Global Marketing Channels and Physical Distribution Lecture

Global Marketing Channels and Physical Distribution Lecture

Marketing channels exist to create utility for customers. The major categories of channel utility are place utility (the availability of a product or service in a location that is convenient to a potential customer), time utility (the availability of a product or service when desired by a customer), form utility (the availability of the product processed, prepared, in proper condition, and/or ready to use), and information utility (the availability of answers to questions and general communication about useful product features and benefits). Because these utilities can be a basic source of competitive advantage and comprise an important element of a firm’s overall value proposition, choosing a channel strategy is one of the key policy decisions management must make. For example, the Coca-Cola Company’s global marketing leadership position is based in part on its ability to put Coke “within an arm’s reach of desire”; in other words, to create place utility.

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LEARNING OBJECTIVES OF THE LECTURE:

1 Identify and compare the basic structure options for consumer channels and industrial channels.
2 List the guidelines companies should follow when establishing channels and working with intermediaries in global markets.
3 Describe the different categories of retail operations that are found in various parts of the world.
4 Compare and contrast the six major international transportation modes and explain how they vary in terms of reliability, accessibility, and other performance metrics.

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1 Global Marketing Channels and Physical Distribution Lecture PowerPoint Presentation
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