Case Study:
Marketing an Industrial Product in Latin America Management at a large manufacturer located in the Mexican state of Nuevo León decided to improve productivity at one of its subsidiaries by investing several million dollars in state-of-the-art production equipment. As word circulated about the planned investment, vendors in Asia, Europe, and North America put together proposals. One such vendor was an American company that had a global reputation for quality products and service. Management at the American firm reviewed the size of the order and decided to bypass its regular Latin American representative and send its international sales manager instead. The following describes what took place. The sales manager arrived and checked into the leading hotel. He immediately had some difficulty pinning down just who was his business contact. After several days without results, he called the American Embassy where he found that the commercial attaché had the necessary up-to-the-minute information. The commercial attaché listened to his story. The attaché realized that the sales manager had already made a number of mistakes but, figuring that the locals were used to American blundering, he reasoned that all was not lost. The attaché informed the sales manager that the global purchasing manager was the key man and that whoever got the nod from him would get the contract. He also briefed the sales manager on methods of conducting business in Latin America and offered some pointers about dealing with the purchasing manager. The attaché’s advice ran somewhat as follows:
1. “You don’t do business here the way you do in the States; it is necessary to spend much more time. You have to get to know your man and vice versa.”
2. “You must meet with him several times before you talk business. I will tell you at what point you can bring up the subject. Take your cues from me.” (At this point, our American sales manager made a few observations to himself about “cookie pushers” and wondered how many payrolls had been met by the commercial attaché.)
3. “Take that price list and put it in your pocket. Don’t get it out until I tell you to. Down here price is only one of the many things taken into account before closing a deal. In the United States, your past experience will prompt you to act according to a certain set of principles, but many of these principles will not work here. Every time you feel the urge to act or to say something, look at me. Suppress the urge and take your cues from me. This is very important.”
4. “Down here people like to do business with men who are somebody. ‘Being somebody’ means having written a book, lectured at a university, or developed your intellect in some way. The man you are going to see is a poet. He has published several volumes of poetry. Like many Latin Americans, he prizes poetry highly. You will find that he will spend a good deal of business time quoting his poetry to you, and he will take great pleasure in this.”
5. “You will also note that the people here are very proud of their past and of their Spanish blood, but they are also exceedingly proud of their liberation from Spain and their independence. The fact that they are a democracy, that they are free, and also that they are no longer a colony is very, very important to them. They are warm and friendly and enthusiastic if they like you. If they don’t, they are cold and withdrawn.”
6. “And another thing, time down here means something different. It works in a different way. You know how it is back in the States when a certain type blurts out whatever is on his mind without waiting to see if the situation is right. He is considered an impatient bore and somewhat egocentric. Well, down here you have to wait much, much longer, and I really mean much, much longer, before you can begin to talk about the reason for your visit.”
7. “There is another point I want to caution you about. Back in the States, it is normal for the sales representative to take the initiative. Here, the buyer will tell you when he is ready to do business. But most of all, don’t discuss price until you are asked and don’t rush things.”
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.