Summary The international marketer has a broad range of alternatives for developing a distribution system Three primary alternatives for using agent middlemen Agent middlemen Merchant middlemen Government-affiliated middlemen Channel structure varies Nation to nation Continent to continent Information and advice are available relative to the structuring of international distribution systems The Internet is challenging traditional channels, offering a wider range of possibilities for entering foreign markets Outside a corner candy stand in Shanghai, 10-year-old Zhang Xiaomei folds a piece of Wrigley’s Doublemint gum into her mouth—one of the more than 20 billion sticks the Wm. Wrigley Jr. Company will sell in China this year. To reach the flimsy blue plywood stand that serves this customer in pigtails, the minty stick traveled a thousand miles by truck, rusting freighter, tricycle cart, and bicycle—and it is still freshly soft and sugar-dusted at the time it is sold. That’s something of a wonder given the daunting scale and obstacles in the world’s largest developing country. Each market contains a distribution network with many channel choices whose structures are unique and, in the short run, fixed. In some markets the distribution structure is multilayered, complex, inefficient, even strange, and often difficult for new marketers to penetrate; in others, there are few specialized middlemen except in major urban areas; and in yet others, there is a dynamic mixture of traditional and new, evolving distribution systems available on a global scale. Mastering the distribution system is the single most important challenge of China’s economic revolution. This chapter discusses the basic points involved in making channel decisions: channel structures; distribution patterns; available alternative middlemen; factors affecting choice of channels; and locating, selecting, motivating, and terminating middlemen. Follow along with the slides (or open book) as we cover Chapt
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