1. International retailing
1.1. Differences
1.1.1. lag behind the US
1.1.2. rely on neighborhood residents for their customers
1.1.3. smaller than the US
1.1.4. advertise less than US
1.1.5. different retail practices
1.1.5.1. more casual approach to importance of marketing orientation as a component of strategy
1.2. Similarities
1.2.1. loyal customers are necessary
1.2.2. repeat customers important
1.2.3. retail markdowns essential part of strategy
1.2.4. store layout important
1.2.5. gender of sales assistants not important
1.2.6. helpfulness of sales assistants important
2. International channels
2.1. organizations that facilitate flows of transactions and ownership
2.2. Importance of channels:
2.2.1. long-term & difficult to change
2.2.2. how & where product will be made available
2.2.3. impact other variables in marketing mix
2.2.4. coordinated & managed to be effective
2.3. Channel alternatives:
2.3.1. direct
2.3.1.1. negotiate with intermediary whose outside of domestic market
2.3.2. indirect
2.3.2.1. residence is inside the domestic market
2.4. Channel desirablility
2.4.1. indirect benefits
2.4.2. limitations of indirect
2.4.3. direct benefits
2.4.4. limitations of direct
2.5. Establishing the channel - 4 steps:
2.5.1. determine the objectives
2.5.2. id all the alternative feasible channels
2.5.3. evaluate appropriateness & desirability of alternatives
2.5.4. choose best channel alternatives
2.6. Factors influencing the channel decision - 5 salient factors
2.6.1. amt. of control over channel activities
2.6.2. effectiveness of channel selling products
2.6.3. availability of information @ foreign market
2.6.4. amt. of paperwork & documentation
2.6.5. amt. of selling cost
2.7. Intermediary institutions
2.7.1. Export merchants
2.7.1.1. buy products from producers & resells them to buyers in foreign markets
2.7.1.2. Types:
2.7.1.2.1. Export house
2.7.1.2.2. Export management company
2.7.1.2.3. Piggyback marketing
2.7.1.2.4. Trading company
2.7.2. Export agents
2.7.2.1. represent large # of noncompeting producers & locates foreign buyers
2.7.2.2. Types:
2.7.2.2.1. Export broker
2.7.2.2.2. Export commission house
2.7.2.2.3. Resident foreign buying agent
2.7.2.2.4. Manufacturers export agent
2.7.3. Parent company entities
2.7.3.1. are organizations that function within the firm for directing exporting activities
2.7.3.2. Types:
2.7.3.2.1. Built-in exporting
2.7.3.2.2. Mail-order house
2.7.3.2.3. Export department
2.7.4. Legislative entities
2.7.4.1. an association authorized by Congress
2.7.4.2. Types:
2.7.4.2.1. Export Trading Company(ETC)
2.7.4.2.2. Webb-Pomerene Association
2.7.5. Import merchants
2.7.5.1. includes foreign buyers at the wholesale & retail levels
2.7.5.2. Types:
2.7.5.2.1. Dealer
2.7.5.2.2. Distributor
2.7.5.2.3. Import jobber
2.7.5.2.4. Retailer
2.7.6. Import agents
2.7.6.1. firms that represent the domestic firm's products
2.7.6.2. Types:
2.7.6.2.1. foreign factor
2.7.6.2.2. import broker
2.7.6.2.3. managing agent
2.7.6.2.4. manufacture's representative
2.7.7. Representatives
2.7.7.1. are extensions of the manufacturing firm in a foreign country
2.7.7.2. Types:
2.7.7.2.1. traveling sales representative
2.7.7.2.2. selling office
2.8. Channel selection decision
2.8.1. determine intermediate categories - see exhibit 11.6
2.8.2. decide which firm would be most appropriate
2.9. Blocked channels
2.9.1. when managers are prohibited from using the desired channel
2.9.2. Occurs for 6 reasons:
2.9.2.1. gov't intervention may preclude use of some channel members
2.9.2.2. desired channel may be culturally precluded
2.9.2.3. desired channel member does not exist
2.9.2.4. desired channel member does not want to participate
2.9.2.5. channel member may be representing competitive products
2.9.2.6. trade associations may close the desired channel
2.9.3. When channels cannot be used, there are 3 options:
2.9.3.1. do not enter the market
2.9.3.2. select alternative channel
2.9.3.3. create the desired channel