Sales Management: A Global Perspective

Chapter 1 Introduction Sales Management: A Global Perspective

Introduction 

Managing a sales force is a complex task  

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Must bridge gap between buyer and seller But must also hire, train, assign, motivate, compensate, evaluate, coach and lead the sales force to reach sales goals

Today these tasks must be accomplished in the global marketplace 

Global role is more complex and uncertain

The Global Marketplace 

Global Marketing and the Triad 

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Culture, geography, technology, and legal systems   

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Most business occurs in NAFTA, Europe, and Pacific Rim

Currency exchange International travel expense Changing time zones

Sales success requires knowledge, experience, and ability 

Sink or swim approach not appropriate

Globalization 

Globalization level increases each year    

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Many firms are threatened, e.g. labor-based World class products e.g. Mercedes, Rolex, Sony No one controls globalization – tariffs or quotas Hurts less educated workers in developed nations

Where do we go from here?   

Will continue at a rapid pace – EU/NAFTA/Asia Managers must plan from a global viewpoint Firm’s success dependent on approach taken

Technological Innovations 

Changing the way people live and work 

Internet   

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Communications 

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Instant feedback – customer response Web pages – track customers Amount of information provided Cell phones, faxes, inexpensive long distance

Customer relationship management 

Interwoven with relationship marketing

Demographic Changes 

Growing diversity at work and in the market  

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By 2050 US will be much more diverse Future buyers and sellers comprised of all races, nationalities, and genders Similar changes occurring in Europe & Asia Creates differing needs for consumers Trend away from expatriates toward local or third country = more diversity in workplace!

Relationship Marketing 

Serve customer needs to maintain long-term and profitable relationship  

Differing meanings - Not new! Expensive to make empty sales calls 

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B2B sales calls average cost $200

Need to facilitate a “Win-Win” situation Information technology allows firms to compute profit stream for each firm 

Differing service levels per customer possible

Class Discussion 

Are all customers and all sales good?  

Should a firm sell to anyone who wants to buy? Why or why not?   

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What criteria should we use to select customers? Should selection criteria be measurable? Why or why not?

If the answer is “no,” how do we make sure customers are worth our effort?

Economic/Legal Changes 

Markets differ economically in potential and attractiveness  

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Asia vs. Japan vs. US vs. Europe Global firms can shift emphasis between markets

Different legal environments in the world  

Russian legal system in flux – EU changes Asian governments adhere to legal codes 

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Different copyright and trademark process

Different worker benefits/employment laws in place 

European labor laws vs. those of US

Ethical Challenges 

Must define and practice ethical behavior    

Sales generates ethical complaints – Why? Buyer-Seller trust essential for success Dissatisfied customers tell more people Ethical standards vary by culture 

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U.S. Foreign Corrupt Practices Act

Ethical expectations vary by culture Sales managers must control sales force ethics

Ethics 

Are all salespersons unethical? 

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If a salesperson is unethical what will likely be the outcome? 

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Why are salespersons perceived to be untrustworthy?

Is this fair?

What role does the sales manager play in this process?

Summary 

Global trade has increased significantly and is predicted to exceed $8T by 2002 

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Roles of sales manager and sales force have changed drastically Nearly all firms compete globally Sales force MUST be managed differently Successful nations will absorb workers from other cultures Must understand disparate cultures we encounter in U.S. and in other nations

Book Approach 

I – Introduction and Culture 

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II – Global Personal Selling 

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Historical and the selling process

III – Global Human Resources 

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Importance of a global view amid cultures

Select, train, assign, motivate, compensate

IV – Global Strategic Management Issues 

Forecasting, segmenting, strategies, CRM

Chapter 1 Questions 

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How will globalization change the operation of firms? The role of the sales manager? How are the internet, communications, and CRM affecting the role of the sales manager and the sales force? What changes to the sales force are necessary to form a relationship? Why is this easier to adopt than implement? Where does trust fit into the buyer-seller equation?