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Distribution

Distribution. Role of channel members customs legal restrictions Structure of channels Channel development Infrastructure issues. Strategic Implications of Distributor Choice. Difficult to change as market changes or when performance is lacking Distribution choices affect costs.

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Distribution

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  1. Distribution • Role of channel members • customs • legal restrictions • Structure of channels • Channel development • Infrastructure issues

  2. Strategic Implications of Distributor Choice • Difficult to change as market changes or when performance is lacking • Distribution choices affect costs

  3. Roles of Intermediaries • Do wholesalers • Accept return of packaging materials? • Exchange defective products? • Take back unsold merchandise? • Provide merchandising support?

  4. Retailers--Formats • Level of • service • assortment • Tradition of where merchandise is sold • Location and convenience • (Inter)national vs. local chains

  5. Legal Constraints on Retailing • Restricted store hours • Preferences for small retailers • Product uniformity • Price maintenance/ selective discounts

  6. Parallel Distribution • “Gray” market vs. counterfeiting • Gray markets--diversion from • authorized to unauthorized dealers within a country • lower cost areas (e.g., Mercedes Benz from Europe to U.S.) • temporary promotions in one region • highly taxed areas (usually through tourist purchases)

  7. Effects of Gray Trade • Brand equity • Relationships with established dealers • Legal liabilities • Complication of marketing strategies

  8. Global Promotion • Do we take some approaches to promotion for granted? • What are some things that may not work in other cultures?

  9. Promotion as a Means of Positioning • How do people see advertising and promotion efforts? • Promotion as a means to communicate • benefits of product • use of product • product image • Differences in desires by culture

  10. Promotion: Strategic and Tactical Objectives • Awareness • Trial • Attitude toward the product • Beliefs • Preference • Temporary sales increases Emerging Markets/ New Products Mature markets /established products

  11. Flops in the Transplantation of Advertising • Man and his dog • “A can a week is all we ask” • “Follow the leader--he’s on a Honda!” • Detergent ad • “Get your teeth their whitest!” • Marlboro man in Hong Kong

  12. Product Need Satisfaction Between Cultures (Means-End Chains) • Products serve fundamentally different purposes in different cultures; e.g. • bicycles • cars • toothpaste • clothing/fashion

  13. Cultural Dimensions in Advertising • Directness vs. indirectness • Comparative advertising • Humor appeal • Gender roles • Explicitness • Sophistication • Popular vs. traditional culture • Information content vs. fluff

  14. Means of Reaching Targets • Available media • outdoor media • radio • television • print media • direct mail • word of mouth • Existence of specialized magazines

  15. Media Developments • Cross-national media • satellite TV • international publications • Internet • Hype or way of the future? • Intended and unintended effects

  16. Advertising Standardization vs. Customization • Problems in transplanting advertising vs. desire for global product image • Evaluating local advertising agents’ desire for autonomy • Compromise strategies

  17. Targets of Promotion • Consumer • User • Shopper • Decider • Influencer • Industrial Buyer • Retailer • Distributor

  18. Direct Marketing • Types • Mailing • Catalog--non-mailed • Advertising based mail-order retailers • Television/ infomercials • Multi-level (“Pyramid”)

  19. Direct Marketing--Issues • Reliable postal/ delivery system • Consumer lists--by • Demographics • Prior purchase • Interests • Receptivity to mail-order

  20. Legal Issues in Promotion • Media allowed for advertising • Comparative advertising • Price promotions • coupons • premiums

  21. Price Promotion • Dangers of diversion • Longer channels may reduce chances of discounts being passed through • Stronger price-quality relationships may make discounts inadvisable

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