Session 9 21-22 Sess 9 Distr and Promo

MASTER IN INTERNATIONAL BUSINESS - BSM - ESCI
DISTRIBUTION
Proactive stimuli Reactive stimuli

 Profit advantage  Competitive pressures
 Unique products  Overproduction
 Technological advantage  Declining domestic sales
 Exclusive information  Excess capacity
 Economies of scale  Saturated domestic markets
 Market size  Proximity to customers and
ports
1
STRUCTURE
TYPES OF INTERNATIONAL SALES
2
INTERNATIONAL SALES MANAGER
 Roles
 Decision making
 Time management
 Team motivation
 Organization control
3
TO WHOM DOES INTERNATIONAL REPORT?
 Expensive at the beginning

 It is a risk
 It needs the support of GM
4
TYPES OF ORGANIZATION IN
INTERNATIONAL SALES
 Subsidiary
 Distributor
 Partnership/Joint Venture
 Agent(s)
 Licence
5
SUBSIDIARY
PROS CONS
 Higher theoretical control  Expensive
 Take advantage of  Local legal constraints
subsidies
 A mistake or manager
 Allows to work in more bad faith may have very
complex environments bad consequences
 What customers prefer  Cost of closing down
 “It’s yours”  Slow
 Makes easier market
knowledge/Direct access
to customer
 Facilitates better logistics
6
DISTRIBUTOR/IMPORTER
PROS CONS
 Less risky  Lower control
 Practical in far countries  Higher retailer prices
 Practical in markets with  Contract
low potencial
 If there are problems,
 Faster local legislation tends to
protect the distributor
 Distributor has the (Pay attention to what
customer risk you write!)
7
PARTNERSHIP/JOINT VENTURE
PROS CONS
 Based on the partner’s  Legal/Contractual risk
local market knowledge
 If it doesn’t work, the one
 Faster development who is there is your
partner
 Possibility of integrating
the local partner in future
8
AGENTS
PROS CONS
 Cheap  The company takes the
risk with customers
 Fast
 Low control/discipline
 Homogenizing conditions
among countries
9
AGENTS. EMPLOYEES OR INDEPENDENT
EMPLOYEES INDEPENDENT
 Higher control on  Lower cost
sales(Importance when
far away)  Easier to find specialists
 Coaching more  Portfolio

profitable complementarity
 Higher integration  Layoffs (Not so easy)
 Layoffs
 Obliged to have a
subsidiary
 Compensation related
to targets
10
LICENCE
PROS CONS
 Access to know-how  “The end”
 Well-known brands  Contractual problems
 Faster results  “Working for other
people”
 Minimums (Royalties)
11
CHANNELS OF DISTRIBUTION IN LOCAL MARKETS

 Number of levels in the chain
 Direct channel
12
DISTRIBUTION

 Direct channel
 Intermediary: Retailer
13
DISTRIBUTION

 Direct channel
 Intermediary: Wholesaler/Retailer
14
DISTRIBUTION
 Direct channel
 Multiple intermediaries
 Services and industrial marketing
15
DISTRIBUTION
 Direct channel
 Multiple intermediaries
 Services and industrial marketing
16
DISTRIBUTION
 Channel behavior
 Channel interdependence
 Every channel specialization
 Teamwork
 Channel conflict
 Horizontal conflict
17
DISTRIBUTION
 Channel behaviour
 Teamwork
18
DISTRIBUTION
 Teamwork
 Vertical conflict
19
DISTRIBUTION
 Teamwork
 Vertical conflict
 Is conflict positive?
20
TYPES OF DISTRIBUTION
 Intensive
 Selective
 Exclusive
21
DISTRIBUTION
 Retail
 Types of shops
 No-shop sales
 Direct marketing
 Mail/Catalogue
 Telemarketing
 Television
 Internet
 Direct sales
 Door-to-door
 Automatic vending
22
TYPES OF CHANNELS
 Traditional
 Impulse purchase
 Hyper/Supermarkets
 Hard Discounter
 Category killers
 Department Stores
 Mail order
 Internet
 Others
23

Traditional
TYPES OF CHANNELS
24
TYPES OF CHANNELS
 Traditional
25
TYPES OF CHANNELS
 Traditional
 Impulse purchase:
 Hypermarkets
26
TYPES OF CHANNELS
 Traditional
 Impulse purchase:
 Supermarkets
27
TYPES OF CHANNELS
 Traditional
 Hard discounters
28
TYPES OF CHANNELS
 Traditional
 Category killers
29
TYPES OF CHANNELS
 Traditional
 Malls/Supercenters
30

