Designing and Managing Integrated Marketing Channels GENERAL CONCEPT QUESTIONS Multiple Choice 1 . Intermediaries who buy, take title to, and resell the merchandise are called 2. Companies that search for customers and may negotiate on the producer’s behalf but do not take title to the goods are called 3. Transportation companies, Independent warehouses. Banks, and advertising agencies that assist in the distribution process but neither take title to goods nor negotiate purchases or sales are called 4.
One of the chief roles of marketing channels is to convert potential buyers into refutable . 5. A marketing channel system is the particular set of employed by a firm. Decisions about the marketing channel system are among the most critical facing a firm. Strategy Involves the manufacturer using Its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users. Strategy creates consumer demand through promotions and advertising as a way to Induce Intermediaries to carry the product. 8.
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Today customers expect channel Integration to work smoothly. Which of the following Is NOT one of the characteristics of channel Integration? . The ability to order the product online and pick it up ATA retail location b. The ability to return an total online and off-line purchases d. Offering gift certificates that can be redeemed online and off-line e. None of the above are characteristics of channel integration 9. Generally speaking, buyers fall into four categories. Which of the following is NOT one of these categories? A. Habitual shoppers b. High-value deal seekers c.
Low-involvement shoppers d. Variety-loving shoppers e. High-involvement shoppers 10. Shoppers who primarily seek stores that suit people like themselves or members f groups they aspire to Join are known as 1 1 . A supply chain view of a firm sees markets as destination points and amounts to a linear view of the flow. The company should first think of the target market and then design the supply chain backward from that point. This view is called 12. A value network includes a firm’s suppliers and its suppliers’ suppliers, and its immediate customers and their end 13.
Through their contacts, experience, specialization, and scale of operation, intermediaries help firms in making goods widely available. 14. A marketing channel overcomes the time, place, and APS that separate goods and services from those who need or want them. 15. Physical functions, title functions, and promotional functions are example of flow of activity from the company to the customer. 16. The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them.
All channel functions have three things in common. Which of the following is NOT one of these channel functions? A. They use up scarce resources. B. They can often be performed better through specialization. C. They can be shifted among channel members. D. They require substantial investments by the producer. E. None of the above 17. A channel consists of a manufacturer selling directly to the final customer. 18. Designing a marketing channel system involves analyzing customer needs, identifying major channel alternatives, and evaluating major channel 19.
In designing the marketing channel, the marketer must understand the service output levels desired by the target customers. Channels produce five service outputs. Which of the following is NOT one of these outputs? A. Product variety b. “Entertainment shopping experience” c. Spatial convenience d. Waiting and delivery time e. Lot size 20. Channel objectives should be stated in terms of service output levels. 21 . A channel alternative is described by three elements: the types of available business intermediaries, the number of intermediaries needed, and the 22.
Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them. They can use exclusive distribution, distribution, and intensive distribution. 23. When the producer wants to maintain control over the service level and outputs offered by the resellers, it most likely will use distribution. 24. By granting the producer hopes to obtain more dedicated and knowledgeable selling. 25. With the company does not need to worry about too many outlets; it can gain adequate market coverage with more control and less cost that intensive distribution. 6. Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to 27. Distribution consists of the manufacturer placing his goods and services in as many outlets as possible. Sale, and specific services to be performed by each party. 29. Each channel alternative needs to be evaluated against control, and adaptive criteria. 30. One of the control issues of using a sales agency as a channel partner is that the sales agency is an independent firm seeking to 31 .
After a company has chosen a channel alternative, individual intermediaries must be trained, motivated, and evaluated. 32. It is important for the company to select its channel members carefully because to the customers, the channels the company. 33. Can be defined as the ability to alter channel members’ behavior so that they take actions they would not have taken otherwise. 34. The five types of power available to the producer to elicit cooperation from Handel members includes all of the following EXCEPT power. 35. In competitive markets with low entry barriers, the optimal channel structure will inevitably over time. 6. Regarding distribution systems, one of the most difficult decision that a firm must make at some time involves the channel strategy. 37. A conventional marketing channel comprises a(n) retailer(s), each acting in his own self-interest. Wholesaler(s), and 38. A(RL) unified system. 39. A(RL) comprises the producer, wholesaler(s), and retailers(s) acting as a consists of independent firms at different levels of production and striation integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone. 40.
