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Channel Decisions

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. Channels Create Utility. Place.

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Channel Decisions

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  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 Keegan and Green, Chapter 13

  3. Channels Create Utility Place Form Time Information Keegan and Green, Chapter 13

  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 Keegan and Green, Chapter 13

  5. Marketing Channel Alternatives: Consumer Products Keegan and Green, Chapter 13

  6. Marketing Channel Alternatives: Industrial Products Keegan and Green, Chapter 13

  7. 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

  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 Keegan and Green, Chapter 13

  9. Department stores Specialty retailers Supermarkets Convenience stores Discount stores and warehouse clubs Hypermarkets Supercenters Category killers Outlet stores Global Retailing Keegan and Green, Chapter 13

  10. Global Retailing Categories Fewer Categories A Benetton, Ikea, Gap, C&A C Toys R Us, Virgin, Douglas, Spar Own-label focus Manufacturer brands focus B Marks & Spencer Migros D Carrefour, IGA, Promodes Many Categories Keegan and Green, Chapter 13

  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 Keegan and Green, Chapter 13

  12. Transportation Considerations • Rail • Truck • Air • Water • Inland water transportation • Ocean transportation • Pipeline Keegan and Green, Chapter 13

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