GLOBAL CHANNEL MANAGEMENT

Presented by : Group I

Ankush Agarwal
Alka Agarwal
Ankita Sharma
Kriti Nigam
Somnath Dash
Sunakshi Jain
Choosing The Market

 Size of the market

 Language and culture of the market
 Competition in the market
 Proximity of the market
 Political and financial stability of the country
Culture & International Business
 Understanding of culture is important
 Culture dictates the mode of dealing
 Language - knowledge of local language
 Culture’s influence on
 consumption

 usage of the product

Legal Aspects

 Understanding legal aspects of the country (Tata)

 Protection of intellectual property rights
(copyrights, patents)
 Process patents to product patents
 Product liability insurance certificate
Risks Involved

 Major risks
 Political risk - disruption of contracts or payments due
to coups and wars
 Financial risk– the failure of buyer company to pay as
per contract due to bankruptcy.
 Commercial risk – involve sudden change in the
situation in the buyers’ s country.
 Selling In International Markets
Trade between countries occurs because
 Scarcity of natural raw materials
 Cost advantages

Why international markets

 A saturated domestic market
 International market offers large and profitable opportunities
 Excess capacity which the domestic market can not absorb
 Cost advantage over international competitors
 Companies foresees increased competition in the domestic
market
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 Distribution In International Markets
 Distribution becomes important because
 Distance from the manufacturing base
 takes time to transport
 Involves crossing international boundaries
 completion of procedures and formalities
Types Of Distribution Channel
Choice of channel depends upon
 Product being marketed
 Positioning of product
 Size of market
 Level of development of market
 CHANNELS
 Commission agents - would not buy the product, but would
solicit business from buyers and arrange payments
 When volume grows – Distributers – import, stock and sell
products
 Own office with a resident representative – developing
customers and ensuring requirements are met
 Invest in market with long term perspective – Joint venture
or wholly owned subsidiary
Role Of Logistics Companies
Logistics – important – distributing products to many
countries involves
 multiple modes of transfer
 Trade across national boundaries
 Complex documentation and payment procedures
 Profile Of An International Sales Person
In addition to the qualities of a good sales person, the
international salesperson needs the following qualities
 The ability to speak in one or more international languages
 The ability to adapt to foreign culture (food, drinks etc.)
 The ability to act independently and decisively
 A pleasant and amiable personality
 The ability to understand product, pricing, financing of sales,
instruments of payment and foreign exchange risks

The company may appoint local persons as sales executives.

 Appointing of women in sales job must be decided based on culture of

country
Pricing And Payment Ters In International Trade

 Ex works
 FOT
 FAS
 FOB
 C&F
 CIF
 Currency Of Pricing
 Risk involved - fluctuation of the value of the currency of
pricing
 Depreciation of the local currency benefits the exporters
but hurts the importers
 Seek professional advice
 Banks offer - Forward contracts & options to hedge risk
 Banks also offer forfeiting facilities
Packing And Shipping
 Buyers tend to specify the type of packing required.
 Packing must show the contents and specify the origin,
weight, and quantity of the item inside
 Shipments done in containers ( safer and easier to
handle) – Inland container depots (ICD’s) setup in India
 Due to increased competition, just-in-time (JIT) is
important
 Market Intelligence And Research
 Collecting primary and secondary data for market
research
 Sources of Secondary data are:
 Embassies/ consulates of the importing duty
 Indian missions in the host country
 Trade and industry organizations (FICCI,CII)
 Chambers of commerce and industry in importing country
 Commercial banks
 EXIM Bank
 ECGC
 Trade journals and publications
 Internet
THANK YOU