Deck 15: Designing and Managing Integrated Marketing Channels

Question 1

Companies that search for customers and may negotiate on the producer's behalf but do not take title to the goods are called

A) retailers.
B) merchants.
C) marketers.
D) agents.
E) facilitators.

Answer 1

D

Question 2

A ________ strategy involves the manufacturer using advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it.

A) provide
B) promote
C) retail
D) push
E) pull

Answer 2

E

Question 3

Your product has low brand loyalty in its category; brand choice is often made by the consumer in the store, often at the very moment of purchase. Which promotion strategy would hold the greatest opportunity for incremental sales for your product based upon the consumer criteria above?

A) push
B) pull
C) branding
D) hybrid
E) channel

Answer 3

A

Question 4

A marketing channel system is the particular set of ________ employed by a firm. Decisions about the marketing channel system are among the most critical facing a firm.

A) management channels
B) marketing channels
C) advertising channels
D) finance channels
E) distribution/warehouse channels

Question 5

A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place, and ________ gaps that separate goods and services from those who need or want them.

A) retail
B) policies
C) buyers
D) possession
E) consumers

Question 6

Transportation companies, independent warehouses, banks, and advertising agencies assisting in the distribution process but neither take title to goods nor negotiate purchases or sales are called

A) merchants.
B) agents.
C) brokers.
D) facilitators.
E) marketers.

Question 7

Today customers expect ________ to work smoothly. The ability to order the product online and pick it up at a convenient retail location is an example of this.

A) habitual shopping
B) demand chain planning
C) channel integration
D) value networking
E) push strategy

Question 8

A ________ strategy involves the manufacturer using its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users.

A) promote
B) provide
C) channel
D) pull
E) push

Question 9

A supply chain view of a firm sees markets as destination points and amounts to a linear view of the flow. The company should first think of the target market, however, and then design the supply chain backward from that point. This view is called

A) demand chain planning.
B) value network.
C) channel integration.
D) customer planning.
E) demand retail planning.

Question 10

A company selling exercise equipment may need to establish three channels of distribution one channel to sell the product to retailers and distributors (a sales channel); a second channel to deliver the product (a delivery channel), and a ________ channel to ensure that the products are used correctly after the sale.

A) speed
B) customer's
C) service
D) direct
E) dealer

Question 11

Storage and movements functions, title functions, and communication functions are example of ________ flow of activity from the company to the customer.

A) lateral
B) forward
C) sidewise
D) upward
E) backward

Question 12

A value network includes a firm's suppliers and its suppliers' suppliers, and its immediate customers and their end

A) shoppers.
B) customers.
C) marketers.
D) procedures.
E) retailers.

Question 13

One of the chief roles of marketing channels is to convert potential buyers into profitable

A) sales.
B) customers.
C) marketers.
D) orders.
E) consumers.

Question 14

When is a pull strategy appropriate?

A) when there is low brand loyalty
B) when consumers are able to perceive differences between brands
C) when brand choice is made in the store
D) when it is a low involvement purchase
E) when the product is an impulse item

Question 15

Your product enjoys high brand loyalty and high involvement in the category. Your product has perceived differences that consumers recognize between brands. Your product is one of the few that its consumers choose before selecting the retail store/Web site to purchase the product. Which promotion strategy would hold the greatest opportunity for incremental sales for your product based upon the consumer criteria above?

A) push
B) hybrid
C) branding
D) missionary
E) pull

Question 16

Intermediaries normally achieve ________ in making goods widely available and accessible to target markets. Through their contact, experience, specialization, and scale of operation, intermediaries usually offer the firm more than it can achieve on its own.

A) superior contacts
B) superior use of technology
C) superior distribution channels
D) superior effectiveness and efficiency
E) superior products

Question 17

Intermediaries who buy, take title to, and resell the merchandise are called

A) agents.
B) retailers.
C) merchants.
D) facilitators.
E) marketers.

