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 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?
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 dont 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 managers 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 crosscultural 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 Dos
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 Donts
Dont design the plan centrally and dictate to local offices.
Dont create a similar framework for jobs with different
responsibilities.
Dont require consistency on every performance measure within
the incentive plan.
Dont assume cultural differences can be managed through the
incentive plan.
Dont 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 employees 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 persons 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

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