1. Chapter 13 Global Marketing
Channel Decisions
Chapter 13
Global Marketing

2. Keegan and Green, Chapter 13
Distribution
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
Keegan and Green, Chapter 13

3. Channels Create Utility
Place
Form
Time
Information
Keegan and Green, Chapter 13

4. Distribution Terminology
Distributor – wholesale intermediary that typically carries product lines or brands on a selective basis
Agent – an intermediary who negotiates transactions between two or more parties but does not take title to the goods being purchased or sold
Keegan and Green, Chapter 13

5. Marketing Channel Alternatives: Consumer Products
Keegan and Green, Chapter 13

6. Marketing Channel Alternatives: Industrial Products
Keegan and Green, Chapter 13

7. Guidelines for Dealing with Channel Intermediaries
Select distributors – don’t let them select you
Look for distributors capable of developing markets, rather than those with a few good customer contacts
Treat local distributors as long-term partners, not temporary market-entry vehicles
Keegan and Green, Chapter 13

8. Keegan and Green, Chapter 13
Guidelines (cont.)
Support market entry by committing money, managers, and proven marketing ideas
From the start, maintain control over marketing strategy
Make sure distributors provide you with detailed market and financial performance data
Build links among national distributors at the earliest opportunity
Keegan and Green, Chapter 13

9. Keegan and Green, Chapter 13
Global Retailing
Department stores
Specialty retailers
Supermarkets
Convenience stores
Discount stores and warehouse clubs
Hypermarkets
Supercenters
Category killers
Outlet stores
Keegan and Green, Chapter 13

10. Global Retailing Categories
Fewer Categories A
Benetton, Ikea,
Gap, C&A C
Toys R Us, Virgin,
Douglas, Spar
Own-label
focus
Manufacturer
brands focus B
Marks & Spencer
Migros D
Carrefour, IGA,
Promodes
Many Categories
Keegan and Green, Chapter 13

11. Global Retailing Market Entry Strategy Framework
Culturally Close A
Chain
Acquisition D
Organic
Easy to
Enter
Difficult to
Enter C
Franchise B
Joint Venture
Culturally Distant
Keegan and Green, Chapter 13

12. Transportation Considerations
Rail
Truck
Air
Water
Inland water transportation
Ocean transportation
Pipeline
Keegan and Green, Chapter 13