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Global Marketing Management1
International Sales Management
Pradeep choudhary -10
introductionThere has been a major growth in
international business since early 1980s, with companies expanding operations across the globe in various market. Due to this export activities of the companies, sale management has become more global-oriented in nature. Multinational companies has began to view the sales management as a tool to implement their marketing policies in foreign markets.
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In this chapter we 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
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Role of the sales manager in the international market: Basic level functions
Training Evaluating Planning Compensation Detailed training The impact of the political,
economic, legal and socio-cultural For example- In Belgium it is
mandatory for the companies to provide health care facilities, social security and four week vacation . A cell phone and a car are part of the perk for sales manager and the sales personnel
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Advanced level functions
Strategic account management
Conducting negotiations
Arranging agreements with distributors
Developing relations and network locally
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International sales and marketing opportunities: International sales offer numerous
opportunities to the companies planning to enter foreign market.
Primary reason saturation in the demand in domestic market. Diversifying market base
Example -Strategies of Japanese companies Emulating the competition
Example-Imitating competitors (Fujitsu siemena HG and IBM)
Achieve economies of scale Example-Air bus – 1 plane – 3,40,000 man hours 87 th plane – 78,000 man hours
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Challenges in international sales management: Economic environment
Tariff barriers Specific duty( volume length or weight) ad – valorem duty (value of the goods) compound duty (mixture)
Non-tariff barriers Regulatory (policies and regulation ,quotas duties
national security environment protection) cultural
Other economic factors Exchange rate fluctuations Restrictions on profit repatriation Credit control etc.
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Legal environment Partnership laws Anti Corruption laws Intellectual property rights
Cultural environment Language Religion Education Social attitudes & behavior
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Strategic issues for international 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.
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Entering overseas markets Exporting
Licensing
Franchising
Joint ventures
Wholly owned subsidiaries
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International sales techniques:
Preliminary selling Identify prospects – personal observation,
holding telephonic conversation , making cold calls, conducting trade shows, searching through company records, etc
Advanced selling Sales interview Flexible presentation Product demonstrations
Time and territory management Proper routing & scheduling
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Structures for international sales organizations:
Long-distance selling : sustained effort to establish sales is unnecessary
Common in highly specialized industries like aircrafts, defense equipment etc.
Manufacturer’s representatives Differences in MR & distributor High level of control Training aspects & support programs
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Intermediaries Merchants Independent agents Middlemen
Establishing direct sales force abroad Useful when greater commitment and control is
needed Size of the market Market similarities Company operations
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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 Most common university graduates Central and southern Africa from army
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Selection of sales personnel
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
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Social stratification USA wealth based, India caste based, seniority in Japan Different criterions for different products &
industries
Socio-economic development Education, religion, talent, references,
psychological tests plays different roles in different countries
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Training & development of sales personnel
Changing role, attitudes and perceptions Differences in selling approaches (European
and America) 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
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Sales incentives and compensation
Uniform compensation plans
Different compensation plan for local and international sales personnel
Often Linked with organization performance
Incentive component Influence as motivating factor in different countries
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