CHAPTER 1 INTRODUCTION

SALES MANAGEMENT: A GLOBAL PERSPECTIVE BY: ADIL ADNAN

INTRODUCTION

MANAGING A SALES FORCE IS A COMPLEX TASK

TODAY THESE TASKS MUST BE ACCOMPLISHED IN THE GLOBAL MARKETPLACE

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

GLOBAL ROLE IS MORE COMPLEX AND UNCERTAIN

THE GLOBAL MARKETPLACE

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 WILL CONTINUE AT A RAPID PACE MANAGERS MUST PLAN FROM A GLOBAL VIEWPOINT FIRMS SUCCESS DEPENDENT ON APPROACH TAKEN

WHERE DO WE GO FROM HERE?

TECHNOLOGICAL INNOVATIONS

CHANGING THE WAY PEOPLE LIVE AND WORK

INTERNET

INSTANT FEEDBACK CUSTOMER RESPONSE WEB PAGES TRACK CUSTOMERS AMOUNT OF INFORMATION PROVIDED CELL PHONES, FAXES, INEXPENSIVE LONG DISTANCE INTERWOVEN WITH RELATIONSHIP MARKETING

COMMUNICATIONS

CUSTOMER RELATIONSHIP MANAGEMENT

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

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

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 Asian governments adhere to legal codes

Different legal environments in the world

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 $28T BY 2009

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

Historical and the selling process Select, train, assign, motivate, compensate Forecasting, segmenting, strategies, CRM

II Global Personal Selling

III Global Human Resources

IV Global Strategic Management Issues

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 BUYERSELLER EQUATION?