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Secrets of International Trade

Overview Role of the Foreign Agent or Distributor

 

Part 1

Part 2

Part 3

Part 4


 
 

Agents are always tempted to neglect one product for another for which the commission is greater.

If the exporter appoints a foreign import agent, distributor, export merchant, an export agent, a trading house
 

Or a Resident foreign buyer as channels of distribution for its goods, the promotional strategy should be developed in consultation with them.
 

Obviously, the exporter should have as much say in the matter as possible by setting it in the Agency or Distributorship Agreement.
 

Since the agent's commission will depend on the sales orders - it should be sufficient motivation for him/her or the company to do a good promotional job.
 

An agent always has the temptation to neglect one product for another for which the commission is greater.
 

Or the agent could be short of funds to pay for the necessary promotion or perhaps wishes to skimp as much as possible.

Recommended further reading : Buyers Obligations "inevitably, disputes arise in the execution of a contract and can be taken to court or referred to arbitration"
 

 

 
 

Role of the Exporter

The exporter may find it more effective, particularly if it is exporting machinery or other technically sophisticated products, to send out its own sales engineers and trainers rather than rely solely on the efforts of the foreign agent or distributor.
 

Responsibility for ensuring that the proper product advertising is being done abroad is often delegated to the export firm's.
 

A small export firm, may enlist the help from an advertising consultant on a part-time basis and suggest basic ideas to the firm's representative.
 

Government trade consulate help may also be obtained in planning other forms of export promotion, including preparation for trade fairs.
 
Recommended further reading :
How to develop your export market?
 

Bigger exporter, should attempt to establish a consistent world wide corporate identity that is synonymous with quality and reliability.
 

This can involve not only traditional forms of promotion but also the sponsoring of sporting and other public events, charitable donations, and community involvement.
 

All catalogues, brochures, manuals and other written material should be in the local language, to portrays, as much as possible, a local image.

 

 

 
Part 1/4
Export Promotions are marketing activities to persuade potential customers to buy your goods or services.

 
Part 2/4 < This Page
Role of the Foreign Agent & Exporter. The promotional strategy should be developed in consultation with them.

 
Part 3/4
Trade Fairs... are the most effective way to introduce a product and to find out exactly what international buyers think.

 
Part 4/4
Export Payment, Financing & Documentation and payment by sight draft drawn against an irrevocable letter of credit.
 

 

 

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