Internationalmarketingchannelppt

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International Channels
To make goods available to end customers, a firm
employs market intermediaries
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Smooth flow of goods has to be ensured from the place
of manufacture to the place of consumption
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Functions performed by channel
Physical flow of goods Transfer of ownership to customer Realisation of payment and and cash flow from
customer to manufacturer Promotion, feedback
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Types of International Distribution Channels
Indirect Channels Has to deal with domestic agent/ without any dealing with foreign based firm International Channels Less investment no marketing experience required Low cost opportunity, Limited feedback, commissions have to be paid ,little insight into the market , no feedback
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Direct channel
Sellin g of goods directly to market intermediary or
end user in the overseas market Closer relationship, insight into foreign market, control over the export process is greater
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Indirect Channel
Agents Home market
Merchant Intermediaries Merchant exporter Interntionl trading cos zaibatsus Export trading house
Broker, Comm agent Importer Buying agent Country Controlled buying agent Buying offices
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Direct Marketing approaches such as through
telephone, door to door works better in affluent markets Amway and Avon are succesful in these countries
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Direct Channel
E channel
Agents or merchant intermediaries
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Broker Commission agent(works fo Exporter and importer) Manfrs agent Sales rep of exporter Distributor Retailer Wholesaler buy from distributors
Japan\ High Density of middlemen,chain of primary
secondary regional local wholesalers Long term relationship with the intermediaries Law protects small retilers from large retailers MITI approves all large retailers
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Food Sales
Japan small stores 95 % of total food retail stores
account for 57.7 % of food sales In US small stores 69% account for 19.2 percent of food retail in US
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Channels in the USA and European countries tend to
be shorter
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Factors affecting choice of channels
Identify specific target markets Specify marketing goals Specify financial and personal commitments Identify control length of channels terms of sale and
channel ownership
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International franchising is gaining popularity
Mcdonalds, Pizza Hut, Benetton etc Growth in Private Labels 38% in Switzerland, 32 % on UK 15% in US
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Costs involved in developing channels
Capital cost cash flow requirements)and maintenance cost
(margins, amrkup, selling force costs etc) Coca Cola distribution system in India and China Less dependence on local partners and more control by Coca Cola in China Coverage , Continuity problems in Channels
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Screening, Selecting agreement motivating,
terminating middlemen
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Managing Logistics Logistics in International Markets in comples dure to physical distance ,compatibility of logistics systems, nature intermediaries etc Principal Objective is to reach the final customers with the correct quantity, st the desired location, at the right time, in usable condition, in the most cost efficient manner
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Transportation Warehousing storing, consolidation (LCL), breaking
bulk etc Inventory Mangement optimising of costs coping with demand fluctuations Packaging to ensure safe and smooth shipment Information and communication technology
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Pallets for Air Cargo

Containers (20ft,40ftX 8ftx8ft) Containerisation facilitated easy handling,door to door
delivery, lowers warehousing costs, reduces documentation work, reduces pilferage reduces damage in transit
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Ocean transportation preferred over air
transportation for bulk ,heavy cargo. Air accounts for only 1% by volume of total tansportation
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Organised retailing is gaining significance
Global retail sales estimated at $8 trillion Sales of top ten retailers reached $690 trillion in 2004
(Wall mart, Carrfour, Home Depot Metro etc
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Extreme differences in sizes of retailers
All retailers People served per retailer USA 702 395 Japan 1202 106 China 21,188 61 Argenitana 296 127
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Direct channels
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Direct channels
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Internationalmarketingchannelppt

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Copyright:

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Internationalmarketingchannelppt

Uploaded by

Copyright:

Available Formats

www.a2zmba.

employs market intermediaries

of manufacture to the place of consumption

customer to manufacturer Promotion, feedback

Types of International Distribution Channels

Agents Home market

Agents or merchant intermediaries

Screening, Selecting agreement motivating,

Pallets for Air Cargo

(Wall mart, Carrfour, Home Depot Metro etc

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