DIRECT AND INDIRECT EXPORTING

Direct exporting: The company sells to a customer in another county. This is the most common approach employed by companies taking their international step because the risks of loss can be minimized. In direct exporting: usually means that the company sells to buyer in the home country who in turn exports the product. Customer include large retailers such as wal mart or sears, wholesaler supply houses, trading companies, and other that buy to supply customers abroad ex: Americas largest exporter

Licensing
International Joint venture Franchising Wholly owned subsidairies

International Channel of distribution

The distribution process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers

Distribution patterns

General patterns Retail patterns home country middle men

Foreign country middle men

General patterns
Middlemen Services Product Line Breadth Costs and Margins Channel Length Nonexistent Channels Blocked Channels Stocking Power and Competition

Retail patterns

Retail Size Patterns Direct Marketing Resistance to Change

Alternative Middleman Choices

Home country middlemen

Manufacturers retail stores Global retailers Export management companies Trading companies Export trading companies Complementary marketers Manufacturers export agent Home country brokers

Buying offices
Selling groups Webb Pormerene export associations

Foreign sales corporation

Export merchants Export jobbers

Foreign country middlemen

Manufacturers representatives Distributors

Foreign country brokers

Managing agents and compradors Dealers

Factors affecting choice of channels

Cost Capital requirements Control Coverage Character continuity

Ware housing

Warehousing constitutes an important segment of the physical distribution management . The need for warehousing in a corporate unit may arise for the following reasons

Necessity of warehousing for export marketing

Break bulk

Re assembly

Seasonality

Variation in demand
Speculation Product conditioning

Air transportation

Air transportation provide only world wide transportation network which make the essential for global business tourism .it play vital role in facilitating economic growth particularly in developing country.

Advantages air transporation

Low inventory carrying costs Decreased capital costs of goods in transit less packing lowers cost and reduces chargeable weight related surface transport costs are reduced the loss due to rough handling and pilferage is reduced to the minimum breakage is negligible deterioration is avoided obsolescence is eliminated insurance premium is reduced. Costs related to administration ,ordering etc are minimized.