|
What makes good international distribution? The answer may be as simple as satisfying the factors that need to be considered in order to select a distribution channel for a product, service, or commodity. While international distribution factors may include extraneous nuances such as foreign governmental policy and currency differences, for the most part the factors remain the same. These include: Product Type, Type of Market, Distribution Expense, Distributor Co-operation, Company Expertise, Payment, Product Demand, and Retail Structure. Product Type: The make-up of the product itself can influence its method of delivery to the buyer. Suppose a manufacturer creates visual programming for an international market? Then would the manufacturer go through a local distributor to get his product to the buyers? How would they know the hurdles of the world market? No, the solution would be to use an international distribution company to get that product to market. Type of Market: The method of distribution depends on knowing the type of market a company is attempting to break into. When faced with international distribution, the location of the buyer and the ability to analyze the purchasing habits of this buyer are key to determining where, or how the product will get to that market. Distribution Expenses: In the case of the world market, with direct selling, a producer will have to absorb all of the costs associated with international distribution, but if enough interest in the product is garnered by potential worldwide dealers, then distributing costs will be greatly reduced through the use of interested dealers. Distributor Co-operation: Through the build-up of trust and good faith through previous business dealings, methods of international distribution can depend upon mutual agreements between a producer of a product and various dealers. On the world market, this can enable to producer to sell their product at virtually no cost if dealer arrangements can be negotiated favorable enough. Company Expertise: In the case of international distribution, local companies may not have the knowledge to get a manufacturers product to the right world market. Factors can come into play providing an economic wall in the face of local companies that are unable to assess international buyer preferences, spending habits, governmental policy, currency rates and changes and other factors that only a company with world market experience has mastered. Payment: With international distribution, a producer may wish to deal as much as possible with cash for product, rather than Credit, because of the lack of knowledge of a worldwide, rather than local, marketplace. In such instances, the producer may wish to deal through a company that has experience with the world market and not a local company just wetting their feet onto the world stage. Product Demand: In the world market, the cost of international distribution can be nearly nullified if the product created by the producer is in high demand enough to force middlemen or dealers to purchase the product directly in order to resell to their own established customer base. Retail Structure: Methods of international distribution can be made less expensive through a manufacturer knowing the business structure of the seller. Information such as number of sales outlets, shopping convenience, level of service, and overall sales volume can help ease expense waste through thorough knowledge of distribution channels. Williams Worldwide Television focuses on international distribution that is designed to earn your profit. To know about distribution in international marketing strategy, you may also visit eHow.
Related Articles -
international, distribution,
| 
