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Global Marketing Channels: BY: Natalia, Christy

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Global Marketing Channels

BY: Natalia, Christy


Global Marketing Channels
 Channel objectives & constraints
Marketing channels exist to create utility for customers
 Channel Utility:
o Place utility – availability of a product or service in a location
that is convenient to a potential
o Time utility – availability of a product or service when desired by
a customer
o Form utility – availability of the product processed, prepared, in
proper condition and ready to use
o Information utility – availability of answer to questions and
general communication about useful product features and
benefits
Channel strategy

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.

• Distribution is the physical flow of


goods through channels
• Channels are made up of a coordinated
group of individuals or firms that
perform functions that add utility to a
product or service
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.
THANK YOU

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