Слайд 1lnternational Marketing
Chapter 10
Global Place Decision
Слайд 2
Distribution channel
Global place decisions
Physical distribution and logistics
Слайд 4A .Distribution channel
A channel is an institution through
which goods and services are marketed. Channels give place and
time utilities to consumers.
Once you have committed to exporting and have selected the market(s) to enter, it is time to determine who will sell your product, how they will sell it and how it will be distributed.
Слайд 5 Distribution channel is the systems that link manufacturers
to customers. It may be an on-site store, a virtual
store, a retailer, a wholesaler, an agent, a telemarketer or direct mail.
Wholesalers and retailers are the distribution channel to get their products to a specific group of people. Wholesalers market items to business owners that will in turn sell the products to consumers. Retailers sell products directly to consumers.
Слайд 6Distribution is critical to the overseas operations
because:
1. It has a
direct effect on sales. If you don’t have a good
distribution network, your products may stack up in a warehouse and won’t reach your target customers.
2. It affects your profits as well. As distribution costs can make up to 50% of the final selling price of some products, an efficient distribution network can increase your profit margins.
Слайд 81. Direct Channel
In this method, the company interacts
with its customers directly without any intermediaries. Mail orders, the
Internet and phone calls are some of the ways your potential customers can learn about your products and make purchases.
Слайд 9 Direct marketing
It is a channel-agnostic form of advertising that allows
businesses organizations to communicate straight to the customer, with advertising
techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, targeted television commercials, response-generating newspaper/magazine advertisements, and outdoor advertising
Слайд 10eg. The growth of the Internet has increased competition tremendously
and opened up the doors to international business. Companies have
developed a web presence to keep themselves ahead or in line with their competitors internationally.
There are a number of reasons why a company’s web presence is becoming an increasingly important tool to reach global markets.
Слайд 11Internet Population - Internet access is increasing in regions throughout the
world. 533 million people have access to the Internet.
E-commerce Growth -
According to International Data Corporation (IDC), the U.S. accounts for approximately 40% of all money spent online
Слайд 12Demand for Products and Services - Regions throughout the world are
realizing the enormous information resource the Web is and are
interested in content, and products and services that their own regions do not provide.
Online Payment - local currencies can be used
Слайд 13Marketing and Advertising - it can gain international audiences.
Increased Sales and
Reduced Costs - A web site provides an avenue through which
to gain access to a large audience without spending a lot of money.
Слайд 14 CASE 1
How to buy a
product from
US through internet?
Слайд 24Any challenge?
Language
Order Fulfillment
Post Sales Support
Time
Tariff
Слайд 28Manufacturer-owned store
Also called Regular Chain. manufacturers sell their
products in their own retail stores, and many of these
stores appear to be in direct competition with independent retailers.
Слайд 322. Select agent / distributors
Agency selection is a critical area
of your
Export effort. You need an agent who knows
the export market ,
has influence with the key
Buying personnel in the appropriate sectors
and knows and is committed to your business.
Слайд 33Commission agent:
The commission agent represents you in
the overseas market. He or she sells your product . When
the customer pays for the goods, you pay the agent commission on the sale. This varies from 2% to 15% depending on the type of goods being handled. Commission should be included in the price quoted to the customer.
Слайд 34 Agents do not accept any legal ownership of
the product.
This channel is usually expensive, as
an agent is expensive to train and the physical distance makes his progress difficult to track.
Слайд 35Importer/distributor:
The importer/distributor actually buys the goods from
you, stores them in a
warehouse and sells them on to a
third party. The
mark-up is usually around 33%.
Since they take title to the goods, they are free to
determine the prices of the goods themselves and
develop their own marketing strategies.
Слайд 36Retailers:
Retailers sell to the end customers and are,
therefore, able to develop a better bond with them. The
retailer takes on the responsibility of promoting the products and often decides the price of the product.
Слайд 38How to choose?
You should draw up a preliminary list with the assistance
of exporters, embassy or export promotion agency offices abroad, or
through friends or local Chambers of Commerce and banks. You may also decide to advertise in foreign local press and/or trade journals.
Слайд 39Then write to the organizations and industrialists on this list,
giving your firm's background and export objectives. Check if they are
interested in handling your products and services, whether they act for competitors in the market, and their terms of commission.
Слайд 40Their replies should form the basis of a shortlist to
be used for interviews when you next visit the market.
Trade and bank references should also be sought.
Слайд 41Agents will only take your product line if they think
it will make money for them. They must be
convinced that it is a good selling proposition, that your company is efficient and committed and that you can supply sufficient quantities to make handling your account worthwhile.
Support your agent to make the selling job as easy as possible., keep in close contact and remember that a neglected agent will neglect your product.
Слайд 42 Do not rush to sign up with the
first distributor or agent who seems interested or has the right
contacts and resources. Make sure to build a very clearly defined trial period into the agreement and if possible, incorporate the minimum level of sales you expect from them over a specified period.
