1 MARKETING CHANNELS Services and International Channels Berman Chapter 14 Version 3.0

2 Services and International Channels 1. Channels for Services 2. Channels for International Marketing 3. International Channel Length and Width 4. International Physical Distribution 5. International Legal Aspects

3 1. Channels for Services types –rented-goods service –owned goods service –nongoods service characteristics –intangibility –inseparability –perishability –variability in quality

4 1. Channels for Services (cont) Activities for Intermediaries physical possession ownership promotion negotiation financing risking ordering payment

5 1. Channels for Services (cont) Types of service channels –direct or indirect intangibles –complexity of behaviors –types of facilitating goods Physical Distribution Concerns –supply chain logistics –service response logistics

6 2. International Marketing Channels Theories of Channel Choice –ethnocentrism, polycentrism, regiocentrism, geocentrism Specific International Channels –Home Market export management companies, export merchants and agents, direct exporting –Foreign Market exporting, joint venture, direct ownership

7 3.International Channel Length and Width Channel length decision making –transaction cost analysis –transaction specific assets –environmental uncertainty Channel width decision making –distribution density

8 4. International Physical Distribution export documents –bill of lading, shipper’s export declaration, import license, foreign exchange license, certificate of origin factors –standardization of documents, export automation software, foreign freight forwarders, customs agents, foreign trade zones examples –European Union (ISO9000), Eastern Europe, Japan( kieretsu)

9 5. Legal Aspects, International Channels Bribery -transaction, variance Controlled Goods Distributor Termination Packaging and Overpacking