Exam 10: Place and Development of Channel Systems

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

Accumulating involves dividing larger quantities into smaller quantities as products get closer to the final market.

Which of the following best illustrates "discrepancies of quantity"?

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. A wholesaler for American Tennis Ball is likely to perform which of the following regrouping activities:

_____ distribution is commonly used for convenience products and business supplies.

A good "channel captain" knows that:

Channels of distribution:

Which of the following statements about exporting is NOT TRUE?

"Discrepancies of quantity" means:

"Discrepancies of assortment" means:

Exporting is sometimes just a way for a firm to get rid of surplus products.

A disadvantage of direct-to-customer channels is that

Manufacturers are sometimes forced to use "multichannel distribution" because their present channels are doing a poor job or are not reaching some potential customers.

In a _____ the whole channel focuses on the same target market at the end of the channel.

Some sporting goods manufacturers do not make a "full line" of equipment. So the Sports World retail chain carefully selects the brands of several manufacturers to sell. This regrouping activity is called:

A manufacturer prefers to produce and ship in large quantities to take advantage of economies of scale. Final consumers often want to purchase in small quantities. This difference between the producer and consumer is a:

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. National Tennis Ball's channel arrangement:

In _____ channel systems, the channel members agree by contract to cooperate with each other.

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.

In "traditional channel systems," the channel members: