Channels and physical distribution are crucial aspects of the total marketing program. Global retailing retailing activity that crosses national boundaries 10 types of retail operations establishing channels and working with channel intermediaries trends in global retailing not every store concept is exportable overseas 1. Global marketing, 9e keegan chapter 12 global marketing channels and physical distribution 1 in spite of walmarts potential to transform indias retail sector for the better, indian activists and policy makers are worried because. Global marketing channels and physical distribution channel objectives marketing channels exist to create utility for customers 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. In this sense, modern vertical marketing systems, new business models and.
To create the product so that it responds to the customer needs and expectations. Pp16gg direct marketing channels direct marketing allows consumers to buy products by interacting with various advertising media without a facetoface meeting with a salesperson. Distribution channels are evaluated using three major criteria. Oct 11, 20 chapter 12chapter 12 global marketingglobal marketing channels andchannels and physical distributionphysical distribution 122 3. 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 the product processed, prepared, in proper condition andor ready to use information utility availability of. The chapter starts by showing the importance of the institutional and physical channel of distribution in global marketing. Marketing channels are set of interdependent organisations involved in the process of making a product or service available for use or consumption. Dr peltons principal research interests include marketing channels, relationship marketing and international distribution. Today managers becoming more important due to the distribution issue, according to the distribution, physical distribution and. Distribution channels definition types of distribution. Physical distribution pd while given a great deal of attention in the marketing literature during the past decade, has not been examined explicitly in terms of how it interfaces with channel management. The route taken by goods as they move from producer to consumer is known as channel of distribution. C policy makers are suspicious of the companys motives. Nov 18, 2018 4 types of distribution channels in marketing manufacturers originally bear the responsibility to create the perfect marketing mix for their production.
Today managers becoming more important due to the distribution issue, according to the distribution, physical distribution. Yet an understanding of pdchannel management interfaces is necessary if the marketer is to play a role in shaping the firms pd strategy so that it is more likely to foster channel member. All the four elements must be paid attention to for successful marketing and sale of products or services. Nowadays, marketing channels which provide the institutional structure that connects firms to the markets they serve have not escaped the global environment. Within marketing, the organizational knowledge and capabilities. Marketing channels global development personnel recruitment and training. Channel objectives distribution channels consumer and industrial global retailing physical distribution, supply chains, and logistics. Chapter 12 \u20 global marketing channels and physical. In the distribution of industrial goods, there are fewer middlemen and shorter channel of distribution, which should be in your mind. Mktg 680 chapter 12 global marketing channels and physical distribution channel objectives. Channel objectives distribution channelsconsumer and industrial global retailing physical distribution, supply chains, and. Many producers do not sell products or services directly to consumers and instead use marketing intermediaries to execute an assortment of necessary functions to get the product to the final user. There are three ways to setup global distribution of your products.
Physical distribution is concerned with the flow of goods to the ultimate consumers which includes transportation, warehousing and inventory. The american marketing association defines a channel of distribution as an organized network agencies and institution that, in combination, perform all the activities required to link producers with. Distribution in order for global marketers to be successful, the availability and accessibility of products and service to customers is imperative. They make products available when, where, and in the sizes and quantities that customers want. They are distributors, retailers, agents, bankers etc. A distributor is the middleman between the manufacturer and retailer. The distribution channels through which the industrial goods travel from the place of the production to the final consumers is known as industrial distribution channels. Distribution channels provide time, place, and ownership utility. Global marketing channels and physical distribution channel objectives marketing channels exist to create utility for customers place utility availability of a product or service in a location that is convenient to a potential customer time utility availability of a. International marketing mix decisions strategic alternatives in international and global marketing mix decisions. They make the product available when, where, and in which quantities the customer wants. Physical distribution, supply chains, and logistics.
Characteristics of international physical distribution management. International channels of distribution semantic scholar. In this text we go behind the scenes and take an indepth look at marketing channels. Chapter 12 global marketing channels and physical distribution supermarkets and convenience stores comprise just two of the many elements that make up distribution channels around the globe.
Marketing channels in the supply chain boundless marketing. Global marketing channels and physical distribution by zuna. Terminology and structure distribution is the physical flow of goods through channels channels are made up of a coordinated group of individuals or firms that perform functions that add utility to a product or service distributor wholesale intermediary that typically. But other than these transactional functions, marketing channels are also responsible to carry out the following functions. Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. The channel is the medium through which the firms global marketing strategy is communicated among the customers scattered all around the globe. There are a number of alternative international marketing channel strategies see. Apr 14, 2019 a distribution channel, also known as placement, is part of a companys marketing strategy, which includes the product, promotion, and price. The cocacola companys distribution strategy marketing.
Global marketingschrage 12 122 distribution channels. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. Global marketing schrage 12 122 distribution channels. The distribution p of the marketing mix plays a central role in a given firms value chain. Global marketing channels and physical distribution ppt download. Ijpdlm is a leading research journal bridging strategic areas of supply chain management, business logistics, marketing, sustainability, global trade and development in a way that builds knowledge on solving critical production and consumption problems. A distribution channel consists of interdependent institutions, and the different members perform one or several activities, such as. A distribution channel consists of the manufacturer and a number of intermediaries.
Mar 02, 20 the distribution p of the marketing mix plays a central role in a given firms value chain. Thus, a channel of distribution is the route or path along which goods move from producers to ultimate consumers. Role of channel of distribution and physical distribution of. Managing indirect marketing channels can prove to be a challenge for many companies because small changes to the product affect every part of the distribution channel. A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process. Channels provide time, place, and ownership utility.
