Methods of Personal Selling in International Marketing

Q. Elaborate the different methods of personal selling in International Marketing.

Ans. Personal selling is more complex in international marketing in comparison to domestic marketing. The foreign customers may be of diverse background with regard to nationality, religion, culture, language, tastes, preferences, likings, dislikings etc. The various methods of personal selling adopted in international marketing are as follows:

● (1) Contacting Customers in Foreign Markets – In this method, sales representatives of business unit contact the customers in foreign nations. Sales representatives visit the target foreign markets and personally contact the potential foreign customers. Different ways of contacting customers in foreign markets are :

(i) Sending Domestic Salesmen to Foreign Markets (Expatriate Method): Domestic salesmen having good knowledge of foreign markets, their culture, language, buying motives, taste, preferences, buying pattern, etc. are sent to foreign markets to contact foreign customers personally and procure orders from them. This method is adopted by such business units as are in the initial stage of international marketing or their purpose is to sell surplus production in foreign market. 

(ii) Appointing Foreign Nationals as Salesmen in Foreign Markets: Large international business units set up their own distribution network in foreign markets. They set up their distribution outlets/branches/subsidiaries in foreign markets. In these branches, salesmen are hired from host nation (foreign nation). Search foreign salesmen have better knowledge of local culture, buying behaviour, geographical locations, language, etc. in comparison to salesmen sent abroad (Expatriates). When foreign national salesmen contact the potential foreign customers, the are not treated as strangers by the latter. They get more acceptance from foreign customers who may treat domestic salesmen of parent nation (expatriates) as strangers.

(iii) Hiring Foreign National Salesmen on Temporary Basis: The international marketers, who are not large enough to appoint full fledge salesmen in foreign markets, hire the services of foreign national salesmen on temporary basis. These salesmen may work for many business units which are generally complementary to each other and not competitive. Usually, when the international marketers undertake test marketing or conduct foreign market surveys then they adopted this method. Usually, such salesmen are appointed on commission basis.

● (2) Contacting Foreign Buyers Visting Home Nation – In this method, international marketers contact the foreign buyers visiting home nation. Some countries enjoy good image for certain products in the global markets. Buyers from various nations of the world visit such countries for buying some specific products. For example, Japan has good global image for electronic goods, India for gems and jewellery, Germany for engineering goods, etc. It creates good opportunity for international marketers to establish personal contacts with such foreign visiting buyers and procure good purchase orders. Different ways of contacting foreign visiting buyers are :

(i) Foreign Buyers Visting at their own: Some foreign buyers may visit other nation at their own for buying some specific products. These foreign buyers visit various markets at their own expense to explore good buying opportunity.  International marketer does not have to bear traveling expenses/boarding and lodging expenses of such visiting buyers. The international marketer may contact such visiting buyers at the place of their stay or at the prominent tourist destination. Further, such foreign visiting buyers may walk in the showrooms of business unit at their own. At this point also, effective personal contact can help procure order from such visiting buyers. This mode of personal selling is least expensive as the international marketer is neither sending expatriates nor bearing any travelling and lodging expense of foreign visiting buyers. 

(ii) Foreign Buyers Visting on the Invitation of International Marketer: The international marketer may invite its regular foreign buyers who purchase in large quantities to visit its outlet. The international marketer bears the travelling, boarding and lodging expenses of such visting buyers. Special salesmen may be hired who have knowledge of foreign language and culture to attend such visiting buyers. Such hired salesmen are given some initial training to acquaint them with the goods of international marketer. The international marketer may also already have regular/full time salesmen who have knowledge of foreign language and culture. Such salesmen attend visiting buyers through personal contact and procuure order from them. International marketer sends detailed product catalogue to such visiting foreign buyers along with the invitation letter.  It helps the visiting foreign buyers to have detailed knowledge of products, their features, price, etc. offered by international marketer. The international marketer keeps the goods in ready form so as to effectively demonstrate the goods to foreign buyers. 

(iii) Foreign Buyers Visting on the Invitation of Export Promotion Councils: Government of home nation may organise seminar, conference, meeting,  etc. of foreign buyers. Domestic producers of home nation are also invited by government to attend these seminars, conferences, meetings, etc. It creates opportunity for the domestic producer to establish personal contact with the potential foreign buyers. These conferences are arranged by Export Promotion Councils, Trade Associations, Ministry of Commerce, Commodity Boards, etc. These confidences help the international marketers to procure export orders. Increased exports also help the government in achieving its export targets and in earning foreign exchange for the country.  Cost of arranging such conferences are borne by the government/trade associations/commodity boards. 

● (3) Contacting Foreign Customers at International Trade Fairs and Exhibitions: Various international trade fairs and exhibitions are organised in different nations. These fairs and exhibitions may be organised in the home country of international marketer or in foreign countries.  These trade fairs and exhibitions provide good opportunity to international marketers to establish personal contact with visiting foreign buyers, to display and demonstrate their product effectively. These trade fairs and exhibitions may be of two types:

(i) Fairs and Exhibitions Organised in Home Nation of International Marketer: The international marketer does not have to spend much on attending these fairs as goods and sales staff are not to be sent abroad.  It saves travelling and transporting expenses. For example, in india, Indian government regularly organises international trade fair at Pragati Maidan in New Delhi every year. The Indian manufacturers/marketers, intending to establish contact with foreign buyers,  set up their stall here.

(ii) Fairs and Exhibitions Organised Abroad: With the increasing trend of globalisation, international trade fairs and exhibitions are organised across the world. The international marketers may set up their stall in such trade fairs to establish personal contact with visiting foreign buyers and procure orders from them. The international marketer attends such trade fair in such nation where it intends to take entry or strengthen its position. Participation in overseas trade fairs is costly as goods and sales staff have to be sent abroad. Further, it involves excessive formalities of custom clearance, foreign exchange, boarding and lodging, etc.