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International marketing channel
 

International marketing channel

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    International marketing channel International marketing channel Presentation Transcript

    • www.a2zmba.com
    • International Channels
      • To make goods available to end customers, a firm employs market intermediaries
      www.a2zmba.com
    • International Channels
      • Smooth flow of goods has to be ensured from the place of manufacture to the place of consumption
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
      • Types of International Distribution Channels
      • Indirect Channels
      • Has to deal with domestic agent/ without any dealing with foreign based firm
      • Less investment no marketing experience required Low cost opportunity,
      • Limited feedback, commissions have to be paid ,little insight into the market , no feedback
      www.a2zmba.com International Channels
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels www.a2zmba.com Indirect Channel Agents Merchant Intermediaries Broker, Comm agent Importer Buying agent Country Controlled buying agent Buying offices Merchant exporter Interntionl trading cos zaibatsus Export trading house Home market
    • International Channels
      • Direct Marketing approaches such as through telephone, door to door works better in affluent markets
      • Amway and Avon are succesful in these countries
      www.a2zmba.com
    • International Channels www.a2zmba.com Direct Channel E channel Agents or merchant intermediaries Broker Commission agent(works fo Exporter and importer) Manfrs agent Sales rep of exporter Distributor Retailer Wholesaler buy from distributors
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • Channels in the USA and European countries tend to be shorter
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • International franchising is gaining popularity
      • Mcdonalds, Pizza Hut, Benetton etc
      • Growth in Private Labels
      • 38% in Switzerland, 32 % on UK 15% in US
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
      • Screening, Selecting agreement motivating, terminating middlemen
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
      • 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
      www.a2zmba.com
    • International Channels
      • Ocean transportation preferred over air transportation for bulk ,heavy cargo.
      • Air accounts for only 1% by volume of total tansportation
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • 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
      www.a2zmba.com
    • International Channels
      • Direct channels
      www.a2zmba.com
      • Direct channels
      www.a2zmba.com