Department Stores
TYPES OF CHANNELS
31



Other
Internet
Catalogue
TYPES OF CHANNELS
32
ROLE AND SKILLS OF AN

INTERNATIONAL SALES MANAGER
33
WHO SHOULD SELECT AGENTS

INTERNATIONALLY?
 GM
 Sales Manager
 International Sales Manager
 Local Sales Manager
34
SOURCES TO FIND AGENTS

 Internet/Social Media
 Competitors
 Ad general press
 Ad specialized press
 Official entities(Icex in Spain,Accio in Catalonia,etc)
 Own organization
 Other countries
 Customers
 Business schools (Networking)
 Head hunters
35
THE CONTRACT
 Pay attention to the contract you sign!
 Local regulations (Differences among countries)
36
INTERNATIONAL SALES PEOPLE

COACHING.OBJECTIVE
 Sales growth
 Improve relationship with customers
 Better knowledge of company targets
 Sell full product line
 Improve presentations
 The right product use by customers
 Less lost sales
 Optimize work in sales
 Reduce cost of sales
37
GENERAL METHODS OF COACHING
 In groups
 In the headquarters
 In the country
 Mixing countries?
38
COACHING
 How to sell in different countries?
39
MOTIVATING AN INTERNATIONAL SALES

FORCE
“Genius is a one percent inspiration and ninety-nine

percent perspiration”
(Thomas Edison)
40
ESTABLISHING TARGETS
 Panel
 Country’s economic data
 Information about competitors
 Technical press
 Historical data
 Governmental institutions
41
EFFECTIVENESS EVALUATION
 Sales volume
 Sales volume with “A” customers
 Number of SKU’s
 Expenses/Sales relationship
 Net profit or gross margin
 Number of visits
 Average sales per visit
 Multiple evaluation
42
SYSTEMS OF COMPENSATION. FIXED

SALARY
 ADVANTAGES
 More control
 Tends to elliminate “forced” sales
 DISADVANTAGES
 Lack of incentives to introduce new products
 Preference for actions with no immediate results in sales, just to
make management happy
 May be too expensive
 Not adapted to times of expansion and recession
43
SYSTEMS OF COMPENSATION. VARIABLE SALARY

 ADVANTAGES
 Budgeting is easier
 Direct motivation
 DISADVANTAGES
 Agent’s interest more important than company’s interest
 Favours wrong sales methods
 Preference for “easy” customers
 Does not favour good service
 Difficult in opening new markets
 Not possible in periods of economic depression
 Customer’s loyalty to the agent, not the company
44
SYSTEMS OF COMPENSATION
 Combined systems
 Bonus
 Advance payment
 Compensation to beginners
45
CHARACTERISTICS OF A GOOD EXPENSE PLAN
 Not net gain or loss for the reps

 Equitable treatment of the reps
 Not damaging activities beneficial to the company
 Minimal detail and administrative expense
 Clarity
 Company control of expenses and abuses
46
METHODS OF CONTROLLING EXPENSES
 Salespeople pay own expenses

