The risks of distributing and selling goods and services in the global market

As this whole new frontier opened up, businesses realized there was a brand new opportunity out there for them to generate even more income. Indirect methods offer a number of advantages including: Supply and Demand Of course supply and demand will play a major role in trying to market your products anywhere in the world.

What is the goal achieved by understanding your distribution network? Licensing is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor".

The disadvantage is mainly that one can be at the "mercy" of overseas agents and so the lack of control has to be weighed against the advantages. There have been some embarrassing mistakes in international advertising that most likely did not help companies sell their product.

On the supply side the most critical factor has been the generous financial and other incentives, on the demand side, access to the EU, France, India and Hong Kong was very tempting to investors. The Government, via the Board, are the only permitted maize exporters. Distribution Patterns To better understand the distribution system used in a foreign country, marketers must never assume it is the same as what they practice domestically.

But the bakery down the street offers almost the same kind of decadent dessert. Most countries have an upper, middle and lower class, but the numbers of people in these classes can be significantly different from country to country.

In the latter the attempt is made to "globalise" the offering and the organisation to match it. Nali was able to grow into a successful commercial enterprise.

Pros & Cons of a Global Marketing Strategy

Alternatively, if exchange is being organised at national government level then the seller agrees to purchase compensatory goods from an unrelated organisation up to a pre-specified value offset deal.

In a push strategy the promotional mix would consist of trade advertising and sales calls while the advertising media would normally be weighted towards trade magazines, exhibitions and trade shows while a pull strategy would make more extensive use consumer advertising and sales promotions while the media mix would be weighted towards mass-market media such as newspapers, magazines, television and radio.

In the case of services, distribution is principally concerned with access. It is quite similar to the "franchise" operation.

It is distribution which gives meaning to the production. You also have to consider other societal and psychological factors that influence buying decisions in the country you are targeting to sell your goods or services to. It is interesting to note that Korey warns that direct modes of market entry may be less and less available in the future.

The tendency may be not to obtain as much detailed marketing information as compared to manufacturing in marketing country; however, this does not negate the need for a detailed marketing strategy. Retailing via smartphone or m-commerce is also a growth area. Advantages and Disadvantages[ edit ] The advantages of global market include: In the more prosperous countries it is taken for granted that you can buy goods internationally and pay for them with such things as credit cards, debit cards, online payment processors and cash transfer businesses, but that is clearly not the case everywhere in the world.

The ability to identify which elements or moments of an ad are contributing to that success is how economies of scale are maximized. This gives you instant presence, market intelligence, access to customers and complete quality control and infrastructure. When you want to market a product to a foreign country you need to first determine whether it is an individualistic society free-thinking culture or a collective society the peer group has the most influence on buying decisions.

Check if products and services require certification or licensing before export. If there is any dispute you will need to go through the US legal system for resolution.

Exporting to the USA

Political and Legal Factors A. Environmental Environmental factors will play a role in international marketing and they can have both a positive and negative effect on your international marketing strategy.

Not only do businesses have a great opportunity to grow their revenue if they market themselves internationally, but they will also run into a lot of obstacles that are not typically encountered in domestic marketing.

Or you could have a US mailing address using any of the many post office box services based across the 50 states. Gerber used the same packaging with the cute little baby on it they had used in America for packaging its baby food in Africa; they did not realize that with the high illiteracy rate in Africa that it was common for food packaging to display a picture of the contents inside.


Global strategies include "country centred" strategies highly decentralised and limited international coordination"local market approaches" the marketing mix developed with the specific local foreign market in mind or the "lead market approach" develop a market which will be a best predictor of other markets.

The global firm retains the capability, reach, knowledge, staff, skills, insights, and expertise to deliver value to customers worldwide. Each industry and country has a distribution network with many channel choices and structures that are unique and fixed- — at least for the short term.

Basically two separate contracts are involved, one for the delivery of and payment for the goods supplied and the other for the purchase of and payment for the goods imported. Competition continues to be market-based and ultimately relies on delivering superior value to consumers.

The more unstable the environment the less likely is the ownership pathway an option. Examples include switching from brick-and-mortar stores to online catalogues and e-commerce providers; switching from grocery stores to convenience stores or switching from top tier department stores to mass market discount outlets.

Governments do these things as a way of making sure a larger percentage of income from sales stays in the home country.A global leader in hydraulics components, for example, now manufactures products according to the local technical standards in a new market and bears some of the associated investment costs.

Global strategies include "country centred" strategies (highly decentralised and limited international coordination), "local market approaches" (the marketing mix developed with the specific local (foreign) market in mind) or the "lead market approach" (develop a.

Distribution of Goods, Income, And Services (NORM Webmaster Note: The World Book Encyclopedia and other standard reference books in recent decades have dropped their definition and description of the DISTRIBUTION deletion is unfortunate because, educationally-speaking, it prevents students and others from learning how closely their economic well-being is tied to the production.

6 essential advantages of proper distribution of goods and services

In order for global marketers to be successful, the availability and accessibility of products and service to customers is imperative.

Distribution channels make up the "place" in the 4 p's of the marketing mix (along with product, price and promotion). How to best deliver your goods to their intended destination can change drastically across international markets.

Franchising is a method of doing business by which a franchisee is granted the right to engage in offering, selling, or distributing goods or services under a marketing format which is.

Global marketing

DISTRIBUTION OF GOODS AND SERVICES. and the other extractive industries. For those goods produced for the market, the general merchant was the key distributor. The merchant bought goods of all types and was the ship owner, exporter, importer, banker, insurer, wholesaler, and retailer.

The risks of distributing and selling goods and services in the global market
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