TAILIEUCHUNG - Lecture International marketing (15/e): Chapter 15 - Philip R. Cateora, Mary C. Gilly, John L. Graham

The following will be discussed in this chapter: Channel-of-distribution structures, import-oriented distribution structure, Japanese distribution structure, high density of middlemen, channel control, business philosophy, large-scale retail store law and its successor,. | International Marketing 15th edition Philip R. Cateora, Mary C. Gilly, and John L. Graham Channel-of-Distribution Structures All consumer and industrial products eventually go through a distribution process Physical handling and distribution of goods Passage of ownership Buying and selling negotiations between producers and middlemen Buying and selling negotiations between middlemen and customers Each country market has a distribution structure Goods pass from producer to user Roy Philip Import-Oriented Distribution Structure (1 of 2) In an import-oriented or traditional distribution structure: Importer controls a fixed supply of goods Marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers Roy Philip Import-Oriented Distribution Structure (2 of 2) Demand exceeds supply The customer seeks the supply from a limited number of middlemen Distribution systems are local Few countries fit the import-oriented model Roy Philip Japanese Distribution Structure (1 of 2) Four distinguishing features High density of middlemen Channel control Business philosophy Large-scale retail store law Changes in the structure Roy Philip Japanese Distribution Structure (2 of 2) A structure dominated by many small middlemen dealing with many small retailers Channel control by manufacturers A business philosophy shaped by a unique culture Laws that protect the foundation of the system Roy Philip High Density of Middlemen Not unusual for consumer goods to go through three or four intermediaries before reaching the consumer Japan has a large number of independent groceries and bakers ( or all retail stores) Small stores account for of retail food sales . emphasis is on supermarkets, discount food stores, and department stores Small stores generate of food sales Roy Philip Channel Control Inventory financing Cumulative rebates Merchandise .

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