Small and mid-size MedTech enterprises (SMEs) contemplating entering international markets will need to develop knowledge, competencies, and expertise in some areas such as cultural sensitivity.
Already, some sales managers think that international selling is challenging, while others think it is somewhat easy. However, most who have tried it, see international sales as simply different and no more demanding than selling in the home market.
International sales success depends on multiple factors. However, two elements can largely influence the progress of internationalization. These are the attitude and approach of the MedTech company and the personal qualities and skills of the international sales managers.
Unfortunately, not every salesperson is suited to accomplish a complex task such as the management of several foreign markets. Hence, I think to properly execute the multifaced role of international sales manager continuous learning is paramount.
Luckily, in this post and the following one, I’ll explore some key aspects, basically cultural factors of international sales. And, I’ll examine issues and problems that can arise from these.
Why should an SME MedTech company sell internationally?
It seems obvious, but before starting to sell internationally or increasing the international presence of your brand, it is worth understanding the main reasons why a company should be involved in selling overseas.
This is because clarifying the reasons for going international will help to understand where and how to go.
Here are some more specific reasons:
- To become less vulnerable to the fluctuations of the current penetrated markets
- To take advantage of higher growth rates in specific markets
- To take advantage of higher size markets
- To take advantage of demands backed by strong purchasing power
- To counterbalance the loss of market share in current penetrated markets (due to increased competition, price pressure, obsolescence, product market misalignment, etc.)
- To achieve the benefits of economies of scale. For example, if the company can expand its production, leading to a reduction in average cost and an increase in margin.
This short list is not exhaustive and every MedTech or Pharma company should find its main factors to sell abroad and according to these elements develop a strategy.
Cultural factors in international selling
Selling in many different markets varies from selling in the home market or a few very similar and homogeneous markets. While economic and structural factors are definitively important, other factors can explain the differences between two countries with similar economic development and environment.
Therefore, selling medical products (devices or drugs) internationally involves among others the understanding and management of cultural differences.
What is the culture of a country?
Culture has been defined and classified in countless ways. A country’s culture is a way of life of a people that is not biologically transmitted, instead is passed on from one generation to the next, evolving, adjusting, and changing over time. It is mainly a set of mostly unwritten rules.
Normally in a society, people adhering to cultural norms are in some way rewarded, while those who deviate are punished to a greater or lesser degree according to the culture.
Cultural norms are not immutable either. On the contrary, they constantly change, but with a highly variable speed. Thus, old patterns of behavior will no longer be rewarded, whereas new patterns will.
The international sales manager and the country’s culture
International sales managers dealing with different countries need to understand this reward and punishment principle of culture because it influences the market dynamics. It implies the culture in which a person’s life affects many aspects, for example, the perception of quality, time, risk, aesthetics, price, etc.
Because of culture, certain products and features can be more easily accepted in some countries compared to others. In the same way, some selling practices or marketing messages will be perceived and accepted according to a particular country’s culture.
It follows that an international sales manager needs to understand how culture functions in each individual market so that the relationship with the local organization and the marketing and sales approach can be tailored accordingly.
Also, to deliver clear commercial support to the market, an international sales manager must understand the value system of the different actors in the market, and this entails a deep knowledge of the influence of cultural factors.
The international sales manager and cultural skills
International sales managers should develop cultural skills that would enable them to relate to different cultures in different countries, though they will never know all the elements of the culture in detail.
Cateora et al.1 suggested that people with cultural skills can:
- Communicate respect and convey verbally and nonverbally a positive regard and sincere interest in people and their culture
- Tolerate ambiguity and cope with cultural differences and the frustration that frequently develops when things are different and circumstances change
- Display empathy by understanding other people’s needs and differences from their point of view
- Remain nonjudgmental about the behavior of others, particularly with reference to their own value standards
- Recognize and control the self-reference criteria, that is, recognize their own culture and values as an influence on their perceptions, evaluations, and judgment in a situation.
- Laugh things off—a good sense of humor helps when frustration levels rise and things do not work as planned
Final remarks
In my opinion, an essential characteristic of a high-performer international sales manager in the Medical business is possessing and developing cultural skills. These precious skills allow the person to empathize with the markets and tailor the commercial approach.
In the next and final article, we will discuss some key elements of a country’s culture and its impact on international sales.
For now, let me know what you think of the effects of cultural factors in international sales of medical devices.
If you have enjoyed this article, feel free to share it with colleagues and perhaps, suggest they subscribe. See you in the next part.
1 Cateora, P.R., et al. International Marketing, McGraw-Hill.