global marketing distribution
Post on 04-Dec-2015
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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
Target Market
Location Information requirements Preferences for service Price Sensitivity
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
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
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
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