Lesson 10: Marketing abroad
1 Introduction
1.1 general
• contractual issues involved in the international sale and export of goods and services
1.2 marketing strategies
• target market, potential customers
• sales channel, legal issues
• marketing strategy is implemented, the exporter concludes the necessary contracts
è reviewed on a regular basis, constant evaluation and adjustment is required
1.3 overview sales channels
direct
exporter works directly with a foreign customer who is the end-user
indirect selling
exporter uses an intermediary such as a reseller or a distributor
affiliate/branch office
company exporting products sets up an office and sells the products and services abroad
franchising system
example: McDonald’s
license
the owner gives the products to a licensee to manufacture and sell the products
2 Direct sale
2.1 general
• selling over the counter to a customer, by mail or on a website
• single sales contract
• appropriate where it is not necessary to have a permanent representation in the
country where the products are exported
Lesson 10 1/8
, 2.2 legal aspects
• the contract concluded between the seller and the purchaser is a sales contract
• protects consumers by providing rules such as GTC
3 Reselling
3.1 general
• indirect sales include the selling of products through intermediaries
• from the contractual perspective, there are two possibilities
o the intermediary may resell the products; conclude a contract with the
manufacturer and for the resale of the purchased products; and act as a
reseller or a distributor
o the intermediary can act on behalf of the manufacturer of the products; he
does not conclude the sales contract but merely brings together seller and
purchaser; the sales contract is concluded between the seller and the
purchaser
3.2 resale
3.2.1 resale in general
• the reseller buys products and resells them to his customers
• the reseller (usually) does not modify the products he buys
• the reseller may add a feature to the product and then resell it -> value added
reseller
• easy way to expand the business to new markets
• the risk for the exporter is small, not much investment is needed
• the exporter might lose control over the way his products are sold
3.2.2 legal aspects
• the reseller agreement is a sales contract
• the reseller is an independent contractor
• the reseller is in a position between the manufacturer of the products and his
customers
• important to make sure that both contracts include similar provisions
Lesson 10 2/8
1 Introduction
1.1 general
• contractual issues involved in the international sale and export of goods and services
1.2 marketing strategies
• target market, potential customers
• sales channel, legal issues
• marketing strategy is implemented, the exporter concludes the necessary contracts
è reviewed on a regular basis, constant evaluation and adjustment is required
1.3 overview sales channels
direct
exporter works directly with a foreign customer who is the end-user
indirect selling
exporter uses an intermediary such as a reseller or a distributor
affiliate/branch office
company exporting products sets up an office and sells the products and services abroad
franchising system
example: McDonald’s
license
the owner gives the products to a licensee to manufacture and sell the products
2 Direct sale
2.1 general
• selling over the counter to a customer, by mail or on a website
• single sales contract
• appropriate where it is not necessary to have a permanent representation in the
country where the products are exported
Lesson 10 1/8
, 2.2 legal aspects
• the contract concluded between the seller and the purchaser is a sales contract
• protects consumers by providing rules such as GTC
3 Reselling
3.1 general
• indirect sales include the selling of products through intermediaries
• from the contractual perspective, there are two possibilities
o the intermediary may resell the products; conclude a contract with the
manufacturer and for the resale of the purchased products; and act as a
reseller or a distributor
o the intermediary can act on behalf of the manufacturer of the products; he
does not conclude the sales contract but merely brings together seller and
purchaser; the sales contract is concluded between the seller and the
purchaser
3.2 resale
3.2.1 resale in general
• the reseller buys products and resells them to his customers
• the reseller (usually) does not modify the products he buys
• the reseller may add a feature to the product and then resell it -> value added
reseller
• easy way to expand the business to new markets
• the risk for the exporter is small, not much investment is needed
• the exporter might lose control over the way his products are sold
3.2.2 legal aspects
• the reseller agreement is a sales contract
• the reseller is an independent contractor
• the reseller is in a position between the manufacturer of the products and his
customers
• important to make sure that both contracts include similar provisions
Lesson 10 2/8
