Download The Political, Legal, and Regulatory Environments of Global Marketing

Chapter 12 – Global Marketing Channels
and Physical Distribution
True/False
1.
Coca-Cola Company’s leadership position in world markets is based in part on its ability
to put Coke “within an arm’s reach of desire.”
2.
The first channel alternative for manufacturers is to market directly to buyers via the
Internet.
3.
E-bay pioneered a form of online commerce known as p-to-p or peer-to-peer marketing
whereby individual consumers market products to another individual.
4.
E-bay assists large companies such as Disney and IBM in setting up online “storefronts” to
sell items for fixed prices in addition to conducing b-to-c auctions.
5.
Nestle is using an innovative approach to distribution in Brazil with a program of door-todoor selling in high-income neighborhoods.
6.
In Japan, the biggest barrier facing U.S. auto manufacturers is that half the cars that are
sold each year are sold door-to-door.
7.
Distribution channels for automobiles in Japan and the United States are similar in that
most car buyers in both countries visit dealerships before making a purchase.
8.
The close long-term relationships between auto salespersons and the Japanese people can
be considered as a consumer version of the keiretsu system.
9.
Singer was one of the first successful U.S. based international company to establish a
worldwide chain of company-owned and company-operated outlets to sell and service
sewing machines.
10.
Generally, the more perishable the product, the shorter the distribution channels should be
11.
In Piggyback marketing arrangement one manufacturer obtains product distribution by
utilizing another company’s distribution channels.
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12.
In China several of Mattel’s toy lines are being marketed by local Avon representatives.
13.
Dell Computer has reached more than $56 billion in annual global sales by forging close
relationships with wholesalers and retailers in individual country markets.
14.
Japan's Kyocera Corporation has achieved great success as a global marketer of industrial
products by using its own in-house sales force.
15.
Channel strategy in a global marketing program must fit the company’s competitive
position and overall marketing objectives in each national market.
16.
When utilizing the services of a local independent distributor, management is well advised
to treat the distributor as a temporary market-entry vehicle.
17.
When utilizing the services of a local independent distributor, management is well advised
to yield control of marketing strategy to the distributor.
18.
An exporter that is new to a particular market would do well to choose a middleman with a
reputation for "cherry picking" products.
19.
A company has chosen its distributor well if the latter makes a personal, individual
commitment toward the company's products.
20.
Based on sales figures Carrefour is the largest Hypermarket in France.
21.
Specialty retailers offer less variety than departmental stores.
22.
Wal-Mart is the reigning king of the full-time discounters.
23.
Laura Ashley, Body Shop, and Victoria's Secret are all examples of specialty retailers.
24.
25.
Marks & Spencer is an example of a specialty retailer.
Hypermarkets are a hybrid retailing format combining the discounter, supermarket, and
warehouse club approaches under a single roof.
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26.
Toys “R” Us, Home Depot, and IKEA are referred to as “category killers” in the retailing
industry.
27.
British retailer Marks & Spencer is a good example of a category killer.
28.
American retailers such as Gap have had difficulty getting established in Japan because of
the superior service offered by competing Japanese retailers.
29.
IKEA has achieved success in global retailing by combining a niche strategy with an ownlabel focus.
30.
Organized retailing describes activity by large multistore chains such as Woolworths,
Tesco, and Wal-Mart, which accounts for only abut 3 percent of India’s $200-$250 billion
annual retail sales.
31.
Organic growth occurs when a company uses its own resources to open a store on a
greenfield site or to acquire one or more existing retail facilities from another company.
32.
If a global retailer seeks to expand in a country that is both culturally close to the home
country and easy to enter, the retailer is well advised to use a joint venture strategy.
33.
A global retailer seeks to expand in a country that, in the opinion of management, is both
culturally distant and difficult to enter. The retailer would be well advised to use a joint
venture strategy.
34.
When Carrefour entered the Japanese market, it did so independently (i.e., without seeking a
Japanese joint-venture partner). This represents an appropriate market-entry approach for a
global retailer.
35.
When British entrepreneur Richard Branson opened the first Virgin Megastore in Japan, he
did so by establishing a joint venture with the Marui retailing chain. This represents an
appropriate market-entry approach for a global retailer.
36.
The experience of 7-Eleven stores in Japan shows how channel innovations developed in
one country rarely succeed in other countries.
37.
By definition, a retailer that caters to the general public would be “downstream” in an
industry’s supply chain.
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38.
A new tool for inventory management is RFID which utilizes small tags that are attached
to pallets, containers, or individual inventory items.
39.
China is the world’s second-largest domestic air-cargo market which is served by FedEx
Express, the world’s leading express delivery provider.
40.
In 2007, the first shipments of Apple’s highly anticipated iPhone arrived in the United
States via air freight from Asia.
Multiple Choice
41.
Marketing channels exist to create utility for customers. The major categories of channel
utility include all of the following except:
a.
b.
c.
d.
e.
42.
Marketing channels have the potential to create which of the following types of utility:
a.
b.
c.
d.
e.
