INTERNATIONAL MARKETING, TYPES OF DISTRIBUTION, CLASSIFICATION OF DISRIBUTION—BY INSTRUCTOR MRS. ASAKPA, P.E.
International marketing involves the firm in marking one or more marketing mix decisions across national boundaries. It is the total system of business activities designed to plan, price, promote and distribute goods and services to potentials foreign customers. It is the act of marketing goods and services of a country in another country.
International opportunities require careful exploration. What is needed is an awareness of global developments, an understanding of their meaning and a development of the capability to adjust to change. Hence, organizations must adapt to their international markets if they want to succeed. Organizations and companies that do not participate in world market may not grow their business, fully explore their opportunities, harness the resources around.
Marketers who want to abroad that is, enter international market or organize for international marketing needs to plan and prepare adequately. Such an individual must understand that there are approaches to entering international market because of adaptation of marketing plan and must be kept abreast of international laws, rules and regulations guiding international markets.
TYPES OF DISTRIBUTION:
INTENSIVE DISTRIBUTION: In this, the product is sold to as many appropriate retailers or wholesalers as possible. Intensive distribution is appropriate for products such as chewing gum, candy bars, soft drinks, bread, film and cigarettes. Where the primary factor influencing the purchase decision is convenience. Industrial products that may require intensive distribution include pencils, paperclips, transparent tape, file folders, typing paper, transparency masters, screws and nails.
SELECTIVE DISTRIBUTION: In this, the numbers of outlets that may carry a product is limited, but not to the extent of exclusive dealing. By carefully selecting wholesalers or retailers the manufacturer can concentrate on potentially profitable accounts and develop solid working relationship to ensure that the product is properly merchandised. The producer may restrict the number of retail outlets if the product requires specialized service or sales support. Selective distribution may be used for product such as clothing, appliances, television sets, stereo equipment, home furniture or sports equipment.
EXCLUSIVE DISTRIBUTION: When a single outlet is given an exclusive franchise to sell the product in a geographic area, the arrangement is referred to as exclusive distribution. Products such as special automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyalty are likely to be distributed on exclusive basis. It is true if the consumer is willing to bear the inconveniency of travelling some distance to obtain the product. Usually, exclusive distribution is undertaken when the manufacturer desires more aggressive selling on the part of the wholesaler or retailer, or when channel control is important, exclusive distribution may enhance the product’s image and enable the firm to charge higher retail prices.
CLASSIFICATION OF DISTRIBUTION
DUAL CHANNEL DISTRIBUTION:
This refers to movement of products through more than one channel to reach the same target consumers. a] Manufacturer—wholesaler—–consumer. b] Manufacturer—–wholesaler——retailer.
REVERSE CHANNEL DISTRIBUTION: This relates to backward movements of goods from users to producers. This is the situation when consumers are expected to supply certain information before goods and services could be distributed.
WHOLESAILING INTERMEDIARIES: This is a broader term where firm sell products primarily to retailers or to other wholesalers are only in insignificant amounts to ultimate consumers. These include agents and brokers who perform important wholesaling activities without taking title to goods which differentiate it from merchandising.
SALES CHANNEL: This is part of the distribution which involves the buying, selling and transferring title. The participants in this marketing channel are the manufacturers, retailers, consumers and Transportation Company.
FACILITATING CHANNEL: These include public storage firms, insurance companies, finance companies, marketing research firms and several other types of firms also frequently participate as facilitating organizations in various marketing channels. It is essential that both the sales and facilitating channels are usually needed to create time, place and possession utilities.