Why is global distribution more difficult than domestic distribution - Essay Example

Distribution is one of the main parts of marketing. There are actually many kinds of distribution channels. This could include wholesalers, retailers, agents, direct sales, and the overseas and Internet distributors. When products are manufactured, they are normally shipped to the distributor. The distributor then puts them in the market in some ways for the customers or retailers to buy. According to Philip Kotler, another distinguished professor of International Marketing said that the distribution channels can have several levels (www.wikipedia.org).

He stated that the simplest level, otherwise known as the "zero-level" channel, has no intermediaries engaged. The next level, called the "one-level" channel, presents one intermediary such as; for manufacturing goods a distributor and in consumer goods a retailer. It would be practical if these two levels are applied in small markets. However, in larger markets, the "second-level" is more appropriate to use. A wholesaler, for instance is largely used to expand the distribution to the great number of a few, neighborhood retailers.

Global distribution is a type of distribution wherein products manufactured by a company are delivered to all the markets worldwide. Although there are some difficulties with which how products are distributed, the good thing is that a manufacturer has a bigger chance of getting more income. With global distribution, one must make sure of so many things such as what to use as mode of transportation, how to distribute them properly to all the distributors from around the world, what are the ways of communicating with the distributors, and how to make sure that the products are best kept safe until they are bought by customers.

When a company decides to do a global distribution, its main priority is to successfully deliver its products to the consumers so that they win the confidence of their customers and even gain more prospective buyers in the process. If by no means, this becomes a success, the company would surely gain more profit thus, it shall also be good news to its customers. Not only are the customers going to get high-quality products, they may also be able to buy these products at lower prices in the future.

What is domestic distribution While global distribution is concerned with the distribution of products in most parts of the world, domestic distribution is only concerned with the distribution of products within a certain range. For instance, if a company is based in one country, then with domestic distribution, the products are only distributed in that country. Moreover, if there are companies in some parts of the world, then those countries where these companies are located are only the ones being distributed by the products.

One might say that this is a selfish thing to do, however, with domestic distribution, manufacturers are ensured immediately that their products are transported successfully and quickly. There are many reasons why most companies are into domestic distribution. For one thing, it requires fewer expenses. Another thing is that manufacturers can immediately know how their products are doing on the specific places they have distributed their products. Communication is very important when it comes to business.

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