Exam 12: Global Marketing Channels

The first step in becoming a global franchisor is to have a well-established and successful operation in a home market.

Door-to-door selling is a relatively inexpensive form of distribution that requires low gross margins.

Companies sometimes establish retail outlets as a means of obtaining marketing intelligence rather than as a distribution strategy.

Termination can result in legal expenses.

Which of the following is often the most effective and the only feasible way for a company to establish itself in a new market?

When entering Japan, it is recommended that foreign companies offer better quality, lower price, or a distinctive positioning as a foreign product.

A disadvantage to manufacturers for using a distributor's sales force is that it generally tends to increase costs.

The low cost of a direct sales force acts as an incentive for establishing direct distribution in a new market.

________ refers to the coordination of production and distribution across markets.

Two of the most important clauses in a distributor contract are the performance and cancellation clauses.

Which of the following aids in indirect marketing?

How are industrial products distributed?

Street vendors are considered distribution channels.

The larger a market, the less feasible it is for a manufacturer to use its own sales force to distribute industrial products.

Direct involvement as a channel strategy requires incentives to be paid to independent channel agents.

Middlemen are in business to maximize their own profit and not that of the manufacturer.

The process of disintermediation in the global distribution system has been declining at a steady rate.

A ________ is an organized network of agencies and institutions which, in combination, perform all the activities required to link producers with users to accomplish the marketing task.

The degree of standardization of a product has no influence on channel design and strategy.

The world's best-known franchises are ________.