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Distribution Channels in International Marketing: Contents
Distribution Channels in International Marketing: Contents
Distribution Channels in International Marketing: Contents
Marketing
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In this article we will discuss about:- 1. Meaning and Definitions of International Distribution
Channels 2. Types of Distribution Channels 3. Export Distribution Channels 4. Different
Approaches to Export Channel Strategy 5. Level of Distribution 6. Direct vs Indirect Distribution
System.
Contents:
1. Meaning and Definitions of International Distribution Channels
2. Types of Distribution Channels
3. Export Distribution Channels
4. Different Approaches to Export Channel Strategy
5. Level of Distribution
6. Direct vs Indirect Distribution System
In the case of Indian exporter, pull strategy will not suit because of limited availability of foreign
exchange. Gravity approach cannot be said to be the best because involvement of exporter to some
extent is necessary whereas the strategy suggests quite a passive view. Thus, in Indian context it is
better to adopt push strategy. The exporter should establish his own channel of distribution, manage
and control it effectively through proper planning and cooperation with the distribution channel
members.
5. Level of Distribution:
The exporter may decide to sell either direct to importer or to an importer wholesaler, distributor,
super-markets, and chain of stores or shopping malls or speciality stores. Which of these should
exporter choose will depend on the nature of his product, the size of the market environment of the
country, distribution cost and his own financial resources?
Smaller companies may sell only to an importer. Recently, a new type of distribution system has
emerged in certain foreign markets. They are designated as manufacturer-importers. For example,
in the USA there are a large number of units manufacturing and selling leather garments.
These units, essentially because of economies of scale, subcontract part of their business in small
lots to manufacturer-exporters in developing countries. Selling to the manufacturer-importers solves
the problem of internal distribution so far as the exporters are concerned, as it is handled by them.