Professional Documents
Culture Documents
Dr Gautam Dutta
Learning Outline:
Operating distribution system varies from one market to other. E.g. Japan
“In
“In aa market
market system,
system, all
all aspects
aspects of
of economic
economic activity
activity are
are
interdependent,
interdependent, and
and the
the whole
whole cannot
cannot function
function properly
properly if
if any
any major
major
element
element is
is not
not in
in its
its place.”
place.”
Michel
Michel Camdessus,
Camdessus,
Managing
Managing Director,
Director,
International
International Monetary
Monetary Fund
Fund
Distribution: it provides Competitive advantage
“An
“An organised
organised action
action of
of networks
networks of
of agencies
agencies and
and institutions,
institutions, which,
which, in
Wh in
combination, enall
combination, perform
perform all the
the activities
activities required
required to
to link
link producers
producers with
with
users
users to
to accomplish the rmarketing
accomplish the efr
marketing task”
task”
ref iger
rig ato
era r i
tor s n
ot
a
Structure of channel
International marketing Channel (Indirect)
Agent Merchant
intermediary
Merchant Export
Int. trading Co trading
Exporter
International “SOGO SOHAS”Mitsubishi, house
mitsui, itochu, sumitomo, STC,MMTC
Border marubeni
International marketing Channel (Direct)
International
Border International marketing Channel (Direct)
Agent Merchant
intermediary
wholesaler
Merchant Retailer
distributor
importer
Forces for change in distribution channel
1 2 3
Dealer
customer
3. Horizontal diversity
Zabaracki termed it as high velocity environment. Companies are
experimenting with many different way of reaching market.
E.G Often simultaneous use
Direct mail,
telemarketing,
distribution joint venture,
equity options in a distributor,
.
4. Multiple channel with range of service options
NoNo
frills/low cost Channel
frills/low cost Full service/full cost
Demand
Generation Physical After Sales
Distribution Service
Customer
International Marketing Channels: Direct
e-channels
-- David Arnold,2000
Japan USA
Manufacturers
Direct Transaction
Trading co Wholesalers
(Sogo Shosha)
Primary
Wholesaler
Primary
Broker Secondary
Wholesalers Sales
Subsidiary
Secondary
Broker Tertiary
wholesalers
USA JAPAN
Cultural Type Low context High context
Prevalence Logic Emotions
Communication Explicit ,verbal Abstract less
style verbal
Sense Efficiency
Value Substance Harmony
Automobile Parts
Automobile makers Independent Repair parts
affiliated parts parts makers makers
makers
Sub-dealers Retailers
Gasoline
Large users stations
Automobiles
repair shops
End users
Automobile Parts
51%
Manufac- Warehouse Jobber buy-
Jobber Installer Customer
turer distributor ing groups
10%
18% Mass
merchandiser
21% Repair
specialist
Primary channel
Secondary channel
D=T+W+I+P+O+S