International
Marketing
Week 7
Understanding Global
Supply Chains and
Distribution Strategies
Dr Daniel Osei Yeboah
What is Distribution in International Marketing
▪ The process of making a product available to consumers in different
countries and regions.
▪ Involves selecting and managing channels through which products
move from the manufacturer to the final consumer.
▪ The Place element of the 4Ps of marketing (Product, Price, Place,
Promotion) focuses on ensuring that products are accessible at the
right location, time, and condition to meet customer demand.
Types of International Distribution Strategies
▪ Intensive Distribution: Making the product widely available in many
locations (e.g., FMCG products like Coca-Cola).
▪ Selective Distribution: Limiting the number of outlets to maintain
brand positioning (e.g., luxury brands like Gucci).
▪ Exclusive Distribution: Granting sole rights to a distributor in a
particular region (e.g., high-end cars like Ferrari).
Role of Distribution in International Marketing
▪ Ensures availability of products across different markets
▪ Affects pricing, customer satisfaction, and market competitiveness
▪ Helps overcome geographical and cultural barriers
Key Components of International Distribution
[Link] Entry Strategy (Direct vs. Indirect Distribution)
[Link] of Distribution (Wholesalers, Retailers, Agents)
[Link] (Importers, Exporters, Distributors)
[Link] Preferences & Expectations
Working with Channel Intermediaries (1 of 2)
1. Select distributors - don’t let them select you
2. Look for distributors capable of developing markets, rather than those with a few
good customer contacts
3. Treat local distributors as long-term partners, not temporary market-entry vehicles
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Working with Channel Intermediaries (2 of 2)
5. Support market entry by committing money, managers, and proven marketing ideas
6. From the start, maintain control over marketing strategy
7. Make sure distributors provide you with detailed market and financial performance
data
8. Build links among national distributors at the earliest opportunity
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What is Logistics in International Marketing
▪ The process of planning, implementing and controlling the efficient
movement and storage of goods, services, and related information
from the point of origin to the final consumer across international
borders.
▪ It plays a vital role in ensuring that products reach global markets on
time, in good condition, and at an optimal cost.
Key Logistics Functions in International Marketing
▪ Transportation (Modes: Air, Sea, Rail, Road)
▪ Warehousing & Storage (Regional Distribution Centers)
▪ Inventory Management (Balancing supply & demand)
▪ Order Fulfillment & Customer Service
▪ Risk Management (Delays, damages, legal compliance)
Transportation in International Logistics
• Comparison of Transport Modes:
• Air Freight: Fast but expensive
• Sea Freight: Cost-effective but slow
• Rail & Road Transport: Suitable for regional trade
Transportation
Mode Reliability Cost Speed Accessibility Capability Ease of Tracing
Rail Average Average Average High High Low
Water Low Low Slow Low High Low
Truck High Varies Fast High High High
Air High High Fast Low Moderate High
Pipeline High Low Slow Low Low Moderate
Internet High Low Moderate to Moderate; increasing Low High
fast
• Channel Strategy - analyzing each shipping mode to determine
which mode, or combination of modes, will be both effective
and efficient in a given situation
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Factors affecting transportation choice
▪ Nature of the product
▪ Cost considerations
▪ Speed & delivery time
▪ Distance & geographic factors
▪ Market demand & supply chain efficiency
▪ Security & risk factors
▪ Regulatory & legal constraints
Warehousing & Storage
• Centralized vs. Decentralized Warehousing
• Role of Third-Party Logistics (3PL) Providers
• Impact of technology (automation, real-time tracking)
Challenges in International Distribution & Logistics
▪ Cultural and Legal Differences
▪ Tariffs, Trade Barriers, and Customs Regulations
▪ Infrastructure and Technology Disparities
▪ Currency Fluctuations and Economic Uncertainty
▪ Environmental and Sustainability Concerns
Strategies for Effective Distribution & Logistics
▪ Partnering with local distributors & logistics providers
▪ Using digital supply chain management tools
▪ Implementing sustainable logistics practices
▪ Leveraging trade agreements & free trade zones
▪ Continuous monitoring and risk mitigation
THANK YOU
Questions and Answers
