GLOBAL MARKETING CHANNELS

GLOBAL MARKETING CHANNELS

GLOBAL MARKETING CHANNELS
GLOBAL MARKETING CHANNELS
GLOBAL MARKETING CHANNELS
GLOBAL MARKETING CHANNELS
GLOBAL MARKETING CHANNELS
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MARKETING
CHANNELS

Global marketing channels, also known as international

marketing channels, refer to the interconnected network of
individuals, organizations, and activities involved in the process
of distributing and selling products or services across
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MARKETING
CHANNELS

CHANNEL STRUCTURE
CHANNEL DESIGN
LASALA, ALVIN EARL
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CHANNELS
• CHANNEL CONFIGURATIONS for
the same product differ of the same firm
because national markets have their own
unique features. These features might
depart from the acceptable policy of the
company.
• The three flows—physical, transactional,
and informational—do not necessarily
take place concurrently or occur at every
level of the channel.
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CHANNELS
• Agent intermediaries, for example, act
only to facilitate the information flow;
they do not take title and often do not
physically handle the goods. Similarly,
electronic intermediaries, such as
amazon.com, have to rely on facilitating
agents to perform the logistics function
of their operation.
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CHANNELS HEINZ IN GREAT BRITAIN
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CHANNELS HEINZ IN GREAT BRITAIN
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CHANNELS UFC IN GREAT BRITAIN
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CHANNELS UFC IN GREAT BRITAIN
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CHANNELS HEINZ AND UFC IN THE PHILIPPINES
• May 15, 2001 HJ Heinz CO established a joint venture with
NutriAsia called Heinz-UFC Philippines leading its
flagship product, Heinz Tomato Ketchup.
• October 10, 2001 – HJ Heinz-UFC manufacturing plant in
Barangay Pulo, Cabuyao, Laguna was inaugurated. Heinz-
UFC covers 200 supermarkets and chainstores nationwide
and 55,000 groceries, sari-sari stores and public market
stores and maintains 48 warehouses, mostly managed by
dealers.
• May 3, 2006 – Nutri-Asia acquired the Heinz UFC
Philippines. Heinz continued to sell its cooking and table
sauces under the Heinz, Lea & Perrins, and HP brand
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CHANNELS KRAFT HEINZ AND CDO FOODSPHERE
• June 11, 2022 – Kraft Heinz and CDO Foodsphere enters
a distribution agreement. CDO Foodsphere oversees the
distribution of Kraft Heinz products in the hotels, full-
service restaurants, quick-serve restaurants, canteens, and
caterers in the Philippines.
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MARKETING
CHANNELS

CHANNEL STRUCTURE
CHANNEL DESIGN
LASALA, ALVIN EARL
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CHANNELS
• CHANNEL DESIGN refers to the
length and width of the channel
employed. Channel length is determined
by the number of levels, or different
types of intermediaries.
• Channel width is determined by the
number of institutions of each type in the
channel.
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CHANNELS
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CHANNELS
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CHANNELS
• CUSTOMER CHARACTERISTICS
– The demographic and psychographic
characteristics of targeted customers
form the basis for channel design
decisions.
• Answers to why, when, and how they
buy – are used to determine ways in
which products should be available to
generate competitive advantage.
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CHANNELS

• Suntory’s marketing plan stressed distribution of

Budweiser in discos, pubs, and other night spots
where Japan’s affluent, well-traveled youth
gather.
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CHANNELS

• Coca Cola Philipines’ marketing plan stressed

distribution of Lemon-Dou in major
supermarkets, convenience stores, and online
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CHANNELS
• DISTRIBUTION CULTURE –
International marketers must study
distribution systems in general and the
types of linkages between channel
members for their specific type of
product.
• Foreign legislation affecting distributors
and agents is essential part of the
distribution culture of the market.
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CHANNELS
• In selecting local firms as agents, a U.S. firm
should consider whether the local firm is an
accredited vendor of its target customer(s).
• For government projects, potential local
distributors should be knowledgeable on
relevant Philippine and U.S. laws, specifically,
Republic Act (RA) No. 9184 or the
Government Procurement Reform Act (GPRA),
and the U.S. Foreign Corrupt Practices Act
(FCPA).
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CHANNELS
• COMPETITION – Channels used by
competitors may be the only product
distribution system that is accepted by
both the trade and consumers.
• The international marketer should use
the structure effectively and efficiently,
or even innovatively.
• But in some cases, they cannot
manipulate the distribution variable.
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CHANNELS

