* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download ch16 Hollensen - Warsaw School of Economics
Food marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Product planning wikipedia , lookup
Affiliate marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Target audience wikipedia , lookup
Marketing research wikipedia , lookup
Ambush marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Youth marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Target market wikipedia , lookup
Viral marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Sensory branding wikipedia , lookup
Direct marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing plan wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Street marketing wikipedia , lookup
Svend Hollensen GLOBAL MARKETING 4th Edition Lecture by Ewa Baranowska-Prokop, Ph.D. Distribution decisions Learning objectives (1) Explore the determinants of channel decisions Discuss the key points in putting together and managing global marketing channels Discuss the factors influencing channel width Explain what is meant by integration of the marketing channel Hollensen, Global Marketing 4e, © Pearson Education 2008 16-2 Learning objectives (2) Describe the most common export documents Define and explain the main modes of transportation Explain how the internationalisation of retailing affects the manufacturer Define grey markets and explain how to deal with them Hollensen, Global Marketing 4e, © Pearson Education 2008 16-3 DHL: A case study What are the macroeconomic drivers for the growth of the logistic business? What are the most important issues in keeping DHL’s international competitiveness? How can DHL be perceived as a local company in most countries of the world? Requires web access Hollensen, Global Marketing 4e, © Pearson Education 2008 16-4 External factors affecting channel decisions Customer characteristics Nature of product Nature of demand Competition Legal regulations/ local business practices Hollensen, Global Marketing 4e, © Pearson Education 2008 16-5 Internal decisions concerning channel structure Types of intermediaries Coverage Length (number of levels) Control resources Degree of integration Hollensen, Global Marketing 4e, © Pearson Education 2008 16-6 Internal decisions concerning management and control of channel Screening and selecting intermediaries Contracting Motivating Controlling Termination Hollensen, Global Marketing 4e, © Pearson Education 2008 16-7 Internal decisions concerning management of channel logistics Physical movement of goods through channel system Order handling Transportation Inventory Storage/warehousing Hollensen, Global Marketing 4e, © Pearson Education 2008 16-8 Figure 16.2a Japanese car parts distribution channels Sources: Cateora (1993); Onkvisit and Shaw (1993); Pirog and Lancioni (1997). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-9 Figure 16.2b US car parts distribution channels Sources: Cateora (1993); Onkvisit and Shaw (1993); Pirog and Lancioni (1997). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-10 Figure 16.3 A hypothetical channel sequence in the Japanese consumer market Source: Pirog and Lancioni, 1997, p. 57. Adapted with kind permission from International Journal of Physical Distribution and Logistics Management, Emerald Group Publishing Ltd. Hollensen, Global Marketing 4e, © Pearson Education 2008 16-11 Market coverage Coverage can refer to geographical areas of a country or the number of retail outlets (as a percentage of all retail outlets). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-12 Approaches to market coverage Intensive Selective Exclusive Hollensen, Global Marketing 4e, © Pearson Education 2008 16-13 Figure 16.5 Factors influencing channel width Source: adapted from Lewison, 1996, p. 279. Hollensen, Global Marketing 4e, © Pearson Education 2008 16-14 Functions performed by intermediaries Carrying of inventory Demand generation Physical distribution After-sales service Credit extension to customers Hollensen, Global Marketing 4e, © Pearson Education 2008 16-15 Figure 16.6a Conventional marketing channels Manufacturer Forward integration Wholesaler Backward integration Retailer Consumer Hollensen, Global Marketing 4e, © Pearson Education 2008 16-16 What is this? What form of integration means seeking control of channel members at different levels of the channel? Vertical integration Hollensen, Global Marketing 4e, © Pearson Education 2008 16-17 What is this? What form of integration means seeking control of channel members at the same level of the channel (i.e., competitors)? Horizontal integration Hollensen, Global Marketing 4e, © Pearson Education 2008 16-18 Guidelines for anticipating and correcting problems with international distributors (1) Select distributors – do not let them select you Look for distributors capable of developing markets Treat the local distributors as long-term partners Support market entry by committing money, managers, and proven marketing ideas Hollensen, Global Marketing 4e, © Pearson Education 2008 16-19 Guidelines for anticipating and correcting problems with international distributors (2) Maintain control over marketing strategy Make sure distributors provide you with detailed market and financial performance data Build links among national distributors at the earliest opportunity Hollensen, Global Marketing 4e, © Pearson Education 2008 16-20 Figure 16.7 Criteria for evaluating foreign distributors Overall qualifications/ selection criteria Financial and company strengths Facilitating factors Product factors Commitment Marketing skills Source: Adapted from Cavusgil et al. (1995). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-21 Selection criteria: Financial and company strengths Financial soundness Ability to finance sales and growth Ability to raise funding Ability to provide promotional funds Product and market expertise Ability to maintain inventory Quality of management team Reputation among current and past customers Ability to formulate and implement marketing plans Source: Adapted from Cavusgil et al. (1995). