Lecture 5
Information for International
Marketing
Export Entry Mode
International Information
Research Process
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Determine Information Requirements
Develop Research Plans
Data Collection
Data Interpretation
Update databank
Report presentation
Sources of Information
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Web
Bank
Customs
Forwarders
Consultants
EXPORT ENTRY MODES
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Indirect Export
Direct Export
A. Indirect Export
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1.
2.
When exporting manufacturer uses
independent organizations located in the
producer’s country. Or producer may have
a dependent export organization by:
Using International Marketing Organizations
Exporting thru a cooperative organization.
International Marketing
Organizations
There are two types of independent
wholesale marketing intermediaries:
Merchants
&
Agents
(Title)
(No title)
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International Marketing
Organizations
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Merchants: They buy & sell on their own
accounts. Trading Co’s (FTC)
Export Commission House: (Export buying
agent) represantative of foreign buyers who
resides in the exporter’s home country.
Overseas customer’s hired purchasing
agent in the domestic market of exporter.
(Gets commission from buyer) It scans the
exporter’s country for cheap/deals.
manufacturer gains financial/credit/payment
advantages.
International Marketing
Organizations
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Conforming House: Conforming the orders already
placed, so that manufacturer may receive payment
from the conforming house when the goods are
shipped.
Banks  FI more than that in UK.
Resident Buyer: ECH -similar to- All operations
placing orders follow up, export operations,
cashflow; difference is employed represantative
(resident or local people).
Broker: Function is to bring the importer &
exporter together. Sort of contractual function; paid
by any principal.
International Marketing
Organizations
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Export Management Company: Is an
international sales specialist who functions
as the exclusive export department for
several allied but non-competing
manufacturer.
Manufacturer’s Export Agent: They keep
manufacturer’s own identity. They get
straight commissions. Less job (advertising
& financial assistance)!
Cooperative Organizations
Cross between indirect/direct export.
1. Piggyback marketing
2. Exporting combinations
Piggyback marketing
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One manufacturer uses its foreign
distribution facilities to sell another
manufacturer’s products.
Companies are allied not competitive.
GE+Borg Wagner to broaden product
line up.
Arçelik+Siemens mobile.
Exporting combinations
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A manufacturer can export cooperatively by
becoming a member of some type of
exporting combination.
Cooperative associations of producers or
/Tarım Koop.
Export cartels  when 2 or more
independent biz firms in the same or
affiliated fields of economic activity join
together for the purpose of exerting control
over a market.
B. Direct Export
Selling directly to foreign buyer.
A- Home based department
B- Foreign Sales Branch
C- Storage or WH Facilities
D- Foreign Sales Subsidiary
E- Traveling Salesperson
F- Foreign Based Distributers & Agents / Reps.
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Home based department
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Built in Dept: Export manager- Actual
selling + direct it. Most other XP marketing
activities outsourced (advertising + logistics
+ credits)
Seperate Exp.Dept: Most of XP activities are
handled within the Dept. itself. Complete
Exp. Mn. Dept.
Export-Sales Subsidiary: To divorce from
Domestic Operations one may establish an
export sales subsidiary as a part of seperate
corporation.
B- Foreign Sales Branch
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Handles all sales, distribution &
promotional work out in foreign market
and sells to wholesalers & dealers
(marketing org.)
C- Storage or WH Facilities
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When it is profitable for a manufacturer
to maintain an inventory in foreign
markets, a storage & /or WH can be
established. Such facilities may be part
of a sales branch.
D- Foreign Sales Subsidiary
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Similar to Export Sales Subsidiary in
homebased department//sales branch.
Difference is that they have great
autonomy because of their foreign
incorporation & domicile.
E- Traveling Salesperson
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Who resides in one country often the
home country of the employer, and
travels abroad to perfrom the sales
duties. May be sent to market & be a
resident.
(FS Branch)
F- Foreign Based Distributers
& Agents / Reps.
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Profile must be checked
Gray Market Exporting
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Channel conflict// known as parallel
importation.
Not authorized by the exporter for a
particular foreign market.
Legal importation of genuine goods into a
country by intermediaries other than
authorized distributers.
Authorized distributors face competition
from others.