The diversity of channels and the wide range of possible distribution strategies and market entry options present challenges to managers responsible for designing global marketing programs. Chapter 12 global marketing channels andphysical distribution 122 3. This gives you complete control on distribution, but elements like personnel, training, compensation and cultural background should be considered. Physical distribution consists of activities involved in moving finished goods from manufacturers to customers.
Global marketing channels and physical distribution by. Distribution challenges and workable solutions sciencedirect. The channels of distribution are designed to achieve following objectives. In order for global marketers to be successful, the availability and accessibility of products and service to customers is imperative. Place utilityavailability of a product or service in a location that is convenient to a potential customer time utilityavailability of a product or service when desired by a customer form utilityavailability of the product processed, prepared, in proper condition andor ready to.
Using physical distribution strategy for better channel. Concept of distribution channels in marketing mba knowledge. Role of channel of distribution and physical distribution. Sep 23, 2010 distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Physical distribution distributor its an intermediary who negotiates exchange transactions between two or more parties but does not take title to the goods being purchased or sold. Decisions concerning both of these sets of activities are made in conjunction with the firms overall marketing plan and are designed so that the firm can best serve its customers in the market place. Distribution or marketing channels are systems of mutually dependent organisations included in the process of making goods or services available for use or consumption. Physical distribution is concerned with the physical movement of the goods from the producer to the consumer. Marketing channels in turn affect the lives of hundreds of millions of customers who rely on them to make the myriad of products and services from around the globe so conveniently available.
These intermediaries, such as middlemen wholesalers, retailers, agents, and brokers, distributors, or financial. Mktg 680 chapter 12 global marketing channels and physical. Authored by lucius lu and sophia tiwana according to official statistics, an amazing 1. Apr 15, 2019 distribution channels provide time, place, and ownership utility. To illustrate the importance and role of channels of distribution by reference to two case studies on cotton and horticultural produce. Terminology and structure distribution is the physical flow of goods through channels channels are made up of a coordinated group of individuals or firms that perform functions that add utility to a product or service. Distribution channels can be also defined as marketing channels or market channels. Distribution channels make up the place in the 4 ps of the marketing mix along with product, price and promotion. While you are welcome to submit a pdf of the document alongside the word file, pdfs alone are not acceptable.
Global marketing channels and physical distribution slideshare. Studsplanetleading education consultant in india 2. Distribution strategy 3 definition distribution is one of the four aspects of marketing. Apr 28, 2016 the distribution channels through which the industrial goods travel from the place of the production to the final consumers is known as industrial distribution channels.
A major focus of channels of distribution is delivery. Global marketing channels and physical distribution chapter 12 channel objectives place utility time utility form utility information utility these utilities can be a basic source of competitive advantage and comprise an important element of the firms overall value proposition. Chapter 12chapter 12 global marketingglobal marketing channels andchannels and physical distributionphysical distribution 122 3. The term is second most well known after okay, making it. Distribution channels consumer and industrial global retailing physical distribution, supply chains, and logistics 2011 pearson education, inc.
Learn vocabulary, terms, and more with flashcards, games, and other study tools. Distribution channel overview a distribution channel is a group of interdependent firms that transfer product and information from the supplier to the consumer. Global marketing channels and physical distribution global marketing chapter 12 2011 pearson education, inc. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers. Global marketing introduction channels and physical. The cocacola company is a global business that operates on a local scale, in every community where they do business. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of. Online channels and vending machines are comparatively new in india and would therefore be considered to have a higher level of novelty compared to direct marketing or network marketing channels. Pdf global marketing channels and the standardization. Adjusting product channels and pricing can have unexpected impact on an indirect marketing distribution channel. Global marketing channels and physical distribution prezi. Ch12 global marketing channels and physical distribution studocu. Place utility global marketing channels and physical. Setting up international departments means that your brand will directly enter another countrys market.
How to best deliver your goods to their intended destination can change drastically across international markets. Global marketing channels and physical distribution. In this sense, modern vertical marketing systems, new business models and multichannel retailing can be observed. Direct marketing includes mailorder selling, directmail sales, catalog sales, telemarketing, interactive media, and. There are four basic elements of the marketing mix product, pricing, place and promotion. Distribution channels definition types of distribution channels. A distribution channel is a network of firms that are interconnected in their quest to provide sellers a means of infusing the marketplace with goods and buyers a means of purchasing those goods, doing all as efficiently and profitably as possible.
Global marketing chapter 12 global marketing schrage 121. The second, the physical distribution function, moves products through the exchange channel, simultaneously with title and ownership. Producers intermediaries buyers the structure of the channel can make or impede opportunities for marketing on the internet. Latex files can also be used but only if an accompanying pdf document is. Physical distribution functions will impact both channel organization and the. Marketing to the bottom of the pyramid marketing in a digital world. Global marketing channels and the standardization controversy article pdf available in journal of global marketing 111. Channels of distribution mean the intermediaries or the process through which the products are transferred from the producers to ultimate users. Distribution channels always include the manufacturer and the final consumer, the main duty of distribution system is that place goods to potential customers in the right time and place. Physical distribution definition physical distribution defined as a set of activities concered with the physical flows with materials, components and finished goods from producer to channel intermediaries and consumers.
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