Matakuliah : J0474 International Marketing
Tahun
: 2009
International Marketing Channels
Chapter 17
Learning Outcome
• Channel of Distribution Structures.
• Distribution Patterns
• Alternative Middleman Choices.
• Factors Affecting Choice of Channels.
• Locating, Selecting, and Motivating Channel
Members.
Bina Nusantara University
3
Channel of Distribution Structures
Import-Oriented Distribution Structure
Each country market has a distribution structure through which goods
pass from producer to user.
Within this structure are a variety of middlemen whose customary functions,
activities, and services reflect exiting competition, market characteristic,
tradition and economic development
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.
Bina Nusantara University
4
Channel of Distribution Structures
Japanese Distribution Structure
A structure dominated by many small middlemen
dealing with many small retailers,
2. Channel control by manufacturers
3 . A business philosophy shaped by a unique culture
4. Laws that protect the foundation of the systemthe small retailer.
Bina Nusantara University
5
Channel of Distribution Structures
Trends : from traditional to modern channel structures
Door to door selling
hypermarkets
Catalog selling
Multinational
marketers
Bina Nusantara University
Virtual supermarket
E-commerce
FedEx/UPS
6
Distribution Patterns
General Patterns
Middlemen
services
Line breadth
Nonexistent
channels
Channel
length
Costs and
margin
Bina Nusantara University
Blocked
channels
Power and
competition
stocking
7
Distribution Patterns
Retail Patterns
Size Patterns
Bina Nusantara University
Direct
marketing
Resistance to
change
8
Alternative Middleman Choices
Domestic
producer
or marketer
sells to or
through
Open distribution
via domestic
wholesale
middlemen
Foreign
consumer
Exporter
Importer
Foreign
agent or
merchant
wholesalers
Foreign
retailer
Export management
company or
company sales force
Bina Nusantara University
9
Alternative Middleman Choices
Home-Country Middlemen
Manufacturing’
Retail stores
Home-Country
brokers
Bina Nusantara University
Global
retailers
Buying
Offices
Export
Management
Companies
Selling Groups
Trading
Companies
Webb- Pomerene
Export
Associations
Complementary
marketers
Foreign
Sales
Corporation
Manufacturer’s
Export agent
Export
Merchants
10
Alternative Middleman Choices
Foreign-Country Middlemen
Foreign-Country
Brokers
Manufacturer’s
Representatives
Distributors
Managing
Agents
And
Compradors
Bina Nusantara University
Dealers
Import
Jobbers,
Wholesalers,
Retailers
11
Factors Affecting Choice of Channels
1. Identify specific target markets within and across country.
2. Specify marketing goals in terms of volume, market,
Share, and profit margin requirements.
3. Specify financial and personnel commitments to the
Development of international distribution..
4. Identify control, length of channels, terms of sale, and
Channel ownership.
Bina Nusantara University
12
Factors Affecting Choice of Channels
Channel of Distribution Strategy
(the six-C)
1.
2.
3.
4.
5.
6.
Bina Nusantara University
Cost
Capital Requirements
Control
Coverage
Character
Continuity
13
Locating, Selecting, and
Motivating Channel Members.
Locating Middlemen
Selecting Middlemen
Terminating Middlemen
Bina Nusantara University
Motivating Middlemen
Controlling Middlemen
14
Summary
• The international marketer has a broad range of alternatives for
developing an economical, efficient, high-volume international
distribution system.
• Although international middlemen have become more numerous,
more reliable, and more sophisticated within the past decade,
traditional channels are being challenged by internet, which is
rapidly becoming an important alternative channel to many
market segments. Such growth and development offer an ever
wider of possibilities for entering foreign markets.
Bina Nusantara University
15