Chapter17PersonalSellingandSalesManagement?McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.

NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.LearningObjectives1of2

17-1 Theroleofinterpersonalsellingininternationalmarketing17-2 Theconsiderationsindesigninganinternationalsalesforce17-3 Thestepstorecruitingthreetypesof

internationalsalespeople17-4 Selectioncriteriaforinternationalsalesandmarketingpositions17-5 ThespecialtrainingneedsofinternationalpersonnelLearningObjectives2of2

17-6 Motivationtechniquesforinternationalsalesrepresentatives17-7 Howtodesigncompensationsystemsforaninternationalsalesforce17-8 HowtoprepareAmericansforforeignassignments17-9 ThechangingprofileoftheglobalsalesandmarketingmanagerInternationalSellingImportanceoftheSalespersonCompany’smostdirecttietocustomerFinallinkinculminationofmarketingandsaleseffortsRelationshipMarketingBuildinglong-termalliancesratherthanone-timeeventComplicatedbyculturaldifferencesCustomerrelationshipmanagement(CRM)AdvancesininformationtechnologycreatingmoreopportunitiesDesigningtheSalesForce1of2FirststepinsalesforcemanagementThingstoconsiderindesigningforceAnalysesofcurrentandpotentialcustomersThesellingenvironmentCompetitionThefirm’sresourcesandcapabilitiesPertinentconditionsandcircumstancesininternationalmarketsmakesdesignchallengingDesigningtheSalesForce2of2CulturalinfluencesonsalesmanagementDistributionstrategiesvarybycountrySalesstrategyimpactedbyculturalelementsDirectsalesforcemayormaynotberequiredinmarketThehardsellthatworksinonecountrymightnotworkinanotherInformation-orientedculturesallowforuseofexpatriatesRelationship-orientedculturesrequireuseofnativesalesrepsDegreeofmarketdevelopmentimpactsdesignofsalesforceRecruitingMarketingandSalesPersonnel1of7LargestpersonnelrequirementabroadThreerecruitmentsourcesExpatriatesLocalnationalsThird-countrynationalsCompany’sstaffingpatternmayincludeallthreesourcesDependsonqualifications,availability,andcompanyneedsRecruitingMarketingandSalesPersonnel2of7ExpatriatesHome-countrypersonnelmovetoforeignmarketAdvantagesofexpatriatesalespersonnelGreatertechnicaltrainingBetterknowledgeofcompanyandproductlineProvendependabilityMayaddprestigetoproductlinesforforeigncustomersAbletocommunicateeffectivelywithheadquarters’personnelRecruitingMarketingandSalesPersonnel3of7ExpatriatescontinuedDisadvantagesofexpatriatesalespersonnelHighcostCulturalandlegalbarriersLimitednumberofhigh-caliberpersonnelwillingtoliveabroadCompanieswithwell-plannedcareerdevelopmentprogramshaveleastdifficultyFittingandintegrationofexpatriateemployeeinforeignofficeCulturalAdaptationinExpatriateSalesExpatriatesalespeoplewillneedtoadapttoavarietyofculturesandsituationsdifferentfromthoseintheirhomecountries.?R/ShutterstockRecruitingMarketingandSalesPersonnel4of7VirtualExpatriatesNewbreedofexpatriatebeingincreasinglyusedCommunicationstechnologyallowsforvirtualsalesforceAdvantagesofvirtualexpatriatepersonnelCanmanageoperationsandenjoydiversity-drivencreativitywithouthavingtouprootfamilyandmoveDisadvantagesofvirtualexpatriatepersonnelClosecontactwithcustomerstoughertomaintainTravelisstillneededandcanbedangerousRecruitingMarketingandSalesPersonnel5of7LocalNationalsAdvantagesMoreknowledgeableaboutcountry’sbusinessstructureMorecapableofadaptingsalepitchtocustomersLesscosttomaintainDisadvantagesTheiradvicetendstobeignoredbyheadquarters’personnelLanguageandculturalbarriersimpactlevelofinfluenceDifficulttorecruithigh-qualitysalespeopleSomeculturesviewsalesasbottomrungofsocialladderRecruitingMarketingandSalesPersonnel6of7Third-CountryNationals(TCNs)NewpoolofexpatriatecreatedWorksforforeigncompanyinthirdcountryNationalityhaslittletodowithwhereorforwhomtheyworkInternationalizationofbusinessacauseTCNssoughtbecausetheyspeakseverallanguagesandhavehighknowledgeofindustryinforeigncountryAmericanfirmsoftenuseTCNsratherthanhome-countryexpatriatestoavoiddoubletaxationcostsRecruitingMarketingandSalesPersonnel7of7Host-CountryRestrictionsSelectingexpatriatenationalsoftendifficultHostgovernment’sattitudestowardforeignworkersFearofforeigncorporatedominationConcernsaboutlocalunemploymentMostcountrieshavespecificrulesrestrictingforeignworkAmountofworkpermitsgivenDurationofworkpermitsoftenonlylongenoughtotrainlocalpersonneltofillpositionSelectingSalesandMarketingPersonnel1of2NecessaryQualitiesMaturityEmotionalstabilityBreadthofknowledgePositiveoutlookFlexibilityCulturalempathyHighlevelofenergyEnjoymentoftravelSelectingSalesandMarketingPersonnel2of2AssessmentofTraitsInterviewsandrole-playingexercisescanbeusedReferralsoftenbestwaytorecruitpersonnelSometraitsvaryinimportancebycultureSelectioncriteriamustbelocalizedtotargetmarketImportanceofSelectionMistakesarecostlyHundredsofthousandsofdollarswastedinexpensesandtimewhenassignmentdoesnotworkoutTrainingforInternationalMarketingNatureoftrainingprogramsvaryDependslargelyonculturesinvolvedMustbetailoredtocultureContinualtrainingmaybemoreimportantinforeignmarketsContentdependsontypeofsalespersonnelselectedExpatriates:customsandsalesproblemsinforeigncultureLocalpersonnel:thecompanyandproducts,technicalinformation,sellingmethodsTheInternetsometimesmakestrainingmoreefficientMotivatingSalesPersonnelComplicatedbyCultureManagermustconsiderdifferencesofpersonnelExtremesensitivitytodifferentbehavioralpatternsimportantIndividualincentivesnotalwayseffectiveineachcultureKeyMotivatorsCommunicationsareimportantOpportunitiesforpromotionneedtobemadeclearBlendingcompanyandpersonalobjectivesagoalEmployeeMotivationinJapanPartofthecorporateculture(somesaypeerpressure)thatmotivatesJapanesesalesrepresentativesisthemorningcalisthenics.?ThanineeChuensomchit/ShutterstockDesigningCompensationSystems1of3ForExpatriatesDesigningequitablecompensationdifficultforcompaniesThosethatoperateinnumberofcountriesThosewithpersonnelwhoworkinanumberofcountriesThosewithasalesforceofexpatriateandlocalpersonnelFringebenefitsplayamajorroleinmanycountriesDifferenceinpaymakesithardtorepatriatepersonnelShort-versuslong-termassignmentbenefitsSeparationallowances,home-leave,andtravelpaymentsDesigningCompensationSystems2of3ForaGlobalSalesForcePlansforAmericancountriesvaryaroundtheglobeReflecteconomic,legal,andculturaldifferencesAsiaandWesternEuroperequiremorelocalizationPersonalincometaxratesrelativelylowinU.S.andJapanWorkcouncils(internallaborunioncommittees)setrulesaboutcompensationinEuropePlansaroundworldgenerallysimilartoU.S.approachJapanandsouthernEuropethemostdifferentfromU.S.DesigningCompensationSystems3of3ForaGlobalSalesForcecontinuedRecommendationsforglobalcompensationplanAllowlocalmanagerstodecidemixofincentiveversusbasepayUseconsistenttrainingandcommunicationschemesworldwideDon’tassumeculturaldifferencescanbemanagedthroughincentiveplanExhibit17.3GlobalSimilaritytoU.S.CompensationPlansJumptolongdescription.Source:DavidJ.Cichelli,ed.,2012SalesCompensationTrendsSurvey(Scottsdale,AZ:TheAlexanderGroup,Inc.,2012). EvaluatingandControllingSalesRepresentativesSimpleProcessinUnitedStatesEmphasisplacedonindividualperformanceandsalesAgoodrepresentativeproducesbignumbersIncentiveseffectiveasmotivatorsComplexProcessElsewhereRelationship-orientedculturesespeciallyTeamworkfavoredoverindividualeffortClosersupervisionexpectedandmayevenbeappreciatedPreparingU.S.PersonnelforForeignAssignments1of5PlanningProcessIsImportantHighcostofsendingandsupportingexpatriateIncludessupportinghisorherfamily;earlyreturnrequestsEstimatesrangefrom150to400percentofworker’sbasesalaryRepatriationagoalCostlyifunsuccessful;lossofmoraleandexperiencedpersonnelManagingexpatriatespresentsuniqueproblemsShouldbereflectedinselection,training,compensation,andcareerdevelopmentpoliciesPreparingU.S.PersonnelforForeignAssignments2of5OvercomingReluctancetoAcceptaForeignAssignmentMainreasonsworkersrefuseassignmentUprootingfamilytomovetostrangeenvironmentFearthatabsencewilladverselyaffectcareeradvancementHowtoovercomereservationsSelectcandidatesthoughtfullyReturnexpatriatestohomeofficeatrightmomentRewardexpatriateswithsubsequentpromotionsathomeProvidespecialcompensationpackagesforhardshipPreparingU.S.PersonnelforForeignAssignments3of5ReducingtheRateofEarlyReturnsHighersalariesmotivateexpatriatestoremainabroadEmphasisoncollectivismlowersperceivedworkloadandincreasesjobsatisfactionConsiderfamiliesinculturaladjustmentprocessUnsuccessfulfamilyadjustmentmostcommonreasonforreturnCross-culturaltrainingeasesadjustmentforfamiliesAmericanStoresinForeignCountriesEaseExpatriateAdjustmentAmericanexpatriatesflocktostoreslikethisoneinWarsaw.Insideyou’llfindnotonlybooksinEnglish,butalsoKraftmacaroniandcheese,Bisquick,andotherhard-to-find-in-EuropestaplesoftheAmericandiet.?JohnGrahamPreparingU.S.PersonnelforForeignAssignments4of5SuccessfulExpatriateRepatriationLowmoraleandattritionofreturneescommonFamily-relatedproblems:financialandlifestylereadjustmentsDecreasedstandardoflivingafterreturningtohomecountryLossofcompensationprogramsandhardshippaymentsInflationratesraisecostoflivingCareer-relatedproblems:lackofdetailedplanforfutureofcareerPerceivedlackofopportunitiesforgrowthPreparingU.S.PersonnelforForeignAssignments5of5SuccessfulExpatriateRepatriationcontinuedStepsforsuccessCommittoreassigningexpatriatestomeaningfulpositionsCreateamentorprogramOfferawrittenjobguaranteestatingwhatthecompanyisobligatedtodofortheexpatriateuponreturnKeeptheexpatriateintouchwithheadquartersPreparetheexpatriateandfamilyforrepatriationandculturalreadjustmentDevelopingCulturalAwareness1of2CulturalIntelligenceImportantManybusinessesonlyfocusonfunctionalskillsLackofunderstandingculturaldifferencesismaincauseforexpatriatefailuresGrowingneedtodevelopculturalawarenessWorldbecomingmoreinterdependentwithcompaniesdependingonforeignearningsBiculturalmarketersDevelopingCulturalAwareness2of2CulturalSkillsProvideindividualabilitytorelatetoadifferentculturePeoplewithculturalskillscan:CommunicateapositiveregardandsincereinterestinpeopleTolerateambiguityandcopewithculturaldifferencesDisplayempathybyunderstandingothers’needsanddifferencesfromtheirpointofviewRemainnonjudgmentalaboutthebehaviorofothersRecognizeandcontroltheself-referencecriterionLaughthingsoffCulturalSkillsinManagementCulturallyawaremanagersabroadunderstandandcopewiththefactthatbusinessdiscussionsmaybeconducteddifferentlyintheirhostcountry.?Westend61/GettyImagesTheChangingProfileoftheGlobalManagerGloballeadermustbemultifacetedFactorsinCompanyLeaderChoiceIncreasesininternationalcompetitionGlobalizationofcompaniesTechnologyDemographi