Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Review and Discussion Questions
Chapter 13: International Marketing Channel Management
Review questions
1. Define the term international marketing channel.
a. International marketing channel – a marketing system that promotes the physical flow
2. Describe international distribution and international logistics.
a. International distribution – the process by which products and services flow between
producers, intermediaries, and consumers, including the transfer of ownership.
3. What three distribution intensity strategies can marketers employ?
a. Intensive distribution
4. What are the 5 Cs of marketing channel structure?
a. Cost
b. Coordination
5. Describe the direct and indirect international channels of distribution.
a. A direct marketing channel relies on direct selling of a product or service to
consumers or end users without the use of wholesalers, retailers, industrial agents, or
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
industrial merchants. In a direct channel of distribution the product goes directly from
the producer to the consumer.
6. How is an agent middleman different from a merchant middleman?
a. Agent middlemen do not take title or ownership of the products whereas merchant
middlemen do take title or ownership of the products.
7. Describe the concept of channel length.
The concept of marketing channel length reflect the number of intermediaries a product gores
through before reaching a consumer. While many channels are relatively short, using just a
8. What factors influence the choice of international distribution systems?
a. Type of product
b. Price
c. Competition
d. Brand image
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
9. Describe the natures of vertical integration, horizontal integration, and vertical marketing
systems.
Integration refers to controlling steps in the market channel. For vertical integration, you move
either forward, controlling retailing or distribution if a manufacturer, or backward, controlling
manufacturing or distribution if a retailer. Horizontal integration involves acquiring competitors
at the same level of the market channel. A retailer acquiring other retailers, or a manufacturer
10. What is a gray market?
a. A gray market is the practice of distributing products through distribution channels
that are not authorized by the marketer of the product.
11. Describe a push strategy and a pull strategy.
a. A push strategy focuses on providing intermediaries with incentives that will lead
them to cooperate in marketing the product. Discounts, sales contests, training
programs, and other methods entice the wholesaler or retailer to order in greater
quantities, thereby pushing the product through the channel to the consumer. When
customers find the product in the store and the salesperson is enthusiastic about the
item, chances of generating greater sales improve. Hopefully stores will ‘push’ the
products onto consumers.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
12. What functions are performed by marketing channel members?
There are numerous functions performed by marketing channel members. The examples in the
book, found in table 13.4, are: 1) research market needs, 2) determine buyer needs and ability to
purchase, 3) promote products to end users and channel members, 4) use financial and marketing
incentives to increase purchases, 5) fulfill order-taking duties, 6) includes order entry, order
fulfillment, and order delivery, 7) communicate with other channel members, 8) share
13. What power bases are found in international marketing channels?
a. Legitimate
b. Referent
14. What are the stages of negotiation in an international marketing channel dispute?
To successfully negotiate a dispute, the first stage is preparation. After collecting the information
needed to be ready to negotiate, the second stage is relationship building. This should be guided
Discussion questions
1. What type of distribution tactic (intensive, selective, or exclusive) do you think should be
used for the following products?
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Milk in the United Kingdom
Intensive distribution – marketers prefer this approach when the company offers
products that appeal to a mass market of consumers. Many households need milk, it
should be readily available for purchase from many outlets.
2. The 5 Cs of channel member selection represent key components in the strategic
distribution process. Apply the 5 Cs to the following products.
School supplies
o Costs – the supplies that local students need would need to be in stores – they need
to be widely distributed so it is easy to buy these.
Coordination – schools and teachers will need to communicate with schools who will
need to communicate with their suppliers about what products they need in stock.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Coverage – there should be an intensive strategy used.
o Cooperation – trust needs to be established
Control – when shipping internationally producers lose some control. Here they need
to make sure food safety and quality is still taken care of.
Perfume
Costs – not only transporting the product, but the packing a perfume will be a cost.
Channel members will need to coordinate to make sure there is an ample supply at
department stores.
Coverage – for designer perfume a selective strategy should be used.
o Cooperation – trust needs to be established
Control – when shipping internationally producers lose some control.
3. Figure 13.7 provides a list of the functions of international marketing channel members.
Apply the list to the following companies, industries, or situations.
Table 13.4: Functions of International Marketing Channel Members
Research market needs
Determine buyer needs and ability to purchase
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Promote products to end users and
channel members
Use financial and marketing incentives to increase purchases
Fulfill order-taking duties
Includes order entry, order fulfillment, and order delivery
Communicate with other channel
members
Share information about customer buying patterns and preferences
along with local market research information
Warehousing, inventory control, and
materials handling
Store products until they are sold, keep track of items, move products
within both the manufacturing and the warehousing systems
Address discrepancies of assortment
Manage demand for a wide array of products by consumers with
with actual payment
Transport products to channel members
and end users
Select method of transportation
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Automobile manufacturers
Disposable pens and cigarette lighters
Exclusively distributed goods
Selectively distributed goods
4. Describe how channel leaders can exert each of the power bases (legitimate, referent,
expert, reward, and coercive) on marketing channel members who market televisions in
selected retail outlets in Europe.
Legitimate power exists most frequently in the form of contracts and formal
agreements between marketing channel members. The leader can control what the
other channel members do when selling TVs through written contracts.
Referent power may be found when channel members desire to be associated or
identified with a particular producer or product. Any retailer that wishes to carry the
leader’s brand of TVs will defer to the referent power of the brand.