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Distribution. Role of channel members customs legal restrictions Structure of channels Channel development Infrastructure issues. Strategic Implications of Distributor Choice. Difficult to change as market changes or when performance is lacking Distribution choices affect costs.

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Presentation Transcript
Distribution
Distribution

  • Role of channel members

    • customs

    • legal restrictions

  • Structure of channels

  • Channel development

  • Infrastructure issues


Strategic implications of distributor choice
Strategic Implications of Distributor Choice

  • Difficult to change as market changes or when performance is lacking

  • Distribution choices affect costs


Roles of intermediaries
Roles of Intermediaries

  • Do wholesalers

    • Accept return of packaging materials?

    • Exchange defective products?

    • Take back unsold merchandise?

    • Provide merchandising support?


Retailers formats
Retailers--Formats

  • Level of

    • service

    • assortment

  • Tradition of where merchandise is sold

  • Location and convenience

  • (Inter)national vs. local chains


Legal constraints on retailing
Legal Constraints on Retailing

  • Restricted store hours

  • Preferences for small retailers

  • Product uniformity

  • Price maintenance/ selective discounts


Parallel distribution
Parallel Distribution

  • “Gray” market vs. counterfeiting

  • Gray markets--diversion from

    • authorized to unauthorized dealers within a country

    • lower cost areas (e.g., Mercedes Benz from Europe to U.S.)

    • temporary promotions in one region

    • highly taxed areas (usually through tourist purchases)


Effects of gray trade
Effects of Gray Trade

  • Brand equity

  • Relationships with established dealers

  • Legal liabilities

  • Complication of marketing strategies


Global promotion
Global Promotion

  • Do we take some approaches to promotion for granted?

  • What are some things that may not work in other cultures?


Promotion as a means of positioning
Promotion as a Means of Positioning

  • How do people see advertising and promotion efforts?

  • Promotion as a means to communicate

    • benefits of product

    • use of product

    • product image

  • Differences in desires by culture


Promotion strategic and tactical objectives
Promotion: Strategic and Tactical Objectives

  • Awareness

  • Trial

  • Attitude toward the product

    • Beliefs

    • Preference

  • Temporary sales increases

Emerging

Markets/

New Products

Mature markets

/established

products


Flops in the transplantation of advertising
Flops in the Transplantation of Advertising

  • Man and his dog

  • “A can a week is all we ask”

  • “Follow the leader--he’s on a Honda!”

  • Detergent ad

  • “Get your teeth their whitest!”

  • Marlboro man in Hong Kong


Product need satisfaction between cultures means end chains
Product Need Satisfaction Between Cultures (Means-End Chains)

  • Products serve fundamentally different purposes in different cultures; e.g.

    • bicycles

    • cars

    • toothpaste

    • clothing/fashion


Cultural dimensions in advertising
Cultural Dimensions in Advertising

  • Directness vs. indirectness

  • Comparative advertising

  • Humor appeal

  • Gender roles

  • Explicitness

  • Sophistication

  • Popular vs. traditional culture

  • Information content vs. fluff


Means of reaching targets
Means of Reaching Targets

  • Available media

    • outdoor media

    • radio

    • television

    • print media

    • direct mail

    • word of mouth

  • Existence of specialized magazines


Media developments
Media Developments

  • Cross-national media

    • satellite TV

    • international publications

    • Internet

      • Hype or way of the future?

      • Intended and unintended effects


Advertising standardization vs customization
Advertising Standardization vs. Customization

  • Problems in transplanting advertising vs. desire for global product image

  • Evaluating local advertising agents’ desire for autonomy

  • Compromise strategies


Targets of promotion
Targets of Promotion

  • Consumer

    • User

    • Shopper

    • Decider

    • Influencer

  • Industrial Buyer

  • Retailer

  • Distributor


Direct marketing
Direct Marketing

  • Types

    • Mailing

    • Catalog--non-mailed

    • Advertising based mail-order retailers

    • Television/ infomercials

    • Multi-level (“Pyramid”)


Direct marketing issues
Direct Marketing--Issues

  • Reliable postal/ delivery system

  • Consumer lists--by

    • Demographics

    • Prior purchase

    • Interests

  • Receptivity to mail-order


Legal issues in promotion
Legal Issues in Promotion

  • Media allowed for advertising

  • Comparative advertising

  • Price promotions

    • coupons

    • premiums


Price promotion
Price Promotion

  • Dangers of diversion

  • Longer channels may reduce chances of discounts being passed through

  • Stronger price-quality relationships may make discounts inadvisable


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