Author Question: In a short essay, identify the tasks of distribution channel intermediaries when they are employed ... (Read 33 times)

newbem · **on:** Jul 7, 2018

In a short essay, identify the tasks of distribution channel intermediaries when they are employed by focal firms. Why do exporters rely on intermediaries?

What will be an ideal response?

Question 2

Which of the following would occur if Super Cola entered a licensing agreement with the Asian beverage manufacturer, Tsang Cola?

A) Super Cola would distribute, and Tsang would produce.
B) Super Cola would produce, and Tsang would distribute.
C) Tsang would produce and distribute Super Cola.
D) Super Cola would produce and distribute from Asia.

brittrenee · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Distribution channel intermediaries are specialist firms that provide various logistics and marketing services for focal firms as part of the international supply chain, both in the focal firm's home country and abroad. Typical intermediaries include independent distributors and sales representatives, usually located in foreign markets.

Most intermediaries are based in the exporter's target market. They provide a multitude of services, including market research, appointing local agents or commission representatives, exhibiting products at trade shows, arranging local transportation for cargo, and clearing products through customs. Intermediaries also orchestrate local marketing activities, including product adaptation, advertising, selling, and after-sales service. Many intermediaries finance sales and extend credit, facilitating prompter payment to the exporter. In short, intermediaries based in the foreign market can function like the exporter's local partner, handling all needed local business functions.

Answer to Question 2

C