1. Chapter Fifteen Managing Global Distribution Channels

2. Copyright © Houghton Mifflin Company. All rights reserved.15 - 2 Figure 15.1: Global Distribution

3. Copyright © Houghton Mifflin Company. All rights reserved.15 - 3 Figure 15.2: Global Marketing Channel Alternatives The Structure of the Global Distribution System

4. Copyright © Houghton Mifflin Company. All rights reserved.15 - 4 The Structure of the Global Distribution System (cont’d) Home Market Channel Members –Export Management Company –Export Agents –Direct Exporting –The Internet Foreign Market Channel Members –Import Intermediaries –Local Wholesalers or Agents –Retailers

5. Copyright © Houghton Mifflin Company. All rights reserved.15 - 5 Developing a Global Distribution Strategy Figure 15.3: Distribution Strategy

6. Copyright © Houghton Mifflin Company. All rights reserved.15 - 6 Developing a Global Distribution Strategy (cont’d) Distribution Density Channel Length Channel Alignment Distribution Logistics

7. Copyright © Houghton Mifflin Company. All rights reserved.15 - 7 Factors Influencing the Selection of Channel Members Cost Capital Requirement Product and Product Line Control Coverage Synergy

8. Copyright © Houghton Mifflin Company. All rights reserved.15 - 8 Locating and Selecting Global Channel Partners

9. Copyright © Houghton Mifflin Company. All rights reserved.15 - 9 Locating and Selecting Channel Partners (cont’d) Sources for Potential Distribution Partners Include: –U.S. Department of Commerce –Banks –Directories –Trade Shows –Competitor’s Distribution Partners –Consultants –Associations –Foreign Consulates

10. Copyright © Houghton Mifflin Company. All rights reserved.15 - 10 Managing Global Distribution Motivating Channel Participants Controlling Channel Participants

11. Copyright © Houghton Mifflin Company. All rights reserved.15 - 11 Gaining Access to Distribution Channels The Locked-Up Channel Alternative Entry Approaches –Piggybacking –Joint Ventures –Original Equipment Manufacturers (OEMs) –Acquisitions

12. Copyright © Houghton Mifflin Company. All rights reserved.15 - 12 Global Supply Chain Management Logistics Decision Areas Traffic or Transportation Management Inventory Control Order Processing Materials Handling and Warehousing Fixed Facilities Location Management Managing the Global Logistics System

13. Copyright © Houghton Mifflin Company. All rights reserved.15 - 13 Trends in Global Distribution The Growth of Larger-Scale Retailers An Increased Number of Globally Active Retailers Proliferation of Direct Marketing Growth of Online Retailing The Dominant Role of Information Technology