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International sales and distribution


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It is topic of Sales and Distribution and it is important for MBA students 4th sem....

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International sales and distribution

  2. 2. Nature Of International Market International market vary in terms of their level of development- Undeveloped market Highly developed market
  3. 3. Choosing The MarketFACTORS 1. The size of the market 2. The language and culture of the market 3. The 4. Proximity of competition in the market market 5. Political and financial stability
  4. 4. Legal Aspects1. Knowledge of law that prevails in case of a dispute. 2. Protection of Intellectual Property Rights. 3. The method of doing business in the destination country.
  5. 5. Risk Involved RISK 1. 2.CommerciPolitical al and Risk Financial Risk
  6. 6. Selling In International Market Trade between countries occurs because of following reasons- A particular product is unavailable. There are cost advantage by buying the product instead of manufacturing locally. The product offered is differentiated from the local product.
  7. 7. Conti…… A company may decide to sell its product in international market due to one or more of the following reasons- It has a good market domestically where the growth is limited. International market offer large and profitable opportunities. The company has excess capacity, which the domestic market cannot absorb.
  8. 8. Conti….. The company has a considerable cost advantage over its international competitors. The company foresees increased competition in the domestic market and seeks to mitigate the risk by diversifying.
  9. 9. Entry Strategies For International Market
  10. 10. Organizing For International SellingThe type of organization a companyadopts for International sales DEPENDS ON The size and nature of its international business
  11. 11. Distribution Role of distribution becomes more important at global level due to- • These markets are usually at a distance from the manufacturing base. 1. • It takes considerable amount of time to transport the products. 2. • Involves crossing national boundaries and completion of a no. procedures and 3. formalities.
  12. 12. Types of Distribution ChannelsThe type of distribution channel chosen Depends uponThe nature of the product and its positioning The image of the product get enhanced and diminishedImage of the distribution channelUp market Exclusive Supermarkets andStores Stores Hypermarkets
  13. 13. Profile of an International Salesperson International salesperson need to have the following additional qualities- The ability to speak in one or more international languages. The ability to adapt to foreign culture. The ability to act independently and decisively. A pleasant and amiable personality. The ability to understand not only the product and pricing, but also financing of the sales, the instrument of payment, and foreign exchange risk.
  14. 14. Pricing and Payment Terms Pricing of product for international markets can be done on various terms. Some of the commonly used term are- 2. 3.1. Ex FOT FASWork s 4. 6. 5. FOB CIF C&F
  15. 15. Packing and Shipping The packing should be- Light and Strong. Must be appealing for the end users. Usually buyers tend to specify the type of packing required. Packing should show the contents and specify origin, weight and quantity of the item inside. Most shipment these days are done in containers which is safer and easier to handle.
  16. 16. Market Intelligence and Research Collecting primary data is very expensive and not feasible for most companies. Secondary data is available from no. of sources such as- Embassies EXIM bank Trade journals and publication Internet websites Commercial banks, etc.