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International Channel System

In international marketing two categories of channels are involved, namely, channels between the nations and channels within the foreign market.

The international distribution system consists of two sub-system, namely, the domestic system and the foreign system. There are two ways of exporting, namely, direct exporting and indirect exporting. When the export is direct, the producer himself takes the responsibility for the marketing job and makes direct sale to any or more of the foreign customer. The important kinds of foreign customers (here the word customer is used to refer to the firm/person who buys the product from the exporter) – are importers, distributors, government departments, industrial buyers, retailers and consumer. If any of these customers is not a final consumer, he is a marketing middleman or a channel member between the producer and the final consumer.

Whether to sell directly to the customers or indirectly through agents or distributors will depend on the relatively strengths of the various factors involved.

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