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| distribution channels that already exist in a particular market |
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| chosen method of getting product and services to consumer, alignment of suppliers and intermediaries that perform activities related to movement, storage, physical possession, ownership, payment etc. |
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| intermediaries in the home country |
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| export management companies |
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| companies specializing in the export function for client companies in the particular industry |
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| japanese trading firm that consists of families of firms with interlocking stakes in one another |
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offers three services:
1. specialization in providing intermediary services
2. risk reduction through extensive information channels
3.significant financial assistance |
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| international distribution services providers |
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| facility where SPEED of distribution and warehousing is most important, short term storage, regional hub, products don't stay very long here |
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| UPS, DHL, Fed Ex, deliver products worldwide, price has to reflect this service |
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| home country freight forwarders and custom brokers |
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| arrange transportation on exporting company, clear customs and fill out documents |
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| working together with transportation and storage, very common in Europe |
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| middlemen who bring international buyers and sellers together, they do not carry title to the product |
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| manufacturer's export agetns |
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| agents in the firm's home country handling the exporting function of a certain manufacturer on a commission, per deal basis |
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| cooperative export arrangements |
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| piggy backing, mother henning, involves exporters agreeing to handle export functions for unrelated companies on a contractual basis |
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| complementary export agents |
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| firms that export other firm's products that are complementary to their offerings, along with their own products, for a fee/commision |
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| complementary export merchants |
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| distributors who take titles to the complementary products distributed and are compensated in the form of a discount |
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| intermediaries who take title to and possession of the products they carry, they are responsible for shipping and marketing the products to the target market |
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| an export agent dealing in illegal and or gray market products |
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| foreign- country middlemen |
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| intermediaries who help distribute products in a target foreign market |
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different intermediaries who carry the manufacturer's product line in a particular country,
both carry title and have physical possession of products they distribute |
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| purchases usually commodity goods from the manufacturer to sell to the trade |
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High flexibility, high cost, high speed.
H H H.
use for consumer goods, perishables, automobiles |
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Medium Flexibility, medium costs, lower sppeed
use for cargo that has high weigth, high volume, and low per pound value
M M L
use for coal, gasoline, forestry products, grains, automobile |
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high flexibility, high costs, HIGHEST speed
use for jewelry, electronics, expensive low volume products, low weight, but high value products |
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low flexibility, low costs, low speeds
L L L
use for grains, gasoline, forestry products, cement and fertilizer. |
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low flexibility, lower cost, low speed
use for oil and gasoline, chemical,semi liquid coal, refined products |
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| owned or leased by the company and operated by firms storing their own products, may be easy to come by and could provide more control and safety for shipping firm |
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gray marketing, same product sold in same markets for two different prices,
authorized dealers and unauthorized dealers will find products cheaper in other countries and sell it back in their own country |
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| number of different intermediaries that participate in moving products to end users |
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-transportation, physically moving one place to another
-accounts for 60% of movement |
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| make sure products reach in timely fashion |
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| determine which mode is used |
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-where the goods are going to be stored and how to manage inventory
-accounts for about 40% of cost |
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| use it for long term storage |
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| consumer goods, perishables, automobiles |
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| coal, gasoline, forestry products, grains, automobiles |
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| jewelry, electronics, expensive low volume products |
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| grains, gasoline, forestry products, cement, fertilizer |
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| oil and gasoline, chemicals, semi liquid coal, refined products |
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