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Global Marketing Channels & PhysicalDistribution.
Channel objectives & constraints.
Channel Utility.o Place.o Time.o Form.o Information.
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Company objective is constraint by severalfactors.
o Customer characteristics.Number, geographic distribution,
income, shoppinghabits & reactions to different selling
methods.Industrial product, Mass market product.
o Product characteristics.Degree of standardization, perish
ability, bulk, servicerequirements & unit price.
o Middleman characteristics.Middleman are in business to
maximize their ownproduct.Reluctance in building a market for new
product.Distributive incentive.
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Selection & care of distributors & agents.Zero
performance v/s excellent performance.
Sourcing the information from local chamber ofcommerce.Talk to
end users of the products.
Agents / Distributor performance.
Quality of agents.Quality of product.Margins offered.
Termination .Clauses on performance & cancellation.Legal
adversity.You should be able to read & understand
theagreement.
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o Environmental characteristics.Economic, social, political
environment.
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Distribution channels terminology & structure.
Consumer products.o Door to door selling.
o Manufacturers own stores. o Franchise operations.o
Combination.
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Marketing channel alternatives Consumer products.
M M M M M M
W
R
Customer
RRRR
AgentsBrokers MSF MSF MSF
WW
M a
i l O r d e r
D o o r
t o D o o r
M a n u
f a c
t u r e r s o w n
r e t a i l o u
t l e
t
H o u s e
P a r t y
P a r t
t i m
e
S a
l e s p e r s o n
M=Manufacturer MSF=Manufacturer sales force
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Industrial products Channel alternatives.
M
Customer
MSF
W
M M
W
D or A
W
M=Manufacturer MSF=Manufacturer sales force
W=Wholesaler D or A=Distributor or Agent
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Channel strategy for new market entry.
o Company must use established channels.o Build its own
channels. o Provide special incentives to independent channel
agents.o Establishing direct distribution in a new market can
also
be expensive.o Expense of direct sales force acts as a deterrent
to
establish direct distribution.
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Physical distribution & logistic.Physical distribution &
logistic are the means bywhich products are made available to
customerswhen & where they want them.
o Order processing.o Ware housing.o Inventory management.o
Transportation.
