Chapter 12 - Global Marketing Channels and Physical Distribution Flashcards
List the guidelines companies should follow when establishing channels and working with intermediaries in global markets.
- 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
- 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 amoing national distributors at the earliest opportunity
Name Channel objectives regarding utility
Place utility:
- availability of a product or service in a location that is convenient to a potential customer
Time utility:
- availability of a product or service when desired by a customer
Form utility:
- availability of a product processed, prepared, in proper condition and/or ready to use
Information utility:
- availability of answers to questions and general communication about useful product features and benefits
Explain the terminology and structure of distribution channels
- distribution is the physical flow of goods through channels
- channels are made upp of a coordinated group of individuals or firms that perform functions that add utility to a product or service
Explain the terms distributor and agend in terms of distribution channels
Distributor: (Einkauf, wie zb bei Supermarkt)
- wholesale intermediary that typically carries product lines or brand on a selective basis
Agent: (Kommission)
- an intermediary who negotiates transactions between two or more parties but does not take title to the goods being purchased or sold
Explain Peer-to-Peer Marketing
- The Internet and other related media are dramatically altering (ändern) distribution
- Interactive TV may become a viable direct marketing channel in the future
- eBay pioneered P2P (Helped Disney and IBM set uo auction sites for B2C auctions)
- Interactive TV is coming when homes are wired for 2-way
Explain Door-to-Door Selling
- Matrue form in the U.S.
- Growing popularity in China (AIG insurance, Mary Kay, Tupperware, Avon, Amway)
- 1/2 care are sold door-to-door in Japan with 100.000 salespeople
Name consumer channels
Manufacturer-owned stores
- Walt Disney 600 new stores globally
- Nike, Levi Strauss, Apple
Independent Franchise
Independent Retailers
Flagship retail stores for Apple, Sony, well-known fashion houses, Nokia, Nike
- to build brand loyalty, showcase products, and help gather marketing intellingence
Explain retailing in developing countries
- consumers purchase food, soft drinks and other items at “Mom & Pop” stores (Tante Emma Laden), kiosks, and market stalls (Marktstände) in single use packages
- 70% of Mexicans shop at these stores
- P&G supports stores that carry at least 40 P&G products with displays (Werbeanzeigen), promo materials (Werbematerial)
Explain establishing channels via direct and indirect involvement
Direct involvement:
- the comapny establishes its own sales force or operates its own retail stores
Indirect involvement:
- the company utilises independent agents, distributors and /or wholesalers
-> Channel strategy must fit the company’s competitive position and marketing objectives within each national market
List ways of global retailing and explain smth about it.
- Department stores
- Specialty retailers
- Supermarkets
- Convenience stores
- Discount stores and warehouse clubs
- Hypermarkets
- Supercenters
- Category killers (sehr spezifisches Sortiment)
- Outlet stores
European retailers spread to colonies in the 19Th, early 20th century
Global retailers serve developing nations with more products & better prices
Organised retail refers to modern, branded chain stores
Name the top 5 Global Retailers in 2012
- Walmart Stores
- Carrefour
- Tesco PLC
- Metro AG
- Aldi
Types of retailers - describe convenience stores (Kleine shops, häufig To Go, häufig in Bahnhöfen etc)
- High-turnover convenience & impulse goods
- prices 15-20% higher than grocery stores
- 7-11 worlds largest (26000 locations)
- Trend towards locating in malls, airports, office buildings, and college & university
Types of retailers - describe department stores (Kaufhaus)
- have a product mix unter one roof
- expansion outside of the home market is usually limited to a few countries
- Two Views on it:
(1) Difficult to go global because you need to adapt your offer which dilutes your brand
(2) Easy to go global, because department stores are global brands as we all travel a lot between cities and countries
Types of retailers - describe specialty retailers
- less variety than department stores
- offer merchandise depth & high level of service
(The Body Shop, Victoria’s Secret, Starbucks)
Types of retailers - describe supermarkets
- Between 50.000 & 60.000 sq. ft. (qm)
- Grocers haven’t spread outside the US because market size is vast
- UK Tesco is global
Types of retailers - describe discount retailers and different types of it
Full-line discounters
- wide variety of merchandise (e.g. Walmart)
Warehouse Clubs
- Memberships feed (e.g. Sam’s Costco)
Dollar stores
- sell at a single low price (e.g. Familiy Dollar, Dollar Tree)
Hard discounters
- limited assortment, rock bottom prices
Types of retailers - describe hypermarkets (eg real)
- hybrid retailers combining discounter, supermarket & warehouse club (20.000-30.000 qm)
Types of retailers - describe supercenters
- have lower priced groceries + general merchandise (half of size of hypermarket)
Types of retailers - describe superstores
- aka Category Killers & Big Box
- sell vast assortment of a product category
Types of retailers - describe shopping malls
- groups of stores in one place
- enclosed or outdoor
- leisure destinations offer entertainment & convenience
Types of retailers - describe Outlet stores
- shops that offer excess inventory, out-of.date merchandise or factory seconds
- Popular in the US, expanding into Europe & Asia
What are environmental factors (Gründe/Motive) and the critical question regarding Global Retailing?
Environmental Factors:
- Saturation in the home country market
- Recession or other economic factors
- Strict regulation on store development
- High operating costs
Critical Q:
- What advantages do we have relative to the local competition?
Name and explain 4 Global Retailing Strategies
Organic growth:
- compan uses its own resources to open a store on a greenfield site or acquire one or more existing retail faclities
Franchise:
- appropriate strategy when barriers to entry are low but the market is culturally distant (entfernt) in terms of consumer behaviour or retailing structures
Chain Acquisition:
- A market entry strategy that entails purchasing a company with multiple eistion outlets in a foreign country
Joint Venture:
- This strategy is advisable when culturally distant, difficult-to-enter markets are targeted
What are the 4 Global Retailing Categories? (in a diagramme)
A Fewer categories C
Own-label focus + Manufacturers brands focus
B Many categories D
