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