Personal Selling, Sales Management & Personal Selling, Sales Management & International Negotiating 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 Introduction • 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 non- nationals allowed to work within the country citing local management content laws over concerns • The sales force can be recruited from three sources: (1) expatriates (2) local nationals, and (3) third-country nationals • The sales force can be recruited from three sources: (1) expatriates (2) local nationals, and (3) third-country nationals [...]... headquarters Planning For International Negotiations •• The following checklist ensures proper preparation and The following checklist ensures proper preparation and planning for international negotiations: planning for international negotiations: 1 2 3 4 5 6 Assessment of the situation and the people Facts to confirm during the negotiation Agenda Best alternative to a negotiated agreement Concession strategies... for Managers and Negotiators •• Four steps lead to more efficient and effective international Four steps lead to more efficient and effective international business negotiations, which include: business negotiations, which include: 1 2 3 4 selection of the appropriate negotiation team management of preliminaries, including training, preparations, and manipulation of negotiation settings management of... Culture on Negotiation Behavior • (1) (2) (3) (4) Cultural differences in negotiation styles can cause problems in international at the levels of: Language Nonverbal behaviors Values Thinking and decision-making processes Companies and countries do not negotiate—people do Companies and countries do not negotiate—people do Verbal Negotiation Tactics Verbal & non-verbal bargaining behaviors Implications for... Communications channels Time limits At the Negotiation Table •• Differences in the expectations held by parties from different Differences in the expectations held by parties from different cultures are one of the major difficulties in any international cultures are one of the major difficulties in any international business negotiation business negotiation •• Everywhere around the world we have found... communication and training themes worldwide • 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 Worldwide Sales Compensation sc The Future Global Manager...Designing International Compensation IBM’s list of Do’s and Don’ts 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 measure • Allow local countries flexibility in implementations • Do use consistent... Multi-disciplinary education and multifunctional 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?... business Everywhere around the world we have found that business negotiations proceed through four stages: negotiations proceed through four stages: • Nontask sounding • Task-related exchange of information • Persuasion • Concessions and agreement Price Negotiating •• Learn all you can about the position of the other party Learn all you can about the position of the other party beforehand beforehand... of negotiations, that is, what happens at the negotiation table appropriate follow-up procedures and practices Negotiation Teams •• Criteria for selecting successful negotiators include: Criteria for selecting successful negotiators include: 1 2 3 4 5 6 7 8 9 10 Maturity Emotional stability Breadth of knowledge Optimism Flexibility Empathy Stamina Willingness to use team assistance Listening Influence... Team assignments Negotiation Setting •• There are at least seven aspects of the negotiation setting that There are at least seven aspects of the negotiation setting that should be manipulated ahead of time if possible: should be manipulated ahead of time if possible: 1 2 3 4 5 6 7 Location Physical arrangements Number of parties Number of participants Audiences (news media, competitors, fellow vendors, . Outline • Designing the sales force • Select & Recruit Marketing and sales personnel • Training for international marketing • Motivating Sales Personnel and Compensation • Evaluating and controlling sales. sales force • Select & Recruit Marketing and sales personnel • Training for international marketing • Motivating Sales Personnel and Compensation • Evaluating and controlling sales personnel • The. Personal Selling, Sales Management & Personal Selling, Sales Management & International Negotiating International Negotiating Chapters 17 & 19 McGraw-Hill/Irwin © 2005 The