INTERNATIONAL SALES AND

DISTRIBUTION MANAGEMENT
WHY TO GO INTERNATIONALLY
To grab opportunity

Domestic market constraints

Competition

Government Policies and regulations

Monopoly power

Spin off

There are also 2 factors which motivates

you:

1.Pull Factors

2.Push Factors
Choosing the market

•Size of the market

•Language and culture of the market

•Competition in the market

•Proximity of the market

•Political and financial stability of the country

Entry Strategy
•To trade in other countries to verify the acceptability of the product

in the other market

•By chance meeting with the friends or relative, one can compare the

product with the other market to know the combability. It also

provides the information regarding competitors.

•A good way to at least assess the potential at low cost and risk is to

exhibit in international fair and indian trade shows.

• In starting stage by appointing an agent solicitation of the business

and customers can be done. Once some volume of business achieved

distributor can be appointed.

•In case of very huge market potential, company could set up its

own warehouse and stock products for selling locally.

•Sometimes a tie up with local company is preferred when entering

into new market because of factors like

•Knowledge of the local company

•Readily available distribution network

•Reputation of the market

•Licensing and franchising are newer strategies used in products

like garments and hotels where the brand name and design is

permitted to used for payment of royalty.

Distributor

•Distributor play a vital role in

international market because this

markets are far from manufacture hubs.

•Different country use different

distributor strategy.

•Western retail vs Indian retail

•Era of e-commerce portals

Role of Logistics

•Many large logistics companies offers shipping,

transport, custom clearance and warehousing

services under one roof.

•Logistic company  even undertake to delivers the

product to the buyers and distributors location. On

the instruction of seller for charges which may be

considerably lower than the company undertaking

these activities

in-house.
Profile of International Salesperson

•Ability to speak in one or more international languages.

•Ability to adapt to foreign culture-especially food, drink, and the

likes.

•Ability to act independently and decisively.

•A pleasant and aimable personality.

•The ability to understand not only the product and pricing but also

financing of the sales, the instrument of payment and foreign

exchange risk.

•It is found that particular ethnic groups dominates certain

businesses therefore company may appoint local person as sales

executives which may help these type of particular groups.

Pricing and payment terms
Pricing of products for international market can be done on various terms:

•Ex works: this refers to the price of the product at the manufacture’s factory gates.

•FOT- free on truck : this refers to the price of products, containers and loaded on a

truck at manufacturer’s gate.

•FAS- free alongside : this term requires the seller to delivers good at the quay

beside the ship which only include port charges.

•FOB- free on board : this refers to the price of products, containers and loaded on

a ship which include all the shipping and loading charges.

•C&F- cost and freight : FOB + cost of freight to the destination. Not include any

charges of import duties, local taxes.

•CIF- cost, insurance and freight : C&F + insurance charges including marine

insurance till final destination.

Packing and Shipping
•Packing goods for exports is very important element of marketing, it should be

light and strong and should be appealing to the end customers.

•It is also specified in the size mix per cartoon, colour mix, and weight of the

cartoon for ease of handling.

•It is also mandatory that the packing should show the contants and specify the

origin, weight, and quantity of the item inside.

•In case of long sea root the packing must be waterproof and suitable rust and

fungus prevention measures must be taken.

•Most shipments theses days are done in containers which are safer and easier to

handle.

•A virtual mindset to keep in mind is that due to pressure of competition most

industrial buyers would like the goods to be delivered just in time so that their

inventory is minimized.
Thank You