Chapter 1

Introduction
Sales Management:
A Global Perspective
Introduction

 Managing a sales force is a complex task

 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

 Most business occurs in NAFTA, Europe, and Pacific Rim
 Culture, geography, technology, and legal
systems
 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
 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
 Instant feedback – customer response
 Web pages – track customers
 Amount of information provided
 Communications
 Cell phones, faxes, inexpensive long distance
 Customer relationship management
 Interwoven with relationship marketing
Demographic Changes

 Growing diversity at work and in the market

 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
 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?
 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
 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
 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
 U.S. Foreign Corrupt Practices Act
 Ethical expectations vary by culture
 Sales managers must control sales force ethics
Ethics
 Are all salespersons unethical?
 Why are salespersons perceived to be
untrustworthy?
 If a salesperson is unethical what will likely
be the outcome?
 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
 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
 Importance of a global view amid cultures
 II – Global Personal Selling
 Historical and the selling process
 III – Global Human Resources
 Select, train, assign, motivate, compensate
 IV – Global Strategic Management Issues
 Forecasting, segmenting, strategies, CRM
Chapter 1 Questions
 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?