Transcript Introduction to Global Marketing

Channel Decisions
Chapter 13
Global Marketing
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
Keegan and
Green, Chapter 13
2
Channels Create Utility
Keegan and
Green, Chapter 13
3
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
Keegan and
Green, Chapter 13
4
Marketing Channel Alternatives:
Consumer Products
Keegan and
Green, Chapter 13
5
Marketing Channel Alternatives:
Industrial Products
Keegan and
Green, Chapter 13
6
Guidelines for Dealing with
Channel Intermediaries
• Select distributors – don’t 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
Keegan and
Green, Chapter 13
7
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
Keegan and
Green, Chapter 13
8
Global Retailing
•
•
•
•
•
Department stores
Specialty retailers
Supermarkets
Convenience stores
Discount stores and
warehouse clubs
Keegan and
Green, Chapter 13
•
•
•
•
Hypermarkets
Supercenters
Category killers
Outlet stores
9
Global Retailing Categories
Fewer Categories
Own-label
focus
A
Benetton, Ikea,
Gap, C&A
B
Marks & Spencer
Migros
C
Toys R Us, Virgin,
Douglas, Spar
D
Carrefour, IGA,
Promodes
Manufacturer
brands focus
Many Categories
Keegan and
Green, Chapter 13
10
Global Retailing Market Entry
Strategy Framework
Culturally Close
Easy
to
Enter
D
Organic
A
Chain
Acquisition
C
Franchise
B
Joint Venture
Difficult
to
Enter
Culturally Distant
Keegan and
Green, Chapter 13
11
Transportation Considerations
•
•
•
•
Rail
Truck
Air
Water
– Inland water transportation
– Ocean transportation
• Pipeline
Keegan and
Green, Chapter 13
12