Page 205 - International Marketing

NPP

BRILLIANT'S Overseas Market 207

Forms of Direct Distribution Channels
(A) Through agents: A company may deal with different type of agent
intermediaries overseas. These agents do not take title to the goods and
usually work for commission. The direct distribution through agents
undertaking overseas marketing may be in following forms:
1. Sales representatives: They resemble to manufacturer's
representatives. A manufacturer supplies the sales representatives
with literature and samples to
conduct sales in a predesignated Forms of Direct
territory. These representatives Distribution Channels
usually work on a commission
basis, assume no risk and (A)Through agents
responsibility and are under for a 1. Sales representatives
definite period. They serve as a good 2. Purchasing agent
source of market information. 3. Export broker
2. Purchasing agent: The purchasing (B) Through merchant
agents are also known as buyer for intermediaries
export, an export commission house 1. Export distributors
or as an export confirming house. 2. Foreign retailer
Their product quality and price
demands stem from the 3. Export jobber
requirements of the principals. The 4. Trading company
foreign purchasing agents represent
governments or big contractors either for a specified time or for a
particular task. They might be authorized by the government to
buy designated goods. Once the plant is constructed the
purchasing agents cease to be active. They provide temporary
services and stable volume of vendors. They receive commissions
from their principals. A transaction with a purchasing agent is
completed as in domestic marketing with the agent handling all
packing and shipping details are over.
3. Export broker: The export broker brings the foreign buyer and
seller together. Usually, export brokers receive a commission or
fee from the seller for their services. They take neither title nor
possession of goods and assume no financial responsibility relative
to the export transaction. Export brokers generally are used in the
export of commodities such as grain or cotton. Export brokers are
rarely involved in export of manufactured goods.
(B) Through merchant intermediaries: The foreign merchant
intermediaries take title to the goods and sell them under their own names.