Final answer:
Direct representation in international markets allows for direct control over marketing strategies and provides an opportunity to interact closely with customers. This method helps companies keep consistent branding and respond effectively to market demands, which is vital in the face of increased global competition and consumer awareness due to reduced trade barriers and improved telecommunications.
Step-by-step explanation:
The two major advantages to using direct representation for distributing a product in the target market country include control over the marketing strategy and direct communication with customers. With direct representation, companies can ensure that their branding and marketing strategies are consistent across all markets, which helps in developing a strong and cohesive brand image. Direct interaction with customers also allows for better understanding of the market needs, quick response to customer feedback, and the fostering of stronger customer relationships.
Direct representation can be a pivotal factor in international markets, especially considering the vast changes in global trade. Reductions in tariffs, quotas, and other trade barriers, as well as the advancement in transportation and communication media, have heightened people's awareness of global product availability. This exposure to a variety of products can escalate competition, pressuring domestic businesses to adapt and innovate to maintain market share. Despite the competition, international trade brings numerous benefits such as access to economies of scale and a wider range of products, which can be advantageous for both producers and consumers. Businesses can increase profits by reaching larger markets, while consumers enjoy better or less expensive products, overall enhancing a nation's economic welfare. Furthermore, direct representation can prevent miscommunications that historically occurred when sales staff would alter terms and pricing for their own benefit, as was seen with traveling salesmen in the past. Ensuring the delivery of a consistent product is crucial for protecting and elevating a brand's national reputation.