International Marketing - Chapter 17: Personal Selling and Sales Management

Chapter 17Personal Selling and Sales ManagementInternational Marketing15th edition Philip R. Cateora, Mary C. Gilly, and John L. GrahamOverviewDesigning the sales forceRecruiting marketing and sales personnelSelecting sales and marketing personnelTraining for international marketingMotivating sales personnelDesigning compensation systemsEvaluating and controlling sales representativesPreparing U.S. personnel for foreign assignmentsDeveloping cultural awarenessThe changing profile of the global managerForeign-language skills2Roy Philip Recruiting Marketing and Sales Personnel (1 of 2)The largest personnel requirement abroad for most companies is the sales forceExpatriatesNumbers are decliningImportant for highly technical or involved productsHigh costCultural and legal barriersLimited number of high-caliber personnel willing to live abroadVirtual expatriatesManage operations in other countries but don’t live there3Roy Philip Recruiting Marketing and Sales Personnel (2 of 2)Local nationalsTranscend both cultural and legal barriersFamiliar with distribution systems and referral networksHeadquarters personnel may ignore their adviceLack of availabilitySales positions viewed negativelyThird-country nationalsExpatriates working for a foreign companyHost-country nationalsWork restrictions4Roy Philip Selecting Sales and Marketing PersonnelManagement must define precisely what is expected of peoplePrime requisitesMaturityEmotional stabilityBreadth of knowledgePositive outlookFlexibilityCultural empathyEnergetic and enjoy travelMistakes can be costlyA manager’s culture affects personnel decisions5Roy Philip Training for International MarketingThe nature of the training program depends on:The home culture of the sales personThe culture of the business system and foreign marketContinual training is important in foreign marketsCompanies should provide home-office personnel with cross-cultural trainingThe Internet now makes some kinds of sales training much more efficient6Roy Philip Salespeople’s Distribution of 100 Points among Rewards in Terms of Their ImportanceRoy Philip 7Exhibit 17.3Designing Compensation Systems for ExpatriatesFringe benefitsCompensations comparisons between the home office and abroadShort-term assignment compensationUsing a compensation program to recruit, develop, motivate, or retain personnel8Roy Philip Evaluating and Controlling Sales RepresentativesIn the U.S., emphasis is placed on individual performance; it can easily be measured by sales revenues generated In many countries evaluation is more complex where teamwork is favored over individual effortIn the U.S., the primary tool used by sales managers is the incentive systemIn other countries, corporate control and frequent interactions with peers and supervisors are the means of motivation and controlRoy Philip Preparing U.S. Personnel for Foreign AssignmentsCost of foreign assignments Typically from 150-400 percent of the annual base salaryCost increases if the expatriate returns home before completing the scheduled assignmentThe planning process Must begin prior to the selection of those going abroad Must extend to their specific assignments after returning home10Roy Philip Overcoming Reluctance to Accept a Foreign AssignmentConcerns for careerAn absence will adversely affect opportunities for advancementConcerns for familyEducation of the childrenIsolation from family and friendsProper health careThe potential for violenceSpecial compensations packages deal with concerns 11Roy Philip Reducing the Rate of Early ReturnsEvaluation of an employee’s family75 percent of families sent abroad experience adjustment problems with children or marital discordCross-cultural training for families as well as the employeeLocal ombudsmen12Roy Philip Successful Expatriate RepatriationCommit to reassigning expatriates to meaningful positionsCreate a mentor programOffer a written job guarantee stating what company is obligated to do for returning expatriateKeep the expatriate in touch with headquarters through periodic briefings and headquarter visitsPrepare the expatriate and family for repatriation once a return date is set13Roy Philip The Changing Profile of the Global ManagerFewer companies today limit their search for senior-level executive talent to their home countriesSome 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 programsMany companies are active in making the foreign experience an integrated part of a successful corporate career14Roy Philip Foreign-Language SkillsMany believe: Learning a language improves cultural understanding and business relationshipsTo be taken seriously in the business community, the expatriate must be at least conversational in the host languageMany companies are making stronger efforts to recruit people who are bilingual or multilingual15Roy Philip