Method of exporting affects international channel. Exporting can be done in two ways namely direct exporting and indirect exporting. Important foreign intermediaries in the export business include importers, retailers, distributors, wholesalers, government departments, joint ventures and licenses. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

1. Chapter 11
International Distribution
International Marketing
Chapter-11 International Decision

2. Objectives
What is international distribution system
What is indirect exporting
What is direct export
What are the types of foreign
intermediaries
Why the distribution system in the market
is influenced by the business environment
What is international logistics
International Marketing
Chapter-11 International Decision

3. Introduction
Place, i.e., placing the product, is one of
the four P’s of marketing and it refers to
the distribution of the product covering
channels of distribution and physical
distribution.
The path traced in the direct or indirect
transfer of title to a product as it moves
from a producer to ultimate consumers or
industrial users. International Marketing
Chapter-11 International Decision

4. International Channel System
The international distribution system
consists of two subsystems, namely, the
domestic system and the foreign
system.
There are broadly two ways of
exporting, namely, direct exporting and
indirect exporting.
International Marketing
Chapter-11 International Decision

5. Indirect Exporting
The indirect method is more popular
with firms which are just beginning
their exporting activities and with those
whose export business is not
considerable. Two alternative channels
for indirect exporting.
1. International marketing middlemen
2. Co-operative organisations.
International Marketing
Chapter-11 International Decision

6. Marketing middlemen
Export merchants
Export/trading houses
Trading companies
Export drop shipper
Agents/brokers
International Marketing
Chapter-11 International Decision

7. Co-operative organisations
The co-operative exporting organisations,
which represents a cross between indirect
and direct export, carries on exporting
activities on behalf of several producers,
and is partly under the administrative
control of the manufacturers.
1. Piggyback marketing
2. Exporting combinations
International Marketing
Chapter-11 International Decision

8. Direct Export
As the name indicates, direct export
refers to the sale in the foreign market
directly by the manufacturer.
Firms with considerable export business
usually resort to direct exporting.
International Marketing
Chapter-11 International Decision

9. Types Of Foreign
Intermediaries
Importers
Distributors
Wholesalers
Retailers
Multiple channels
Government departments
State buying organisations
Joint-ventures and licensees/franchisees
International Marketing
Chapter-11 International Decision

10. Marketing Environment And
Internal Distribution
The nature of the distribution system in
a market is generally influenced by the
relevant business environment.
A particular distribution channel best
suited for a product in one market may
be inappropriate in another market.
Within-country channels of distribution
very considerably from country to
country for consumer goods.
International Marketing
Chapter-11 International Decision

11. Factors Influencing Channel
Selection
1. Product characteristics
2. Market and customer characteristics
3. Middlemen characteristic
4. Company characteristic and objectives
5. Competitors characteristics
6. Environmental characteristics
International Marketing
Chapter-11 International Decision

12. International Logistics
International logistics defined as ‘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.
International Marketing
Chapter-11 International Decision

13. Components Of Logistics
Management
Fixed facilities location
Transportation
Inventory management
Order processing
Materials handling and warehousing
International Marketing
Chapter-11 International Decision

14. Summary
The international channel is affected by the
method of exporting.
Direct exporting and indirect exporting are
the two ways of exporting
Some important foreign intermediaries are;
importers, distributors, wholesalers, retailers,
multiple channels, government departments,
state buying organizations, joint ventures
and licenses.
Logistics is a factor which affects the
competitiveness of a firm.
International Marketing
Chapter-11 International Decision