marketing is a process

1. International MarketingInternational Marketing
ChannelsChannels

2. Channel of Division StructureChannel of Division Structure
• Distribution ProcessDistribution Process
• Distribution StructureDistribution Structure
• Import-Oriented DistributionImport-Oriented Distribution

3. Japanese Distribution StructureJapanese Distribution Structure
• High Density of MiddlemenHigh Density of Middlemen
• Channel ControlChannel Control
• Business PhilosophyBusiness Philosophy
• Large-Scale Retail Store LawLarge-Scale Retail Store Law
– Large-Scale Retail Store Location ActLarge-Scale Retail Store Location Act
• Changes in the SystemChanges in the System

4. TrendsTrends
• New MarketsNew Markets
• MarginsMargins
• DeliveryDelivery
• TechnologyTechnology

5. Distribution PatternsDistribution Patterns
• General PatternsGeneral Patterns
– Middlemen servicesMiddlemen services
– Line breadthLine breadth
– Costs and marginsCosts and margins
– Channel lengthChannel length
– Nonexistent channelsNonexistent channels
– Blocked channelsBlocked channels
– StockingStocking
– Power and competitionPower and competition

6. Distribution PatternsDistribution Patterns
• Retail PatternsRetail Patterns
– Size patternsSize patterns
– Direct marketingDirect marketing
– Resistance to changeResistance to change

7. Alternative Middlemen ChoicesAlternative Middlemen Choices
• First step: Clarify Objectives and PoliciesFirst step: Clarify Objectives and Policies
• Second step: Select IntermediariesSecond step: Select Intermediaries
– Agent middlemen v. merchant middlemenAgent middlemen v. merchant middlemen
– Home-country middlemenHome-country middlemen
– Foreign-country middlemenForeign-country middlemen
– Government-affiliated middlemenGovernment-affiliated middlemen

8. Home-Country MiddlemenHome-Country Middlemen
• Manufacturer’s Retail StoresManufacturer’s Retail Stores
• Global RetailersGlobal Retailers
• Export Management CompaniesExport Management Companies
• Trading CompaniesTrading Companies
• U.S. Export Trading CompaniesU.S. Export Trading Companies
• Complementary MarketersComplementary Marketers

9. Home-Country MiddlemenHome-Country Middlemen
• Manufacturer’s Export AgentManufacturer’s Export Agent
• Home-Country BrokersHome-Country Brokers
• Buying OfficesBuying Offices
• Selling GroupsSelling Groups
• Webb-Pomerene Export AssociationsWebb-Pomerene Export Associations
• Foreign Sales CorporationsForeign Sales Corporations
• Export MerchantsExport Merchants
• Export JobbersExport Jobbers

10. Foreign-Country MiddlemenForeign-Country Middlemen
• Manufacturer’s RepresentativesManufacturer’s Representatives
• DistributorsDistributors
• Foreign-Country BrokersForeign-Country Brokers
• Managing AgentsManaging Agents
• DealersDealers
• Import JobbersImport Jobbers

11. Channel Choice FactorsChannel Choice Factors
• Identify Specific Target Markets within andIdentify Specific Target Markets within and
across Companiesacross Companies
• Specify MKT Goals in terms of Volume MarketSpecify MKT Goals in terms of Volume Market
Share, and Profit Margin RequirementsShare, and Profit Margin Requirements
• Specify Financial and Personnel CommitmentsSpecify Financial and Personnel Commitments
to the Development of International Distributionto the Development of International Distribution
• Identify Control, Length of Channels, Terms ofIdentify Control, Length of Channels, Terms of
Sale, and Channel OwnershipSale, and Channel Ownership

12. Six Factors of Channel DecisionSix Factors of Channel Decision
• CostCost
• Capital RequirementsCapital Requirements
• ControlControl
• CoverageCoverage
• CharacterCharacter
• ContinuityContinuity

13. Middlemen ManagementMiddlemen Management
• LocatingLocating
• SelectingSelecting
• MotivatingMotivating
• TerminatingTerminating
• ControllingControlling

14. InternetInternet
• How can it help?How can it help?
• AdvantagesAdvantages
• IssuesIssues
– CultureCulture
– AdaptationAdaptation
– Local contextLocal context
– PaymentPayment
– DeliveryDelivery
– PromotionPromotion