Global Marketing Channels and Physical Distribution Chapter 12

Channel Objectives Place utility Time utility Form utility Information utility These utilities can be a basic source of competitive advantage and comprise an important element of the firm’s overall value proposition.

Most Effective Channel Arrangement

Distribution Channels Business-to-Consumer marketing Direct transaction Business-to-Business marketing Indirect Transaction Distributor A wholesale intermediary that typically carries product lines or brands on a selective basis Agent An intermediary who negotiates transaction between two or more parties but does not take title to the goods being purchased or sold

Marketing Channel Alternatives: Consumer Products

Marketing Channel Alternatives: Industrial Products

Establishing Channels and Working with Channel Intermediaries Direct Involvement Can entail considerable expense Requires a lot more management involvement Not beneficial for the company Indirect Involvement Consist of involvement with distributors Long-term commitment Cherry Picking The practice of accepting orders only from manufacturers with established demand for products and brands

Global Retailing Crossing national boundaries Not new Retail stores International trading Retail store operation Retail stores Amount of square feet/floor space Level of service offered Width/depth of product offerings

Retail Store Categories Department Stores Specialty Retailers Supermarkets Convenience Stores Discount Stores Hypermarkets Category Killers Outlet Stores

Cross-Boarder Retailing Great deal of caution What are the advantages? Innovation JC Penney Global Retailing Categories

Global Retailing Market Entry Strategy Framework Organic Growth Franchising Acquisition Joint Ventures