Chapter 15

Flashcards covering terms and definitions related to international marketing channels, focusing on concepts from Chapter 15.

Distribution Channel

The path traveled by a product from the manufacturer through middlemen to the end user, including all activities involved in transferring ownership.

Agent Middleman

A middleman who does not take title to the merchandise and is commission-based, arranging sales in foreign countries for a manufacturer.

Merchant Middleman

A middleman who takes title to goods, assumes trading risks, and is often criticized for not representing the best interests of merchandise.

Export Management Company (EMC)

A company that provides export services, beneficial for firms with small international volume or those not wanting to involve their own personnel.

Piggyback Marketing

A strategy where one company uses the foreign distribution channels of another company to sell its products, enhancing revenue and reducing distribution costs.

Cost and Control

The two most important factors in channel management; involves managing expenses and controlling the relationships with channel members like suppliers and middlemen.

Standardization vs. Localization

The debate over whether to use uniform strategies across markets or to adapt products and marketing to fit local preferences.

E-commerce

Buying and selling of goods or services using the internet, considered as a potential distribution channel.

Failure of Walmart in S. Korea

Walmart's unsuccessful market entry due to poor location choices and a mismatch between warehouse-style shopping and local consumer preferences.

Failures of Tesco in the U.S.

The experiences leading to Tesco's lack of success in the American market, marked by strategic misalignments and failure to meet consumer needs.