International Marketing Channels

1. 8 International Marketing Channels 8.03 International Retailing

2. Lesson 8.3International Retailing Goals • Identify the various types of international retailers. • Describe the factors international retailers need to consider when developing a global strategy. Chapter 8

3. Terms • consumers • retailer • specialty store • convenience stores • e-commerce • malls • franchise Chapter 8

4. FROM MARKETS TO MALLS • consumers • individual buyers • end-users of a product • retailer • a member of the channel of distribution that sells to the end user • Offer convenience by providing an assortment of products • Consumer product vendors • Food vendors Chapter 8

5. Retailing History • Earliest types of retail conducted between individuals who produced a surplus to sell or trade • Often gathered in market places • Markets have been around more than 5000 years • Many markets remain unchanged • Temporary shelters • Prices negotiated at point of sale Chapter 8

6. Types of International Retailers • Categorized by: • Function • Size • product width • a variety of product categories • product depth • many variations within a category Chapter 8

7. Types of International Retailers (continued) • specialty store • a smaller store that specializes in a product category (e.g., jewelry store) • Higher levels of service • Narrow product width/large product depth Chapter 8

8. Types of International Retailers (continued) • general merchandise stores • Have large product width and large product depth • department stores • Numerous departments that specialize in certain products • superstores • Combine groceries and other department store-type products • hypermarkets • European version of a superstore Chapter 8

9. Types of International Retailers (continued) • convenience stores • limited inventory offering width but little depth • vending • products can be purchased from a vending machine Chapter 8

10. E-Commerce • E-commerce involves using the Internet to aid in the sales process. • works well in developed countries Chapter 8

11. The Malling of the World • malls (shopping centers) • 1st mall was Trajan’s Forum in ancient Rome • buildings that host a variety of stores • May be totally enclosed or open-air Chapter 8

12. IBH – 8.03 Activity • Students team with someone other than their IBP partner and… • Research the largest malls in the world • Are these open air or closed • How many stores are included • What other amenities are included • Who owns the malls • What stores are missing that should be included in the mall Chapter 8

13. >> C H E C K P O I N T List five type of retailers. http://www.youtube.com/watch?v=_wgIRcuRGO4 Largest malls in the world http://www.youtube.com/watch?v=2iCHO_-5bcY Best shopping cities in the world Chapter 8

14. INTERNATIONAL RETIALING STRATEGY • International retailers must: • understand the needs of the local market. • Have a product that meets those needs • Create a brand image that attracts customers • International retailers cannot expand beyond their distribution system’s ability to support them. • To open in China, Wal-Mart needed to develop purchasing, warehousing, inventory, and shipping • Also had to train workers for their stores Chapter 8

15. Localized Versus Global Strategy • Choice depends on products and market served • Localized strategy: • Adopt the language • Localize selling strategies to match local laws and customs • Global strategy • Single brand image for shoppers around the world • Sell to high-income customers who share common characteristics Chapter 8

16. Franchising • International retailers often will act as a franchisor, franchising their stores to franchisees. • franchise • a contractual right to licenses, trademarks, and methods of doing business in exchange for royalties and fees • Allows international retailer to move quickly into new markets Chapter 8

17. Franchising (cont.) • Franchisee provides: • Funding to develop the business • Knowledge of local market to ensure local market conditions are met • Franchisor provides: • Standardized process to ensure quality product delivery at all locations worldwide Chapter 8

18. >> C H E C K P O I N T Name three factors to consider when developing an international retail strategy. Chapter 8