INTERNATIONAL MIDDLEMEN

INTERNATIONAL MIDDLEMEN
The channel process includes all activities beginning with the manufacturer and ending with the final consumer. A marketers options range from assuming all the distribution activities or depending independent or semiindependent middlemen for some of these activities. Middlemen, therefore, can be agents who s. work on a commission, arrange the sale, but do not take possession of the goods at any point of time. Merchant Middlemen, on the other hand, actually take possession of the manufacturers goods prior to the sale to the consumer, and so tend to be less controllable than agents.

Middlemen are therefore no clear cut, precise, clearly defined entities. Middlemen functions in terms of home country and host country parameters are described here:

INTERNATIONAL MIDDLEMEN
Home Country Middlemen
Export Management Companies Trading Companies (Trading Houses) Complimentary Marketers (GE has been distributing merchandise complimenting their own manufactured products. This adds to the distribution strength of the company itself. s. Manufacturers Export Agents are individual agent middlemen or small middleman firms providing selling services to manufacturers. Brokers perform a host of low cost special services in international sales Buying Offices generally provide short term buying operations in International Trade Selling Groups are various groups of manufacturers cooperating to collective sell their wares abroad Merchant Exporters are essentially domestic merchants operating internationally Morazi Agents are unique agents specializing in shady or difficult transactions

INTERNATIONAL MIDDLEMEN
Host Country Middlemen
Manufacturers Representatives are Agent Middlemen taking responsibility in a Geographic locations Distributors are International Merchant Middlemen taking possession of goods prior to selling to the customer s. Foreign Country Brokers are similar to Export Brokers of the home country, and are common in commodity and food products exports/imports Managing Agents are Exclusive agents for home country parents, normally on a cost plus basis, and perform certain specific functions Dealers are the last step in the channel to the consumer. In international distribution, they have a long term relationship with the manufacturer and provide pre-sale and after-sale service to the consumer Import Jobbers purchase goods from the manufacturer and sell to wholesalers and distributors

INTERNATIONAL MIDDLEMEN
Searching for and working with Middlemen
Locating Middlemen: Middlemen should be evaluated based on the following characteristics: Productivity s. Financial Strength Management stability Reputation

INTERNATIONAL MIDDLEMEN
Searching for and working with Middlemen
Locating Middlemen: Middlemen should be evaluated based on the following characteristics: Productivity Financial Strength s. Management stability Reputation Selecting Middlemen: Finding middlemen is the easy part; selecting the right one is more critical. They should be properly screened, a firm agreement fair to both sides should be drawn up Motivating Middlemen: Once the Middleman has been selected, a promotional program must be started to maintain a high level of interest in the manufacturers products. Middlemen respond to psychological rewards, so their efforts must be constantly recognized, to develop a close rapport between the Middleman and the Company. The adage all men help their friends must be remembered

INTERNATIONAL MIDDLEMEN
Searching for and working with Middlemen
Locating Middlemen: Middlemen should be evaluated based on the following characteristics: Productivity Financial Strength Management stability s. Reputation Selecting Middlemen: Finding middlemen is the easy part; selecting the right one is more critical. They should be properly screened, a firm agreement fair to both sides should be drawn up Motivating Middlemen: Once the Middleman has been selected, a promotional program must be started to maintain a high level of interest in the manufacturers products. Middlemen respond to psychological rewards, so their efforts must be constantly recognized, to develop a close rapport between the Middleman and the Company. The adage all men help their friends must be remembered Terminating Middlemen: When they do not perform, they should be terminated, swiftly and without pain. This should be clearly permitted in the agreement!

INTERNATIONAL SALES MANAGEMENT

Personnel representing a company in the Global Marketplace provide the most direct contact with customers. Therefore, their competence is of vital importance to a companys success. Personnel requirements in a foreign country can be filled with persons from the home country (expatriates), the host country, or a third country. Each choice demands dealing with cultural attributes to ensure qualified and effective market representation. The tasks of building, training, compensating and motivating an international marketing group generate unique problems at every stage of management and development.

INTERNATIONAL SALES MANAGEMENT

Source of Marketing and Sales Personnel
The number of Marketing Management personnel from the Home Country assigned to foreign countries varies according to the size of the operation and the availability of qualified local persons. Initially, a Host Country operation is heavily populated by expatriate specialists, with the number gradually dwindling as the pool of trained experienced locals grows. The largest personnel requirement abroad for most companies is the sales force, drawn from expatriate, local and third country sources, depending on the qualifications and availability of personnel and the companys needs.

INTERNATIONAL SALES MANAGEMENT

Source of Marketing and Sales Personnel
EXPATRIATES on overseas assignments are on the decline the world over as global trade volume increases and as more companies use locals to fill their marketing needs. When products are highly technical and where selling requires an extensive background of applications, the expatriate sales force is the best choice. In addition to the built in technical and sales knowledge and training, they sometimes add to the prestige of the product line in the eyes of the host country customers, simply by being expatriates! The major disadvantages of the expatriate sales force are high cost, cultural and legal barriers, and the limited number of persons of high caliber willing to live abroad for an extended period of time, what with growing children, todays working spouses, and the chance of being superseded in the professional race in the home country

INTERNATIONAL SALES MANAGEMENT

Source of Marketing and Sales Personnel
Local Nationals are slowly gaining preference over the traditional approach of using expatriate managers and sales persons in the host country. At the sales level they empathize with customers, thereby easily eliminating legal and cultural barriers faced by expatriates. More knowledgeable in the host countrys business structure, they are able to lead the company through the maze of unfamiliar distribution systems. A very major advantage of the use of local nationals is their relatively lower operating expense because of their lower cost of living, as well as the costs otherwise incurred by the company in keeping personnel away from their natural home. Third Country Specialists are fast developing with rapid internationalization of business. These persons are Global Executives who spend their entire working life in foreign assignments, and whose road to professional success is through the knowledge gained from such assignments. As one personnel director commented, talent in the Global Corporation ought to flow to opportunity irrespective of the passport.

