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1、 I n t e r n a t i o n a l M a r k e t i n gInternationalMarketing ChannelsChapter 141 4 t h E d i t i o nP h i l i p R. C a t e o r aM a r y C. G i l l yJ o h n L . G r a h a mMcGraw-Hill/IrwinInternational Marketing 14/eCopyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.14-2What

2、 Should You Learn? The variety of distribution channels and how they affect cost and efficiency in marketing The Japanese distribution structure and what it means to Japanese customers and to competing importers of goods How distribution patterns affect the various aspects of international marketing

3、 The growing importance of e-commerce as a distribution alternative The functions, advantages, and disadvantages of various kinds of middlemen The importance of middlemen to a products success and the importance of selecting and maintaining middlemen14-3Global Perspective A Single Stick of Doublemin

4、t Today 18 Billion Tomorrow A product must be made accessible to the target market at an affordable price Getting the product to the target market Can be a costly process Forging an aggressive and reliable channel of distribution The most critical and challenging task facing the international market

5、er Competitive advantage For the marketer best able to build the most efficient channel from among the alternatives available14-4Channel-of-Distribution Structures All consumer and industrial products eventually go through a distribution process Physical handling and distribution of goods Passage of

6、 ownership Buying and selling negotiations between producers and middlemen Buying and selling negotiations between middlemen and customers Each country market has a distribution structure Goods pass from producer to user14-5Import-Oriented Distribution Structure In an import-oriented or traditional

7、distribution structure: Importer controls a fixed supply of goods Marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers14-6Import-Oriented Distribution Structure Demand exceeds supply The customer seeks the supply

8、from a limited number of middlemen Distribution systems are local Few countries fit the import-oriented model 14-7Japanese Distribution StructureA structure dominated by many small middlemen dealing with many small retailersChannel control by manufacturersA business philosophy shaped by a unique cul

9、tureLaws that protect the foundation of the system14-8Comparison of Distribution Channels between the United States and JapanExhibit 14.114-9High Density of Middlemen Not unusual for consumer goods to go through three or four intermediaries before reaching the consumer Japan has a large number of in

10、dependent groceries and bakers (94.7% or all retail stores) Small stores account for 59.1% of retail food sales U.S. emphasis is on supermarkets, discount food stores, and department stores Small stores generate 35.7% of food sales14-10Retail Structure in Three CountriesExhibit 14.214-11Channel Cont

11、rolInventory financingCumulative rebatesMerchandise returnsPromotional support14-12Business Philosophy Emphasizes loyalty, harmony, and friendship Supports long-term dealer-supplier relationships The cost of Japanese consumer goods are among the highest in the world Japanese law gives the small reta

12、iler enormous advantage over the development of larger stores14-13Large-Scale Retail Store Law and Its Successor Daitenho the Large-Scale Retail Store Law Large stores must have approval from the prefecture government All proposals first judged by the Ministry of International Trade and Industry (MI

13、TI) If all local retailers unanimously agreed, the plan was approved Could be a lengthy process Applied to both domestic and foreign companies Replaced by the Large-Scale Retail Store Location Act of June 2000 MITI out of the process Relaxed restrictions14-14Changes in the Japanese Distribution Syst

14、em Structural Impediments Initiative Deregulation Wal-Mart “New” retailers The Internet14-15Trends: From Traditional to Modern Channel Structures European retailers merging with former competitors and other countries to form Europe-wide enterprises Foreign retailers attracted by high margins and pri

15、ces The Internet may be most important distribution trend Covisint GlobalNetXchange E-commerce 7-Eleven competes with FedEx and UPS14-16General Distribution Patterns Middlemen services Line breadth Costs and margins Channel length Nonexistent channels Blocked channels Stocking Power and competition1

16、4-17Retail Distribution Patterns Size patterns Direct marketing Resistance to change14-18Retail Structure in Selected CountriesExhibit 14.314-19International Channel-Distribution AlternativesExhibit 14.414-20Alternative Middleman Choices Seller must exert influence over two sets of channels One in t

17、he home country One in the foreign-market country Agent middlemen represent the principal rather than themselves Merchant middlemen take title to the goods and buy and sell on their own account14-21Home-Country Middlemen Manufacturers retail stores Global retailers Export management companies Tradin

18、g companies U.S. export trading companies Complementary marketers Manufacturers export agent14-22How Does an EMC Operate?Exhibit 14.514-23Home-Country Middlemen Home-country brokers Buying offices Selling groups Webb-Pomerene export associations Foreign sales corporation Export merchants Export jobb

19、ers14-24Foreign-Country Middlemen Manufacturers representatives Foreign Distributors Foreign-country brokers Managing agents and compradors Dealers Import jobbers, wholesalers, and retailers14-25Government-Affiliated Middlemen Marketers must deal with governments in every country of the world Govern

20、ment purchasing offices Procure products, services, and commodities for the governments own use Work at federal, regional, and local levels Efficiency of public sector versus the private sector Wal-Mart did better than FEMA after Hurricane Katrina14-26Factors Affecting Choice of Channels Cost Capita

21、l requirements Control Coverage Character Continuity14-27Locating, Selecting, and Motivating Channel Members Locating middlemen Selecting middlemen Screening The agreement Motivating middlemen Terminating middlemen Controlling middlemen14-28The Internet E-commerce Business-to-business (BSB) services Consumer services Consumer and industrial products E-commerce is more developed in U.S. than in rest of world B2B enables companies to

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