Question 18

The question regarding the various channel functions is not whether or not they need to be performed but who is to perform them. All channel functions have three things in common. Which of the following channel functions can result in lowered producer costs and prices?

A) They use up scare resources.
B) They can often be performed better through specialization.
C) They provide for storage and transportation.
D) They can be shifted among channel members.
E) They aid in channel integration.

Question 19

When managing a hybrid channel, the channel manager must ensure that these different channels work seamlessly in the consumer's opinion. When the consumer can order a product online and pick it up at the nearby retail store or be able to return the Internet ordered product to the retail store, we state that the channel has

A) channel strong core operations.
B) channel cooperation.
C) channel commiting to TQM.
D) channel integration.
E) channel synergy.

Question 20

Using the push strategy is most appropriate when ________.

A) consumers are able to perceive differences between brands
B) the product being sold is an impulse item
C) there is high brand loyalty for the product
D) the product is a high involvement purchase
E) consumers choose the brand before they go to the store

Question 21

A channel alternative is described by three elements: the types of available business intermediaries, the number of intermediaries needed, and the

A) depth of commitment of each channel member.
B) size of each channel member.
C) terms and responsibilities of each channel member.
D) area of expertise of each channel member.
E) quality of the channel member organization.

Question 22

One of the control issues of using a sales agency as a channel partner is that the sales agency is an independent firm seeking to ________ its profits.

A) maximize
B) promote
C) share
D) lower its costs and
E) increase sales and

Question 23

In designing the marketing channel, the marketer must understand the service output levels desired by the target customers. Channels produce five service outputs. Which of the following considers the assortment provided by the marketing channel?

A) lot size
B) service back-up
C) product variety
D) waiting and delivery time
E) spatial convenience

Question 24

When a company makes the statement "wherever there is a cash transaction" as its distribution policy, they are emphasizing a(n)

A) intensive distribution.
B) maximum distribution.
C) blanket distribution.
D) selective distribution.
E) exclusive distribution.

Question 25

Your firm sells industrial cleaning products and services costing between $2000 and $5000. The cost per transaction has been estimated as $500 (using field sales people), $200 (using distributors), $50 (using telesales), and $10 (using the Internet). This demonstrates that each channel alternative needs to be evaluated against ________ criteria.

A) economic
B) vertical
C) adaptive
D) distribution
E) control

Question 26

After a company has chosen a channel alternative, individual intermediaries must be ________, trained, motivated, and evaluated.

A) purchased
B) selected
C) induced
D) compensated
E) researched

Question 27

The sales of your product are low compared to your competition. The decision facing you is whether to use a sales agency (brokers, manufacturers' representatives) or hire a field sales force. The fixed costs of engaging a sales agency are lower than those of establishing a company sales force, but costs rise faster through an agency. When figuring out sales and costs, the intersection of the costs between sales agencies and sales force (Sb) means that

A) the company's costs escalate.
B) the sales force is the better choice for any sales below this point.
C) the sales agency is the better choice for any sales above this point.
D) the sales agency is the better choice for any sales below this point.
E) both choices are equally good choose the one that you are most comfortable with.

Question 28

The main elements in the "trade-relations mix" are price policies, conditions of sale, ________, and specific services to be performed by each party.

A) competitive policies
B) distribution policies
C) credit policies
D) service policies
E) territorial rights

Question 29

In rolling out your company's newest product, you decided to use manufacturers' representatives as your sales agents. Part of your ________ was to define the distributors' territories.

A) conditions of sale
B) pricing policies
C) "trade-relations mix"
D) product specs
E) franchise agreements

Question 30

________ distribution consists of the manufacturer placing his goods and services in as many outlets as possible.

A) Selective
B) Scattered
C) Exclusive
D) Intensive
E) "Shotgun"

Question 31

A ________ channel consists of a manufacturer selling directly to the final customer.

