To understand the importance of International Distribution
To study the International channel system
To analyze the marketing environment and International
Distribution
To study the factors influencing channel selection
To understand the International logistics system
To know the various components of the Logistics system
3. Definition
A Distribution channel may be defined as the path traced in the
direct or indirect transfer of title to a product as it moves from
the producer to the ultimate consumers or Industrial users.
Some members perform only the channel function but there are
several other organizationswhich are involved in the storage,
transportation, sales, contract, service, sorting and
repacking.
4. International Channel System Producer Merchant AgentImporter
Agent/ Broker Wholesaler/Distributor Retailer Retailer Consumer/
Institutional user Home MarketMiddlemen Foreign Market Middlemen
5.
There are broadly two ways of exporting
Direct Exporting when goods are exported directly to the
foreign customer/agent/distributor
Ex Export department of the company, overseas sales branches,
travelling salesmen, selling to foreign distributors or agents
6.
Indirect Exporting when goods are sold to a domestic middlemen
who in turn sells it to the foreign customer/agent
/distributor
Ex Marketing middlemen Export merchants, Export/Trading houses,
Trading companies, Export drop shipper, Agents or Brokers.
Co-operative Organizations piggy back marketing, Exporting
Combinations
7. Types of foreign Intermediaries
Importers
Distributors
Wholesalers
Retailers
Multiple Channels
Government
State Buying Organizations
Joint Ventures/ Licensing/ Franchisees
8. Factors influencing channel selection
Product characteristics
Market and Customer characteristics
Middlemen Characteristics
Company Characteristics and Objectives
Competitors characteristics
Environmental Characteristics
9. International Logistics
International Logistics is the designing and managing of a
system that contracts the flow of materials into, through, and out
of the International corporation. It encompasses the total movement
concept by covering the entire range of operations concerned with
product movement.
10. Components of a logistics system
Fixed Facilities location
Transportation
Inventory Management
Order processing
MaterialsHandling and Warehousing
11. Conclusion
Distribution is the PLACE P in the Marketing Mix.
It refers to the distribution of the market covering channels
of distribution and physical distribution.
The International Distribution channels include both Direct and
Indirect Exporting
Logistics includes five interdependent areas such as Fixed
facilities location, Transportation, Inventory Management, Order
processing and Materials Handling and Warehousing
