talking about International Distribution Strategies in International Marketing

1. Managing International
Distribution

2. • Distribution
 Physically moving products and establishing intermediary relationships to
support such movement.
• Physical Distribution (Logistics)
 The activities of distribution involved in the physical relocation of products.
• Channel of Distribution
 The system of intermediaries (business relationships) established to guide the
movement of a product.
Distribution Terms

3. The Role of Distribution Activities in Marketing
• Functions of Intermediaries
 Perform the marketing function better.
 Provide efficient distribution of the product.
 Breaking bulk – sell to customers in smaller quantities.
 Assorting – bringing together similar lines of goods.
 Shifting risks.
 Merchant middlemen - take title to the goods distributed.
 Agents/brokers - distribute goods only.

4. Direct channel
Indirect channel
Dual distribution
Types of Distribution Channels

5. Alternative Channels of Distribution

6. Direct Marketing
Direct marketing is a channel-agnostic form of advertising which
allows businesses and nonprofit organizations to communicate
straight to the customer

7. Structuring a Distribution Channel
• Important Factors in Building a Distribution Channel
 Costs associated with establishing a direct channel distribution
 Coverage is increased through the use of indirect channels of
distribution.
 Control is enhanced using a direct distribution channel.

8. Strategy Options for Global Firms
• Foreign Licensing
 Allowing a company in another country to purchase the right to manufacture
and sell a company’s products in international markets
 Licensee
• The company buying the licensing rights
 Licensor
• The company selling the licensing rights
 Royalties
• Fees paid by the licensee to the licensor
for each unit produced under a licensing contract

9. Challenges to Global Business
• Political Risk
 The potential for political forces in a country to negatively affect the
performance of businesses operating within
• Economic Risk
 The probability that a government will mismanage its economy and
thereby change the business environment in ways that hinder the
performance of firms operating there.
• Exchange rates—the value of one country’s currency relative to that
of another country.

10. International Supply Chain Management

11. Aspects of Supply Chain Management

12. Manav Agarwal
manavs87@gmail.com
9823962733