Chap12 GM6e TIF

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    Global Marketing, 6e(Keegan/Green)

    Chapter 12 Global Marketing Channels and Physical Distribution

    1) Supermarkets and convenience stores comprise just two of the many elements that make updistribution channels around the globe.

    Answer: T!"#iff: 1 $age ef: %&'

    () The first channel alternative for manufacturers is to market directly to buyers via the nternet.Answer: T!"#iff: ( $age ef: %&&AA*S+: Analytic Skills

    %) ",bay pioneered a form of online commerce known as p,to,p or peer,to,peer marketingwhereby individual consumers market products to another individual.Answer: T!"

    #iff: ( $age ef: %&&AA*S+: eflective Thinking

    -) ",bay assists large companies such as #isney and + in setting up online /storefronts/ tosell items for fi0ed prices in addition to conducing b,to,c auctions.Answer: T!"#iff: ( $age ef: %&AA*S+: eflective Thinking

    ') 2estl3 is using an innovative approach to distribution in +ra4il with a program of door,to,doorselling in high,income neighborhoods.

    Answer: 5A6S"#iff: ( $age ef: %&AA*S+: eflective Thinking

    &) n 7apan8 the biggest barrier facing !.S. auto manufacturers is that half the cars that are soldeach year are sold door,to,door.Answer: T!"#iff: ( $age ef: %&AA*S+: eflective Thinking

    ) #istribution channels for automobiles in 7apan and the !nited States are similar in that mostcar buyers in both countries visit dealerships before making a purchase.Answer: 5A6S"#iff: ( $age ef: %&AA*S+: eflective Thinking

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    ;) The close long,term relationships between auto salespersons and the 7apanese people can beconsidered as a consumer version of the keiretsusystem.Answer: T!"#iff: ( $age ef: %&;AA*S+: eflective Thinking

    amble operates stores serving single,use ?uantities at a relativelyhigh per,use cost8 which are known as /high,fre?uency/ stores.Answer: T!"#iff: ( $age ef: %&ap are e0amples of global retailoperators that can be classified asspecialty retailerssince they offer less variety than departmentstores.Answer: T!"#iff: ( $age ef: %'

    AA*S+: eflective Thinking

    (') ypermarkets are a hybrid retailing format combining the discounter8 supermarket8 andwarehouse club approaches under a single roof.Answer: T!"#iff: ( $age ef: %AA*S+: Analytic Skills

    (&) Toys // !s8 ome #epot8 and B"A are referred to as /category killers/ in the retailingindustry.Answer: T!"#iff: ( $age ef: %AA*S+: eflective Thinking

    () +ritish retailer arks = Spencer is a good e0ample of a category killer.Answer: 5A6S"#iff: ( $age ef: %AA*S+: eflective Thinking

    (;) Three of the worldDs five largest malls are in Asia.Answer: T!"#iff: ( $age ef: %,%;AA*S+: eflective Thinking

    (

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    %() f a global retailer seeks to e0pand in a country that is both culturally close to the homecountry and easy to enter8 the retailer is well advised to use a joint venture strategy.Answer: 5A6S"#iff: ( $age ef: %;%AA*S+: eflective Thinking

    %%) A global retailer seeks to e0pand in a country that8 in the opinion of management8 is bothculturally distant and difficult to enter. The retailer would be well advised to use a joint venturestrategy.Answer: T!"#iff: 1 $age ef: %;%AA*S+: eflective Thinking

    %-) @hen *arrefour entered the 7apanese market8 it did so independently Gi.e.8 without seeking a7apanese joint,venture partner). This represents an appropriate market,entry approach for aglobal retailer.Answer: 5A6S"#iff: ( $age ef: %;%AA*S+: eflective Thinking

    %') @hen +ritish entrepreneur ichard +ranson opened the first Eirgin egastore in 7apan8 hedid so by establishing a joint venture with the arui retailing chain. This represents anappropriate market,entry approach for a global retailer.Answer: T!"#iff: % $age ef: %;%AA*S+: eflective Thinking

