An international company has to consider the social temperature and culture of the country
that it is placed in when deciding what distribution channels and marketing messages they
will use. They have to consider if the distribution channels available will allow them to
reach their target market and allow them the best possible outcome for sales an profit. For
instance, if your target market shops more on Sunday's, having a distribution channel that
does not operate on Sunday's would not be beneficial. Another example of this is how you
choose to market the product. You would not want to create a religious based message in a
country with strict religious rules or culture. It's important to study and learn the country and
culture you are running a business out of when planning marketing and distribution
channels. Another important thing to consider is the country that you are selling or shipping
products to. You want to make sure those distribution channels and the marketing messages
you are using are not offensive to your target audience and does not go against the rules,
social and cultural lifestyle if that country. An international company will change its channel
strategy based on country due to the existing conditions within each country. For example, if
a company that is used to distributing its product through channel partners and enters a
country where that channel partners are not necessary, or just do not exist, then they will
have to adapt.There are many ways to adapt, you can set up your own distribution enterprise
as part of the company and do it yourself, or you can also announce that there is demand for
a distribution system for your product and there will always be merchant types willing to
engage in this arbitrage. Obviously some countries will be easier to do this in than others.
One potential issue you can run into going into anther country if you need to setup your own
distribution is, they may have protectionist policies where they don't want you to crush their
local companies so they may prevent you from doing some of these things. Overall, the
easiest countries to extract money from are those that have the most liberal free trade
policies. In most countries, Apple uses a direct distribution channel, whereas India uses an
indirect one. In Western countries, Apple directly sells its products to customers in its stores.
In India, Apple sells its products through resellers or third-party sellers. In the international
market, Apple focuses its marketing strategy on providing customers with innovative
products and high-value services innovative products and high-value services to its
customers. In India, Apple focuses its marketing strategy on making customers want to look
cool and be a part of a ''special'' community. International distribution strategy is the process
of selecting the right export countries, finding the right distribution channels and positioning
your product or service in such a way that your sales starts to grow. This requires local
knowledge of the market and a well-structured plan.You should typically look for the
markets where your product category or the demand for your services is growing. this
provides the best chances, or you should have an "unfair competitive advantage that others
can't copy easily.With general country data or websites like Trademap, you can find
information to make a first selection of a few countries that may look promising. You can
also check what competition you can expect.If you want to enter a new market and
pertaining to choosing the right distribution channels, you can set yp your local sales:
Local departments -hiring staff and facilities and initiating all marketing yourself
Working with channel partners- distributors with experience in shipping and importing
Online- if your product is standardized and can be easily shipped, then online sales is
certainly an option. Considering distribution channels, such as direct and indirect channels,
international companies can change their distribution channels and/or marketing messaging
based on the country. A good example of this would be Apple Inc. by global development
and emerging into other international markets.
One thing Apple Inc. did was to expand and market its products globally and it was
successful with both direct and indirect distribution channels. For their direct distribution,
Apple Inc, created and set-up countless retail stores. This allowed the display and ease of
products, but also offered support for its customers. For their indirect distribution, they
provided suppliers and retailers internationally. For instance, one of Apple's largest suppliers
is located in China. However, they have other emerging markets in India, the Middle East,
and South America. I believe the reason countries are thriving is due to importing and
exporting goods and services. But in order to thrive, countries need to understand what the
target market is in the specific country. Not only that, but they also need to adapt their
communication channels as well. For example, if one country wants to expand their business
on trainings in cyber security, it would be most beneficial to look at countries with the
biggest IT industry such as India. Often times, if someone in the United States is looking to
expand their cyber security business, they’ll travel to India to gain some expertise or
additional training. Before traveling to do business with another country, such as India in
this example, it is beneficial to do research on how the natives of that country communicate
with one another. When trying to expand your business, if the natives see that you are trying
to at least embrace their culture or methods of communication, they’ll more than likely agree
to do business with you this bringing in more revenue.