A) zero-level
B) three-level
C) one-level
D) two-level
E) multiple level

Question 32

When the producer wants to maintain control over the service level and outputs offered by the resellers it most likely will use ________ distribution.

A) competitive
B) intensive
C) exclusive
D) extensive
E) selective

Question 33

________ deals between suppliers and retailers such as Disney's Consumer Products deal with Walmart are becoming a mainstay for specialists looking for an edge in a business world that is increasingly driven by price.

A) Selective
B) Intensive
C) Exclusive
D) Blanket
E) Proprietary

Question 34

Channel objectives should be stated in terms of ________ output levels.

A) partner
B) efficient
C) budget
D) affordable
E) service

Question 35

Companies deciding on the number of intermediaries to use at each channel level have three strategies available to them. They can use exclusive distribution, ________ distribution, and intensive distribution.

A) competitive
B) extensive
C) self-selecting
D) selective
E) collective

Question 36

Manufacturers are constantly tempted to move from exclusive or selective distribution to more intensive distribution in order to ________ coverage and sales.

A) leave the market
B) decrease
C) enter the market
D) increase
E) control

Question 37

It is important for the company to select their channel members carefully because to the customers, the channels are

A) agents.
B) independent entrepreneurs.
C) expensive.
D) the company.
E) untrustworthy.

Question 38

Designing a marketing channel system involves analyzing customer needs, ________, identifying major channel alternatives, and evaluating major channel alternatives.

A) establishing channel costs
B) establishing channel partners
C) establishing channel members
D) establishing channel objectives
E) establishing channel budgets

Question 39

Each channel alternative needs to be evaluated against economic, control, and ________ criteria.

A) timing issues
B) adaptive
C) manufacturing
D) financial
E) delivery

Question 40

Which element in the trade-relations mix refers to payment terms and producer guarantees?

A) conditions of sale
B) territorial rights
C) specific services
D) channel conflict
E) price policies

Question 41

Lee Valley Tools manufactures and sells tools for serious woodworkers and gardeners. In addition to selling through its websites and catalogues, Lee Valley has only 15 retail outlets across Canada. Lee Valley believes that this ________ distribution strategy allows them to get the right tool to the right customer the first time around.

A) selective
B) franchise
C) exclusive
D) horizontal
E) intensive

Question 42

Which of the following is NOT true about integrated marketing channel system?

A) strategies and tactics of one channel reflect those of other channel.
B) increased market coverage.
C) more control and co-operation.
D) lower channel cost.
E) more customized selling.

Question 43

A ________ consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

A) distributor VMS
B) conventional channel
C) contractual VMS
D) administered VMS
E) vertical marketing system

Question 44

When Kodak coordinates successive stages of production and distribution and receives cooperation from major retailers in connection with displays, shelf space, promotions, and pricing policies due exclusively to Kodak's "market power" we call this

A) administered VMS.
B) administered HMS.
C) contractual VMS.
D) corporate VMS.
E) conventional marketing channel.

Question 45

________ is generated when one channel member's actions prevent the channel from achieving its goal.

A) Channel power
B) Channel advertisement
C) Channel coordination
D) Channel risk
E) Channel conflict

Question 46

Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity it is called a

A) horizontal marketing system.
B) financial marketing system.
C) vertical marketing system.
D) cross-marketing system.
E) coop marketing system.

Question 47

A conventional marketing channel comprises an ________, wholesaler(s), and retailer(s) each acting in his own self-interest.

A) merchant wholesalers
B) brokers
C) manufacturing representatives
D) independent producer
E) manufacturing agents

Question 48

As a recent college graduate, you dream of opening up your own business. You have explored franchising. In fact, one of the company's that you are strongly interested in is a service organization (fast food) that has a whole system designed to bring its service efficiently to consumers. This is an example of

A) retailer cooperatives.
B) service firms-sponsored retailer franchise.
C) national retailer.
D) wholesaler-sponsored voluntary chains.
E) manufacturer-sponsored retailer franchise.

