and educated personnel are available Superior understanding of the market Ability to work within cultural and social norms Cosmopolitans Ability to perform effectively in a variety of selling environments Increase in global trade has lead to an increase in the availability and use of such salespeople

5 Organizing the international sales force Challenge 80% of international markets are poor, have undeveloped infrastructures, and are culturally diverse 200 or more dialects in Indonesia, India, and China Linguistic and cultural diversities make it extremely difficult to develop sales territories Overall coordination of sales policies and procedures can become nightmarish General disposition Third-party marketing intermediaries Managing the international sales force Recruitment Selection Training Motivation Compensation

6 Recruitment and selection Potential shortage of qualified personnel Three major cultural elements that affect recruitment and selection Defined by economic criteria (USA) Seniority (Japan and Korea) Ancestry (India and Latin America) Taken seriously by enough people in developing countries to affect individual and group behavior Three major cultural elements (continued) Generally difficult to get university graduates and well educated elite into selling, especially those with technical and scientific backgrounds Skilled personnel shortage more acute in developing countries International business is a man s world! Can a saleswoman be effective in establishing and maintaining a successful business relationship with certain foreign clients?

7 Training Expatriates Market Business customs and cultural norms Special conditions of acculturation and selling that will be encountered in the new country Language skills Training Foreign nationals or cosmopolitans Company and its products Selling methods Procedures Home office corporate culture Home office staff

8 Motivation and compensation Rewarding individual achievement may not be appropriate in Group rewards and recognition are favored In Japan, job security is a more important motivator In Holland, good interpersonal relations are a strong motivator, and salespeople disapprove of In Austria, salespeople Motivation and compensation Developing a globally equitable compensation plan that motivates everyone equally is very difficult High-tax countries Expatriates

9 International negotiations Heightened cultural sensitivity, more attention to detail, and perhaps changes in behavioral patterns might be required Focus on gestures, body language, individual space, eye contact, notions of status and dignity, different forms of social etiquette Don t emulate the foreign culture Most people tend to be Do understand and respect different cultures Differences in negotiating styles Western buyers are usually swayed by Asian buyers spend an inordinate amount of time Western tradition Asia and Latin America more on feelings and personal relationships

10 Differences in negotiating styles Japan and Korea Use mediators and facilitators Not appropriate in Westerners prefer discussing problems in a Japanese prefer haragei to talk around a subject in order to get a holistic view of it. Only then will they discuss details. Perceptions of time Westerners are constantly in a rush, under pressure for results, and suffer from Tend to give away more than they planned Asians are more sedate Latin Americans are also more relaxed Russians

11 Personal relationships Westerners negotiate Germany Sober Thorough, systematic, and very well prepared But also They negotiate You may interrupt their arguments, if required Austrians are generally more

12 France Always put forward a clear and wellstructured agenda Bring your own interpreter, if required Don t interrupt the French! Broad issues are more important than intricate details United Kingdom Usually very Tend to be more under-prepared and highly pragmatic, flexible, and cooperative Don t take advantage of the easy-going, polite attitude of an English negotiator

13 Nordic Always positive and polite Less rigid than Germans, more quiet than Americans Start rather low-key, and can seem overwhelmed by strong, straightforward negotiating characteristics. They can become really United States of America Sometimes viewed as an aggressive or confrontational climate Focus is on achieving desired results, and less on relationship building

14 Latin America Some rules for westerners to keep in mind Socialize first, work later Convey sincerity, loyalty, and friendship Accept the pace and business practices of the region Don t stress (short-term) profits too much Expect a certain amount of bargaining OK to cut personal and private deals Don t expect everything to go exactly as planned Japan Build in extra time Repeat agreed-upon understandings occasionally They take notes in a detailed manner Never Free to renegotiate and alter all or part of the agreement even after agreements have been signed

15 China, Taiwan, and Hong Kong Communication is very Be consistent with Chinese Don t make radical changes to proposal Too much flexibility is not good Chinese will perceive you to be Informal negotiations of paramount importance The Arab World Very hospitable Personal impression They never say Oral agreements are more important than what is on the paper

16 Russia Typical strategy: Put Westerners immediately on the defensive with confrontational, blunt, and combative tactics Wear down sales team with long sessions, all-night meetings, stern lectures, and avoidance of the slightest compromise until the opponent is exhausted and gives in India Culturally diverse No Mixed negotiation style of western and eastern cultures Highly Bureaucratic red-tape is a problem

17 Africa