This document discusses international sales management. It notes that customer needs vary by country and what works in one may not work in another. It asks questions about target customers, buying processes, and whether competitors are local or multinational. It examines sales force structures based on geography, products, customers, and markets. It discusses advantages and disadvantages of different salesperson types and managing the sales force through selection, training, compensation, administration, and control while considering cultural factors. The key takeaway is that managers must understand local markets and not assume global consistency, while selecting the right salespeople and considering culture in all decisions.

1. Earl D. Honeycutt, Jr.
John B. Ford

2. Introduction
Internationalization - expansion of the firms’
marketing and sales effort in other countries.
Diverse customer needs for different countries
“Do not automatically assume that what has
worked in one country will work for another.”
Close examination of the sales management
process to effectively serve international clients.

3. Questions to Consider
Do they currently buy
Who are the target Are competitors local or
products from
consumers? multinational?
competitors?
If necessary, how do we
Does the company effectively recruit, train,
What buying process is
possess the labor skills compensate, motivate
employed by the
needed or must outside and direct sales
potential customer?
personnel be hired? personnel for these
markets?

4. Sales force Organization
Structure Appropriate Conditions
•Undeveloped Markets
Geography •Small Sales volume
•Similar Language /Culture, Single Product line
Product •Established Market
Customer •Broad Product lines
•Large sales volume
Combination •Large/Developed Markets
•Distinct Language/ Culture

5. Advantages and Disadvantages of Salesperson Types
Category Advantages Disadvantages
Expatriates •Product knowledge •Highest costs (e.g.
•Trained for promotion turnover and training
•Greater home control costs)
Host Country •Economical •Needs product training
•High market knowledge •Low esteem
•Language skills •Importance of language
•Best cultural knowledge skills declining
•Implement faster •Not so loyal
Third Country •Cultural sensitivity •Face identity problems
•Language skills •Blocked promotions
•Economical •Income gaps
•Allows regional sales •Needs product/
coverage company Training
•May allow sales to be in •Loyalty assurance
conflict with the home
country
Based on culture!

6. Managing the Sales Force
Sales
Sales
Sales Training Compensation
Selection
and Motivation
Sales
Sales
Management
Administration
Control

7. Sales Selection
More complicated for international customers
Interviews lack reliability
Be aware of cultural factors
Clearly define expectations to sales
personnel

8. Sales Training
Viewed differently in each culture
(methods vary)
Exercise caution in translating manuals
All should be trained in
• How to sell
• Company policies and procedures
• Product line and performance information
• Local market conditions

9. Sales Compensation and
Motivation
“Each culture has different
expectations and motivations.”
“Do not assume that similar compensation
system works universally.”
“Be sensitive in achieving balance between
monetary and nonmonetary factors.”

10. Sales Administration
What type of activities – office hours, reports, should be
required?
This differs depending upon cultural expectations.
Sales automation is imperative for success.
There is a need for awareness in how to properly communicate.

11. Sales Management Control
Level of freedom given to overseas managers to
make decisions
Varies across cultures
• Quantitative Measurement
• Asia = Less, US = More
Firms in highly competitive markets = increased
level of controls
Types of control should reflect a sensitivity to
the local needs and conditions

12. Conclusions
Similarities between domestic and
international issues
Opportunities are easy to recognize
• Challenges are hard to overcome
Globally oriented vision
• Understanding of different cultures

13. Managerial Implications
Marketing and sales managers :
1. must thoroughly understand the market the
company is entering.
2. should not automatically assume global
markets are managed like domestic
markets.
3. must select the correct sales person for the
situation.
4. must consider the role of culture in every
decision.