Page 183 - DMGT547_INTERNATIONAL_MARKETING

International Marketing

Notes the overseas customers’ behalf the purchasing agent acts in the interest of the buyer by
seeking the best possible price. Therefore, the purchasing agent’s client pays a fee or
commission for the services rendered. The purchasing agent is also known as Commission
Agent, Buyer for Export, Export Commission House and Export Buying Agent. This agent
may also become an export confirming house when confirming payment and paying the
seller after receiving invoice and the title document for the client.
7. Country controlled buying agent: Country Controlled Buying Agent is only a variation
on the purchasing agent because this kind of agent performs exactly the same function as
the purchasing/buying agent, the only distinction being that a country controlled buying
agent is actually a foreign government’s agency or quasi government firm. The country
controlled buying agent is empowered to locate and purchase goods for its country. This
agent may have a representative, who makes formal visit to the supplier country when
the purchasing need arises.
8. Resident buyer: Resident Buyer is another variation on the purchasing agent. The resident
agent as the name implies is an independent agent that is usually located near the highly
centralised production industry. Although functioning like a regular purchase agent, the
resident buyer is different because the principle on a continuous basis to maintain a search
for new products that may be suitable retains it. The long-term relationship makes it
possible for the resident buyer to be compensated with a retainer and commission for
business transacted.
9. Export merchant: One kind of domestic merchant is the export merchant. An export
merchant seeks out need in foreign markets and makes purchases from manufacturers in
its own country to fill those needs. Usually the merchant handles staple goods,
undifferentiated products or those in which brands are unimportant. After having the
merchandised packed and marked to specifications, the export merchant resells the goods
in his name through his contacts in the foreign markets. The merchant completes all the
formalities and arrangements, assumes all risks associated with the ownership.
10. Export drop shipper: An export drop shipper also known as a desk jobber or cable merchant
is a special kind of export merchant. As all these imply the mode of operation requires the
drop shipper to request the manufacturer to “drop ship” a product directly to the overseas
customers. It is neither practical nor desirable for the shipper to physically handle or
possess the product. Based on this operational method the shipper’s ownership of the
goods may only last for a few hours.

The export drop shipper places an order with a manufacturer directing the manufacturer
to deliver the product directly to the foreign buyer on the receipt of order from overseas.
The manufacturer collects payment from the drop shipper who in turn is paid by the
foreign buyer.
11. Export distributor: This distributor is authorised and granted an exclusive marketing
right to represent the manufacturer and to sell in some or all-foreign markets. It pays for
goods in his domestic transaction with the manufacturer and handles all financial risks in
the foreign trade.

An export distributor differs from foreign distributor simply in location. The foreign
distributor is located in a particular foreign country and is authorised to distribute and
sell the product there.
12. Trading companies: The buyers and sellers in the foreign markets have no knowledge of
each other or no knowledge of how to contact each other. Trading companies have come
into existence to fill this void. In international marketing activities, for many countries
this type of intermediaries may be the most dominant form in volume of business and in
influence. Many trading companies are large and have branches wherever they do business.

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