Distribution in International Marketing Strategy

Distribution partners build international market success.

Distribution plays a key role in the success of international marketing strategy. It ensures that a company can deliver products and services to international customers efficiently and cost effectively. Members of the distribution channel also provide an important local marketing resource that enables a company to increase market share or enter new markets with the backing of local knowledge and established business relationships. Companies developing a global branding strategy can use a distribution channel to extend their brand into new territories.

Control

Companies can manage international distribution in a variety of ways from operating wholly-owned subsidiaries to partnerships with independent or franchised organizations. Using independent distribution organizations eliminates the direct costs of building and operating a local infrastructure. However, the indirect approach gives a company less control over the day-to-day marketing and customer service operations in the local market. Companies who work with independent distribution partners put training, support and administrative programs in place to help the channel deliver a quality service to customers.

Territories

Companies operating globally generally manage their markets by three main areas--Americas, EMEA (Europe, Middle East and Africa) and Asia. The distribution strategy can vary by territory within those broad groupings. If a company offers different products to different territories, it would need to select distribution channels with the appropriate level of sales, technical and support skills in each territory.

Networks

Efficient information exchange between a company and its distributors is essential so that all parties can respond rapidly to change or new opportunities. Internet communications and the availability of secure global data networks make it possible to link partners located anywhere in the world.

Marketing

Distributors can operate as basic logistics partners or offer a wider logistics and marketing service, using their local knowledge to help companies increase market share. Companies can improve the effectiveness of local marketing by providing product training, campaign funding and communications material adapted for use in individual territories.

Branding

Companies with strong established domestic brands can use the distribution channel to develop a global brand strategy. By encouraging distributors to adopt some or all of its brand names and identity, a company can build on its reputation in wider markets. This can benefit both parties, driving business to the distributor and reducing brand-building costs in the local market.

Resources

• "International Marketing: Strategy and Theory"; John Shaw et al.; 2008
• "Harvard Business Review"; Seven Rules of International Distribution; David Arnold; 2000