In this chapter we will discuss:• Role of the sales manager in the internationalmarket• International sales and marketingopportunities• Challenges in international salesmanagement• Strategic issues for international sales andmarketing• International sales techniques• Structures for international salesorganizations• International sales management practices
Role of the sales manager in theinternational 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
International sales and marketingopportunities• Diversifying market base– Strategies of Japanese companies• Emulating the competition– Imitating competitors• Achieve economies of scale– Air bus – 1 plane – 3,40,000 man hours87thplane – 78,000 man hours
Challenges in international salesmanagement• 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.
Continued ……• Legal environment– Partnership laws– Anti Corruption laws– Intellectual property rights• Cultural environment– Language– Religion– Education– Social attitudes & behavior
Strategic issues for internationalsales 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
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
Structures for international salesorganizations• Long-distance selling– Common in highly specialized industrieslike 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
• Piggybacking– Low cost 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 / advertisingContinued…….
Continued…….• Establishing direct sales force abroad– Useful when grater commitment andcontrol is needed– Sales force structure(standard/customized)– Size of sales force– Market similarities– Company operations
International sales managementpractices• 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 valuetechnical product• Host country people for quicker establishment• Third country people where similarities exists– Sources of recruitment
Selection of sales personnel• Education– In Germany Ph. D. holders are selected to sellchemical equipment– Pfizer selects MBBS candidates to promote theirspecialty products in India• Religion– Muslim – Buddhist in Malaysia, Indonesia, HinduMuslim in India & Pakistan, Sunni – Shia inmiddle east• Ethnic composition
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 playsdifferent roles in different countries
Training & development of salespersonnel• Changing role, attitudes and perceptions– Differences in selling approaches– In Europe relations are more formal– Business lunch & different protocols• Flexibility in training content andmethodology– Modifications to suit cultural ®ional factors– Length of training schedule– Use of female sales persons in video modules– Shaking hands & implications in variouscountries
Sales incentives and compensation• Uniform / Discriminating• It needs to be tailor made• Often Linked with organizationperformance• Weight age of incentive component• Influence as motivating factor in differentcountries• Alignment of management practices withother countries is needed