Chapter 4

Cross-Cultural Communications,
Negotiations and the Global Selling
Process, Part I

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation National Cultural Similarity:
The more similar the cultural backgrounds of the parties
involved, the greater the chance for understanding and
agreement between the parties.
If sales teams are utilized, then the more similar the members
of the sales teams are to those of the prospective buying group,
the greater the chance for understanding and agreement among
all parties involved.
The salesperson should never should never make assumptions
about the thoughts and feelings of a cross-cultural customer.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation Past Negotiation Experience:
The more experience the salesperson brings to cross-cultural
negotiations, the greater their flexibility in dealing with
guiding cross-cultural customers to successful negotiation
outcomes.
The global sales manager can provide training to compensate
for lack of negotiation experience.
Training should be done periodically and can include such
mechanisms as shadowing and role playing.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation Individual Personal Differences:
Personal characteristics contribute to each persons individuality and
include enduring characteristics like personality, intelligence, and
creativity along with such transient characteristics as mood or
emotion.
The important issue is the ability of the individual to recognize
inherent differences and to be sensitive about how these can affect the
negotiation process.
The salesperson should try to learn as much as possible about the
particular customer as possible beforehand so that differences can be
anticipated and conflicts avoided.
Salespeople must also be aware of how their moods and emotions can
negatively affect negotiations.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation Pre-Negotiation Expectations:
Compromise is a necessity in most negotiation processes.
Some sizing up of the expectations of each of the parties to
negotiation is necessary so that potential conflict can be
minimized.
If the salesperson knows what the negotiations expectations
are for the potential buyer, they will be in a better position to
succeed in negotiation.
Often salespeople enhance their chances of success in
negotiations by spending time listening and acting as a
problem solver for the cross-cultural buyer.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation Goal Compatibility:
The closer that the goals of the two parties are in sync with
each other, the greater the possibility of reaching a successful
agreement.
If the negotiations are in a B2B setting, the goals of the
organizations normally take precedence over the personal
goals of the buyer.
National culture may have a significant effect on goal
compatibility since buyers from collectivist countries are more
focused on organizational goals than personal goals.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Antecedents to Negotiation Trust:
The greater the amount of mutual trust that exists among the
negotiating parties, the greater the chance for a successful
agreement.
Trust focuses on integrity among the individuals involved and
their personal benevolence.
If the salesperson has had prior dealings with the buyer, trust
will be easier to establish.
If there is no prior experience, the salesperson can develop
trust through openness, honesty and a sharing of important
information.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Information Variables Sense Making:
The way in which an individual assigns meaning to the
information presented by one or more parties involved in the
sales negotiation process.
The effective use of feedback is integral to sense making.
When the salesperson has trouble understanding the logic of
the buyers stance, clarity of logic can be established through
further discussion.
Sense making is enhanced by clear communications.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Information Variables Sense Giving:
Involves how effectively the individual attempts to communicate
the necessary information that allows the other party or parties to
make sense of his or her position in the sales negotiation.
When any of the negotiating parties withhold information, then
it becomes more difficult to assign appropriate meaning to the
extended offer.
Clear cross-cultural communication must occur to effectively
give meaning to the recipient of the conveyed information.
Remember that communication involves both verbal and nonverbal components.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Practical Suggestions for Improving the
Sales Negotiation Process:
James Sebenius at Harvard suggests that it is
important for the party entering the negotiation
process to ascertain:
Who the real players are in the negotiation.
Who has the authority to make the necessary
decisions.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Practical Suggestions for Improving the Sales Negotiation
Process:
Herbig and Kramer (1992) present a series of Dos and Donts for crosscultural negotiations:
Do:

Be well prepared
Specify clear objectives
Develop personal relationships
Have informal meetings in the beginning
Carefully follow protocol
Understand national sensitivities
Assess opponents flexibility and obstacles
Understand decision-making process
Pin down details

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Practical Suggestions for Improving the Sales Negotiation Process:
Herbig and Kramer (1992) present a series of Dos and Donts for crosscultural negotiations:
Dont:

Look at everything from your own definition of rational

Press a point others cannot accept
Look at things from a narrow self interest
Ask for sensitive concessions or compromises
Stick to your agenda if opponent has different priorities
Use confusing jargon
Skip authority levels when middle management is needed
Ask for an impossible decision
Differ with your own team members in public
Stake out extreme positions remain consistent

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Steps of the Global Selling Process:

Finding Customers
Preparing
Relationship Building
Product Offering
Offer Clarification
Securing the Purchase
Maintaining the Relationship

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Step 1 Finding Customers:
Involves identifying sales prospects and
insuring that these potential clients are worthy
of additional effort to convert from prospects to
customers.
Depending upon the industry and local custom,
global salespersons may devote a portion of
their workday to searching for and contacting
new customers.

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Step 1 Finding Customers:
Methods that can be employed to locate
potential customers include:

Customer Recommendations
Centers of Influence
Lists
Publications
Referrals
Advertising Generated

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Step 1 Finding Customers:
Methods that can be employed to qualify
potential customers include:

Money
Authority
Need
Fit

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Step 2 Preparing:
Successful salespersons spend significant time
preparing for meetings with potential customers.
During the preparation stage, the salesperson can gain
information from:

Existing company files

Customer relationship management (CRM) software
The potential customers web site
Commercial sources (e.g., magazines, newspapers)

Cross-Cultural Communications, Negotiations

and the Global Selling Process, Part I
Step 2 Preparing:
Before meeting with the prospect, the salesperson should insure
that he or she can correctly pronounce the prospects name.
Other information about the prospect, such as hobbies, interests,
and likes/dislikes, also makes getting acquainted easier and may
shed light upon the type of gift the prospect would value.
The salesperson should also anticipate the types of products the
prospect will need and how these products will satisfy those needs.
Formal presentations should be compiled, using professional
software or transparencies as dictated by technology and culture.