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Exam 12: Place and Development of Channel Systems

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Question 31

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When the Rosco International chain of restaurants enters foreign markets,locals own the restaurant facilities,but look to Rosco to provide expertise in management and marketing.Rosco uses the ________ approach to enter international markets.

A) management contracting
B) direct investment
C) exporting
D) joint venture
E) licensing

F) C) and E)
G) None of the above

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Question 32

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Selling through only one wholesaler or retailer in a particular geographic area is called:

A) Ideal market distribution
B) Intensive distribution
C) Selective distribution
D) Exclusive distribution
E) Equivalent distribution

F) A) and D)
G) D) and E)

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Question 33

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Using the ________ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.

Direct investment in a foreign market involves the biggest commitment and the biggest risk.

Yakima Valley Produce,Inc.buys artichokes from many small farmers,assembles them into larger quantities,and ships in carload quantities to a central market where they are sold to large food processors.This "regrouping activity" is called:

In an indirect channel of distribution,both vertical conflict and horizontal conflict may arise.

The vertical marketing system in which control is maintained via informal cooperation among the channel members is a(n) :

Exporting has an advantage compared to other types of international involvement,because it is usually easier to drop or change arrangements as the firm's needs change.

Use this information for question that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co.(WTB) makes tennis balls and sells them only in the U.S.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors. 1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel,but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts. 2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country.The distributors then sell through 6 sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) .ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention. 3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area. These three tennis ball producers all rely on retailers to reach consumers who want to buy only a few balls at a time.Apparently they all think that this is an efficient way to

Product classes help marketing managers understand how much market exposure will be needed in each geographic area.

Choosing an indirect channel probably will be better than a direct channel if a producer wants to ________.

Discrepancy of quantity is

Any contractual channel system-by definition-is also an administered channel system.

Use this information for question that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co.(WTB) makes tennis balls and sells them only in the U.S.Raul Fernandez,the firm's marketing manager,is comparing his firm's distribution with two major competitors. 1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers.The wholesalers sell to a total of 7,000 retail outlets.From its website,WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls.WTB cooperates with members of its channel,but maintains some control through its economic power and leadership.It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts. 2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country.The distributors then sell through 6 sporting goods wholesalers,and they,in turn,sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores) .ATB and its channel make little effort to work together.However,because of a relatively low level of competition between the distributors,the wholesalers,or the retail stores,each member of the channel gives the product special attention. 3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs.NTB actually owns the wholesale firms that handle its products.NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area. Which of these companies uses a corporate channel of distribution?

A disadvantage of direct-to-customer channels is that

A disadvantage of direct-to-customer channels is that they

The owners of all the Chrysler auto dealerships in a large metropolitan area have an informal meeting during a golf outing.During the meeting,they agree to limit their orders of a new model of automobile that has received excellent reviews from the trade press for its styling and handling characteristics.Restricting orders will permit the dealers to sell these models at a price that will be at or above the manufacturer's suggested retail price for the vehicle.As a result,the dealers will make more profit on each vehicle sold due to the high demand for the new model.This type of agreement would be viewed by the courts as:

Traditional channels of distribution

In _____ channel systems the amount of cooperation among members of the channel is very high.

Producers can positively manage channel conflict using all the following tactics except: