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  • Placement Basics: International Distribution

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    Rutuja Navghare
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    International distribution involves connecting manufacturers to consumers in foreign markets. There are important criteria to consider like economic differences, geographic distance, and communication challenges. Distribution channels are affected by the exporting method, which can be direct or indirect. Direct exporting involves higher company involvement, while indirect uses third parties like export management companies or trading companies to facilitate international sales.

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    Placement Basics

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    International distribution involves connecting manufacturers to consumers in foreign markets. There are important criteria to consider like economic differences, geographic distance, and communication challenges. Distribution channels are affected by the exporting method, which can be direct or indirect. Direct exporting involves higher company involvement, while indirect uses third parties like export management companies or trading companies to facilitate international sales.

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    2 views6 pages

    Placement Basics: International Distribution

    Uploaded by

    Rutuja Navghare
    International distribution involves connecting manufacturers to consumers in foreign markets. There are important criteria to consider like economic differences, geographic distance, and communication challenges. Distribution channels are affected by the exporting method, which can be direct or indirect. Direct exporting involves higher company involvement, while indirect uses third parties like export management companies or trading companies to facilitate international sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Placement Basics

    International Distribution
    • Is defined as a ‘system composed of marketing organizations that
    connect the manufacturer to the final users or consumers of the
    company’s products in a foreign (non-domestic) market.
    • There are certain important criterions that need to be considered
    before an exporter ventures into a foreign market. They are as
    follows:-
     Differences in economic structure:
     Geographic distance
     Relative difficulty in communication and travel
    Export Distribution
    Factory

    Port of Export

    Port of Import

    Storage / sale / Use


    Distribution Channels
    Nature of channel system is affected by the method
    of exporting.

    Exporting
    Most companies that do not want to incur high level of investment
    cost and the consequent risk prefer the exporting.

    Exporting is of 2 type-

    1)Indirect exporting

    2)Direct exporting
    Indirect exporting
    1)Domestic purchasing

    2)Piggyback operations

    3)Export management company

    4)Trading companies
    Direct exporting
    • In direct export, the level of involvement of a
    company is much higher than in indirect export.
    Producer

    Industrial
    importer Distributor Govt. Dept. State Buyers
    buying org.

    Customer
    Wholesaler Retailer

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