MIM 515: Global Marketing Managing Global Sales & Direct Marketing

1. MIM 515: Global MarketingManaging Global Sales & Direct Marketing Tom Gillpatrick, Ph.D. 15 December 2001 Day Eight

2. Day Eight Objectives • Sales Management • Cultural Issues in Marketing & Sales • Examples of Media • Case Analysis- Arrow Electronics

3. The International Communications Process Cultural Context B Cultural Context A Message channel Encoding Advertising Media and or personal sales force Message translated into appropriate meaning Noise Competitive acti-vities, other sales-people, confusion and so on Decoding Encoded message interpreted into meaning Feedback Evaluation of communications process and measure of action by receiver Information source Receiver Action by consumer responding to decoded message Marketer with a product

4. Steps in Communication Process • ID target audience • Determine communication objective • Design the message • Select the communications channel • Establish the communications budget • Decide on the promotion mix • Measure the results • Manage & coordinate IMC process

5. Determine the Target Audience • Who is the target? • The more specific the better • Identify characteristics, profile of audience • Identify what media, communications used

6. Determine Your objectives • What kind of communication? • Inform, persuade, remind • DAGMAR • Hierarchy of Effects- awareness, knowledge, interest, liking, preference,conviction, action

7. Design Message & Budget • Creative • Content, order of points, positioning, format • Style/appeal used: slice of life, humor, lifestyle, music, use of evidence, testimonials • Budget • PLC stage, share goals, competition, product type/ involvement, type of budging process

8. Message Channel/Media • Deciding on reach , frequency and impact • Media advantages and disadvantages • Selecting a media vehicle • Media scheduling and IMC • Evaluating effectiveness

9. SALES MANAGEMENT

10. Building the foundation for global selling I do not know who you are. I do not know your company. I do not know your company’s product. I do not know what your company stands for. I do not know your company’s customers. I do not know your company’s record. I do not know your company’s reputation. Now, what is it you want to sell me?

11. Market Facilitators The Company The Competition Government Institutions Interest Groups Advertising Agencies Securities Analysts Market Research Firms Business Journalists PR Firms Trade Journalists Distributors suppliers of Complementary Products & Services Consultants Trade Associations OEM’s VAR’s The Customer

12. Basic Selling Tasks(Allocating time & Cross cultural challenges) • Prospecting • Targeting • Communicating • Selling • Servicing • Information gathering • Allocating

13. Sales Management • Overview • 1. Market Entry Options & Sales Strategy • 2. Cultural Considerations • 3. Impact of Culture on Sales Management and Personal Selling • 4. Expatriates

14. Market Entry Options and Sales Force Strategy • Degree of Involvement and Sales Management Issues • Role of Foreign Governments

15. Cultural Considerations • Personal Selling • Relationship marketing • “guanxi,” “wa,” “”inhwa” • Nature of relationships & levels, time, patience • Corporate Culture • Myers-Briggs Type Indicator • Myers-Briggs Type Indicator of Personal Characteristics • Sales Negotiation- • Language, eye contact, status/title, decision making styles, mediation, contacts, informal contacts

17. Impact of Culture on Sales Management and Personal Selling Process • Sales Force Objectives • Sales Force Strategy • Recruiting and Selecting • Training

18. Impact of Culture on Sales Management and Personal Selling Process • Supervising • Motivation and Compensation • Management Style • Ethical Perceptions • Evaluating

19. Expatriates • Advantages of Expatriates • Better Communications • Development of Talent • Difficulties of Sending Expatriates Abroad • Cross-Cultural Training • Motivation

20. Expatriates • Compensation • The Price of an Expatriate • Family Discord • The Return of the Expatriate - Repatriation • Generalizations About When Expatriates are Good/Bad

21. Technology & Selling • Sales Productivity • Sales automation • Increasing levels of professionalism • Micro-marketing, database marketing

23. Cultural Considerations

24. Social/Cultural Environment Of Oneself Of Others Of the Universe Views That Express Values Of Nature Of Organizations Of Society

26. High Persistence of Core Cultural Values Existence of Subcultures Shifts of Secondary Cultural Values Through Time Social/Cultural Environment

27. Global Culture: Communications

28. Translating the Message Can be Problem • “The manager has personally passed all of the water served here” -Mx • “Drop your trousers for best results here” -Thailand • “Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is suggested that the lobby be used for that purpose” - SWZ • “It is strictly forbidden on our Black Forest camping site that people of different sex, for instance, men & women, to live together in one tent unless they are married with each other for that purpose” - Germany • “Our wines leave you nothing to hope for” - SWZ • “When passengers of foot heave in sight, tootle the horn, trumpet him melodiously at first, if he still obstacles your passing, then tootle him with vigor” -Japan • “We take your bags and send them in all directions”- Denmark

29. Language: Baseball Colloquialisms • She threw me a curve. • You’re way off base. • What are the ground rules. • He went to bat for me. • Your out in left field. • It’s just a ball park estimate. • He drives me up against the wall.

