Methods and Channels Show
Using large online marketplaces such as eBay, Amazon, and Alibaba is another variation of indirect selling that’s gaining popularity. Increasingly, these and other big players are offering distribution centers in other countries where your products can be closer to customers. In such cases, these big sellers offer to handle all the paperwork, customs, and logistics—for a fee. In direct selling, the U.S. producer deals directly with a foreign buyer. The paramount consideration in determining whether to market indirectly or directly is the level of resources your company is willing to devote to your international marketing effort. Other factors to consider when deciding whether to market indirectly or directly include:
We are agnostic on the question of which method is the best for you. Indeed, you may use more than one—selling directly to end-users via your website, selling on a major B2B or B2C e-commerce platform, engaging an agent to find buyers in a particular geographic area of the world, and selling to an EMC. There is no one “best” way. Approaches to
Exporting 1. Passively filling orders from domestic buyers, who then export the product. 2. Seeking out domestic buyers who represent foreign end-users or customers. 3. Exporting indirectly through intermediaries. 4. Exporting directly Most U.S. exports rely on the first two approaches. Neither of the first two approaches, however, require active involvement by the company who creates a product or service. As a result, they will not directly contribute to a surge in future exports, even if international business does increase. Consequently, this book concentrates on the latter two approaches. If your company’s goals and resources make indirect exporting your best choice, little further planning may be needed. In such a case, your main task is to find a suitable intermediary company that can handle most export details, or wait until they find you. Companies that are new to exporting or are unable to commit staff and funds to more complex export activities may find indirect methods of exporting more appropriate. However, using an EMC or other intermediary does not exclude the possibility of direct exporting for your company. For example, your company may try exporting directly to nearby markets such as the Bahamas, Canada, or Mexico, while letting an EMC handle more challenging sales to Egypt or Japan. You may also choose to gradually increase the level of direct exporting once you have gained enough experience and sales volume to justify added investment. This approach is common and can lead to impressive sales growth such that international sales surpass domestic sales, as reported by the exporter profiles in this book. Before deciding, you may want to consult trade specialists such as those at the U.S. Commercial Service. They can be helpful in determining the best approach or mix of approaches for you and your company. Choose an approach that fits your company’s desired level of involvement in the export process—but be aware of the benefits and pitfalls of each. The method(s) you choose to export can significantly impact your export plan and marketing needs. Export Marketing Export Potential Exports What firms are export specialists that act as an export department for their clients?Export Management Company (EMC) Export specialists that act as the export marketing department or international department for their client firms.. Letter of Credit. ... . Bill of Exchange. ... . Draft. ... . Sight Draft. ... . Time Draft. ... . Bill of lading. ... . Export-Import Bank (Ex-Im Bank). What type of company is normally used as a trusted intermediary for exporting situations?Distributors. are export intermediaries who represent the company in the foreign market. Often, distributors represent many companies, acting as the “face” of the company in that country, selling products, providing customer service, and receiving payments.
Which department of the US federal government provides the most all inclusive source of information regarding export opportunities?The Department of Commerce, through its International Trade Administration (ITA), is the lead agency providing export assistance services for U.S. non-agricultural businesses.
Which of the following is a function of an export management company quizlet?Which of the following is a function of an export management company such as The Forlan Group? It starts exporting operations for a firm with the understanding that the firm will take over operations after they are well established. You just studied 20 terms!
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