1. Chapter 5 International selling

2. International Selling
Knowledge and expertise
Success depends largely on the attitude and approach of the firm and salespeople qualities (understanding and empathy of foreign market)
Highly profitable, league od exporters or licensors, joint venture, subsidiary companies

3. Economic aspects Importing and exporting (visible & invisible - Debts)
Balance of payment
Trade surplus
Trade deficit
Reduce expenditure on imported foreign goods
Sell more goods and service overseas to increase foreign revenue

4. International trade European union World trade organization
GATT (general agreement on tariff and trade)
Four fundamental principle
Non-discrimination
Consultation
Tariff negotiation
Trade liberalization

5. Questions Selling the company should ask five key questions:
1. How do you reach the customers?
Investigate the trade structure such as wholesalers and retailers.
Identify buying points.
Find out about buying procedures, terms and practices, such as the preferred
currency of invoicing
Consider how far you need to know the local language.
Examine different selling approaches, including brokers and agents.
Find out how your competitors are using advertising, promotion and trade discounts.

6. Questions Selling the company should ask five key questions:
2. How can you sell into this market?
Consider regional test marketing.
Establish your sales targets.
Decide on your total sales and promotion budget.
Decide on your selling organization.

7. Questions Selling the company should ask five key questions:
3. What sales literature is necessary?
Assess suitability of existing material for European markets.
Consider the need to redesign to appeal to new customers.
Arrange translation where necessary.

8. Questions Selling the company should ask five key questions:
4. How should you advertise?
Examine your existing advertising.
Assess differences in national media availability and costs.
Decide on your advertising budget.
5. How will you provide after-sales service?
Consider relative merits and costs of direct provision or subcontracting.

9. International selling at company level
Why companies have benefits from selling overseas ???????
GENERAL REASONS
Trade due to non-availability of a particular product
Tarde due to international differences in competitive costs
Tarde due to product differentiation

10. International selling at company level
SPECIFIC REASONS
Less vulnerable to the effect of economic recession
Loss of domestic market share
Faster rate of growth in demand in other markets
Excess capacity in production
Product obsolescence
Benefits of long production run
Non-availability of product in foreign market
Existence of potential demand

11. Skills for salespeople
Respect and communication verbally and non-verbally
Cope with ambiguity
Show empathy
Avoid judging
Use humor

12. Sales Aesthetics Religion Education Language Social organization
Political factors

13. Cultural factors in international selling
Abstract and Material Elements
Abstract
Value
Attitude
Idea
Religion
They are learned patterns on behavior
Material
Level and type of technology and consumption pattern with that society

14. Ethnocentricity
Integration
Polycentricity
Responsiveness

15. Aesthetics
A non-material cultural factor which may have an influence on the development of overseas markets. Idea concerning beauty, good taste, color and form

16. Religion

17. Education

18. Language
literal translation by someone not familiar with its deeper cultural meaning may result in serious mistakes. If the brand name is standardized world-wide in English it may be found to have an unfavorable meaning in some countries, or not be pronounceable in languages that lack certain letters of the alphabet.
Chevrolet Nova

19. Social organization
In many Asian and African countries, social organization is in tribal groupings which may be a clue to effective market segmentation. Social class is more important and more rigid in many foreign countries.
the Indian caste system.

20. Political factors
Culture includes all activities that characterize the behavior of particular communities such as legal, political and economic factors.
Nationalism and dealings with governments are often considered to be a major problem facing firms selling overseas.

21. General cultural attitudes and values

22. Cultural change

23. International selling
Multinational marketing
International marketing
Indirect method
Direct method
exporting

24. International marketing Indirect Approaches
Intermediary
All persons and organizations providing the service of representation between SELLERS and BUYERS
Agents
Distributors
Licensing
Export Houses

25. Export Houses
Export factoring – handling finance and credit arrangements on behalf of manufacturers.
Factory representation – a sales supervisor supervising sales activities of distributors dealers on behalf of the manufacturer.
Market intelligence gathering in overseas markets.
Handling export procedures and documentation.
Help in selecting agents, distributors and dealers.
Confirming orders – paying the manufacturer on confirmation of an order from an overseas buyer and receiving commission,

26. International marketing Direct Approaches
Subsidiary companies
Direct selling
Buyer-specified work
Replaces agents and distributors with the company’s own permanent staff.
Continuous supply.
Products are technically complex with a clearly defined market
Reasons :
Production capacity
Non-tariff restrictions.
Geographical proximity
Costs
Few customers but large or high-value orders
Explicit import restrictions.
Joint ventures

27. Pricing
What factors have effect of pricing?????

28. Notion effect on selling
Case of Japan
Describe your organization in detail.
Manage meetings Japanese style.
Recognize that decisions are often made by middle management.
Do not push for a close.
Use Japanese whenever possible.
Make sales presentations low key.
Establish a strong relationship.
Dress conservatively.