Deck 12: Global Placement and Distribution Channels

Question 1

Adeena is finalizing her distribution strategy in Indonesia,and is developing statistics regarding local regulations,the competitive climate,and consumer shopping habits there.Adeena is assessing ________________________.

A) both internal and external factors
B) the stage of the product life cycle
C) external factors
D) internal factors

Answer 1

C
Explanation: There are no internal factors included in Adeena's research.

Question 2

High end kitchen cookware manufacturer LeCreuset's products are widely available through specialized retailers such as Bed,Bath and Beyond,and can also be found at department store chains such as Macys.However,the product is not heavily distributed through other types of retailers such as discount stores.LeCreuset's distribution strategy would be considered ________________.

A) intensive
B) selective
C) exclusive
D) dual

Answer 2

B
Explanation: Because LeCreuset's distribution is through specialized retailers it would not be considered intensive.

Question 3

The type of distribution outlets used for a specific product in multiple foreign markets is one factor that is easily standardized.

Answer 3

False

Question 4

Procter and Gamble's venture into rural Chinese consumer products distribution has not produced satisfactory results for the firm.

Question 5

Beechwood Gums has identified a high market penetration as one of its key objectives in pursuing the market in Russia.Accordingly,it will require a(n)_______________ distribution strategy,and a _____________ financial investment.

A) selective, moderate
B) exclusive, minimal
C) intensive, large
D) intensive, minimal

Question 6

The number of levels and types of intermediaries which perform some work to bring the product to the final user defines distribution channel ______________.

A) mix
B) breadth
C) width
D) length

Question 7

The stage of the product life cycle in which your product is currently operating is one consideration in distribution strategy development.

Question 8

Strategic alliances and franchising agreements allow constant monitoring of sales activities abroad.

Question 9

If Wendy is assessing her distribution network on the basis of the types of retailers to whom she sells; for example,convenience stores,department stores,and discount outlets,she is analyzing channel ________________.

A) width
B) length
C) directness
D) standardization

Question 10

In Yemen,consumer products are primarily distributed via small,often mobil retail kiosks situated in a local souk,or town marketplace.Residential luxuries such as refrigerators are not as readily available,so food and other items are purchased on a daily basis.This scenario speaks to the dimensions of _______________ and ______________ which must be considered when establishing a foreign market distribution strategy.

A) consumer shopping habits, outlet preferences
B) market size, consumer distribution
C) life cycle stage, regulations
D) economics, education

Question 11

The intimacy of distributor relationships is more intense as the complexity of the product increases.

Question 12

Rolex watches employs a(n)_______________________ distribution strategy.

A) limited
B) selective
C) intensive
D) exclusive

Question 13

When Greatlands Beer salespeople sell their products to consumers at holiday events and fairs across the U.K.,they are employing this type of distribution.

A) intensive
B) business to business
C) indirect
D) direct

Question 14

Mary Kay,Amway,and Avon lost significant sales in China due to the nature of their distribution network and the __________________ environment.

A) sociocultural
B) legal/regulatory
C) technological
D) economic

Question 15

Lorenzo is assessing the internal factors that impact his channel development in the Middle East.Among other issues,he is considering _________________________________________.

A) market penetration objectives and the financial strength of his firm
B) local regulations
C) consumer shopping habits and market size
D) the stage of the product's life cycle

Question 16

Choosing indirect export as an international market entry mode will provide complete control of the foreign marketing strategy.

Question 17

The food brokers and supermarkets who sell Mertensen's salt to the consumer are classified as ___________________.

A) distribution centers
B) wholesalers
C) intermediaries
D) principals

Question 18

In Europe,products such as milk,snack foods,and cigarettes are purchased with high frequency,and found in almost every possible outlet.The distribution strategy used for these types of items would be ____________________.

A) specialty
B) exclusive
C) selective
D) intensive

Question 19

In a growing economy it is expected that retail and wholesale institutions becomes larger and more specialized,while less efficient intermediaries exit the market.

Question 20

In an exclusive distribution strategy,___________________________________.

A) only a limited number of retailers have the right to sell products in their specific territories
B) product is made available exclusively through online sales
C) competitive products are not allowed to be sold in the same store
D) products are sold in every available distribution outlet

Question 21

When CCD Industries buys cleaning products from KleenRite Chemicals and resells them to the hospitality industry,they are performing a(n)____________ function.

A) retailer
B) wholesaler
C) industrial agent
D) manufacturer's representative

Question 22

Distributor partners are motivated primarily through the provision of monetary benefits such as higher commissions.

