Exam 10: Marketing Channels: Delivering Customer Value

Which of the following is a difference between storage warehouses and distribution centers?

________ distribution gives a limited number of dealers the sole rights to distribute a company's products in their territories.

Bateman Gray Motors sells the cars it produces using dedicated dealers who only sell Bateman Gray's products at their outlets.What kind of marketing strategy has Bateman Gray adopted with its car dealers?

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company.Kiltmark produces flour-based edible products,which it distributes to a wholesale company called Yellowstar Trading.Yellowstar Trading then sells Kiltmark products to the discount retailer,Stroos.Stroos sells the products to consumers.Which of the following is considered a marketing intermediary in these transactions?

Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers.

When a seller requires that only certain dealers carry its products,its strategy is known as ________.

With a vendor-managed inventory system,the supplier takes full responsibility for managing inventories and deliveries.

Which of the following is true of a conventional distribution channel?

The franchise organization is an example of a corporate vertical marketing system.

Differentiate between the three types of franchises and provide examples of each type.

Which of the following is true of RFID or "smart tag" technology?

A company that has no intermediary levels sells its products directly to its customers.

Crowbar Records used to sell its music CDs through a network of retail outlets,record stores,and music dealers but stopped using these agents with the advent of MP3 technology.Crowbar now sells its music independently on its Web site,through personal mail,and on social networking sites.Which type of marketing system has Crowbar most likely adopted?

Clara's,a cosmetics manufacturer,sells many of its products through retail outlets.However,the firm sells a few expensive,popular products only through direct selling methods.What kind of channel arrangement does Clara's follow for all of its products together?

Exclusive dealing that creates a monopoly comes under the scope of the Clayton Act of 1914.

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity is referred to as a(n)________.

What criteria should a firm consider before choosing a channel alternative?

For over ten years,Erudite,a publishing and educational company that produces college textbooks,has been selling its books online through studysmart.com,a popular online retailer that sells textbooks published by different companies.Recently,Erudite stopped selling its books through studysmart.com and set up its own website for selling its books.This change in channel organization is called ________.

TruMart,a leading retail chain,decides to open a restaurant inside its stores,so the firm partners with MeatMe,a popular burger chain.MeatMe opens a restaurant inside TruMart.The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets.This arrangement will benefit all three companies.What kind of channel arrangement is being followed in this case?

In an administered VMS,the producer assumes the leadership position in a distribution channel by default.