Chapter 13 Global Marketing Channel Decisions Chapter 13 Global Marketing

Keegan and Green, Chapter 13 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

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

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

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

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

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

Keegan and Green, Chapter 13 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

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

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

Global Retailing Market Entry Strategy Framework Culturally Close A Chain Acquisition D Organic Easy to Enter Difficult to Enter C Franchise B Joint Venture Culturally Distant Keegan and Green, Chapter 13

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