Exam 10: Place and Development of Channel Systems

Bulk-breaking means separating products into grades and qualities desired by different target markets.

The terms "direct marketing" and "direct distribution" mean the same thing.

Management contracting is a relatively low risk way of entering foreign markets, since no commitment is made to fixed facilities.

A computer manufacturer runs training programs for its "cooperating" retailers' salespeople, as well as providing newspaper advertising layouts, point-of-purchase materials, and sales manuals. This is an example of:

AsianArt4U.com brings together the art produced by many different Asian painters and sculptors -- and offers them for sale on its website. This is an example of

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:

______________ means selling a product through only one wholesaler or retailer in a particular geographic area.

Which of the following is a function that an intermediary is likely to provide for customers?

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.

In international markets, a firm can sell its management and marketing know-how while letting locals own the production and distribution facilities by using

Exclusive distribution is more likely to involve a more formal arrangement than is selective or intensive distribution.

A firm that has a lot of "management know-how," but expects production problems in a foreign market, might be wise to use management contracting.

A producer using several competing channels to distribute its products to its target market is using ______________ distribution.

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:

Compared to intensive distribution, selective distribution gives a producer a greater opportunity for profit but usually makes it more difficult for intermediaries to make a profit.

Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.

Strategy "Place" decisions would NOT include:

A channel of distribution is a series of firms or individuals participating in the flow of products from the producer to the consumer.

If a producer agrees to enter into a management contracting arrangement with a zinc mining operation in Chile,