Page 208 - International Marketing

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210 International Marketing BRILLIANT'S

company can favour selective or exclusive dealership. A company with
substantial financial resources need not rely too much on middlemen. A
weaker company has to depend on middlemen to secure financial and
warehousing reliefs. New companies rely heavily on middlemen due to
lack of experience and ability of management. A company desiring to
exercise greater control over channel will prefer a shorter channel so as to
facilitate better coordination communication and control.
5. Marketing environment: The marketing environment also
influences the channel decision. During recession or depression shorter
and cheaper channel is always preferable. In times of prosperity a wider
choice of channel alternatives may be considered. Technological inventions
also have impact on distribution.
6. Competitors: Marketers closely watch the channels used by rivals.
Many a times, similar channels may be desired to bring about distribution
of the products. However, sometimes marketers deliberately avoid
customary channel and adopt different channel strategy. 

PRODUCT PROMOTION
Q.34. How are products promoted in the international market? Ex-
plain the various methods.
OR
Discuss the various tools used for promoting a product in the
international market.
Promotion
Promotion is one of the most important decision in marketing mix. A
company may produce a good quality product, price it appropriately and
make it available at the selling points which are convenient to the
customers. But inspite of all this the product may not sell well in the
market. There is a need for developing proper promotion within the market.
In absence of it, the customers would not be able to know about the
product and how it can satisfy their needs and wants or may not be
convinced about its utility and benefits.
Promotion has two objectives, viz., informing potential customers about
the product and persuading them to buy it. It is very important that the
buyers and the middlemen are aware of the product. Best of the products
may fail if their presence is not made felt, even in presence of high need.
Therefore, the promotion activity educates the market and keeps informed
about the products and services available.