Global Marketing

1. Which of these is not an external determinant of channel decisions?

• Customer characteristics

• Nature of demand/location

• The seller's preferences

• Legal regulations

True or False: Consumer products channels tend to be longer than industrial products channels.

• True

• False

Answer explanation

Because the number of customers is greater, the customers are more geographically dispersed and buy in smaller quantities.

What type of market coverage involves choosing only one intermediary in a market?

1. Intensive distribution channels are often suitable for distributing what types of products?

• Convenience products, mature products, low-price products

• 1. Low-price products, brand-preferred products, speciality products

• 1. Convenience products, mature products, high-price products

• 1. Low-price products, convenience products, technical products

Answer explanation

B. speciality products, C. high-price products, D. technical products are suitable for exclusive distribution (Figure 16.4 Factors influencing channel width page 602)

Which of the following is an example of a company using vertical integration in its distribution strategy?

• An e-commerce retailer partnering with multiple third-party delivery services

• A manufacturer opening its retail stores to sell its products directly to consumers

• A company outsourcing all logistics functions to specialized firms

• A retailer exclusively using a dropshipping model

Answer explanation

Forward vertical integration involves a company moving "forward" in the supply chain by taking over distribution and retailing functions that were previously handled by other entities. In this case, a manufacturer, which is typically involved in the production of goods, expands its operations to include retailing its products directly to consumers.

1. A bundling strategy can be quite powerful in generating additional sales and profits if it is created by using … and finding the meaningful relationships between … from past …

• Historical data - customers - transactions

• 1. Historical data - products - purchases

• 1. Historical purchase data - products - transactions

• 1. Historical purchase data - customers - purchases

True or False: If a supplier sells through online channel they will have advantages over the physical distribution channel in that they can focus on “long tail” products that are economical for physical stores to carry.

• True

• False

Answer explanation

Read page 606

1. The distributors and retailers will be looking for customized and exclusive merchandise, which will add … for manufacturers.

Which statement is true?

• 1. Intermediation occurs when a firm begins as a middleman between two industry players.

• 1. Reintermediation occurs when an established middleman is pushed out of the value chain.

• 1. Disintermediation occurs when a once disintermediated player is able to begin again itself as an intermediary.

Answer explanation

• Intermediation occurs when a firm begins as a middleman between two industry players.

• Disintermediation occurs when an established middleman is pushed out of the value chain.

• Disintermediation occurs when a once disintermediated player is able to re-establish itself as an intermediary.

Which are the benefits of M-marketing? (Choose all correct answers)

• 1. Smartphones enable rapid content consumption, with users swiftly scrolling through their social media feeds or news sites.

• 1. Companies will be better able to target their products and promotions to those in a given geographic area at a specific time.

• 1. Restrain the number of users who can be reached and those who can receive information via mobile marketing.

• 1. Shoppers have the ability to compare prices, allowing them to access the most competitive prices in the market right when they make their purchase decision.

Answer explanation

Answer A is a disadvantages of M-marketing because users scroll through their social media feeds or news sites, reading headlines and dismissing promotional content. Then, brands might struggle to get their message across if the user wants to skim and get to the bottom of the page and continue on to the next one.

Answer C is a disadvantages because it limits (restrain) people who don’t have mobile, leading to technology dependence.