Describe the whole-channel concept of international marketing
What will be an ideal response?
Many US manufacturers think their job is done once the product leaves the factory. They should instead note how the product moves within the foreign country and take a whole-channel view of distributing products to final users. The whole-channel concept consists of:
• a seller
• seller's international marketing headquarters
• channels between nations
• channels within foreign nations
• final buyers
Thus, there are three links between the seller and the final buyer. In the first, seller's international marketing headquarters, the export department or international division makes decisions about channels and other marketing activities. The second link, channels between nations, gets the products to the borders of the foreign nation. Decisions made in this link include the types of intermediaries (agents, trading companies), type of transportation (air, sea), and financing and risk management. The third link, channels within foreign nations, gets products from their entry point to final buyers and users.
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