Topic 7, INTERNATIONAL DISTRIBUTION DECISIONS

Question 1

Define ‘omni channel’ systems

Answer 1

Omni channel retailing describes a retailer’s efforts to provide a consistent, coordinated customer experience across all possible customer channels

Question 2

Define ‘multichannel’ systems

Answer 2

Multi-channel distribution involves a business using more than one type of distribution channel.

Question 3

Identify the main external determinants of channel decisions.

Answer 3

External determinants of channel decisions:

• Customer characteristics (size, shopping habits, and usage patterns)
• Nature of product
• Nature of demand / location
• Competition
• Legal regulations

Question 4

Explain the main decisions to be taken by a company regarding distribution channels in a new market.

Answer 4

There exists three type of distribution channel when entering a new market:

1. Intensive distribution (largest number of intermediaries)
2. Selective distribution (select areas and intermediaries)
3. Exclusive distribution (only one intermediary in a market)

Question 5

Identify the main sources of conflict in international distribution channels.

Answer 5

• Mixing direct and indirect sales. …
• Giving partners too much pricing control. …
• Too many partners serving too few customers. …
• Strategic or marketing mis-alignment. …
• Resistance to change.