Upload
asari-tharuka
View
875
Download
0
Embed Size (px)
Citation preview
International Marketing Channel
TC/IS/2011/MS/144International Marketing
MMT-000Department of Business and Management studiesFaculty of Communication and Business studies
Trincomalee Campus –Eastern University
Channel of distribution
What is meaning of Distribution Channel ?
Process Of DistributionPhysical Handling
and distribution
Passage of
Ownership
Buying & selling negotiation
Between Producer
&middleman
Buying & selling negotiation
Between Middleman &
Customer
Channels Of Distribution Structure
Import – Oriented Distribution Structure
Japanese Distribution Structure
Traditional to modern channel Structure
Import-Oriented Distribution Structure
Developing countries depend on import manufactured goods.
Importer controls a fixed supply of good
Demand exceeds supply
Limited supply create high price
The customer seeks the supply from a limited number of middlemen
Limited supply
Lot of
middleman
High price
HighDemand
Import-Oriented Distribution Structure
There in china ,but they aren’t Peking ducks. The birds are for sale in Guangzhou’s free market, the first farmers’ market to be opened in china after the cultural revolution. This market was the place
where free enterprise found its rebirth. Every kind of food is for sale here.
Japanese Distribution Structure
Four distinguishing features
High density of middlemenChannel controlBusiness philosophyLarge Scale retail store lawChanges in structure
High Density of Middlemen
Groceries and bakers94.7%
Japan
U.SSupermarket, discount
food stores
59.1%
35.7%
Small stores of retail food sales
1 2 3
Small stores of retail food sales
High Density of Middlemen
Channel Control
Inventory Financing
Cumulative rebates
Merchandise returns
Promotional Support
Business Philosophy
Emphasizes loyalty, harmony, and friendship
Supports long-term dealer-supplier relationships
The cost of Japanese consumer goods are among the highest in the world
Japanese law gives the small retailer enormous advantage over the development of larger stores
Distribution PatternsDistribution patterns are always evolving and new patterns are developing and marketing channels are not the same throughout the world.
1. Middlemen Services 2. Product Line Breadth 3. Costs and Margins 4. Channel Length5. Nonexistent Channels 6. Blocked Channels 7. Stocking8. Power and Competition
Retail Patterns
Retail Size Patterns Direct Marketing
Resistance to Change
Alternative Middleman Choices
Government middleman
International Channel of Distribution alternatives
Home country middleman
Foreign country middleman
Factor affecting choice of channel
1. Cost2. Capital Requirements3. Control4. C overage5. C haracter6. C ontinuity e
Cost
Thank You