ch.15 Flashcards
A product must be?
accessible to the
target market at an affordable price
Getting the product to the target market Can be a?
costly process
Forging an aggressive and reliable channel of distribution
The most critical and challenging task facing the
international marketer
consumer and industrial products eventually go
through a distribution process
1-Physical handling and distribution of goods
2-Passage of ownership
3-Buying and selling negotiations between producers and middlemen 4-Buying and selling negotiations between middlemen and
customers
Each country market has a distribution structure
1-Goods pass from producer to user
Within this structure are a variety of middlemen whose customary
functions, activities, and services Reflect Existing competition,
market characteristics, tradition, and economic development
In an import-oriented or traditional distribution
structure:
1-Importer controls a fixed supply of goods
2-Marketing system develops around the philosophy of selling a
limited supply of goods at high prices to a small number of affluent
customers
Import-Oriented
Distribution Structure?
1-Demand exceeds supply
2-The customer seeks the supply from a limited
number of middlemen
3-Distribution systems are local
4-Few countries fit the import-oriented model
The Japanese system has four distinguishing features:
1.A structure dominated by many small middlemen
dealing with many small retailers
2.Channel control by manufacturers
3.A business philosophy shaped by a unique culture
4. Laws that protect the foundation of the system
Retail Distribution Patterns?
- Size patterns
- Direct marketing
- Resistance to change
alternative middle men choices?
options range from assuming the entire distribution activity to defeding on intermediaries for distribution of the product
Seller must exert influence over two sets of
channels?
1-One in the HOME COUNTRY
2-One in the foreign-market (HOST COUNTRY)
- Agent middlemen?
represent the principal
rather than themselves and work on commission
bases
- Merchant middlemen?
take title to the goods
and buy and sell on their own account, so they
tend to be less controller than Agents
home country middle men?
domestic middle men, provide marketing service from a domestic base and find foreign markets for products for local manufacturers
government affiliated middlemen
marketrs must deal with government in every country