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international sales management
This chapter discusses international sales management, including the role of sales managers in international markets and the challenges they face. It covers opportunities in international sales and marketing, as well as strategic issues around adapting or standardizing the marketing mix across countries. The chapter also examines international sales techniques, structures for international sales organizations, and best practices for recruiting, training, and compensating international sales personnel.
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international sales management
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- 2. In this chapterwe 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 thesales manager in the international market • Basic level functions – Training – Evaluating – Planning – Compensation • Advanced level functions – Strategic account management – Conducting negotiations – Arranging agreements with distributors – Developing relations and network locally
- 4. International sales andmarketing opportunities • Diversifying market base – Strategies of Japanese companies • Emulating the competition – Imitating competitors • Achieve economies of scale – Air bus – 1 plane – 3,40,000 man hours 87th plane – 78,000 man hours
- 5. Challenges in internationalsales management • Economic environment –Tariff barriers • Specific, ad – valorem, compound –Non-tariff barriers • Regulatory, industry, cultural –Other economic factors • Exchange rate fluctuations • Restrictions on profit repatriation • Credit control etc.
- 6. Continued …… • Legalenvironment – Partnership laws – Anti Corruption laws – Intellectual property rights • Cultural environment – Language – Religion – Education – Social attitudes & behavior
- 7. Strategic issues forinternational 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. • Entering overseas markets – Exporting – Licensing – Franchising – Joint ventures – Wholly owned subsidiaries
- 8. International sales techniques •Personal selling process – Preliminary selling • Identify prospects • Approach – Advanced selling • Sales interview • Flexible presentation • Product demonstrations • Handling objections • Close • After sales techniques • Time and territory management – Proper routing & scheduling
- 9. Structures for internationalsales organizations • Long-distance selling – Common in highly specialized industries like aircrafts, defense equipment etc. • Manufacturer’s representatives – Differences in MR & distributor – High level of control – Prerequisites for selection – Legalities related to selection & termination – Training aspects & support programs
- 10. • Piggybacking – Lowcost entry – It involves a rider & a carrier – Whirlpool & Sony, AT&T and Toshiba in Japan – Some times it can be a reciprocal • Intermediaries – Merchants – Independent agents – Facilitating intermediaries • Transporting & warehousing • Market research / advertising Continued…….
- 11. Continued……. • Establishing directsales force abroad – Useful when grater commitment and control is needed – Sales force structure (standard/customized) – Size of sales force – Market similarities – Company operations
- 12. 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
- 13. Selection of salespersonnel • 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 • Ethnic composition
- 14. Continued….. • Social stratification –USA wealth based, India caste based, seniority in Japan – Different criterions for different products & industries • Socio-economic development – Education, religion, nepotism, talent, references, psychological tests plays different roles in different countries
- 15. Training & developmentof sales personnel • Changing role, attitudes and perceptions – Differences in selling approaches – In Europe relations are more formal – Business lunch & different protocols • Flexibility in training content and methodology – Modifications to suit cultural ®ional factors – Length of training schedule – Use of female sales persons in video modules – Shaking hands & implications in various countries
- 16. Sales incentives andcompensation • Uniform / Discriminating • It needs to be tailor made • Often Linked with organization performance • Weight age of incentive component • Influence as motivating factor in different countries • Alignment of management practices with other countries is needed