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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