International Marketing 118. 330 Slides

International Distribution

• Critical Considerations for Merchant/Agent
• Availability
• Cost of Service
• Functions Performed
• Extent of Control Desired
• Alternative 1 - Direct -- Own Sales Force

International Distribution

• Alternative 2 - Indirect--Merchant Middleman
• Domestic Merchant Middleman
• Purchase on Own Account
• Minimum Credit Risk
• Handles Functions Outside Domestic Market

International Distribution

• Alternative 2 - (cont.)
• Varieties of Domestic Merchant Middlemen
• Export Merchants
• Export Jobbers
• Export Buyers
• Trading Companies
• Complementary Marketers
• Foreign Merchant Middlemen

International Distribution

• Alternative 2 - (cont.)
• Varieties of Foreign Merchant Middlemen
• Distributors
• Import Jobbers
• Wholesalers and Retailers
• Affiliated Middlemen

International Distribution

• Alternative 3 - Agent Middlemen
• Domestic Agents
• Export Management Companies
• Manufacturer’s Export Agent
• Broker
• Buyer
• Export Commission House

International Distribution

• Alternative 3 - Agent Middlemen
• Foreign Agents
• Broker
• Manufacturer’s Rep
• Factor
• Managing Agent

International Distribution

• General Issues
• Issue of Social Acceptance
• Line Breadth
• Costs and Margins
• Channel Length
• Maintenance of Customer Value
• Channel Existence
• Channel Cost and Control
• Conflict
• Cooperation
• Leadership

Stages of Export Development

• Completely Uninterested Exporter
• Partially Interested Exporter
• Exploring Exporter
• Experimental Exporter
• Small Experienced Exporter
• Large Experienced Exporter