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Chapter Learning Objectives

• 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• 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

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Global PerspectiveInternational Assignments are Glamorous, Right?

• Job security• Readjustment upon return to U.S.• Adjustment to other cultures• Will an international assignment really help your career?• Relationship marketing and customer relationship management

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Designing the Sales Force

• Decisions must be made regarding the numbers, characteristics, and assignments of sales personnel

• Different market requirements regarding direct sales and customer approach

• Territory allocation• Customer call plans

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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-caliber personnel willing to live abroad

• Virtual expatriates- Manage operations in other countries but don’t live there

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Recruiting Marketing and Sales Personnel (continued)

• 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

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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

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Training for International Marketing

• The nature of the training program depends on:- The home culture of the sales person- The culture of the business system and foreign market

• Continual training is important in foreign markets• Companies should provide home-office personnel with cross-

cultural training• The Internet now makes some kinds of sales training much more

efficient

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Motivating Sales Personnel

• National differences must always be considered when motivating the marketing force

• Individual incentives that work effectively in the U.S. can fail completely in other cultures

• Communications are important in maintaining high levels of motivation

• A company needs to make clear the opportunities for growth within the firm

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Designing Compensation Systems for Expatriates

• Fringe benefits• Compensations comparisons between the home office and abroad• Short-term assignment compensation• Using a compensation program to recruit, develop, motivate, or

retain personnel

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Designing Compensation Systems for a Global Sales Force – The Do’s

• 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.

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Designing Compensation Systems for a Global Sales Force – The Don’ts

• 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.

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Evaluating and Controlling Sales Representatives

• In the U.S., emphasis is placed on individual performance, which can easily be measured by sales revenues generated

• In many countries evaluation is more complex where teamwork is favored over individual effort

• The primary control tool used by American sales managers is the incentive system

• In other countries, corporate control and frequent interactions with peers and supervisors are the means of motivation and control

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Preparing U.S. Personnel for Foreign Assignments

• 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

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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

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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

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Successful Expatriate Repatriation

• Commit to reassigning expatriates to meaningful positions.• Create a mentor program.• 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 headquarter visits.• Prepare the expatriate and family for repatriation once a return

date is set.

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Developing Cultural Awareness

• Most expatriate failures are cause by lack of an understanding of cultural differences and their effect on management skills.

• Good cultural skills can be learned and developed.• Cultural skills provide the individual with the ability to relate to a

different culture even when the individual is unfamiliar with the details of that particular culture.

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The Changing Profile of the Global Manager

• Fewer companies today limit their search for senior-level executive talent to their home countries

• Some companies believe 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

• Many companies are active in making the foreign experience an integrated part of a successful corporate career

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Foreign-Language Skills

• Many believe that learning a language improves cultural understanding and business relationships

• Many believe that to be taken seriously in the business community, the expatriate must be at least conversational in the host language

• Many companies are making stronger efforts to recruit people who are bilingual or multilingual