When Tool trade, an American company, uses qualified Brazilian manufacturers to

Question

When Tool trade, an American company, uses qualified Brazilian manufacturers to produce many of the products it sells to retailers in South America, Tool trade is using ? Which of the following is an example of a multichannel distribution system? J C Penney's catalog and retail store sales Waymart locating in several countries a hotel providing guest privileges at a health spa across the street Avon's door-to-door distribution Organic Designs is a small, successful chain of stores offering stylish clothes made of all-organic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets Which of the following methods of direct marketing would likely be most effective m accomplishing this goal?

Explanation / Answer

27. The answer is "B" contract manufacturing. In contract manufacturing goods are produced by one company, under the brand of another company. Here, Tool Trade is getting the goods produced by Brazilian manufacturers and then selling it under its brand.

28. Botsford (the US firm) already has a manufacturing facility in Taiwan. It has buit automative transmission in that facility. This is the case of an American company making investment in the facility in Taiwan. Here the American company is investing to exapnd its operations in Taiwan. This is called foreign direct investment. Hence the answer is "A" - direct investment.

29. Multichannel distribution system is one in which more than one distribution channel is used. The object is to reach the same customers in different buying situations. The objective can also be to reach different and multiple market segments.

So the answer is "A" - JC Penney's catalog and retail store sales. The same customer can be reached when he is in the retail store or buying through catalog.

30. The answer is "B" - breaking bulk. It means that as a consumer, he can buy small quantities at a time. The hardware stores buys in large quantities from the manufacturer, but sells it in smaller quantities.

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