Exam 11: Place and Development of Channel Systems

Horizontal marketing systems are channel systems in which the whole channel focuses on the same target market at the end of the channel.

To minimize its own risks, the Boomtown Petroleum Corp. of Houston, Texas, operates a South American oil refinery that is owned by residents of that country. Boomtown is engaged in an activity known as:

If a producer has a technically superior and expensive product--which has achieved brand preference--and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:

Intermediaries are needed MOST when the desired degree of market exposure is:

______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.

Which of the following is the easiest way for a firm to enter foreign markets?

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting his product he probably should use

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

The Internet gives large firms access to repeat customers, but it does little for small firms trying to develop an initial base of customers.

Intensive distribution is

A channel captain helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

Which of the following is NOT a true statement about traditional channel systems?

A firm acquiring another firm at a different level of activity within a channel of distribution is called:

When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of:

Distribution costs are very low for digital products because there's no physical good to distribute.

InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This "regrouping activity" is called:

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

A wholesaler might help a producer by reducing the producer's need for market research.

The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create?

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