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Global Marketing Channels and Physical Distribution

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Presentation on theme: "Global Marketing Channels and Physical Distribution"— Presentation transcript:

1 Global Marketing Channels and Physical Distribution
Chapter 12

2 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.

3 Most Effective Channel Arrangement

4 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

5 Marketing Channel Alternatives: Consumer Products

6 Marketing Channel Alternatives: Industrial Products

7 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

8 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

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

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

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


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