International Marketing Channels
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International Marketi © Thomson/South-Western Chapter Chapter International Marketing Channels 8.03 International Retailing 8.03 International Retailing 8 8
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8. International Marketing Channels. 8.03 International Retailing. Lesson 8.3 International Retailing. Goals Identify the various types of international retailers. Describe the factors international retailers need to consider when developing a global strategy. Terms. consumers retailer - PowerPoint PPT Presentation
Transcript of International Marketing Channels
International Marketing© Thomson/South-Western
ChapterChapterChapterChapter
International Marketing Channels
8.03 International Retailing8.03 International Retailing
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International Business© Thomson/South-Western
Chapter 8Slide 2
Lesson 8.3
International Retailing
Goals Identify the various types of international
retailers. Describe the factors international retailers
need to consider when developing a global strategy.
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Chapter 8Slide 3
Terms consumers retailer specialty store convenience stores e-commerce malls franchise
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Chapter 8Slide 4
FROM MARKETS TO MALLS consumers
individual buyers end-users of a product
retailer a member of the channel of distribution that sells to
the end user Offer convenience by providing an assortment of
products Consumer product vendors Food vendors
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Retailing History
Earliest types of retail conducted between individuals who produced a surplus to sell or trade
Often gathered in market places Markets have been around more than 5000 years Many markets remain unchanged
Temporary shelters Prices negotiated at point of sale
Chapter 8Slide 5
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Chapter 8Slide 6
Types of International Retailers
Categorized by: Function Size product width
a variety of product categories
product depth many variations within a category
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Chapter 8Slide 7
Types of International Retailers (continued)
specialty store a smaller store that specializes in a
product category (e.g., jewelry store) Higher levels of service Narrow product width/large product depth
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Types of International Retailers (continued)
general merchandise stores Have large product width and large product depth
department stores Numerous departments that specialize in certain products
superstores Combine groceries and other department store-type
products
hypermarkets European version of a superstore
Chapter 8Slide 8
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Chapter 8Slide 9
Types of International Retailers (continued)
convenience stores limited inventory offering width but little
depth
vending products can be purchased from a vending
machine
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Chapter 8Slide 10
E-Commerce
E-commerce involves using the Internet to aid in the sales process. works well in developed countries
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Chapter 8Slide 11
The Malling of the World
malls (shopping centers) 1st mall was Trajan’s Forum in ancient
Rome buildings that host a variety of stores May be totally enclosed or open-air
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IBH – 8.03 Activity Students team with someone other than
their IBP partner and… Research the largest malls in the world
Are these open air or closed How many stores are included What other amenities are included Who owns the malls What stores are missing that should be
included in the mall
Chapter 8Slide 12
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Chapter 8Slide 13
>> C H E C K P O I N T
List five type of retailers.
http://www.youtube.com/watch?v=_wgIRcuRGO4
Largest malls in the world
http://www.youtube.com/watch?v=2iCHO_-5bcY
Best shopping cities in the world
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Chapter 8Slide 14
INTERNATIONAL RETIALING STRATEGY
International retailers must: understand the needs of the local market. Have a product that meets those needs Create a brand image that attracts customers
International retailers cannot expand beyond their distribution system’s ability to support them. To open in China, Wal-Mart needed to develop
purchasing, warehousing, inventory, and shipping Also had to train workers for their stores
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Chapter 8Slide 15
Localized Versus Global Strategy
Choice depends on products and market served Localized strategy:
Adopt the language Localize selling strategies to match local laws and customs
Global strategy Single brand image for shoppers around the world Sell to high-income customers who share common
characteristics
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Franchising
International retailers often will act as a franchisor, franchising their stores to franchisees.
franchise a contractual right to licenses, trademarks, and
methods of doing business in exchange for royalties and fees
Allows international retailer to move quickly into new markets
Chapter 8Slide 16
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Franchising (cont.)
Franchisee provides: Funding to develop the business Knowledge of local market to ensure local
market conditions are met
Franchisor provides: Standardized process to ensure quality
product delivery at all locations worldwide
Chapter 8Slide 17
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Chapter 8Slide 18
>> C H E C K P O I N T
Name three factors to consider when developing an international retail strategy.
