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Distribution, Global Marketing, Channels and Physical, Bringing Dreams, Tadeusz Donocki, Undersecretary, Economics Ministry, Hypermarkets, Place Utility, Time Utility. Its Global Economics lecture, i hope you like it.
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—Tadeusz Donocki, undersecretary of state, Poland’s Economics Ministry on the arrival of hypermarkets that provide customers with more products and lower prices than they have ever had.
Mature form in the United States Growing popularity in China—AIG Insurance, Mary Kay, Tupperware, Avon, Amway One-half cars are sold door-to-door in Japan
Channel innovation that has grown in popularity One manufacturer distributes product by utilizing another company’s distribution channel Requires that the combined product lines be complementary and appeal to the same customer
Support market entry by committing money, managers, and proven marketing ideas From the start, maintain control over marketing strategy Make sure distributors provide you with detailed market and financial performance data Build links among national distributors at the earliest opportunity
Saturation in the home-country market Recession or other economic factors Strict regulation on store development High operating costs
What advantages do we have relative to the local competition?
Company uses its own resources to open a store on a Greenfield site or acquire one or more existing retail facilities
Appropriate strategy when barriers to entry are low yet the market is culturally distant in terms of consumer behavior or retailing structures
A market entry strategy that entails purchasing a company with multiple existing outlets in a foreign country
This strategy is advisable when culturally distant, difficult-to-enter markets are targeted