Distribution Channels in International

Marketing
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In this article we will discuss about:- 1. Meaning and Definitions of
International Distribution Channels 2. Types of Distribution Channels 3.
Export Distribution Channels 4. Different Approaches to Export Channel
Strategy 5. Level of Distribution 6. Direct vs Indirect Distribution System.

Contents:
1. Meaning and Definitions of International Distribution Channels
2. Types of Distribution Channels
3. Export Distribution Channels
4. Different Approaches to Export Channel Strategy
5. Level of Distribution
6. Direct vs Indirect Distribution System

1. Meaning and Definitions of International Distribution

Channels:
The sole objective of production of any commodity is to help the goods
reach the ultimate consumers. In the era of modem large scale
production and specialization it is not possible for the producer to fulfill
this work in all circumstances. The size of market has become quite
large. Therefore, the producer has to face numerous difficulties if he
undertakes the distribution works himself.
Besides, in the age of specialization it is not justified on the part of a
single person or organisation to entertain both production as well as
distribution work. Thus the producer has to take help of many distribution
channels to transfer the goods to the ultimate consumers. In other
words, many different distribution channels are needed between
producers and consumers for effective distribution of products.
Definitions:
According to Philip Kotler, “Every producer seeks to link together the set
of marketing intermediaries that best fulfil the firm’s objectives. This set
of marketing intermediaries is called the marketing channel.”
According to Richard Buskirk, “Distribution channels are the systems of
economic institutions through which a producer of goods delivers them
into the hands of their users.”
According to William J. Stanton, “A channel of distribution for a product
is the route taken by the title to the goods as they move from the
producer to the ultimate consumers or industrial user.”
According to McCarthy, “Any sequence of institutions from the producer
to the consumer, including none or any number of middlemen is called a
channel of distribution.”
After studying the definitions, the appropriate definition of
distribution channel can be given as follows:
“Distribution channel is that path which includes all individuals and
institutions which work to make goods reach the consumers from
producers without interruption.” Thus distribution channel helps in the
transfer of goods in original form from producers to consumers.

2. Types of Distribution Channels:

There are different types of channels of distribution and a manufacturer
may select any one of these channels.
These channels may be broadly divided into two parts:
i. Distribution Channel of Consumer Goods:
The channels of distribution for consumer products may be as
follows:
1. Manufacturer → Agent → Wholesaler → Retailer → Consumer:
In this method of distribution channel, product reaches the agent from
the manufacturers and from the agent to wholesaler and then to
consumers through retailers. In India, most of the textile manufacturers
adopt this method of distribution.
2. Manufacturer → Agent → Retailer → Consumer:
In this method of distribution, the wholesaler is eliminated and goods
reach from manufacturer to agent and then consumers through retailers
only. Manufacturers who want to reduce cost of distribution adopt this
method.
3. Manufacturer → Agent → Consumer:
As per this method of distribution channel, there is only one middleman
that is the agent. In India, for the distribution of medicines and
cosmetics, this channel of distribution is commonly adopted.
4. Manufacturer → Wholesaler → Retailer → Consumer:
A manufacturer may choose to distribute his goods with the help of two
middlemen. These two middlemen may be wholesalers and retailers.
5. Manufacturers → Retailer → Consumer:
In this method of distribution channel, manufacturers sell their goods to
retailers and retailers to consumers. In India, Gwalior Cloth Mills and
Bombay Dyeing adopt this channel of distribution to sell textiles.
6. Manufacturers → Consumers:
A producer of consumer goods may distribute his products directly to
consumers. The goods may be sold directly to consumers through
vending machines, mail order business or from mill’s own shops.
ii. Distribution Channel of Industrial Products:
The channels for industrial products are generally short as retailers are
not needed.
However, following methods may be adopted:
1. Manufacturer → Agent → Wholesaler → Industrial Consumer:
Under this method, product reaches from manufacturer to agent and
then to industrial consumer through the wholesaler.
2. Manufacturer → Agent → Industrial Consumer:
Under this system, goods reach industrial consumer through the agent.
Thus there is only one middleman.
3. Manufacturer → Wholesaler → Industrial Consumer:
This distribution channel is the same as above, the only difference is that
in place of agent, there is wholesaler.
4. Manufacturer → Industrial Consumer:
Under this channel there is no middleman and goods are directly sold to
industrial consumer. Railway engines, electric production equipment are
sold by this system.
Direct channel is popular for selling industrial products since industrial
users place orders with the manufacturers of industrial products directly.
To plan about an export distribution, knowledge on two different
aspects are a must:
(i) The marketing channel that is available in the Foreign Market.
(ii) The most appropriate channel is to link the domestic operations to the
overseas channels.
The principal forms of penetrating exports markets are selling to local
export houses or buying organisations for indirect exporting and
appointing agents or distributors for direct exporting.
If these forms are combined with the domestic channel of
distribution in the importing country, the export distribution
channel can be identified as follows:
a. Direct Distribution Channel:

