APPOINTING OVERSEAS AGENTS

            Selling through the overseas agents is an effective strategy for export marketing, as these agents serve as a source of market intelligence, regularly feeding the exporter with the latest trends in demand, fashion, taste and price in the overseas market.  Being a man on the spot, the agent is in a position to render his advice to exporter on new methods and strategy for pushing up sales of your products.  He also provides you support in the matter of transportation, reservation of accommodation, appointment with the government departments as and when required by you.  In some countries it is compulsory under their law to sell through local agents only.  It is, therefore, essential that you should carefully select overseas agent.  A check list for careful selection of agent is given as under:

1.                  Size of the agent’s company.

2.                  Date of foundation of the agent’s company.

3.                  Company’s ownership and control.

4.                  Company’s capital, funds available and liabilities.

5.                  Name, age and experience of the company’s senior executives.

6.                  Number, age and experience of the company’s salesmen.

7.                  Other agencies that the company holds, including those of competing products and turn-over of each.

8.                  Length of company’s association with other principals.

9.                  New agencies that the company obtained or lost during the past year.

10.              Company’s total annual sales and the trends in its sales in recent years.

11.              Company’s sales coverage, overall and by area.

12.              Number of sales calls per month and per salesmen by company staff.

13.              Any major obstacles expected in the company’s sales growth.

14.              Agent’s capability to provide sales promotion and advertising services.

15.              Agent’s transport facilities and warehousing capacity.

16.              Agent’s rate of commission; payment terms required.

17.              References on the agent from banks, trade association and major buyers.

Some sources of information on agents are:

1.                  Government Departments

2.                  Trade Association, both in India and Abroad

3.                  Chambers of Commerce

4.                  Banks

5.                  Independent Consultants

6.                  Export Promotion Councils, Commodity Boards etc.

7.                  Advertisement Abroad.

8.                  Your own friends, associates etc.