Question 1

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

Accepted Answer

Treating a local independent distributor as a long-term partner rather than a temporary solution can lead to stronger relationships, better market understanding, and more sustainable success in the new market.

Question 2

After successfully penetrating China's first-tier cities, Mary Kay expanded into second- and third-tier locations.

Accepted Answer

The sentence explicitly states that Mary Kay expanded into second- and third-tier locations, after entering China's first-tier cities.

Question 3

Tesco made vigorous effort to penetrate the U.S. market.

Accepted Answer

The answer of Tesco made vigorous effort to penetrate the...

Question 4

The first step in the guidelines to help newcomers in choosing a channel intermediary is to let the distributors select the business.

Accepted Answer

The first step in the guidelines to help newcomers in choosing a channel intermediary is for the newcomers to identify potential intermediaries based on their needs and preferences, not for the intermediaries to select the newcomers' business.

Question 5

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.

Accepted Answer

The answer of In Japan, the biggest barrier facing U.S....

Question 6

It is advisable to treat local distributors as temporary market-entry vehicles.

Accepted Answer

Treating local distributors as temporary market-entry vehicles can undermine long-term relationships and market presence, as successful market entry often relies on building strong, enduring partnerships with local distributors.

Question 7

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by customizing computers. Discuss the importance of channel innovation, giving examples of piggyback marketing in emerging markets.

Accepted Answer

The answer of Dell's rise to a leading position in...

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.

Accepted Answer

"Cherry picking" refers to the practice of selecting only the best or most profitable items from what is available, which might not be beneficial for a new exporter looking to establish a broad presence in a new market. A middleman with such a reputation might ignore less immediately profitable products, limiting the exporter's market exposure.

Question 9

Nestlé in Brazil is using door-to-door selling to reach low-income neighborhoods; Dell computers provides home delivery for its products; Avon is using sales representatives and other companies are using other methods to reach consumers. Describe different channels that can be used for reaching the customers.

Accepted Answer

The answer of Nestlé in Brazil is using door-to-door selling...

Question 10

Apple, Levi Strauss, Nike, Sony, well-known fashion design houses, and other companies with strong brands sometimes establish flagship retail stores as a means of obtaining marketing intelligence.

Accepted Answer

Flagship retail stores can provide companies with valuable data on consumer behavior, preferences, and trends. By observing and interacting with customers in these stores, companies can gain insights that can inform product development, marketing strategies, and other business decisions.

Question 11

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.

Accepted Answer

The answer of Distribution channels for automobiles in Japan and...

Question 12

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.

Accepted Answer

All of the guidelines provided are appropriate and important to consider when selecting independent distributors in international markets. It is important for companies to actively choose their distributors based on their ability to develop markets, view them as long-term partners, and maintain control over marketing strategy.

Question 13

A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one. Which of the guidelines for companies selecting independent distributors is this statement referring to?
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)From the start maintain control.

Accepted Answer

This statement refers to the importance of choosing distributors who are not just focused on immediate sales but are also capable of developing and expanding the market for the company's products in the long term.

Question 14

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by building computers to customers' specifications.

Accepted Answer

This statement is true. Michael Dell's strategy of selling directly to customers and building customized computers was a key factor in Dell's rise to dominance in the PC industry.

Question 15

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

Accepted Answer

The keiretsu system is a business network model in Japan in which companies maintain strong and loyal relationships with each other, often through cross-shareholdings and commercial partnerships. The close relationships between auto salespersons and the Japanese people can be considered as a similar type of network, as salespersons often work with customers for many years and build up a rapport and sense of trust. Therefore, option A is true.

Question 16

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

Accepted Answer

Kodak initially entered the Japanese market through a joint venture with a local company, rather than relying solely on independent agents, distributors, and retailers.

Question 17

When companies adopt an indirect involvement channel they have all of the following activities except:
A)utilize independent agents.
B)use distributors.
C)utilize retailers.
D)establish their own sales force.
E)utilize those who have network of stores.

Accepted Answer

When companies adopt an indirect involvement channel, they do not typically establish their own sales force, as this would be an example of direct involvement. Instead, they rely on intermediaries such as independent agents, distributors, and retailers, as well as those who have a network of stores, to sell their products or services.

Question 18

The cherry picker is most interested in developing a market for a new product, which helps an expanding international company.

Accepted Answer

A cherry picker typically refers to a type of aerial work platform used for accessing high areas, not someone focused on market development for new products.

Question 19

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.

Accepted Answer

Giving local distributors complete control over marketing strategy can be risky, as their strategies may not align with the company's overall goals and objectives. It is important to have clear communication and guidelines in place when working with independent distributors to ensure that both parties are working towards the same goals. Therefore, option C is not an appropriate guideline for selecting independent distributors.

Question 20

A distributor with good contacts is the best one to select in terms of generating quick sales and revenues.

Accepted Answer

The answer of A distributor with good contacts is the...

Quiz 12: Global Marketing Channels and Physical Distribution