Exam 16: Effective International Distribution
Which of the following is NOT one of Hollensen's factors in making a transportation decision?
D
Consumer goods tend to have longer distribution channels internationally than industrial goods.
True
Outline the key issues in global distribution. Give examples of how these impact the international distribution practices of Australian and New Zealand firms.
There are two issues that often arise when distribution is considered on a global as opposed to a national basis. These are the practicality of achieving standardisation and the problem of grey markets. Related to distribution, standardisation can be in the form of process standardisation, the development of uniform management practices, or program standardisation, developing a uniform marketing mix for all international markets. Experience indicates that it is easier to standardise global planning and decision making than it is to standardise the global marketing mix. A grey market is unauthorised distribution into an external market, most commonly involving unauthorised distributors circumventing authorised channel arrangements by buying a firm's products in low-price countries (usually from authorized distributors in that country) and selling them in high-price countries at prices lower than those offered by authorised members of the distribution channel.
(Examples may differ by student.)
Purchases by consumers of goods from imported sources via the internet often attracts import duties.
It is possible to have both supplier and intermediary domination within the same interaction.
Establishing a sales or marketing subsidiary in the overseas country is an example of indirect exporting.
Stage of economic development is a strong influence on the number of retailers in a country.
It is necessary from the outset to reach a clear understanding with the distribution agent as to how his performance will be measured. This measurement could be on the basis of the:
Product attributes are not a major influence in either the distribution strategy or the design of channels.
Which of the following is NOT included in the government and legal constraints methods of regulating international distribution?
In international marketing, franchising involves allowing the overseas franchisee to access the manufacturer's:
Manufacturing overseas can take a variety of forms. These include:
Acquiring an existing operation, building or plant in an overseas location is referred to as:
_______ strategy will be affected by the ________ health of the country.
Decisions on price setting in the international market involve establishing the minimum price the exporter is prepared to accept together with the maximum price the market is prepared to pay. What strategies could be used for determining this price?
Which of the following are alternative forms of distribution in a new international market?
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