Marketing Management, Millenium Edition - epiheirimatikotita.gr

SellerSeller'sinternationalmarketingheadquartersChannelsbetweennationsChannels withinforeign nationsFinalbuyersF I G U R E 6-4Whole-Channel Concept forInternational Marketingthe borders of the foreign nation. The decisions made in this link include the typesof intermediaries (agents, trading companies) that will be used, the type of transportation(air, sea), and the financing and risk arrangements. The third link, channelswithin foreign nations, gets the products from their entry point to final buyersand users.Within-country distribution channels vary considerably among countries. To sellsoap in Japan, Procter & Gamble has to work through one of the most complicateddistribution systems in the world. It must sell to a general wholesaler, who sells to aproduct wholesaler, who sells to a product-specialty wholesaler, who sells to a regionalwholesaler, who sells to a local wholesaler, who finally sells to retailers. All these distributionlevels can mean that the consumer’s price ends up double or triple the importer’sprice. If P&G takes the soap to tropical Africa, the company might sell to animport wholesaler, who sells to several jobbers, who sell to petty traders (mostlywomen) working in local markets.Another difference lies in the size and character of retail units abroad. Large-scaleretail chains dominate the U.S. scene, but much foreign retailing is in the hands ofsmall independent retailers. In India, millions of retailers operate tiny shops or sellin open markets. Their markups are high, but the real price is brought down throughhaggling. Incomes are low, and people must shop daily for small amounts and arelimited to whatever quantity can be carried home on foot or on a bicycle. Most homeslack storage and refrigeration space to keep food fresh. Packaging costs are kept lowin order to keep prices low. In India, cigarettes are often bought singly. Breaking bulkremains an important function of intermediaries and helps perpetuate the long channelsof distribution, which are a major obstacle to the expansion of large-scale retailingin developing countries.DE C I D I N G O N T H EM A R K E T I N G O R G A N I Z A T I O NCompanies manage their international marketing activities in three ways: through exportdepartments, international divisions, or a global organization.EXPORT DEPARTMENTA firm normally gets into international marketing by simply shipping out its goods.If its international sales expand, the company organizes an export department consistingof a sales manager and a few assistants. As sales increase further, the exportdepartment is expanded to include various marketing services so that the companycan go after business more aggressively. If the firm moves into joint ventures or directinvestment, the export department will no longer be adequate to manage internationaloperations.386part threeDevelopingMarketingStrategiesINTERNATIONAL DIVISIONMany companies become involved in several international markets and ventures.Sooner or later they will create international divisions to handle all their internationalactivity. The international division is headed by a division president, who sets goalsand budgets and is responsible for the company’s international growth.The international division’s corporate staff consists of functional specialists whoprovide services to various operating units. Operating units can be organized in severalways. First, they can be geographical organizations. Reporting to the internationaldivisionpresident might be regional vice presidents for North America, Latin America,Europe, Africa, the Middle East, and the Far East. Reporting to the regional vice presidentsare country managers who are responsible for a sales force, sales branches, distributors,and licensees in the respective countries. Or the operating units may beworld product groups, each with an international vice president responsible for worldwidesales of each product group. The vice presidents may draw on corporate-staffarea specialists for expertise on different geographical areas. Finally, operating units