This figure is illustrative of distribution of channel of consumer goods. In

case of industrial products, the channel will be shorter because there is
no need of retailers. In fact, in many cases, there may not be any
wholesaler.
Producer → Agent → Industrial buyer
b. Indirect Distribution Channel:

In indirect exporting, the firm delegates the task of selling products in a

foreign country to an agent or export house.
This figure is illustrative of distribution channel of goods. In case of
industrial products, the channel will be shorter because there is no need
of retailers. In fact, in many cases, there may not be any wholesaler.
The channels of distribution may differ from country to country, market to
market and product to product. So, the first task of the producer is to find
out the possible distribution channel through which he wants to reach the
consumers on the foreign market, keeping in view the characteristics of
his product and the marketing strategy he wants to follow in the market.
While selecting a distribution channel for foreign markets, the
management of the exporting company should consider the
following aspects:
(i) Who are the consumers? Which are the available retail outlets to
reach them?
(ii) Which type of market coverage is required, keeping in view the
product and consumer characteristics?
(iii) Are there any internal constraints for the exporter like finance which
will influence the decision regarding choice of the distribution channel?
(iv) What are the expectations from the channel members? Are there
some specific expectations?
(v) What is the required support system to satisfy the expectations of the
channel members?
It should be realised that the distribution channel is the mechanism
through which the seller reaches the consumers and, therefore, the
selected channel must be suitable to the company’s operations and
marketing strategy.

3. Export Distribution Channels:

The distribution process for international marketing involves all those
activities related to time, place and ownership utilities for industrial and
end consumers. The selection, operation and motivation of effective
channels of distribution often turn out to be important factor in firm’s
differential advantage in international markets. The diverse cultural
differences play an important role in formulation of distribution strategies
for any exporter entering foreign markets.
International marketing distribution is similar to that in domestic
marketing. Main difference is in environmental effects. The exporter,
therefore, needs to understand how environmental factors affect the
distribution policies. Using this knowledge the exporter must use the
most appropriate channels on a country-to-country basis.
The distribution system available in a country is also influenced by the
economic development of the country, the personal disposable income
of consumers and as well as some other factors such as culture,
physical environment and the legal/political system. Exporters, while
developing a distribution strategy must focus on how the goods can be
transported from the manufacturing locations to the consumer most
effectively.
Although distribution can be totally handled by the manufacturer, often
the goods are moved through middlemen such as wholesalers,
distributors, retailers or agents. An understanding of the available
distribution system in a particular county is extremely important in the
development of a sound distribution strategy.

