Chapter 3.
International
Sales Force
Management

• Building Relationships Japanese Approaches to International Markets
  Japanese patience pays off Japan is outselling the West in East Asia Relationships seen at two-sided Premium placed on good information Plug into governments with loans	Cultivate personal relationships
  	customers partners suppliers
  Example: Vietnam

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  • Introduction
    America’s economic future lies in international business U.S. corporations need a global perspective Management of sales activities across international boundaries can be complex

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  • Developing an International Sales Force
    Marketing intermediaries
    Types of Marketing Intermediaries	Export Merchant (Distributor) Export Agent Cooperative Organization Export-Management Company
    Functions Performed by Marketing Intermediaries	Provide geographical market coverage Provides sales contact Hold inventories Process orders Provide market information Provide advice and technical support
    Selecting Marketing Intermediaries	If the wrong foreign intermediary is chosen, success is unlikely Check as many references as possible Make sure the intermediary is not doing business with a competitor Get a credit report If possible visit with the intermediary on sales calls
    Motivating Marketing Intermediaries
    Needs and Problems	Often small by US standards May not desire growth
    Providing the Right Support	Adequate margins Territory Protection Advertising Support Financial Assistance
    Building Relationships	Operate within their traditions and norms Personal, participative relationships expected

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  • Moving on to Direct Exporting
    Modes of Direct Exporting	Traveling Export Sales Representatives Domestic-Based Export Department or Division Foreign-Based Branch or Subsidiary
    Company-Owned Sales Force	Advantages
    	Greater Control Better source of market information Can identify new opportunities
    	Source of Salespeople
    	Expatriates	Pre-departure assessment Cross-cultural orientation Home-based and in-country assistance Aggressive outreach Employee and family focused support Clinical and social services The cost of a foreign assignment estimated at between $200,000-$400,000 per employee above domestic compensation
    	Nationals	Include standard components, but must be staffed locally. Motivational program services. Critical mass
    	Cosmopolitans	Similar in needs to expatriates
    Outsourcing	Salience

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  • Organizing the International Sales Force
    Types of Organization	Centralized v Decentralized Geographic Market Product lines Customer (Type, Size)
    Industry Influences on Sales Force Organization	Level of product diversity Product maturities Stability of technology Foreign market growth potential
    Corporate Influences on Sales Force Organization	Size of the foreign subsidiary Product mix
    Environmental Influences on Sales Force Organization	Market size Level of economic market development Shared languages

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  • Managing the International Sales Force
    Recruitment and Selection	Ethic Composition Religious Orientation Social Class Environment Education Gender Bias
    Training	Place more emphasis on the company and its product(s) Home office visits and corporate culture Training for the home office support staff on international sales support
    Motivation and Compensation	Varies from country to country Culture of the country is a major factor in designing programs

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  • Negotiating the Sale
    Differences in International Negotiating Styles	Differences in Decision Making Status and Protocol Social Aspects of International Negotiations Perceptions of Time Personal Relationships
    Additional Specifics on Countries, Regions, and Cultures
    German-Speaking Countries	Rigid, sober climate Relationships downplayed at first Somewhat slower pace of negotiations Systematic detailed negotiation process All final decisions made by top ranking people
    France and French-Speaking Belgium	Formal, bureaucratic climate Formal relationships Slow deliberate pace Team discussions and debate Group decisions with a head negotiator
    United Kingdom	Results more important than relationships A little slower pace than US Orderly negotiation process Can be a group decision process
    Scandinavia	Polite quiet climate Somewhat slower pace of negotiations Systematic detailed negotiation process Can become stubborn All final decisions made by top ranking people
    The Mediterranean and Central and South America	Relationships important Relaxed slow moving Socialize first Decisions made by top ranking people
    Mexico	Slow paced - be patient Demand flexibility Start with a small deal and build the relationship Consult with a third party before commitment The mid-sized firms are often the best partners. Decisions made by top ranking people
    Japan	Formal, polite and ritualistic climate Long term relationships sought Very slow pace Discussions proceed from general to specific Group decision making
    People’s Republic of China	Formal, bureaucratic climate Relationships, courtesies and protocol important Slow pace Long, repetitive discussions Formal written agreements Group decisions with a senior negotiator
    The Arab World	Friendly environment Relationships important Must respect religious customs Love to negotiate Often try to modify agreement even after it is signed.
    Russia, Eastern Europe, and Third World Countries	Formal, bureaucratic climate Relationships discounted at first. Poker faced Slow detail oriented pace Cumbersome processes Group decisions with a senior negotiator
    Seven Recommendations for Success
    Prepare, prepare, prepare Extensive preliminary work by subordinates Know the language Use support pictures and presentations Use time efficiently Use American negotiators Think of the agreement as a relationship

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  • Summary

    Most industries are becoming global Now, as never before, companies and their salespeople need to understand from a global perspective their markets their customers their competitors

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