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International Marketing Channels

International Marketing Channels. Chapter 14. Channel of Division Structure. Distribution Process Distribution Structure Import-Oriented Distribution. Japanese Distribution Structure. High Density of Middlemen Channel Control Business Philosophy Large-Scale Retail Store Law

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International Marketing Channels

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  1. International Marketing Channels Chapter 14

  2. Channel of Division Structure • Distribution Process • Distribution Structure • Import-Oriented Distribution

  3. Japanese Distribution Structure • High Density of Middlemen • Channel Control • Business Philosophy • Large-Scale Retail Store Law • Large-Scale Retail Store Location Act • Changes in the System

  4. Trends • New Markets • Margins • Delivery • Technology

  5. Distribution Patterns • General Patterns • Middlemen services • Line breadth • Costs and margins • Channel length • Nonexistent channels • Blocked channels • Stocking • Power and competition

  6. Distribution Patterns • Retail Patterns • Size patterns • Direct marketing • Resistance to change

  7. Alternative Middlemen Choices • First step: Clarify Objectives and Policies • Second step: Select Intermediaries • Agent middlemen v. merchant middlemen • Home-country middlemen • Foreign-country middlemen • Government-affiliated middlemen

  8. Home-Country Middlemen • Manufacturer’s Retail Stores • Global Retailers • Export Management Companies • Trading Companies • U.S. Export Trading Companies • Complementary Marketers

  9. Home-Country Middlemen • Manufacturer’s Export Agent • Home-Country Brokers • Buying Offices • Selling Groups • Webb-Pomerene Export Associations • Foreign Sales Corporations • Export Merchants • Export Jobbers

  10. Foreign-Country Middlemen • Manufacturer’s Representatives • Distributors • Foreign-Country Brokers • Managing Agents • Dealers • Import Jobbers

  11. Channel Choice Factors • Identify Specific Target Markets within and across Companies • Specify MKT Goals in terms of Volume Market Share, and Profit Margin Requirements • Specify Financial and Personnel Commitments to the Development of International Distribution • Identify Control, Length of Channels, Terms of Sale, and Channel Ownership

  12. Six Factors of Channel Decision • Cost • Capital Requirements • Control • Coverage • Character • Continuity

  13. Middlemen Management • Locating • Selecting • Motivating • Terminating • Controlling

  14. How can it help? Advantages Issues Culture Adaptation Local context Payment Delivery Promotion Internet

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