international marketing – place

8/2/2019 International marketing place

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International

marketingplace.Distribution strategy.


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Distribution

strategy.Distribution is the course that goods

take between production and the

final consumer.


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Distribution.

Players : intermediaries wholesalers or distributors retailers storage facilities warehousing transportation rail trucks barge or plane insurance services between the nations .

Freight forwarders who see the details of internationaltransportation exporters & importers internationaltrading- agents brokers merchants middlemen agents middlemen resident buyers exports managersprovides distribution services for firms under contract

buyer for exports

barter or counter trade. Sales force door to door sales persons individual

merchants CUSTOMER.


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Distribution.

Direct and indirect selling channels.

Direct selling :

Foreign distributors sub agents or subdistributors contractual relationship timeplace credit and payments for manufacturerwarehousing for products parts accessories .

foreign retailers consumer products mailing

catalogs broachers literatures personalselling direct mail.


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Distribution.

State controlled trading co. utility andtelecommunication for import and exportedproducts.

End users : - for costly industrial products dutyclearance import regulations.

Advertisement publication to attract consumers .

Time News week Business week takes orderprocessing facilities.


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Distribution.

Indirect channel :

1.Domestic agents .who look after theinterests of manufacturers.

2. domestic merchants.


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Export broker.

Is to bring buyers and sellers together forwhich he is paid the fee may operate

under its own name or that of themanufacturer he does not take the title ofthe goods. He can negotiate the mostfavorable terms for the manufacturer.


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Manufacturers export agent.

Or sales representative : is not employee ofmanufacturer more freedom than themanufacturer's own sales person he can select

when where and how to work with in theassign territory working methods includepresenting product , literature ,and samples topotential buyers exclusive or non exclusive base works on commission continuous andpermanent relationshipon contract.


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Export agents.

Advantages .

Widespread geographically market.

Too thin market. New product and uncertain demand.

Inexperience of international markets.

To simplify business activities.


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Export management co.

Or combination of export manager CEM.

Manages under contract the entire exportprogrammed of a manufacturer .

Grater freedom and authority . Provides promotion shipping and documentation Handles all not a portion of its principals product. Responsible for the international responsibilities.

Solicits business in the name of manufacturer. advantageous to small and medium size firms

that take expertise and resources.


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Co op exporter .

Is a manufacturer with its own export organizationthat is retain by other manufacturer to sell in sameor all foreign markets. This intermediary is also amanufacturer, it function like any other exportagents, arrangements are export distributercommission representatives broker arrangeshipping take possession of the goods but notthe title e.g. GE, SINGER , AND BORGWARNER.

Long tern relationship low risk for the principalentry mode to international market.


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WebbPomerene association Two or more firms of same industry join together to market

their product overseas.

Purchase / buying agent . Export agents represents seller

or manufacturer represents the foreign buyer.

Preference and requirements best price work for fee orcommission agents buyer for export export commissionhouse export buying agent export confirming house.

Relationship not continue as operates on order basis nosteady volume no reduction in financial risk.


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Country controlled buying agent.

Same as purchasing / buying agent but foreigngovernments agency or quasi government firmlocate and purchase goods for its country mayhave representatives when the purchasing needarises.

Resident buyer : independent agent located nearthe highly centralized production industry steady

and continuous relationship in terms of priceservice style and quality follow up actiondelivery is made as promised.


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Export merchant.

Are independent business that are in businessto make a profit rather than to receive a fee they take title possession and other services

of the goods

usually they handle staple,undifferentiated , or un important goods theypacked and marked to specification resell inown name through their contacts the

merchants completes all the formalities andarrangements.


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Export drop shipper.

Known as desk jobber or cable merchantsdrop ship a product directly to the

overseas customers place order withmanufacturer to deliver the product directlyto the foreign buyer the manufacturercollect payments from the drop shipper

who in tern is paid the foreign buyer.


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Export distributors.

Deals with manufacturer on a continuousbase authorized and granted marketing

rights to represent the manufacturer andsell in same or all foreign marketshandles all financial risks in foreign tradeexport and foreign distributors differs in

location one in manufactures country andother in foreign country.


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Trading companies.

The buyers and sellers in foreign marketshave no knowledge of each other or how to

contact each other ? trading co. havecame in to existence to fill this void.

They operates in low developed, developedand own home markets.


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Channel development.

Based on the following environmentalcharacteristics.

1. political stability.

2. market opportunity. 3. economic development and performance

4. cultural unity.

5. legal barriers / restrictions . 6. Physiographic barriers.

7. geo cultural distance.


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Channel distribution .

Classified as

Hot high on first four characteristics.

Low low on last three. Cold exactly opposite.

Moderate medium on all.

India : market opportunity is hot, butpolitical stability is cold.


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Modes of transportation.

Land air - and water.

Packaging industrial and consumer. Problems weight breakages moisture and

temperature pilferage. Containerization large box of steel aluminum

plywood and glass reinforced plastics. sizematerial construction .

Size 8heightx8widthx10length ---40 for standardsize and shape obtained from carriers or privateparties.

international marketing – place

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