International Distribution (Course, Master)

EENI Business School & HA University

Syllabus of the Online Subject: International Distribution, Direct exports, Sales network management.

The Subject “International Distribution” consists of three parts:

1- International Distribution.

  1. Introduction to international distribution policy
  2. Indirect exports
  3. Consultancy
  4. Associated exports
  5. Export Consortia
  6. Trading companies
  7. Distribution and e-business. Going international with e-business
  8. Case Study:
    1. Sogo Shoshas and Chaebols
    2. Toshiba
    3. The third Italy
    4. Mitsubishi Corporation
    5. Sanofi-aventis

2- Direct exports.

  1. Importers and distributors
  2. Representative
  3. Company personnel
  4. Foreign subsidiaries
    1. Sales
    2. Production
  5. Internationalisation
    1. Licences
    2. Franchises
  6. Other distribution channels
  7. Case Study:
    1. Set up a business in Costa Rica
    2. Sumitomo
    3. Itochu
    4. Rolls-Royce
    5. Renault-Nissan Alliance
    6. 7-Eleven
    7. Mango
    8. International Distribution networks in centralised economies
    9. Shoprite (Africa's largest food retailer)

3- International Sales Network Management.

  1. Selection criteria for searching representative and distributors
  2. Profile of the representative/international distributor
  3. Representation and distribution contracts
  4. Recruitment methods
  5. Control of representative's work
  6. International Sales:
    1. Purchasing departments
    2. Delegated agents
  7. Case Study
  8. Exclusive agent in two markets.
    1. “Grey” Networks
    2. Electrolux India

The eLearning Subject “International Distribution” is part of the following Online Higher Education Programs taught by EENI Business School & HA University:
  1. Diploma in International Marketing
  2. Professional Course in Global Marketing
  3. Masters: Foreign Trade and Marketing, International Business
  4. Doctorate in Global Trade

Online Student (Master International Business)

Learning materials in Master in International Business in English or Study, Master in International Business in French Distribution internationale Study Master Doctorate Business in Spanish Distribucion internacional Masters Foreign Trade in Portuguese Distribuiçao internacional

  1. Credits of the Online Subject “International Distribution”: 5 ECTS Credits
  2. Duration: 5 weeks

Area of Knowledge: International Marketing

The objectives of the Online Subject “International Distribution” are the following:

  1. To learn about the importance of planning an appropriate international distribution strategy when entering new export markets,
  2. To identify the distribution options available to exporter
  3. To outline the criteria to be used when selecting a distribution option
  4. To analyse strategies that can be implemented for consumer and/or industrial products
  5. To select the channel options, that may be used when entering new export markets
  6. To examine the direct and indirect export channels open to the exporter
  7. To analyse the functions of importers and representatives
  8. To discuss the use of company personnel and sales or production subsidiaries
  9. To explore franchising, licensing, and other channels
  10. To analyse the process of evaluating, recruiting, and managing international sales representative and the mechanism involved in selling into department stores and hypermarkets

This will be achieved by:

  1. Examining distribution options available to exporter
  2. Outlining the criteria to be used when selecting a distribution option
  3. Introducing strategies that can be implemented for consumer and/or industrial products
  4. Examining the characteristics of a sales representative
  5. Outlining the most important functions of a sales representative
  6. Analysing the process of recruiting a sales representative
  7. Detailing how best to manage the sales representative's work

In finishing this subject, the student will know the different possibilities that a company has for creating a network of international representative and negotiation factors with possible agents at the time of signing contracts.

Example of the Online Subject - International Distribution:
Direct exports

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Paterson Ngatchou: EENI Academic Coordinator for Anglophone Countries
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Description of the Online Subject: International Distribution.

In general; it would be ideal for an exporter to be able to sell directly to his customer with no need for intermediaries. In this way the exporter:

  1. Reduces sales cost
  2. Increase product's competitiveness
  3. Is in direct contact with the market
  4. Obtain a continuous feedback of information
  5. He can control the company's marketing policy directly.

However, the truth is that this is not always possible (due to the costs involved or market idiosyncrasies) and in these cases, the company should seek an intermediary.

We will analyse the most appropriate profile of a foreign trade representative or agent, how to find him or how to apply control mechanisms. What we must keep in mind is that the representative or agent is only useful when he starts to sell. Finding the agent is not the end in itself, rather obtaining orders through him.

We will learn about selling into hypermarkets and department stores. The student outlines the purchasing department organisation. The student will learn how to best approach department stores. The student will examine the role of purchasing agents and analyse an interview with a purchasing manager.

To help overcome the difficulties encountered in international markets; it may often be in the interests of small and medium size companies to resource a separate organisation for promotion and/or sale of their products (services) abroad. It is quite common in Europe. It consists of uniting the export departments of several companies to form one common one for use by all.

The option “growing from zero” of the export department which can be seen as the most efficient, is the creation of shared structures between various companies; what we will call “export consortiums.”

Trading companies are companies that sell domestically products produced abroad.

  1. They play a major role in giving an impulse to the foreign trade and operate as commission agents for the exporter.
  2. The Trading Company usually operates by finding a client who wishes to purchase a certain product somewhere in the World.
  3. These are clients who require a component that is almost unique and incorporated into their product so it can be difficult for them to find a vendor.
  4. The Japanese trading companies (Sogo Shoshas) or the corresponding in South Korea (Chaebols), are the ones that are furthest from the prototype of small companies described; they have a higher number of employees that allows them to specialise in specific products: cement, steel, heavy machinery and food.

Sales Subsidiary. This formula enables having much stricter control of the marketing policy. For the company, the creation of a subsidiary means a long-term investment. Thus, the company should make a series of really in-depth research studies, to prevent any mistakes. Alternatively, the company could create a sales subsidiary but only when the sales potential is high. Fully owned subsidiaries have been viewed as an international movement of capital. However, capital transfers are accompanied by technological flow, managerial control, and access to input and output markets otherwise unattainable to the receiving country.

The various formulae analysed so far correspond to what we could describe as a traditional distribution chain: from manufacturer to importer, from importer to wholesaler, from the wholesaler to the representative, from the representative to the sales point and from the selling point to the end user.

Once the necessary experience has been obtained; it cedes the opportunity to sell its products to those people or companies that wish to invest, creating a direct sales point similar to the one already set up.

Course Master: International Distribution

Finally, we will analyse how e-business can influence on international distribution. We believe that companies nowadays should look at digital distribution strategies. We see a business environment changing from consolidated multinational companies with established distribution channels selling “atoms” to pure Internet start-ups that only sell “bits.”

When we think about “bits” products we automatically think about digital distribution over the net, a global, flexible, instantaneous distribution that in many cases, will not be controlled by national customs controls. What's more, implementing digital distribution strategies can create tensions in our traditional distribution network if we cannot create synergies.

Shoprite Africa largest food distributor

Joint Ventures and International Distribution

Licences and franchises

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