GMS 522 International Services Marketing

Distribution Channel

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

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

Long vs Short Distribution

Short: perishable items, saving time to get to consumer, some cases cost saving...