| The Art of Selling: You can't just sell the world like you do the nation
Sherry Sutton, Associate, International Market Solutions
Published in The Charlotte Observer, January 2008
This week's situation is for "The Corporate Pro":
- Going international is complex
- Planning is key to success
- Engage outside advisors if you do not have the internal skills
Selling across the states is different than selling across nations. When I started managing global sales, "sink or swim" was the practice. I was lucky, starting my career with a German conglomerate and seeing the world through the eyes of a truly global company.
Non-U.S. sales are a different animal, and a big one. The Charlotte region has a significant exposure to international sales - more than $23 billion in exports.
If your company expects to sell outside U.S. borders, plan well. Charlotte's Hilary Coman heads a market strategy consulting firm with experience in Europe and Latin America. Her advice: "Recognize that different products and services demand different market entry strategies, maybe a licensing agreement one time and a joint venture the next. Understand your company's capacity and capability, and the requirements of that target market."
International sales lessons can fill volumes; I suggest seven questions as a starting point.
1. What are market preferences? Even McDonald's has different menu items to satisfy local tastes.
2. Who are local competitors? Determine how fierce competition can be. Have crystal-clear knowledge of your competitive edge and costs.
3. Have I learned government policies, legal systems and intellectual property issues? Laws are likely to be different. Defending proprietary technical products can require a strong legal team.
4. How can in-country agents help? The harder I worked to treat our agents as part of the team - communication, training and development - the more successful agents were.
5. Whar are the logistics? I have seen millions spent overnighting pallets of products that should have been shipped cheaper through better planning.
6. What about "service after the sale"? What do you do with your product if it does not work?
7. How is money collected? We found that it was routine in some countries to pay in 180 days when we were used to 30. Factor that into your plan.
This is not an all-includsive list. It's a jumpstart on planning.
Here's a complicating factor: Many companies now run leaner. Fewer people. "Just in time." The risk: Acting without a thorough plan.
There are business that help plan for sales outside the United States. Darrel Collier, a managing partner at one of those firms - International Market Solutions - says, "Positive domestic credibility doesn't automatically transfer to international customers. International expansion requires a different set of skills. Management must invest in developing non-U.S. skill-sets internally or they should go outside to seek help from consulting companies and/or agents that specialize in that type of activity."
A well-executed strategy done right the first time saves time and money and is a competitibe advantage. The best companies know how to build relationships with diverse cultures and master the complexities of selling to yield the most profit.
Sherry Sutton is a business and leadership coach and a member of the International Coach Federation, Charlotte chapter. Contact her at sherry@thinkingpartnersinc.com or 704-845-1341. Web site: www.thinkingpartnersinc.com.
Article published in The Charlotte Observer, January 27, 2008.
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