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International MarketingInternational Marketing
ChannelsChannels
Channel of Division StructureChannel of Division Structure
• Distribution ProcessDistribution Process
• Distribution StructureDistribution Structure
• Import-Oriented DistributionImport-Oriented Distribution
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
TrendsTrends
• New MarketsNew Markets
• MarginsMargins
• DeliveryDelivery
• TechnologyTechnology
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
Distribution PatternsDistribution Patterns
• Retail PatternsRetail Patterns
– Size patternsSize patterns
– Direct marketingDirect marketing
– Resistance to changeResistance to change
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
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
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
Foreign-Country MiddlemenForeign-Country Middlemen
• Manufacturer’s RepresentativesManufacturer’s Representatives
• DistributorsDistributors
• Foreign-Country BrokersForeign-Country Brokers
• Managing AgentsManaging Agents
• DealersDealers
• Import JobbersImport Jobbers
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
Six Factors of Channel DecisionSix Factors of Channel Decision
• CostCost
• Capital RequirementsCapital Requirements
• ControlControl
• CoverageCoverage
• CharacterCharacter
• ContinuityContinuity
Middlemen ManagementMiddlemen Management
• LocatingLocating
• SelectingSelecting
• MotivatingMotivating
• TerminatingTerminating
• ControllingControlling
InternetInternet
• How can it help?How can it help?
• AdvantagesAdvantages
• IssuesIssues
– CultureCulture
– AdaptationAdaptation
– Local contextLocal context
– PaymentPayment
– DeliveryDelivery
– PromotionPromotion

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International marketingchannels

  • 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