Which of the following is a type of contractual VIM? A. Specialty stores b. Franchise organizations c. Kiosks stores d. Catalog stores exploit an emerging marketing opportunity, it is called a 42. Occurs when a single firm uses two or more marketing channels to reach one or more customer segments. 43. By adding more channels, companies can gain three important benefits. First, they can increase their market coverage; second, they can lower channel costs; and hired, they can provide is generated when one channel member’s actions prevent another channel from achieving its goal. 5. 47. Involves conflict between members at the same level within the channel. Means conflict between different levels within the same channel. Exists when the manufacturer has established two or more channels that sell to the same market. Occurs when channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals. 49. Causes of channel conflict include all of the following, EXCEPT incompatibility a. Goal c. Dependency d. Nuclear goals and rights e. Channel power usage 50.
There are several mechanisms for effective channel conflict management. These include the following, EXCEPT b. Subordinate goals c. Co-vitiation d. Diplomacy e. Mediation a. Frequent vendor switching 51. Is an effort by one organization to win the support of the leaders of another organization by including them in advisory councils, board of directors, and the like. 52. Means resorting to a neutral third party who is skilled in conciliating the two parties’ interests. 53. Producers of strong brands sometimes sell them to dealers only if the dealers will cake some or all of the rest of the line.
This practice is called full-line forcing or 54. Describes the use of electronic means and platforms to conduct a company’s business. 55. Means that the company or site offers to transact or facilitate the selling of products or services online. 56. Means companies decide to purchase goods, services, and information from various online suppliers. 57. Describes company efforts to inform buyers, communicate, promote, and sell its products and services over the Internet. 58. Are companies that have launched a Web site without any previous existence as a firm. And/or e-commerce. 0.
For the brick-and-click companies, adding an e-commerce channel creates the threat of intermediaries. Essay from retailers, brokers, agents, and other 101 . Explain why the marketing channel system is so important to a firm. 102. Explain the concept of a hybrid channel distribution system. 103. Different consumers have different needs during the purchase process. Researchers Nines and Speeded argue that, in many markets, buyers fall into four categories. List and briefly define these four categories. 104. Demand chain planning yields several insights for manufacturers who follow this view of the supply chain.
Explain what these insights are and how companies can use them to their best advantage. 105. What are some of the advantages available to producers using intermediaries? 106. In designing a marketing channel system, the marketer must understand the service output levels desired by target customers. Channels provide five service outputs. List and briefly describe each of these outputs. 107. Manufacturers are constantly tempted to move from exclusive distribution or selective distribution to more intensive distribution. Give a reason why this might not be a good long-term strategy for a manufacturer. 8. Explain the differences between a vertical marketing system (VIM) and a conventional marketing system? 109. The most advanced supply-distributor arrangements for administering Vim’s involve distribution programming. Explain the components of distribution programming. 110. For a brick-and-click company to add e-commerce to its marketing mix, the firm question remains: How to sell both through intermediaries and online? Three strategies for successfully answering this question were postulated in the chapter. List and briefly define these three strategies. APPLICATION QUESTIONS 111.
Your product enjoys high brand loyalty and high involvement in the category. It has perceived differences that consumers recognize between brands and is one of the few that its consumers choose before selecting the retail store/Web site to purchase the product. Which promotion strategy would hold the greatest opportunity for incremental sales for your product? 112. Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase. Which promotion strategy would hold the greatest opportunity for incremental sales for our product? 13. When managing a hybrid channel, the channel manager must ensure that these different channels work seamlessly in the consumer’s opinion. When the consumer can order a product online and pick it up at the nearby retail store or be able to return the Internet-ordered product to the retail store, we state that the channel has 114. Jenny gathers information from a variety of channels, conducting extensive research on the advantages/disadvantages of the products available. She visits a number of high-priced retailers, asks numerous questions, and tries many of the rodents.
