Contemporary Selling, 5e
Chapter 14
Chapter 14 Outline: Global Perspectives on Contemporary Selling
Value-Added Information in Chapter 14
• Global Connection – “Differences in Negotiating Between Chinese and American
Cultures”
• Exhibits –
o Exhibit 14.1 – “U.S.-based Companies and the Percentage of Revenue
Generated Outside America”
I. Selling is Global
A. The Global Marketplace and Contemporary Selling
II. Global Challenges in the Sales Process
A. Culture
III. Global Challenges in Managing the Sales Process
A. Sales Organizational Structure
B. Hire the Right People in a Global Sales Environment
IV. Summary
V. Key Terms
VI. Discussion Questions
Discussion Questions
1. In Thomas Friedman’s book The World Is Flat, he states the big companies
should “learn how to act small and enable their customers to act really big.”
What do you think that means? How might that statement impact a global sales
force and the way they interact with their customers?
Student answers will vary. Here is a sample answer:
Friedman argues against the tendency of big companies to lose focus of their
Global sales forces must be aware of customers’ expectations across different cultures
and in different regions. Customers generally want high-level customer service. If
customer service is not meeting expectations, there is likely a competitor that is able to
meet their needs. Globalization creates a large number of competitors even for local
2. You are a small manufacturer of specialty medical devices located in Chicago,
Illinois, and the market for your product is cardiologists in the United States.
Does globalization affect your business? If so, why and how?
Student answers will vary. Here is a sample answer:
Yes, globalization affects the business. Even local businesses must be aware of global
effects on business. Aside from the Internet making other companies competitors in the
Chicago market, global supply chains can also affect local business. For instance, any of
3. You are the global sales manager for a consumer food products company that is
getting ready to roll out a new product. As part of the introduction your global
sales force is being asked to do a number of in-store demonstration in grocery
stores around their market. This means working weekends for three months. One
of the largest global regions for your products is Latin America. How will your
decision to work weekends be received among your Latin American sales force?
What would you do to ensure the sales force accepts this short-term policy?
Student answers will vary. Here is a sample answer:
4. You are the global sales manager for Samsung responsible for the sales of their
tablet computers. The company has just announced a new model that will be
available in five countries starting next month (Japan, Korea, United States,
United Kingdom, and France). The product is expected to be very popular and
you have been asked to develop a strategy for rollout for the rest of the world.
Due to limited production the rollout must be occur over six months, so some
countries will have to wait that long before receiving the new tablet. What would
you suggest salespeople in other countries tell their customers (large electronics
retailers)?
Student answers will vary. Here is a sample answer:
Customers across cultures do not like to wait for new products to arrive. The customers
5. As sales manager for a global technology company, you have been tasked with
opening up a new market in Asia. One of your responsibilities is to create a sales
force consisting of 20 new salespeople. The job description describes someone
with good technical skills and selling ability in the B2B technology market. Would
you focus on hiring local nationals, expatriates, or third-country nationals? Why?
Student answers will vary. Here is a sample answer:
Companies used to have a reliance on expatriates for selling in new markets due to their
understanding of the corporate culture, knowledge of products, and familiarity with
recruit. Cultural differences can also have an effect on the type of individuals hired. In
Asian cultures, there tends to be a hierarchical structure, which creates barriers for
Global Connection – Differences in Negotiating Between Chinese and American
Cultures
Answers to Questions
1. You are a key account salesperson with Hewlett-Packard, negotiating a contract
for a significant order of network servers with a large Chinese bank. Describe
how you would go about making the sale and how the process would differ from
the sale to a large American bank?
There are several differences. First, the role of government is much larger in China and
2. Do you think it is easier for a Chinese businessperson to come to the United
States and learn how to do business or for an American businessperson go to
China and do business?
Answer will vary. It can be argued either way. Relevant factors in the discussion are
3. Do you think it is important for American businesspeople to learn Chinese? Why
or why not?
Answers will vary. For companies wishing to do significant business in China, it is
imperative for individuals in the company to know, understand, and be able to
Ethical Dilemma – Teaching Notes
This ethical dilemma puts Susan Benson in a difficult situation between her client and her
company. Ms. Benson’s client is in a region that will not receive the initial rollout of new
baby products. Since there is a delay in the rollout, the senior management at G&G
Products wants the new product line to be kept confidential until the details of
introducing the products are worked out. Unfortunately, Bo Wellington, the primary
contact at Ms. Benson’s largest client, has already heard about the new product line and
as well as balancing the local markets’ needs with those of the corporations’ rules.
Answers to Questions
1. Given the importance of Acton Pharmacies to G&G in Australia, was Susan
wrong in giving Ms. Wellington information about the introduction of the new
products?
Susan violated company policy in providing the information to Acton in Australia. As a
2. Should she tell Grace Jensen about her conversation with Ms. Wellington and her
commitment to secure exclusive rights for Acton on the product rollout?
She should definitely tell Grace Jensen what has happened. It is important that Grace
3. What should Susan do now?
Susan should first tell Grace Jensen and then take Grace’s direction on how to proceed.
Mini-Case 14 – Gen Tech Corporation
This mini-case does a good job of highlighting issues of global marketing
communication, product pricing, and customers’ access to information and ability to
leverage it for pricing changes. It demonstrates difficulties that arise with increased
globalization, more competitive regions globally, and improved communication through
technology.
Answers to Questions
1. What are the challenges for a company like Gen Tech when they maintain
different pricing structures for their products around the world?
Difficulties include:
• More competitive markets across the world, so the reasoning behind premium
2. How should Barry Randolph and Gen Tech resolve the issue of variable price
structures for their products?
Gen Tech should be able to create a more balanced pricing structure across countries. The
company and Barry must also be able to effectively express the value proposition to the
3. What management structure would you recommend Gen Tech follow in managing
their global sales operations?
It appears that Barry is not being used as an effective global marketing manager.
1. Global marketing manager as the internal consultant role.
3. Customer-focused structure that pulls responsibility for global accounts away
from local managers and gives it to the global marketing manager.
