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.
