Chapter 14. International Marketing Channels. McGraw-Hill/Irwin. © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Learning Objectives. 1. The variety of distribution channels and how they affect cost and efficiency in marketing.
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International Marketing Channels
© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
1. The variety of distribution channels and how they affect cost and efficiency in marketing
2. The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods
3. How distribution patterns affect the various aspects of international marketing
4. The growing importance of e-commerce as a distribution alternative
5. The functions, advantages, and disadvantages of various kinds of middlemen
6. The importance of middlemen to a product’s success and the importance of selecting and maintaining middlemen
Note: the Japanese distribution system is changing because of the globalization of markets (more competition, more access, lower prices, etc)
It has four distinguishing features:
The foreign marketer or producer sells to or through
Domestic producer or marketer sells to or through
Foreign agent or merchant wholesalers
Open distribution via domestic wholesale middlemen
Export management company or company sales force
Cost Cutting Using B2B Internet Middlemen (Cont.)
2. Adaptation (Translation)
3. Local contact (Buying server space and create mirror sites creating virtual offices in foreign countries.)
4. Payment (Credit cards)
6. Promotion (Promoting on the web means creating a “retail store” on-line with the same promotional activities (press releases, search engine registration, local news groups and forums))