GMS 400 Study Guide - Final Guide: Test Market, Offshoring, Performance Bond
16 May 2017
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Determine what has made the product popular domestically (sources of competitive. Exporting: selling product from home country production into a foreign market. Direct exporting: the company sells directly to foreign buyers (end-users, distributors, retailers) Indirect exporting: selling through home country agencies e. g. trading houses: two types: export merchant buys the product from you in canada, export agent sells the product overseas for a commission, but does not buy it. Distributor: a foreign merchant, usually with exclusive sales rights in a country or territory: sells to retailers, advertising should be local, service must be in place before the first product is sold. Sales office (part of your firm) in a large market. Better knowledge of market culture and language. Trading house already has contacts and distribution. Good way to test market cheaply and quickly. Loss of control of product: may hurt reputation. No direct access to customers for feed-back.
