Chapter 17 - Personal selling and sales management. What you should learn from chapter 17: The role of interpersonal selling in international marketing, the considerations in designing an international sales force, the steps to recruiting three types of international salespeople, selection criteria for international sales and marketing positions,...
International Marketi ng 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 McGrawHill/Irwin InternationalMarketing14/e Copyrightâ2009byTheMcGrawưHillCompanies,Inc.Allrightsreserved 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 Global Perspective International Assignments are Glamorous, Right? • Job security • Adjustment to other cultures • Readjustment upon return to U.S • Will an international assignment really help your career? 17-4 Designing the Sales Force • Relationship marketing and customer relationship management • 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 17-5 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 17-6 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 17-7 The 20 Most Expensive Cities to Live on the Planet (in order) Exhibit 17.1 17-8 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 17-9 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 17-10 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 17-27 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 17-28 THE KEY ROLES OF SALESPEOPLE THE SELLING FUNCTION MANAGE CUSTOMER RELATIONSHIPS GATHER INFORMATION • From Customers • From Competitors • About Market Forces 13-29 SALES ROLE IN THE ORGANIZATION • MANAGE RELATIONSHIPS – CREATE CUSTOMERS FOR LIFE – PROVIDE CUSTOMER SERVICE – COORDINATE CORPORATE RESOURCES • GATHERING INFORMATION – CUSTOMER DIALOGUE IS USEFUL – OBTAIN COMPETITIVE INFORMATION 13-30 DETERMINING THE SALES STRATEGY OPTION TO FIT YOUR CUSTOMER SCRIPT-BASED SELLING—Used when all customers’ needs are similar NEEDS SATISFACTION SELLING—Identifying buyers’ needs and selling to them CONSULTATIVE SELLING—Bring specialized expertise for a customized solution STRATEGIC PARTNER SELLING—Seller-Customer joint effort for developing product solutions Exhibit 13-1 13-31 STAGES IN RELATIONSHIP BUILDLING Commitment Expansio n Exploration Awareness •Generate reorders •Upgrade •Set correct •Full-line expectations •Ensure proper sell initial use •Follow up •Make personal visits •Handle complaints •Achieve customer satisfaction •Secure complete commitment from both companies •Manage change Dissolution • Limited relationships • Failure to monitor competitors or industry • Complacency Exhibit 13-2 13-32 PARTNERSHIP COMMUNICATION: FROM SINGLE LEVEL TO MULTI-LEVEL Buying Company Production Marketing Purchasing Department Finance Accounting Shipping & Receiving BEFORE PARTNERING Selling Company Engineering Marketing Sales Purchasing Salesperson Finance Agent AFTER Credit and Billing PARTNERING Shipping Buying Company Selling Company & Receiving Production Engineering Marketing Marketing Purchasing Sales Purchasing Finance Finance Credit & Billing Accounting Shipping Shipping & Receiving & Receiving Exhibit 13-4 13-33 SALES ORGANIZATION OPTIONS ORGANIZE GEOGRAPHICALLY USING CITIES, STATES, COUNTRIES, ZIP CODES, BY ACCOUNT ORGANIZE BY PRODUCT AND DEVELOP SPECIALISTS FOR EACH PRODUCT CATEGORY USE SALES TEAMS TO DEVELOP AND KEEP NEW BUSINESS 13-34 BUYING AND SELLING TEAMS STREAMLINE MULTILEVEL SELLING Buying Company Selling Company Vice President Of Purchasing Vice President Of Sales Director of Purchasing Account Manager Engineer Product Specialist Exhibit 13-5 13-35 CUSTOMER FOCUSED TEAM STRUCTURE Sales Specialists Manufacturing Customer Support Service Shipping Account Manager Account Team Consultant Leader CSS Rep F&A Rep Customer Shipping Manager Sales Specialists Purchasing Other Rep.(s) Agent Purchasing Finance and Accounting Prod / Ind Mktg Groups Other Business Units Exhibit 13-7 13-36 ALLOCATION GRID FOR SALES RESOURCES MARKET LIFETIME VALUE Low High Relatively fewer Strong resources should be allocated here RELATIVE POSITION Weak Assign to alternative method of communicating, such as telemarketing Maintain sufficient resources to continue to reap the sales potential and strong position Direct more sales resources here Exhibit 13-8 13-37 • • • DO YOU OUTSOURCE THE SALES FORCE? YES Establish relationships Salary and selling expenses can be limited Little/no up-front investment NO • Loss of control over sales presentation • Products may not be a selling priority with representative TO MAKE IT WORK: INVEST IN TRAINING AND MERCHANDISING MATERIALS 13-38 SALES FORCE CONTROL MECHANISMS • ESTABLISH QUOTAS – Fair and Understandable • Activity Quotas • Performance Quotas • ESTABLISH COMPENSATION PLAN – Equitable, Stable, Understandable • • • • Straight Salary Straight Commission Combination Plans Bonus System • MOTIVATION ACTIVITIES– • Keep Sales Force Producing 13-39 MANAGER’S DILEMMA: EVALUATING PERFORMANCE & MAINTAINING MOTIVATION STEPS TO EVALUATE SALES FORCE PERFORMANCE REVIEW SPECIFIC SALES OBJ ECTIVES OBTAIN APPROPRIATE PERFORMANCE DATA (outcomes and effort) EVALUATE WHAT WAS BEYOND SALESPERSON’S CONTROL IDENTIFY PROBLEMS AND OPPORTUNITIES CREATE A STRATEGY THAT RESOLVES PROBLEMS AND SEIZES OPPORTUNITIES Exhibit 13-11 13-40 RECOGNIZING AND IDENTIFYING A PROBLEM PROBLEM RECOGNITION “The Problem” Expectations Results Enormity of problem rests on length of this difference PROBLEM IDENTIFICATION THE 6xWHY FILTER Ask the WHY question at least six times (or as many times as necessary) Our sales are down: WHY? We can’t see customers: WHY? We can’t make appointments on time : WHY? We spend too much time covering territory : WHY? Our territories are too big : WHY? We don’t have enough salespeople : WHY? CONCLUSION / PROBLEM We haven’t matched demand to our sales force 13-41 ... Third-country nationals – Expatriates working for a foreign company • Host-country nationals – Work restrictions 1 7-7 The 20 Most Expensive Cities to Live on the Planet (in order) Exhibit 17. 1 1 7-8 ... home-office personnel with cross-cultural training • The Internet now makes some kinds of sales training much more efficient 1 7-1 0 Personal Selling Tips from Brussels to Bangkok Exhibit 17. 2 1 7-1 1... systems for an international sales force • How to prepare Americans for foreign assignments • The changing profile of the global sales and marketing manager 1 7-3 Global Perspective International