Sales and Distribution Management


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Chapter Code: SDMC05
Pages : 514; Paperback;
210 X 275 mm approx.

Suggested Case Studies

Pages : 352; Paperback;
210 X 275 mm approx.

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Managerial Effectiveness: Managing the Self and Others

International Sales Management : Overview

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.

Chapter 5 : Overview

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
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