Exam 12: Place and Development of Channel Systems

To help producers manage discrepancies between what gets produced and what customers need,channel specialists perform ________ activities,such as accumulating,bulk-breaking,sorting,and assorting.

A selective distribution policy might be used to avoid selling to wholesalers or retailers that:

"Place" decisions:

Intensive distribution:

The Internet is making it possible for firms to reach customers that were impossible to reach before.

Consumer product companies such as Tupperware that appear to be selling direct may not be because their salespeople are independent distributors,not company employees.

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 tennis ball manufacturer is involved in direct distribution?

Intermediaries in indirect channels of distribution:

Intensive distribution is

Traditional channel systems:

Place is concerned with the selection and use of marketing specialists-intermediaries and collaborators-and making goods and services available in the right quantities and locations when customers want them.

Ravi Singh is working his way through college as an independent distributor of the Rapier Knife Co.The Rapier product line includes kitchen knives,hunting knives,and other special-purpose cutlery.Ravi makes sales presentations to potential customers in their homes.If a customer wants to make a purchase,Ravi buys the knives from Rapier and sells them to the customer at a markup.For example,Rapier's most popular knife is a chef's knife that Ravi buys for $25 and resells to the consumer for $50.Ravi:

______________ (as a way to enter foreign markets)means selling the right to use some process,trademark,patent,or other right for a fee.

The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called ________.

Lacey Springs Apple Co.buys fresh apples in truckload quantities,regroups the heterogeneous commodities into homogeneous lots according to grade and quality,and then sells them to retailers.This "regrouping activity" is called ________.

When McDonald's corporate headquarters offers a local McDonald's franchise to a franchisee on Bourbon Street in New Orleans,this is an example of ___________ distribution.

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

The need for reverse channels may arise in all of the following situations EXCEPT

A large food retailer acquiring a cheese factory is an example of:

Traditional channel systems are growing faster than vertical marketing systems.