The purpose of this chapter is to discuss the various channels of distribution that are responsible for moving products from manufacturers to consumers. Both international and domestic channels are examined. The chapter describes the varieties of intermediaries (., agents, wholesalers, and retailers) involved in moving products between as well as within countries. | Chapter 12 Channels of Distribution Chapter Outline Direct and Indirect Selling Channels Types of Intermediaries: Direct Channel Types of Intermediaries: Indirect Channel Channel Development Channel Adaptation Channel Decisions Chapter Outline Determinants of Channel Types - Legal Requirements - Product Image - Product Characteristics - Middlemen's Loyalty and Conflict - Local Customs - Power and Coercion - Control Chapter Outline Distribution in Japan Selection of Channel Members Representation Agreement and Termination Black Market Gray Market Distribution of Services Direct & Indirect Selling Channels INDIRECT SELLING CHANNELS - selling through home-country intermediaries - simple and inexpensive - lack of marketing control Direct & Indirect Selling Channels DIRECT SELLING CHANNELS - direct contact with overseas intermediaries or consumers - requiring more time and cost - better control Agent vs. Merchant Taking possession vs. taking title (ownership) Compensation: profit/loss vs. fee/commission Employee vs. independent contractor Agent may or may not take possession never taking title compensation: commission more difficult to terminate relationships Merchant may or may not take possession always taking title compensation: profit/loss easier to terminate relationships Types of Intermediaries: Direct Channel Foreign Distributor Foreign Retailer State-Controlled Trading Company End User Types of Intermediaries: Indirect Channel Export Broker Manufacturer's Export Agent or Sales Representative Export Management Company (EMC) Cooperative Exporter Purchasing/Buying Agent Country-Controlled Buying Agent Types of Intermediaries: Indirect Channel Resident Buyer Export Merchant Export Drop Shipper Export Distributor Trading Company Channel Decisions Channel length Number of times a product changes hands among intermediaries Channel width Number of middlemen at a particular point in the channel Number of channels Single channel vs. dual/multiple channels Determinants | Chapter 12 Channels of Distribution Chapter Outline Direct and Indirect Selling Channels Types of Intermediaries: Direct Channel Types of Intermediaries: Indirect Channel Channel Development Channel Adaptation Channel Decisions Chapter Outline Determinants of Channel Types - Legal Requirements - Product Image - Product Characteristics - Middlemen's Loyalty and Conflict - Local Customs - Power and Coercion - Control Chapter Outline Distribution in Japan Selection of Channel Members Representation Agreement and Termination Black Market Gray Market Distribution of Services Direct & Indirect Selling Channels INDIRECT SELLING CHANNELS - selling through home-country intermediaries - simple and inexpensive - lack of marketing control Direct & Indirect Selling Channels DIRECT SELLING CHANNELS - direct contact with overseas intermediaries or consumers - requiring more time and cost - better control Agent vs. Merchant Taking possession vs. taking title (ownership) Compensation: profit/loss .
