INTERNATIONAL MARKETING

International marketing

Introduction1

Discussion1

NABMC Offer: Incentives Vs. Straight Salary:1

Motivating Salespeople to compete in the absence of incentives:2

American type Motivation & Compensation plan for Japanese Salespeople2

Pay system that would satisfy old salespeople, new salespeople and employees:3

The need for American motivation and aggression in Japan:3

Principles of Motivation to be applied by International Marketer in Foreign Countries:4

Conclusion5

References6

International marketing

Introduction

A review of the Case 4-4: National Office Machines - Motivating Japanese Salespeople: Straight Salary or Commission? Highlighted a few important corporate cultural differences between the American and Japanese markets (Cateora & Hess, 1971). The American market has the individualism concept, and the incentive based systems works well with their sales force. But the Japanese people get promotion based on seniority and have a lifetime job security, which does not give them a strong reason for showing effectiveness and productivity.

The merger of the National Office Machines (NOM) with the Nippon Cash Machines (NCM) has been renamed to Nippon-American Business Machines Corporation. This paper focuses on the techniques that could prove workable for motivating the Japanese sales force.

Discussion

NABMC Offer: Incentives vs. Straight Salary:

I believe the Nippon-American Business Machines Corporation should offer a compensation plan that is based on both the components: salary and sales commission. The basic salary should be given to employees regardless of the targets, but the commission percentage should be higher in order to motivate them into increasing sales so that they could achieve the commissions they are eager for. The half salary is also important because the traditional Japanese system was providing job security, and if we eliminate the basic salary completely, it would be broad jump and could lead to negative results. The presence of the basic salary (in lower amounts) would also communicate the idea to the senior management that they cannot misuse their seniority by becoming showing less productivity and ineffective quality of work, something that is highly required of people at their positions.

Motivating Salespeople to compete in the absence of incentives:

The bonus plays its part here. If the company cannot make use of incentives (which is one of the primary tools used in the US) for motivating the salespeople, then it should offer a leveraged bonus to those people who are bringing in more sales. The bonus dispatchment system should be revised from the semi-annual base to a quarterly base. Employees should be required to maintain a well-off performance which exceeds their predefined target over a consistent time period of all the months preceding the one in which the bonus gets dispatched (Kreps, 1997).

The company can also employ the policy of adding additional benefits to its current list of fringe benefits, for those employees exclusively who are going beyond their target. This would serve as a non-monetary incentive. However, it should be properly checked whether the company can make use of non-monetary incentives or not.

American type Motivation & Compensation plan for Japanese Salespeople

Motivating the salespeople is crucial since their efforts are the driving force behind any company's increased ...