GMS 522 Chapter 9 International Services Marketing

Distribution Channel

·         Sequence of firms involved in making product available to final consumer of buyers

o    Flow of product, information and titles

·         Could be simple of complex


Options for Global Distribution

·         Sell directly to consumer through own sales for (foreign sales subsidiary)

·         Independent intermediaries (distributor in foreign country)

·         Company outsources distribution to third party company in foreign market (example in textbook)

·         Electronic distribution (sell directly to customer online)


Channel Design


Length: number of level of different types of intermediaries in the channel

Width: number of institutions of each type of channel
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