International marketing channels
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International Marketing Channels. Global Perspective A Single Stick of Doublemint Today – 18 Billion Tomorrow. A product must be made accessible to the target market at an affordable price Getting the product to the target market can be a costly process

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International Marketing Channels

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International marketing channels

International Marketing Channels


Global perspective a single stick of doublemint today 18 billion tomorrow

Global Perspective A Single Stick of Doublemint Today – 18 Billion Tomorrow

  • A product must be made accessible to the target market at an affordable price

  • Getting the product to the target market can be a costly process

  • Forging an aggressive and reliable channel of distribution may be the most critical and challenging task facing the international marketer

  • Competitive advantage will reside with the marketer best able to build the most efficient channel from among the alternatives available


Peking ducks no free enterprise

Peking Ducks – No Free Enterprise

Guangzhou’s Farmers Market


Import oriented distribution structure

Import-Oriented Distribution Structure

  • Demand exceeds supply

  • The customer seeks the supply from a limited number of middlemen

  • Distribution systems are local

  • Few countries fit the import-oriented model today

In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.


Comparison of distribution channels between the united states and japan

Comparison of Distribution Channels between the United States and Japan

  • Insert Exhibit 14.1


Retail structures

Retail Structures

Source: Euromonitor, 2003


Large scale retail store law and its successor

Large-Scale Retail Store Law and Its Successor

  • Daitenho – the Large-Scale Retail Store Law

    • Large stores must have approval from the prefecture government

    • All proposals first judged by the Ministry of International Trade and Industry (MITI)

    • Then, if all local retailers unanimously agreed, the plan was approved

    • Could be a lengthy process

    • Applied to both domestic and foreign companies

  • Replaced by the Large-Scale Retail Store Location Act of June 2000

    • MITI out of the process

    • Relaxed restrictions


Trends from traditional to modern channel structures

Trends: From Traditional to Modern Channel Structures

Russian Home Depot (Super Home) in St. Petersburg


Trends from traditional to modern channel structures1

Trends: From Traditional to Modern Channel Structures

  • European retailers merging with former competitors and other countries to form Europe-wide enterprises

  • Foreign retailers attracted by the high margins and prices

  • The Internet may be the most important trend affecting distribution

  • Covisint

  • GlobalNetXchange

  • E-commerce

  • 7-Eleven competes with FedEx and UPS


Distribution patterns

Distribution Patterns

Mexico vs. Malaysia


Retail patterns

Retail Patterns

Source: Euromonitor, 2003


Alternative middleman choices

Alternative Middleman Choices


Home country middlemen

Home-Country Middlemen

Nike European Distribution Center, Laakdal, Belgium

Nike Sport Store, St. Petersburg, Russia


Home country middlemen1

Home-Country Middlemen


Foreign country middlemen

Foreign-Country Middlemen

Tokyo Tsukigi Fish Market


Foreign country middlemen1

Foreign-Country Middlemen


Factors affecting choice of channels

Factors Affecting Choice of Channels

Stockmann’s Department Store, Helsinki, Finland

Grand Bazaar (Kapali Carsi), Istanbul, Turkey


Locating selecting and motivating channel members

Locating, Selecting, and Motivating Channel Members

  • Locating middlemen

  • Selecting middlemen

    • Screening

    • The agreement

  • Motivating middlemen

  • Terminating middlemen

  • Controlling middlemen


The internet

The Internet

  • E-commerce is used to market:

    • Business-to-business (BSB) services

    • Consumer services

    • Consumer and industrial products

  • E-commerce is more developed in the U.S. than in the rest of the world

  • B2B enables companies to cut costs in three ways:

    • Reduces procurement costs

    • Allows better supply-chain management

    • Makes possible tighter inventory control


Concerns for e vendors

Concerns for e-Vendors

Fedex at Roissy Airport, Paris, France


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