ABSTRACT
Distribution can be very powerful in the development of market penetration worldwide. In fact, after defining the appropriate entry mode for a company targeting a foreign market, the dimensions to be determined are, on the one hand, the definition of distribution channels with all its members: organizations, agents, wholesalers, retailers, etc., who move the product to the final consumer. On the other hand is the organization of physical distribution, which involves logistics activities such as transportation, packaging, inventory, and storage of the product to be exported to another country. Designing and managing efficient international distribution networks should concentrate on giving the final customers product information and accessibility, maintaining profitable distribution,
partner relationships, and strengthening the company’s global marketing strategy. But the challenging issues are: what kind of influencing factors, such as differences in the macroenvironment, the competitive structure, or the distribution system, have to be taken into consideration when designing a distribution network internationally? Which managerial factors are relevant in channel and logistics decisions? What is the involvement level of retailers in the internationalization process? All these issues will be presented and discussed in this chapter, and the importance of distribution decisions in the company’s international marketing strategy will be emphasized.
