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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 g,International Marketing Channels Chapter 14,1 4 t h E d i t i o n P h i l i p R. C a t e o r a M a r y C. G i l l y J o h n L . G r a h a m,McGraw-Hill/Irwin International Marketing 14/e,Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved
2、.,14-2,What 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 internationa
3、l marketing 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 middlemen,14-3,Global Perspective A Single Stick
4、 of Doublemint 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 interna
5、tional marketer Competitive advantage For the marketer best able to build the most efficient channel from among the alternatives available,14-4,Channel-of-Distribution Structures,All consumer and industrial products eventually go through a distribution process Physical handling and distribution of g
6、oods Passage of 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 user,14-5,Import-Oriented Distribution Structure,In an import-oriente
7、d or traditional 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 customers,14-6,Import-Oriented Distribution Structure,Demand exceeds supply The custome
8、r seeks the supply from a limited number of middlemen Distribution systems are local Few countries fit the import-oriented model,14-7,Japanese Distribution Structure,A structure dominated by many small middlemen dealing with many small retailers Channel control by manufacturers A business philosophy
9、 shaped by a unique culture Laws that protect the foundation of the system,14-8,Comparison of Distribution Channels between the United States and Japan,Exhibit 14.1,14-9,High Density of Middlemen,Not unusual for consumer goods to go through three or four intermediaries before reaching the consumer J
10、apan has a large number of independent 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 sales,14-10,Retail Structure in Three Countri
11、es,Exhibit 14.2,14-11,Channel Control,Inventory financing Cumulative rebates Merchandise returns Promotional support,14-12,Business Philosophy,Emphasizes loyalty, harmony, and friendship Supports long-term dealer-supplier relationships The cost of Japanese consumer goods are among the highest in the
12、 world Japanese law gives the small retailer enormous advantage over the development of larger stores,14-13,Large-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 Minist
13、ry of International Trade and Industry (MITI) 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 restrictions,14-
14、14,Changes in the Japanese Distribution System,Structural Impediments Initiative Deregulation Wal-Mart “New” retailers The Internet,14-15,Trends: From Traditional to Modern Channel Structures,European retailers merging with former competitors and other countries to form Europe-wide enterprises Forei
15、gn retailers attracted by high margins and prices The Internet may be most important distribution trend Covisint GlobalNetXchange E-commerce 7-Eleven competes with FedEx and UPS,14-16,General Distribution Patterns,Middlemen services Line breadth Costs and margins Channel length Nonexistent channels
16、Blocked channels Stocking Power and competition,14-17,Retail Distribution Patterns,Size patterns Direct marketing Resistance to change,14-18,Retail Structure in Selected Countries,Exhibit 14.3,14-19,International Channel-Distribution Alternatives,Exhibit 14.4,14-20,Alternative Middleman Choices,Sell
17、er must exert influence over two sets of channels One in the 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 account,14-21,Home-Country Middlemen,Manufacturers retai
18、l stores Global retailers Export management companies Trading companies U.S. export trading companies Complementary marketers Manufacturers export agent,14-22,How Does an EMC Operate?,Exhibit 14.5,14-23,Home-Country Middlemen,Home-country brokers Buying offices Selling groups Webb-Pomerene export as
19、sociations Foreign sales corporation Export merchants Export jobbers,14-24,Foreign-Country Middlemen,Manufacturers representatives Foreign Distributors Foreign-country brokers Managing agents and compradors Dealers Import jobbers, wholesalers, and retailers,14-25,Government-Affiliated Middlemen,Mark
20、eters must deal with governments in every country of the world Government 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 H
21、urricane Katrina,14-26,Factors Affecting Choice of Channels,Cost Capital requirements Control Coverage Character Continuity,14-27,Locating, Selecting, and Motivating Channel Members,Locating middlemen Selecting middlemen Screening The agreement Motivating middlemen Terminating middlemen Controlling middlemen,14-28,The 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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