• Lycos, Inc. partnered with Mirae Corporation in

South Korea and Sumitomo, a 250 year old
trading company in Japan because they fit in
terms of goals and objectives.
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MARKETING
CHANNELS

GLOBAL CHANNEL MEMBERS

GLOBAL DISTRIBUTION STRATEGIES
LAWAGON, JANE
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CHANNELS
• IMPORTER AND EXPORTER
• FRANCHISEE
• LOGISTICS AND
TRANSPORTATION PROVIDERS
• E-COMMERCE PLATFORMS AND
ONLINE MARKETPLACES
• MANUFACTURER/
PRODUCER
• WHOLSALER
•
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CHANNELS
• IMPORTER AND EXPORTER -
These entities specialize in importing
products into a foreign market (importer)
or exporting products from one country
to another (exporter). They handle
customs clearance, documentation, and
logistics associated with international
trade.
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CHANNELS
• FRANCHISEE - Franchisees operate
under a licensing agreement with the
franchisor (manufacturer or brand owner)
to sell their products or services. The
franchisor provides support, brand, and
guidelines, while the franchisee manages
the local operations.
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CHANNELS

May 2018
October 2011

November 2021
September 2018
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G GLOBAL CHANNEL MEMBERS
CHANNELS
• LOGISTICS AND
TRANSPORTATION PROVIDERS -
These companies handle the
transportation, warehousing, and
distribution of products between different
countries. They ensure efficient
movement of goods from the
manufacturer to various points within the
distribution network.
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CHANNELS
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CHANNELS
• E-COMMERCE PLATFORMS AND
ONLINE MARKETPLACES - Online
platforms that enable the sale of products
or services globally. E-commerce
intermediaries facilitate transactions
between sellers and buyers, providing a
digital space for international trade.
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CHANNELS
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CHANNELS

GLOBAL CHANNEL MEMBERS

GLOBAL DISTRIBUTION STRATEGIES
LAWAGON, JANE
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
• DIRECT EXPORTING
• INDIRECT EXPORTING
• STRATEGIC ALLIANCES AND
PARTNERSHIPS
• LICENSING AND FRANCHISING
• SUBSIDIARIES AND FOREIGN
DIRECT INVESTMENT (FDI)
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
• DIRECT EXPORTING - Direct
exporting involves selling products
directly to customers in foreign markets
without the involvement of
intermediaries. This approach gives the
exporting company control over sales
and distribution but requires
understanding and compliance with
export regulations and logistics.
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
• INDIRECT EXPORTING - Indirect
exporting involves using intermediaries
such as agents, distributors, or trading
companies in the home country to
facilitate sales to foreign markets. These
intermediaries handle sales, marketing,
and distribution, allowing the
manufacturer to focus on production.
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
• STRATEGIC ALLIANCES AND
PARTNERSHIPS - Establishing
partnerships or alliances with local
companies in foreign markets to leverage
their market knowledge, distribution
networks, and customer base. Joint
ventures or alliances can enhance market
penetration and reduce entry barriers.
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
• LICENSING AND FRANCHISING -
Licensing allows a foreign company to
use specific intellectual property (e.g.,
brand, technology) of the licensor in
exchange for royalties or fees.
Franchising involves granting the right to
operate a business under an established
brand and business model.
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GLOBAL DISTRIBUTION STRATEGIES
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CHANNELS
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CHANNELS
• SUBSIDIARIES AND FOREIGN
DIRECT INVESTMENT (FDI) -
Establishing wholly-owned subsidiaries
or investing in foreign production
facilities, warehouses, or distribution
centers. FDI provides a high level of
control over operations, product quality,
and supply chain, but it requires
substantial investment and carries risks.
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CHANNELS

