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Sudeep Bhunya Shitij bhola Farah Bulsara Karan Desai

03 04 19 33

What are the factors influencing channel members for overseas market? What a firm must be doing in locating and selecting global channel partners? What criteria will be used to select among many possible distributors to handle a firms line of car batteries in UK?

Companies need to place their goods where it is easily available to customers. Distribution is a course-physical path or legal title that goods take between production and consumption. It plays a key role in the success of any international business.

Each country has a distribution structure, where goods pass from producer to the end-user. The options of distribution range from taking control of the distribution process in its entirety or depending on one or more intermediaries for distribution of products and services. A company should select channel members that are practical, cost effective, and align with the companys stated marketing objectives.

Nature of product Nature of market Distribution expenses Mutual cooperation Company considerations

Prompt payment Popularity of goods

Price and profit

Structure of retailing Financial resources

Many firms are unsuccessful at penetrating new markets because they are unable to construct an adequate system of channels.
Often it is better for companies to be more measured in their approach to appointing distributors.

A company can choose from a number of potential foreign distributors on the basis of: The companys financial strength Its good connections Extent of its other business commitments Current status of its personnel, facilities and equipment. Its reliability as an honest performer. Its image in relation to the product or service being sold.

Information Promotion Contact Matching Negotiation Physical Distribution Financing Risk taking

Companies must evaluate potential distributors, but distributors must also choose which companies and products to represent and emphasize.

Both new and established companies sometimes have difficulty in finding distributors to handle their brands.