UBI-GM-Presentation17-19.050112-mkg n sales ppt

Chapter Outline• Designing the sales force • Select & Recruit Marketing and sales personnel • Training for international marketing • Motivating Sales Personnel and Compensation • Evaluat

Personal Selling, Sales Management &

International Negotiating

Chapters 17 & 19

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc All rights reserved.

PowerPoint presentation prepared by:

Alfred Lowey-Ball Associate Professor of Marketing UBI-United Business Institutes Brussels, Belgium

Chapter Outline

• Designing the sales force

• Select & Recruit Marketing and sales personnel

• Training for international marketing

• Motivating Sales Personnel and Compensation

• Evaluating and controlling sales personnel

• The changing profile of the global manager

• Foreign language skills

• The pervasive impact of culture on Negotiation

behaviour

• Implications for managers and negotiators

• Designing the sales force

• Select & Recruit Marketing and sales personnel

• Training for international marketing

• Motivating Sales Personnel and Compensation

• Evaluating and controlling sales personnel

• The changing profile of the global manager

• Foreign language skills

• The pervasive impact of culture on Negotiation

behaviour

• Implications for managers and negotiators

• Global sales opportunities and growing international

competition increases the need for global relationship marketing, ie on the need to build and maintain long-

term business alliances with partners and customers

• Building an effective global sales force is crucial for

success in global marketing The sales person is the

company’s face to the world

• Advances in information technology are allow closer

coordination of advertising, marketing research and

personal selling efforts

• Face-to-face negotiations with foreign governments,

business partners and customers are indispensable for the implementation of international marketing plans.

• Be aware of cultural differences and nuances for success

in cross cultural negotiations

Designing the Sales Force

• The first step in building a sales force is its design, which encompasses deciding how many expatriates, local nationals, or third-country

nationals a particular market requires

• The hard sell that may work in some countries can be in inappropriate in others

• Automobiles have been sold door to door in Japan for years where “Personal selling as a rule has to be localized for even the most global of corporations and industries” (Johanson and Nonaka 1997)

• Distribution and selling strategies often vary from country to

country  Some markets may require a direct sales force,

whereas others may not

• Distribution and selling strategies often vary from country to

country  Some markets may require a direct sales force,

whereas others may not

Recruiting Marketing and Sales Personnel

• Sales and marketing executives can be recruited via the traditional media of advertising (including

newspapers, magazines, job fairs, and the Internet), employment agencies or executive search firms

• Many countries restrict the number of nationals allowed to work within the country citing local management content laws over concerns

non-• The sales force can be recruited from three sources:

Selecting Sales and Marketing Personnel

• To select personnel for international marketing positions

effectively, management must choose individuals who have the following traits:

• To select personnel for international marketing positions

effectively, management must choose individuals who have the following traits:

Training for International Marketing

• Selection mistakes are costly, so sales training is important

• Training for the expatriates focuses on the customs and the special foreign sales

problems that will be encountered

• Expatriates are captives of their own habits and patterns

Before any training can be effective, open-minded attitudes must be established

• Training of local personnel require greater emphasis on the

company, its products, technical information, and selling

methods

• For global assignments, the aim is to develop employees with multi-national language skills and multi-cultural awareness

Motivating Sales Personnel

• Motivation is especially complicated in an international context

• The social and competitive contexts require different

motivational systems

• Individual financial incentives that work effectively in the

United States can fail in other cultures

• For example, with Japan’s emphasis on paternalism and

collectivism and its system of lifetime employment and

seniority, employees seem to derive the greatest satisfaction

from being members of a group; so an offer of an individual

financial reward for outstanding individual effort may not work

• Compensation in European countries typically involve a greater emphasis on base pay than in the United States, and

performance-based incentives have been found to be less

effective

Relative importance of sales incentives

Designing International Compensation

• 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

IBM’s list of Do’s and Don’ts

• Don’t proceed without the

support of senior sales

executives worldwide

• Allow local managers to

decide the mix between base

and incentive pay

• Use consistent performance

measures (results paid for)

and emphasis on each

IBM’s Worldwide Sales Compensation sc

The Future Global Manager

• Multi-disciplinary education and multi-functional work experience

– BA minimal, MBA becoming required.

• Experience in a number of international environments

– Gorrizgueta of Coke (Cuban)

– Ekkehardt of Compaq

– Head of P&G US is a Dutchman

– The head of the Frankfurt Boerse is Swiss

– The head of Mark & Spencers in UK is Vandevelde (a Belgian)

• Multi-lingual:

– What do you call a person speaking only one language?

• Cultural differences in negotiation styles can cause

problems in international at the levels of:

(1) Language

(2) Nonverbal behaviors

(3) Values

(4) Thinking and decision-making processes

The Pervasive Impact of Culture

on Negotiation Behavior

Companies and countries do not negotiate—people do

Verbal Negotiation Tactics

Verbal & non-verbal bargaining behaviors

Implications for Managers and Negotiators

1 selection of the appropriate negotiation

team

2 management of preliminaries,

including training, preparations, and manipulation of negotiation settings

3 management of the process of

negotiations, that is, what happens at the negotiation table

4 appropriate follow-up procedures and

practices

• Four steps lead to more efficient and effective international

business negotiations, which include:

• Four steps lead to more efficient and effective international

business negotiations, which include:

• Criteria for selecting successful negotiators include:

• Criteria for selecting successful negotiators include:

Planning For International Negotiations

• The following checklist ensures proper preparation and

planning for international negotiations:

• The following checklist ensures proper preparation and

planning for international negotiations:

competitors, fellow vendors, etc.)

• There are at least seven aspects of the negotiation setting that

should be manipulated ahead of time if possible:

• There are at least seven aspects of the negotiation setting that

should be manipulated ahead of time if possible:

At the Negotiation Table

• Nontask sounding

• Task-related exchange of information

• Persuasion

• Concessions and agreement

• Differences in the expectations held by parties from different

cultures are one of the major difficulties in any international business negotiation

• Differences in the expectations held by parties from different

cultures are one of the major difficulties in any international business negotiation

• Everywhere around the world we have found that business

negotiations proceed through four stages:

• Everywhere around the world we have found that business

negotiations proceed through four stages:

• For each negotiation there is a minimum price that the seller

will accept and a maximum that the buyer will pay

• For each negotiation there is a minimum price that the seller

will accept and a maximum that the buyer will pay

• Know that each party will have to give something to get

• Discuss terms and include them in the final price “package”

• Discuss terms and include them in the final price “package”

• Never be in a hurry

• Never be in a hurry