They represent a marketing process that allows organizations to expand their reach, taking advantage of the opportunity to bring their products to markets beyond their borders. Read on to learn how international sales are defined, as well as some of its types and current strategies.
For those looking to enter global sales, it is crucial to take into account the specific nature of the market and the product or service offered. In this way, you will be able to evaluate the most effective and efficient means of providing adequate support to the marketing and distribution channels. Decisions on how to access new consumers are closely linked to the marketing and sales strategy implemented by the company.
In this sense, solid planning focused on understanding the needs and preferences of the target market allows for establishing successful business relationships and maximizing growth opportunities abroad. Therefore, it is necessary to know more details about what international sales mean.
What are international sales?
This involves the marketing of products and services by a company from a specific country with one or more other nations . These operations are essential for the economic and financial growth of businesses, because they allow them to reach different customers. This commercial dynamic enables companies to expand their consumers and access competitive advantages, and the receiving countries enjoy goods that they cannot produce locally in an efficient manner.
Selling internationally has become even more relevant in this era, as technology has offered advancements that facilitate global trade , but it also demands meticulous attention to customer needs and the delivery of precise solutions, since operating in foreign markets may require considering more aspects than in the home country.
As explained by the Spanish Association of Foreign Trade Professionals in its book Guide for the preparation of professionals in foreign trade and international operations (2014), the international sales process shares many similarities with local sales, although the main distinction has to do with the ability to identify the most appropriate way to enter the selected foreign market, in order to establish sustained sales over time. Thus, this process includes the following:
Identify the client.
Make contacts, meetings and negotiations.
Address objections to reach agreements.
Carry out the closing of the sale.
Follow up with the client.
International sales planning is a fundamental pillar for defining commercial goals, contact and conversion rates, sales team size, geographic distribution, product diversification and cpa b2b list analysis of customer purchasing capabilities. A well-structured strategy therefore guarantees an effective presence in new markets, optimises available resources and allows you to anticipate the preferences of international customers.
Read on to find out: What is the role of customs in international business?
Types of international sales
To access an international market, it is necessary to identify the best entry route for the business. In this sense, there are four main forms or types of international sales, which can be used separately or together, depending on the market to which the products or services are directed.
In this way, a direct sale can be made from the country of origin, operating in the destination country, using an agent or establishing agreements with a distributor, as explained below:
Direct sales from the country of origin. This involves frequent sales visits to the destination country, accompanied by telephone sales or international orders through e-commerce. Although this approach can be simple and economical, it has the disadvantage of distancing the company from its customers and prevents sharing the workload with partners or intermediaries, including the risks associated with exporting.
Operating in the destination country. This involves establishing a subsidiary or branch of the company in a new market or creating a joint collaboration project with a local partner. Although it requires a greater investment of resources and efforts, it guarantees having a physical presence in the new country, which can be highly beneficial, as it offers the possibility of taking better advantage of market opportunities.
Through an agent. In this type of international sale, a professional acts on behalf of the company in the new market, receiving a commission for his services when making sales. This offers a key advantage, since the agent's expert knowledge of the target market is of great use, allowing for a better understanding of the commercial and cultural practices of the target country.
Through a distributor. In this case, a business entity assumes greater responsibility for export, compared to a sales agent. The distributor acquires the products or services directly from the supplier company, and then takes charge of marketing the goods in the destination country, considering logistics, promotion and sales, which adds a profit margin to each transaction.