Introduction Channels of distribution connect producers and customers Links are and entities that perform a number of functions Producers rely on ID: 725881
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Slide1
Chapter
15
Global Distribution and LogisticsSlide2
Introduction
Channels of
distribution connect
producers and customers
Links are
___________ and __________ entities
that perform a number of
functions
Producers
rely
on
_________
to facilitate the location of companies interested in distributing productsSlide3
Channel Structure
Channels can vary from direct, producer-to-consumer types to elaborate, multilevel channels
Channel
systems
Slide4
Channel Structure
Techniques employed by businesses
Creating new bridges between producers and customers
Creating new forms of B2B commerce
Focusing on peer-to-peer (P2P)
Slide5
Channel Structure
Connections made by marketing institutions
serve
Flows are usually
multidirectional—vertical and horizontalSlide6
Channel Design
Length
and width of the channel
employed
Determined
by factors that can be summarized as the 11
Cs
Uses
the 11 Cs as a checklist to determine the proper
approachSlide7
11 C’s
External
Customer
Competition
Internal
Company objectives
Capital
Coverage
ContinuitySlide8
Channel Design
Customers
Basis
for channel-design
decisions
Focusing
on customer needs by
understanding:
Slide9
Channel Design
Culture
Distribution culture:
Slide10
Channel Design
Competition
Channels used by competitors may be the only product distribution system that is accepted by both the trade and consumers
An international marketer’s task is
to
Slide11
Channel Design
Company objectives
Character
Products
may be distributed in a number of ways even to the same target audience
Slide12
Channel Design
Capital
Marketer’s financial strength
determines
Stronger the marketer’s finances, the more able the firm is to establish channels it either owns or controlsSlide13
Channel Design
Cost
Varies
over the life cycle of the relationship as well as
_______________________
Incurred
in
protecting the company’s distributors against adverse market
conditionsSlide14
Channel Design
Coverage
Area
to be covered depends on the:
Companies typically enter a market with one local distributor
Slide15
Channel Design
Control
Slide16
Channel Design
Continuity
Rests heavily on the
marketer
Slide17
Channel Design
Communication
Is a two-way process that does not permit the marketer to dictate to
intermediaries
Assists
the international
marketer in:
Slide18
Channel Management
Types of intermediaries
Distributor
:
Agent
: Operates on a commission basis
Slide19
Channel Management
Government agencies
The U.S. Department of Commerce has various services that can assist firms in identifying suitable representatives abroad
Slide20
Channel Management
Private sources
Advertising
Websites
Email solicitations
Slide21
Channel Management
The distributor agreement
Important
terms to be included in the
agreement
Contract duration
Method of
payment
Facilitating payments
:
Products and conditions of
sale
Slide22
Channel Management
Gray markets
(
______________
)
Products vary from inexpensive consumer goods to expensive capital goods
Conditions that allow unauthorized resellers to
exist
Slide23
Channel Management
Arguments for gray markets:
Slide24
Channel Management
Arguments against gray markets:
Slide25
Channel Management
Gray markets
Gray-market goods can:
Strategies to eliminate gray markets:
Slide26
Channel Management
Termination of channel relationship
Reasons
Slide27
Channel Management
Termination of channel relationship
Just
causes
Time to think about such issues is before the overseas distribution agreement is signed
Careful preparation can allow the exporter to negotiate a termination without litigationSlide28
E-Commerce
M-commerce
:
The marketer has to be sensitive to the governmental role in
e-commerce
The
company itself must be prepared to provide 24-hour order taking and customer
serviceSlide29
International Logistics
Design and management of a system that controls the
inflow outflow of materials in an international corporation
The
systems approach helps the firm explicitly recognize the linkages
among separate
logistics
componentsSlide30
International Logistics
Interaction with outside organizations, suppliers, and customers helps integrate all
partners
Systems
approach also
ensures:
JIT -
EDI -
ESI -
ECR -
Slide31
International Logistics
Two phases in the movement of materials
Materials
management
:
Physical distribution
: Slide32
International Logistics
Concepts
within
logistics
Systems
concept
:
Total
cost
concept:
Trade-off
concept: Slide33
International Logistics
Supply
chain management
Advances in information technology have been crucial to progress in supply chain management Slide34
International Logistics
The Impact of International Logistics
Logistics
costs have risen over the
years
Close
collaboration with suppliers and customersSlide35
International Logistics
New
dimensions of international logistics
Domestic operations
Logistics
decisions are
guided by:
International
operations
Slide36
International Transportation Issues
Transportation infrastructure
Firms encounter infrastructural
variations
Mistakes
in the
_____________________
increase
costsSlide37
International Transportation Issues
Availability of modes - Ocean shipping
Types
of
vessels
Common vessels
Slide38
International Transportation Issues
Availability
of modes - Air shipping
High-value items are mostly shipped by air, particularly if they have a high density
Volume of airfreight can be increased by
Slide39
International Transportation Issues
Choice of transport
modes
Transit time
Slide40
International Transportation Issues
Predictability
Higher predictability of airfreight allows lower levels of inventory safety stock
Merchandise shipped via air is likely to suffer less loss and damageSlide41
International Transportation Issues
Cost
Noneconomic factors
Slide42
The International Shipment
Documentation
Sometimes
considered to be a trade
barrier
__________ is
the most important document
Shipper’s
declaration for
____________
Assistance with
international shipments
Several intermediaries provide services in the physical movement of goods
Slide43
International Inventory Issues
Inventory
carrying costs
:
Order
cycle
time
–
In
international marketing, the order cycle is frequently longer than in domestic
businessSlide44
International Inventory Issues
Customer
service levels
Responsiveness
that inventory policies permit for any given situation
Should be based on:
Slide45
International Inventory Issues
Inventory
as a strategic
tool
Dealing
with currency valuation
changes
Hedging
against inflationSlide46
International Storage Issues
Storage facilities
Factors determining the location of storage facilities
Slide47
International Storage Issues
Storage facilities
ABC analysis classifies products that are most sensitive to delivery time
Slide48
International Storage Issues
Outsourcing
Reasons for outsourcing
Slide49
International Storage Issues
Foreign
trade zones
Considered for
Found at:
Benefits both the
Generates employment opportunitiesSlide50
International Packaging Issues
Adequate
for domestic shipping may be inadequate for international
transportation
Weight
of packaging must be
considered
Slide51
Management of International Logistics
Centralized logistics
management
Decentralized logistics management
Slide52
Management of International Logistics
Contract logistics
Outsourcing logistical management by employing outside logistical expertise
Allows marketers to take advantage of an existing network, complete with resources and experience
Slide53
Logistics and Security
Logistics systems are vulnerable to terrorist attacks and piracy
To prevent them, governments impose security measures
Slide54
Logistics and Security
Security
measures:
Slide55
Logistics and Security
Strategies employed for reducing security
costs
Slide56
Recycling and Reverse Logistics
Reverse
distribution
systems
Environmental
concerns are also growing in the packaging fieldSlide57
Recycling and Reverse Logistics
ISO 14000
Firms should concentrate on providing the society with a better quality of life