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international & personal selling

international & personal selling

Published in: Business, Education
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  • 1. International Personal Selling and Personnel Management Session 10c
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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.
  • 10. 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
  • 11. Buyer-Seller Relationship
    • Certain selling approaches work better than others
      • Hard sell
      • Eye-to-eye contact
      • Business cards
      • Negotiation
      • Building relationships
  • 12. Understanding Values
    • National Character
    • Organizational Culture
    • Individual Personality
    • CONTENT: substantive aspects of the interaction
    • STYLE: rituals, format, mannerisms, and ground rules
  • 13. National Character
    • Personality traits shared at the national level
      • Individualism
      • Power Distance
      • Uncertainty Avoidance
      • Masculinity/Femininity
  • 14. 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.
  • 15. Successfully Managing Expatriates
      • Success requires:
      • Effective selection / screening
      • Training and development strategies
      • Motivating for peak performance
      • Ensuring successful repatriation
    50% of expatriate assignments FAIL
  • 16. 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
  • 17. 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
  • 18. Compensation Incentives
    • Cost of living adjustment
    • Housing allowance
    • Education allowance
    • Home-leave allowance
    • Moving allowance
    • Repatriation allowance
  • 19. 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
  • 20. Repatriation Issues
    • Vast company changes
    • Loss of status
    • Lack of community
    • Reverse culture shock
    • AVOID by maintaining connection to company headquarters
  • 21. 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

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