Download Personal Selling WHEN TO USE PERSONAL SELLING

International Marketing
14th Edition
P h i l i p R. C a t e o r a
M a r y C. G i l l y
John L. Graham
Personal Selling
and
Sales Management
Chapter 17
McGraw-Hill/Irwin
International Marketing 14/e
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
What Should You Learn?
The role of interpersonal selling in
international marketing
The considerations in designing an
international sales force
The steps to recruiting three types of
international sales people
Selection criteria for international sales and
marketing positions
17-2
What Should You Learn?
The special training needs of international
personnel
Motivation techniques for international sales
representatives
How to design compensation systems for an
international sales force
How to prepare Americans for foreign
assignments
The changing profile of the global sales and
marketing manager
17-3
Case Study
International Assignments are Glamorous, Right?
What problems does an
International salesperson may
encounter?
Will these experiences helpful in
their career?
What can they do in order to
overcome those problems?
17-4
Global Perspective
International Assignments are Glamorous, Right?
Job security
Readjustment upon return to U.S.
Adjustment to other cultures
Will an international assignment really
help your career?
17-5
17-6
17-7
Introduction
 “The salesperson is the company”
 The sales representative is the final link in the
culmination（高潮） of a company’s marketing and
sales effort
 Advances in information technology are allowing
coordination across advertising, marketing research,
and personal selling efforts
 In this dynamic international environment, the tasks
of designing, building, training, motivating, and
compensating an international sales group is
important
 This chapter discusses the alternatives and problems
of managing sales and marketing personnel in foreign
countries
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Personal Selling
Definition
 Personal selling is the process of communicating with
a potential buyer (or buyers) face-to-face with the
purpose of selling a product or service.
 The main thing that sets personal selling apart from
other methods of selling is that the salesperson
conducts business with the customer in person.
 Personal selling is one part of a company's promotion
mix, along with advertising, sales promotion, and
public relations.
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Personal Selling
Advantage
 personal selling allows the salesperson to target the
message specifically to the audience and receive
immediate feedback.
 personal selling can be an important source of
marketing information.
Disadvantage
 personal selling cannot reach as many potential
customers as advertising, plus the cost of each
contact is much higher.
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Personal Selling
Results
 If the sales force is well trained—acting as problem
solvers and advisors for customers rather than using
hard-sell tactics—personal selling may help a small
business build loyal, long-term relationships with
customers.
17-11
Personal Selling
WHEN TO USE PERSONAL SELLING
 In general, if a product has a high unit value and
requires a demonstration of its benefits, it is well
suited for personal sales.
► Highly
technical products, such as computers and copiers,
are also primarily sold through personal sales methods.
 A company that cannot afford a mass-advertising
campaign might consider personal selling as an
alternative to advertising.
Personal Selling with Advertising
17-12
Personal Selling
Selling Agents
 Selling agents are independent salespeople who work
under contract with one or more companies and are
usually paid a straight commission on sales.
 Hiring a selling agent allows a small business to save
the time and money it would have to invest in
recruiting and training an in-house sales force.
 An agent with experience in selling similar products
may provide readymade customers and quick entry
into a sales territory.
17-13
Designing the Sales Force
•
•
As described in previous chapters, distribution strategies will
often vary from country to country
Some markets may require a direct sales force, whereas others
may not
 The hard sell that may work in some countries can be
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)
 The first step in managing a sales force is its design,
which encompasses deciding how many expatriates,
local nationals, or third-country nationals a particular
market requires
17-14
Recruiting Marketing
and Sales Personnel
The largest personnel requirement abroad
for most companies is the sales force
Expatriates





Numbers are declining
Important for highly technical or involved products
High cost
Cultural and legal barriers
Limited number of high-ability personnel willing to live abroad
Virtual expatriates
 Manage operations in other countries but don’t live there
17-15
Recruiting Marketing
and Sales Personnel
Local nationals