4. Different Approaches to Export Channel Strategy:

There are three different approaches to channel strategy. There are Pull
approach, Push approach and Gravity approach.
The details of these approaches are discussed as under:
1. Pull Approach:
The pull approach of channel strategy relies much upon the intensive
promotional campaigns through advertising, personal selling and other
promotional efforts and attempts to develop brand loyalty among
consumers of the product in the market. The manufacturer is not much
worried about the channel. Through advertising, publicity of the product
and sales promotional activities, the manufacturer creates demand so
that the consumers themselves create a pressure on the distribution
outlets to carry and sell his product.
The channel members attempt to store the product in their outlets to
serve the consumer best, because the consumer is sovereign. Thus, the
manufacturer neither establishes his own set-up in the foreign market
nor does he contact the middlemen to sell his product. The channel
members are thus forced to contact the manufacturer. Due to this very
nature this strategy is known as pull approach.
2. Push Approach:
Under this approach of distribution, the exporter should establish his own
channel of distribution and assume full control over it to use it as a
promotional instrument. The exporter, therefore, should make effective
planning, establish organisation to implement it and have effective
control over it. The exporter will function as the channel leader.
3. Gravity Approach:
The gravity approach of distribution channel is essentially a passive
approach. Under this approach, the seller or manufacturer exporter is in
touch with intermediaries and sells his whole production to that
intermediary. It is the intermediaries who look after the actual distribution
work in the foreign markets.
The manufacturer should not worry at all for its distribution function. The
consumers do not know even who the producer of the product they are
using is. The manufacturer neither establishes his own sale organisation
in foreign market nor takes it seriously and the distribution work is done
by the middlemen.
Which strategy out of the above approaches should an exporter follow, is
a very difficult question to answer. A number of factors influence the
choice. As far as gravity approach is concerned, it has a very limited role
to play in distribution of goods in foreign markets. In modern age an
exporter cannot find a place in an export market passively.
The pull strategy requires substantial outlay of financial resources for
intensive sales promotion campaigns to create the demand for the
product and develop brand loyalty. The push strategy on the other hand
does not involve such huge costs. But it does require a proper discount
structure and other incentives to motivate the distribution channel
members. In addition, the exporter must be prepared to plan and
partially finance proper sales promotional campaign.
For consumer products, both the strategies may be adopted in the
foreign countries. Smaller companies generally follow push strategy in
distributing the goods as its success depends more upon personal
selling rather than financial outlay. The big companies can employ pull
strategy for mass consumption items in developed countries.
Even in a developing country like India, large companies use this
strategy. In case of industrial products, on the other hand, companies,
irrespective of size, generally use the push strategy. The reason behind
is that the number of buyers is small and the outlets to be contacted are
also lower which can be covered through specialised sales force and
does not require any mass advertising. Further, the channel members
will have to be integrated with the total marketing system in order to
ensure after sale service system.
As per Webster, the major points of difference between the push
and pull approaches may be indicated in the following manner:

In the case of Indian exporter, pull strategy will not suit because of
limited availability of foreign exchange. Gravity approach cannot be said
to be the best because involvement of exporter to some extent is
necessary whereas the strategy suggests quite a passive view. Thus, in
Indian context it is better to adopt push strategy. The exporter should
establish his own channel of distribution, manage and control it
effectively through proper planning and cooperation with the distribution
channel members.

