Global Distribution, Logistics, and Retail Strategy Concepts

Global Marketing Channels and Logistics

Key Concepts in Physical Distribution

Intermodal Transportation

A freighter loaded with 40-foot shipping containers utilizes **Intermodal Transportation**.

A French winery packs its wine in a 40-foot container, utilizing **Intermodal Transportation**.

Inventory Management Tools

An important new tool for inventory management is: **RFID** (Radio-Frequency Identification).

Inventory management is primarily focused on: **ensuring cost control**.

Logistics and Physical Distribution

Order processing, warehousing, and transportation are components of: **Physical Distribution and Logistics**.

Physical distribution and logistics are concerned [with many operational aspects, but not typically] **designing in-store displays**.

Some wine importers insist on shipping their wines [in a specific way to ensure] **Form Utility**.

Channel Decisions and Utility Creation

Channel Importance

Channel decisions are important because: **it is expensive to terminate** (or change).

Coca-Cola Company's global marketing leadership position is based in part on creating: **Place Utility**.

Marketing channels exist to create utility, including: **Price Utility**.

The statement that Channel Strategy involves an analysis of each [channel option] is: **TRUE**.

Retail Classification and Strategy

Defining Retail Formats

• By definition, **Specialty Retailers** feature a narrow but deep merchandise mix and high levels of service.
• Departmentalized, single-story retail establishments that offer food and nonfood items, mostly on a self-service basis are called: **Supermarkets**.
• *Organized Retail* is a term used to describe: **modern chain stores** (chain stores, franchises, etc.).
• Hypermarkets are a hybrid retailing format combining [discount stores and supermarkets]. Statement is: **TRUE**.

Retail History and Innovation

Breaking all the conventional norms meant moving away from the system where: **goods were kept behind counters and were available by asking store clerks**.

Global Retailing Examples

IKEA

All of the following stores are categorized as "superstores" *except*: **IKEA**.

In the axis which differentiates between retailers (e.g., based on margin/service), IKEA falls in: **Quadrant A**.

If a commodity raw material comes from Africa, [it might be sourced by] **IKEA**.

International Expansion

Saks Fifth Avenue has **licensed** stores in the Middle East.

The entry global retailing market expansion [strategy often involves] **Departmental Stores**.

Laura Ashley, The Body Shop, and Victoria's Secret are examples of successful global retailers. Statement is: **TRUE**.

E-Commerce and Distribution

P-to-P Marketing

eBay was a pioneer in a form of online marketing known as: **P-to-P** (Peer-to-Peer).

Peer-to-Peer (P-to-P) marketing uses distribution channels through: **Electronic Commerce**.

Miscellaneous Concepts

Containerization (Alternative Definition)

"Containerization" refers to a company's: **designing attractive product packaging that will help a product "sell itself."**

Golden Store Program

In exchange for a pledge to carry at least 40 different [products], a retailer might participate in the: **"Golden Store" Program**.

Developing Markets

In less-developed countries, the most important [retail format/distribution point] is often: **Public Marketplaces**.

Automobile Distribution

Sales representatives in the Japanese **Automobiles** industry often maintain close, long-term relationships.

The close long-term relationships between auto salespersons [and customers are important]. Statement is: **TRUE**.

True/False Assessments

The following statements are assessed as True (T) or False (F):

• A company or activity that [is described] is: **TRUE**.
• A distributor with good contacts is obviously [successful/necessary]. Statement is: **FALSE**.
• After successfully penetrating China's [market]: **TRUE**.
• An exporter that is new to a particular [market] [will struggle]. Statement is: **FALSE**.
• As Walmart extends its reach around the globe [it faces challenges]. Statement is: **TRUE**.
• By definition, a retailer [performs a specific function]. Statement is: **TRUE**.
• Distribution channels for automobiles [are short/simple]. Statement is: **FALSE (F)**.
• Due to political upheaval in the Middle East [market conditions changed]. Statement is: **TRUE (T)**.
• In Japan, the biggest barrier facing U.S. auto [manufacturers is X]. Statement is: **TRUE**.
• In many countries, it is customary [to use specific distribution methods]. Statement is: **TRUE**.
• In spite of Walmart's potential to transform [local economies/supply chains], the answer is: **All of the above**.
• Kodak adopted a *direct involvement* [strategy]. Statement is: **FALSE**.
• Legislatures in India are [implementing new retail policies]. Statement is: **TRUE (T)**.
• Retailers may have a difficult time crossing borders if [conditions X exist]. Statement is: **FALSE**.
• Swedish furniture retailer IKEA pulled [a product/campaign]. Statement is: **TRUE (T)**.
• Tesco came up short in its effort to [penetrate a market]. Statement is: **TRUE**.