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-22 Selection criteria: Product factors Quality and sophistication of product lines Product complementarity Familiarity with product Technical know-how at staff level Condition of physical facilities Patent security Source: Adapted from Cavusgil et al. (1995). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-23 Selection criteria: Marketing skills Marketing management expertise Ability to provide geographic coverage Experience with target market Customer service On-time deliveries Sales force Market share Participation in trade fairs Member in trade associations Source: Adapted from Cavusgil et al. (1995). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-24 Selection criteria: Commitment Willingness to invest in sales training Commitment to achieving minimum sales targets Positive attitude Undivided attention to product Willing to commit advertising resources Willing to drop competing product lines Volatility of product mix Percentage of business with single supplier Willingness to keep sufficient inventory Source: Adapted from Cavusgil et al. (1995). Hollensen, Global Marketing 4e, © Pearson Education 2008 16-25 Selection criteria: Facilitating factors Connections with influential people Working experience/ relationships with other manufacturers Track record with past suppliers Knowledge of particular business Government relations Proficiency in English Hollensen, Global Marketing 4e, © Pearson Education 2008 16-26 What is this? What term is used to describe the movement of goods and services between suppliers and end users? Logistics Hollensen, Global Marketing 4e, © Pearson Education 2008 16-27 Figure 16.9 The export procedure 1 Exporter Importer 4 2 Bank in exporter’s country 5 3 Import warehouse 8 Manufacturing 6 Importer’s bank Customs Secure transport and documentation 7 Ship 9 Source: Albaum et al., 1994, p. 419. Hollensen, Global Marketing 4e, © Pearson Education 2008 16-28 Most common export documents Transportation Bill of lading Dock receipt Insurance certificate Banking Letter of credit Commercial Commercial invoice Government Export declaration Consular invoice Certificate of origin Hollensen, Global Marketing 4e, © Pearson Education 2008 16-29 Factors affecting transportation mode decision Cost of different transport alternatives Distance to the location Nature of the product Frequency of the shipment Value of the shipment Availability of transport Hollensen, Global Marketing 4e, © Pearson Education 2008 16-30 Services provided by freight forwarders Coordination of transport services Preparation and processing of transport documents Expert advice Hollensen, Global Marketing 4e, © Pearson Education 2008 16-31 Factors affecting level of inventory decisions Order cycle time Customer service levels Hollensen, Global Marketing 4e, © Pearson Education 2008 16-32 Issues affecting warehousing decisions Where the firm’s customers are geographically located The pattern of existing and future demands The customer service level required Hollensen, Global Marketing 4e, © Pearson Education 2008 16-33 Internet distribution strategies Present only product information on the Internet Leave Internet business to resellers Leave Internet business to manufacturer only Open Internet business to everybody Hollensen, Global Marketing 4e, © Pearson Education 2008 16-34 Figure 16.11 International development positions Source: McGoldrick and Davies, 1995, p. 7. Hollensen, Global Marketing 4e, © Pearson Education 2008 16-35 What is this? What term is used to describe the ability of a channel member to control marketing variables of any other member in a channel at a different level of distribution? Channel power Hollensen, Global Marketing 4e, © Pearson Education 2008 16-36 Figure 16.12 Channel relationships and the concept of trade marketing Retailers’ objectives/ requirements Consumer satisfaction Consumers’ objectives Cooperation/conflict Manufacturers’ channel objectives Hollensen, Global Marketing 4e, © Pearson Education 2008 16-37 What is this? What term is used to describe the importing and selling of products through market distribution channels that are not authorized by the manufacturer? Grey marketing Hollensen, Global Marketing 4e, © Pearson Education 2008 16-38 Strategies to reduce grey marketing Seek legal redress Change the marketing mix product strategy pricing strategy warranty strategy Hollensen, Global Marketing 4e, © Pearson Education 2008 16-39 DHL: A case study What are the macroeconomic drivers for the growth of the logistic business? What are the most important issues in keeping DHL’s international competitiveness? How can DHL be perceived as a local company in most countries of the world? Requires web access Hollensen, Global Marketing 4e, © Pearson Education 2008 16-40 For discussion (1) In attempting to optimize global marketing channel performance, which of the following should an international marketer emphasize: training, motivation, or compensation? Why? Hollensen, Global Marketing 4e, © Pearson Education 2008 16-41 For discussion (2) When would it be feasible and advisable for a global company to centralize the coordination of its foreign market distribution systems? When would decentralization be more appropriate? Do grey marketers serve useful marketing functions – for consumers and manufacturers? Why is physical distribution important to the success of global marketing? Hollensen, Global Marketing 4e, © Pearson Education 2008 16-42 For discussion (3) Discuss the reasons why many exporters make extensive use of services of freight forwarders Discuss the implications for the international marketer of the trend towards cross-border retailing Many markets have relatively large numbers of small retailers. How does this constrain the international marketer? Hollensen, Global Marketing 4e, © Pearson Education 2008 16-43