Distribution and logistics mcim

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Distribution and logistics mcim

  1. 1. International Distribution and Logistics
  2. 2. Learning Objectives… <ul><li>To understand the importance of International Distribution </li></ul><ul><li>To study the International channel system </li></ul><ul><li>To analyze the marketing environment and International Distribution </li></ul><ul><li>To study the factors influencing channel selection </li></ul><ul><li>To understand the International logistics system </li></ul><ul><li>To know the various components of the Logistics system </li></ul>
  3. 3. Definition … <ul><li>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”. </li></ul><ul><li>Some members perform only the channel function but there are several other organizations which are involved in the storage, transportation, sales, contract, service, sorting and repacking. </li></ul>
  4. 4. International Channel System Producer Merchant Agent Importer Agent/ Broker Wholesaler/Distributor Retailer Retailer Consumer/ Institutional user Home Market Middlemen Foreign Market Middlemen
  5. 5. <ul><li>There are broadly two ways of exporting – </li></ul><ul><li>Direct Exporting – when goods are exported directly to the foreign customer/agent/distributor </li></ul><ul><li>Ex – Export department of the company, overseas sales branches, travelling salesmen, selling to foreign distributors or agents </li></ul>
  6. 6. <ul><li>Indirect Exporting – when goods are sold to a domestic middlemen who in turn sells it to the foreign customer/agent /distributor </li></ul><ul><li>Ex – Marketing middlemen – Export merchants, Export/Trading houses, Trading companies, Export drop shipper, Agents or Brokers. </li></ul><ul><li>Co-operative Organizations – piggy back marketing, Exporting Combinations </li></ul>
  7. 7. Types of foreign Intermediaries <ul><li>Importers </li></ul><ul><li>Distributors </li></ul><ul><li>Wholesalers </li></ul><ul><li>Retailers </li></ul><ul><li>Multiple Channels </li></ul><ul><li>Government </li></ul><ul><li>State Buying Organizations </li></ul><ul><li>Joint Ventures/ Licensing/ Franchisees </li></ul>
  8. 8. Factors influencing channel selection <ul><li>Product characteristics </li></ul><ul><li>Market and Customer characteristics </li></ul><ul><li>Middlemen Characteristics </li></ul><ul><li>Company Characteristics and Objectives </li></ul><ul><li>Competitor’s characteristics </li></ul><ul><li>Environmental Characteristics </li></ul>
  9. 9. International Logistics <ul><li>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”. </li></ul>
  10. 10. Components of a logistics system <ul><li>Fixed Facilities location </li></ul><ul><li>Transportation </li></ul><ul><li>Inventory Management </li></ul><ul><li>Order processing </li></ul><ul><li>Materials Handling and Warehousing </li></ul>
  11. 11. Conclusion <ul><li>Distribution is the PLACE – P in the Marketing Mix. </li></ul><ul><li>It refers to the distribution of the market covering channels of distribution and physical distribution. </li></ul><ul><li>The International Distribution channels include both Direct and Indirect Exporting </li></ul><ul><li>Logistics includes five interdependent areas such as Fixed facilities location, Transportation, Inventory Management, Order processing and Materials Handling and Warehousing </li></ul>

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