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Lecture Global marketing management (7th edition): Chapter 14 - Masaaki Kotabe, Kristiaan Helsen

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Chapter sales management. After studying this chapter you will be able to understand: How global marketing management differs from international marketing management, the need for planning to achieve company goals, the important factors for each alternative marketentry strategy, the increasing importance of international strategic alliances.

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Chapter Overview

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

Chapter 14 Copyright © 2017 John Wiley & Sons,

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• The salesperson is the front line for the company.

• The success or failure of the company rests largely

on the ability of its salesforce.

• International sales management can be divided into two categories: (1) international strategy

considerations, and (2) intercultural considerations.

• Careful selection, training, supervision, and

evaluation are an integral part of sending

salespersons overseas.

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Exhibit 14-1: International Sales Strategy

and Intercultural Considerations

Chapter 14 Copyright © 2017 John Wiley & Sons,

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1 Market Entry Options and Sales Force Strategy

• The salesforce 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).

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Exhibit 14-2: Degree of Involvement and

Sales Management Issues

Chapter 14 Copyright © 2017 John Wiley & Sons,

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1 Market Entry Options and Sales Force Strategy

• Low-Involvement Approaches

– Export Management Companies (EMCs)

– Export Trading Companies (ETCs)

• Sogoshosha (Japanese general trading companies)

– Examples: Mitsubishi, Mitsui, Sumitomo, and Marubeni– Licensing

• Limited Involvement Approach

• Mid-level Involvement Approach

• High-Involvement Approach

• Role of Foreign Governments

– Issues of host countries’ rules and practices

– Companies as “corporate citizens” in the host

countries

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– Personal selling is predominantly a personal activity.

Chapter 14 Copyright © 2017 John Wiley & Sons,

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Avon Sales Representative in Brazil

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3 Cultural Generalization

• Cultural Generalization

• Corporate (Organizational) Culture

• Relationship Marketing

• Myers–Briggs Type Indicator—MBTI (Exhibit 14-4)

Popular tool for characterizing people which addresses their cognitive styles and is based on the following four

1 Extrovert versus Introvert

2 Intuitive and Sensing

3 Thinking versus Feeling

4 Judging versus Perceiving

Chapter 14 Copyright © 2017 John Wiley & Sons,

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4 Impact of Culture on Sales Management

and Personal Selling Process

• Sales force management consists of:

• Setting salesforce objectives

• Designing salesforce strategy

• Recruiting and selecting salespeople

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4 Impact of Culture on Sales Management

and Personal Selling Process

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4 Impact of Culture on Sales Management

and Personal Selling Process

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5 Cross-Cultural Negotiations

• Conducting successful cross-cultural negotiations is

a key ingredient for many international business

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Exhibit 14-5: Negotiation Styles and Guidelines in Five Countries

Chapter 14 Copyright © 2017 John Wiley & Sons,

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5 Cross-Cultural Negotiations

Cross-Cultural Negotiation Strategies

a Employ an agent or adviser

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

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5 Cross-Cultural Negotiations

• 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 clues

4 Predict or influence the counterpart’s approach

5 Choose a strategy

Chapter 14 Copyright © 2017 John Wiley & Sons,

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6 Expatriates

• Expatriates are home country personnel sent

overseas to manage local operations in the foreign market.

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6 Expatriates

• The Return of the Expatriate—Repatriation

– Repatriation is the return of the expatriate employee from overseas

– There are a number of effective ways to reduce

attrition rates These include providing:

• Chances to use international experience

• Position choices upon return

• Recognition

• Repatriation career support

• Improving performance evaluation

• Family repatriation support

Chapter 14 Copyright © 2017 John Wiley & Sons,

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– Expatriates are especially important in complex

operating environments, when elevated political risk requires constant monitoring, or when a high cultural distance separates the home and host countries

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