Export Marketing Process
Francis Nutsuego
Sales & Marketing Manager @ Royal Crown Packaging Limited | Bilingual Council Member
Small enterprises often start exporting through the receipt of unsolicited orders from abroad. As their volume of export orders grows, these enterprises need to start thinking about setting up a long-term relationship with their export markets by having some kind of representation in them. There are several options for such representation:
?APPOINTING AN AGENT -This is a common form of representation for exporters in developing countries. An agent is someone who works for the exporter in a foreign market (the exporter is called the principal). The agent “introduces” customers to the exporter and can help market the exporter’s products. For this, the agent is paid a fee or a commission by the exporter. It is important to note that the agent does not buy the exporter’s goods, nor does he/she enter into contracts with customers for these goods.
APPOINTING A DISTRIBUTOR- Many exporters confuse agents with distributors. A distributor is someone who buys the exporter’s goods and then sells those goods to customers in his/her area, often through his/her own sales outlets. Distributors can also provide exporters with services such as credit reports, marketing information etc
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E-COMMERCE- is an alternative which involves selling directly on the web to avoid middle men in the value chain.
JOINT VENTURE- Another option for well-established exporters might be to set up an association with a local partner to form a joint venture. Often, however, this option involves binding legal implications, making it difficult for exporters to withdraw from such agreements. Before agreeing to a joint venture, exporters should ensure that it is possible to end the arrangement if required.
BRANCH OFFICE- SMEs can set up their own office in their export market. This strategy might be suitable for a well-established export operation and would ensure that it has control over its channels of distribution. This option is not really applicable for small exporters, however, as it can be costly and often involves a protocols and long formalities.