30. Language: Other Peculiarities • Slang • Euphemisms- avoid taboo words • Proverbs • Verbal Dueling- insults, posturing

31. Language:English Vs. American • “Tabling an issue” • UK- Give it prominent place on agenda • US- We will talk about it later • Some UK examples • “a rubber”- an eraser • “knock her up”- stop by for visit • “the boot of car”- the trunk • “homely wife”- warm & friendly

32. Contextual Background of Various Countries High Context Implicit Japanese Arabian Latin American Spanish Italian English (UK) French North American (US) Scandinavian German Swiss Low Context Explicit

33. High and Low Context Cultures Low Context Factors / Dimensions High Context Very important Get it in writing Pushed to lowest level Proceed quickly U.S.A.Northern Europe Lawyers A person’s word Responsibility fororganizational error Negotiations Examples: Less important Is his or her bond Taken by top level Lengthy JapanMiddle East

35. Hall’s Silent Languages Language of Time Language of Space Language of Things Language of Friendship Language of Agreements

36. TIME - A MANY CULTURED THING • “Time is money”- USA • “Those who rush arrive first at the grave” Spain • “The clock did not invent man” Nigeria • “If you wait long enough an egg will walk” Ethiopia • “Before the time, it is not yet the time; after the time it is too late” France

37. The Circles Test “Think of the past, present and future as being in the shape of circles on the available space (1/2 paper), representing the past, future and present. Arrange these circles in anyway that you want that best represent how you feel about the relationship about the past, present and future. You may use different size circles. When you have finished, label each circle to show which one is past, which one is present, and which is future”

38. Summary of Japanese and American Business Negotiation Styles Category Japanese Americans Language Nonverbal behaviors Values Most Japanese executives understand English, although interpreters are often used. The Japanese interpersonal communication style includes less eye contact, fewer negative facial expressions, and more periods of silence. Tatemae is important. Vertical buyer/sellers relationship with sellers depending on good will of buyers (amae) is typical. Americans have less time to formulate answers and observe Japanese nonverbal responses because of a lack of knowledge of Japanese. American business people tend to "fill" silent periods with arguments or concessions. Speaking one's mind is important. Buyer/seller relationships are horizontal.

39. Cross Cultural Negotiation Japanese Americans Persuasion Concessions and Agreement Persuasion is accom-plished primarily behind the scenes. Vertical status relations dictate bargaining outcomes. Concessions are made only toward the end of negotiations - a holistic approach to decision making. Progress is difficult to measure for Americans. The most important minds are changed at the negotiation table and aggressive persuasive tactics used. Concessions and commitments are made throughout - a sequential approach to decision making.

40. Cross Cultural Negotiation FOUR STAGES OF BUSINESS NEGOTIATIONS Japanese Americans Nontask Sounding Task-related Exchange of Information Considerable time and expense devoted to such efforts is the practice in Japan. This is the most important step - high first offers with long explanations and in-depth clarifications. Relatively shorter period are typical. Information is given briefly and directly. "Fair" First offers are more typical.

41. I. American Values:

42. II. Individualism

43. III. Equality

44. IV. Time:

45. V. Work and Compensation:

46. VI. Directness, Openness and Honesty

47. VII. Materialism

48. Keys to Success in International Business: • Have concept of culture -must know what it is • Do your homework • Be flexible • Don’t be judgmental • Tolerate ambiguity • Communicate respect • Know yourself • Know your own culture • Display empathy • Be a good guest • Slow down, don’t speak louder • Listen

49. Cultural Diversity:How To Succeed in a World of Differences 1: Why People Fail • Ethnocentric Orientation • Ignorance • Arrogance • Time Factor

50. Cultural Diversity:How To Succeed in a World of Differences 2: Success Factors • Geocentric Orientation • Respect • Learning • Language • Personal Attitude: Humility and Pride • Personal Qualities: Adaptability and Flexibility