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    6.global Marketing Channels & Physical Distribution

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    vinaypandeychand
    The document discusses global marketing channels and physical distribution. It covers selecting effective channel arrangements based on target market needs and preferences. Channel strategies can involve direct involvement through owned sales forces and retail stores, or indirect involvement through independent agents, distributors, and wholesalers. Channel selection is constrained by customer characteristics, product characteristics, middleman characteristics, and environmental factors. The document also discusses channel alternatives for consumer and industrial products globally.

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    Download as PPT, PDF, TXT or read online from Scribd

    6.global Marketing Channels & Physical Distribution

    Uploaded by

    vinaypandeychand
    693 views11 pages
    The document discusses global marketing channels and physical distribution. It covers selecting effective channel arrangements based on target market needs and preferences. Channel strategies can involve direct involvement through owned sales forces and retail stores, or indirect involvement through independent agents, distributors, and wholesalers. Channel selection is constrained by customer characteristics, product characteristics, middleman characteristics, and environmental factors. The document also discusses channel alternatives for consumer and industrial products globally.

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    global marketing channel

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    6.Global Marketing Channels & Physical Distribution

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    The document discusses global marketing channels and physical distribution. It covers selecting effective channel arrangements based on target market needs and preferences. Channel strategies can involve direct involvement through owned sales forces and retail stores, or indirect involvement through independent agents, distributors, and wholesalers. Channel selection is constrained by customer characteristics, product characteristics, middleman characteristics, and environmental factors. The document also discusses channel alternatives for consumer and industrial products globally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    693 views11 pages

    6.global Marketing Channels & Physical Distribution

    Uploaded by

    vinaypandeychand
    The document discusses global marketing channels and physical distribution. It covers selecting effective channel arrangements based on target market needs and preferences. Channel strategies can involve direct involvement through owned sales forces and retail stores, or indirect involvement through independent agents, distributors, and wholesalers. Channel selection is constrained by customer characteristics, product characteristics, middleman characteristics, and environmental factors. The document also discusses channel alternatives for consumer and industrial products globally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    The text discusses various marketing channels and considerations for selecting the most effective channel arrangement including target markets, customer needs and preferences, location, and price sensitivity. It also covers channel strategies involving direct and indirect involvement.

    Customer characteristics like number, location, income, shopping habits and reactions to different selling methods as well as product characteristics like standardization, perishability, bulk, service needs and price constrain a company's channel objectives.

    For consumer products, alternatives include door-to-door selling, manufacturer's own stores, franchise operations, and combinations. For industrial products, alternatives include manufacturer sales force, wholesalers, distributors and agents.

    Global Marketing Channels & Physical Distribution.

    Channel objectives & constraints.


    Channel Utility. o Place. o Time. o Form. o Information.

    Selecting the most effective channel

    arrangement.
    o Target market & determination of its needs & o o o o

    preferences. Where are potential customers located? What are their information requirements? What are their preferences for service? How sensitive are they to price?

    Channel strategy. o Direct involvement. Own sales force. Retail stores. o Indirect involvement. Independent agents, distributors, wholesalers.

    Company objective is constraint by several

    factors.
    o Customer characteristics.

    Number, geographic distribution, income, shopping habits & reactions to different selling methods. Industrial product, Mass market product. o Product characteristics. Degree of standardization, perish ability, bulk, service requirements & unit price. o Middleman characteristics. Middleman are in business to maximize their own product. Reluctance in building a market for new product. Distributive incentive.

    Selection & care of distributors & agents. Zero performance v/s excellent performance. Sourcing the information from local chamber of commerce. Talk to end users of the products. Agents / Distributor performance. Quality of agents. Quality of product. Margins offered.
    Termination. Clauses on performance & cancellation. Legal adversity. You should be able to read & understand the agreement.

    o Environmental characteristics.

    Economic, social, political environment.

    Distribution channels terminology & structure.


    Consumer products. o Door to door selling. o Manufacturers own stores. o Franchise operations. o Combination.

    Marketing channel alternatives Consumer products.


    M Manufacturers own retail outlet M Agents Brokers M MSF M MSF M MSF M

    Door to Door

    Mail Order

    Part time Sales person

    House Party

    Customer

    M=Manufacturer MSF=Manufacturer sales force

    Industrial products Channel alternatives.


    M M M

    MSF

    D or A

    Customer M=Manufacturer MSF=Manufacturer sales force W=Wholesaler D or A=Distributor or Agent

    Global retailing.
    o o o o o

    Hyper markets. Mass merchandisers. Discounters. Super markets. Super stores.

    International channel innovation.


    o Observations.

    Innovation takes place only in the most highly developed systems. The ability of the system to successfully adapt innovations is directly related to economic development. Environmental constraints. Adaptation is greatly accelerated by aggressive individual firms.

    Channel strategy for new market entry.


    o Company must use established channels.

    o Build its own channels.


    o Provide special incentives to independent channel

    agents. o Establishing direct distribution in a new market can also be expensive. o Expense of direct sales force acts as a deterrent to establish direct distribution.

    Physical distribution & logistic. Physical distribution & logistic are the means by which products are made available to customers when & where they want them.
    o Order processing.

    o Ware housing.
    o Inventory management. o Transportation.

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