INTERNATIONAL SALES MANAGEMENT

Recruiting International Personnel
Effective recruitment and selection of personnel for international positions depend on precise definition of what is expected of these people. In additional to formal job definition with long term objectives as well as current needs, the criteria given should include special requirement indigenous to various countries. Traits that are prime requisites for expatriates and third country personnel include maturity, emotional stability, and considerable breadth of knowledge on many subjects both on and off the job. The effective international marketer on a foreign assignment has to have a favourable outlook to the country of his assignment in particular, and to international assignments in general.

INTERNATIONAL SALES MANAGEMENT

Re-entry from a foreign assignment can be made easier by following the steps mentioned below, as has been seen by several successful Multinational Companies:
Commit to reassigning expatriates to meaningful assignments on completion of the overseas assignment Create a Mentor Program, involving senior executives who monitor company activities and keep expatriates informed by acting as liaison advisors between them and Head Office personnel Guarantee a specific job position to the person right at the beginning of his overseas assignment Keep the expatriate fully informed about the Headquarters by periodic briefing and home country visits Prepare the expatriate and his family for the repatriation once the date of return is set, thus easing the shock of the return!

ADVERTISING GLOBALLY
Advertising and Promotion are the basic activities of the marketing mix for an international company. Once the product is developed to meet the target market needs and is properly priced and distributed, the target customers must be made aware of the value and availability of the product. A well designed promotion mix includes advertising, sales promotion, personal selling and public relations, all of which, properly coordinated, are mutually reinforcing and focussed on the common objective of selling the product.

Framework of International Promotion

The basic framework and concepts of international promotion is the same wherever applied. The following steps are involved: Study the target market(s) Determine the extent of worldwide standardization Determine the Promotional mix Develop the most effective message(s) Select the effective media Establish the necessary controls to assist in monitoring and achieving worldwide marketing objectives

ADVERTISING GLOBALLY
Pattern Advertising Plan Globally, Act Locally
As discussed earlier, the product is more than a physical item. It is a bundle of satisfaction received by the buyer. Therefore, while the product may be required to perform a commonly perceived function, it performs this function according to the cultural needs of the consumer. Case in point: Use of a camera in the USA, in Germany

ADVERTISING GLOBALLY
Pattern Advertising Plan Globally, Act Locally
As discussed earlier, the product is more than a physical item. It is a bundle of satisfaction received by the buyer. Therefore, while the product may be required to perform a commonly perceived function, it performs this function according to the cultural needs of the consumer. Case in point: Case in point: Use of a camera in the USA, in Germany, in Africa Use of a bicycle

ADVERTISING GLOBALLY
Pattern Advertising Plan Globally, Act Locally
As discussed earlier, the product is more than a physical item. It is a bundle of satisfaction received by the buyer. Therefore, while the product may be required to perform a commonly perceived function, it performs this function according to the cultural needs of the consumer. Case in point: Case in point: Use of a camera in the USA, in Germany, in Africa Use of a bicycle in India, in the USA

ADVERTISING GLOBALLY
Pattern Advertising Plan Globally, Act Locally
As discussed earlier, the product is more than a physical item. It is a bundle of satisfaction received by the buyer. Therefore, while the product may be required to perform a commonly perceived function, it performs this function according to the cultural needs of the consumer. Case in point: Case in point: Use of a camera in the USA, in Germany, in Africa Use of a bicycle in India, in the USA, in Africa

Therefore, Global Advertisement must think Globally, but act Locally!

ADVERTISING GLOBALLY
Global Advertising World Brands
Global brands are generally the result of a company electing to be guided by a global strategy. Coca Cola, Pepsi Cola, Colgate Palmolive, Surf Excel, Tata Trucks and Bata Shoes are all examples of Global Brands. Lack of commonality between markets should not deter a marketer from being guided by a Global Strategy, seeking standardization wherever possible, and modifying where needed.

Global Market Segmentation and Promotion Strategy

In going global with its promotional strategy, a company should first identify market segments within country boundaries or across countries. These market segments should be homogenous having customers with similar needs, wants and purchasing behaviour patterns. Customers in a market segment may come from different cultural backgrounds, but have similar needs. The two options available to the global market brand are then to aim at a mass, high volume market seeking a competitive product, as say the Nirma detergent brand, or go for a niche segment which, though small, is a profitable market in the aggregate, like Nina Ricci perfume.

ADVERTISING GLOBALLY
Limitations to Creative Challenges
The growing intensity of international competition, coupled with the complexity of marketing multinationally, demands the international advertisement function at the highest creative level. To complicate matters, boundaries are placed by legal, tax, language, cultural, media, production and cost limitations, as mentioned below: Legal and Tax considerations vary from country to country Language is the greatest barrier to effective international marketing communication and can easily cause major slips in messages conveyed Cultural diversity between countries, and even within the country (as in India or China) poses a great challenge in the methods of conveying the advertisement message Limitations in varying degrees imposed by different countries to the creative strategy cramp the role of advertising internationally The cost of advertising programs enhances the value of creativity in advertising matter and methods