Exam 12: Place and Development of Channel Systems

The text suggests that a "channel captain" should be:

Rizzo Shoes sells through ________ channel system.Rizzo has informal agreements with its wholesalers and retailers-they cooperate pretty well by placing orders,and sharing inventory and sales information over a computer network.

Of the five basic kinds of involvement in international marketing,exporting is the least permanent.

Vertical marketing systems are growing in the U.S.,but declining in the rest of the world.

A vertical marketing system owned and operated by a single firm is called a ________ channel system.

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 the following appears to best describe ATB's channel arrangements?

A manufacturer that uses several competing channels to reach the same target market is using "multichannel distribution."

"Sorting" means separating products into grades and qualities desired by different target markets.

In a retailer-led channel system,strategy decisions ________.

"Exclusive distribution" means selling through ________.

From a producer's viewpoint,which of the following is an advantage of intensive distribution over selective distribution?

Assorting means separating products into grades and qualities desired by different target markets.

________ conflict occurs between firms at the same level in the channel of distribution.

The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:

The marketing manager for a producer of mattresses and box springs distributes its products through discount stores (like Costco),department stores,furniture stores,and specialty bedding stores.To avoid conflict with channel members,the manager ________.

Exporting

Which of the following statements about Place decisions is True?

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

Place decisions make goods and services available in the right quantities and locations,when customers want them.

In a channel where retailers lead,intermediaries that gather,analyze,and interpret big data that generates insights about their customers' needs will ________.