Term
| two basic forms of exporting |
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Definition
| direct and indirect exporting |
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Term
| considerations about form of exporting: |
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Definition
1. cost of performing functions
2. costs of organizing activities or contracting with others |
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Term
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Definition
| uses independent organizations in manufactuer's own country |
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Term
| two types of marketing organizations |
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Definition
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Term
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Definition
| take title to the products |
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Term
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Definition
| do not take title to the products |
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Term
home country based merchants:
export merchants |
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Definition
| do all steps except product and package modification |
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Term
home country based merchants:
trading companies |
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Definition
| type of export merchants, large and do more functions : providing financing, are supply/demand rather than production or user oriented |
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Term
home country based merchants:
export desk jobber (export drop shipper/cable merchant)
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Definition
| buy and sell primarliy raw materials. take title but not physical possession |
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Term
home country based agents:
broker
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Definition
| primarily finds buyers for sellers and visa versa |
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Term
| export management company (emc) |
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Definition
| acts as exculsive export deparment for manufactuer for several allied but non-competing manufacturer for overseas buyers; uses manufacturer's letterhead; some act more like distributors (merchants) others like agents |
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Term
home country based agents:
manufacturer's export agent
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Definition
| operates in own name; doesn't provide as many services |
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Term
home country based agents:
export commission house
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Definition
| essentially becomes a domestic buyer; easy but exporter has little control; not long term |
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Term
home country based agents:
confirming house
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Definition
| assists overseas buyers; pays exporter |
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Term
home country based agents:
resident buyer
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Definition
| can build up long term relationships |
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Term
| advantages of independent marketing organizations |
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Definition
| inexpensive to start, foreign expertise, build up volume quickly, good for out-of-the-way markets |
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Term
| disadvantages of independent marketing organizations |
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Definition
| may not provide enough marketing effort; take some profit, may drop a manufacturer |
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Term
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Definition
| company a marketing the product of company b through company a's channels; may use the brand of b, a, or private label; easy low risk way to begin exporting |
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Term
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Definition
| associations to promote exports of member's products or to serve as export cartel |
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Term
| Direct Exporting: Built in Export Department |
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Definition
| easiest to establish; may have problems getting support from other units and in carrying out technical functions |
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Term
| Direct Exporting: Separate export Department |
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Definition
| little conflict in daily operations but may be competition for resources |
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Term
| direct exporting: export sales subsidiary |
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Definition
| provides unified control; profit center; ease of financing; wider product line; tax advantages in some countries |
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Term
| direct exporting: foreign sales branch |
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Definition
| provides control, service dedicated staff for your products; costly |
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Term
direct exporting: storage or warehouse facilities
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Definition
| may be for one country or regional. used when inventory in foreign market is necessary or profitable |
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Term
direct exporting: foreign sales subsidiary
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Definition
| has greater autonomy because of foreign incorporation and domicile. may have tax and business practices advantages. (taxes are not the only reason for establishment) |
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Term
| direct exporting: traveling salespersons |
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Definition
| functions: selling activities, customer relations, information gathering; may act as demonstrator or tutor. balance costs vs benefits |
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Term
| advantages of dependent export organizations |
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Definition
| full return on sale, protection from neglect, knowledge, permanency' protect goodwill, costs decrease with volume |
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Term
| disadvantages of dependend export organizations |
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Definition
| costs and risks, luck of specialized knowledge, volume may be slow to build |
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Term
| business functions that can be performed on the internet |
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Definition
- market research
- expanding representation
- customer and marketing support
- advertising
- trade leads
- logistics
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Term
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Definition
| marketing channels not authorized by the exporter for a particular foreign market. high-priced, branded consumer goods. |
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