Podcast
Questions and Answers
What is the main purpose of distribution channels?
What is the main purpose of distribution channels?
Which type of channel member in international markets purchases goods in their own name and develops their own marketing strategies?
Which type of channel member in international markets purchases goods in their own name and develops their own marketing strategies?
What is the key difference between local wholesalers and local agents?
What is the key difference between local wholesalers and local agents?
In international markets, who makes money from commissions or fees?
In international markets, who makes money from commissions or fees?
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What should marketers consider when designing a distribution strategy for an international market?
What should marketers consider when designing a distribution strategy for an international market?
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Which type of distribution involves stocking the product in as many sales outlets as possible in a given market area?
Which type of distribution involves stocking the product in as many sales outlets as possible in a given market area?
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What is the role of local wholesaler in the distribution channel?
What is the role of local wholesaler in the distribution channel?
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What is the primary function of retailers in the distribution channel?
What is the primary function of retailers in the distribution channel?
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Which channel member makes margin on what they sell, rather than taking title to goods?
Which channel member makes margin on what they sell, rather than taking title to goods?
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What does an exclusive distribution right for a specific geographic area or country mean for a local wholesaler?
What does an exclusive distribution right for a specific geographic area or country mean for a local wholesaler?
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What is the primary factor influencing the length of a distribution channel?
What is the primary factor influencing the length of a distribution channel?
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Which term refers to the co-ordination of various channel members to provide a unified marketing strategy?
Which term refers to the co-ordination of various channel members to provide a unified marketing strategy?
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Who is known as the dominant channel member that often dictates terms of pricing, delivery, and sometimes products?
Who is known as the dominant channel member that often dictates terms of pricing, delivery, and sometimes products?
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What is a key product consideration affecting the selection of a channel member?
What is a key product consideration affecting the selection of a channel member?
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Which factor can make a manufacturer more likely to choose shorter channels for distributing a product?
Which factor can make a manufacturer more likely to choose shorter channels for distributing a product?
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What does 'synergy' refer to in the context of selecting channel members?
What does 'synergy' refer to in the context of selecting channel members?
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'Distribution density' primarily influences which aspect of a distribution channel?
'Distribution density' primarily influences which aspect of a distribution channel?
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'Control' in selecting channel members refers to what aspect?
'Control' in selecting channel members refers to what aspect?
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'Coverage' in selecting channel members is related to what factor?
'Coverage' in selecting channel members is related to what factor?
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'Costs affecting the selection of channel members' include which type of costs?
'Costs affecting the selection of channel members' include which type of costs?
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What term is used to describe when a manufacturer is unable to convince an intermediary to work with it despite market and economic considerations?
What term is used to describe when a manufacturer is unable to convince an intermediary to work with it despite market and economic considerations?
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In the context of market entry, what does the term 'Piggybacking' refer to?
In the context of market entry, what does the term 'Piggybacking' refer to?
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What does 'Joint Ventures' in the context of market entry involve?
What does 'Joint Ventures' in the context of market entry involve?
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Which factor determines the cost differences in modes of transportation according to the text?
Which factor determines the cost differences in modes of transportation according to the text?
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Why might some companies prefer Just-in-time (JIT) delivery of parts and components in inventory control?
Why might some companies prefer Just-in-time (JIT) delivery of parts and components in inventory control?
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What directly influences the ability to shorten the order cycle in the context of order processing?
What directly influences the ability to shorten the order cycle in the context of order processing?
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What does 'Fixed Facilities Location Management' primarily focus on in global logistics?
What does 'Fixed Facilities Location Management' primarily focus on in global logistics?
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Which factor has a significant impact on warehousing practices according to the text?
Which factor has a significant impact on warehousing practices according to the text?
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Study Notes
Distribution Channels
- A strategy to transport products from manufacturing locations to the consumer, which can be done by the manufacturer or through intermediaries (agents, wholesalers, distributors, and retailers)
Channel Members in International Markets
- Import Intermediaries: identify needs in local markets and search the world to satisfy those needs, purchasing goods in their own name and acting independently of manufacturers
- Local Wholesalers or Agents: move manufacturer products to retailers, with varying roles by country
- Retailers: purchase products for resale to customers, taking title to goods, selling directly to end-users, and making a margin on sales or earning commissions
Analyzing National Channels
- Distribution Density: the number of sales outlets or distribution points used for a given geographic area, which affects consumer shopping behavior
- Channel Length: the number of intermediaries involved to bring a product from the manufacturer to the consumer, influenced by distribution density, average order quantity, and availability of channel members
- Channel Alignment: the coordination of channel members to provide a unified marketing strategy, with the dominant channel member (Channel Captain) often dictating terms of pricing, delivery, and product
Factors Influencing the Selection of Channel Members
- Costs: initial, maintenance, and logistics costs affect channel selection
- Product Considerations: perishability, technical level, and breadth of product line influence channel selection
- Control, Coverage, and Synergy: control, geographic coverage, and complementary skills affect channel selection
Alternative Approaches for Market Entry
- Piggybacking: an arrangement where one company distributes another company's products through its established channels
- Joint Ventures: when two companies form a new legal entity
- Acquisitions: purchasing an existing company to gain immediate access to a distribution system
- Locked-Up Channel: a situation where a manufacturer is unable to convince an intermediary to work with them, often due to competitive agreements or cultural forces
Global Logistics
- Planning, implementing, and controlling the physical flow of materials and finished products from points of origin to points of consumption
- Traffic or Transportation Management: deals with modes of transporting products, considering cost, lead time, and transit time
- Inventory Control: ensuring adequate inventories to avoid breakdowns in the logistics system
- Order Processing: quickly processing orders, with efficient ordering systems providing a competitive advantage
- Materials Handling and Warehousing: storing and preparing materials for transportation, with climatic changes and warehousing practices influencing storage
- Fixed Facilities Location Management: locating production facilities and warehouses to serve customers worldwide, balancing timely delivery with logistics costs
Predictions and Trends in Supply Chain and Logistics
- International companies need to balance timely delivery and logistics costs, while considering differences in local habits and culture
- Technology is reshaping and adding greater efficiency to global distribution
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Description
Test your knowledge on strategies to transport products from manufacturing locations to consumers, including the role of intermediaries like agents, wholesalers, distributors, and retailers in international markets. Explore how import intermediaries identify local market needs and develop their own marketing strategies.
