Tuesday, September 8, 2009

Chapter 8

Chapter 8 talks about International channel design. A channel distribution is the path used to move a product from their source to the consumer. Distribution is a very important thing to have in mind when promotion a product, you might have the best brand and best quality but if you don't distribute your product successfully, you don't have anything.
There are a number of steps or intermediaries for a product to go from the manufacturer to the customer or consumer. A marketing intermediary is an independent business (agents, brokers, wholesalers) in charge of dealing with flow of goods and services from producers to consumers.
The channel designers are the ones who distribute systems to minimize total costs. The total cost concept is the final amount of costs when designing a channel of distribution. A channel captain the one who organizes and distributes the systems reducing the chance for conflict.

When international marketers have clients in other countries they need to send the products to them, this process is called exporting, shipping a product for another part of the world to trade it or sell it. There are a couple of important steps that need to be taken into consideration when exporting a product: preparing products for shipment -making sure they are protected and sealed, arranging all the documentation, and planning the shipping and delivery of products.
Importing, on the other hand is receiving a product from another country.
Indirect exporting is when a business uses brokers or agents help find customers and export products. It may increase the total cost of the sell since there are additional fees that need to be payed. Direct exporting is when the same company is in charge of finding the markets and exporting the products.
Customs is like a product immigration. it controls the products entering the country. Products get inspected making sure that they are legal and have the right documentation. Companies have to pay customs fees in this process. Custom broker is an intermediary that helps products move through customs.

International Retailing.
A retail is a member of the channel of distribution that sells to the end users or a consumer. There are 4 different types of retail stores, specialty stores, a smaller that specializes on a specific product. MAC Cosmetics for example is a store that only sales cosmetics, you will never find a dress for sell on a MAC store. General merchandise, department stores for example, the book says that general merchandise stores have both products width and depth. Convenience stores, have a limited inventory like a 7-Eleven for example. Vending machines are located everywhere and sell mostly sodas and packaged meals like Doritos of Pretzels.
E-Commerce is a huge boom now a days, is buying stuff online, like Amazons.com. It's very convinient because you can buy whatever you want without leaving your house.
Malls or shopping centers are buildings that host a variety of stores. There are different types of shopping centers or malls. Upscale shopping malls like Galleria where you find stores like Hugo Boss or Neiman Marcus or little shopping centers where you can buy unexpensive clothes like Old Navy.

No comments:

Post a Comment