FMA 601 Foreign Market Analysis Module 6: Global Marketing Channels and Communication

In International Distribution The firm sells to its customers: directly through its own sales force. indirectly through independent intermediaries. indirectly through an outside distribution system with regional or global coverage. www.mygbs.org

Channel Configurations Manufacturer Manufacturer Originator Agent Agent Agent Agent Wholesaler Wholesaler Industrial Distributor Agent Retailer Agent Retailer Industrial Distributor Retailer Retailer Agent Consumer Industrial User Consumer / Industrial User Consumer Products Industrial Products Services www.mygbs.org

Channel Structure How to structure the distribution channels is the most important long-term marketing mix decision a firm may make. Channel structures are designed to manage multidirectional (horizontal and vertical) connections in: physical movement of goods and services transactional title flows information communications flows www.mygbs.org

Channel Design Considerations Customer characteristics What do they need, why, when, and how? Distribution culture The structural linkages and functional characteristics of existing channels. Competition What channels does the competition use? Company objectives Determined by company objectives for market share and profitability. www.mygbs.org

Channel Strategy Major categories of channel utility are: Place Time Form Information www.mygbs.org

Channel Control Inventory financing Cumulative rebates Merchandise returns Promotional support www.mygbs.org

Networked Global Organization Decentralized Federation Model Networked Global Model HQ Subsidiary HQ Subsidiary www.mygbs.org

Roles for Country Organizations Strategic Importance of Local Market High Low Strategic Leader Contributor High Competence of local animation Black Hole Implementor Low www.mygbs.org

Selling Versus Marketing Starting point Focus Means Ends Profits through sales volume Selling and promoting Factory Products MARKETING Starting point Focus Means Ends Target market Integrated marketing Profits through customer satisfaction Customer needs www.mygbs.org

Designing the Sales Force Decisions must be made regarding the numbers, characteristics, and assignments of sales personnel Different market requirements regarding direct sales and customer approach Territory allocation Customer call plans www.mygbs.org

Recruiting Marketing and Sales Personnel The largest personnel requirement abroad for most companies is the sales force Expatriates Numbers are declining Important for highly technical or involved products High cost Cultural and legal barriers Limited number of high-caliber personnel willing to live abroad www.mygbs.org

Motivating Sales Personnel National differences must always be considered when motivating the marketing force Individual incentives that work effectively in the U.S. can fail completely in other cultures Communications are important in maintaining high levels of motivation A company needs to make clear the opportunities for growth within the firm www.mygbs.org

Sales Promotions in International Markets Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation Short-term efforts directed to the consumer or retailer to achieve specific objectives In markets with media limitations the percentage of the promotional budget allocated to sales promotions may have to be increased www.mygbs.org

International Advertising Perform marketing research. Specify the goals of the communication. Develop the most effective message(s) for the market segments selected. Select effective media. Compose and secure a budget. Execute the campaign. Evaluate the campaign relative to the goals specified. www.mygbs.org

Growing Popularity of Global Advertising Spur short-term sales Build long-term product identities Significant savings in production costs Growth of pan-European or pan-Asian brands www.mygbs.org

Advertising Strategy Agency Selection Criteria: Company organization National responsiveness Area coverage Buyer perception www.mygbs.org

Result of your strategy Situation 1 Situation 2 Situation 3 Neither Reliable nor Valid Highly Reliable nor Not Valid Highly Reliable and Valid www.mygbs.org