International Marketing
Trade has increasingly become globalized in various scope in the 21st century. A number of reasons account for this, the first one being the advancement in technology which has enhanced communication and transportation processes. This practical aspect of the current scope of trade grants businesses and consumers the access to quality and best products all over the world. Distribution, thus, forms the most integral part of the global trade. For distribution to occur, a number of distribution channels also referred to as market channels are required to be in place. Distribution channels refer to the set of organizations which are interdependent in their operations and together, they enhance the availability of products to various consumers across the world (Gould 2015). Channel intermediaries also step in to effect the actual contact of the goods and services with the consumers, they complete the job initiated by the distribution channels. In this paper a number of international marketing issues are discussed in details. These issues include the process of distribution of goods and services to customers in various parts of the world, the importance of distribution to the success of the international marketing, issues surrounding international market, for instance localization verses standardization. Also covered are the differences in international marketing in the big emerging markets, market entry and political risk assessment theory, and key factors in making marketing mix decisions at the international level and how their integration helps in the achievement of the firm’s goals. Distribution Channels and Intermediaries The means through which any firm or company distribute its goods and services cuts down to the distribution channels and its intermediaries. The first distribution channel is the Internet. Through the use of the Internet, very small businesses with limited resources are able to be at the same competitive level with the biggest competitors (Jolivot 2013). However, through the Internet, every firm has the platform of advertising its products to the world at a relatively low cost. The E-commerce created in this channel has resulted in the radical changes concerning the global distribution of the goods and services all over the world. Currently, there is mass production of goods and these commodities are obtained mostly through distributors other than their manufacturers. With the increased use and convenience of the Internet, customers can order any kind of product they desire from any part of the world without physically looking for the product all over. Internet operates as a consumer channel which forms the shortest distribution channel ever formed. …show more content…
The goods are directly linked from the producer to the consumer. This allows for better services’ provision from the manufactures to their customers. Business to business channels is a distribution channel where the flow of goods from the producer to the organization customer is facilitated (Risko & Wiwczaroski 2014). Generally, this distribution channel runs parallel to the consumer channel since they are either indirect or direct. The simplest form of the business-to-business distribution channel is the case where a distributor buys company’s product and later sells them to the customers of the company. Distribution channels for the services offered by different companies is simpler as compared to the distribution of goods. It is due to fact that compared with the goods, services do not require transportation or storage and other physical functions. The only intermediaries needed by services …show more content…
Horizontal marketing system is an arrangement where two or more organizations at same level join to focus on a newly created marketing opportunity. Through their joining, the companies pull together their financial and marketing resources to enable them accomplish what they would otherwise be unable to accomplish without the merger. Companies can also join forces with their competitors worldwide thus enhancing the exchange and distribution of their different products across the world.
Multichannel distribution system is a system whereby a single company establishes more than one marketing channels to facilitate its contact with customers from different parts of the world. Sometimes this approach is referred to as hybrid marketing channel (Mathews et al 2015). Companies operating under multichannel are mainly the huge companies which face extensively complex competition all over the world. With every new channel created, the company has the chance of expanding its market coverage thus gaining more chances of globalizing its services.
Importance of
Trade has increasingly become globalized in various scope in the 21st century. A number of reasons account for this, the first one being the advancement in technology which has enhanced communication and transportation processes. This practical aspect of the current scope of trade grants businesses and consumers the access to quality and best products all over the world. Distribution, thus, forms the most integral part of the global trade. For distribution to occur, a number of distribution channels also referred to as market channels are required to be in place. Distribution channels refer to the set of organizations which are interdependent in their operations and together, they enhance the availability of products to various consumers across the world (Gould 2015). Channel intermediaries also step in to effect the actual contact of the goods and services with the consumers, they complete the job initiated by the distribution channels. In this paper a number of international marketing issues are discussed in details. These issues include the process of distribution of goods and services to customers in various parts of the world, the importance of distribution to the success of the international marketing, issues surrounding international market, for instance localization verses standardization. Also covered are the differences in international marketing in the big emerging markets, market entry and political risk assessment theory, and key factors in making marketing mix decisions at the international level and how their integration helps in the achievement of the firm’s goals. Distribution Channels and Intermediaries The means through which any firm or company distribute its goods and services cuts down to the distribution channels and its intermediaries. The first distribution channel is the Internet. Through the use of the Internet, very small businesses with limited resources are able to be at the same competitive level with the biggest competitors (Jolivot 2013). However, through the Internet, every firm has the platform of advertising its products to the world at a relatively low cost. The E-commerce created in this channel has resulted in the radical changes concerning the global distribution of the goods and services all over the world. Currently, there is mass production of goods and these commodities are obtained mostly through distributors other than their manufacturers. With the increased use and convenience of the Internet, customers can order any kind of product they desire from any part of the world without physically looking for the product all over. Internet operates as a consumer channel which forms the shortest distribution channel ever formed. …show more content…
The goods are directly linked from the producer to the consumer. This allows for better services’ provision from the manufactures to their customers. Business to business channels is a distribution channel where the flow of goods from the producer to the organization customer is facilitated (Risko & Wiwczaroski 2014). Generally, this distribution channel runs parallel to the consumer channel since they are either indirect or direct. The simplest form of the business-to-business distribution channel is the case where a distributor buys company’s product and later sells them to the customers of the company. Distribution channels for the services offered by different companies is simpler as compared to the distribution of goods. It is due to fact that compared with the goods, services do not require transportation or storage and other physical functions. The only intermediaries needed by services …show more content…
Horizontal marketing system is an arrangement where two or more organizations at same level join to focus on a newly created marketing opportunity. Through their joining, the companies pull together their financial and marketing resources to enable them accomplish what they would otherwise be unable to accomplish without the merger. Companies can also join forces with their competitors worldwide thus enhancing the exchange and distribution of their different products across the world.
Multichannel distribution system is a system whereby a single company establishes more than one marketing channels to facilitate its contact with customers from different parts of the world. Sometimes this approach is referred to as hybrid marketing channel (Mathews et al 2015). Companies operating under multichannel are mainly the huge companies which face extensively complex competition all over the world. With every new channel created, the company has the chance of expanding its market coverage thus gaining more chances of globalizing its services.
Importance of