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

2. 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.

3. 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

4. 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

5. 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.

6. Channel Strategy Major categories of channel utility are: Place Time
Form
Information

7. Channel Control Inventory financing Cumulative rebates
Merchandise returns
Promotional support

8. Networked Global Organization
Decentralized Federation Model
Networked Global Model HQ
Subsidiary HQ
Subsidiary

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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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.

16. 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

17. Advertising Strategy Agency Selection Criteria: Company organization
National responsiveness
Area coverage
Buyer perception

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