Slide 5.

International Selling

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Slide 5.2

Objectives
• Understand key economic terms relating to international
trade
• Appreciate the nature of different types of overseas
representational arrangements
• Have a working knowledge of many of the world’s trading
blocs
• Evaluate the role of culture in international selling
• Know how to organize for international selling
• Appreciate the effects of world-wide sourcing and buying
alliances

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Slide 5.3

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

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Slide 5.4

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

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Slide 5.5

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.

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Slide 5.6

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.

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Slide 5.7

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.

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Slide 5.8

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.

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Slide 5.9

International Selling at Company Level

Why companies have benefits from selling

overseas ???????
GENERAL REASONS
1. Trade due to non-availability of a particular
product
2. Tarde due to international differences in
competitive costs
3. Tarde due to product differentiation

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Slide 5.10

International Selling at Company Level

SPECIFIC REASONS
1. Less vulnerable to the effect of economic recession
2. Loss of domestic market share
3. Faster rate of growth in demand in other markets
4. Excess capacity in production
5. Product obsolescence
6. Benefits of long production run
7. Non-availability of product in foreign market
8. Existence of potential demand

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Slide 5.11

Skills for Salespeople

• Respect and communication
verbally and non-verbally
• Cope with ambiguity
• Show empathy

• Avoid judging
• Use humor

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Slide 5.12

Sales
• Aesthetics
• Religion
• Education
• Language
• Social organization
• Political factors

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Slide 5.13

Cultural Factors in International Selling

• Abstract and Material Elements

Abstract Material
•Value Level and type of
•Attitude technology and
•Idea consumption
•Religion pattern with that
They are learned society
patterns on
behavior

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Slide 5.14

Ethnocentricity

Integration

Polycentricity

Responsiveness

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Slide 5.15

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

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Slide 5.16

Religion

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Slide 5.17

Education

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Slide 5.18

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

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Slide 5.19

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.

Jobber and Lancaster, Selling and Sales Management PowerPoints on the Web, 10th edition © Pearson Education Limited 2015
Slide 5.20

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.

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Slide 5.21

General Cultural Attitudes and Values

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Slide 5.22

Cultural Change

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Slide 5.23

International Selling
1. Multinational marketing
2. International marketing
– Indirect method
– Direct method
3. Exporting

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Slide 5.24

International Marketing
Indirect Approaches
Intermediary
All persons and organizations providing the
service of representation between SELLERS
and BUYERS
•Agents
•Distributors
•Licensing
•Export Houses
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Slide 5.25

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,

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Slide 5.26

International Marketing
Direct Approaches

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Slide 5.27

Pricing
• What factors have effect of pricing?????

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Slide 5.28

THANK YOU

Jobber and Lancaster, Selling and Sales Management PowerPoints on the Web, 10th edition © Pearson Education Limited 2015