CHAPTER FIVE

OVERSEAS DISTRUBUTION CHANNELS

INTRODUCTION

MEANING OF OVERSEAS DISTRIBUTION CHANNELS

Outlets available for exporting goods to foreign buyers. Route by which goods move to foreign buyers. Useful for quick and economical distribution. A manufacturer can use one or more channels for the

distribution of the products.

Scope for the selection of dc is restricted in the case of

exporting.

DISTRIBUTIONN CHANNELS AVAILABLE FOR EXPORTING

1. 2.

Direct channel. Export through export merchants.

3.
4. 5. 6. 7.

Export through domestic marketing middlemen.

Export through agent merchant. Export through canalizing agencies such as MMTC. Export through export consortia. Export through overseas sales agents/brokers.

8.

Export through web marketing.

DIRECT CHANNEL
EXPORT FIRM OWN DEPT ORDER OR SALES REPRESENTATIVE FOREIGN BUYERS

INTERMEDIARIES

EXPORT THROUGH EXPORT MERCHANTS

MERCHANT EXPORTER PURCHASE GOODS ON ITS OWN

FOREIGN BUYERS

EXPORT

EXPORT THROUGH DOMESTIC MARKETING MIDDLEMEN

MERCHANT AGENT APPOINTED IN HOME COUNTRY COLLECT ORDER FROM FOREIGN BUYERS COMMISSION

PASSSES ORDER TO EXPORTING FIRM EXPORTING FIRM LOOKS AFTER ALL EXPORT PROCEDURES AND FROMALITIES.

EXPORT THROUGH AGENT MIDDLEMEN

MANY AGENT MIDDLEMAN

SERVICE TO DOMESTIC EXPORTING FIRM

SERVICE TO FOREIGN IMPORTERS

CHARGES BRING PROCEDURES COMMISSION ORDERS FORMALITIES

SUCH AGENTS INCLUDES EXPORT COMMISSION HOUSES,BROKERS,MANUFACTURERS EXPORT AGENTS

EXPORT THROUGH CANALIZING AGENCIES

EXPORT THROUGH EXPORT CONSORTIA

CONSORTIUM GOVERNMENT

BENEFITS

SUITABLE FOR SMALL EXPORTERS

EXPORT THROUGH OVERSEAS SALES AGENTS/BROKERS

COMMISSION AGENT DISTRIBUTORS

EXPORT THROUGH WEB MARKETING

FACTORS INFLUENCING SELECTION OF DISTRIBUTION CHANNELS

M- MARKET COMPETITION.

F- FEATURES OF CUSTOMERS.
L- LOCATION OF THE PRODUCT.

F- FINANCIAL POSITION OF EXPORTING FIRM.

A- AVAILABILITY OF MIDDLEMEN. N- NATURE OF TARGET MARKET.

MARKET COMPETITION
SEVERE COMPETITION MODERATE COMPETITION LIMITED COMPETITION

AGENT/MIDDLEMAN LONGER CHANNEL

MERCHANT EXPORTER

DIRECT CHANNEL SHORTER CHANNEL

FEATURES OF CUSTOMERS
CONSUMER PRODUCT INDUSTRIAL PRODUCT

LARGE IN NUMBER FREQUENT PURCHASE SMALL QUANTITY LONGER CHANNEL

SMALL IN NUMBER LESS FREQUENCY BULK PURCHASE SHORTER CHANNEL

LOCATION OF THE PRODUCT

HOME COUNTRY OVERSEAS MARKET FREE AREA

FINANCIAL POSITION OF EXPORTING FIRM

SOUND FINANCIAL POSITION LIMITED FINANCIAL POSITION

DIRECT CHANNEL

SERVICE OF EXPORT MERCHANT

AVAILABILITY OF MIDDLEMAN

NATURE OF TARGET MARKET

SERVICE OF MIDDLE MAN DIRECT CHANNNEL

LARGE SIZE EXPORT MARKET

ABILITY TO TAKE INDEPENDENT DECISION

TYPES OF FOREIGN INTERMEDIARIES

STATE BUYING ORGANIZATIONS GOVERNMENT DEPARTMENT

IMPORTERS

WHOLESALERS

RETAILERS

DISTRIBUTERS

MULTIPLE CHANNELS

EXPORT AGENTS

JOINT VENTURES

EXPORT BROKERS

COOPERATIVE EXPORTERS

EXPOR MANAGEMENT COMPANY (EMC)