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Intermediaries in International Trade and Marketing

In: Business and Management

Submitted By gozdeuzunnn
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In today’s increasingly globalized world, international marketing is becoming more and more important day by day. When entering this important phase, one of the main dilemmas of manufacturing company becomes, whether doing the export by themselves, or outsourcing the service will be more advantageous. While some companies prefer direct trade and marketing in which the transactions are only done in between the manufacturer and the final retailer; some others proceed indirectly, involving a middle-man before the final buyer.
Direct marketing requires a total dedication of time and resources, and finances to identify opportunities in a foreign market. The manufacturer, all by itself, is responsible for market research, planning and distribution of the product, which is expected to produce satisfactory sales results.
For large companies with time and resources to devote to exporting, direct marketing might be a feasible option. Also in the long run it may be more profitable for a company to build relationships themselves rather than do so through a third party, in order to improve personal relationships in export.
As for small sized companies, marketing through intermediaries can be more feasible and a safer first step in exporting. By using intermediaries, small firms may have a representation in foreign markets without a serious commitment of time and money as the intermediary takes on all responsibilities itself. And due to the wide range of alternatives, manufacturer can actually maintain control over the export process while benefiting from the knowledge and expertise of an outsource service. Frequently, the exporting manufacturer has a reduced level of financial risk because the intermediary assumes the responsibility for finding overseas buyers, shipping products and collecting payment.
The types of...

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