Lecture 7 Flashcards
What is an international marketing channel?
The system used to deliver goods from the producer to the end user across global markets.
What are the four major channel utilities?
Place, time, form, and information.
What are the two main types of channel involvement?
Direct involvement (owning channels) and indirect involvement (agents, distributors).
What customer characteristics affect channel strategy?
Customer size, income, geographic distribution, shopping habits.
What product characteristics affect channel choice?
Perishability, service requirements, bulkiness, packaging, and complexity.
What are key characteristics of effective middlemen?
Push potential, contract terms, customer compatibility, geographic coverage, financial strength, managerial competence.
What motivates intermediaries?
Financial rewards, psychological rewards, company support, corporate recognition.
How do agents differ from distributors?
Agents earn commission and don’t own stock; distributors buy and resell, provide after-sales support.
What are disadvantages of using distributors?
May carry competing products, neglect new brands, or be too small for national reach.
Where can you find agents or distributors?
Trade associations, chambers of commerce, banks, embassies, magazines.
What is an export merchant?
A domestic merchant operating in a foreign market who buys from many suppliers and manages marketing.
What environmental factors affect channel strategy?
Economic conditions, culture, language, government regulations.
What is physical distribution and logistics?
Activities like order processing, inventory management, warehousing, and transportation.
What drives channel innovation?
Economic development, local demographics, government policies, competitive pressures.
What are current global distribution trends?
Large retail, digital platforms, automation, outsourcing, strategic alliances.
What strategies are used for new market entry?
Use existing channels, build new channels, or exit the market.
What challenges exist in developing countries for channel strategy?
Parallel imports, image and pricing issues, complicated repairs, litigation risks.
