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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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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

home country middlemen
Home-Country Middlemen

Nike European Distribution Center, Laakdal, Belgium

Nike Sport Store, St. Petersburg, Russia

foreign country middlemen
Foreign-Country Middlemen

Tokyo Tsukigi Fish Market

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