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What factors influence the channel structures and strategies available to global marketers? Canales de distribución. Angie Grisales Shuna Li. Distribution channels: objectives, terminology, and structure. Global Retailing "Retailing activity that crosses national boundaries" Physical. Global Marketing Channels & Physical l objectives & constraints. Channel Utility. o Place. o Time. o Fo.


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Chapter 13 Global Marketing Channels and Physical Distribution

Yap - FIU — MAR 5 Selection and Care of Distributors and Agents A wholesale intermediary that typically carries product lines or brands on a selective basis Agent An intermediary who negotiates transactions between parties but does not take title to the goods being purchased or sold — Chapter 13 Andrew P.

Yap - FIU — MAR 11 Global Retailing Market Entry Strategy Framework Organic Growth When a company global marketing channels its own resources to start a store global marketing channels scratch or to acquire existing retail facilities Virgin Megastore in Paris Franchising The appropriate entry strategy when barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing structures Benetton stores — Chapter 13 Andrew P.

Yap - FIU — MAR 13 Physical Distribution and Logistics Management Important Distribution Activities Order Processing Includes order entry, order handling, and order delivery Warehousing Distribution centers are designed to efficiently receive goods from suppliers and fill orders for individual stores Inventory Management Ensures that a company neither runs out of manufacturing components or finished goods nor have excess inventory — Chapter 13 Andrew P.

Therefore, any company contemplating establishing its own sales force should be prepared to underwrite losses for this sales force for a reasonable period of time. Channel decisions typically global marketing channels long-term legal commitments and obligations to various intermediaries.

Such commitments are often extremely expensive to terminate or change, so it is imperative for companies to document the nature of the relationship with the foreign partner.

Harvard professor David Arnold offers global marketing channels specific guidelines to help prevent such problems from arising. These are highlighted above and on the next slide.


Since the global marketing channels, there has been growing interest among successful retailers in expanding globally. However, this not a new phenomenon.

For centuries, entrepreneurial merchants have ventured abroad both to obtain merchandise and ideas and to establish retail operations. During the 19th and early 20th centuries, British, French, Dutch, Belgian, and German trading companies established retailing organizations in Africa and Asia.

International trading and retail store operation were two of the economic pillars of the colonial system of that era. This slide offers a survey of some of the different forms retailing can take.

Retail stores can be divided into categories according to the amount of square feet of floor space, the level of global marketing channels offered, width and depth of product offerings, or other criteria.

Global Marketing Channels and Physical Distribution

A number of factors have prompted retailers to look overseas for new store development. Companies must ask themselves the critical question on the slide. A company may possess competencies that can be the basis for competitive advantage in a particular retail market.

Global marketing channels retailer has several things to offer consumers.

Chapter 13 Global Marketing Channels and Physical Distribution - ppt video online download

Some are readily perceived by customers, such as selection, price, and the overall manner in which the goods are offered in the store setting. The last includes such things as store location, parking global marketing channels, in-store atmosphere, and customer service.


Competencies can also be found in less visible value chain activities such as distribution, logistics, and information technology.

One axis represents private or own-label focus versus a manufacturer brands focus. The other axis differentiates between retailers specializing in relatively few product categories global marketing channels retailers that offer a wide product assortment.

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Quadrant A has the retailer IKEA, which is global marketing channels good example of a global retailer with a niche focus assemble-yourself furniture for the home as well as an own-label focus IKEA sells its own brand.