Exam 10: Place and Development of Channel Systems

Roscoe Hardware carries stock on the complete line of Ever-Green Push Lawn Mowers. Its competitor down the street sells the same mowers at a special price by special order but does not carry any inventory. This situation creates

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

Intensive distribution is often very appropriate for:

Distribution costs can be very low for digital products because there is often no physical good to distribute.

Which of the following is true of direct distribution?

The desirability of a common "product-market commitment" is based on the idea that:

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. These three tennis ball producers all rely on retailers to reach consumers who want to buy only a few balls at a time. Apparently they all think that this is an efficient way to

Accumulating involves collecting products from many small producers--often as a way to get lower transportation rates.

Which of the following statements about Place is FALSE?

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:

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:

Traditional channels of distribution

Selling products manufactured in the United States to foreign customers--often without any product changes--is called:

Horizontal arrangements among competing retailers, wholesalers, or producers to limit sales by customer or territory have consistently been

______________ means selling a product only through those intermediaries who will give the product special attention.

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

"Place" decisions:

"Ideal market exposure" means selling a product through all intermediaries willing to stock and sell it.

Place decisions are easier to change in the short-run than Product, Price, and Promotion decisions.

"Exclusive distribution" means selling through: