Exam 3 Flashcards
Includes the physical handling of goods, passage of ownership or title, and the buying and selling of negotiations
the distribution process
A channel of distribution is selected with a variety of middleman whose functions reflect competition, market characteristics, tradition, and economic development
distribution structure
An importer controls a fixed supply of goods limited to a small amount of customers from a limited supply of middleman
import oriented distrobution structure
What are the four features of the Japanese distribution structure
small middlemen with small retainers
channel control by manufacturers
philosophy shaped by culture
laws that protect foundation
what does the value system in japan support?
long term dealer- supplier relationships that are difficult to change
This law is designed to protect small retailers from large intruders by making stores seek permission to expand, change hours, and days of operation
The large scale retail store law (Daitenho)
Work on commission and arrange for sales in the foreign country but do not take the title to the merchandise
agent middleman
Take the title to the manufacturers goods and assume the trading risk so they are less controllable.
Criticized about not representing the best interest of the manufacturer
merchant middleman
Selling to the customer through mail telephone door-to-door etc.
Is considered to be insufficient or an under developed system
has been effective in foreign markets
Direct selling
Are located in the firms producing country and used when marketer is uncertain or wants to minimize investment
home country middleman
What are the six factors affecting choices of channel
cost capital control coverage character continuity
the two kinds of channel costs are:
capital or investment cost
cost of continuing to maintain
this area is often overlooked but cash flow patterns and controlling capital investment are critical
capital requirements
more distribution involved the more __ exerted
longer channels reduces this
having your own sales force gives more of this but is not practical
control
full__ is the goal but is difficult to attain
must gain optimum sales, secure market share and good market penetration
coverage
channel must coincide with company ___
patterns are changing and cannot assume further work is not needed
character
channels often pose longevity problems
distribution can be lost when a middleman retires or moves on due to little loyalty
distributors and dealers are most loyal
brand loyalty flows down stream
continuity
what are the 6 integrated marketing communications tools
advertising personal selling sales promotion direct selling trade shows public relations
what are generally the two biggest integrated marketing communications for companies
advertising and personal selling
create a good relationship with the press and media
sponsor sports teams
communicate with the public
Public relations