    %&) The distributionPof the marketing mi0 plays a central role in a given firmDs value chain asseen by *oca,*ola8 B"A8 2okia and Toyota creating value by making sure their products areavailable where and when customers want to buy them.Answer: T!"#iff: ( $age ef: %;-AA*S+: eflective Thinking

    %) +y definition8 a retailer that caters to the general public would be /downstream/ in anindustryDs supply chain.Answer: 5A6S"#iff: ( $age ef: %;-AA*S+: eflective Thinking

    %;) A new tool for inventory management is 5# which utili4es small tags that are attached topallets8 containers8 or individual inventory items.Answer: T!"#iff: ( $age ef: %;',%;&AA*S+: !se of T

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    --) $eer,to,peer Gp,to,p) marketing uses distribution channels through:A) business,to,consumers.+) electronic commerce.*) business,to,business.#) door,to,door.

    ") manufacturer,to,wholesalers.Answer: +#iff: ( $age ef: %&&,%&AA*S+: !se of T

    -') e+ay was a pioneer in a form of online marketing known as:A) b,to,c.+) b,to,b.*) p,to,p.#) d,to,d.") c,to,b.

    Answer: *#iff: ( $age ef: %&&,%&AA*S+: !se of T

    -&) @hich country has proven to be the most successful market in AvonDs history among thefollowingHA) omania+) !kraine*) *hina#) ussia") ndiaAnswer: ##iff: ( $age ef: %&;AA*S+: eflective Thinking

    -) @hat solution did Andersen *onsulting provide to the oscow +read *ompany to solve theproblem of stale breadHA) #eliver the bread fro4en.+) $ackage the bread in plastic bags.*) +* should convert a paperless office to cut red tape.#) #eliver the bread sliced rather than in whole loaf form.") !se paper packaging for bread.Answer: +

    #iff: ( $age ef: %&ive local distributors control over marketing strategy.#) Treat local distributors as long,term partners.") All of the above are appropriate guidelines.

    Answer: *#iff: ( $age ef: %(,%%AA*S+: eflective Thinking

    apHA) few product categories8 own,label focus+) few product categories8 manufacturer brand focus*) many product categories8 own,label focus#) many product categories8 manufacturer brand focus") none of the aboveAnswer: A#iff: ( $age ef: %;(,%;%AA*S+: eflective Thinking

    &) @hen @al,art Stores first e0panded into e0ico8 management established a joint venturewith the countryDs largest retailer. 7udging by the approach @al,art used8 management musthave viewed e0ico as:

    A) 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.Answer: ##iff: 1 $age ef: %;(,%;%AA*S+: eflective Thinking

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    &;) @hen single brand,retailers such as +enetton8 2ike8 $i44a ut8 eebok8 and Subway firstentered ndian retail market they were re?uired to use:A) mom,and,pop type stores.+) cramped stores.*) local vendor operated stores.

    #) franchised stores.") departmental stores.Answer: ##iff: % $age ef: %lobal retailers who would like to go to ndia will face a variety of challenges. Theterm organi4ed retailing is used to describe the activity by large multi,store chains such as@oolworths8 Tesco8 and @al,art. Such stores account for only about % percent of ndiaDs C(,(' billion annual retail sales. The vast majority of ndian retail activity is confined to stallswhich have very limited space. There have been several calls for regulatory reform8 and someobservers believe organi4ed retailing will grow at the rate of % to %' percent per year. anypoliticians are concerned about the impact of organi4ed retailing on the millions of small,scalestores. oderni4ation of the sector is inevitable8 although it may be slow in coming. >lobalretailers are barred from participating directly in the ndian market. 5or this reason manybusinesses are not planning to go to ndia. $i44a ut8 Subway8 and +enetton are present8 withstores run by franchisees. @al,art stores will also be run by franchisees. Anticipating thearrival of the global retailers8 local operators in ndia are investing for the future. 6arge businessgroups such as eliance ndustries and +irla >roup are also planning to enter the retail sector.Also8 industan 6ever8 the ndian unit of packaged goods giant !nilever8 has launched aconsultancy service to help the /mom and pop/ operators become more competitive.#iff: ( $age ef: %