International Distribution & Marketing Communication

Posted on Mar 19, 2025 in Marketing

International Distribution Channels

Short Distribution Channels:

  • Manufacturer → Final Consumer
  • Manufacturer → Retailer → Final Consumer

Long Distribution Channels:

  • Manufacturer → Wholesaler → Retailer → Final Consumer
  • Manufacturer → Wholesaler → Cash & Carry → Final Consumer

Functions of Distribution:

  • Transaction Function: Intermediaries between manufacturers and consumers.
  • Logistic Function: Intermediaries and retailers allow product diversification, storage, and transportation.
  • Product Availability and Acquisition Function: They provide information and advice to the buyer.

Different Access Strategies for Market Penetration:

  • Direct Access: Commercial agents, distributors/importers, branches, subsidiaries.
  • Indirect Access: Buying agents, trading companies.
  • Mixed Access: Consortium, franchise, joint venture.

Promotion and Marketing Communication

Communication can be advertising or promotion.

Communication Objectives and Strategies:

  • Promotion Strategies: To incentivize immediate purchase intention.
  • Advertising Strategies: To generate brand awareness and brand positioning.

Marketing Communication Tools:

  • Advertising
  • Promotion
  • Public Relations
  • Direct Marketing
  • Personal Selling

Types of Advertising:

  • COBA (Consumer Benefit): Shows the benefit to consumers.
  • Retail Advertising: Promotes a store.
  • B2B Advertising: Provides brand awareness to businesses.
  • Corporate Image Advertising: Promotes brand values.

Types of Promotion

Consumer-Oriented Promotion:

We address the target audience to accelerate/motivate the purchase decision.

  • Loyalty Programs (e.g., Dia)
  • Bonus Packs (e.g., 2×1, more quantity of the same product)
  • Contests (e.g., Instagram contests)
  • Premiums (e.g., Gift towel from McDonald’s, different product)
  • Samples
  • Coupons (Discounts)

Trade-Oriented Promotion:

We offer a short-term deal to a part of the supply chain to encourage stocking up or promoting our brand.

  • Allowances: Offering incentives for promoting the brand, with discounts for reaching sales targets.
  • Display Material: Cardboard stands placed in stores for special promotions.
  • Trade Incentives: Providing gifts to managers/employees for selling the product (e.g., Christmas wine).

Public Relations

  • Trade Shows & Events: Identify and meet new customers. Retain and entertain existing ones.
  • Sponsorship: A company (or brand) providing support for an event.
  • Product Placement: Reference to or inclusion of a product or service in some context in exchange for payment (or other consideration). Placement of a brand name.

Personal Selling

Personal selling is often the main form of marketing communication for industrial marketers. Salespeople demonstrate the advantages of the product.

The message conveyed should be consistent with the overall Integrated Marketing Communication (IMC) program. Be open to modifying the basic message to respond to the specific concerns of the target audience.

The role of the salesperson in delivering and reinforcing the brand’s positioning and marketing communication objectives is crucial.