IBUS 465 Lecture Notes - Lecture 16: Direct Selling, Trade Barrier
7 Dec 2018
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Document Summary
Access to international markets is a key strategic marketing decision that follows the firm"s selection of the market entry mode. Once an entry mode has been selected, the firm must decide on how to distribute the product within the foreign market. Technological developments have helped accelerate channel evolution: data networks allow end-users to bypass traditional channels and deal directly with manufacturers; and digital orders make it easier to maintain appropriate levels of inventory in stock. Many new types of channels are also gaining ground. Customer (final consumer) characteristics are analysed by the following variables. Consumer product channels tend to be longer than industrial product channels because there is much more variety in consumers than there is in companies. Nature of products influence the choice of distribution strategy. Convenience products: low-priced, high-turnover and they require an intensive distribution network. Prestigious products: require shorter and narrower distribution channels.
