Deck 13: Distribution Management

Question 1

The demographic and psychographic characteristics of targeted customers will form the basis for channel design decisions.

Answer 1

True

Question 2

Foreign legislation affecting distribution and agents is an essential part of the distribution culture of a market.

Answer 2

True

Question 3

Because most marketers have a vested interest in the distribution of their products, they control the distribution systems from manufacturer to customer.

Answer 3

False

Question 4

The term coverage is used to describe both the number of areas in which the marketer's products are represented and the quality of that representations.

Question 5

Intermediaries usually have no significant impact on the marketing of a firm's products.

Question 6

Privacy has not been a concern of international markets with regards to e-commerce in international markets because of the increase in government scrutiny of these transactions.

Question 7

There are four forms of "flow" in the channel, and they include physical, transactional, routine and information.

Question 8

The best kinds of distributions systems are those that are flexible and are able to adjust to marketing conditions.

Question 9

Because only a few products are sold directly to ultimate users, an international marketer has to decide on alternative ways to move products to chosen markets.

Question 10

Costs is the expenditure that is closely related to the capital dimension and is included at the beginning of establishing the channel.

Question 11

Gray markets refer to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted to the United States by bypassing designated channels.

Question 12

There are only three sectors that are forecasted to lead the way in business-to-business online transactions.

Question 13

Communication is an important consideration in channel design.

Question 14

A channel of distribution should be seen as more than a sequence of marketing institutions connecting manufacturers and producers.

Question 15

Channels in marketing are situations in which international marketers find they cannot sell products because of cultural barriers.

Question 16

The term capital is a term used to describe a situation that is important enough for top management to make a decision based on policy and politics.

Question 17

A firm's international market experience will cause variation in distribution patterns.

Question 18

The easiest source for the firm seeking to establish a relationship with an intermediary is to consult a trade directory.

Question 19

An intermediary is a person assigned in a company to track shipping of products.

Question 20

Distributors do not purchase the product so therefore they have less incentive to move the product through the channel.

Question 21

What does the term channel design mean?

A) The color of the product packaging.
B) The texture of the product packaging.
C) The length and width of the channel employed.
D) Polishing up the research and development to submit to stockholders.

Question 22

Which of the following is not an external determinant of channel structure relationships?

A) Customer characteristics
B) Culture
C) Competition
D) Capital

Question 23

Which channeling strategy features sharing of marketing functions, with the manufacturer handling promotions and customer generation, and the intermediaries, sales and distribution?

A) Freestanding
B) Place-generation
C) Realignment
D) Hybrid

Question 24

What direct threat does the Internet pose to intermediaries?

A) Canceling the trade deficit
B) Institutionalization of the duty paid on electronic transactions
C) The possibility of elimination of intermediaries
D) Probation

Question 25

Existing channel structures which must be considered when planning a distribution system are called:

A) channeling.
B) precursors.
C) distribution culture.
D) interagency agreements.

Question 26

Which of these is not a sector that is forecasted to lead the way in business-to-business online transactions?

A) Motor vehicles
B) Shipping
C) Manufacturing
D) Government

Question 27

Which of the following is not one of three flows of the marketing channel?

A) Psychological
B) Physical
C) Transactional
D) Informational

Question 28

Which of the following does an agency intermediary do?

A) Take title (temporary ownership) of the goods
B) Physically handle the goods
C) Purchase and receive the goods, warehouse and transport the goods
D) Act only to facilitate the information about the goods

Question 29

What is true about primary target market audiences when comparing them from one market to another?

A) They are usually different.
B) They are usually exactly the same, with no differences.
C) Only primary users can be primary targets.
D) Governments are not primary target market audiences.

Question 30

Which of the following is not a responsibility of an intermediary?

A) Promotional Activities
B) Financing
C) Logistics
D) Communication with retailers

Question 31

What is the main reason to use an intermediary when introducing an internationally marketed product into a new foreign market?

A) Space reduction.
B) Fighting of possible retailing expenditures.
C) To gain quick, easy and relatively low-cost entry.
D) Sensationalize the installment precedent.

Question 32

Which of the following is true about the majority of products sold to ultimate users in foreign international markets?

A) All products are shipped with Made In The U.S.A. labels attached.
B) Few of these products are shipped directly to the ultimate user.
C) Taxes are included in the industrial price of the good.
D) Only American companies can ship directly to the end user.

Question 33

What is the most likely scenario for an international product introduction?

A) To be English based and only deal with American intermediaries
B) Concentrate efforts on only the most attractive markets
C) Personalize the packaging for individuals
D) Preplan the marketing allocation to include customization

Question 34

Which of the following is not considered a channel?

