Page 199 - International Marketing

BRILLIANT'S Overseas Market 201

Types of International Distribution Channel
Companies use two principal channels of distribution, when marketing
abroad which are illustrated in the following diagram i.e. direct channel
and indirect channel.

Manufacturer

Indirect Distribution Direct Distribution
(For Example, dealing (For Example, dealing with
a foreign firm)

Agent Merchant Agent Merchant
Middlemen Middlemen
Export Export Export Export
Management Merchant Broker Distributor
Company NPP
Purchasing
Manufacturer's Cooperative Agent Retailer
Export Agent Exporting
Sales
Webb-Pomerene Export Represen- Export
Association Vendor tative Jobber

American Trading Overseas
Company (ATC) Military Trading
Market Company
Representative
Foreign Freight
Forwarder
Multinational
Company
Commission Agent
United
Country-Controlled Nations
Buying Agent
Country-Controlled
Buying Agent

(I) Indirect distribution channel
Indirect distribution channel is also known as the local or domestic
channel. When an international marketer, markets its products through
another firm that acts as manufacturer's sales intermediary (middleman).
The sales intermediary is just another local or domestic channel for the
manufacturer because there are no dealings abroad with a foreign firm. By
exporting through an independent local middleman, the manufacturer has
no need to set up an international department.