Chapter 15 & 16

Question 1

What is the title of Chapter 15?

Answer 1

International Marketing Channels

Question 2

Agent intermediaries

Answer 2

In an international transaction, intermediaries represent the principal (home manufacturer/marketer) rather than themselves; they work on commission and arrange for sales in the foreign country but do not take title to the merchandise

Question 3

Complementary marketing

Answer 3

The process by which companies with excess marketing capacity in different countries or with as desire for a broader product line take on additional lines for international distribution; commonly called “piggybacking”.

Question 4

Distribution structure

Answer 4

The system. present in every country’s market, through which goods pass from producer to user; within the structure are a variety of intermediaries.

Question 5

Export management company (EMC)

Answer 5

An important for firms with relatively small international volumes or those unwilling to involve their own personnel in the international function.

• These EMCs range in size from 1 person up to 100 and handle about 10 percent of the manufactured goods exported.
• Typically an integral part of the marketing operations of its client companies
• Working under the names of manufacturers, the EMC functions as a low-cost, independent marketing department with direct responsibility to the parent firm
• The working relationship is so close that customers often are not aware they are not dealing directly with the export department

Question 6

Export Trading Company (ETC) Act

Answer 6

An act allowing producers of similar products in the United States to form an export trading company; the act created a more favorable environment for the formation of joint export ventures, in part by removing antitrust disincentives to trade activities.

Question 7

Home-country intermediaries

Answer 7

In international transactions, the intermediaries, located in the producer’s home country, who provide marketing services from a domestic base; also known as domestic intermediaries. They offer advantages for companies with small international sales volume or for those inexperienced in international trade.

Question 8

Large-Scale Retail Store Law

Answer 8

In Japan, competition from large retail stores has been almost totally controlled by Daitenho (the Large-Scale Retail Store Law) and its more recent incarnations.
- Designed to protect small retailers from large intruders into their markets
- Any store larger than 5,382 square feet must have approval from the prefecture government to be “built, expanded, stay open later in the evening, or change the days of the month they must remain closed”
- All proposals for new “large” stores were first judged by the Ministry of International Trade and Industry (MITI).
- If local retailers unanimously agree to the plan, it is approved
- Without approval at the prefecture level, the plan was returned for clarification and modification, a process that could take several tears.

Question 9

Merchant intermediaries

Answer 9

In international transactions, they are located in the foreign market.

• They take title to the home-country manufacturer’s goods and sell on their own account. Manufacturers using them have less control over the distribution process than those using agent intermediaries.

Question 10

Trading companies

Answer 10

Business entities that accumulate, transport, and distribute goods from many countries

Question 11

What is the title of Chapter 16?

Answer 11

Integrated Marketing Communications and International Advertising

Question 12

Integrated marketing communications (IMCs)

Answer 12

The collective arrangement of methods to sell a product or service, including advertising, sales promotions, trade shows, personal selling, direct selling, and public relations.

Question 13

Noise

Answer 13

The term for an impairment to the communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the “receiving end.” Noise can disrupt any step of the communication process and is typically beyond the control of the sender or receiver.

Question 14

Public relations (PR)

Answer 14

The effect made by companies is to create positive relationships with the popular press and general media

• To communicate messages to the public, including customers, the general public, and government regulators.

Question 15

Sales promotions

Answer 15

Marketing activites that stimulate consumer purchases and improve retailer effectiveness and cooperation