It includes activities related to the promotion of goods and services.
The ownership title remains with the distributor even on completion of the transaction.
It includes buying and selling negotiations between middlemen and customers.
Middlemen do not play a role in the distribution process.
The relationship between the importer and any middleman is different from that found in a mass-marketing system.
The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the consumer is common.
These distribution systems are national rather than local in scope.
The marketing system develops around the philosophy of selling an unlimited supply of goods at low prices to a large number of affluent customers.
The costs of Japanese consumer goods are among the lowest in the world.
The Japanese distribution structure supports short-term dealer-supplier relationships.
Large stores serve an important role for Japanese consumers.
Japanese consumers favor personal service over lower-priced goods.
Honda Motor Company
Nissan Motor Company
The extremes in size in retailing are drastically different from those that are observed in wholesaling.
Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems.
Retailing shows greater diversity in its structure than does wholesaling.
Direct sales through catalogs have proved to be an unsuccessful way to enter foreign markets.
By using agents, the manufacturer maintains the right to establish policy guidelines.
they are less controllable by manufacturers than are merchant middlemen
they are frequently criticized for not representing the best interests of a manufacturer
they assume the risks of trading
they are more controllable by manufacturers than agent middlemen
they do not assume the risks of trading
they work on commission and arrange for sales in the foreign country
they represent the best interests of a manufacturer
It works under the name of the manufacturing firm.
It does not have direct responsibility to the parent company.
It acts as a middleman for companies willing to involve their own personnel in international functions.
It acts as a middleman for firms with relatively large international volume.
Issue a request-for-proposal to all distributors in the target market and evaluate their responses.
Consult other manufacturers of similar products and select the distributor recommended by them.
Consult trade organizations and select the distributor recommended by them.
Conduct a background check on all the distributors available in the target market.
advertising and promotion of goods
The language is easy to master.
It is a developing country.
It is an information-oriented culture.
It is a relationship-oriented society.
in relationship-oriented countries.
a low-technology product.
requires an extensive background of information.
a product that requires the most complete local knowledge.
fewer legal barriers
better understanding of distribution channels
narrowing of the cultural gap
elimination of the risk of employee-poaching
deterioration of product quality
lack of technological expertise
inadequate knowledge of the company
Managers have closer contact with their customers.
Companies are benefitted by diversity-driven creativity.
Managers possess complete local knowledge.
Problems related to cross-cultural communications can be avoided.
They will be better able to lead a company through referral networks.
They are more knowledgeable about the company and its product line.
They are likely to have superior technical expertise.
They are less likely to accept any form of bribe.
Foreign nationals have limited English communication skills.
Foreign nationals lack the knowledge of local culture and prevalent practices.
Foreign nationals cannot build a close relationship with subordinates and customers.
Foreign nationals are corrupt and often leak company secrets.
short-term virtual expatriate.
They are paid better than their U.S. counterparts.
They are expatriates who work from their home country.
U.S. firms have to pay double tax when hiring third-country nationals.
They are expatriates from their own countries working for a foreign company in a third country.
When working in a foreign country, they must be capable of taking decisions that are not influenced by the habits of the market.
They should consider their culture to be superior so that they can represent a positive image of their country’s products.
They should be hypersensitive to the behavioral variations in different countries.
They require emotional stability and a high level of flexibility.
high corruption levels
practice of cultural chauvinism
democratic form of government
emphasis on capitalism
An individual financial reward
Attraction of a foreign assignment
An individual commission system
existence of a personal career plan
opportunity to continue with cultural training
offer of increased compensation
existence of a family migration plan