Ex.4.Read the following statements. Say whether they are true, if not correct them.

1. If you’ve got a good product, the customer won’t worry much about the price.

2. The best sales approach is to sell directly to certain stores.

3. Using buying offices you can reach all your potential customers.

4. To open a sales office you don’t need to have much capital.

5. An agent deals in distributing products in the market.

6. Born salesmen are usually extremely successful.

7. A sole distributor has exclusive rights.

8. An exclusive dealer usually works on commission.

9. You can’t give a discount to your sole distributor off list prices on all purchases.

Read and translate the following text.

The prices of raw materials and products change every day, so offers are usually only firm for about twenty-four hours. The prices of manufactured goods, on the other hand, remain unchanged, as a rule, for weeks or months, so buyers can place orders on the basis of a manufacturer’s printed price list.

There are many ways of selling manufactured goods to foreign buyers. A manufacturer may sell direct to wholesalers and maintain his own travelling representatives, or set up his own offices or companies abroad. Alternatively he may sell to an export merchanting house; in this case there is little financial risk for the producer, since the merchant acts as a principal and pays for the goods himself. A third possibility is for the manufacturer to appoint foreign agents, who will work on commission and may be stockists.

Answer the questions:

1. Why are some offers only firm for about 24 hours?

2. What prices remain unchanged for weeks or months?

3. How can a manufacturer sell his goods to foreign buyers?

4. In what case is there little financial risk for the producer?

5. What payment do foreign agents get for their work?

Role plays

1. Discuss with your colleagues different methods of selling your goods abroad. Listen to their ideas and choose the best.

2. You have applied for the position of an agent distributing goods of a large company. Now you are having a job interview.

Marketing problems

1. Western companies had problems selling refrigerators in Japan until they changed the design to make them quieter.

2. In Saudi Arabia newspaper adverts showed an attractive hostess serving champagne to happy passengers. A lot of passengers cancelled their flight reservations.

3. A soap powder advertisement had a picture of dirty clothes on the left, a box of soap in the middle and clean clothes on the right. The soap didn’t sell well in the Middle East.

4. An airline company called itself Emu, after the Australian bird. But Australians didn’t want to use the airline.

Answer the questions on the topic:

1.What is marketing? What does it include?

2.What sales approaches do you know? What are the advantages and disadvantages of them?

3.What should be done to develop a sales network?

4.What are the duties of an agent? Does he get a salary?

5.Why is it so important to find the right person to be your agent?

6.What kinds of agents do you know?

Unit 8

An Agency Contract

PART 1

DIALOGUE 1

Mark Boland is head of an Australian import agency. He is discussing an agency contract with an American, Clint Marsden. Marsden is President of a company producing photocopying machines.

MARSDEN Before drawing up this agreement, I’d like to go over the contract terms once more, Mark.

BOLAND I've no objection to that. Even when you take notes as we did, it's easy to miss something out.

MARSDEN As I understand it, you'll be our agent for the whole of Australia. And you'll be handling our complete range of machines.

BOLAND Agreed.

MARSDEN Now the next point was … length of contract. It'll be three years, won't it?

BOLAND Yes, and, er, renegotiable, provided we're both happy with the arrangement.

MARSDEN I'm confident it'll work out all right. Let's see, what was the next point we discussed? Ah yes, whether you wanted a sole and exclusive agency.

BOLAND Uh-huh.

MARSDEN You don't want that, do you? You'll be selling competing lines along with our product.

BOLAND Yes. We agreed it won't really matter, as long as my sales force do the job properly.

MARSDEN I'm not worried about that. Your people are very profes­sional, I know. What next? Commission? Well, we fixed it at fifteen per cent (15%) on total sales, I believe.

boland Yes, but may I remind you that I'll be a del credere agent. I receive an extra five per cent (5%) commission for that.

marsden Ah yes, you’re bearing the risk if customers don't pay. I’d forgotten that.

boland I'm also responsible for invoicing customers and for credit control. I'll be sending you copies of all invoices for your records.

marsden We must have those because we'll be sending you a state­ment every three months. Your commission will be based on it. We'll settle up by transferring the money to your account in Sydney. The Bank of Australia and New Zealand. Right?

boland Mm, Victoria Street branch.

marsden The rest's fairly simple. Advertising, sales promotion — that'll be shared between us. Warehousing costs — we'll pay those, but you'll bear all office expenses. Last, but not least, after-sales service. That's your baby.

boland I promise you, Clint, we'll provide fast reliable servicing.

marsden Remember too, you've promised to keep adequate sup­plies of spare parts and accessories for the machines.

boland That's no problem, provided you get the parts to me when I ask for them.

marsden You can count on us for that.