Page 201 - International Marketing

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BRILLIANT'S Overseas Market 203

or middleman. The intermediary may be a Forms of Indirect
domestic agent who sells the manufacturer's Distribution Channel
goods without taking the title to the goods
whereas domestic merchant sells the goods (A)Agents
by taking the title of the goods. 1. Export Management
The domestic agents take the Company (EMC)
possession of goods without taking title of 2. Manufacturer's Export
goods, they have different duties in respect Agent (MEA)
to continuation of relationship with the 3. W e bb - P om er en e
principal (long term Vs. adhoc); degree of Association
control maintained by the principal (complete 4. Foreign Freight
Vs. slight Vs. name); pricing authority Forwarder
according to the agent (full Vs. partial Vs. 5. Commission Agent
advisory); affiliation with buyer or seller; 6. Country Controlled
number of principals served at a time (few Buying Agent
Vs many); involvement or non-involvement
with shipping or handling of competitive lines; 7. American Trading
provision of promotional support (continuous Company (ATC)
Vs. one time Vs. none); extension of credit (B)Merchant Middlemen
to principal (regularly Vs. occasionally Vs. 1. Export Merchant
rarely Vs. never) and provision of market 2. Cooperative Exporter
information (goods Vs. fair Vs. poor). 3. Export Vendor
Some popular forms of indirect 4. Overseas Military
distribution channel through agents are Market Represe-
discussed as under: ntatives
1. Export Management Company 5. Multinational Co-
(EMC): An EMC is an independent mpanies
export organization that serves
different companies in their export endeavours. The EMC regards
the exporter as client not as an employer. It deals in a number of
allied but non-competitive lines and usually handles the entire
export function for a manufacturer. In all contracts and
communications overseas, the EMC operates under the clients
name, using client stationary and promotional materials such as
catalogues. EMCs differ in the scale of their operation. They are
used by both large and small companies, because they can take
exporting more effectively and generally at a lower cost than other
channels.
2. Manufacturer's Export Agent (MEA): The MEA provides services
similar to those provided by the EMC, but the MEA covers limited