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International Distribution: Instructor: Dr. IRFAN Butt

This document provides an overview of international distribution and marketing channels. It discusses: - The different methods for entering international markets, ranging from exporting to direct foreign investment. - What distribution channels and middlemen are, including the differences between local and global distribution. - Common international distribution patterns and the role of retailers. - How companies can find overseas distributors and the differences between agents and distributors. - Exporting processes and requirements, including export restrictions, import restrictions like tariffs and quotas, and important documentation. - Different terms of sale like CIF, C&F, FAS, and FOB that determine responsibilities for costs.

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45 views41 pages

International Distribution: Instructor: Dr. IRFAN Butt

This document provides an overview of international distribution and marketing channels. It discusses: - The different methods for entering international markets, ranging from exporting to direct foreign investment. - What distribution channels and middlemen are, including the differences between local and global distribution. - Common international distribution patterns and the role of retailers. - How companies can find overseas distributors and the differences between agents and distributors. - Exporting processes and requirements, including export restrictions, import restrictions like tariffs and quotas, and important documentation. - Different terms of sale like CIF, C&F, FAS, and FOB that determine responsibilities for costs.

Uploaded by

abulhassanabbas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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International Marketing

International
Distribution

Instructor: Dr. IRFAN

Entering International Markets


Internation
al
Distribution

Exporting

Local Distribution

Licensing

Management
Contracting

Joint
Venture

Direct
Investment

Generally increasing investment, risk, and control of marketing

What is a Distribution
Channel?

Thechainof individuals and


organizations involved in getting a
product or service from the producer to
the consumer.

Distribution channelsare also known


as marketingchannels.

Common marketing channels


for consumer goods and
services

What is the difference


between Local and
International/Global
Distribution?

Distribution Patterns

To better understand the distribution


system used in a foreign country,
marketers must never assume it is
the same as what they practice
domestically, For example,

In Italy, many small retailers specialize in


different brands and product lines,
In Finland, most retailers do not specialize in
products and services

Distribution Patterns

Retail size has a direct impact on how


to distribute.

In some markets companys may sell to


large, dominant retailers directly,

Whereas in other areas there are mainly


small retailers

What is the

Middleman?

Home Country Middleman

Located in the firms home country and


provide marketing and distribution
services from a domestic base.

The companies delegate foreignmarket distribution to others such as:

manufacturer

global retailers

trading companies

export management companies

Functions of Export Management


Company

Difference Between
Export Management Company (EMC) &
Export Trading Companies (ETC)

Home Country Middleman

Home-country middlemen are most


helpful for companies with

small international sales volumes,

inexperienced in foreign markets,

who do not want to get too involved


with the complexities of international
marketing.

Foreign Country Middleman

For greater control over the distribution


process, foreign-country middlemen are
hired. Can be:

Manufacturer reps

Foreign distribution companies

Advantage

create a shorter channel for the company


and have more market expertise.

How to Find an Overseas Distributor

Advertising in trade magazines with


an international readership

Export trading company or an


export agent

Local Governments Export


Development Authority

Online Search

What is the Difference


between
Agent & Distributor?

Agent

Agentsusually represent a company in


the local market.

Dont take ownership of the goods.

Are paid a sales commission,


salary,retainer, or a combination of all
three.

Charge for the costs incurred by them.

Distributor

In most casesa distributor buys product


from firms and sells to their customers,

They may import and hold stock of your


product andmay also

adding a margin or setting their own price.

help promote itand provide after sales service


for customers.

Distributors tend to concentrate on


products

that are the easiest to sell and/or have the


highest margins.

Export Management Company


acts as an Agent or Distributor

Exporting and
Logistics

What Should be Known

Export and import documents

Tariffs & quotas

The rules and regulations that cover the


exportation and importation of goods and
their payment

Other barriers to the free flow of goods


between countries

The Exporting Process

Exporting Restrictions

Export regulations may be designed

To conserve scarce goods for home


consumption

To control the flow of strategic goods to


actual or potential enemies.

To comply with various regulations,

the exporter may have to acquire export


licenses or permits from the home country

Import Restrictions

Import regulations may be imposed

to protect health,

conserve foreign exchange,

serve as economic reprisals,

protect home industry, or

provide revenue in the form of tariffs

Import Restrictions

Canada

Firearms and Weapons

Goods manufactured by prison labor

Used or second hand motor vehicles

Second hand mattress

Food, plant, animal

Import Restrictions

The most frequently encountered trade


restrictions include:

Tariffs

Exchange Permits

Quotas

Import Permits

Standards

Boycotts and Embargoes

Voluntary Restrictions

Tariffs

Taxes or Custom duties, which are levied


against goods imported from another country.
They are based on value or quantity or a
combination of both and are classified as
follows:

Ad valorem duties,

Specific duties,

based on a percentage of the determined value of the


imported goods
a stipulated amount per unit weight or some other measure
of quantity

A compound duty,

combines both specific and ad valorem taxes on a particular


item, that is, a tax per kG plus a percentage of value

Exchange Permits

To conserve scarce foreign exchange


many countries impose restrictions on

the amount of their currency they will


exchange for the currency of another
country

Quotas

Countries may also impose limitations


on

the quantity of certain goods imported


during a specific period

Import Permits

As a means of regulating the flow of


exchange and the quantity of a
particular imported commodity,

countries often require import licenses

Standards

Standards that are necessary to protect


the consuming public and to comply
with local laws

Health standards

Safety standards

Product quality

Public Authority for Consumer


Protection in Oman

Boycotts and Embargoes

A boycott is an absolute restriction against


trade with a country, or trade of specific
goods.

An embargo is a specific government order


that imposes a ban on trade with another
country.

An embargo is more specifically related to


government actions compared to a boycott.

Voluntary Restrictions

Countries may themselves impose


restrictions on firms exporting to
specific countries

Terms of Sale

CIF

(Cost, insurance, freight)

Seller pays for cost, insurance, freight


to a named overseas port of import,

including the costs of goods, insurance, and


all transportation and miscellaneous
charges to the place of debarkation.

C&F (Cost & freight)

Seller pays for cost and freight to a


named overseas port, including the cost
of

the goods and transportation costs to the


named destination.

The cost of insurance is borne by the buyer.

FAS (Free Alongside)

Seller brings it to a named port of


export, and pays for

cost of goods and charges for delivery of


the goods alongside the shipping vessel.

The buyer is responsible for the cost of


loading onto the vessel, transportation, and
insurance.

FOB (Free on Board)

Seller brings it to a named port of


export, and pays for

cost of goods and charges for delivery of


the goods alongside the shipping vessel,
and cost of loading onto the vessel.

The buyer is transportation and insurance.

Terms of Sale

Thanks!

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