This paper examines the key considerations involved in planning and organizing an overseas sales force capability, as well as the pivotal role of the expatriate sales person in international business expansion. The first section addresses how companies must adapt their marketing mix, promotional strategies, staffing decisions, and distribution channels to meet the unique demands of foreign markets. The second section analyzes why expatriate managers are indispensable to international ventures, reviewing the competencies required for success, the reasons expatriates frequently fail, and the organizational implications of premature repatriation. Together, the two sections provide a practical framework for understanding international marketing management.
The paper effectively uses comparative analysis to distinguish between three employee types — the home-country employee, the locally hired employee, and the expatriate — building a logical case for why the expatriate role carries the greatest strategic responsibility. This technique of structured comparison clarifies complex managerial trade-offs and demonstrates analytical reasoning rather than mere description.
The paper opens with a broad discussion of globalization as motivation for international expansion, then narrows to specific market entry considerations, promotional adaptation, and staffing choices. The second half shifts focus to the expatriate sales person, examining selection criteria, failure rates, and the competencies required for success. A brief concluding section ties both halves together with practical recommendations for companies planning overseas ventures.
Globalization has affected all aspects of everyday life. It is present in the social, cultural, technological, and even political sectors. Most commonly, however, globalization manifests in the economic and business sector. More and more companies are attracted by the possibility of accessing cheaper resources within foreign countries and generating profits on an international scale. This is most likely why numerous companies launch operational and sales activities abroad. However, when planning and organizing a sales force capability in an overseas market, an organization must consider various factors and options that may significantly influence the final outcome.
The most important principle when entering an overseas market is that the organization must change its approach and adapt to the requirements of the new market. Companies must respect the local culture and satisfy the needs of local customers. As one source notes, "International marketing involves recognising that people all over the world have different needs. Companies like Gillette, Coca-Cola, United Airlines, BIC, Cadbury-Schweppes and Nissan have brands that are recognised across the globe. While many of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is also necessary to understand regional differences, hence the importance of international marketing. Organisations must accept that differences in values, customs, languages and currencies will mean that some products will only suit certain countries… there are important regional differences — for example, advertising in China and India need to focus on local languages" (the Times Newspapers and MBA Publishing, 1995–2008).
The differences between various markets are so significant that a misconception about what they represent could easily become the shortest road to corporate failure. Differences must be clearly analyzed and continually related to the new features of the market being penetrated. These differences can be found in customers' purchasing behaviors, potential barriers to entry, and customs taxes.
Information must be gathered and analyzed before actually launching a new venture. Management must also recognize that gathering this information will be a demanding assignment, largely due to impediments such as language barriers. The market analysis must therefore be carefully prepared, and sufficient time must be allocated for it. Two primary questions the analysis should answer are: whether a market and demand for the product exist, and how much customization and adaptation the product will require in order to be suitable for the overseas market (the Times Newspapers and MBA Publishing, 1995–2008).
Other important questions managers should ask before launching an overseas venture have been summarized by Kenneth Klee as follows:
Do you have the right resources to pull this off? — This refers to the overall strength of the company, measured in terms such as brand recognition, market share, or technological capabilities. As a general rule, a company must be successful and well-regarded in its domestic market before it can succeed overseas.
Can you identify a market? — The list of potential markets is vast, as are the features of each market. To ensure they make the best strategic choice for the long run, managers should use resources such as the Department of Commerce's Commercial Service to identify trade trends, competition levels, and the population's buying power.
Are you flexible? — Customization and adaptation are vital, but they are only possible if the company has the capacity to adapt.
Can you find a good distributor? — Reliable business partners are essential to success in an overseas market, as they represent the path products and services take to reach the final customer.
Can you cope with the complexity? — Territorial expansion most often implies additional workloads that can feel overwhelming. "Business owners often complain about the endless paperwork involved in marketing overseas. 'Each shipment to Canada,' says one owner, 'requires 40 pieces of paper. And you have to save the paperwork for at least three years'" (Klee).
Are you willing to extend credit and deal with currency turmoil? — Overseas operations can imply the need for additional financing, and an actual profit may not materialize for years. This is another factor worth analyzing carefully.
The promotional activity — a vital element of any marketing operation — must also be tailored to the unique needs of the new market in order to best attract customers. Managers should consider using different media channels, changing symbols, and adapting the market proposition. "Using different media — TV viewers in one country may belong to a particular socio-economic group, while in others TV ownership is far more widespread; changing symbols — for example, you may need to respect different standards of dress in promotional activities in some countries; changing the market proposition — for example, bicycles are presented as a leisure item in one country, but as essential vehicles elsewhere" (UK Trade and Investment, 2008).
The staff selected to handle a new overseas venture must be chosen carefully. Two main alternatives exist: use employees from the home country who are relocated to the new location, or hire local staff. The first alternative has the advantage that existing employees are already familiar with corporate requirements and are integrated within the organizational culture; they therefore have an increased likelihood of success in representing the company. The limitation of this approach is that these employees have no prior experience in the foreign market — they possess little, if any, knowledge of market trends, customer behavior, language, or other local features. Furthermore, it can be quite difficult to relocate large numbers of employees, especially when they may request the relocation of their families as well.
The second alternative — hiring the local population — has the advantage of eliminating cultural barriers between corporate employees and the market. The net disadvantage, however, is that new staff members will be unfamiliar with the company's tasks, products, or services. This means additional funds will have to be allocated for the training and development of new employees. Nevertheless, the investment may be worthwhile, as an overseas workforce can be less costly than a domestic one. Moreover, the creation of new jobs within a new country is generally welcomed by the local population, which can improve the company's chances of success.
The list of aspects management must consider when planning and organizing an overseas sales force is extensive. The fundamental principle, however, is the implementation of change, customization, and adaptation as an ongoing process rather than a sporadic event. All aspects of marketing research, analysis, product placement, pricing, promotions, and distribution channel selection must be carried out in full accordance with the features of the local market.
Whenever an organization decides to launch a new venture in a foreign market, it will need to select trustworthy and capable employees to handle overseas operations. The roles of these delegated employees are far more important than the roles of other staff members. To fully appreciate this, one should compare the delegated employee against the corporate employee remaining in the home country and the corporate employee hired in the host country.
In implementing all of these initiatives, the expatriate sales person will be supported by the company in terms of both technical and financial resources. The ultimate responsibility for the international success of the new venture, however, rests on the shoulders of the expatriate. This is why the role of the expatriate employee carries greater weight than that of domestic counterparts.
Given the still significant number of expatriate employees who fail to integrate into their new communities — and the immense role they play in achieving corporate success at the international level — company officials must select delegated staff with great care. Once chosen, these employees should be offered comprehensive training programs covering both their operational responsibilities and cultural integration. They should be educated about the customs, history, and language of the host country. Importantly, the families of expatriate employees should also be included in pre-departure preparation, as family adjustment is closely linked to the overall success of an overseas assignment.
The fundamental principle underlying all aspects of international marketing management — from market research and product adaptation to promotional strategy and staffing — is a sustained commitment to change and customization. Companies that treat these as ongoing processes rather than one-time adjustments will be far better positioned to succeed in the complex and dynamic landscape of international marketing.
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