Question 23

Online purchases are typically confined to products like books and airline tickets.

Question 24

When Michelin taught its distributors how to promote its new line of tires based on their superior product characteristics,they exhibited the channel management practice of __________.

A) coverage management
B) motivational programs
C) performance management
D) capability-building programs

Question 25

TThe benefits of using intermediaries in foreign markets include all of these except ________________________.
A) increased control of pricing policy at various channel stages
B) reduction in the number of exchanges
C) reduction of cultural barriers
D) simplification of the selling process
A) horizontal

A) increased control of pricing policy at various channel stages
B) VMS
B) reduction in the number of exchanges
C) When intermediaries are independent and they act as if they are running a separate business they are participating in a ____________________distribution channel.

Question 26

Due to limited income levels in underdeveloped country markets,sales are typically made on a direct basis without the use of wholesalers in order to reduce end-user prices.

Question 27

When manufacturers create sales branches and offices that perform the wholesale function,they are creating a(n)______________ VMS system.

A) corporate
B) contractual
C) administrative
D) arm's length

Question 28

Edgemont has a network of 200 outlets across Europe.The company purchases and inventories products,then resells the items to consumers while providing after sales services.Edgemont is a(n)

A) agent
B) distributor
C) retailer
D) wholesaler

Question 29

Helga is conducting extensive research on CoreMark Construction Product Distributors in Hong Kong.She is dissecting the company's financial statements and credit ratings and reading up on CoreMark brand's influence in the marketplace.

A) Helga is considering CoreMark as a distributor partner in Hong Kong.
B) Helga has signed CoreMark as her new distributor in Hong Kong.
C) Helga has decided to terminate her partnership with CoreMark in Hong Kong.
D) Helga has recently acquired CoreMark.

Question 30

In foreign markets,wholesaler power is concentrated in the hands of a few companies that operate on a nationwide basis.

Question 31

Hernando works for Global Industrial Sales Corporation.He sells a large number of diverse but related product lines for manufacturers that produce construction-related products.Acting on behalf of the manufacturers,he obtains sales contracts and forwards them directly to his principals without taking title to the goods.Hernando is compensated via commission on sales.Global Industrial Sales Corporation represents a(n)____________________________.

A) agent
B) wholesaler
C) distributor
D) retailer

Question 32

Intermediaries perform all of these functions except ________________________.

A) after-sales service
B) selling
C) product development
D) promotion

Question 33

Wal-Mart stores depend in large part on their suppliers to monitor Wal-Mart's inventory levels at their various distribution centers.When supplies of a particular product are diminished,it is up to the suppliers themselves to place reorders on behalf of Wal-Mart.This arrangement would reflect the cooperation found in _______________.

A) diagonal marketing system
B) traditional marketing system
C) horizontal marketing system
D) vertical marketing system

Question 34

Invotech sells the latest in large scale printing equipment to wallpaper producers,who depend on the firm for continuous service and technical support.Invotech's best option for distribution involves ________________________.

A) direct sales through an internal sales force
B) indirect sales involving distributors and retailers
C) three-tiered distribution
D) indirect sales involving distributors

Question 35

Royal Crest Soda bottlers around the world,under contract with Royal Crest,are charged with the compounding of ingredients to produce Royal Crest products and subsequently distribute the finished goods.These bottlers are representative of ___________________ VMS.

A) corporate
B) contractual
C) administrative
D) integration

Question 36

Retailing giant Tesco is successful in global markets primarily due to its ability to standardize retail formats among markets and take advantage of the consequent economies of scale.

Question 37

Auckland Supply provides purchases and resells on behalf of many industries who manufacture safety equipment for use in production facilities and medical institutions.While the company takes title to the goods,they do not inventory the items,which are drop-shipped directly to the purchasers from the manufacturer.Auckland is an example of a(n)_____________________.

A) broker
B) agent
C) full-service wholesaler
D) limited-service wholesaler

Question 38

Because of the similarities in geography,culture,and consumer buying behavior,retailing formats for groceries in Europe are congruous from country to country.

Question 39

Hampton Road is an exclusive manufacturer and marketer of luxury,high end luggage and travel accessories.As it expands to the Indian market,it is not satisfied with the distribution partners available there,fearing that they do not exhibit the right image for the brand.Hampton Road should consider _____________________________.

A) direct-to-consumer sales
B) contract manufacturing
C) forward integration by company-owned stores
D) eliminating plans to market in India