Sales & Distribution Management
Chapter 5 : International Sales Management
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+Role of the Sales Manager in the International
Market
Basic-level functions
Advanced Level Functions
International Sales and Marketing Opportunities
+Challenges in International Sales Management
Economic Environment
Legal Environment
Cultural Environment
+Strategic Issues for International Sales and
Marketing
Marketing mix-Adapt or Standardize ?
Obtaining International Information
Entering Overseas Markets
+International Sales Techniques
Preliminary Selling
Advanced Selling
Time and Territory Management
+Structures for International Sales
Organizations
Long-Distance Selling
Manufacturer’s Representatives
Piggybacking
Intermediaries
Establishing Direct Sales Force Abroad
+International Sales Management Practices
Recruitment of Sales Personnel
Selection of Sales Personnel
Training and Development of Sales Personnel
Sales Incentives and Compensation
Chapter Summary
Globalization has opened up markets and provided hitherto
untapped opportunities to companies across the world. With increasing
competition, changing customer needs and stagnation of demand in domestic
markets, many companies have started looking at international opportunities.
International sales management plays an important role in implementing the
marketing policies and selling programs of the company in the foreign market at
the ground level.
The international sales manager plays the crucial role of planning and
organizing this effort and ensuring that the desired results are obtained. A
thorough understanding of the overall operations of the organization in the
global context, an open approach to multi-cultural differences and the ability
to implement both the basic and advanced levels of sales management functions is
necessary for the sales manager to succeed. Companies enter foreign markets in
search of opportunities.
The chances of diversifying the market base, attaining low costs of labor and
manufacturing, economies of scale, first-mover advantage and faster growth rate
of the economy in comparison to the home market, are some of attractions that
woo companies to enter these markets. An awareness of the pitfalls that
accompany entry into foreign markets is also necessary to fully reap the
benefits. These pitfalls may be in the form of economic, socio-cultural and
legal factors. The decision to enter and operate in international markets is a
strategic one. An awareness of various strategic issues is necessary to ensure
success in foreign markets.
The strategic issues to be considered pertain to the marketing mix, sources of
information and mode of entry into the foreign market. The timing, scale and
mode of entry are also crucial to the success of a company. The modes of entry
include long-distance selling, direct or indirect exporting, franchising,
licensing agreements, strategic alliances, turnkey contracts, greenfield
investments, joint-ventures and wholly-owned subsidiaries. Variations in
economic, socio-cultural and political conditions in different countries makes
selling in international markets a challenging task. It requires a great deal of
sensitivity to local customer needs, expectations, business approach and
personal philosophy.
Companies can adopt different structures while operating in foreign markets.
These include use of long-distance selling, piggybacking with local
distributors, using intermediaries or operating independently by establishing a
direct sales force. Finally, due to differences in culture and traditions and
associated problems, most organizations employ local people to sell their
products. An awareness of the recruitment, selection, training and compensation
procedures for the sales force appropriate for the host country is necessary to
successfully operate in different regions of the world.
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