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How Do I Create a Strong Sales Concept?

In: The China Management Handbook

Author

Listed:
  • Engelbert Boos

Abstract

Many internationally successful operating companies operate different sales channels in China such as their own production facilities in China and their other international subsidiaries due to strategic considerations. The main reasons may be the request for a higher total sales volume, the realisation of a profit centre concept, the differentiation in cost, pricing, specification and service for the penetration of different market segments or just a specific profit contribution policy for the local enterprise. However, the potential higher sales volume may have influence on the general price level and image on the same brand’s products. On the one hand, customers will use their purchasing power and negotiate lower prices between the different sales channels. On the other hand, the competing salesmen will reduce their reliance on teamwork and keep secret important market information. The advertising of competing sales channels may also cause customer confusion. Therefore, the products should be clearly differentiated one from another and the co-ordination of such activities should be done preferably in China.

Suggested Citation

  • Engelbert Boos, 2003. "How Do I Create a Strong Sales Concept?," Palgrave Macmillan Books, in: The China Management Handbook, chapter 7, pages 272-300, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59972-7_7
    DOI: 10.1057/9780230599727_7
    as

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