Transcend both cultural and legal barriers
Familiar with distribution systems and referral networks
Headquarters personnel may ignore their advice
Lack of availability
Sales positions viewed negatively
Third-country nationals
 Expatriates working for a foreign company
Host-country nationals
 Work restrictions
17-16
The 20 Most Expensive Cities
to Live on the Planet (in order)
Exhibit 17.1
17-17
Selecting Sales
and Marketing Personnel
 Management must define precisely what is
expected of people
 Prime requisites







Maturity
Emotional stability
Breadth of knowledge
Positive outlook
Flexibility
Cultural empathy
Energetic and enjoy travel
 Mistakes can be costly
 A manager’s culture affects personnel decisions
17-18
Training for International Marketing
 Selection mistakes are costly, so sales training is
important
 Training for the expatriates focuses on the
customs and the special foreign sales problems
that will be encountered
 Expatriates are also captives（俘虏） of their own habits and
patterns. Before any training can be effective, open-minded
attitudes must be established
 Training of local personnel require greater emphasis on the
company, its products, technical information, and selling
methods
17-19
Personal Selling Tips
from Brussels to Bangkok
Exhibit 17.2
17-20
Motivating Sales Personnel
• Motivation is especially complicated because the firm is dealing
with different cultures, different sources, and different
philosophies
• The social and competitive contexts still require different
motivational systems.
• Individual incentives that work effectively in the United States
can fail in other cultures
• For example, with Japan’s emphasis on paternalism(家长式作风)
and collectivism and its system of lifetime employment and
seniority, employees seem to derive the greatest satisfaction
from being members of a group; so an offer of an individual
financial reward for outstanding individual effort may not work
• Compensation in Eastern European countries typically involve a
greater emphasis on base pay than in the United States, and
performance-based incentives have been found to be less
effective
17-21
Salespeople’s Distribution
of 100 Points among Rewards
in Terms of Their Importance
Exhibit 17.3
17-22
Designing Compensation
Systems for Expatriates
Fringe benefits(附带福利 )
Compensations comparisons
between the home office and
abroad
Short-term assignment
compensation
Using a compensation program
to recruit, develop, motivate, or
retain personnel
17-23
Global Similarity
to U.S. Compensations Plans
Exhibit 17.4
17-24
A Compensation Blueprint
How IBM Pays 140,000 Sales Executives Worldwide
Exhibit 17.5
17-25
Designing Compensation Systems
The following global sales compensation list of “do’s and don’ts” is
based on IBM’s practices:
• Do involve representatives from key countries
• Do allow local managers to decide the mix
between base and incentive pay
• Do use consistent performance measures
(results paid for) and emphasis on each
measure
• Do allow local countries flexibility in
implementations
• Do use consistent communication and training
themes worldwide
17-26
Designing Compensation Systems
The following global sales compensation list of “do’s and don’ts” is
based on IBM’s practices:
 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
 Don’t proceed without the support of senior sales executives
worldwide
17-27
Evaluating and Controlling Sales Representatives
 Evaluation and control of sales representatives in the U.S. is a
relatively simple task.
 Emphasis is placed on individual performance, which can easily
be measured by sales revenues generated.

However, in many countries the evaluation problem is
more complex, particularly in relationship-oriented
cultures, where teamwork is favored over individual
effort.

Corporate culture and frequent interactions with
peers and supervisors are the means of motivation
and control of sales representatives in the
relationship-oriented cultures like Japan
17-28
Preparing U.S. Personnel for Foreign Assignments
•
•
Annual costs estimates of sending and supporting a manager in
a foreign assignment range from $300,000 to $600,000
Several steps can be taken to successfully prepare U.S.
personnel for international assignments:
1.
Proper selection, training, compensation, and career
development policies
2.
Overcoming Reluctance to Accept a Foreign
Assignment
3.
Reducing the Rate of Early Returns
17-29
Preparing U.S. Personnel for Foreign Assignments
1. Proper selection, training, compensation, and career development
policies
 Foreign assignments typically cost
from 150-400 percent of the annual base
salary
 This cost increases if the expatriate returns home
before completing the scheduled assignment
 The planning process must begin prior
to the selection of those going abroad
and extend to their specific
assignments after returning home
17-30
Preparing U.S. Personnel for Foreign Assignments
2. Overcoming Reluctance to Accept a Foreign Assignment
 Concerns for career:
 An absence will adversely affect opportunities for
advancement
 Concerns for family:




Education of the children
Isolation from family and friends
Proper health care
The potential for violence
17-31
Preparing U.S. Personnel for Foreign Assignments
3. Reducing the Rate of Early Returns
 Evaluation of an employee’s
family
 75 percent of families sent abroad experience
adjustment problems with children or marital
discord
 Cross-cultural training for families
as well as the employee
 Local ombudsmen(当地调研员)
 Someone experience in the country who can offer
immediate help
17-32
Successful Expatriate Repatriation
Five steps can be taken to successfully repatriate an employee
back to the home office:
Commit to reassigning expatriates to meaningful
positions
Create a mentor program, who can act as liaison
between the expatriate and various headquarters
departments
Offer a written job guarantee stating what the
company is obligated to do for the expatriate on
return
Keep the expatriate in touch with headquarters
through periodic briefings and headquarters visits
Prepare the expatriate and family for repatriation
once a return date is set
17-33
Developing Cultural Awareness
Cultural skills can be learned just as social skills can be learned
People with cultural skills should be able to:
1. Communicate respect and convey verbally and
nonverbally a positive regard and sincere interest
in people and their culture.
2. Tolerate ambiguity and cope with cultural
differences and the frustration that frequently
develops when things are different and
circumstances change
3. Display empathy by understanding other
people’s needs and differences from their point
of view
17-34
Developing Cultural Awareness (continued)
Cultural skills can be learned just as social skills can be learned
People with cultural skills should be able to:
4. Remain nonjudgmental about the behavior of
others, particularly with reference to their own
value standards
5. Recognize and control the SRC, that is, recognize
their own culture and values as an influence on
their perceptions, evaluations, and judgment in a
situation
6. Laugh things off—a good sense of humor helps
when frustration levels rise and things do not
work as planned
17-35
The Changing Profile of the Global Manager
 Surveys of chief executives consistently reported that more than
three-quarters had finance, manufacturing, or marketing
backgrounds.
 In the new millennium increasing international competition, the
globalization of companies, technology, demographic shifts, and
the speed of overall change will govern the choice of managers.

Fewer companies today limit their search for seniorlever executive talent to their home countries.

Some companies believes that it is important to have
international assignments early in a person’s career,
and international training is an integral part of their
entry-level development programs
17-36
Foreign Language Skills
 The importance of a second language for a career in
international business.
 Learning a language improves cultural understand and business
relationships.
 Many companies are making stronger
efforts to recruit people who are bilingual or
multilingual.
 If you want to be a major player in
international business in the future, learn to
speak other languages or you might not
make it.
17-37
Summary
The company’s sales force is on the front
line of a marketing organization
The role of marketers in both domestic and
foreign markets along with the composition
of international managerial and sales forces
is rapidly changing
The recent emphasis on using local
personnel operating in their own lands has
highlighted the importance of adapting U.S.
managerial techniques to local needs
17-38
Summary
The development of an effective marketing
organization calls for careful recruiting,
selecting, training, motivating, and
compensating of expatriate personnel and
their families
The most practical method of maintaining an
efficient international sales and marketing
force is careful, concerted planning at all
stages of career development
17-39
Questions
What does it mean by “Personal Selling”?
 What are some of differences between
personal selling and direct selling?
What are some of the characteristics of
internal personal salespersons?
Discuss Compensation System in China and
in America. (probably can be a Short Essay)
17-40