Exam 13: Marketing Channels

One thing that sets service distribution apart from traditional manufacturing distribution is that in a service environment:

Highly integrated channel relationships are the preferred relationship because there is no large outlay of assets required to keep the channel members all working toward the same results.

At one end of the channel relationship continuum is the "Arm's-Length" relationship.

Redbox Movie DVD sales represent a $16 billion market,and rentals make up another $7.5 billion.Naturally,production studios would prefer consumers purchase DVDs rather than rent them.Production studios like Twentieth-Century Fox,Warner Bros,and General Electric refused to sell new releases to Redbox,a DVD vending machine company,until almost a month after new releases arrived in stores.Redbox,the ubiquitous DVD rental red kiosks found in- and outside of convenience stores,grocery stores,drugstores,fast-food restaurants,and Walmart,is cutting in on production companies' profits.These studios are tangled in lawsuits with Redbox.Sony,Paramount,and Lionsgate,on the other hand,permit distribution through Redbox,and Disney allows third-party distribution to Redbox.With more than 20,000 kiosks now in operation,Redbox ranks fifth in DVD rental revenues,which is impressive considering the rental fee is only $1.00.But Blockbuster is trying to steal vending market share by allowing NCR Corporation,known for ATM machines,to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Production studios distribute DVDs in grocery stores,drug stores,discount stores,entertainment stores,and vending machines like Redbox.Which level of distribution intensity does this represent?

Walmart is the largest retailer in the world and many consumer package-goods manufacturers like Kraft have offices in Bentonville,Arkansas where Walmart is headquartered.Walmart has the ability to influence manufacturers to lower their prices so that it can deliver on its low-price guarantee to consumers.Walmart possesses:

List and briefly define the three basic types of channel relationships.Explain why they are described as a continuum.

Which of the following enables a company to use another manufacturer's already established channel?

Scholastic Press published millions of copies of Mockingjay,the final installment in Suzanne Collin's popular Hunger Games trilogy of books.However,each reader wants to purchase just one copy.The difference between the number of books Scholastic Press published and the number a consumer wants to buy is referred to as a:

You can purchase an iPod at a variety of retail locations,such as Best Buy and MicroCenter.However,iPods can also be purchased at Apple Stores or from Apple's web site.This creates the potential for _____ conflict in the channel of distribution.

Which of the following businesses is most likely to have a problem with distribution because production and consumption of the product occurs simultaneously?

Which of the following statements concerning how market factors affect channel decisions is NOT true?

Almost a million fans are willing to buy subscriptions to watch Major League Baseball (MLB)games online at MLB.com.That business is worth more than $100 million to MLB.But this online broadcast takes those fans away from the broadcasters that pay MLB hundreds of millions of dollars for the right to carry the games.Which of the following is likely to occur between MLB and broadcast television?

Reciprocal conflict occurs among channel members on the same level,such as two or more different wholesalers or two or more different retailers that handle the same manufacturer's brands.

The three basic functions channel intermediaries perform are:

Redbox Movie DVD sales represent a $16 billion market,and rentals make up another $7.5 billion.Naturally,production studios would prefer consumers purchase DVDs rather than rent them.Production studios like Twentieth-Century Fox,Warner Bros,and General Electric refused to sell new releases to Redbox,a DVD vending machine company,until almost a month after new releases arrived in stores.Redbox,the ubiquitous DVD rental red kiosks found in- and outside of convenience stores,grocery stores,drugstores,fast-food restaurants,and Walmart,is cutting in on production companies' profits.These studios are tangled in lawsuits with Redbox.Sony,Paramount,and Lionsgate,on the other hand,permit distribution through Redbox,and Disney allows third-party distribution to Redbox.With more than 20,000 kiosks now in operation,Redbox ranks fifth in DVD rental revenues,which is impressive considering the rental fee is only $1.00.But Blockbuster is trying to steal vending market share by allowing NCR Corporation,known for ATM machines,to license its name to place Blockbuster Express kiosks in similar types of locations. -Refer to Redbox.Warner Bros. ,Blockbuster,Redbox,Walmart,and third-party DVD distributors are part of a:

R.H.Kurt & Son,Inc. ,distributes rifles for both hunting and target shooting,rifle barrels,triggers,cleaning equipment,and reloading equipment to sporting equipment retailers and many large discount stores.It carries products from 41 different manufacturers.The manufacturers whose products it carries are known for producing superior products and are leaders in their industries.In addition,Kurt is able to repair damaged rifles through its gunsmith service,which is available to all of its retailers. -Refer to R.H.Kurt.When Kurt combines products from 41 different manufacturers into a collection retail buyers want available at one place,it is engaging in:

According to the terms of their agreement,a small convenience store pays its distributor on time on the 15th of every month.In term,the distributor makes sure to deliver product to the convenience store in an accurate and timely way.The parties in this marketing channel appear to be committed to the principles of _____ justice.

Nike has collaborated with a small number of specific stores in which they release their line of SB Skateboarding shoes.One of those stores is Goods,located in downtown Seattle.This is an example of _____ distribution.

Lawn Boy manufactures 13 models of walk-behind lawn mowers and 6 of types of riding mowers.Even though lawn mowers is a product category that does not sell year round,sales remain steady all year because Lawn Boy sells to wholesale distributors that stock the product.Its wholesale distributors are helping to overcome a(n)_____ discrepancy.

Marketing channels can achieve economies of scale through: