International Marketing 200094
International Marketing 200094
International Marketing 200094
200094
IM
200094
OVERVIEW
– Discussion Question 1:
Channel Design
– Discussion Question 2:
International Logistics
CHAPTER 8
Global distribution and
logistics
Learning objectives
1. Discuss the factors that influence the design
and structure of distribution channels and
understand the evolving role of e-commerce.
2. Evaluate the criteria for selecting and screening
intermediaries.
3. Explain the role of logistics and transportation in
international marketing.
4. Understand the impact on inventory levels
storage and packaging of international shipping.
Distribution channels
• Essential linkages that connect producers
and customers
• A team working towards a common goal
• Being close to customers and solving their
problems are vital to success
KEEPING THE GLOBAL
SUPPLY CHAIN MOVING
• Contract duration
• Geographic boundaries
• Payment
• Expenses
• Communication
Termination of the
channel relationship
• Reasons to terminate:
– changes in distribution approach
– lack of performance
– life cycle of the channel relationships
• Just causes for termination include fraud,
deceit, damages or failure to comply with
contractual obligations
Parallel importation (grey markets)
• Authentic and legitimately manufactured
trademark items produced and purchased
abroad, but imported or diverted to the country
by bypassing designated channels
• Price segmentation and exchange rate
fluctuations allow unauthorised importers to exist
• Eliminated through one-price policies, multiple
product versions or promoting authorised
dealers
International logistics
• The design and management of a system
that controls the flow of materials into,
through and out of international corporations
• Just-in-time (JIT) delivery
• Electronic data interchange (EDI)
• Early supplier involvement (ESI)
• Efficient customer response (ECR) systems
International logistics: phases in the
movement of materials
• Materials management:
– through the firm
• Physical distribution:
– from the firm to customers
International logistics: the concepts
• The systems concept:
– materials-flow activities
– within and outside the firm
– interaction context
• Total-cost concept:
– minimises costs by implementing the
systems concept
– maximises after-tax profits in the
international arena
International logistics: the concepts
• Trade-off concept:
– linkages within logistics systems that result
from the interaction of their components;
for example, locating a warehouse near a
customer decreases delivery times but
increases storage costs
The impact of international logistics
• Costs up to 30 per cent of an order
• Growing demand
• Fuel costs
• Increased security requirements
• New dimensions:
– geographical distances
– currency variations
– varying entry regulations
– additional intermediaries
THE FUTURE OF DELIVERY
IN OUR NEW ON-DEMAND
ECONOMY