5. Level of Distribution:
The exporter may decide to sell either direct to importer or to an importer
wholesaler, distributor, super-markets, and chain of stores or shopping
malls or speciality stores. Which of these should exporter choose will
depend on the nature of his product, the size of the market environment
of the country, distribution cost and his own financial resources?
Smaller companies may sell only to an importer. Recently, a new type of
distribution system has emerged in certain foreign markets. They are
designated as manufacturer-importers. For example, in the USA there
are a large number of units manufacturing and selling leather garments.
These units, essentially because of economies of scale, subcontract part
of their business in small lots to manufacturer-exporters in developing
countries. Selling to the manufacturer-importers solves the problem of
internal distribution so far as the exporters are concerned, as it is
handled by them.
6. Direct vs Indirect Distribution System:
Direct distribution channel is the system of distribution channel in which
exporter sells the goods to consumers without the help of intermediaries,
while in indirect distribution channels exporter sells his products with the
help of intermediaries.
Whether the exporters adopt direct distribution system or indirect
distribution system, it will depend on the relative strengths of the various
factors.
The factors in favour of direct distribution channel are:
(i) Control:
The exporting company will have direct control over the marketing
operations and, therefore, can devise and implement the proper
marketing strategy in tune with the changing marketing conditions.
(ii) Knowledge about the Export Market:
In direct distribution channel, the exporter may have full information on
marketing opportunities and trends, competitors, product acceptance in
the market and other information regarding the market.
(iii) Increase in Profit:
By selling directly in the foreign market, exporter can save the
commission that becomes payable to the agents. Moreover the
manufacturer enjoys full returns on the sales of his goods because he
does not have to share profits with anyone. In indirect exporting, the
agents purchase the products at cheaper rates and sell them to
importing country at higher prices.
(iv) Customer Satisfaction:
Buyers of highly specialised equipment prefer direct dealings with the
manufacturers as they expect to be completely assured of the services.
Distributors may not have highly qualified staff for conducting sales
negotiation for such equipment.
Following are the disadvantages of Direct Distribution System:
(i) Goodwill of the Middleman:
A new exporter’s name will be unknown in the foreign market, therefore,
even though the price and quality of the product may match those of
known companies, the new entrant will be at a disadvantageous
position. In such a situation, it would be better to gain credibility in the
market if a known distributor handle the product, because the standing of
the distributor will help in assuring the customers about the quality of the
product.
(ii) Huge Resources:
Direct exporting requires large funds in order to support adequately the
cost of selling, to provide necessary credits, the expense of financing,
the development of an export organisation, engaging own staff.
(iii) More Distribution Cost:
In this system, the distribution cost is more. In direct exporting, export
house has to undertake the responsibility of marketing, while indirect
exporting enables the manufacturer exporter to concentrate on
production problems, leaving the question of foreign selling to the
intermediaries.
Big and medium export firms generally prefer to appoint agents or
distributors in the foreign markets. In such a case, the exporting firm
must evolve a system of control and monitoring the agents for evaluating
their performance.
nternational Marketing Channels and Distribution Strategies 

2  In International Distribution, the Firm Sells to its Customers: 4through its own sales force 4through
independent intermediaries 4through an outside distribution system with regional or global coverage
Channel Structure Should be Designed to Manage 4physical flow of goods and services
4transactional flow 4informational flow 

3  Channel Design 4Customer characteristics 4Distribution culture 4Competition Company

Objectives 4Determined by company objectives for market share and profitability Character 4The
nature of the product impacts the design of the channel. 4The channel must match the positioning of
the product in the market. 

4  “Capital”:... describes the financial requirements for setting up a channel system. “ Cost”:...is the
expenditure incurred in maintaining a channel once it is established. Coverage: the number of areas
in which a product is represented and the quality of that representation 

5  Types of Coverage 4Intensive 4Selective 4Exclusive Control: The use of intermediaries will result
in some loss of market control. Control correlates with the type of product or service being marketed.
The marketer’s ability to exercise power determines the extent of control. 

6  Types of Power: 4reward 4coercive 4legitimate 4referent 4expert 

7  Continuity 4Channel decisions are the most long-term of the marketing mix decisions. 4Care must
be taken in choosing the right type of channel. 4Establishing continuity is the marketer’s
responsibility 4Continuity is expressed through visible market commitment. Communication
4...provides the exchange of information that is essential to the functioning of the channel 
8  Types of “Distances” that Cause Communication Problems: 4Social distance 4Cultural distance
4Technological distance 4Time distance 4Geographical distance 

9  Selection of Intermediaries 4Types of Intermediaries 4Agents 4Distributors 

10  Agents 4Foreign (Direct) 4Brokers 4Manufacturer’s Reps 4Factors 4Managing agents

4Purchasing Agents 4Domestic (Indirect) 4Brokers 4Export Agents 4EMCs 4Webb-Pomerene
4Commission agents 

