International Marketing Channels.pptx

International marketing channels are the different ways in which a company can distribute its products and services to customers in different countries. The main purpose of international marketing channels is to enable companies to reach customers across the globe while managing costs and risks associated with international trade.

There are several types of international channels, including direct and indirect channels. Direct channels involve selling products or services directly to customers through e-commerce or physical stores, while indirect channels involve using intermediaries such as distributors, wholesalers, or agents.

The choice of international marketing channels usually depends on several factors, such as the product type, market structure, and customers’ preferences. Companies must also consider the cultural, legal, and political differences across countries to ensure compliance with international trade regulations.

Overall, effective international marketing channels can help companies build sustainable relationships with customers in different countries. By identifying the best channels, businesses can achieve growth and profitability while reaching a broader market.

1. international marketing channel 1

2. Definition Distribution Channel A  distribution channel  is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers , retailers , distributors and even the internet . Process Of Distribution Distribution is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries. 2

3. Process Of Distribution  3

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 Indirect Exporting 4

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. International Marketing Middlemen Co-operative organisations 5

6. Marketing middlemen Export Merchants Export/Trading houses Trading Companies Export Drop Shipper Agents/Brokers 6

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. Piggyback Marketing Exporting Combinations 7

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. 8

9. Foreign Intermediaries ? Foreign Intermediaries are Middleman or International Market Intermediaries who act as channel members in the product distribution channel. They facilitate the sales process buy linking buyers with sellers. Foreign Sales Representatives: Foreign Sales Agent Foreign Stocking and Non-Stocking Agents State Controlled Trading Companies 9

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.  10

11. Factors Influencing Channel Selection Product characteristics Market and customer characteristics Middlemen characteristic Company characteristic and objectives Competitors characteristics Environmental characteristics 11

12. International channel of distribution alternatives 12

13. CURRENT DISTRIBUTION TRENDS 13

14. Summary The international channel is affected by the method of exporting. Direct exporting and indirect exporting are the two ways of exporting Some important foreign intermediaries are: Importers Distributors Wholesalers Retailers multiple channels government departments state buying organizations joint ventures and licenses. Logistics is a factor which affects the competitiveness of a firm. 14

15. THANK YOU 15