International Distribution Policy

In general, it would be ideal for an exporter to sell direct to his final client with no need for intermediaries.  However, the truth is that this is not always possible, due to costs involved, or market idiosyncracies.   In these cases, the company should seek an intermediary. 

In this unit, you will learn about the importance of planning an appropriate distribution strategy when entering new export markets.  

This will be achieved by:
- Examining the distribution options open to the exporter
- Outlining the criteria to be used when chosing a distribution option
- Introducing strategies which can be implemented for consumer and/or industrial products.

Completing this course will confer 5 CPD Credits towards internationally recognised Continuous Professional Development Requirements within organisations operating this kind of staff development methodology.

Course Outline

1. INTRODUCTION

1.1 Introduction to Distribution Channels

1.2 The Goal of Distribution

1.3 The Importance of Relationships

1.4 Research Other Markets

1.5 Every Market is Different

1.6.1 Client's Profile

1.6.2 Clients

1.7 The Product

1.8 Intermediaries

1.9 The Environment

1.10 Consumer Products

1.11 Consumer Products. Direct Sales

1.12 Franchising

1.13 Worldwide Retail Sales

1.14 Industrial Products

1.15 Introduction to Distribution Channels

1.16 Marketing Position

1.17 Information & Control

1.18 Decision Making

1.19 Channel Innovation

2. INDIRECT EXPORTS

2.1 Definition

2.2 Possible buyers

2.3 Advantages

2.4 Disadvantages

3. CONSULTANCY

3.1 Definition

3.2 Functions of a consultant

3.3 Advantages

3.4 Disadvantages

3.5 Conclusions

4. ASSOCIATED EXPORTS

4.1 Definition

4.2 Piggybacking

4.3 Why it is used

4.4 Conclusions

5. EXPORT CONSORTIA

5.1 Definition

5.2 Structure

5.3 Types: Regional / Sectorial

5.4 Types: Sales / Promotion

5.5 Criteria for joining

6. TRADING COMPANIES

6.1 Definition

6.2 How does it work?

Further Reading

1- The 7 Rules of International Distribution

2- Comparing export marketing channels: developed versus developing countries

3- Distribution on the International Market

4- Model Contracts for Small Firms International Distribution of Goods

Forum Assignment