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Title:

Channels of Distribution

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Chapter Outline Direct and Indirect Selling Channels Types of Intermediaries: Direct Channel ... Distribution in Japan Selection of Channel ... Management Company ... – PowerPoint PPT presentation

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Title: Channels of Distribution


1
Chapter 12
  • Channels of Distribution

2
Chapter Outline
  • Direct and Indirect Selling Channels
  • Types of Intermediaries Direct Channel
  • Types of Intermediaries Indirect Channel
  • Channel Development
  • Channel Adaptation
  • Channel Decisions

3
Chapter Outline
  • Determinants of Channel Types
  • - Legal Requirements
  • - Product Image
  • - Product Characteristics
  • - Middlemen's Loyalty and Conflict
  • - Local Customs
  • - Power and Coercion
  • - Control

4
Chapter Outline
  • Distribution in Japan
  • Selection of Channel Members
  • Representation Agreement and Termination
  • Black Market
  • Gray Market
  • Distribution of Services

5
Direct Indirect Selling Channels
  • INDIRECT SELLING CHANNELS
  • - selling through home-country intermediaries
  • - simple and inexpensive
  • - lack of marketing control

6
Direct Indirect Selling Channels
  • DIRECT SELLING CHANNELS
  • - direct contact with overseas intermediaries or
    consumers
  • - requiring more time and cost
  • - better control

7
Agent vs. Merchant
  • taking possession vs. taking title (ownership)

8
Agent
  • may or may not take possession
  • never taking title
  • compensation commission
  • more difficult to terminate relationships

9
Merchant
  • may or may not take possession
  • always taking title
  • compensation profit/loss
  • easier to terminate relationships

10
Types of Intermediaries Direct Channel
  • Foreign Distributor
  • Foreign Retailer
  • State-Controlled Trading Company
  • End User

11
Types of Intermediaries Indirect Channel
  • Export Broker
  • Manufacturer's Export Agent or Sales
    Representative
  • Export Management Company (EMC)
  • Cooperative Exporter
  • Purchasing/Buying Agent
  • Country-Controlled Buying Agent

12
Types of Intermediaries Indirect Channel
  • Resident Buyer
  • Export Merchant
  • Export Drop Shipper
  • Export Distributor
  • Trading Company

13
Determinants of Channel Types
  • Legal Requirements
  • Product Image
  • Product Characteristics
  • Middlemen's Loyalty and Conflict
  • Local Customs
  • Power and Coercion
  • Control

14
Representation Agreement and Termination
  • paying attention to agency termination laws
  • having agreements in writing
  • avoiding evergreen contract

15
Gray Market
  • Causes
  • Legal Dimension
  • Ethical Dimension
  • Product Quality
  • Manufacturers' Marketing Strategies
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