Exam 10: Place and Development of Channel Systems

General Motors (GM), a U.S. automotive manufacturer, has an arrangement with Isuzu Motors of Japan in which the Isuzu Ascender is produced at the same GM manufacturing plant as the Chevrolet TrailBlazer and GMC Envoy. All three vehicles use the same basic platform and engine. This is an example of licensing.

Product classes help marketing managers understand how much market exposure will be needed in each geographic area.

Which of the following is true of direct distribution?

Selective distribution is growing in popularity because it provides 100 percent coverage of the market.

Because of long-run effects, decisions about one of the four Ps are often harder to change than the others. This P is:

"Regrouping activities" involve adjusting the quantities or assortments of products handled at each level in a channel of distribution.

Selective distribution:

A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.

Reverse channels are used when multichannel distribution fails.

Use this information for question that refer to the World Tennis Ball (WTB) Company case. World Tennis Ball Co. (WTB) makes tennis balls and sells them only in the U.S. Raul Fernandez, the firm's marketing manager, is comparing his firm's distribution with two major competitors. 1) WTB sells its products through four regional distributors who then sell to 22 sporting goods wholesalers. The wholesalers sell to a total of 7,000 retail outlets. From its website, WTB also sells directly to any customer who will purchase a minimum quantity of 24 tennis balls. WTB cooperates with members of its channel, but maintains some control through its economic power and leadership. It helps to direct the activities of the whole channel and tries to avoid or resolve channel conflicts. 2) American Tennis Ball (ATB) is a competitor that sells through two distributors-each with half the country. The distributors then sell through 6 sporting goods wholesalers, and they, in turn, sell to 1,000 retail outlets (split between two national sporting goods chains and two general merchandise stores). ATB and its channel make little effort to work together. However, because of a relatively low level of competition between the distributors, the wholesalers, or the retail stores, each member of the channel gives the product special attention. 3) National Tennis Ball (NTB) sells its products through only three tennis specialty wholesalers that sell only to tennis clubs. NTB actually owns the wholesale firms that handle its products. NTB's balls are only available at certain tennis clubs and NTB limits coverage to only one club in a particular geographic area. Which of these companies uses a corporate channel of distribution?

Sony manufactures clock radios in quantities of more than 100,000 in a given time period-but the average consumer wants only one clock radio at a time. This difference is an example of

When planning channels of distribution, a marketing manager should know that

"Place" decisions:

In a retailer-led channel system, strategy decisions:

A "channel captain" is a manager who helps direct the activities of a whole channel.

Joint venturing gives a firm less control than if it owns a separate subsidiary.

Selling through only one wholesaler or retailer in a particular geographic area is called:

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

Intensive distribution is often very appropriate for:

Which of the following statements does not accurately characterize place decisions?