Page 198 - International Marketing

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200 International Marketing BRILLIANT'S

5. Transportation: Ensure effective transportation by providing quicker
delivery to buyers because they are closer than the producers.
6. Financing: The intermediaries also finance their customers by
giving credit and finance to their suppliers by ordering early and paying
bills on them.
7. Risk bearing: They absorb risk by taking title and bearing the
cost of theft, damage, spoilage and obsolescence.
8. Market information: They give information to the suppliers and
customers about competitors, new products and price developments.
9. Pricing: Helpful in pricing the products and services in such a
manner that it is acceptable to the buyer and the manufacturer which
ensures effective distribution.
10. Merchandizing and contracting: They search out buyers and
sellers for the products and services in the market. Helpful in matching
the goods to requirement of the market.
Thus, distribution channel is an integral part of total marketing
programme and must be appropriate to the product design, price and
communication's aspect of the total marketing program. They involve long-
term legal commitments and obligations to other firms and individuals.
Channels of distribution are valuable source of information for effective
channel strategies. 

Q.32. Describe briefly the main channel of distribution used in inter-
national market. Which one would you recommend for the
product of a small manufacturer and why? [MBA(FT) 2008]
OR
Describe international distribution channels and distinguish
between direct and indirect channels. [MBA(FT) 2009]

International Distribution Channel
Distribution channels are the link between producers and customers.
Basically, an international market distributes either directly or indirectly.
Direct distribution amounts to deal with foreign firm. Indirect distribution
means dealing through another firms that serve as an intermediary. The
choice of a particular channel depends on the country's stage of economic
development, socio-psychological, cultural or anthropological environment.
Distribution channel is an organized network of agencies and
institutions which are responsible for moving products and services from
the manufacturers and the users.