MKTG 4280 Ch. 15 McGraw-Hill Connect

Parent companies exert control over middlemen by monitoring

- sales volume. - prices and payment of bills. - coverage of market. - advertising and profit. - services offered.

To improve the efficiency of their distribution systems, marketers around the world are experimenting with

- selling via hypermarkets, shopping malls, and discount houses. - selling via the Internet. - door-to-door selling. - direct marketing.

Export management companies handle

- studying the market. - shipping of products to customers. - advertising and exhibiting the products.

When selecting a distribution channel, a company should consider

- whether the product is apt to spoil easily. - how much money the product is worth. - whether the sale of the product will involve a complex procedure. - whether the product will require any sales service. - the product's size.

When selecting a product for piggyback distribution, a company must consider whether the item

- will find market acceptance. - is likely to make a large enough profit. - easily fits into the firm's existing distribution system. - enhances the existing product line.

What are the advantages of using middlemen in foreign lands? (Check all that apply.)

-They are better able to deal with difficulties arising from the distribution of products, funding, and foreign languages. - They help connect companies that make goods with the people who will buy them.

Middlemen spend money (and therefore ultimately drive up the price of the merchandise) when

-they advertise products locally. - they move and store merchandise. - they sell products as the representatives of the manufacturer.

Goods are sold and physically moved in

a distribution process.

Export management companies operate under the authority of the manufacturers as

affordable autonomous marketing organizations.

In a traditional distribution structure, a limited amount of merchandise is controlled by

an importer.

Although Webb-Pomerene export associations are allowed to form business groups that export products, they are forbidden from

belonging to cartels.

Trading companies in developed countries

buy raw materials from developing countries.

In foreign countries, adequate market coverage may require

changing the way products are distributed.

When companies use foreign-country middlemen,

international marketers achieve more control over their distribution systems.

The total distribution process of an international trade channel is handled through

logistics management.

People or firms that provide international selling services for manufacturers are known as

manufacturer's export agents.

A foreign sales corporation can be formed by

manufacturers and groups of businesses that export merchandise.

Envy Corp., a textile company, launches a line of women's wear that is sold in stores owned by the company. These stores are examples of

manufacturers' retail stores.

When stores are owned by manufacturers and used as channels of distribution, those stores are known as

manufacturers' retail stores.

The first people involved in the distribution channel process are the

manufacturers.

Identify a factor that improves supply-chain management.

online B2B marketing

Firms must establish _____ before choosing channel middlemen.

operational policies

What did the Export Trading Company Act accomplish?

- Certain antitrust laws have been scaled back, allowing companies to form large, powerful joint ventures. - Companies have greater access to funding for international trade enterprises. - Producers and suppliers are able to export their products more effectively.

Identify the accurate statements about a distribution process. (Check all that apply.)

- Commercial negotiations occur among producers, middlemen, and buyers. - Ownership or title is passed.

What are the benefits of obtaining full-market coverage? (Check all that apply.)

- The product can become so well known that most people in the market will recognize it. - The company can claim a substantial share of the market.

What are the advantages of working with export management companies? (Check all that apply.)

- They are paid on commission. - They help companies penetrate foreign markets at a relatively small cost. - They help companies avoid assigning their own employees and managers to foreign marketing efforts.

Identify the features of export management companies. (Check all that apply.)

- They handle international marketing for manufacturers that do not have large global sales revenues. - They are independent companies but answer directly to the manufacturers.

Identify the disadvantages of working with export management companies. (Check all that apply.)

- They usually cannot afford to invest enough money to achieve deep distribution of the product. - If the product is not making much money, the company sometimes fails to promote it aggressively.

Throughout the world, traditional distribution channels are becoming more efficient, which has led to

- a preference for self-service. - the introduction of direct marketing and discounting. - the emergence of e-commerce and supermarkets. - the rise of mass merchandising.

Select the roles that can be played by a foreign sales corporation. (Check all that apply.)

