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international & personal selling

international & personal selling



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    selling.. selling.. Presentation Transcript

    • International Personal Selling and Personnel Management Session 10c
    • Learning Objectives
      • Examine companies' expatriate management strategies
      • Describe the different types of employees suited for a company's international operations
      • Address issues related to expatriate management, such as motivating international employees and ensuring successful assignment performance and repatriation
    • International Personnel Issues
      • Hiring expatriates or locals is a function of the company’s involvement in the market
      • Market presence, entry mode and commitment to market determine:
        • Size of the sales team
        • Types of sales representatives
    • International Presence
      • Companies using home-country middlemen
        • Rely on sales force of the intermediary for international sales
      • Companies using host-country brokers and agents
        • Rely on sales force of the intermediary for international sales
      • Companies using host-country manufacturers’ representatives and distributors
        • Are engaged, at some level, in personal selling
        • Hires local salespeople to call on distributors
        • May have local sales office, or a wholly-owned subsidiary that engages in the marketing function
    • Expatriates: Home-Country Nationals
      • Preferred by companies whose products are at the forefront of technology :
        • Preferred when selling relies on extensive training and highly specialized information
        • Preferred where there is a greater interdependence between overseas unit and corporate headquarters
    • Expatriates: Home-Country Nationals, continued
      • Disadvantages :
        • High costs
        • Cultural barriers
        • Lack of local personal connections in the local environment
        • Difficulty finding employees willing to take on international assignments
    • Expatriates: Third-Country Nationals
        • Employees working temporarily in the assignment country who are NOT nationals of that country OR of country in which headquarters is located
        • Speak numerous languages
        • Familiar with customs and business practices in different environments
        • Have learned, through experience, to adapt optimally for international assignments
        • Cost less than home-country nationals
    • Host-Country Nationals
        • Local salespeople who work in the home country for an international corporation
        • Understands the business environment and business practices in the company’s home country
        • Well trained technically
        • Willing to return to home country to work for the multinational firm
    • Long Distance International Selling
        • Selling via the Internet or mail is likely to become an important venue in approaching new customers overseas in the near future.
        • Costs of distance selling are lower, allowing for greater market coverage,but the selling infrastructure (mail, Internet accessibility) lags behind in developing countries.
    • Managing International Employees
      • Companies that attempt to transplant personnel policies proven successful in the home country will run against obstacles in different international environments.
        • Issues related to culture come into play
    • Buyer-Seller Relationship
      • Certain selling approaches work better than others
        • Hard sell
        • Eye-to-eye contact
        • Business cards
        • Negotiation
        • Building relationships
    • Understanding Values
      • National Character
      • Organizational Culture
      • Individual Personality
      • CONTENT: substantive aspects of the interaction
      • STYLE: rituals, format, mannerisms, and ground rules
    • National Character
      • Personality traits shared at the national level
        • Individualism
        • Power Distance
        • Uncertainty Avoidance
        • Masculinity/Femininity
    • Low- and High-Context Cultures
      • Low Context cultures use formal, direct communication that is verbally expressed.
      • High Context cultures use extensive nonverbal information to convey the message: cues, gestures, and facial expressions.
    • Successfully Managing Expatriates
        • Success requires:
        • Effective selection / screening
        • Training and development strategies
        • Motivating for peak performance
        • Ensuring successful repatriation
      50% of expatriate assignments FAIL
    • Recruiting Expatriates: Ideal Expatriate
      • Has high cultural sensitivity and awareness
      • Has the ability to adapt behavior in cross-national settings
      • Has high level of resiliency
      • Has extensive international knowledge and willingness to gain it
      • Has a strong desire to work overseas
    • Culture Shock and Motivation
      • A pervasive feeling of anxiety resulting from one’s presence in an unfamiliar culture .
      • Lessen shock by:
        • Helping employees know what to expect:
          • Physical Environment
          • Social Environment
        • Creating additional incentives:
          • Extrinsic factors: compensation, leave and family policies, and career incentives
    • Compensation Incentives
      • Cost of living adjustment
      • Housing allowance
      • Education allowance
      • Home-leave allowance
      • Moving allowance
      • Repatriation allowance
    • Expatriate Obstacles
      • Gravitating toward home-country expatriates
      • Relying extensively on expatriate groups and forums (websites that unite expatriates in a region, newspapers, etc.)
      • Isolation
      Isolation Going Native
    • Repatriation Issues
      • Vast company changes
      • Loss of status
      • Lack of community
      • Reverse culture shock
      • AVOID by maintaining connection to company headquarters
    • Session Summary
      • Addressed expatriate management strategies
      • Described the different types of employees hired for firms’ international operations
      • Addressed issues related to ensuring the success of international assignments