International Marketing Channels

1
International Marketing Channels

• Chapter 14

2
Channel of Division Structure

• Distribution Process
• Distribution Structure
• Import-Oriented Distribution

3
Japanese Distribution Structure

• High Density of Middlemen
• Channel Control
• Business Philosophy
• Large-Scale Retail Store Law
• Large-Scale Retail Store Location Act
• Changes in the System

4
Trends

• New Markets
• Margins
• Delivery
• Technology

5
Distribution Patterns

• General Patterns
• Middlemen services
• Line breadth
• Costs and margins
• Channel length
• Nonexistent channels
• Blocked channels
• Stocking
• Power and competition

6
Distribution Patterns

• Retail Patterns
• Size patterns
• Direct marketing
• Resistance to change

7
Alternative Middlemen Choices

• First step Clarify Objectives and Policies
• Second step Select Intermediaries
• Agent middlemen v. merchant middlemen
• Home-country middlemen
• Foreign-country middlemen
• Government-affiliated middlemen

8
Home-Country Middlemen

• Manufacturers Retail Stores
• Global Retailers
• Export Management Companies
• Trading Companies
• U.S. Export Trading Companies
• Complementary Marketers

9
Home-Country Middlemen

• Manufacturers Export Agent
• Home-Country Brokers
• Buying Offices
• Selling Groups
• Webb-Pomerene Export Associations
• Foreign Sales Corporations
• Export Merchants
• Export Jobbers

10
Foreign-Country Middlemen

• Manufacturers Representatives
• Distributors
• Foreign-Country Brokers
• Managing Agents
• Dealers
• Import Jobbers

11
Channel Choice Factors

• Identify Specific Target Markets within and
  across Companies
• Specify MKT Goals in terms of Volume Market
  Share, and Profit Margin Requirements
• Specify Financial and Personnel Commitments to
  the Development of International Distribution
• Identify Control, Length of Channels, Terms of
  Sale, and Channel Ownership

12
Six Factors of Channel Decision

• Cost
• Capital Requirements
• Control
• Coverage
• Character
• Continuity

13
Middlemen Management

• Locating
• Selecting
• Motivating
• Terminating
• Controlling

14
Internet

• How can it help?
• Advantages

• Issues
• Culture
• Adaptation
• Local context
• Payment
• Delivery
• Promotion