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Chapter 2 Culture and Sales Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras Culture and Sales • Culture: All of the behavioral traits that we acquire from and share with the members of our society. • Acculturation: What is learned and accepted by an outsider after exposure to those within a cultural group. • Assimilation: When an outsider becomes completely absorbed into a new culture. Culture and Sales • Levels of Cultural Aggregation – Global – Forces at work shaping similar expectations of customers, but risky to treat all sales people the same way – Regional – Regional similarities may offer opportunities for 3rd country nationals – National – The key level of aggregation. The most deep set and defining characteristics imprinted on the individual. – Local – Local community has its own culture, but not as important in shaping the individual. Culture and Sales • Hofstede’s National Cultural Dimensions: – Power Distance – The distinctions in the society between the individual and their immediate supervisor in terms of power and ranking. – Uncertainty avoidance – The way in which the society deals with the concept of risk. – Individualism/collectivism – The importance of the group as opposed to the individual in the society. – Masculinity/femininity – The traits valued by society which are identified in terms of masculine (success, confidence, strength) or feminine (nurturing, compassion, quality of life). Culture and Sales • National Cultural Dimensions: – Confucian Dynamism (added by Bond) – The importance of a short-term versus a longterm time orientation and commitment. Culture and Sales • Managerial Considerations: – The chances for cultural conflict should be minimized to enhance the probability of successful relationship building between salesperson and customer. – Making the salesperson sensitive to cultural differences is important. – Periodic cultural training for salespeople and sales managers can be extremely beneficial. Culture and Sales Culture and Sales • Components of Culture: – Verbal Communication - Three problem areas to consider: • Simple carelessness – The inappropriate or accidental use of a word. • Multiple-meaning words – Using words with more than one meaning where primary meaning is other than was intended. • Idioms – Using phrases with no literal translation. – Cadillac product; raining cats and dogs Culture and Sales • Additional language concerns: – Use the correct forms of the language when addressing a superior as opposed to a peer. – Developing countries often have many different dialects which are used. – The language may be experiencing changes on a daily basis (vernacular). – High context versus low context cultures have different language uses and needs for communications. Culture and Sales • Types of Nonverbal Communication: – – – – – – – – – – Appearance/Grooming Tone of Voice/Speech Pattern Timing of Verbal Responses Posture Use of Space in Communications Sense of Smell Use of Hand Gestures to Communicate Physical Contact in Communication Eye Contact in Communication Body Angles Culture and Sales • Communication Considerations: – The better prepared the salesperson is to understand verbal and non-verbal communication issues, the greater the chances for building successful relationships with potential customers. Some possibilities: • Identify and prepare for specific customers. • Cultural training/sensitizing is a necessity. • The key is to avoid actions and words that could be considered to be offensive. Culture and Sales • Components of Culture: – Religion – Watch out for: • Religious holidays/celebrations/obligations may affect salesperson performance. • Time for prayer may be important. • Consumption of certain foods may be prohibited. • Consumption of alcohol may be forbidden. • Gender relationships may be controlled. Culture and Sales • Components of Culture: – Education – be sensitive to: • Difficulties for customer dealing with someone less educated. • Salespeople should have at least a university/college education. • Sales managers must sell students in many countries on the value of a sales career. • Salespeople may be concerned about educational opportunities for their children if they are sent overseas. Culture and Sales • Components of Culture: – Aesthetics - Remember: • Salesperson appearance must conform with expectations of customer (hair, jewelry, smell, etc.). • The materials used by the salesperson should also conform to customer expectations (sales presentations, product/promotional literature, etc.). Culture and Sales • Components of Culture: – Social Organizations – Areas to consider: • How well does the salesperson work in group settings, especially when the company uses sales teams? • Problems arising from males in patriarchal societies working for female superiors. • Problems arising from older individuals in hierarchical societies working for younger supervisors. • Problems arising from affluent individuals working for supervisors from lower income backgrounds. Culture and Sales • Components of Culture: – Technology - Watch out for: • Customers who are more technologically literate than sales people. • Sales people selling products way too advanced technologically for potential customers. • Technological literacy gaps between sales manager and sales people. Culture and Sales • Components of Culture: – Values and Norms - Consider: • Conflicts between sales manager and salespeople reflecting differences in value orientations (conservative vs. liberal, ethnocentric vs. polycentric, egalitarian vs. male-dominated decision making, etc.) • Conflicts between salespeople and customers reflecting value differences. • Ethnocentric vs. polycentric perspectives. Culture and Sales • Essential skills and abilities for multicultural sales manager dealing with a global sales force: – – – – – – – Respect for others Tolerance for ambiguity Ability to relate to people Being nonjudgmental Ability to personalize one’s observations Empathy Persistence/patience Culture and Sales • Suggestions for the sales manager to enhance their chances of clear and meaningful communications with foreign salespeople: – – – – Speak slowly and clearly – not loudly! Avoid the use of idiomatic expressions Try not to appear impatient or irritated Periodically stop and ask what the salesperson understood or whether clarification is needed Culture and Sales • Examples of sources of information regarding different cultures, cultural expectations, and mannerisms: – Do’s and Taboo’s Around the World by Roger E. Axtell, 3rd edition, NY: John Wiley and Sons, 1993. – Do’s and Taboo’s Around the World for Women in Business by Roger E. Axtell, Tami Briggs and Margaret Corcoran, NY: John Wiley and Sons, 1997. – Dun and Bradstreets’ Guide to Doing Business Around the World by Terri Morrison, Wayne A. Conaway and Joseph J. Douress, NJ: Prentice-Hall, 2000. – Kiss, Bow, or Shake Hands: How to Do Business in 60 Countries by Terri Morrison, Wayne A. Conaway and George A. Borden, Adams Media Corporation, 1995. – Managing Cultural Differences by Philip R. Harris and Robert T. Moran, Houston: Gulf Professional Publishing Company, 2000. Culture and Sales • Culture shapes the behaviors and expectations of human beings. • If sales managers understand the nature of culture and how it is manifested, they can enhance the chances of success for the sales force in the following ways: – They can choose the appropriate individuals given the nature of their potential foreign sales territories based upon cultural fit. – They can arm the salesperson with a cultural sensitivity that will enhance the chances of building a meaningful long-term relationship with potential customers. – Culturally aware sales managers can be better prepared to develop their own relationships with the various members of their sales force.