43.
place utility
time utility
form utility
information utility
all of the above
Some wine importers insist on shipping their wines in refrigerated containers ("reefers") to
protect the wines from being damaged by high temperatures. Such importers are creating
which kind of utility:
a.
b.
c.
d.
e.
44.
place utility
price utility
information utility
form utility
time utility
place utility
time utility
form utility
information utility
worker utility
Peer-to-peer (p-to-p) marketing uses distribution channels through:
a.
b.
business-to-consumers
electronic commerce
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c.
d.
e.
45.
Ebay was a pioneer in a form of online marketing known as:
a.
b.
c.
d.
e.
46.
vodka
cigarettes
discount
bread
luxury cars
What solution did Andersen Consulting provide to the Moscow Bread Company to solve
the problem of stale bread:
a.
b.
c.
d.
e.
48.
b-to-c
b-to-b
p-to-p
d-to-d
c-to-b
In the early 1990s, Andersen Consulting helped a Russian company overcome distribution
problems with which of the following:
a.
b.
c.
d.
e.
47.
business-to-business
door-to-door
manufacturer-to-wholesalers
deliver the bread frozen
package the bread in plastic bags
MBC should convert a paperless office to cut red tape
deliver the bread sliced rather than in whole loaf form
use paper packaging for bread
Nestle is using an innovative approach to distribution in Brazil with a program which
consists of selling its products via:
a.
b.
c.
d.
e.
upscale supermarkets
hypermarkets
pulperias
convenience stores in low-income neighborhood.
door-to door selling in low-income neighborhood.
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49.
Which of the following is most accurately describes the relative length of consumer and
industrial distribution channels:
a.
b.
c.
d.
e.
50.
Sales representatives in which Japanese industry cultivate close, long-term relations with
customers by selling door-to-door:
a.
b.
c.
d.
e.
51.
consumer electronics
pharmaceuticals
automobiles
soft drinks
groceries
The channel arrangement where one manufacturer obtains product distribution by utilizing
another company’s distribution channel is referred to as:
a.
b.
c.
d.
e.
52.
Consumer channels tend to be longer (consist of more intermediaries) than
industrial channels.
Industrial channels tend to be longer (consist of more intermediaries) than
consumer channels.
Both consumer and industrial channels tend to be long (consist of several
intermediaries).
Both consumer and industrial channels tend to be short (consist of few
intermediaries).
Consumer channels tend to be shorter (consist of few intermediaries) than the
industrial channels.
door-to-door selling
franchising
piggyback marketing
business-to-business marketing
business-to-consumer marketing
Dell rang up $ 56 billion in direct sales of their PC systems in 2006 using:
a.
b.
c.
d.
e.
door-to-door sales
piggyback marketing
web-site sales
business-to-business sales
hypermarket sales
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53.
Which personal computer company focuses on business-to-business marketing using a
direct-sales approach:
a.
b.
c.
d.
e.
54.
Which of the following is an appropriate guideline for companies selecting independent
distributors in international markets:
a.
b.
c.
d.
e.
55.
Select distributors—don't let them select you.
Look for distributors capable of developing markets.
Treat local distributors as long-term partners.
Maintain control over marketing strategy from day one.
All of the above are appropriate guidelines.
Which of the following is not an appropriate guideline for companies selecting
independent distributors in international markets:
a.
b.
c.
d.
e.
56.
Hewlett-Packard
Compaq
Dell
Acer
Sony
Select distributors—don't let them select you.
Look for distributors capable of developing markets.
Give local distributors control over marketing strategy.
Treat local distributors as long-term partners.
All of the above are appropriate guidelines.
Which of the following is the largest retailer in the world in terms of annual sales:
a.
b.
c.
d.
e.
Sears
Metro
Kmart
Carrefour
Wal-Mart
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57.
By definition, ________________ feature a narrow but deep merchandise mix and high
levels of service.
a.
b.
c.
d.
e.
58.
Which of the following does NOT qualify as a "category killer":
a.
b.
c.
d.
e.
59.
Victoria's Secret
IKEA
Home Depot
Circuit City
Toys "R" Us
Which European retailer failed in its attempt to open a store on New York's fashionable
Fifth Avenue:
a.
b.
c.
d.
e.
60.
department stores
specialty retailers
super markets
convenience stores
discount stores
Virgin Group
Marks & Spencer
Carrefour
Galeries Lafayette
Louis Vuitton
Which of the following correctly characterizes the retailing strategy shared by Toys "R"
Us and Virgin Megastores:
a.
b.
c.
d.
e.
few product categories, own-label focus
few product categories, manufacturer brand focus few product categories, ownlabel focus
many product categories, own-label focus
many product categories, manufacturer brand focus
none of the above
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61.
Which of the following categories best describes the approach of Britain's Marks &
Spencer to global retailing:
a.
b.
c.
d.
e.
62.
Which approach to global retail expansion involves "greenfield" investment using a
company's own financial resources to build a new store from the ground up:
a.
b.
c.
d.
e.
63.
chain acquisition
organic growth
franchise
joint venture
own-label focus
Which approach to retail expansion is most appropriate when targeting a country that
management considers both culturally close and easy to enter:
a.
b.
c.
d.
e.