11  Distributors 4Foreign (Direct) 4Distributors/dealers 4Import jobbers 4Wholesalers/retailers

4Domestic (Indirect) 4Domestic wholesalers 4EMCs 4ETCs 4Complementary marketers 

12  Types of Distribution: 4Indirect exporting 4Direct exporting 4Integrated distribution Sources for
Finding Intermediaries Government agencies Private sources Criteria For Screening Intermediaries
4Performance 4Professionalism 

13  The Distributor Agreement Includes: 4Contract duration 4Geographic boundaries 4Methods of

compensation and payment 4Products and conditions of sale 4Means of communication between
parties 

14  Channel Management 4Coordinating two independent entities with shared goals 4The
relationship needs to be managed for the long term Factors in Channel Management 4Ownership
4Geographic, cultural, and economic distance 4Different rules of law Gray marketers take unfair
advantage of trademark owner’s marketing and promotion 4Parallel imports deceive consumers by
not meeting product standards or expectations of after-sale service 

15  Arguments for Gray Markets 4The right to “free trade” 4Consumers benefit from lower prices
4Discount distributors have found a profitable market niche Solution: A Contractual Relationship that
Ties Businesses Together. 

16  Typical Reasons for the Termination of the Channel Relationship: 4Changes in the international
marketer’s distribution approach 4Lack or perceived lack of performance by the intermediary
4Termination conditions are the most important considerations in the distribution agreement and
must be spelled out clearly! 

17  Typical Export Documents Include: 4Bill of Lading 4Shipper’s Export Declaration 4Shipper’s
Declaration of Dangerous Goods 4Consular Invoice 4Certificate of Origin 4Import License 4Foreign
Exchange License 

18  Guidelines for Dealing with Customs: 4Knowledge and experience in dealing with a specific
country’s Customs Service 4Sufficient preparation of all required documents Support Agencies for
International Shipments 4International freight forwarder 4Customs broker 4Common carrier 

The Types of International Distribution

Channels
January 28, 2015 By Gilbert
Buying and selling are part of everyday operations. Consumers are an imperative part of
commerce. Manufactures’ will use a variety of methods to be able to reach them. The type
of method used will be determined by availability, cost and success of both the product and
method. Local and international distribution methods are used by the manufacturer to find
the most effective and productive way for their product to reach their consumer. These are
very different types of distribution methods that manufacturers will decide to use.

Zero Level Channel

Zero level channel or direct channel distribution is when a manufacturer sells a product
directly to the consumer. The transactions are done directly with manufacturing company.
This can be done as a local distribution or an international distribution. The complexity of it
will be determined by the method of sales used along with the location of the customers.
The increased use of the internet has made direct channel distribution more popular in the
last few years. Consumers can now buy directly from manufactures online, among other
options. This is great for consumers as they are not paying a markup from a third party. A
great example of local direct channel distribution would be Farmer’s Markets.

Level One Channel

Much as it sounds, level one channel distribution occurs when a manufacturer uses a
middle man to sell their product to a consumer. This is a great option for simple transactions
for international distribution. It is also convenient for consumers who like to see a product
first hand before purchasing. Examples of this include retail stores. With retail, a
manufacturer creates the product and sells it to the retail outlet, the retail outlet turns around
and sells it to the consumer. With level one channel distribution, the retail store is in direct
contact with the product manufacturer.

Level Two Channel

Level two channel distribution is seen regularly with large wholesale companies. These
companies produce very large volumes of products and do not have the resources or desire
to deal directly with the retail outlets that sell the product for them. In these instances the
manufacturer creates a very large volume of an item, this item is then sold to a wholesaler,
the wholesaler sells it to the retail store and then the retail store sells it to the consumer.
This works especially well with international distribution as many wholesale items are
created in one location and then sold around the world. One example of this would be
children’s toys. Many toy stores will sell the same type of toy. These toys were all
purchased from a wholesale provider; this provider purchased the toys from the
manufacturer.

Level Three Channel

Level three channel distribution is extremely common with the most popular products we
use. Soft drinks, brand name foods, hair and body products and many more use a three
level channel international distribution system. The third level of this system incorporates a
sales agent. Consumers purchase from a retail store, that retail store will purchase from a
wholesale company, the wholesale company orders their purchases from a sales agent, this
sales agent will deal with the manufacturer directly.

