1. Define: Distribution
   
   
2. Define: Channels 

1. Physical Flow of goods through Channels
   
   
2. Coordinated group of Individuals/Firms that perform functions that ADD Utility to a product/service 

1. What are the '4' Channel Objectives that exist to create Utility for customers?
   
   
2. Define: Distributor
   
   
3. Define: Agent 

1. 1) Place Utility 
   2) Time Utility
   3) Form Utility
   4) Information Utility  
   
   
2. Wholesale Intermediary that Carries: 
    - Product Lines OR Brands on Selective Basis
    
3. Intermediary who Negotiates Transactions btwn 2+ parties but does NOT take Title (ownership) to the goods beign sold/purchased
    

1. Define: Place Utility 
    
2. Define: Time Utility
   
   
3. Define: Form Utility
   
   
4. Define: Information Utility 

1. avail. in Location that is Convieniant to Potental Customer
   
   
2. avail. when Desired by Customer
   
   
3. avail. of product Processed, Prepared, in Proper Condition and/or Ready To Use
   
   
4. avail. of Answers to Q's AND General Communication about product Features/Benefits

1. What has been dramatically altering distribution when dealing with Peer-to-Peer Selling?
• Some of the most dramatically altering?
  
  
2. Door-to-Door Selling FAQ's 
     - In US?
     - growing Popularity in what Country?
               -  Top companies that do this?
     - What is sold in Japan and how many? 

1. Media
• Internet, websites, Interactive TV 
  
  
2. - Mature form in US
   - Growing popularity in China
               -  AIG Insurance, Mary Kay, Tupperware, Avon, Amway 
   - 1/2 of Cars  

1. What are the '3' Consumer Channels?
   
   
2. Consumer Products - Define: Piggyback Marketing 
    
• What does it require?

1. 1) Manufacturer-owned Stores (ex: Walt Disney opening 600 stores globally - Nike, Levi, Apple) - designed to provide an interactive shopping experience and build brand loyalty
   2) Independent Franchise
   3) Independent Retailers  (ex: Walmart)
   
   
2. one Manufacturer Distributes product by Utilizing Another Company's Distribution Channel - grown in popularity  
    
• Combined Product Lines be Complementary AND Appeal to Same Customers  

What are the '6' Distribution Channels that Industrial Products Can go through prior to Reaching Customers?

Establishing Channels 

1. Define: Direct Involvement
   
   
2. Define: InDirect Involvement
   
   
3. what about the Channel Strategy? 

1. company Establishes:
   -Own Sales Force OR
   -Operates its Own Retail Stores
   
   
2. comp. Utilizes:
   - Independent Agents 
   - Distributors   
   - Wholesalers 
   
   
3. must Fit in company's Competitive Postion AND Marketing Objects for each National Market 

0Working with Channel Intermediaries 

FAQ's for Building Distributor Relationships (3 facts)

1. Distributor Selection? 
2. Who to look for?
3. Relationships with Local-Distributors
4. how to Support Market Entry?  (3 things)
5. what do you Need to do to Mantain Control from the Start of the Relationship?
6. What must Distributors provied?

1.  Select Distributors
           - don't let them select you - look nationally
2. Look for ones Capable of Developing Markets
           - rather than those with "few" good customer contacts
3. Treat Local-Distributors as LT Partners   
           - NOT temporary Market-Entry Vehicles
4. - Committing $, Managers, and Proven Mkting Ideas
5. Over the MDF - aka have an amazing Marketing Strategy  
6. detailed Market and Financial Performance Data
7. Build Links with national distributors at earliest opportunity 

1. Department Stores - several depts under one roof, 
    
2. Specialty Retailers - less variety than dept. stores- offer a great deal of merchandise depth
   (styles,colors,etc) and knowledgabe staff ex: Gap
    
3. Supermarkets - departmentalized, single story retail establishment offers variety of food and non food on self service basis 
    
4. Convenience Stores - some of same products as supermarkets but merch mix is limited to high-turnover convienence and impulse products (prices are usually higher than supermarkets 15-20%) - high traffic locations
    
5. Discount Stores/ Warehouse Clubs - divided into sev. categories - emphasis on low prices
     - Full-line Discounters: ex: walmart
     - Warehouse club:  shoppers  join club to take advantage of savings
     - Dollar Stores :sell assortment of prod. at low prices
    
6. Hard Discounters - sell tightly focus selection of goods (ex: aldi) 900-1600 items 
    
7. Hypermarkets - hybrid retailing combining discounter, supermarket and warehouse club approaches under a single roof (200k-300ksqft)
    
8. Supercenters - category killers and big-box retail
9. Super Stores / Category Killers  - specialize in selling vast assort of a particular category (ex:toysRus)
10. Shopping Malls - grouping of stores in one place 
11. Outlet Stores - dispose of excess inventory , out of date merchandise and factory seconds 
12. Outlet malls: where outlet stores are grouped 

Top '10' Global Retailers 2011 Sales; Millions

10. Target - US
9.  The Home Depot - US
8. Aldi Einkauf GmbH & Co. - Germany
7. Costco - US
6. Kroger Co. - US
5. Shwarz Unternehmens Treuhand KG - Germany

4. Tesco - UK

3. Metro AG - Germany

2. Carrefour - France

1. Wal-Mart - US

Why Global Retailing?

