Page 196 - International Marketing

NPP

198 International Marketing BRILLIANT'S

restrict imports or cause an unjustified increase in the cost of products.
India has initiated 275 antidumping investigations between 1992 and March
2012, involving over 40 countries. 
DISTRIBUTION CHANNEL DECISIONS
Q.31. Write a short note on: Distribution channel decisions with
respect to international marketing. [MBA (FT)- 2006]
OR
Write a short note on: “Distribution channels in overseas
market.” [MBA(FT)- 2004]
OR
What do you understand by Distribution Channel? Discuss
the functions of the distribution channel.

Distribution Channel
Distribution channels are link between producers and customers. The
American Marketing Association defines channel of distribution as "an
organized network of agencies and institutions which in
combination, perform all the activities required to link producers
with users to accomplish the marketing task". Distribution is the
physical flow of goods through channels comprising of a coordinated group
of individuals or firms that perform functions adding utility to a product or
service. The major types of channel utility are: place (the availability of a
product or service in a location that is convenient to a potential customers);
time (the availability of a product or service when desired by customer),
form (the product is processed, prepared and ready to use and in proper
condition) and information (answers to questions and general
communication about useful product features and benefits are available).
Since, these utilities are basic source of competitive advantage and
product value, the marketing management must choose the channel
strategy as one of the key policy decisions. An international marketer is
required to make several decisions that will affect its channel strategy
including the length, width and number of distribution channels to be used.
A distribution channel may be defined as "the path traced in the direct
or indirect transfer of title to product as it moves from a producer to ultimate
consumers or industrial users".
A distribution channel, in the other words, is the set of firms and
individuals that take title or assist in transferring title, to the particular
good or service as it moves from the producer to the consumers.
The above definition makes it clear that channels of distribution may
consist of two categories of intermediaries or middlemen, viz.,