August 2021
February 2004

November 2008
December 2018

September 2019 November 2021 March 2012

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MARKETING
CHANNELS

ECOMMERCE AND DIGITAL

CHANNELS
ANINOHON, DIVINE
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
• COMPANY WEBSITES
• GLOBAL ONLINE
MARKETPLACES
• SOCIAL MEDIA PLATFORMS
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
• COMPANY WEBSITES – International
marketers should consider creating and
optimizing a company website that
showcases products or services, provides
relevant information, and facilitates
online sales.
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
• GLOBAL ONLINE
MARKETPLACES – Partnering with
prominent global online marketplaces
like Amazon, eBay, Alibaba, and JD.com
to list and sell products. These platforms
offer extensive reach and access to a
diverse customer base worldwide.
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
• SOCIAL MEDIA PLATFORMS –
International marketers should utilize
popular social media platforms such as
Facebook, Instagram, Twitter, LinkedIn,
and TikTok to engage with a global
audience, showcase products, share
updates, and drive traffic to the company
website or online store.
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ECOMMERCE AND DIGITAL CHANNELS
CHANNELS
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CHANNELS

ECOMMERCE AND DIGITAL

CHANNELS
ANINOHON, DIVINE
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G CHANNEL CONFLICTS
CHANNELS
• PRICE AND MARGIN CONFLICTS
• TERRITORIAL OR
GEOGRAPHICAL CONFLICTS
• INTELLECTUAL PROPERTY AND
BRANDING CONFLICTS
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CHANNELS
• PRICE AND MARGIN CONFLICTS -
Disputes related to pricing strategies,
discounts, commissions, and profit
margins among manufacturers,
distributors, and retailers. Differences in
pricing expectations based on market
conditions and cost structures can lead to
conflicts.
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CHANNELS
• TERRITORIAL OR
GEOGRPAHICAL CONFLICTS -
Conflicts that arise when channel
members compete for market share
within specific geographic areas. This
can occur when there is overlap or
ambiguity in the territories or regions
assigned to different intermediaries.
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CHANNELS
• INTELLECTUAL PROPERTY AND
BRANDING CONFLICTS - Conflicts
arising from disagreements over brand
positioning, trademark use, and
intellectual property rights. Channel
members may have differing opinions on
how the brand should be represented or
protected in specific markets.
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CHANNELS

CULTURAL AND MARKET

OCADO, NICO
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G CULTURAL AND MARKET DIFFERENCES
CHANNELS
• CONSUMER BEHAVIOR AND
PREFERENCES
• LANGUAGE AND
COMMUNICATION
• BUYING SEASONS AND HOLIDAYS
• SOCIAL NORMS AND VALUES
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G CULTURAL AND MARKET DIFFERENCES
CHANNELS
• CONSUMER BEHAVIOR AND
PREFERENCES – Cultural differences
influence consumer behavior,
preferences, and buying habits. For
example, Filipinos are highly productive
social media users about 10 hrs per day.
In 2020, BSP recorded 20% digital
payments from financial transactions and
2022, 50% are going cashless.
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• LANGUAGE AND
COMMUNICATION – Language
barriers are significant hindrances in
achieving effective understanding and
respecting the diversity and uniqueness
of the market.
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• BUYING SEASON AND HOLIDAYS
– Different regions have varying buying
seasons and significant holidays that
impact purchasing patterns. Adapting
marketing campaigns, promotions, and
inventory management based on local
buying seasons and holidays are critical
for success.
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• SOCIAL NORMS AND VALUES – It is
crucial to align marketing messages and
imagery with local cultural values and
beliefs to resonate with the target
audience. Filipinos exhibit strong brand
loyalty for established and reputable
international brands. Milo is one good
example. An Australian chocolate drink
was able to blend with the Filipino culture
through sports and activities.
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