Final answer:
German auto exporters controlling their distributing agencies to sell products to franchised dealers in the U.S. are practicing direct market representation, allowing them to maintain strict control and consistency in their sales strategies. (option A)
Step-by-step explanation:
The reliance of German auto exporters on distributing agencies that are both owned and controlled by the automakers reflects a strategy known as direct market representation. This approach involves the manufacturer maintaining a direct and proprietary relationship with the distribution channels responsible for selling their products. Unlike independent representation, where third-party intermediaries operate autonomously, or intermediary manufacturer's export agent (MEA), where agents facilitate exports on behalf of the manufacturer, direct market representation signifies a more hands-on approach.
By directly owning and controlling the distributing agencies, the German auto exporters have a higher degree of influence over the entire distribution process. This allows for more effective coordination, brand alignment, and streamlined communication between the manufacturer and the franchised dealers in the United States. This model often provides manufacturers with greater control over branding, pricing, and overall market strategy. It can be a strategic choice when the manufacturer seeks to maintain a strong and consistent brand image in the foreign market while ensuring a cohesive and controlled distribution network.