Question

D&D manufactures footballs. The footballs are sold in sport shops around the World. The distribution channels D&D uses are to sell its footballs direct to retailers in some countries and through an in other countries. The Managing Director of D&D wants the company to start selling footballs online but the Managing Director of D&D wants the company to start selling footballs online but the marketing Director thinks there are too many problems with this distribution channel (d) Explain two possible benefits to D&D of selling footballs through agents in other countries.

Answer 1

Answer:

Advantages of using an overseas agent:-

• You avoid the recruitment, training and payroll costs of using your own employees to enter an overseas market.

• An agent should be well placed to identify and exploit opportunities.

• Your agent should already have solid relationships with potential buyers - it might take you some time to build up your own contacts.

• Using an agent allows you to maintain more control over matters such as final price and brand image - compared with the other intermediary option of using a distributor.

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Answer 2

Explanation:

Answer:

Advantages of using an overseas agent:-

You avoid the recruitment, training and payroll costs of using your own employees to enter an overseas market.

An agent should be well placed to identify and exploit opportunities.

Your agent should already have solid relationships with potential buyers - it might take you some time to build up your own contacts.

Using an agent allows you to maintain more control over matters such as final price and brand image - compared with the other intermediary option of using a distributor.