A) Direct from producer to consumer
B) Multi-level channel
C) Intermediaries participating in the channel from business-to-business
D) R&D and manufacturing a product

Question 35

Which of the following is not a distribution system indicated in the text?

A) The firm sells directly to customers.
B) The firm sells to foreign governments who in turn broker the merchandise to dealers.
C) The company operates through competitors' intermediaries.
D) The business depends on an outside distribution system with regional or global coverage.

Question 36

Which consumer characteristics of targeted customers will form the basis for the channel design decisions?

A) Station approach and income level
B) Transactional analysis and future categories of contingency
C) Hierarchical dissemination
D) Demographics and psychographics

Question 37

Foreign legislation affecting distributors and agents

A) is not binding.
B) in not binding on American companies.
C) has serious flaws and enforcement issues.
D) is an essential part of the distribution culture of a market.

Question 38

Which of the following is not on the eleven C's checklist?

A) Country
B) Company objectives
C) Character
D) Capital

Question 39

Generally, the more specialized, expensive, bulky, or perishable the product and the more after-sale service it may require

A) the longer the channel.
B) the more intermediaries would be involved.
C) the shorter the channel.
D) no intermediaries are involved.

Question 40

When would multiple channels of distribution be best implemented?

A) When selling direct to the consumer.
B) When selling direct to the manufacturer
C) When selling direct to the producer.
D) When increasing the sales volume.

Question 41

This group is traditionally organized along product lines and provides the international marketer with complete marketing services and will purchase the product and exercise more independence.

A) Distributor
B) Enhancer
C) Channel lieutenant
D) Trans-importer

Question 42

The number of areas in which the marketer's products are represented and the quality of that representation is known as:

A) placement.
B) bartering.
C) sectoring.
D) coverage.

Question 43

Parallel importation refers to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted to the United States by bypassing designated channels. What type of market is this?

A) Subversive
B) Sub-governmental
C) Gray
D) Placid

Question 44

Which of the following was not cited in the text as a reason for termination of the channel relationship?

A) Authoritarian decision by the consumer advocacy group
B) Marketers distribution approach
C) Intermediary's lack of performance
D) One of the parties not honoring agreements

Question 45

In managing channel relationships, which of the following is not indicated as a complicating factor that may separate the two parties?

A) Ownership
B) Subletting
C) Geographic Distance
D) Different rules of law

Question 46

What are the three different approaches for coverage that are available to the international marketer?

Question 47

What are the five types of distance that are said to exist between a buyer and an international seller?

A) Frequency, spontaneity, clarity, simplistic and focal point distances.
B) Rigid, flexible, moderate, pliable, and textured distances.
C) Micro, macro, short, long and moderate distances.
D) Social, cultural, technological, time and geographical distances.

Question 48

Why is the Internet a potential threat to the music industry?

A) Timing
B) Unrestricted encryption products
C) Spatial flocking
D) Artists can deliver their works directly to customers

Question 49

Which department from the U.S. government provides services that can assist firms in identifying suitable representatives for commerce abroad?

A) Defense
B) Homeland Security
C) Education
D) Commerce

Question 50

Financial requirements in setting up a channel system are called:

A) capital.
B) starting money.
C) cost.
D) presentation cash.

Question 51

There are three different approaches to coverage. Identify one of the following that is not a type of coverage:

A) presented.
B) intensive.
C) selective.
D) exclusive.

Question 52

How should a marketing channel be designed?

Question 53

Which of the following is considered the most long-term of the marketing mix decisions?

A) Pricing
B) Promotion
C) Channel Design
D) Fluctuation

Question 54

The looser the relationship is between the marketer and intermediaries, the less control the marketer can exert. Therefore, the longer the channel:

A) the quicker products are taken to market.
B) the more chance of the relationship becoming tighter.
C) the more difficult for the marketer to have a final say in pricing and promotions.
D) the essentials of staffing pre-screening are required.

Question 55

Which of the following is not another name for an e-commerce hub site?

A) Virtual mall
B) E-marketplace
C) Web-spoke
D) Digital intermediary

Question 56

Why is privacy such an issue in e-business?

Question 57

This category of export marketing strategy requires the marketer to make an investment into the foreign market for the purpose of selling its products in that market or more broadly.

A) Indirect Exporter
B) Direct Exporter
C) Integrated Distribution
D) Agents

Question 58

The expenditure incurred in maintaining a channel once it is established is referred to as:

A) price streaming.
B) cost.
C) hand tooling.
D) capital.