SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Lecture No. 9-1

Cross cultural sales negotiations

(05 Sept 2021)

Global Marketing Strategy

By: Roshendra Dhoj Khadka 1
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Negotiation

Opportunity for collaborative problem solving

Global Marketing Strategy

By: Roshendra Dhoj Khadka 2
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Direct negotiation

CROSS-CULTURAL
NEGOTIATION

Indirect negotiation

(Source: Hollensen & Banerjee, 2010, p.516-517)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 3
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations
Figur e 18.1 The cr os s -cultur al negotiation pr oces s is influenced by the cultur al dis tance
between buyer and s eller Cross culture negotiations

(Source: Hollensen & Banerjee, 2010, p.553-563)

Source: Adapted from Simintiras , A.C. and Thomas , A.H. (1998) and Simintiras , A.C. and Reynolds , N. (2001).
Global Marketing Strategy
By: Roshendra Dhoj Khadka 4
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Gap analysis in a cross-cultural negotiation

(Source: Hollensen & Banerjee, 2010, p.553-566)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 5
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Cross culture negotiations

(Source: Hollensen & Banerjee, 2010, p.553-563)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 6
 SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

• Assertiveness; Independence; Task oriented & self

achievement.
•
Masculinity/Femininity •
Win-lose situation; Ego boosting
Collaborative and compromising
Implication of Hofstede’s

• Comfort level of a person in unclear and risky situation

• High and Low
Uncertainty avoidance

• High power distance: Authoritarian, Protocol & hierarchy

work

(CEO the decision maker ); Japan, Korea & Russia

• Low power distance: Western concept; Frankness &
Power distance directness;

• Individualistic: Task before relationships and value

independence highly; Unilateral decision (US)
• Collectivism: China: Stable relationship with long term
Individualism/Collectivism orientation; Value solidarity, loyalty & strong
interdependence;

• Different shared values due to different culture;

Different organizational • British, French & Germans have different organizational
culture
models
(Source: Hollensen & Banerjee, 2010, p563-564)
Global Marketing Strategy
By: Roshendra Dhoj Khadka 7
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Learn how
the other
culture builds
Know when trust Avoid Yes-
to bottle it up
Or-No
or let it all
questions
pour out

Adapt the 5 rules of

way you thumb for Be careful
express cross- about putting
disagreemen culture it on writing
t negotiation

(Source: Meyer, E. (2015) HBR.ORG)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 8
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Preparing to face your counterparts

(Source: Meyer, E. (2015) HBR.ORG)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 9
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Intercultural preparation
Build awareness about how cultural differences impact upon them in the
sales organization

Motivate salespeople and managers to ‘rethink’ their behaviour and

attitude towards customers

Allow salespeople to examine their own biases in a psychologically safe

environment

Examine how stereotypes are developed, and how they can create
misunderstandings between buyers and sellers

Identify diversity issues that need to be addressed in the international

sales organization

(Source: Hollensen & Banerjee, 2010, p.630)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 1
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Coping with expatriates

The decision to employ an expatriate

salesperson

Selection of expatriates

Training

Support

Repatriation

(Source: Hollensen & Banerjee, 2010, p.631-633)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 1
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Repatriation

Global Marketing Strategy

By: Roshendra Dhoj Khadka 1
 SOMTU
also the example in Figure 18.3 for a systematic approach to global learning from
Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations
transferring ‘best practices’ in the firm’s different international markets.
Knowledge management and learning across borders
Figure 18.3 ‘Bottom-up’ learning in global marketing

(Source: Hollensen & Banerjee, 2010, p.634)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 1
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Transnational bribery in cross-cultural negotiations

(Source: Hollensen & Banerjee, 2010, p.634)

Global Marketing Strategy
By: Roshendra Dhoj Khadka 1
SOMTU Part V-Implementing and coordinating the global marketing programme: Cross cultural sales negotiations

Thank You

Global Marketing Strategy

By: Roshendra Dhoj Khadka 1