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Global Marketing Channels and Physical Distribution

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. .

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Global Marketing Channels and Physical Distribution

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  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 • 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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