Page 217 - DMGT205_SALES_MANAGEMENT

Unit 14: International Sales Management

maturity and decline stages in some other countries. This also helps in increasing international Notes
sales. Some companies have excess capacity which is another motive for going abroad. It has
been seen that globally oriented firms generate up to 50% of their total revenues from overseas
sales. Many smaller companies also get attracted to international markets and thereby increase
their sales globally. Some of the companies booming in international sales are namely Micro
Soft corporation for software products, Siemens in the electronics sector. Amway with early
successes in Canada, Australia has expanded its activities in Germany, Japan, Republic of Korea
and recently in India. Mc Donald's - one of the most popular fast-food chains have spread all
over the world. There are many companies dealing with diverse products, which are concentrating
globally and achieving greater market shares.
When the global business is firmly established, international markets have to adopt information
and marketing strategies, employ the latest information and communication technologies. The
sales managers must understand the environmental changes, risks, difficulties and obstacles
which they do not have to encounter in the domestic market.

Did u know? International sales management is not simply domestic sales management
transplanted overseas. Long-standing cultural forces dictate that the management of
overseas sales operations be locally directed in large part.

14.2 Challenges faced by International Sales Managers

Economic

Economic factor plays a very major role in global sales strategies. Economic factors decide the
level of purchasing power, which is expressed in the form of GDP (Gross Domestic Product).
Hence, economic development can be classified into:
1. Developed Economies: Like US, Japan, Canada and most of the western European countries.
These countries dominate the economic system by private enterprises in which customers
have high levels of disposable income.
2. Developing Economies: These are at a lesser stage of economic development. Economic
system in these countries is undergoing a shift from export led growth to domestic
development. These countries already have advanced selling and marketing approaches.
For example, South Korea, Taiwan, Venezuela, etc.
3. Underdeveloped Economies: In these countries standard of living is low and they are in the
pre-industrial stage of economic development. They are also characterised by low
purchasing power, e.g., Ethiopia, Pakistan, Haiti, etc. Another important factor in the
growth of economic development is the economic structure which consists of
communication, transportation and financial systems and the infrastructure facilities are
giving a lot of importance for effective selling.

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Case Study Marketing across Boundaries

Rozen, President of the Best Frozen Foods Company, was reviewing the latest sales
figure for his company. He noticed that the greatest profit margins came from sales
Fin the military commissary system in Europe. The commissaries are essentially no
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