 Unlimited-payment plans
 Limited-payment plans
47
GLOBAL PROMOTIONAL STRATEGIES
48
PROMOTION MIX
 Definition:
 Determining the right mix for different types of promotion
 Objective:
 Combine the different types of promotion in order to complement them in
the most efficient way
49
PROMOTION MIX
 Promotion mix
 Advertising: Any paid form of nonpersonal presentation and
promotion of ideas, goods or services by an identified sponsor
 Personal selling: Oral presentation in a conversation with one or
more prospective purchasers for the purpose of making sales
 Sales promotion: Short-term incentives to encourage purchase or
sales of a product or service
 Public relations: Building good relations with a company’s various
publics by obtaining favorable publicity, building up a good
“corporate image”, and handling or heading off unfavorable rumors,
stories, and events
50
PROMOTION MIX
 Requirements:
 Product factors
 Market factors
 Customers factors
 Budget factors
 Marketing-mix factors
 Environment factors
51
PROMOTION MIX
 Requirements:
 Product factors:
 Nature
52
PROMOTION MIX
 Requirements:
 Nature
 Durable/Non durable
53
PROMOTION MIX
 Requirements:
 Nature
 Durable/Non durable
 Usual purchased quantity
loading
54
PROMOTION MIX
 Requirements:
 Market factors:
 Position in lifecycle
55
PROMOTION MIX
 Requirements:
 Market factors:
 Market share
56
PROMOTION MIX
 Requirements:
 Market factors:
 Market share
 Market concentration
Prescription
Atomization
57
PROMOTION MIX
 Requirements:
 Market factors:
 Market share
 Competition intensity
Nr. 1 in share-of-voice
One-to-one
58
PROMOTION MIX
 Requirements:
 Market factors:
 Market share
 Competition intensity
 Demand forecast
59
PROMOTION MIX
 Requirements:
 Customers factors:
 Consumer vs. Industrial market
60
PROMOTION MIX
 Requirements:
 Quantity of customers
61
PROMOTION MIX
 Requirements:
 Concentration of customers
62
PROMOTION MIX
 Requirements:
63
PROMOTION MIX
 Requirements:
 Budget factors
 Financial resources
 Future of traditional communication
64
PROMOTION MIX
 Requirements:
 Budget factors
65
PROMOTION MIX
66
PROMOTION MIX
 Requirements:
 Budget factors
 Marketing-mix factors:
 Relative price/Relative quality
 Distribution strategy
 Brand lyfecycle
 Market geographic scope
 Environmental factors:
 Emotional situation of society (Christmas)
67
COMMUNICATION
 Identifying the target audience
 Determining the response sought
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 Purchase
68
COMMUNICATION
 Choosing a message
 Message content
 Rational appeals
 Emotional appeals
 Moral appeals audi-con-cuerdas-publiTV.wmv
69
COMMUNICATION
 Choosing media:
 Personal communication channels
 Salespeople
 Independent experts
 Word-of-mouth influence
 Non-personal communication channels
 Major media (print/broadcast/display)
 “Atmospheres” (Designed environments)
 Events
70
COMMUNICATION
 Choosing media:
 Personal communication channels

 Salespeople
 Independent experts
 Word-of-mouth influence
 Non-personal communication channels
 Major media (print/broadcast/display)
 “Atmospheres”
el almendro
(Designed environments)
 Events
 Selecting the message source: Testimonials/Credibility
71
COMMUNICATION
 Setting the total communication budget and mix
 Affordable method
 Percentage-of-sales method
 Competitive-Parity method
 Objective-and-task method
72
COMMUNICATION
 Advertising
 Setting objectives
 Informative advertising
 Persuasive advertising
 Comparison advertising
73
COMMUNICATION
 Advertising
 Reminder advertising
 Setting the Advertising Budget
 Stage in the product life cycle
 Market share
 Competition and noise
 Advertising frequency
74
COMMUNICATION
 Advertising
 Reminder advertising
 Setting the Advertising Budget
 Stage in the product life cycle
 Market share
 Competition and noise
 Advertising frequency
 Product differentiation
75
COMMUNICATION
 Advertising
 Creating the message
 Message generation (What do we say?)
 Message evaluation and selection
 Message execution (How do we say it?)
 Slice of life
 Lifestyle
 Fantasy
 Mood or image
 Musical
 Personality symbol
 Technical expertise
 Scientific evidence
 Testimonial evidence
76
COMMUNICATION
 Advertising
 Selecting Media
 Target group, reach, frequency, media impact
 Media selection
 Support selection
 Timing
77

Session 9 21-22 Sess 9 Distr and Promo

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Session 9 21-22 Sess 9 Distr and Promo

Uploaded by

Copyright:

Available Formats

MASTER IN INTERNATIONAL BUSINESS - BSM - ESCI

Proactive stimuli Reactive stimuli

INTERNATIONAL SALES MANAGER

TO WHOM DOES INTERNATIONAL REPORT?

 Expensive at the beginning

AGENTS. EMPLOYEES OR INDEPENDENT

 Coaching more  Portfolio

 Higher integration  Layoffs (Not so easy)

CHANNELS OF DISTRIBUTION IN LOCAL MARKETS

 Number of levels in the chain

 Number of levels in the chain

ROLE AND SKILLS OF AN

WHO SHOULD SELECT AGENTS

SOURCES TO FIND AGENTS

INTERNATIONAL SALES PEOPLE

GENERAL METHODS OF COACHING

 How to sell in different countries?

MOTIVATING AN INTERNATIONAL SALES

“Genius is a one percent inspiration and ninety-nine

SYSTEMS OF COMPENSATION. FIXED

SYSTEMS OF COMPENSATION. VARIABLE SALARY

CHARACTERISTICS OF A GOOD EXPENSE PLAN

 Not net gain or loss for the reps

METHODS OF CONTROLLING EXPENSES

 Salespeople pay own expenses

GLOBAL PROMOTIONAL STRATEGIES

 Future of traditional communication

 Personal communication channels

You might also like