Question 49

Regarding distribution systems, one of the most difficult decisions that a firm must make at some time is whether to ________ the channel strategy.

A) scrap
B) discontinue
C) decrease members in
D) increase members in
E) revise

Question 50

________ occurs when channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals.

A) Channel aspirations
B) Channel advertisement
C) Channel cooperation
D) Channel conflict
E) Channel coordination

Question 51

Contractual VMSs now constitute one of the most significant developments in the economy and come in three types. Which of the following is a type of contractual VMS?

A) specialty stores
B) vending machines
C) catalog stores
D) kiosks stores
E) franchise organizations

Question 52

________ means conflict between different levels within the same channel.

A) Vertical channel conflict
B) Multichannel conflict
C) Upwards channel conflict
D) Circular channel conflict
E) Horizontal channel conflict

Question 53

In competitive markets with low entry barriers, the optimal channel structure will inevitably ________ over time.

A) increase
B) stay the same
C) harden
D) change
E) become cumbersome

Question 54

________ occurs when a single firm uses two or more marketing channels to reach one or more customer segments.

A) Exclusive marketing
B) Diversified marketing
C) Multichannel marketing
D) Multimarket marketing
E) Integrated marketing

Question 55

________ involves conflict between members at the same level within the channel.

A) Multichannel conflict
B) Lateral channel conflict
C) Circular channel conflict
D) Horizontal channel conflict
E) Vertical channel conflict

Question 56

Which of the five types of power available to the producer to elicit cooperation from channel members involves offering intermediaries an extra benefit for performing specific functions?

A) coercive
B) expert
C) legitimate
D) referent
E) reward

Question 57

The emergence of rental car counters, hair salons, banks, and dry cleaners found in such stores as Walmart, grocery retailers, and others is an example of ________ marketing systems.

A) partner
B) vertical
C) integrated
D) multichannel
E) horizontal

Question 58

A ________ comprises the producer, wholesaler(s), and retailers(s) acting as a unified system.

A) vertical marketing system
B) distribution system
C) administered system
D) distributor relationship
E) corporate VMS

Question 59

________ can be defined as the ability to alter channel members' behaviour so that they take actions they would not have taken otherwise.

A) Channel power
B) Channel concerns
C) Channel relationships
D) Superior products
E) Marketing

Question 60

By adding more channels, companies can gain three important benefits. First, they can increase their market coverage, second, they can lower channel costs by moving to a lower cost channel, and third they can provide

A) effective dollar costs/sale.
B) more customized selling.
C) increased volume of sales.
D) increased volume of potential customers.
E) increased exposure.

Question 61

HP may sell personal computers to large accounts through its own sales force, but its licensed dealers may also be trying to sell to large accounts. The major reason for this conflict is ________.

A) goal incompatibility
B) differences in perception
C) dependence on the manufacturer
D) dual compensation
E) unclear roles and rights

Question 62

As a marketing manager, for a national company that uses brokers as your field sales agents, you suggest to your senior management the creation of an "advisory team" composed of retailers, food brokers, sales managers, and inside marketing and management personnel. Your objective is to win support of the leaders of another organization by including them in planning discussions. You are advocating what type of conflict management resolution?

A) mediation
B) co-optation
C) dependence
D) arbitration
E) diplomacy

Question 63

Consumer surveys suggest that one of the most significant inhibitors of online shopping is the absence of ________.

A) pleasurable experiences
B) competitive prices
C) adequate technical information
D) after-sales service
E) facilities to compare offerings

Question 64

________ means resorting to a neutral third party who is skilled in conciliating the two parties' interests.

A) Arbitration
B) Mediation
C) Diplomacy
D) Negotiation
E) Co-optation

Question 65

________ exists when the manufacturer has established two or more channels that sell to the same market.

A) Broad channel conflict
B) Vertical channel conflict
C) Horizontal channel conflict
D) Circular channel conflict
E) Multichannel conflict

Question 66

________ is an effort by one organization to win the support of the leaders of another organization by including them in advisory councils, board of directors, and the like.

