Global Marketing Management1

International Sales Management

Pradeep choudhary -10

introductionThere has been a major growth in

international business since early 1980s, with companies expanding operations across the globe in various market. Due to this export activities of the companies, sale management has become more global-oriented in nature. Multinational companies has began to view the sales management as a tool to implement their marketing policies in foreign markets.

2

In this chapter we will discuss::  Role of the sales manager in the

international market International sales and marketing

opportunities Challenges in international sales

management Strategic issues for international sales

and marketing International sales techniques Structures for international sales

organizations International sales management

practices

3

Role of the sales manager in the international market: Basic level functions

Training Evaluating Planning Compensation Detailed training The impact of the political,

economic, legal and socio-cultural For example- In Belgium it is

mandatory for the companies to provide health care facilities, social security and four week vacation . A cell phone and a car are part of the perk for sales manager and the sales personnel

4

Advanced level functions

Strategic account management

Conducting negotiations

Arranging agreements with distributors

Developing relations and network locally

5

International sales and marketing opportunities: International sales offer numerous

opportunities to the companies planning to enter foreign market.

Primary reason saturation in the demand in domestic market. Diversifying market base

Example -Strategies of Japanese companies Emulating the competition

Example-Imitating competitors (Fujitsu siemena HG and IBM)

Achieve economies of scale Example-Air bus – 1 plane – 3,40,000 man hours 87 th plane – 78,000 man hours

6

Challenges in international sales management: Economic environment

Tariff barriers Specific duty( volume length or weight) ad – valorem duty (value of the goods) compound duty (mixture)

Non-tariff barriers Regulatory (policies and regulation ,quotas duties

national security environment protection) cultural

Other economic factors Exchange rate fluctuations Restrictions on profit repatriation Credit control etc.

7

Legal environment Partnership laws Anti Corruption laws Intellectual property rights

Cultural environment Language Religion Education Social attitudes & behavior

8

Strategic issues for international sales and marketing: 

Marketing mix – adapt or standardize? Ethnocentric vs. geocentric

Obtaining international information Internal company records

Published sources

Primary sources like surveys, observation studies etc.

9

Entering overseas markets Exporting

Licensing

Franchising

Joint ventures

Wholly owned subsidiaries

10

International sales techniques: 

Preliminary selling Identify prospects – personal observation,

holding telephonic conversation , making cold calls, conducting trade shows, searching through company records, etc

Advanced selling Sales interview Flexible presentation Product demonstrations

Time and territory management Proper routing & scheduling

11

Structures for international sales organizations: 

Long-distance selling : sustained effort to establish sales is unnecessary

Common in highly specialized industries like aircrafts, defense equipment etc.

Manufacturer’s representatives Differences in MR & distributor High level of control Training aspects & support programs

12

Intermediaries Merchants Independent agents Middlemen

Establishing direct sales force abroad Useful when greater commitment and control is

needed Size of the market Market similarities Company operations

13

International sales management practices:  Recruitment of sales personnel

Selling approach Canada - no aggressive selling Mexico – personal relations

Origin of sales personnel Home country people if the product is high value

technical product Host country people for quicker establishment Third country people where similarities exists

Sources of recruitment Most common university graduates Central and southern Africa from army

14

Selection of sales personnel

Education In Germany Ph. D. holders are selected to sell

chemical equipment Pfizer selects MBBS candidates to promote their

specialty products in India Religion

Muslim – Buddhist in Malaysia, Indonesia, Hindu Muslim in India & Pakistan, Sunni – Shia in middle east

15

Social stratification USA wealth based, India caste based, seniority in Japan Different criterions for different products &

industries

Socio-economic development Education, religion, talent, references,

psychological tests plays different roles in different countries

16

Training & development of sales personnel

Changing role, attitudes and perceptions Differences in selling approaches (European

and America) In Europe relations are more formal Business

lunch & different protocols

Flexibility in training content and methodology Modifications to suit cultural &regional factors Length of training schedule Use of female sales persons in video modules Shaking hands & implications in various

countries

17

Sales incentives and compensation

Uniform compensation plans

Different compensation plan for local and international sales personnel

Often Linked with organization performance

Incentive component Influence as motivating factor in different countries

18

19

THANK YOU