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

1. International Distribution
By Anubhav Singh

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

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 channel of
distribution and covering 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
.

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.

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.

6. Marketing middlemen
 Export merchants
 Export/trading houses
 Trading companies
 Export drop shipper
 Agents/brokers

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

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.

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

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.

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

12. International
Retailing

13. International Retailing Defined
“ All the activities involved in selling products and services to
final international consumers for their personal consumption.”
 “Retail internationalization is the management of retail operations
in market which are different from other in their regulation,
economic development, social conditions, cultural environment and
retail structures.”
 Transferring retail operations, concept, management expertise &
buying function across national borders.

14. Factors Affecting International Retailing
Expansion of Retail
Operations To
Foreign market.
Transfer Of Retail
Concepts.
Internationalization
Of Management
Expertise
Employing
Advance
Technology.

15. Issues In International Retailing
International
Retailing
Legislation
& Regulation
Taxation &
Cross Border
Shopping
Variations In
Retail Practices
(Consumers
Perspective)
Variations In
Retail Practices
(Sales people And
Management)