Page 219 - DMGT205_SALES_MANAGEMENT

Unit 14: International Sales Management

Legal Notes

The legal aspects like trade barriers, legal constraints posed by government create hurdles in
international sales. Some governments impose a very high duty for imports. 300% duty is
charged when cars are imported into Columbia. Other nations like Japan pose a lot of restriction
on certain products like medical equipments, agricultural commodities, telecommunication
equipments, etc. Some countries impose a total ban on import-export because of political
differences, e.g., Cuba - US, India and Pakistan. Some countries favour indigenous enterprise
and discourage the use of foreign goods. Third world countries (specially Saudi Arabia and
other Middle East countries) do not permit total ownership to foreigners but insist on partnership
with local partners.
Political instability plays a damaging role in most transactions. The agreement reached with a
government may be reversed and the prior commitments are not honored with the change of
new government.

Task You and five classmates are working on the international marketing plan portion
of an e-business. Working together, create a name and description of the e-business, then
create an outline for a sales plan including advertising strategies.
Cultural

Culture can be defined as a distinctive way of life of people. It can also be the pattern of living
of a group of people. The cultural differences include many factors like language barrier,
multiplicity of languages, dress, food habits, tastes and lesser time and space. These factors have
an importance on personal selling and sales management.
Business and private customs, too, can vary from culture to culture. North Americans tend to
approach a business deal straight, personally, firmly and directly. Latin business people get to
know a person first before they talk of business. Great amount of patience is required in dealing
with them. Even in Japan preparation and patience is essential to do business successfully.
Japanese ask many questions and if the sales person have the desired knowledge and conviction
then the sale can take place.
The understanding of hand gesture and body language must be understood by sales managers
for effective communication. American and European shake hands while greeting customers.
Other countries like Japan and other Asian countries are comfortable with just a traditional bow
from the waist or a Namastey. People of some countries do not do any work on holiday, Sabbath
and prayer periods. The eating habits are also different in different countries. Some countries
consume Kosher food. Some countries do not use pork and some avoid non-vegetarian altogether.
These are important points to be noted by the sales manager for building international
relationships.

Self Assessment

Fill in the blanks:
1. ....................... is an important element of marketing.
2. ....................... selling plays an important part in international markets.

3. ....................... factor plays a very major role in global sales strategies.

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