29 which of the following is not an advantage of a

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29. Which of the following is not an advantage of a single distributor? A. One corporate presence eliminates confusion among buyers and local officials. B. Communication is less plagued by noise. C. Logistics flows are more economical. D. Marketing programs are cheaper. ANS: D PTS: 1 DIF: Easy REF: Channel design 30. Locating a warehouse near the customer may reduce the cost of transportation. This is an example of what type of concept? A. Total cost concept B. Profit maximisation concept C. Cost-based concept D. Trade-off concept ANS: D PTS: 1 DIF: Moderate REF: International logistics
31. Parallel importation refers to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted into a country by bypassing designated channels. What type of market is this? A. Subversive B. Sub-governmental C. Grey. D. Black ANS: C PTS: 1 DIF: Easy REF: Selection of intermediaries 32. Two dimensions are of major importance to inventory management. They are: A. the length of the total order cycle and its consistency. B. the throughput volume and inventory management cost. C. the economies of scale and economies of scope. D. the cost and storage time. ANS: A PTS: 1 DIF: Easy REF: International inventory issues 33. _____________ is instrumental in getting the merchandise to the ultimate destination in a safe, maintainable and presentable condition. A. Insurance B. Shipping documents C. Packaging D. Bill of packaging ANS: C PTS: 1 DIF: Moderate REF: International packaging issues 34. The distributor’s existing product lines should be analysed along four dimensions. Which of the following is not one of the four dimensions? A. Competitiveness B. Compatibility C. Complementary nature D. Brand assets. ANS: D PTS: 1 DIF: Moderate REF: Channel design SHORT ANSWER 1. What is your opinion about future innovative approaches to international distribution? ANS: It is important for students to show some critical thinking when answering this question. Innovative distribution approaches will determine new ways of serving markets. Over time, self-sustaining consumer–distributor relationships will emerge. For example, refrigerators will report directly to grocery store computers that they are running low on supplies and require a home delivery billed to the customer’s account. PTS: 1 DIF: Moderate REF: Future insights
2. Elaborate on the recommended logistic optimisation method. ANS: To optimise the logistics system, the marketer should analyse international product sales and then rank products according to warehousing needs. Products that are most sensitive to delivery time may be classified as ‘A’ products. ‘A’ products would be stocked in all distribution centres, and safety stock levels would be kept high. Products for which immediate delivery is not urgent may be classified as ‘B’ products. They would be stored only at selected distribution centres around the world. Finally, ‘C’ products for which short delivery time is not important, or for which there is little demand, would be stocked only at headquarters. Should an urgent need for

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