[The purpose of the chapter i to presen our theretcal framework, Italy ve wall prevent
theories regarding international dzrbution chanel sonrimer goode. Theeaher ‘ee will
‘continue by precating theories rezarding how to select an itemationaldisributin char,
Filly we vill recent theories regarding channel managensrt.
2.4 International Distribution Channels
‘When 2 fim enters 2 market abroad, intemational distribution chamel stche is very
smoportaat. Distribution channel sructures are not caly dficul to change bu intial wrong.
decisions ay lead to poor rsulls (im, 1998) The following secions Wil present Bicres
ing iterations! dvibation chamnels of cannumer goede and dicrittion chamnel
tent
2.44 Intemational distribution channels of consumer goods
According to Tbber 2001) al products whatharthay be consumer s0ods,ndurtrial good: or
services require a chamel of cstibuton, Cznksta snd Ronkainen (2004) state that chanzels
can ray frm dre, roducerfo-sonsumer type to alakorate, multlevel cantels employing
sany types of intermediates, each serving 2 patialar purpose, The profucer te consumer
‘Arcuri ousiderad to ba 2 vary direct chanel compara to Zor example the producer to
gent to wholesale to retailer consume structure whith isan indirect channel aecoring to
Mallen (1996) Most istrsational finas would prefs fo rox a direct chanel when using the
‘armas own sales force, but stad they are forced to use ufermedane, 12
shane, bigh start-up certs and lou Inowledse Codho
‘31 2003) See figure] which shows fv altemative tr: of consumer channel.
Producer, Constner
Produce Ratner, Consumer
Producer
Wholesaler _y Retaler _, Connmer
Produce ————> AgestDistrbutor —> Retaler. —* Consumer
Producer —> AgmtDistibutor —* Wholesaler —F Retailer —* Consumer
Figure 2.1-Five altermtive consumer chamels
SOURCE: Adupted fom Jobber, 2001, p. 469, Coinkota & Roxkainen, 2004, p.335 amd
Abaum el, 1998, p. 196
Producer -concumar. Cuting out distributor prot marin may make this option attractive to
procucars, Direct sling between producer aad coneumer hae been feature of the meng
of Avon Cosmetics aad Tuppervare plaste conti. Direct marketag is of owing