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
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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.
International Trade: Selling And Promoting In Overseas Markets

Overseas markets can be very good for your business. Once you break into the market,
profits would flow smoothly. Market entry can take time, but once you have built up a
reputation in the overseas markets, your business can grow big. This article discusses
how to make a successful entry into international markets, promote your business and sell
products.

Before entering into new markets, you need to find out where the best markets for
your products exist. You can do this by asking yourself certain questions:

1) Where do you have the most number of potential customers?

2) Which of your products do they prefer?

3) What kind of promotion do your products need overseas?

4) How much money can you afford in order to make an entry into an international
market?

5) Can you customize your products to suit local needs?

Overseas Market Entry:

Before entering a new market, keep the following in mind.

1) Do you have the funds for transportation to overseas markets? Can you buy real estate
there?

2) How will you promote your products? Will you sell through a local dealer or open a
fully owned subsidiary?

3) Sort out delivery and payment issues beforehand.

Selling in International Markets:

Selling in overseas markets can be the biggest challenge. If you do not want to open
another office in a foreign location, you can sell online, through mail catalogues and trade
fairs.

It is however, advisable to have a local agent or distributor for your products in the
international market. While agents represent you directly in the local market, distributors
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buy products from you and sell them in their local market. They also play a crucial role in
customer relationship management and after sales support.
Joint ventures are also a good option if you wish to do business in overseas markets, as
you can retain partial control over management and profits. Opening a small local office
is also a good idea. Before you enter any foreign market, be sure to consult your legal and
trade advisor.

Promoting Your Business in Overseas Markets:

Promotional campaigns work best when you understand the local conditions and are not
hampered by language barriers. If there is a language problem, hire a local representative
to work on your behalf. You need to build your brand image from scratch, unless you run
a large, internationally recognized company. You may need to adapt your work culture
and products to be more in tune with local conditions. You also need to keep local laws in
mind when you sell and promote your products.

Nothing works like a personal visit to the place you are planning to set shop. You can
assess the ground situation, talk to local experts, scout for local partners and understand
the needs of the customers better if you are personally present. You can build contacts
and network with people who will be able to help you. If you need to know more about
how to break into overseas markets, you can consult a business advisor.

International marketing (IM) or global marketing refers to marketing carried out by

companies overseas or across national borderlines. This strategy uses an extension of the
techniques used in the home country of a firm.[1] It refers to the firm-level marketing
practices across the border including market identification and targeting, entry mode
selection, marketing mix, and strategic decisions to compete in international markets.[2]
According to the American Marketing Association (AMA) "international marketing is
the multinational process of planning and executing the conception, pricing, promotion
and distribution of ideas, goods, and services to create exchanges that satisfy individual
and organizational objectives."[3] In contrast to the definition of marketing only the word
multinational has been added.[3] In simple words international marketing is the
application of marketing principles to across national boundaries. However, there is a
crossover between what is commonly expressed as international marketing and global
marketing, which is a similar term.

The intersection is the result of the process of internationalization. Many American and
European authors see international marketing as a simple extension of exporting,
whereby the marketing mix 4P's is simply adapted in some way to take into account
differences in consumers and segments. It then follows that global marketing takes a
more standardised approach to world markets and focuses upon sameness, in other words
the similarities in consumers and segments.
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