Question

Most global marketers rely on local distribution networks in foreign markets. This is because it is very expensive to build a company's own distribution network in a foreign market. This issue can be identified in the channel strategy of ________.

Multiple Choice

• change

• coverage

• character

• continuity

• control

Answer 1

The issue of global marketers relying on local distribution networks in foreign markets can be identified in the channel strategy of coverage. This is because distribution coverage strategy is focussed on distribution of right set of products to the right set of consumers through the available distribution network. The types of coverage strategies are as below:

1. Mass coverage

2. Selective coverage

3. Exclusive coverage

The type of coverage strategy that should be selected by an organization is based on the target set of consumers which the organization wants to cater to and the cost involved in distribution of products to that target set.