Deck 12: Global Marketing Channels and Physical Distribution

Question 1

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.

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

Apple operates more than 300 retail stores in the United States, Canada, Japan, and the United Kingdom.Many stores feature a signature glass staircase that Apple cofounder and former CEO Steve Jobs helped design.

Answer 3

True

Question 4

When Carrefour, Tesco, or Wal-Mart set up shop in developing countries, they provide customers with access to more products and lower prices than were available previously.This is an example of global retailing.

Question 5

Based on 2010 sales figures, Carrefour is the largest hypermarket in France.

Question 6

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.

Question 7

Despite the fact that Tesco is the largest supermarket chain in the United Kingdom, it lags behind retailing giants Wal-Mart and Carrefour in terms of global presence.

Question 8

An exporter that is new to a particular market would do well to choose a middleman with a reputation for "cherry picking" products.

Question 9

In Asia, Western luxury goods marketers have long relied on independent distributors such as Hong Kong-based Fairton, whose local market knowledge and networks of stores are keys to success.

Question 10

Nestlé is using an innovative approach to distribution in Brazil with a program of door-to-door selling in high-income neighborhoods.

Question 11

The close long-term relationships between auto salespersons and the Japanese people can be considered as a consumer version of the keiretsu system.

Question 12

When utilizing the services of a local independent distributor, management is well advised to yield control of marketing strategy to the distributor.

Question 13

Distribution channels are systems that link manufacturers to customers.

Question 14

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.

Question 15

Channel strategy in a global marketing program must fit the company's competitive position and overall marketing objectives in each national market.

Question 16

In Mexico, Proctor & Gamble operates stores serving single-use quantities at a relatively high per-use cost, which are known as "high-frequency" stores.

Question 17

According to Harvard professor David Arnold, one of the guidelines for choosing a channel intermediary by a company is to select distributors rather than them selecting the company.

Question 18

Nokia and Motorola are among the cell phone marketers that have opened branded stores in London and Moscow.

Question 19

When utilizing the services of a local independent distributor, management is well advised to treat the distributor as a temporary market-entry vehicle.

Question 20

Kodak adopted a direct involvement approach in Japan by utilizing independent agents, distributors and retailers.

Question 21

Retailers that sell a tightly focused selection of goods at rock-bottom prices are known as hard discounters.

Question 22

Water transportation is rated "low" in reliability since approximately 200 freighters sink due to bad weather or other factors.

Question 23

By definition, a retailer that caters to the general public would be "downstream" in an industry's supply chain.

Question 24

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.

Question 25

Nakumatt is a local supermarket chain in Kenya which provides an aspirational space that appeals to everyone.

Question 26

Organic growth occurs when a company uses its own resources to open a store on a greenfield site.

Question 27

Hypermarkets are a hybrid retailing format combining the discounter, supermarket, and warehouse club approaches under a single roof.

Question 28

Organized retail is a term that is used to describe the modern, branded chain stores.

Question 29

Due to political upheaval in the Middle East, in spring 2011, Procter & Gamble was forced to briefly close plants in Egypt that supply products for South Africa.

Question 30

That Wal-Mart pulled out of Germany and South Korea is an example of unsuccessful cross-border retailing initiatives.

Question 31

The term "logistics" management describes the integration of activities necessary to ensure the efficient flow of raw materials, in-process inventory, and finished goods from producers to customers.

Question 32

Laura Ashley, The Body Shop, Victoria's Secret, Starbucks, the Disney Store and Gap are examples of global retail operators that can be classified as specialty retailers since they offer less variety than department stores.

Question 33

When Carrefour, Tesco, and Wal-Mart set up shop in developing countries, they provide customers with access to more products but higher prices than were available previously.

Question 34

Three of the world's five largest malls are in Asia.

Question 35

The key to a successful franchise operation is the ability to transfer company know-how to new markets.

Question 36

British retailer Marks & Spencer is a good example of a category killer.

Question 37

Toys "R" Us, Home Depot, and IKEA are referred to as "category killers" in the retailing industry.

Question 38

Outlet stores are retail operations that allow companies with well-known consumer brands to dispose of excess inventory, out-of-date merchandise, or factory seconds.

Question 39

A company or activity that is somewhat removed from the final customer is said to be upstream in the value chain.

Question 40

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.

Question 41

What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread?

A)Deliver the bread frozen.
B)Package the bread in plastic bags.
C)MBC should convert a paperless office to cut red tape.
D)Deliver the bread sliced rather than in whole loaf form.
E)Use paper packaging for bread.

Question 42

In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P & G representatives who tidy and arrange display areas.This motivational program is referred to as:

A)"buy-in-bulk store" program.
B)"high-frequency"store program.
C)"mom-and-pop" store program.
D)"shop operators" program.
E)"golden store" program.

Question 43

Peer-to-peer (p-to-p)marketing uses distribution channels through:

A)business-to-consumers.
B)electronic commerce.
C)business-to-business.
D)door-to-door.
E)manufacturer-to-wholesalers.

Question 44

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

A)Consumer channels tend to be longer (consist of more intermediaries)than industrial channels.
B)Industrial channels tend to be longer (consist of more intermediaries)than consumer channels.
C)Both consumer and industrial channels tend to be long (consist of several intermediaries).
D)Both consumer and industrial channels tend to be short (consist of few intermediaries).
E)Consumer channels tend to be shorter (consist of few intermediaries)than the industrial channels.

Question 45

Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create:

A)place utility.
B)time utility.
C)form utility.
D)information utility.
E)all of the above

Question 46

Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door?

