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MARKETING CHANNELS

Services and International Channels

Berman Chapter 14

Version 3.0

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Services and International Channels

• 1. Channels for Services

• 2. Channels for International Marketing

• 3. International Channel Length and Width

• 4. International Physical Distribution

• 5. International Legal Aspects

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1. Channels for Services

• types– rented-goods

service– owned goods

service– nongoods service

• characteristics– intangibility– inseparability– perishability– variability in

quality

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1. Channels for Services (cont)Activities for Intermediaries

• physical possession• ownership• promotion• negotiation

• financing• risking• ordering• payment

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1. Channels for Services (cont)

• Types of service channels– direct or indirect intangibles– complexity of behaviors– types of facilitating goods

• Physical Distribution Concerns– supply chain logistics– service response logistics

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2. International Marketing Channels

• Theories of Channel Choice– ethnocentrism, polycentrism, regiocentrism,

geocentrism

• Specific International Channels– Home Market

• export management companies, export merchants and agents, direct exporting

– Foreign Market• exporting, joint venture, direct ownership

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3.International Channel Length and Width

• Channel length decision making– transaction cost analysis– transaction specific assets– environmental uncertainty

• Channel width decision making– distribution density

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4. International Physical Distribution• export documents

– bill of lading, shipper’s export declaration, import license, foreign exchange license, certificate of origin

• factors– standardization of documents, export

automation software, foreign freight forwarders, customs agents, foreign trade zones

• examples– European Union (ISO9000), Eastern Europe,

Japan( kieretsu)

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5. Legal Aspects, International Channels

• Bribery -transaction, variance

• Controlled Goods

• Distributor Termination

• Packaging and Overpacking