A) Diplomacy
B) Co-optation
C) Superordination
D) Arbitration
E) Mediation

Question 67

M-commerce refers to ________.

A) the use of mass media communications to attract customers
B) conducting business using mobile channels
C) providing mobile and on-site services to customers
D) the use of a specific medium to communicate with prospects
E) using the Internet as a medium for doing business

Question 68

Harley-Davidson's entry into the Web for their parts and accessory business, called for them to "protect" their retailers by referring customers to the local Harley-Davidson dealer. One additional strategy available to firms wishing to protect their channels of distribution yet capitalize on Internet sales is to

A) sell identical brands/products.
B) offer offline partners higher commission rates.
C) not allow customers to order through/off of the Web site.
D) offer fewer services to Web customers than retail customers.
E) offer online partners higher commission rates.

Question 69

Which of the following is one of the most significant inhibitors of online shopping?

A) easy-to-navigate websites
B) lack of social interaction
C) lack of selection
D) ease of ordering
E) credit card security

Question 70

For established firms, a strategy for selling both through established intermediaries and the Internet includes which of the following?

A) Increase prices for Internet purchases.
B) Offer different promotional allowances over the Internet.
C) Do not do anything different.
D) Offer different brands over the Internet.
E) Focus on 1-800 sales.

Question 71

Many traditional companies worry that adding an e-commerce channel creates the threat of a ________ from retailers, brokers, agents, and other intermediaries.

A) cooperation
B) support
C) backlash
D) competition
E) refusal

Question 72

There are several mechanisms for effective conflict management. Which of the following occurs when channel members come to an agreement on the fundamental objective they are jointly seeking?

A) mediation
B) diplomacy
C) co-optation
D) litigation
E) adoption of superordinate goals

Question 73

Which of the following is the most complete and accurate description of a pure e-Business company?

A) These firms' business models are based on advertising revenue.
B) These are companies that launch a Web site without any previous existence as a firm.
C) These are established companies that have an online site for selling products.
D) These companies get paid every time a user visits their Web site.
E) These companies sell online space to other Web sites and are paid for the service.

Question 74

________ means that the company or site offers to transact or facilitate the selling of products or services online.

A) E-commerce
B) E-purchasing
C) E-mailing
D) E-marketing
E) E-business

Question 75

Disputes between manufacturers and their distributors over the optimal advertising strategy is an example of which causes of channel conflict?

A) differences in perception
B) dependency
C) goal incompatibility
D) unclear goals and rights
E) channel power usage

Question 76

________ are companies that have launched a Web site without any previous existence as a firm.

A) Dot.com's
B) Internet firms
C) E-tailers
D) Pure e-businesses
E) Search engines

Question 77

The largest of the B2B market maker is Alibaba. Which country is Alibaba homegrown?

A) Russia
B) The US
C) Canada
D) India
E) China

Question 78

In deciding to take your product to market, one of the first considerations has to be your channel or channels of distribution. If you decide to sell your product a) in exclusive franchisee operations and b) to mass distributors/retailers concurrently, to the same target market, this may lead to a ________.

A) vertical channel conflict
B) multichannel conflict
C) good business marketing
D) horizontal channel conflict
E) rapid market penetration

Question 79

A soft drink concentrate producer makes 20 percent margin on its regular soda and 25 percent on its diet version of the same drink. The soft drink bottlers, however, are required to sell both the regular and diet versions to the retailers at the same price. This is a classic example of

A) channel coordination.
B) unclear roles and rights.
C) channel conflict.
D) direct conflict.
E) goal incompatibility.

Question 80

When conflict is chronic or acute, it can be resolved using ________, which means resorting to a neutral third party skilled in conciliating the two parties' interests.

A) diplomacy
B) mediation
C) laddering
D) reciprocity
E) arbitration