Chapter Fifteen Managing Global Distribution Channels.

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Objectives Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact and.
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Presentation transcript:

Chapter Fifteen Managing Global Distribution Channels

Copyright © Houghton Mifflin Company. All rights reserved Figure 15.1: Global Distribution

Copyright © Houghton Mifflin Company. All rights reserved Figure 15.2: Global Marketing Channel Alternatives The Structure of the Global Distribution System

Copyright © Houghton Mifflin Company. All rights reserved The Structure of the Global Distribution System (cont’d) Home Market Channel Members –Export Management Company –Export Agents –Direct Exporting –The Internet Foreign Market Channel Members –Import Intermediaries –Local Wholesalers or Agents –Retailers

Copyright © Houghton Mifflin Company. All rights reserved Developing a Global Distribution Strategy Figure 15.3: Distribution Strategy

Copyright © Houghton Mifflin Company. All rights reserved Developing a Global Distribution Strategy (cont’d) Distribution Density Channel Length Channel Alignment Distribution Logistics

Copyright © Houghton Mifflin Company. All rights reserved Factors Influencing the Selection of Channel Members Cost Capital Requirement Product and Product Line Control Coverage Synergy

Copyright © Houghton Mifflin Company. All rights reserved Locating and Selecting Global Channel Partners

Copyright © Houghton Mifflin Company. All rights reserved Locating and Selecting Channel Partners (cont’d) Sources for Potential Distribution Partners Include: –U.S. Department of Commerce –Banks –Directories –Trade Shows –Competitor’s Distribution Partners –Consultants –Associations –Foreign Consulates

Copyright © Houghton Mifflin Company. All rights reserved Managing Global Distribution Motivating Channel Participants Controlling Channel Participants

Copyright © Houghton Mifflin Company. All rights reserved Gaining Access to Distribution Channels The Locked-Up Channel Alternative Entry Approaches –Piggybacking –Joint Ventures –Original Equipment Manufacturers (OEMs) –Acquisitions

Copyright © Houghton Mifflin Company. All rights reserved Global Supply Chain Management Logistics Decision Areas Traffic or Transportation Management Inventory Control Order Processing Materials Handling and Warehousing Fixed Facilities Location Management Managing the Global Logistics System

Copyright © Houghton Mifflin Company. All rights reserved Trends in Global Distribution The Growth of Larger-Scale Retailers An Increased Number of Globally Active Retailers Proliferation of Direct Marketing Growth of Online Retailing The Dominant Role of Information Technology

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