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Lecture Global marketing: Contemporary theory, practice, and cases: Chapter 12 - Ilan Alon, Eugene Jaffe

Chapter 12, global placement and distribution channels. The main contents of this chapter include all of the following: International distribution decisions, factors influencing distribution decisions, managing and controlling international distribution channels, channel management and control, physical distribution. | Chapter 12 – Global Placement and Distribution Channels “We are striving to achieve noticeable improvements for our customers and distribution systems. ( ) The various sales formats in all major markets will be adapted to new customer requirements. ( ) Every day is a chance to improve our service and make it more accessible.” Michael Diekmann, Chairman of the Board of Management, Allianz Group McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Outline International Distribution Decisions Factors Influencing Distribution Decisions Internal External Managing and Controlling International Distribution Channels Direct and indirect channels Conventional versus vertical systems Multichannel strategies Types of channel intermediaries International Retailing Selection of channel partners Channel Management and Control Physical Distribution Summary 2 Factors Influencing Distribution Decisions Internal International market strategy- entry mode and degree of control Distribution strategy Intensive – distribution in all possible outlets Selective - fewer, selective intermediaries Exclusive – limited number of intermediaries Product complexity Size and development of the firm’s marketing organization External Characteristics of distribution system Local regulations Stage of PLC Consumer shopping habits and market size Competitive climate Beer Distribution Worldwide: Some Examples Insert 12-1 Managing International Distribution Channels The distribution channel structure is strongly influenced by the country’s economic development which creates the need for more efficient channels Distribution considerations include: Direct versus indirect Conventional versus vertical marketing systems (VMS) Different types of intermediaries Direct and Indirect Distribution Channels Direct Manufacturer sells directly to customer Indirect One or more intermediaries (agent, wholesaler, retailer, etc.) are involved Length of a distribution channel . | Chapter 12 – Global Placement and Distribution Channels “We are striving to achieve noticeable improvements for our customers and distribution systems. ( ) The various sales formats in all major markets will be adapted to new customer requirements. ( ) Every day is a chance to improve our service and make it more accessible.” Michael Diekmann, Chairman of the Board of Management, Allianz Group McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 1 Outline International Distribution Decisions Factors Influencing Distribution Decisions Internal External Managing and Controlling International Distribution Channels Direct and indirect channels Conventional versus vertical systems Multichannel strategies Types of channel intermediaries International Retailing Selection of channel partners Channel Management and Control Physical Distribution Summary 2 Factors Influencing Distribution Decisions Internal International market strategy- entry mode and .