1. International Marketing Channels8
International Marketing Channels
8.01 International Channel Design

2. Winning Strategies - read
Open All Night Everywhere
7-Eleven stores are open 24 hours a day.
7-Eleven stores have improved their efficiency through the use of technology.
There are almost 28,000 7-Elevens around the world.
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3. Warm-up video http://www.youtube.com/watch?v=Tb8bF2hCyLw
A quick overview of channel management
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4. MARKETING CHANNELS channel of distribution logistics
the path used to move products from their source to the customer
logistics
activities that create an orderly and timely acquisition and transportation of products through the channel of distribution
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5. Channel Length marketing intermediary
an independent business that assists the flow of goods and services from producer to customers
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6. Types of marketing intermediaries
Agent/broker
Place buyers and sellers together
Facilitate transactions
Do not take ownership of product
Wholesaler
Re-distributes to retailers
Take ownership of products
Retailer
Redistributes to consumers
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7. Channel Length (continued)
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8. Channel Length (continued)
short channel of distribution
Few intermediaries
direct channel
From producer directly to consumer
long channel of distribution
Many intermediaries
indirect channel of distribution
Used primarily for consumer goods
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9. Role of Intermediaries
Breaking bulk shipment into smaller quantities
Provide information to other channel members
Storage of products
Transportation of products
Provide financing
Promote products
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10. Channel Length (continued)
Channels of distribution have become a key to international competitiveness because they can:
facilitate just-in-time (JIT) inventory
lower costs
speed up distribution
support expansion into new markets
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11. Just-in-time inventory
Products arrive just as they are needed
Utilize computerized inventory and point-of-sale systems to monitor inventory levels and place orders
Two videos on just in time
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12. International Channel Design
When entering new markets, international marketers can either:
establish a new channel of distribution
High risk strategy
Need to develop new relationships with suppliers
work within an existing channel of distribution
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13. Total Cost Concept total cost concept
all costs must be taken into consideration when designing a channel of distribution
Added shipping costs
Transportation time must also be considered
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14. IBH – 8.01 Activity
Students pair with someone other than their IBP partner
Research an automobile manufacturer who has opened up a manufacturing plant in a foreign country in order to lower total cost of distribution to that country
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15. >> C H E C K P O I N T
Name four ways distribution channels aid in developing competitive advantages.
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16. CHANNEL RELATIONSHIPS
All distribution systems seek to achieve the lowest cost possible.
Can result in disintermediation
the removal of channel members to save costs
Examples of results due to disintermediation
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17. Channel Power Some channel members have more power than others
channel captain – example UD
takes the leadership role in organizing a distribution system
gains power through their ability to reward or punish channel members and through their knowledge of their product-market
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18. Finding International Partners
There are a number of ways for international marketers to find partners.
government sources from commerce departments
trade show contacts
Internet
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19. Finding International Partners (continued)
export management companies (EMCs)
specialize in helping businesses distribute products
agent
brings together buyers and sellers, but does not take ownership of product
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20. >> C H E C K P O I N T
Name four ways that businesses can find international partners.
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