When the time comes to purchase, she always purchases through the lowest-cost channel. Jenny is best described as a 1 15. Palm, the leading manufacturer of handheld devices, consists of a whole community of suppliers and assemblers of semiconductor components, plastic cases, LCD displays, and accessories; of off-line and online resellers; of 275,000 developers in the Palm Developer Network who have created over 21,000 software programs and 100 hardware add-ones for the Palm operating system for handheld computers and smartness. Combined, these make up Palm’s 116.
A company selling exercise equipment may need to establish three channels of distribution-??a sales channel, a delivery channel, and a . 117. Departure manufactures kitchen goods and has its representatives sell them through home parties. This is an example off Products deal with Wall-Mart, are becoming a mainstay for specialists looking for an edge in a business world that is increasingly driven by price. 119. In rolling out your company’s newest product, you decided to use manufacturers’ representatives as your sales agents. Part of your establish territories based upon counties per state. Was to 120.
The sales of your product are low compared to your competition. The decision facing you is whether to use a sales agency (brokers, manufacturers’ representatives) or hire a field sales force. The fixed costs of engaging a sales agency are lower than those of establishing a company sales force, but costs rise faster through an agency. When figuring out sales and costs, the intersection of the costs between sales agencies and sales force (SUB) means that . 121 . Role is very selective when choosing the retailers that will sell its watches. The company needs to view its retailer in the same way as it views its end users.
The firm needs to determine intermediaries’ needs and construct a channel positioning such that its channel offering is tailored to provide to these retailers. 122. As more women entered the workforce and were unavailable to Van’s traditional door-to-door system for selling cosmetics, Avon ventured into selling its cosmetics in Spinney. Avon revised its channel strategy due to 123. When Kodak coordinates successive stages of production and distribution and receives cooperation from major retailers in connection with displays, shelf space, promotions, and pricing policies due exclusively to Soda’s size and power , we call his a(n) 124.
The emergence of rental car counters, hair salons, banks, and dry cleaners found in such stores as Wall-Mart, Target, grocery retailers, and others is an example of marketing systems. 125. As a recent college graduate, you dream of opening up your own business. You have explored franchising. In fact, one of the companies that you are strongly interested in is a service organization (fast food) that has a whole system designed to bring its service efficiently to consumers. This is an example of a 126. A soft-drink concentrate producer makes a 20% margin on its regular soda and 5% on its diet version of the same drink.
The soft-drink bottlers, however, are required to sell both the regular and diet versions to the retailers at the same price. This is a classic example of 127. In deciding to take your product to market, one of the first considerations must exclusive franchisee operations and (b) to mass distributors/retailers concurrently, to the same target market, this may lead to a 128. As a marketing manager for a national company that uses brokers as your field sales agents, you suggest to your senior management the creation of an “advisory am” composed of retailers, food brokers, sales managers, and inside marketing and management personnel.
Your objective is to win support of the leaders of another organization by including them in planning discussions. You are advocating what type of conflict management resolution? 129. The text would define eBay, a third party that creates markets by linking buyers and sellers, as a 130. Harley-Davidson entry into the Web for their parts and accessory business called for them to “protect” their retailers by referring customers to the local Harley- Davidson dealer. One additional strategy available to firms wishing to protect their Hansel of distribution yet capitalize on Internet sales is Short Answer 131 .
Define the term “marketing channels. ” 132. Why is a marketing channel system so important to the manufacturer? 133. The ability by the consumer to access information via the Internet, conduct business transactions either by phone, Internet, or in person is an example of a company using what type of marketing channels? 134. When you deliver the products to the customer, exchange title of the goods, or even conduct a sales promotion, you are conducting a forward flow of activity through the channel. Explain the elements for a backward flow from customers to the company. 35. In setting up your distribution channel, you note that you must account for the physical transfer of the product from your location to the consumer and must receive payment for the goods sold. These are part of the channel functions.