In this level of system, the wholesale company would contact the sales agent with
consumer demands and questions, they do not have direct contact with the manufacturer.
While it sounds like a cold and impersonal chain of command, it is very effective. Without
the sales agent, a consumer could spend months waiting on pertinent or relevant
information. The manufacture simply would not have time to be able to respond to those
needs. Assigning a sales rep, brings back a personal touch to the process and also gives
each region that they sell to a dedicated person or team to be able to properly monitor to
make sure their products are being distributed as demanded.

The best distribution method will depend on a large number of factors. The consumer, the
manufacturer, the volume produced, the volume purchased, and the location of the product,
along with the manufacturer and the budget needed to inform the public about the
manufactured product. Whether the choice is for local or international distribution, the
method used will play a large part on if the sale of the product becomes a success or
failure. Creating an item is only half the task; the other half is finding the best way to put it
into your consumer’s hands.

International distribution strategy

There are three ways to set-up global distribution of your products:

 International departments. Setting up international departments means that your brand

will directly enter another country’s market. This gives you complete control on
distribution, but elements like personnel, training, compensation and cultural background
should be considered.
 Working with distributors. Export management companies and export consultants can
arrange your product distribution in foreign areas. Distributors with experience in shipping
and importing have the fastest and easiest procedures when it comes to selling in the
foreign markets. These companies help in establishing your company overseas by
exclusively handling the distribution of your products.
 Online. Export has entered the internet and is now utilising online tools to send out
products into the world. This has threatened certain foreign distributors, in fear of their
services becoming obsolete within the global market. Although internet may take over the
 sales function, promotion and shipping continue to stay offline to a large extent. Local
distribution partners may play a role in this.

International distribution channels: how to find and manage them?

Finding a good foreign distributor takes time and funds, but an efficient foreign distributor could
bring in revenue in a fast and steady manner.
To get your desired distributor or retail distribution chain, you will need a clear product offering
and convincing arguments why a distributor would benefit from promoting it. How will your
product range bring him more profit than what he already has on the shelves? On the other hand,
you will have to check whether the distributor has enough reach and a good reputation.

Here are some more items for your evaluation checklist to identify the right distributor:

 You must first look into the company’s reputation - both its recent and long-running issues
must be carefully scrutinised.
 The company’s competitive profiles would come next. How they stand against other
foreign competitors and local favorites will provide you with an insight to their
performance.
 You must weigh the expectations of the company on your distribution support. Avoid
picking foreign distributors whose demands outweighs their services.
 Discussion of requirements for minimum inventory is also considered as an evaluator.
Foreign distributors will display their best performance, and it’s up to you to make them
prove their capacity. Choose a distributor that could work around the limitations of your
inventory.
When evaluating the candidates for your distribution, keep in mind how well they realise your goals
for sales revenue for their country. Perhaps you should not promise exclusivity and work with
multiple distributors.

Download our checklist '10 steps to find the right agent or distributor'

Online sales: often the cheapest way to test the market

Making use of local online platforms can be a good way to make your market entry. This way with
limited investments you can try out the market.

Step 1: use a drop shipping approach

Make sure that your product is available on the right local platforms and in the right language. As
soon as you get an order, you can ship the product directly to the end-customer. The right service
provider can do this for you, and also respond in the local language on any enquiries, requests or
claims.
Step 2: add local shipping
If volumes increase and become more predictable, you can make your product more attractive by
sending stock to to the country, so that you can offer shorter delivery times. Local fulfilment
parties can import your goods, keep your stock, and package and ship your products on demand.
This way you will save on shipping costs, and increase your margins, at least if you have the
volumes to overcome the monthly costs for storage and financing of your local stock.

