Direct/Indirect Export

Objectives

In this Learning Unit you will learn about the channel options that may be used when entering new export markets.

We are going to examine the direct and indirect export channels open to the exporter, analyse the functions of importers and representatives, discuss the use of company personnel and sales or production subsidiaries as well as explore franchising, licensing and other channels.

Learning Unit Summary

In general, it would be ideal for an exporter to be able to sell direct to his final client with no need for intermediaries. In this way the exporter: reduces sales costs, increasing the product’s competitiveness; is in direct contact with the market, obtaining a continuous feedback of information; can control the company’s marketing policy directly.

But, the truth is that this is not always possible (due to the costs involved, market idiosyncrasies, etc) and the company should seek an intermediary.

Course Contents

    • Importer
    • Representative
    • Company Personnel
    • Sales Subsidiary
    • Production Subsidiary
    • License
    • Franchise
    • Other Channels

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