International Distribution

Course Contents

Module I: International distribution

1. Introduction to international distribution
2. Indirect Exports
3. Consultancy
4. Associated Exports Consortia
5. Trading Companies
6. e-Distribution

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Module Summary. In general, it would be ideal for an exporter to be able to sell direct to his final client with no need for intermediaries. In this way the exporter: reduces cost of sales, increasing the product's competitiveness; is in direct contact with the market, obtaining a continuous feedback of information; he can control the company's marketing policy directly. However, the truth is that this is not always possible (due to the costs involved or market idiosyncrasies) and in these cases the company should seek an intermediary.

Module II: Direct/Indirect Exports. Contents:

1. Importer
2. Representative
3. Company Personnel
4. Sales Subsidiary
5. Production Subsidiary
6. License
7. Franchise
8. Other Channels

Objectives. In this module you will learn about the channel options that may be used when entering new export markets. We are going to examine the direct and indirect export channels open to the exporter, analyze the functions of importers and representatives, discuss the use of company personnel and sales or production subsidiaries as well as explore franchising, licensing and other channels.

Module III. Sales Network Management. Contents:

1. Sales Network Management
2. Representation Contracts
3. Search Methods
4. Control Representatives Work

Objectives. The main objective of this module is to understand the process of evaluating, recruiting and managing sales representatives.
Module Summary. In this unit we will analyze the most appropriate profile of a foreign trade representative or agent, how to find him, how to apply control mechanisms, etc. What we must keep in mind is that the representative or agent is only useful when he starts to sell. Finding the agent isn't the end in itself, rather obtaining orders through him.

Module IV. International Sales Hypermarkets. Contents:

1. Purchasing Department
2. Delegated Agents

Objectives. Understand the mechanism involved in selling into department stores and hypermarkets.
Module Summary. In this unit you will learn about selling into hypermarkets and department stores. You will outline the organization of a purchasing department. You will learn how to best approach department stores. You will examine the role of purchasing agents. You will analyze an interview with a purchasing manager.

In this unit we will analyze how e-business can influence international distribution. We believe that companies nowadays should look at digital distribution strategies. We see a business environment changing from consolidated multinational companies with established distribution channels selling "atoms" to pure Internet start-ups which only sell "bits". When we think about "bits" products we automatically think about digital distribution over the net, a global, flexible, instantaneous distribution which in many cases will not be controlled by national customs controls. What's more, implementing digital distribution strategies can create tensions in our traditional distribution network if we cannot create synergies.