Слайд 45C. Physical distribution and logistics
Order processing
Warehousing
Inventory Management
Transportation
Слайд 461. Order processing
This is the method chosen by
the firm to receive orders from the customer. It could
be by mail, telephone, through salespeople, or via computer or the Internet. Once received, orders must be processed quickly and accurately then shipped to the customer.
Слайд 47 It includes order entry, in which the order
is actually entered into a company ̓s information system; order
handing, which involves locating , assembling , and moving products into distribution ; and order delivery , the process by which products are made available.
Слайд 502.Warehousing
Warehouses are used to store goods until they
are sold. It is designed to efficiently receive goods from
suppliers and then fill orders for individual stores.
Слайд 51 Every company must store its goods while they
wait to be sold. This storage function is necessary because
production and consumption cycles rarely match. Companies can use either storage warehouses or distribution centers to process their goods.
Слайд 54Amazon.com (Amazon) was one of the first online shopping sites launched
in 1995. Since its inception, it has been consistently ranked
as one of the best retail sites on the Internet and is regarded as the universal model for successful Internet retailing. Amazon was ranked among the top 10 Internet sites in almost all the major market surveys.
Слайд 55When Bezos started his venture, he aimed at hassle-free operations.
He wanted to offer his customers a wide selection of
books, but did not want to spend time and money on opening stores and warehouses and in dealing with the inventory.
He however realized that the only way to satisfy customers and at the same timer make sure that Amazon enjoyed the benefits of time and cost efficiency was to maintain its own warehouse.
Слайд 563. Inventory Management
It ensures that a company neither
runs out of manufacturing components or finished goods nor incurs
the expense and risk of carrying excessive stocks of these items.
Inventory decisions involve knowing both when to order and how much to order. During the past decade, many companies have greatly reduced their inventories and related costs through just-in-time logistics systems.
Слайд 584. Transportation
transportation is the movement of people and goods from
one location to another
Rail
Truck
Air
Water
Слайд 59 The choice of transportation carriers affects the pricing
of products, delivery performance, and condition of the goods when
they arrive--all of which affect customer satisfaction. The major forms that are available are rail, truck, water, pipeline, and air.
Слайд 60Truck: 39 % of total cargo ton-miles (the most). the
largest portion of transportation within cities as opposed to between
cities. highly flexible in their routing and time schedules, and they can usually offer faster service than railroads. They are efficient for short hauls of high-value merchandise.
b). Rail: Second in cargo ton-miles with 38%. They are one of the most cost-effective for shipping large amounts of bulk products over long distances.
Слайд 61
c). Water : about 10% of ton-miles .The cost is
low for shipping bulky products, however, water is a slow
form of transportation and can be affected by the weather.
d). Air: Transport less than 1 % of the nation’s goods. Air freight rates are the highest forms of transportation but air freight excels in speed.
Слайд 62CASE 1
Jerry Jones, president of Flowers-R-Us, wants to
order some unique orchids from Hawaii for the upcoming prom
season in his local community in Newyork. He has one month before the big dances begin. He plans to use brochures to sell the flowers to his young customers in local high schools. What would be Mr. Jones’s best transportation alternative?
Слайд 63CASE 2
Byrd Lumber Company has received a large
order of lumber to build three new 200-unit apartment complexes.
It is essential that the lumber arrive on time which means three weeks left. Byrd Lumber is located in Texas, and must order its goods from mills in Oregon. What would be Byrd’s best transportation alternative?
Слайд 64CASE 3
Phillips of Houston, needs to order a
new technical precision surveying instrument from a supplier in Toronto,
Canada. The instrument is highly sensitive and must be packed with great care. The instrument is about the size of a microwave oven and weights about 80 pounds. Its total value is $30,000. The company needs the instrument as soon as possible. What would be Phillips’ best transportation alternative?
Слайд 65 For case 1
The best alternative for
Mr. Jones is to have the orchids shipped via air-freight.
among the most frequently air-freighted products are cut flowers because of their perishability (a truck would delivery them from the airport or they could be picked up by the firm itself).
Слайд 66 For case 2
Byrd Lumber would most
likely choose rail to bring in the lumber. Water would
be out because of the time frame and location of the mills and final destination. one of the chief products shipped by rail is forestry products. Rail would be chosen over trucks because of the amount of lumber needed to build three 200-unit apartment complexes.
Слайд 67For case 3
Phillips would choose air for
its method of transportation. Even though trucking would be a
possibility, air-freight is known for transporting high-value, low-bulk products (for example, technical instruments). Trucking could be used, however, the likelihood of damage would probably not be worth the risk.
Слайд 68Summary
Distribution channel
Place decisions
Physical distribution and logistics
Слайд 69Reference
http://www.cbinews.com/topic/2011/03/apple/ (APPLE在华分销）
战略物流管理 James R.StockDouglas M.Lambert 中国财政经济出版社
http://www.globalmarketing.cn/index.asp
（国际营销传播网）
http://www.icmrindia.org/casestudies/Management.asp?area=International%20Marketing (案例网）
