Global Trade Management Managing International Channels of Distribution World Trade Practices Chapter 18 Customer Expectations Unique role of representatives Good products-acceptable service levels Good communication Fairness- no discrimination Value oriented prices 2 WTP-Chris Schrage Motivating Channels Exclusivity Game Moving to non-exclusive agreements 3 WTP-Chris Schrage College of Business, University of Northern Iowa 1 Global Trade Management Meeting foreign buyers Visiting representatives – – – – Key account visits Blind sales calls Media visits Training events International trade shows International agent/distributor meetings 4 WTP-Chris Schrage Termination challenges Contract Nonlegal issues – Inventory – Public relations – Replacing with new distributor 5 WTP-Chris Schrage Direct Marketing vs. Direct Selling Direct marketing – Don’t make sale – Create environment to generate interest leading to sales – Support function of foreign distributors/agents – Less infrastructure or staff needed – Only justified if market is economically viable – Helps manage distribution network 6 WTP-Chris Schrage College of Business, University of Northern Iowa 2 Global Trade Management Budweiser Utilize several models – – – – Contract brewing Licensing AB ownership Joint venture Brewer Wholesaler 3 tier system for sales Retailer Customer 7 WTP-Chris Schrage College of Business, University of Northern Iowa 3