Global Marketing Channels: BY: Natalia, Christy
Global Marketing Channels: BY: Natalia, Christy
Global Marketing Channels: BY: Natalia, Christy
o Direct involvement.
Own sales force.
Retail stores.
o Indirect involvement.
Independent agents,
distributors, wholesalers.
Channels strategy
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.
Company objective is constraint by
several factors.
o Product characteristics.
Degree of standardization,
perish ability, bulk, service
requirements & unit price.
Company objective is constraint by
several factors.
o Middleman characteristics.
Middleman are in business to
maximize their own product.
Reluctance in building a market
for new product.
Distributive incentive.
Company objective is constraint by
several factors.
o Environmental characteristics.
Economic
Social
political environment
Distribution channels structure.
Consumer products.
o Door to door selling
o Manufacturer’s own stores
o Franchise operations
Distribution channels structure.
Industrial products
– Industrial goods are based on the
demand for the consumer goods they help
to produce. Industrial goods are classified
as either production goods or support
goods.
Distribution channels structure.
Global retailing.
o Hyper markets.
o Mass merchandisers.
o Discount stores
o Outlet stores
o Super markets.
o Department stores.
International channel
innovation.
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.
Company must use established channels.
Build it’s own channels.
Provide special incentives to independent
channel agents.
Establishing direct distribution in a new
market can also be expensive.
Expense of direct sales force acts as a
deterrent to establish direct distribution.
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