A)consumer electronics
B)pharmaceuticals
C)automobiles
D)soft drinks
E)groceries

Question 47

Marketing channels exist to create utility for customers.The major categories of channel utility include all of the following except:

A)place utility.
B)price utility.
C)information utility.
D)form utility.
E)time utility.

Question 48

Which of the following does not qualify as a "category killer?"

A)Victoria's Secret
B)IKEA
C)Home Depot
D)Circuit City
E)Toys "R" Us

Question 49

eBay was a pioneer in a form of online marketing known as:

A)b-to-c.
B)b-to-b.
C)p-to-p.
D)d-to-d.
E)c-to-b.

Question 50

Which European retailer proved unsuccessful in its cross-border initiatives on New York's fashionable Fifth Avenue?

A)Virgin Group
B)Marks & Spencer
C)Carrefour
D)Galeries Lafayette
E)Louis Vuitton

Question 51

By definition, ________ feature a narrow but deep merchandise mix and high levels of service.

A)department stores
B)specialty retailers
C)supermarkets
D)convenience stores
E)discount stores

Question 52

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors don't let them select you.
B)Look for distributors capable of developing markets.
C)Treat local distributors as long-term partners.
D)Maintain control over marketing strategy from day one.
E)All of the above are appropriate guidelines.

Question 53

Wal-Mart's international division currently generates only 25% of company sales, but the world's biggest retailer is staking its claim in:

A)Mexico.
B)Germany.
C)China.
D)Malaysia.
E)Turkey.

Question 54

Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures.Such importers are creating which kind of utility?

A)place utility
B)time utility
C)form utility
D)information utility
E)worker utility

Question 55

Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors don't let them select you.
B)Look for distributors capable of developing markets.
C)Give local distributors control over marketing strategy.
D)Treat local distributors as long-term partners.
E)All of the above are appropriate guidelines.

Question 56

Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 57

Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?

A)Hewlett-Packard
B)Compaq
C)Dell
D)Acer
E)Sony

Question 58

Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers, 2010?

A)Sears
B)Metro
C)Kmart
D)Carrefour
E)Wal-Mart

Question 59

The retail environment in developing countries presents challenges for marketing nonperishable items.In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products:

A)door-to-door selling
B)buy-in-bulk selling
C)mom-and-pop stores
D)franchised stores
E)manufacturer-owned stores

Question 60

Which country has the biggest market for Amway?

A)Romania
B)Ukraine
C)China
D)Russia
E)India

Question 61

When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and Subway first entered the Indian retail market, they were required to use:

A)mom-and-pop type stores.
B)cramped stores.
C)local vendor operated stores.
D)franchised stores.
E)departmental stores.

Question 62

Physical distribution and logistics are concerned with all but one the following.

A)order processing
B)warehousing
C)inventory management
D)transportation
E)designing in-store displays

Question 63

When a company uses intermodal or multimodal transportation, it is:

A)using multiple channels.
B)using land and water shipping.
C)shipping via more than one railroad line.
D)using the services of both UPS and FedEx.
E)using different size containers for shipment.

Question 64

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 65

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)intermodal transportation.
B)inventory management.
C)greenfield investment.
D)hypermarketing.
E)containerization.

Question 66

Order processing, warehousing, and inventory management are all functions pertaining to:

A)a polycentric orientation.
B)physical distribution and logistics.
C)sales promotion.
D)personal selling.
E)chain acquisition.

Question 67

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

A)few product categories, own-label focus
B)few product categories, manufacturer brand focus
C)many product categories, own-label focus
D)many product categories, manufacturer brand focus
E)none of the above

Question 68

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)intermodal transportation.
B)inventory control.
C)hypermarketing.
D)"cherry picking" a product.
E)containerization.

Question 69

Inventory management is:

A)determining what type of warehouse to manage.
B)establishing an inventory channel.
C)managing physical distribution of products.
D)purchasing products.
E)ensuring cost control.

Question 70

An important new tool for inventory management is:

A)ODW.
B)RFID.
C)LEGO.
D)VUCA.
E)EPOS.

Question 71

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)chain acquisition
B)organic growth
C)franchise
D)joint venture
E)own-label focus

Question 72

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)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 73

"Containerization" refers to a company's:

A)designing attractive product packaging that will help a product "sell itself."
B)use of computer technology to keep a lid on ("contain")distribution costs.
C)use of refrigerated warehouses for perishable products.
D)use of standard-sized shipping boxes that can be transported in various ways.
E)method of shipment by using oval size steel containers to fit different commodities.

Question 74

If a commodity raw material comes from Africa, gets refined in Asia, then shipped to South America for finishing, and finally transported to the Middle East and then sold around the world this represents a similar process used for products marketed by:

A)Exxon.
B)McDonald's.
C)Caterpillar.
D)IKEA.
E)Sears.

Question 75

At the end of 2011, a shake-up was announced in the Fresh & Easy management ranks with the intent of reorganizing the commercial and marketing units into a single team.This announcement was made by:

A)Marks & Spencer.
B)Tesco.
C)Laura Ashley.
D)Calvin Klein.
E)J.C.Penney.

Question 76

Which of the following transportation modes ranks lowest in capability?

A)truck
B)railroad
C)Internet
D)air
E)water

Question 77

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)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 78

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 Champs-Elysées.Judging by the approach Branson used, he and his management team must have viewed France as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 79

The world's most global retailer today in the hypermarket segment is:

A)J.C.Penney.
B)Tesco.
C)Wal-Mart.
D)Carrefour.
E)K-Mart.

Question 80

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

A)organic growth
B)chain acquisition
C)franchise
D)joint venture
E)own-label focus