INTERNATIONAL CHANNELS

1
INTERNATIONAL CHANNELS

• Introduction
• Environmental Factors and Behavioral Processes
• Foreign Market Entry
• Motivating International Channel Members
• Summary

2
Introduction

• Incentives to Expand International Involvement
• Extent

3
Environmental Factors Macro Economic Environment

• Inflation
• Recession
• Foreign Currency
• International Economic Blocks

4
Other Environments

• Competitive Environment
• Sociocultural Environment
• Technological Environment
• Legal/ Political Environment
• Behavioral Processes

5
Foreign Market Entry

• Direct Production Involvement Abroad
• Contract Manufacturing
• Licensing
• Assembly
• Joint Venture
• 100 Ownership

6
Foreign Market Entry Contd

• Indirect Export
• Casual
• Trading Companies
• Export Management Companies (EMCs)
• Cooperative (Webb Pemerene) and Piggybacking
• Direct Export
• Foreign Distributors
• Agents
• Overseas Marketing Subsidiary

7
Motivating International Channel Members

• Needs and Problems
• Size
• Finance
• Foreign Currency
• Conventional Market Tendencies
• Cost Structure
• Sensitivity to Political Regime
• Terror

8
Support of International Channel Members

• Adequate Margins
• Territorial Protection
• Advertising Support
• Financial Assistance
• Sales and Service training
• Business Advice
• Market Research
• Missionary Selling

9
Leading Foreign Marketing Channels and Summary

• Need for Cultural Adaptation
• Recommendations
• Not to Rigidly Set Roles and Routines
• Jointly Forming Marketing Strategy
• High Degree of Personal Contact
• An Example of Stern and El-Ansary
• SUMMARY