Term
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Definition
1. Environment of international channel management
2. Behavioral processes in international channels
3. Designing international channels
4. Motivating international channel members |
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Term
| Economic Factors and International Channels |
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Definition
All of the economic conditions occurring in the domestic environment can occur in foreign environments as well. In fact, the changes can be much more dramatic.
Recessions, fluctuations in currency exchange rates, etc. affect a U.S. firm’s strategy in international markets. |
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Term
| Competitive Environment and International Channels |
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Definition
| Competitive structure in foreign countries can be quite different from that in the United States. The free market of the U.S. is much less evident in other highly developed western countries; in many less-developed countries, free and open competition hardly exists. The channel structure will have to conform to variations in competitive structures among many different countries. |
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Term
| Sociocultural Environment and International Channels |
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Definition
| Although differences in sociocultural factors can influence all elements of the marketing mix, the channel variable is especially sensitive because it often involves more person-to-person or organization-to-organization contact than the other variables. |
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Term
| Technological Environment and International Channels |
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Definition
| The level of technology and rate of technological changes in foreign environments is another factor that can affect channel strategy. In some countries, communications and transportation technology is relatively primitive, whereas in the more advanced countries of Western Europe and Japan, technology often matches or even surpasses that of the United States. |
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Term
| Legal/Political Environment and International Channels |
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Definition
| In the international sphere, a U.S. firm seeking to establish channels of distribution in foreign countries can face a wide array of complex and burdensome government regulations, policies, and political pressures. This can make even what might appear to be the simplest of arrangements for securing distribution very difficult and complicated. Thus the firm seeking to establish effective channels in foreign markets needs to investigate the legal environment of each country very carefully in an attempt to determine how the various regulations could conceivably affect channel strategy. |
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Term
| Behavioral Processes in International Channels |
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Definition
| The behavioral dimension can be very important in foreign channels because cultural patterns in a number of countries often place more emphasis on person-to-person relationships than is typical in the United States. |
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Term
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Definition
| This means that products are sold in foreign markets but the firm does not have any special division within its organization or make any significant effort at international marketing. In effect, the firm is a domestic marketer that exports some of its products. |
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Term
| Four most common approaches of Indirect Exporting: |
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Definition
1. Casual Exporting
2. Trading Companies
3. Trade Intermediaries
4. Cooperative or Piggybacking |
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Term
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Definition
| Unsolicited orders from foreign countries may account for a significant part of this type of exporting |
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Term
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Definition
| Foreign trading companies are typically large, powerful international organizations for conducting worldwide trade. The U.S. firm can do little to influence how its products are sold by the trading company. |
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Term
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Definition
| Sometimes called Export Management Companies – are domestically based wholesalers or manufacturers’ representatives who specialize in overseas sales. |
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Term
| 4. Cooperative or Piggybacking |
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Definition
| A cooperative effort by two or more firms. U.S. firms are permitted to join together for purposes of competing in foreign markets without being subject to the anticollusion provision of the Sherman and Clayton acts. The carrier is the firm already involved in exporting, and the rider is the firm that uses the international expertise and capabilities of the carrier to enter foreign markets. |
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Term
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Definition
| This means that the manufacturer itself gets directly involved in exporting rather than delegating all of the tasks to others. Under direct exporting, such tasks as making market contacts, performing market research, handling physical distribution, preparing export documentation, pricing, and many other tasks will be undertaken mainly by the manufacturer’s own export department. |
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Term
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Definition
| They are independently owned businesses that usually take title to the products they handle. As such, just as in the domestic setting, they may want to do things their own way rather than the manufacturer’s way. Thus, the manufacturers’ ability to exercise control over how its products are marketed by distributors is a crucial issue in both domestic and international marketing. |
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Term
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Definition
| They are also independent businesses, but they do not take title to the products they represent and usually do not take physical possession. They are, however, capable of performing or arranging for the performance of most of the international marketing tasks listed in table 18.1. |
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Term
| Overseas Marketing Subsidiary |
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Definition
| This exists when the manufacturer establishes its own foreign sales branch overseas, which can perform most or all of the international marketing tasks. This approach requires a substantially greater commitment and investment than the other two options, but because the subsidiary is owned by the manufacturer, the degree of control available is greater. |
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Term
| Choosing the Appropriate Structure |
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Definition
| Although the basic six categories of variables to consider (market, product, company, intermediary, environmental, and behavioral) are the same for domestic and international channels, the specific variables considered and the circumstances may be quite different. The actual choice of channel structure for international marketing (phase 6) must be made on a case-by-case basis. In practice, the judgmental-heuristic approaches are the most commonly used for choosing international channels, just as they are for domestic channels. |
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Term
| Motivating International Channel Members – Three basic facets in motivation management are: |
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Definition
1. Finding out the needs and problems of channel members
2. Offering support to the channel members that is consistent with their needs and problems
3. Providing leadership through the effective use of power. |
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Term
| Finding Out Needs and Problems of Foreign Channel Members |
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Definition
| The needs and problems of foreign channel members at the wholesale and retail levels can be significantly different from those of the domestic channel members the manufacture is accustomed to dealing with. The problems of goal differences and communications difficulties experienced by large U.S. manufacturers dealing with relatively small channel members are magnified greatly in the international setting where cultural differences are already so great. |
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Term
| Supporting Foreign Channel Members - Four Approaches |
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Definition
1. The cooperative approach
2. Partnerships or strategic alliances 3. Distribution programming
4. The cooperative approach |
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Term
| 1. The cooperative approach |
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Definition
| The least comprehensive and most distant relationship between manufacturer and channel members. |
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Term
| 2. Partnerships or strategic alliances |
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Definition
| These are more comprehensive and involve fairly close relationships based on mutual commitments between manufacturer and channel members. |
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Term
| 3. Distribution programming |
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Definition
| This is the most comprehensive and closely-knit arrangements, with specific and detailed direction of channel members by the manufacturer. |
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Term
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Definition
| The cooperative approach with some relationships at the partnership (or strategic alliance) stage. |
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Term
| Leading authorities on international marketing stress the following (8) factors as crucial in many countries around the world: |
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Definition
1. adequacy of margins
2. territorial protection
3. advertising support
4. financial assistance
5. sales and service training
6. business advice
7. market research
8. missionary selling |
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