Distribution in international marketing

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Physical distribution in international marketing : 

Physical distribution in international marketing Presented by: Under guidance of: Kalpesh kakadiya Mr. Ajay G. Pise Reg. No:090606008 Lecturer Pharmaceutical marketing Dept. of pharmacy management MCOPS , Manipal MCOPS , Manipal

CONTENT : 

CONTENT 1.Introduction 2. Marketing through distributor in foreign market 3. Marketing through firm’s own presence 4. Component of physical distribution 5.Documentation 6.Conclusion 7.Reference

Introduction : 

Introduction DISTRIBUTION Channels /Supply chain Physical distribution Agents / Logistics Wholesalers Retailers = intermediaries

Definition : 

Definition Physical distribution : Activities used to move products from producers to consumers and other end users Goal Of Physical Distribution Right Goods Right Place Right Time Right Quantity Right Support Services

Marketing through distributor in foreign market : 

Marketing through distributor in foreign market Initial distributor selection Distributor agreement Financial and pricing considerations Marketing support considerations Communication

Nike’s ‘Do it yourself’ : 

Nike’s ‘Do it yourself’ 1970s independent distributors successful brand at home 1980s established own subsidiaries overseas Now controls most subsidiaries even bought some distributors

Marketing through firm’s own presence : 

Marketing through firm’s own presence Firm has its own staff in market Still deal with existing wholesale, retail , transport system 1 .Wholesaling in foreign market Due to differences in the economy , level of development, and its infrastructure so varying in degree of efficiency size service pull strategy (heavy consumer advertising)

Cont’d : 

Cont’d 2. Retailing in foreign market Greater number , smaller size Retailing service like carrying inventory , product display promotion of product etc.

Wal-Mart’s remarkable success : 

Wal-Mart’s remarkable success The starting point was relentless focus on satisfying customer needs Wal-Mart goal - provide customers access to goods when and where they want them and develop cost structures that enable competitive pricing This was obtained by using a logistics technique known as cross-docking…

System Characteristics : 

System Characteristics Wal-Mart operates a private satellite-communications system Wal-Mart has a dedicated fleet of 1000’s of trucks that serve their warehouses

Component of physical distributionOrder Processing : 

Component of physical distributionOrder Processing Tasks Order entry Order handling Order delivery Electronic Data Interchange- computer integrated order processing with production, inventory, accounting, and transportation.

Slide 12: 

Many organizations provide hardware and software to make order processing more accurate and efficient

Inventory Management : 

Inventory Management Determining When To Order Reorder point Order lead time Usage rate Safety stock Just-in-time – approach in which supplies arrive just when needed for production or resale

Materials Handling : 

Materials Handling Cargo should be unitized or palletized Unitizing: Palletizing: Containerization – consolidation of many items into a single large container

Slide 15: 

Packing Two types 1.Consumer 2. industrial Some of packing problems Weight Breakage Moisture and temperature Pilferage and theft

Warehousing : 

Warehousing Receive, identify, sort, store merchandise Used to hold inventory as a buffer Demand for warehouses is a function of the need for inventory

Types Of Warehousing : 

Types Of Warehousing 1.Private – company operated facility 2.Public – It is rented space and highly seasonal demand. Distribution center-large, centralized warehouse that focuses on moving rather than storing goods

Transportation : 

Transportation Land Air water

Slide 19: 

Land- Necessary when goods in large quantity Europe and Japan – efficient train system less developed countries rely on road transport Air - Accounts for only 1 % of total international freight movement , for high value product. Water- Bulk shipping is important in international trade. three basic types 1.conference line 2.independent line 3.tramp vessel

Factors Considered InChoosing Transportation Mode : 

Factors Considered InChoosing Transportation Mode Market location Speed Cost Load Flexibility Accessibility

Slide 21: 

Odyssey meets customer needs by offering transportation options

Documentation: Shipping Documents : 

Documentation: Shipping Documents Export License Shipper's Export Declaration Form Hazardous Certificate Packing List Shipper's Letter of Instruction Dock Receipt

Documentation: Collection Documents : 

Documentation: Collection Documents Commercial Invoice Foreign Customs Invoice Consular Invoice Certificate of Origin Inspection Certificate Special Purpose Documents

Proportional Cost of Each Physical Distribution Function : 

Proportional Cost of Each Physical Distribution Function

Conclusion : 

Conclusion much more complex task than transportation of freight locally. In each foreign market ,the firm must analyze the logistic environment and infrastructure Modern technology can be a big help However, in the future, international marketing success may depend economic physical distribution of goods.

REFERENCE : : 

REFERENCE : 1.Vern terpstra , Ravi sarathy ; “international marketing” (8th edition): harcourt asia pte ltd. ; pp : 412-441. 2. “Physical distribution and inventory management”; available at http://www.mgtclass.mgt.unm.edu /.../13%20%20Physical%20Distribution%20Management (accessed on 29th January 2010) 3.“Modes of entry” ;available at http://www.marketing teacher.com/Lessons/lesson_international_modes_of_entry.htm(accessed on 30th January 2010) 4. “Introduction to physical distribution” ;available at www.cbpp.uaa.alaska.edu/afef/BA447-index.htm(accessed on 28th January 2010)

Slide 27: 

5.“Internatioanal physical distribution” available at www.emeraldinsight.com/10.1108/eb008243 (accessed on 29th January 2010). 6. Sak onkvisit , John J . shaw “international marketing” (3rd edition); pp :500-531.