Page 221 - DMGT205_SALES_MANAGEMENT

Unit 14: International Sales Management

14.4 Issues for International Sales and Marketing Notes

The international market is more complete than the domestic market because of various reasons
cited earlier in the unit. One of the most important issue to be considered is whether the company
should have the same marketing for all countries (global marketing) or change it accordingly to
the local condition of the country. Global marketing is to have the same combination of P's
worldwide. This is more economical but difficult to be followed by all companies. Companies
successful in global marketing are Coca cola, Kodak, Sony, etc.

In many cases different sales strategies and marketing mix has to be adopted because of local
competitive pressures or technical specification.
Another issue is to obtain detailed information about the country and markets. Information can
be had from the chamber of commerce international trade fair or by customers doing business
in that country. Directions and other printed material can be used for secondary data.
Some countries have developed National Trade Data Bank (NTDB) which has volumes and
volumes of information. Company's sales fore can also be utilised for this purpose.

After determining the information the company has to decide the mode of entry into overseas
market. This can be done in the following ways:

Passive Exporting

When orders are received from the overseas market these are unsolicited orders coming
automatically when the company's name shows or is listed in Trade directories, etc.

Active Exporting

This can be done by the company's sales force or by intermediaries. The volume of sales increase
and the company actively participates in exports. It can also be done by Export Management
Company that is manufacturer's representative of foreign sales. This method is economical but
does not give proper feedback.

Direct Exporting

Dealing directly with overseas buyers who can either be intermediaries or ultimate consumers.

Licensing

Granting the contractual permission to use in distinct property rights such as patents, trade
marks to know-how during a specified time period in a given geographic area.

Counter Trade

Foreign sales that are at least partially conducted through bartering arrangement, i.e., sending
the goods to foreign country for products in exchange.

Joint Ventures

This consists of participating with foreign partners. This helps the domestic firm to reduce
the political problems and its alien character. Such joint venture is common in America and
Japan.

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