1. Name '4' Environmental Factors that promote Global Retailing?
   
   
• What is the Critical Question to ask in this situation? 

1. 1) Saturation in Home-country Market
   2) Recession OR other Economic Factors
   3) strict Regulation on Store Development
   4) High Operating Costs
   
   
• what Advantages do we have Relative to Local Competition? 

1. What are the '4' Quadrants Classifying Global Retailers ? - include Retail examples 

1. - Fewer Categories + Own-Label Focus
     - ex: IKEA, Benetton, Gap, C&A 
2. - Few Categories + Manufacturer Brands Focus
     - ex: Toys "R" Us, Virgin, Douglas, Spar 
3. - Many Categories + Own-Label Focus
     - ex: Marks & Spencer, Migros 
4. - Many Categories + Manufacturer Brands Focus
     - ex: Carrefour, IGA, Promodes 

1. what are the '4' Global Retailing Expansion Strategies? - Describe Matrix  
   
   
2. Define: Supply Chain (3)
   
   
3. Define: Logistics 

1. 1) Organic Growth - Easy to Enter + Culturally Close
   2) Franchise - Easy to Enter + Culturally Distant 
   3) Chain Acquistion - Difficult to Enter + Culturally Close 
   4) Joint Venture - Difficult to Enter + Culturally Different 
   
   
2. all Firms that support activities by:
     - Generating Raw Materials (RM)
     - Converting RM into Components
            OR Finished Products
     - Making products Available to Customers 
   
   
3. Integrates activities of ALL Companies to ensure an Efficent Flow of goods through Supply Chain 
      - both upstream and downstream in the Value Chain - Managment Process

1. Define: Organic Growth (2)
   
   
2. when is Franchising Appropriate?  (2) 
   
   
3. Define: Chain Acquisition
   
   
4. When is a Joint Venture/Lisencing Advisable? 
• What markets are targeted? 

1. company Uses Own Resources to:
     - Open a Store on a Greenfield Site OR
     -  Acquire 1+ more Existing retail Facilities 
   
   
2. Barriers to Entry are Low YET market is Culturally Distant in terms of: 
     - Consumer Behavior OR 
     - Retailing Structures 
   
   
3. Purchasing a Company with Mulitiple Existing Outlets in a Foreign Country - Market Entry Strategy
   
   
4. when targeting Culturally Distant  and
• Difficult-to-enter Markets 

Physical Distribution, Supply Chains, and Logistics Management

1. Define: Order Processing (3 components)
    
2. Define: Warehousing
• Define: Distribution Centers  (2 components)
  
  
3. Inventory Management (ensures 2 things)
   
   
4. Transportation 
•  What are the Most Common Modes? (6)

1. Includes:
     - Order Entry (Order entered into Comp. IT System)
     - Order Handling (locating, assemblying, and movign products into distribution)
     - Order Delivery 
   
   
2. used to Store Goods Until they are Sold 
• - efficiently Recieve Goods from Suppliers AND
  - Fill Orders for Individual Stores/Cust.  
  
  
3. Ensures:
     - company Neither Runs Out of manufacturing Components or Finished Goods
     - NOR Incurs Expense and Risk of Carrying Excessive Stocks of these items
   
   
4. Method/mode utilized when Moving Products through Domestic and Global Channels 
• - Rail (cost-effective, for large Quantities)_- Truck (long-haul, and local delivery)- Air - Water  - Pipeline - Internet

Transportation Terms

1. Define: Channel Strategy
   
   
2. Define: Containerization
    
3. define: Intermodal transportation

1. Analyzing each Shipping Mode to determing:
     - Which Mode OR Combination of Modes - will be both Effective AND Efficient 
    
2. loading ocean-going frieght into steel boexes 20,40ft or longer 
   
   
3. combo of land and water shipping from producer to consumer  

1. Define: cherry picking
2. Define: Organized Retail:

1. accepting orders only from manufactuers with destablished dmand - not interested in developing a market for new product 
2. Modern, branded chain stores