Page 206 - International Marketing

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208 International Marketing BRILLIANT'S

They may or may not take possession of the goods. They render services
similar to domestic wholesaler. Major types of foreign merchant
intermediaries are as follows:
1. Export distributors: They purchase goods from manufacturer at
the greatest possible discount and resell them for a profit. They are
especially active in distributing products that require periodic servicing.
They commit themselves to provide adequate service to the customers
through carrying a sufficient quantity of spares and parts maintaining
facilities and providing technicians to perform all normal servicing operations.
They buy their own names and usually maintain an ongoing relationship
with the exporter. They have exclusive sales rights in a country or region
and receive easy payment terms from exporters.
2. Foreign retailer: In some cases, the manufacturers deal directly
with foreign retailers particularly in the case of consumer goods. The
contract may be made either through a travelling sales person or by mail
using catalogues or brochures. In many countries, large retailers perform
dual roles. They sell directly to consumers through their own outlets and
distribute imported goods to smaller retailers. The foreign retailer receives
a wide coverage.
3. Export jobber: The export jobbers determine customer needs
overseas and fill them by making purchases. Some jobbers reverse the
process, filling needs of the customers by supplying imported products.
The jobbers mainly deal in staples, openly traded products for which brand
names have little importance.
4. Trading company: Now-a-days trading companies are associated
with Japan. Actually, the concept of trading company is much older. In
Japan, the trading company has been originated as a commodity dealer
that out grows its wholesale functions. These companies adapt their trading
companies to the task of acquiring the raw material in addition to moving
Japanese goods overseas. They also offer broad range of services from
marketing research to financing and present a relatively inexpensive way
for the small or medium size firms to do international marketing. 
Q.33. Briefly discuss factors that must be taken into account while
dividing the type of distribution channel for Indian agricul-
tural products in overseas markets? [MBA(FT) 2007]
OR
Enumerate the factors which affect the international chan-
nels.