Distribution
Once having
made as reliable an assessment as possible of the suitability
of your product or service to overseas markets, then comes
the decision as to exactly how marketing will take place.
The range of possible options include: agents, distributors,
selling direct, collaborative projects and trade shows, all
of which we might now briefly consider.
Agents
Agents
acting on the exporter's behalf will usually visit potential
customers for the purpose of taking orders, and will normally
command commission to the tune of 10 per cent the cost of
goods exported. The exporter subsequently despatches goods
and forwards invoices direct to customers. The main problem
confronting the exporter is that of locating a good and reliable
agent to act on his or her behalf, something with which most
export information and advisory services are usually more
than qualified to assist.
Distributors
Distributors
undertake services very much akin to those carried out by
agents, and might additionally maintain stocks of the exporter's
goods. Distributors might sell products through their own
already established chains of agents and distributors. All
goods and services are sent direct to the main distributor.
Selling
Direct
Where
the exporter opts for direct marketing, it must then be established
whether the postal services will prove adequate to facilitate
all transactions, or whether the more costly options of air
freight or sea freight are more appropriate to marketing of
the product or service concerned. Post, where suitable for
the product concerned, can prove cost-effective and eliminate
the financial burden known to accompany delivery via agents
and distributors. But only certain products and services are
suited to marketing by mail, which by its very nature is unsuitable
for fragile and perishable items and wholly inappropriate
for services which must of necessity be carried out in person!
Goods suited to posting abroad will usually be both light
and reasonably compact. The procedure for posting is relatively
simple: the exporter completes customs declaration forms available
at the post office and hands them back in the same manner
as when posting parcels to a UK address. Payment terms might
be CBD (Cash Before Delivery) or COD (Cash on Delivery). Rules
and regulations relating to specific countries are available
at Post Office counters.
Sea freight
and air freight transportation normally require shipping agents
to handle the sometimes complicated documentation involved.
The astute exporter will realise only too well the profitability
of shopping around for a reliable shipping agentand a competitive
rate.Direct marketing can in fact prove very complicated and
time-consuming, particularly for smaller firms which will
have to master problems of documentation, customs, shipping,
payment, and sometimes language differences. Dealing by remote
control canin itself prove difficult, and the alternative
of trips abroad to effect transactions can prove costly in
the extreme.
One other
method of selling direct involves attendance at a Trade Show
in the country to which the businessman intends to export.
Orders originate by direct approach from customers. Follow
up sales and repeat custom usually comes from regular attendance
at trade shows.
Collaborative
Projects
Collaboration
finds companies in different countries carrying out certain
services and providing facilities for exporters abroad, in
return for reciprocal representation of their goods and services
in other countries.
Trade
Shows
Even small
businesses operating on an international basis should consider
taking a stall at any of the many international trade shows
held in Britain and abroad. For many exporters it is from
attendance at trade shows that the vast majority of business
originates.
|