- an agent working on commission - a principal

When distribution channels are lengthened,

- control over promotion decreases. - control over price decreases. - control over outlet variety decreases. - control over volume decreases.

Which of the following middlemen are likely to be loyal to their vendors? (Check all that apply.)

- dealers - distributors

Select the benefits offered by Webb-Pomerene export associations. (Check all that apply.)

- form a group of businesses that can export merchandise at a lower cost - strike bargains to achieve better trading relationships - establish prices and product standards - advertise to build interest in products

Before choosing middlemen, a company should consider

- how many people and how much money will be devoted to global marketing. - markets that will be targeted, in specific countries and across broad regions. - goals such as how much sales volume the venture needs to generate.

Logistics management involves the physical transportation of

- merchandise that is being processed. - raw materials. - inventory that is ready to ship to customers.

To ensure that middlemen will continue to be enthusiastic about selling its products, a company should

- offer sufficient financial compensation. - handle disputes with tact. - stay in touch via newsletters, for example.

When a company wants to offer a wider selection of merchandise for its international marketing efforts, it sometimes adds products that work well with its original products. In these cases, the company is engaged in

- piggybacking. - complementary marketing.

Identify the measures to manage middlemen's activities. (Check all that apply.)

- reports - quotas - sending personnel from the company to visit the middlemen

What legislation permitted the formation of export trading companies by producers of similar products?

Export Trading Company Act

Match the types of channel costs in the left column to the correct description in the right column.

Investment costs = Money spent to set up a distribution channel Costs of maintaining channels = Money paid to the company's sales crew or to middlemen as they market the company's products

Identify an accurate statement about the Japanese distribution system.

It depends on an unusually large number of middlemen.

Identify an accurate statement about online B2B marketing.

It is a cheaper way to process transactions.

How are small stores in Japan different from their counterparts in the United States?

They account for a larger percentage of total retail sales.

The last people involved in the distribution channel process are the

consumers.

Drew's Corp., a baby-product manufacturing company, eliminated middlemen in its product distribution process. Instead, it entrusted the task to one of its managers. In this scenario, the company increased its

control over channels.

Home-country middlemen are also known as

domestic middlemen.

The World Wide Web is used to sell industrial goods, in addition to consumer services and merchandise, via

e-commerce.

The recent rapid change in retail markets around the world is apparently a result of

economic development.

True or false: Channel patterns are constant and seldom undergo changes.

false. Channel patterns change with time, and distribution systems must change accordingly.

True or false: Distributing goods via the Internet is a form of indirect selling.

false. E-commerce is a form of direct selling.

True or false: Exporters cannot dismiss distributors who fall short of sales minimums.

false. Falling short of minimums may be grounds for dismissal.

True or false: Piggybacking is not an effective way of increasing volume and profit for a carrier.

false. Piggybacking is a useful, logical way of increasing sales (and therefore revenue) for both the piggybacker and the carrier.

True or false: Worldwide, retailing has been generally stagnant for the past couple of decades.

false. Retailing around the world has been in a state of active ferment for several years, even in the least developed countries.

What do export management companies need to survive?

immediate sales to earn them a commission

Complementary marketing is also known as

piggybacking.

It is particularly important for firms to maintain good rapport with their middlemen in countries where the most important cultural factor is _____.

relationships

The largest investment of funds is required when a firm

relies on its own sales force.

What do manufacturers receive from manufacturer's export agents?

selling services

When consumers stop buying a brand for a particular period of time, middlemen tend to

soon stop selling those products.

When distribution agreements are made with middlemen, firms must

specify what will be expected of the company and the middleman.

Marketing services are sometimes provided by individuals located in a producing firm's home country. This arrangement is useful when

the seller does not want to invest the time and money required to develop a global marketing system.

When a market has a traditional distribution structure, mass distribution and market penetration are not necessary, because

there is not enough product to meet customer demand.

Goods are collected, shipped, and sold from many countries by

trading companies.

Identify a factor that reduces the amount of money a firm must invest in channel management.

use of distributors