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International Marketing Channels- Cateora
Identify specific target markets within
and across countries
Specify marketing goals in terms of
volume, market share and profit margin
Specify financial and personnel
commitments to the development of
international distribution
If marketing goals are to be achieved, a
product must be accesible to the target
market at affordable price
Factors to consider prior
to channel selection
Main idea
Getting the product to the target
market can be a costly process.
Distribution structure is key
Making the right channel decision is crucial
Identify control, lenght of channels,
terms of sale and channel ownership
fixed supply of goods
capital requirements and
cash-flow patterns
associated with a type of
selling at high prices
the capital or investment cost of
developing the channel
Import-oriented distribu-
small number of customers
tion structure
Kinds of channel Cost
demand exceeds supplythe importer-wholesaler traditionally
performs most marketing functions
the continuing cost of maintaining it
Channel of
structure dominated by many small midllemen
dealing with many small retailers
the channel members´
behavior is the result of
interactions among the
cultural environments and
marketing process
inventory financing
channel control by manufacturers thru
Japanese distribution
structure- high density of
cumulative rebates
merchandise returns
promotional support
business philosophy shaped by unique culture
laws that protect the foundation of the
system: the small retailer
Walmart and deregulation are causing some
change in Japanese dist. prcatices
direct marketing
New trendsDistribution
door-to-door selling
Multinational marketers are innovating
no frontiers
size pattern (large retailer chains)
resistance to change
Retail Patterns
Manufacturer´s retail store
Distribution patterns
Global retailers
Exports management company or
company sales force
important middleman for firms with
small int´l volume