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DIRECT AND INDIRECTEXPORTING

Direct exporting:

The company sells to a customer in another county.This is the most common approach employed by companiestaking their international step because the risks of loss can be

minimized.

In direct exporting:

usually means that the company sells to buyer in the home

country who in turn exports the product. Customer includelarge retailers such as wal mart or sears, wholesaler supplyhouses, trading companies, and other that buy to supplycustomers abroad

ex: Americas largest exporter

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Licensing

International Joint venture

Franchising

Wholly owned subsidairies

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International Channel of distribution

The distribution process includes the

physical handling and distribution ofgoods, the passage of ownership (title),and the buying and selling negotiationsbetween producers and middlemen and

between middlemen and customers

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Distribution patterns

General patterns

Retail patterns

home country middle men

Foreign country middle men

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General patterns

Middlemen Services Product Line Breadth

Costs and Margins

Channel Length Nonexistent Channels

Blocked Channels

Stocking Power and Competition

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Retail patterns

Retail Size Patterns

Direct Marketing

Resistance to Change

Alternative Middleman Choices

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Home country middlemen

Manufacturers retail stores Global retailers

Export management companies

Trading companies

Export trading companies

Complementary marketers Manufacturers export agent

Home country brokers

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Buying offices

Selling groups

WebbPormerene export associations

Foreign sales corporation

Export merchants

Export jobbers

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Foreign country middlemen

Manufacturers representatives

Distributors

Foreign country brokers

Managing agents and compradors

Dealers

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Factors affecting choice of channels

Cost Capital requirements

Control

Coverage

Character

continuity

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Ware housing

Warehousing constitutes an importantsegment of the physical distributionmanagement .

The need for warehousing in a corporateunit may arise for the following reasons

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Necessity of warehousing forexport marketing

Break bulk

Re assembly

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Seasonality

Variation in demand

Speculation

Product conditioning

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Air transportation

Air transportation provide only world widetransportation network which make theessential for global business tourism .it

play vital role in facilitating economicgrowth particularly in developing country.

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Advantages air transporation

Low inventory carrying costs Decreased capital costs of goods in transit less packing lowers cost and reduces chargeable

weight related surface transport costs are reduced

the loss due to rough handling and pilferage is reducedto the minimum

breakage is negligible deterioration is avoided obsolescence is eliminated insurance premium is reduced. Costs related to administration ,ordering etc are

minimized.