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    Im 12

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    Vickesh Malkani
    This chapter discusses channels of distribution for exporting goods internationally. It covers direct and indirect channels, types of intermediaries for each channel including distributors and agents. The chapter also discusses how to develop effective channel strategies by considering length, width and number of channels. Key determinants of channel choices are also summarized such as legal requirements, product characteristics and controlling relationships with intermediaries. Representation agreements and terminating agents are also addressed. The chapter concludes with discussions of gray markets and strategies to deal with them.

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    Im 12

    Uploaded by

    Vickesh Malkani
    58 views17 pages
    This chapter discusses channels of distribution for exporting goods internationally. It covers direct and indirect channels, types of intermediaries for each channel including distributors and agents. The chapter also discusses how to develop effective channel strategies by considering length, width and number of channels. Key determinants of channel choices are also summarized such as legal requirements, product characteristics and controlling relationships with intermediaries. Representation agreements and terminating agents are also addressed. The chapter concludes with discussions of gray markets and strategies to deal with them.

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    IM 12

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    This chapter discusses channels of distribution for exporting goods internationally. It covers direct and indirect channels, types of intermediaries for each channel including distributors and agents. The chapter also discusses how to develop effective channel strategies by considering length, width and number of channels. Key determinants of channel choices are also summarized such as legal requirements, product characteristics and controlling relationships with intermediaries. Representation agreements and terminating agents are also addressed. The chapter concludes with discussions of gray markets and strategies to deal with them.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    58 views17 pages

    Im 12

    Uploaded by

    Vickesh Malkani
    This chapter discusses channels of distribution for exporting goods internationally. It covers direct and indirect channels, types of intermediaries for each channel including distributors and agents. The chapter also discusses how to develop effective channel strategies by considering length, width and number of channels. Key determinants of channel choices are also summarized such as legal requirements, product characteristics and controlling relationships with intermediaries. Representation agreements and terminating agents are also addressed. The chapter concludes with discussions of gray markets and strategies to deal with them.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    of 17

    Chapter 12

    Channels of
    Distribution
    Chapter Outline

     Direct and Indirect Selling Channels


     Types of Intermediaries: Direct Channel
     Types of Intermediaries: Indirect Channel
     Channel Development
     Channel Adaptation
     Channel Decisions
    Chapter Outline
     Determinants of Channel Types
    - Legal Requirements
    - Product Image
    - Product Characteristics
    - Middlemen's Loyalty and Conflict
    - Local Customs
    - Power and Coercion
    - Control
    Chapter Outline

     Distribution in Japan
     Selection of Channel Members
     Representation Agreement and Termination
     Black Market
     Gray Market
     Distribution of Services
    Direct & Indirect
    Selling Channels

     INDIRECT SELLING CHANNELS


    - selling through home-country intermediaries
    - simple and inexpensive
    - lack of marketing control
    Direct & Indirect
    Selling Channels

     DIRECT SELLING CHANNELS


    - direct contact with overseas intermediaries or
    consumers
    - requiring more time and cost
    - better control
    Agent vs. Merchant

     Taking possession vs. taking title (ownership)


     Compensation: profit/loss vs.
    fee/commission
     Employee vs. independent contractor
    Agent

     may or may not take possession


     never taking title
     compensation: commission
     more difficult to terminate relationships
    Merchant

     may or may not take possession


     always taking title
     compensation: profit/loss
     easier to terminate relationships
    Types of Intermediaries:
    Direct Channel

     Foreign Distributor
     Foreign Retailer
     State-Controlled Trading Company
     End User
    Types of Intermediaries:
    Indirect Channel

     Export Broker
     Manufacturer's Export Agent or Sales
    Representative
     Export Management Company (EMC)
     Cooperative Exporter
     Purchasing/Buying Agent
     Country-Controlled Buying Agent
    Types of Intermediaries:
    Indirect Channel

     Resident Buyer
     Export Merchant
     Export Drop Shipper
     Export Distributor
     Trading Company
    Channel Decisions

     Channel length
    – Number of times a product changes hands among
    intermediaries
     Channel width
    – Number of middlemen at a particular point in the
    channel
     Number of channels
    – Single channel vs. dual/multiple channels
    Determinants of Channel Types

     Legal Requirements
     Product Image
     Product Characteristics
     Middlemen's Loyalty and Conflict
     Local Customs
     Power and Coercion
     Control
    Representation Agreement and
    Termination

     paying attention to agency termination laws


     having agreements in writing
     avoiding evergreen contract
    Gray Market

     Causes
    – Price differential
     Legal Dimension
    – Protecting independent U.S. trademark owner
     Ethical Dimension
     Product Quality
    Gray Marketing: Manufacturers’
    Strategies

     Identifying and punishing offenders


     Educating consumers
     Standardized worldwide price
     Multiple brands

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