64.
few product categories, own-label focus
few product categories, manufacturer brand focus
many product categories, own-label focus few product categories, own-label
focus
many product categories, manufacturer brand focus
none of the above
organic growth
chain acquisition
franchise
joint venture
own label focus
When British entrepreneur Richard Branson established the first Virgin Megastore in
France, he invested a great deal of money to develop a retail space on the famous ChampsElysées. Judging by the approach Branson used, he and his management team must have
viewed France as:
a.
b.
c.
d.
e.
culturally close and easy to enter
culturally distant and easy to enter
culturally close and difficult to enter
culturally distant and difficult to enter
culturally difficult and easy to enter
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65.
When British entrepreneur Richard Branson established the first Virgin Megastore in
Japan, he established a joint venture with the Marui retailing chain. Judging by the
approach Branson used, he and his management team must have viewed Japan as:
a.
b.
c.
d.
e.
66.
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA,
and Gap:
a.
b.
c.
d.
e.
67.
few product categories, own-label focus
few product categories, manufacturer brand focus
many product categories, own-label focus
many product categories, manufacturer brand focus
none of the above
When Wal-Mart Stores first expanded into Mexico, management established a joint
venture with the country's largest retailer. Judging by the approach Wal-Mart used,
management must have viewed Mexico as:
a.
b.
c.
d.
e.
68.
culturally close and easy to enter
culturally distant and easy to enter
culturally close and difficult to enter
culturally distant and difficult to enter
culturally difficult and easy to enter
culturally close and easy to enter
culturally distant and easy to enter
culturally close and difficult to enter
culturally distant and difficult to enter
culturally difficult and easy to enter
The incidence and rate of retail innovation can be explained by all but one of the following
observations:
a.
b.
c.
d.
e.
innovation takes place only in the most highly developed systems
the ability of a system to successfully adapt innovations is directly related to
economic development
the process of adaptation may be either hindered or helped by local demographic
factors
the process of adaptation can be greatly accelerated by the actions of aggressive
individuals
the process of adaptation may be hindered or helped by geographic factors
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69.
Physical distribution and logistics are concerned with all but one the following:
a.
b.
c.
d.
e.
70.
Order processing, warehousing, and inventory management are all functions pertaining to:
a.
b.
c.
d.
e.
71.
a polycentric orientation
physical distribution and logistics
sales promotion
personal selling
chain acquisition
If a commodity raw material comes from Africa; gets refined in Asia; then shipped to
South America for finishing; and finally transported to Middle East and then sold around
the world – represents similar process used for products marketed by:
a.
b.
c.
d.
e.
72.
order processing
warehousing
inventory management
transportation
designing in-store displays
Exxon
McDonald's
Caterpillar
IKEA
Sears
"Containerization" refers to a company's:
a.
b.
c.
d.
e.
designing attractive product packaging that will help a product "sell itself"
the use of computer technology to keep a lid on ("contain") distribution costs
using refrigerated warehouses for perishable products
use of standard-sized shipping boxes that can be transported in various ways
a method of shipment by using oval size steel containers to fit different
commodities
224
73.
When a company uses intermodal or multimodal transportation it is:
a.
b.
c.
d.
e.
74.
A French winery packs its wine in a 40-foot container that is trucked to a port and then
loaded onto an ocean-going vessel. This is an example of:
a.
b.
c.
d.
e.
75.
intermodal transportation
inventory control
hypermarketing
"cherry picking" a product
containerization
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to
New York, where the containers are transferred to railroad cars and transported to the West
coast. At the port of San Francisco, the containers are loaded onto another freighter bound
for Japan. The term that best describes this situation is:
a.
b.
c.
d.
e.
76.
using multiple channels
using more than one mode of shipping goods
shipping via more than one railroad line
using the services of both UPS and FedEx
using different size containers for shipment
intermodal transportation
inventory management
greenfield investment
hypermarketing
containerization
Inventory management is:
a.
b.
c.
d.
e.
determining what type of warehouse to manage
establishing an inventory channel
managing physical distribution of products
purchasing inventory
controlling inventory levels
225
77.
Which of the following transportation modes ranks lowest in capability:
a.
b.
c.
d.
e.
78.
Which of the following transportation modes offers the most flexible routing and
scheduling:
a.
b.
c.
d.
e.
79.
railroad
truck
pipeline
air
water
which global retailer has reconfigured its supply chain and now permits a Taiwanese
supplier to ship clothing from the point of manufacture directly to retail stores:
a.
b.
c.
d.
e.
80.
truck
railroad
Internet
air
water
Marks & Spencer
Brooks Brothers
Laura Ashley
Calvin Klein
J.C. Penney
JCPenney’s North American stores carry virtually no extra inventory of house-brand shirts.
When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label
supplier TAL Apparel Ltd. In Hong Kong replenishes the stock based on usage, sometimes
shipping shirts by air. These logistics have all but one of the following advantages:
a.
b.
c.
d.
e.
JCPenny can reduce the inventory by almost 50%
JCPenny can lower the inventory costs
JCPenny can respond more quickly to changing consumer tastes
JCPenny can ship the shirts directly by air to consumers
JCPenny can reduce the quantity of goods that have to be marked down
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