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Why when and how channel design considerations

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-Why, when and how?CHANNEL-DESIGN CONSIDERATIONSCulture (distribution culture):-Existing channel structures-Relationships between channel members-Need to adjust to existing structures to gain distributionGlobalisation of distribution function:-Intro emerging markets globalisation of intermediariesCompetition:-The only distribution system is already accepted by both trade and consumersCompany objectives:-Management goals-Control-Sales objectiveCharacter is the nature of the product:-Channel design must match the overall positioning of the productCapital is the financial requirements:-Influences the degree of controlMaintenance costsThree different approaches for coverage:-Intensive uses the largest number of intermediaries-Selective uses a few intermediaries-Exclusive uses only one intermediarySome control is lost when intermediaries are used as it depends on the type of therelationship and length of the channelContinuity:-Market commitment-Responsibility of the marketer
Communication is a two-way process:-Converys the marketer’s goals to the distributors-solve s conflict situations-Aids in the overall marketing of the productE-COMMERCE-Marketing and advertising tool-Order-taking capabilities-Building own international distribution networks-Interactive relationships-Response and delivery challenges-Governmental roleSELECTION OF INTERMEDIARIESDistributor relationship:-Buys the product-Completes marketing serviceAgent relationship:-Does not physically handle the goods-Operates on commission basisSOURCES FOR FINDING INTERMEDIARIESPassive approach or an active approachGovernmental agencies; for example, AustradePrivate sources:-Trade directories-WebsitesTHE DISTRIBUTOR AGREEMENT-Contract duration-Geographic boundaries-Payment-Expenses-CommunicationTERMINATION OF THE CHANNEL RELATIONSHIPReasons to terminate:-Changes in distribution approach-Lack of performance-Life cycle of the channel relationshipsJust causes for termination include fraud, deceit, damages for failure to comply with contractualobligationsPARALLEL IMPORTATION (GREY MARKETS)Authentic and legitimately manufactured trademark items produced and purchasedabroad, but imported or diverted to the country by bypassing designated channelsPrice segmentation and exchange rate fluctuations allow unauthorised importers toexistEliminated through one-price policies, multiple product versions or promotingauthorised dealers
INTERNATIONAL LOGISTICS-The design and management of a systemthat controls the flow of materials into,though and out of internationalcorporations-Just-in-tme (JIT) delivery-Electronic data interchange (EDI)-Early supplier involvement (ESI)-Efficient customer response (ECR) systemsINTERNATIONAL LOGISTICS: PHASES IN THEMOVEMENT OF MATERIALSMaterials management:-Through the firmPhysical distribution:-From the firm to customersMODULE 07- PRODUCTS IN INTERNATIONAL MARKETING-Packaging (what changes do you need to make): language, colour, size, lucky andunlucky numbers that are believed to be cursed

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Term
Spring
Professor
NoProfessor
Tags
Marketing, International Trade, international marketer, On Competition,

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