Chapter 2 Culture and Sales

1. Chapter 2Culture and Sales Sales Management: A Global Perspective Earl D. Honeycutt John B. Ford Antonis Simintiras

2. Culture and Sales • Culture: All of the behavioral traits that we acquire from and share with the members of our society. • Acculturation: What is learned and accepted by an outsider after exposure to those within a cultural group. • Assimilation: When an outsider becomes completely absorbed into a new culture.

3. Culture and Sales • Levels of Cultural Aggregation • Global – Forces at work shaping similar expectations of customers, but risky to treat all sales people the same way • Regional – Regional similarities may offer opportunities for 3rd country nationals • National – The key level of aggregation. The most deep set and defining characteristics imprinted on the individual. • Local – Local community has its own culture, but not as important in shaping the individual.

4. Culture and Sales • Hofstede’s National Cultural Dimensions: • Power Distance – The distinctions in the society between the individual and their immediate supervisor in terms of power and ranking. • Uncertainty avoidance – The way in which the society deals with the concept of risk. • Individualism/collectivism – The importance of the group as opposed to the individual in the society. • Masculinity/femininity – The traits valued by society which are identified in terms of masculine (success, confidence, strength) or feminine (nurturing, compassion, quality of life).

5. Culture and Sales • National Cultural Dimensions: • Confucian Dynamism (added by Bond) • The importance of a short-term versus a long-term time orientation and commitment.

6. Culture and Sales • Managerial Considerations: • The chances for cultural conflict should be minimized to enhance the probability of successful relationship building between salesperson and customer. • Making the salesperson sensitive to cultural differences is important. • Periodic cultural training for salespeople and sales managers can be extremely beneficial.

7. Culture and Sales

8. Culture and Sales • Components of Culture: • Verbal Communication - Three problem areas to consider: • Simple carelessness – The inappropriate or accidental use of a word. • Multiple-meaning words – Using words with more than one meaning where primary meaning is other than was intended. • Idioms – Using phrases with no literal translation. • Cadillac product; raining cats and dogs

9. Culture and Sales • Additional language concerns: • Use the correct forms of the language when addressing a superior as opposed to a peer. • Developing countries often have many different dialects which are used. • The language may be experiencing changes on a daily basis (vernacular). • High context versus low context cultures have different language uses and needs for communications.

10. Culture and Sales • Types of Nonverbal Communication: • Appearance/Grooming • Tone of Voice/Speech Pattern • Timing of Verbal Responses • Posture • Use of Space in Communications • Sense of Smell • Use of Hand Gestures to Communicate • Physical Contact in Communication • Eye Contact in Communication • Body Angles

11. Culture and Sales • Communication Considerations: • The better prepared the salesperson is to understand verbal and non-verbal communication issues, the greater the chances for building successful relationships with potential customers. Some possibilities: • Identify and prepare for specific customers. • Cultural training/sensitizing is a necessity. • The key is to avoid actions and words that could be considered to be offensive.

12. Culture and Sales • Components of Culture: • Religion – Watch out for: • Religious holidays/celebrations/obligations may affect salesperson performance. • Time for prayer may be important. • Consumption of certain foods may be prohibited. • Consumption of alcohol may be forbidden. • Gender relationships may be controlled.

13. Culture and Sales • Components of Culture: • Education – be sensitive to: • Difficulties for customer dealing with someone less educated. • Salespeople should have at least a university/college education. • Sales managers must sell students in many countries on the value of a sales career. • Salespeople may be concerned about educational opportunities for their children if they are sent overseas.

14. Culture and Sales • Components of Culture: • Aesthetics - Remember: • Salesperson appearance must conform with expectations of customer (hair, jewelry, smell, etc.). • The materials used by the salesperson should also conform to customer expectations (sales presentations, product/promotional literature, etc.).

15. Culture and Sales • Components of Culture: • Social Organizations – Areas to consider: • How well does the salesperson work in group settings, especially when the company uses sales teams? • Problems arising from males in patriarchal societies working for female superiors. • Problems arising from older individuals in hierarchical societies working for younger supervisors. • Problems arising from affluent individuals working for supervisors from lower income backgrounds.

16. Culture and Sales • Components of Culture: • Technology - Watch out for: • Customers who are more technologically literate than sales people. • Sales people selling products way too advanced technologically for potential customers. • Technological literacy gaps between sales manager and sales people.

17. Culture and Sales • Components of Culture: • Values and Norms - Consider: • Conflicts between sales manager and salespeople reflecting differences in value orientations (conservative vs. liberal, ethnocentric vs. polycentric, egalitarian vs. male-dominated decision making, etc.) • Conflicts between salespeople and customers reflecting value differences. • Ethnocentric vs. polycentric perspectives.

18. Culture and Sales • Essential skills and abilities for multi-cultural sales manager dealing with a global sales force: • Respect for others • Tolerance for ambiguity • Ability to relate to people • Being nonjudgmental • Ability to personalize one’s observations • Empathy • Persistence/patience

19. Culture and Sales • Suggestions for the sales manager to enhance their chances of clear and meaningful communications with foreign salespeople: • Speak slowly and clearly – not loudly! • Avoid the use of idiomatic expressions • Try not to appear impatient or irritated • Periodically stop and ask what the salesperson understood or whether clarification is needed

20. Culture and Sales • Examples of sources of information regarding different cultures, cultural expectations, and mannerisms: • Do’s and Taboo’s Around the World by Roger E. Axtell, 3rd edition, NY: John Wiley and Sons, 1993. • Do’s and Taboo’s Around the World for Women in Business by Roger E. Axtell, Tami Briggs and Margaret Corcoran, NY: John Wiley and Sons, 1997. • Dun and Bradstreets’ Guide to Doing Business Around the World by Terri Morrison, Wayne A. Conaway and Joseph J. Douress, NJ: Prentice-Hall, 2000. • Kiss, Bow, or Shake Hands: How to Do Business in 60 Countries by Terri Morrison, Wayne A. Conaway and George A. Borden, Adams Media Corporation, 1995. • Managing Cultural Differences by Philip R. Harris and Robert T. Moran, Houston: Gulf Professional Publishing Company, 2000.

21. Culture and Sales • Culture shapes the behaviors and expectations of human beings. • If sales managers understand the nature of culture and how it is manifested, they can enhance the chances of success for the sales force in the following ways: • They can choose the appropriate individuals given the nature of their potential foreign sales territories based upon cultural fit. • They can arm the salesperson with a cultural sensitivity that will enhance the chances of building a meaningful long-term relationship with potential customers. • Culturally aware sales managers can be better prepared to develop their own relationships with the various members of their sales force.