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SUBJECT: Distribution Management REQUIRED: Please explain the topic, needed for our report. Thank you.

SUBJECT: Distribution Management REQUIRED: Please explain the topic, needed for our report. Thank you.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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SUBJECT: Distribution Management REQUIRED: Please explain the topic, needed for our report. Thank you.
retailer. Business-to-Business Channels Many countries house large industrial agent and merchant companies. The manufacturer's marketing team selects those that reach the company's target market most effectively. Local conditions and considerations, including legal restrictions, the availability of delivery systems, and the potential to create quality partnerships, affect these decisions. International marketing channels may include a series of different wholesalers and retailers. Facilitating agencies assist in various aspects of negotiation, financing, documentation, physical distribution, and warehousing of products internationally. International Marketing Channel Structures (5Cs) 1. Cost Some costs are incurred when establishing the channel and choosing members. Some costs are associated with maintaining the system, which typically center on encouraging channel members to remain members of the system. . 2. Coordination Coordinating the marketing efforts that must take place at each level of the system constitutes an important part of managing the international marketing. Decisions are made as to what promotional and logistical activities each member will perform. Marketing channel coordination requires an efficient international distribution process. 3. Coverage Marketers examine questions pertaining to the extent to which channel members cover certain territories. Channel member roles differ according to the country being served, and as a result, distribution strategies will likely vary from country to country. When addressing coverage, international marketers consider intensive, selective, and exclusive distribution strategies. 4. Cooperation Although it is difficult to assess, channel leaders attempt to assess the cooperation of potential channel members prior to the formation of a formalized marketing channel. The reputation of potential members, along with evidence of previous marketing success in targeted regions or countries, becomes critical. The extent to which marketing channel members simply trust one another becomes the primary determinant of cooperation between parties in a marketing channel. 55 Page DISTRIBUTION MANAGEMENT 5. Control Channel leaders can consolidate international distribution systems in order to maintain better control and cooperation among channel members. International marketers lose some control over the physical movement of goods when goods are shipped domestically. Monitoring the movement of goods and ensuring their safe delivery brings about extra expenses.
Transcribed Image Text:retailer. Business-to-Business Channels Many countries house large industrial agent and merchant companies. The manufacturer's marketing team selects those that reach the company's target market most effectively. Local conditions and considerations, including legal restrictions, the availability of delivery systems, and the potential to create quality partnerships, affect these decisions. International marketing channels may include a series of different wholesalers and retailers. Facilitating agencies assist in various aspects of negotiation, financing, documentation, physical distribution, and warehousing of products internationally. International Marketing Channel Structures (5Cs) 1. Cost Some costs are incurred when establishing the channel and choosing members. Some costs are associated with maintaining the system, which typically center on encouraging channel members to remain members of the system. . 2. Coordination Coordinating the marketing efforts that must take place at each level of the system constitutes an important part of managing the international marketing. Decisions are made as to what promotional and logistical activities each member will perform. Marketing channel coordination requires an efficient international distribution process. 3. Coverage Marketers examine questions pertaining to the extent to which channel members cover certain territories. Channel member roles differ according to the country being served, and as a result, distribution strategies will likely vary from country to country. When addressing coverage, international marketers consider intensive, selective, and exclusive distribution strategies. 4. Cooperation Although it is difficult to assess, channel leaders attempt to assess the cooperation of potential channel members prior to the formation of a formalized marketing channel. The reputation of potential members, along with evidence of previous marketing success in targeted regions or countries, becomes critical. The extent to which marketing channel members simply trust one another becomes the primary determinant of cooperation between parties in a marketing channel. 55 Page DISTRIBUTION MANAGEMENT 5. Control Channel leaders can consolidate international distribution systems in order to maintain better control and cooperation among channel members. International marketers lose some control over the physical movement of goods when goods are shipped domestically. Monitoring the movement of goods and ensuring their safe delivery brings about extra expenses.
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