International Marketing 15th edition

Philip R. Cateora, Mary C. Gilly, and John L. Graham

Overview
Designing the sales force Recruiting marketing and sales personnel Selecting sales and marketing personnel Training for international marketing Motivating sales personnel Designing compensation systems Evaluating and controlling sales representatives Preparing U.S. personnel for foreign assignments Developing cultural awareness The changing profile of the global manager Foreign-language skills
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Recruiting Marketing 17 and Sales Personnel (1 of 2)

The largest personnel requirement abroad for most companies is the sales force Expatriates
Numbers are declining Important for highly technical or involved products High cost Cultural and legal barriers Limited number of high-caliber personnel willing to live abroad

Virtual expatriates
Manage operations in other countries but dont live there
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Recruiting Marketing 17 and Sales Personnel (2 of 2)

Local nationals
Transcend both cultural and legal barriers Familiar with distribution systems and referral networks Headquarters personnel may ignore their advice Lack of availability Sales positions viewed negatively

Third-country nationals
Expatriates working for a foreign company

Host-country nationals
Work restrictions
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Selecting Sales and Marketing Personnel

Management must define precisely what is expected of people Prime requisites
Maturity Emotional stability Breadth of knowledge Positive outlook Flexibility Cultural empathy Energetic and enjoy travel

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Mistakes can be costly A managers culture affects personnel decisions

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Training for International Marketing

The home culture of the sales person The culture of the business system and foreign market

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The nature of the training program depends on:

Continual training is important in foreign markets Companies should provide home-office personnel with cross-cultural training The Internet now makes some kinds of sales training much more efficient
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Salespeoples Distribution of 100 Points among Rewards in Terms of Their Importance

Exhibit 17.3

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Designing Compensation Systems for Expatriates

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Fringe benefits Compensations comparisons between the home office and abroad Short-term assignment compensation Using a compensation program to recruit, develop, motivate, or retain personnel

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Evaluating and Controlling Sales Representatives

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In the U.S., emphasis is placed on individual performance; it can easily be measured by sales revenues generated In many countries evaluation is more complex where teamwork is favored over individual effort In the U.S., the primary tool used by sales managers is the incentive system In other countries, corporate control and frequent interactions with peers and supervisors are the means of motivation and control
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Preparing U.S. Personnel for Foreign Assignments

Cost of foreign assignments
Typically from 150-400 percent of the annual base salary Cost increases if the expatriate returns home before completing the scheduled assignment

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The planning process

Must begin prior to the selection of those going abroad Must extend to their specific assignments after returning home
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Overcoming Reluctance 17 to Accept a Foreign Assignment

Concerns for career
An absence will adversely affect opportunities for advancement

Concerns for family

Education of the children Isolation from family and friends Proper health care The potential for violence

Special compensations packages deal with concerns

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Reducing the Rate of Early Returns

Evaluation of an employees family
75 percent of families sent abroad experience adjustment problems with children or marital discord

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Cross-cultural training for families as well as the employee Local ombudsmen

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Successful Expatriate Repatriation

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Commit to reassigning expatriates to meaningful positions Create a mentor program Offer a written job guarantee stating what company is obligated to do for returning expatriate Keep the expatriate in touch with headquarters through periodic briefings and headquarter visits Prepare the expatriate and family for repatriation once a return date is set
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The Changing Profile of the Global Manager

Fewer companies today limit their search for senior-level executive talent to their home countries Some companies believe
It is important to have international assignments early in a persons career International training is an integral part of their entry-level development programs

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Many companies are active in making the foreign experience an integrated part of a successful corporate career
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Foreign-Language Skills
Many believe:

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Learning a language improves cultural understanding and business relationships To be taken seriously in the business community, the expatriate must be at least conversational in the host language

Many companies are making stronger efforts to recruit people who are bilingual or multilingual

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