Global marketing channels and physical distribution global marketing chapter 12 2011 pearson education, inc. Distribution strategy 16 physical distribution definition. When selecting which marketing channels to pursue, its useful to understand an organizations target users and their preferences. Storing providing help, support and services to the customers. Channel marketing focuses on the distribution of products from the manufacturer to the consumer. Role of channel of distribution and physical distribution of. Global retailing retailing activity that crosses national boundaries 10 types of retail operations establishing channels and working with channel intermediaries trends in global retailing not every store concept is exportable overseas 1. Channel objectives distribution channelsconsumer and industrial global retailing physical distribution, supply chains, and. Pdf international journal of physical distribution. In marketing, a distribution channel is a vehicle used by the company to sell its products and services to it customer base. Global marketing channels and physical distribution by zuna. Global marketing channels and physical distribution. The first called the exchange function, involves sales of the product to the various members of the channel of distribution.
Physical distribution is defined as the group of activities that deals with the supply of finished product from the finished product to the end consumers. Mar 02, 20 the distribution p of the marketing mix plays a central role in a given firms value chain. The american marketing association defines a channel of distribution as an organized network agencies and institution that, in combination, perform all the activities required to link producers with. Many producers do not sell products or services directly to consumers and instead use marketing intermediaries to execute an assortment of necessary functions to get the product to the final user. Major objectives of distribution channel are physical distribution and insuring product availability. Come browse our large digital warehouse of free sample essays. Since these channels are in direct and regular contact with the. The second, the physical distribution function, moves products through the exchange channel, simultaneously with title and ownership. Chapter 12 global marketing channels and physical distribution channel objectives marketing channels exist to create utility for customers place utility availability of a product or service in a location that is convenient to a potential customer time utility availability of a product or service when desired by a customer. Physical distribution consists of activities involved in moving finished goods from manufacturers to customers.
Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Global marketing channels and physical distribution prezi. Studsplanetleading education consultant in india 2. Marketing channels help this exchange process to take place. Global marketing has become an established fact of life for more and more. Start studying chapter 12 global marketing channels and physical distribution. Marketing channels and physical distributiona marketing channel is a system of relationships existing among businessesthat participate in the process of buying and selling products. An effective distribution channel strategy can assist in expanding product reach and availability, as well as increasing revenue.
Channel objectives distribution channels consumer and industrial global retailing physical distribution, supply chains, and logistics. Distribution channel or marketing channel 1amitabh mishra ph. Terminology and structure distribution is the physical flow of goods through channels channels are made up of a coordinated group of individuals or firms that perform functions that add utility to a product or service distributor. Marketing channels in the supply chain boundless marketing. In businesstoconsumer marketing btoc or b2c, consumer channels are designed to put products in the hands of people for their own use. Marketing channels represent the relationship between a producer and the user, usually in the form of a strategic alliance such as a retailer. Distribution channel marketing channels by amitabh mishra. Dc comes from the marketing and retailing side and sc co mes from procurement and logistics side, they. In some cases, these channels are a simple exchange of services between the business and the customer.
Pdf global marketing channels and the standardization. There are four major types of distribution channels, which are as below. They also increase efficiency and close the gap between producers and consumers. Chapter 18 marketing channels and physical distribution. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Global marketing channels and physical distribution slideshare. Six classic distribution paradigms for global marketing channel.
In general, the functions of the intermediaries are to sorting, accumulating. However, more often, the channel also includes intermediaries. How to prepare strategy for marketing distribution channel. A distributor is the middleman between the manufacturer and retailer. A distribution channel is a group of dependend on each other. It also includes several critical decision making areas like customer service, materials, inventory, packaging of the finished product, order processing and fulfilment.
Analyzing nikes distribution channels and retail strategy. An effective distribution strategy would be key for nike. Types of distribution channels in marketing bizfluent. Storage x is a marketing function, and it refers to the holding of goods until they are sold. Distribution channelmarketing channels by amitabh mishra. Lewis, marketing electrical apparatus and supplies,mcgrawhill, inc. Inspecting a product in a store and and then order them electronically, especially interesting for products that need physical experience. The product flow refers to the movement of the physical product from the manufacturer through all the parties who take physical possession of the product until it reaches the. Distribution strategy 11 channel strategy distribution intensity. Flows in marketing channels open textbooks for hong. Get the knowledge you need in order to pass your classes and more. Producers produce goods and finally make them ready for the market. Physical distribution functions will impact both channel organization and the manner in which channel relationships are coordinated over time.
Using physical distribution strategy for better channel. Product distribution or place is one of the four elements of the marketing mix. Role of channel of distribution and physical distribution of goods. Consequently, the objective of the thesis was to analyse the current distribution strategy and market situation, and give recommendations for the distribution strategy of the brew. Physical distribution distributor its an intermediary who negotiates exchange transactions between two or more parties but does not take title to the goods being purchased or sold. How can you manage product distribution from a few thousand miles away. In this lesson, well be looking at physical distribution and the movement of finished goods from production to consumer. Successful marketing distribution channel management enables companies to deliver their products to customers efficiently. Physical distribution links a business and its customers.
Ppt of physical distribution authorstream presentation. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different. Distribution strategy 3 definition distribution is one of the four aspects of marketing. Distribution or marketing channels are systems of mutually dependent organisations included in the process of making goods or services available for use or consumption. The major functions of a distribution channel bizfluent. To illustrate the importance and role of channels of distribution by reference to two case studies on cotton and horticultural produce.
Setting up international departments means that your brand will directly enter another countrys market. Distribution channels can be also defined as marketing channels or market channels. A field manual and encyclopedic glossary of operations. The chapter starts by showing the importance of the institutional and physical channel of distribution in global marketing. Yet an understanding of pdchannel management interfaces is necessary if the marketer is to play a role in shaping the firms pd strategy so that it is more likely to foster channel member. Changes to the product can have a negative or positive. The concept of distribution3 department of statistics. A classification system for analyzing research studies prescott c. Volume 14 number 3 international channels of distribution. The methods and routes to be adopted to bring the products to the marketto the ultimate consumers and industrial users, must be determined. A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.
Chapter 12 global marketing channels and physical distribution. Global marketing channels and physical distribution by. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. Oct 20, 2018 distribution channels are a way to funnel sales to target markets.
Today managers becoming more important due to the distribution issue, according to the distribution, physical distribution and. It is part of the distribution or place component in the four ps of the marketing mix product, pricing, promotion, and place. A channel of distribution or marketing channel is the structure of intracompany organisation units and extra company agents and dealers, wholesaler and retailer through which a commodity, product or service is marketed. Global marketing channels and physical distribution global marketing chapter 12 global marketing schrage 12 1 channel objectives marketing channels exist to create utility for customers place utility availability of a product or service in a location that is convenient to a potential customer. Distribution channels always include the manufacturer and the final consumer, the main duty of distribution system is that place goods to potential customers in the right time and place. Mktg 680 chapter 12 global marketing channels and physical. We will explore the functions of physical distribution and its importance. Pdf distribution channels management in different regions. Read this essay on chapter 12 global marketing channels and physical distribution. Chapter 12 global marketing channels and physical distribution channel objectives marketing channels exist to create utility for customers place utility availability of a product or service in a location that is convenient to a potential customer time utility availability of a. Useful notes on international marketing channel system. Learn marketing 5 distribution channels with free interactive flashcards.
Global marketing, 9e keegan chapter 12 global marketing channels and physical distribution 1 in spite of walmarts potential to transform indias retail sector for the better, indian activists and policy makers are worried because. Global marketingschrage 12 122 distribution channels. A channel is a passageway that allows the happening of certain processes. Ch12 global marketing channels and physical distribution studocu. They play a pivotal role in marketing and promotion. Pelton is an awardwinning teacher and researcher in the college of business administration at the university of north texas. Physical distribution involves management of physical flows of raw materials, finished products from the points of origin to the points of consumption to meet the customer needs at a profit. Global marketing introduction channels and physical. Importance of distribution channels marketing channels for national economy abstract the paper starts from the importance of merchandise distribution and distribution channels and mutual relationships of the participants in them. These intermediaries, such as middlemen wholesalers, retailers, agents, and brokers, distributors, or financial.
Physical distribution pd while given a great deal of attention in the marketing literature during the past decade, has not been examined explicitly in terms of how it interfaces with channel management. They assure presale and postsale service to the consumers. Dr peltons principal research interests include marketing channels, relationship marketing and international distribution. Distribution channels consumer and industrial global retailing physical distribution, supply chains, and logistics 2011 pearson education, inc. Marketing about international channels of channel decisions involve supply. A marketing channel can be defined as a group of exchange relationships, which create customer value in acquiring. Effective management of physical distribution and logistics has a substantial impact on a company and its customers costs, efficiency and effectiveness. There are three ways to setup global distribution of your products. In indirect channel of distribution, the functions of buying, selling, transporting, storing, are undertaken by the middlemen. Role of channel of distribution and physical distribution. Distribution strategy 4 distribution channels to reconcile the needs of producers and. Therefore, he takes the help of some intermediaries to distribute his goods.
Development of distribution channels based on the concentration processes. This gives you complete control on distribution, but elements like personnel, training, compensation and cultural background should be considered. The distribution p of the marketing mix plays a central role in a given firms value chain. Although sales to wholesalers accounted for about 68% of nikes global revenues in fiscal. The distribution channel includes both the wholesale and retail channels. Physical distribution and logistics are part of the place element of the marketing mix and these have had a major impact on channel strategy and design. In general, distribution channels are either direct, meaning the company interacts with customers directly, or indirect, meaning intermediaries perform activities on behalf of the company to.
Thus, a channel of distribution is the route or path along which goods move from producers to ultimate consumers. Global marketing channels and physical distribution ppt download. A distribution channel is a path by which all goods and services must travel to arrive at the intended consumer. This process is painful, slow, manual, errorprone, and often outdated. Channel objectives distribution channels consumer and industrial global retailing physical distribution, supply chains, and. Marketing channels of a manufacturer of electrical wire and cable. The distribution channels offer pivotal role of a sales agent. Marketing channel may be defined as pathways composed of intermediaries. It is an important part of marketing activity and a major component of marketing mix. Sep 23, 2010 distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Distribution channels, whether physical or digital, plays very important role in the growth of the business and hence understanding of functions is essential for both marketer and future marketer i. Distribution channels meaning and their significance. Indirect channels are more typical and result, for the most part, because producers are not able to perform the tasks provided by middlemen see exhibit 33. Since most manufacturers and producers dont sell directly to their end user, they use a marketing.
Global marketing channels and physical distribution chapter 12 channel objectives place utility time utility form utility information utility these utilities can be a basic source of competitive advantage and comprise an important element of the firms overall value proposition. The route taken by goods as they move from producer to consumer is known as channel of distribution. International channels of distribution semantic scholar. Concept of distribution channels in marketing mba knowledge.
The cost of incoming transportation tends to be hidden in the price, but the business owner will feel the price directly if he or she has to ship product any. The goods are produced at one place but the customers are scattered over a wide geographical area. Thus, it is very difficult for a producer to distribute his products all over the country. Distribution channels definition types of distribution. Was it available at your study centre or you bought it from the. Place utility global marketing channels and physical. Choose from 500 different sets of marketing 5 distribution channels flashcards on quizlet. At the same time, the marketing conditions in russia were getting unstable, and they were expected to have a negative impact on the companys performance. Lesson 20 channels of distribution are you aware that the study material of business studies, which is now in your hands, is prepared at the headquarters of the national institute of open schooling nios situated at new delhi. Aug 06, 2012 marketing management text and cases marketing channels and physical distribution 18 chapter marketing channels and physical distribution 181181 dr s. More clarity is necessary on the role of physical distribution functions within the general domain of channel management frazier, 2009. Physical distribution and logistics in marketing management. Distribution channels management in different regions. Global marketing channels and the standardization controversy article pdf available in journal of global marketing 111.
Purposeobjectives of distribution channels amitabh mishra ph. A distribution channel is a group of dependend on each other organisation units, which are taking part in process of flow of producst or services form producers to buyers. Physical distribution is concerned with the physical movement of the goods from the producer to the consumer. It is an important part of marketing activity and a major component of marketing.