Step 3: add offline

For a number of products it is useful to have offline sales outlets as well, if only for your customers
to touch, feel and try out your products. If the online sales of your product becomes substantial, it
will also become less risky for retailers to start distributing. Alliance experts knows the market, can
easily select the right retail chains and approach the most relevant distributors. Read more about
our matchmaking services.
Export distribution strategy
Distributors are like employees and customers in one. They represent your company and sell your
items like an employee while having extremely demanding requirements of a customer. Some
international distributors focus more on the business with regard to sales rather than technical
service.

Difficult technical problems are usually handled by suppliers while trivial technical issues and
support are covered by the distributor. Ideally, there should be a good rapport between the
distributor and the supplier to optimize distributor performance.

An important factor in the relationship is the distributor margin. You will have to see what a
reasonable retail price is, and which part of the margin between the retail price and your cost price
you should give away to the distributor (and possibly retailer). Balancing these margins will also
help balancing the relationship.
Always be aware on which way the dependency works: is the distributor dependent on you or are
you dependent on the distributor. Especially where it comes to large scale retail chains and
supermarkets you may have to pay first to get your product on the shelves: listing fees or slotting
fees.
Channel conflicts and management
If you use your own sales force, distributors and online sales in combination, then you may get
channel conflicts. Your distributor may feel uncomfortable if sales is moving to online, especially if
he has put in a lot of effort to open the market. This requires good financial agreements but also a
good relationship with your distributor.

Here are a few steps in ensuring a smooth supplier and distributor bond:

 By sharing your vision, practices, and resources with your distributors, you can create a link
of trust that could harmonize mutual benefits. This could also keep your distributors
interested in the kinds of service you will offer to them.
 You should be willing to help your distributor’s business succeed in their endeavors. To
achieve this, you should know your distributor’s company like the back of your hand to
 create an impact on your trade relationship. In this way, you’ve also garnered their respect
for your company and their sincere assistance to help you reach your ultimate goals.
 Feedback from end customers is essential in creating a harmonious relationship between
you and your distributors. Feedback can call out service or item incidence regarding your
items. As a supplier, this feedback could improve your service and items, which in turn,
increase the sales and positive image of your distributors.
 For your international distributors, it is necessary to learn about the culture and traditions
of your distributor to avoid being intrusive or seem dictatorial to them.
Distribution plays an important role in the implementation of the international marketing
programme as it enable the products and services to reach the ultimate customer. An
international marketing firm has the option of managing its distribution function either
directly or indirectly through middleman or a suitable combination of the two.

Following are the distributions channels in International market

Indirect Distribution: Indirect channels are further classified based on whether the

international marketer makes use of domestic intermediaries. An international marketer
therefore can make use of the following types of intermediaries for distribution in foreign
markets.

 Domestic Overseas Intermediaries

1. Commission buying agents

2. Country controlled buying agents
3. Export management companies (EMCs)
4. Export Merchants
5. Export agents
6. Piggy backing

 Foreign Intermediaries

1. Foreign Sales Representatives

2. Foreign Sales Agent
3. Foreign Stocking and Non-Stocking Agents
4. State Controlled Trading Companies

Direct Distributions: The options available to international marketer in organizing

direct distributions include sending representatives abroad from the headquarters,
setting up of local sales/branch office in the foreign country of for a region establishing a
subsidiary abroad, entering into a joint venture or franchising agreement.
Companies having long-term interest in international marketing find it expedient to
deploy their own sales forces in foreign markets. This helps them in increasing their sale
volume through committed market development activities, better control and motivation
of foreign intermediaries being used and paving the way for smoother transition to direct
distribution and marketing.

Description:
The concept of international distribution channels is the international distribution channels the
flow of goods in international marketing channels. It is by the manufacturer to foreign consumers
(users) through which the channel transfer, but also refers to the manufacturer after (or without)
the transfer of international intermediaries to the final foreign consumers (users) of all market
structure. International distribution channels, compared with the difference between the
domestic distribution channel structure of the Department is not the choice of channels in the
decision-making that affect changes in market factors; the same time, the international
distribution channel consists of two parts, first enterprises to enter international market channel
through which channels between countries; second of the domestic distribution channels.