Domestic v/s International

sales

By:
LOKESH GARG
SALES MANAGEMENT

 Effective sales mgt. is the mgt. process of

establishing , directly and coordinating , the
sales development activities for the company
products strategically plan for , develop &
profitably penetrate the market to which the
products, services and capabilities of the
company can be directed.
Domestic & International sales

 Domestic selling is related to the doing sales

within the local territory or within the
country.
 International selling is related to the doing
sales outside the country.
Difference ?
DOMESTIC SALES
 There are little or no
cultural differences in this.
 There is little or no
language differences in
this.
 Local laws are applicable in
case of any dispute
between parties.
 Sales person require
comparatively less training
INTERNATIONAL SALES
 There are a lot of cultural
differences in this sales.
 There are a lot of language
differences in this.
 Laws of foreign country
may be applicable in this
case of any dispute.
 Sales person require high
training to handle
international customers.
DOMESTIC SALES INTERNATIONAL SALES

 In western markets ,there  In India , people tend to be

is a tendency to use & very cost-conscious &
throw most items. repair broken parts of
 Comparatively, very less automobile etc.
amount is spent in hiring  A considerable amount of
lawyers in case of any time & money has to be
dispute. spent in hiring international
lawyers as happened in
case of TATA.
Sales Force

 Xerox case:
 In 1985,five market segments were defined
including customer system users , standard
commercial accounts, small businesses, third
parties and institutional customers.
 A separate sales force sold the full line of
Xerox products to each customer segment
within a designated geographic area.
Recruitment

 Prudential’s case:
 Prudential estimates its first-year investment
per hire to be between $60,000 and
$1,00,000. Although the expense of
prudential’s multistep recruiting process is
one of the highest in the industry, the
investment has more than paid for itself.
Sales training

 Aspect communications case:

 For giving training ,this software co.
developed a curriculum that was part online
& part traditional classroom training. In
addition, aspect added live webcasts using
expert trainers to quickly disseminate those
topics with a short shelf life. The webcasts
also included qs. and answers chat sessions .
Leadership

 Research suggests that the best leader

develop five important skills during their
careers:
 !) empowerment
 !!) intuition
 !!!) self-understanding
 !V)vision
 V) value congruence
Sales ethics programme

 What a written code of ethics should look like

is provided by General Motors. GM’s policy is
a 12-page document complete with
instructional scenarios featuring fictional
characters. GM’s policy provides some wiggle
room for employees outside the united
states. Also, GM’s employees can continue
providing gifts and meals to their customers ,
but only within limits.
Motivating salespeople

 A key management principle states that

salespeople’s performance is based on
opportunity and on their level of ability and
motivation. This principle is often expressed
by the following formula:
 Performance=(opportunity * ability *
motivation)
 More than 30 years ago in a classic article on
motivation, Fredrick Herzberg noted that a
KITP , which he coyly explained stood for
“kick on the pants ,” may produce complaince
, but it never produces motivation
Quotas

 Quotas are quantitative goals assigned to

individual salespeople for a specified period
of time.
 Approximately 85% of U.S. Companies use
some type of quota system for their
salespeople. Sales of $150,000 in October is
an example of a quantifiable goal for a
specific period of time.
Incentive programmes

 Incentives are a proven motivational device

with widespread acceptance.
 It is estimated that two-thirds of all consumer
goods cos. Have sponsored incentives
programs.
 incentives budgets can range in size from
$5,000 to more than $ 1 million.
 In total, U.S. firms will spend more than $23
billion annually on sales incentives programs.
Evaluating performance

 A logical first step in a sales analysis is to look

at aggregate sales fig., but , sometimes, it
may be misleading.
 As in case of Bear co. , sales increased from
$17 million to $ 26 million, it seems doing
well.
 But, growth rate was declining. Industry was
expanding rapidly , at the same time, Bear’s
sales gains have fallen off.
 h An k U
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