Channel Decisions

1
Channel Decisions

• Chapter 13
• Global Marketing

2
Distribution

• Distribution is the physical flow of goods
  through channels
• Channels are made up of a coordinated group of
  individuals or firms that perform functions that
  add utility to a product or service

3
Channels Create Utility
Place
Form
Time
Information
4
Distribution Terminology

• Distributor wholesale intermediary that
  typically carries product lines or brands on a
  selective basis
• Agent an intermediary who negotiates
  transactions between two or more parties but does
  not take title to the goods being purchased or
  sold

5
Marketing Channel Alternatives Consumer Products
(Fig 13-1)
6
Marketing Channel Alternatives Industrial
Products (Fig. 13-2)
7
Guidelines for Dealing with Channel
Intermediaries

• Select distributors dont let them select you
• Look for distributors capable of developing
  markets, rather than those with a few good
  customer contacts
• Treat local distributors as long-term partners,
  not temporary market-entry vehicles

8
Guidelines (cont.)

• Support market entry by committing money,
  managers, and proven marketing ideas
• From the start, maintain control over marketing
  strategy
• Make sure distributors provide you with detailed
  market and financial performance data
• Build links among national distributors at the
  earliest opportunity

9
Global Retailing

• Department stores
• Specialty retailers
• Supermarkets
• Convenience stores
• Discount stores and warehouse clubs

• Hypermarkets
• Supercenters
• Category killers
• Outlet stores

10
Global Retailing Categories
Fewer Categories
A Benetton, Ikea, Gap, CA
C Toys R Us, Virgin, Douglas, Spar
Own-label focus
Manufacturer brands focus
B Marks Spencer Migros
D Carrefour, IGA, Promodes
Many Categories
11
Global Retailing Market Entry Strategy Framework
Culturally Close
A Chain Acquisition
D Organic
Difficult to Enter
Easy to Enter
C Franchise
B Joint Venture
Culturally Distant
12
Physical Distribution and Logistics Management

• Order Processing
• Warehousing
• Inventory Management
• Transportation

13
Order Processing Activities

• Order entry
• Order handling
• Order delivery

14
Transportation Considerations

• Rail
• Truck
• Air
• Water
• Inland water transportation
• Ocean transportation
• Pipeline

15
Comparison of Transport Modes