Place Distrubution channels Supply chain management International marketing

Distribution channels
Direct selling - low cost but low customer awareness
Retail outlets - “goods back”, brand awareness but expensive staff and run
Wholesalers - access to small retailers but further mark-up
Agents - knowledge of customer but selling rival products

Supply chain management
(logistics)
Maximize efficiency - from raw materials to point of sale
JIT - less stock
IT systems ensure no stock-out
Production facilities close to consumer
Sofrware packages for real time monitoring of stock and raw materials

Supply chain management
(logistics)
Barcoding - going through checkout notes the product is down by one, then ordering straight from the supplier
In practice it is a combination of software and human oversight
If company is out of stock, customer buys from rival and might never come back

International marketing
International expansion - advantages
Might have a huge potential new market
Successful business model can be replicated in another country
Reduces risk of recession in one country, compensated by another

International marketing
International expansion - disadvantages
Different markets may require significant product modification
Strong local competition might exist
Cultural and language barriers makes company less efficient

How if affects the 4 P’s
Product - cannot be the same throughout - Big Mac - Maharaja Mac
Place - Diff channels, maybe sell through a partner first
Promotion - Use different angles. Persil in UK, Skip in France
Price - different buying power

E-commerce
Electronic network used in buying products
B2B and B2C
Product - can be individual, e.g. Dell. Can offer a very wide range, e.g. Amazon unlike local
Price - Comparing prices easier, shopping around is common