Page 226 - DMGT205_SALES_MANAGEMENT

Sales Management

Notes 14.6 Summary

 Sales is an important element of marketing.
 International sales managers have to guide and coordinate in the efforts of sales
organisations in countries where the company does business.
 Economic factor plays a very major role in global sales strategies.
 The legal aspects like trade barriers, legal constraints posed by government create hurdles
in international sales.
 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.
 The salesmen must have credibility so that he may be trusted by the buyer as well as by
the employee.

 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.
 International selling has gained importance because of the saturation in domestic markets.
 The mode of entry into the international market is also an important aspect of these
companies aspiring to become global.
 The sales person must speak clearly and give proper importance to the execution, quality
to language, speed and delivery.
14.7 Keywords

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.
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.
Direct Exporting: Dealing directly with overseas buyers who can either be intermediaries or
ultimate consumers.
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.
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.
Management Contracts: Home countries firms managing an operation for an overseas owner.
This is common in international chains, i.e., Hilton, Sheraton, etc.

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.

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