Deck 12: Marketing Channels: Delivering Customer Value

Question 1

Judy Smith is the manager of the local McDonald's franchise in Carterville.Recently,the home office did not let her participate in co-op advertising like the other McDonald's restaurants in her district.Now she is irritated and demands fairness.This is an example of horizontal conflict.

Answer 1

False

Question 2

With the success of the Internet,few producers sell through intermediaries today.

Answer 2

False

Question 3

In creating customer value,it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

Answer 3

False

Question 4

Coca-Cola licensing bottlers (wholesalers)in various markets who buy Coca-Cola syrup concentrate and then bottle and sell the finished product to retailers in local markets is an example of the service-firm-sponsored retail franchise system.

Question 5

Mary Kay and Amway sell their products door-to-door,through home and office sales parties,and on the Web.These are examples of indirect channels.

Question 6

The faster the delivery,the greater the assortment provided; and the more add-on services supplied,the more the channel's service level is restricted.

Question 7

The term supply chain may be too limited because it takes a make-and-sell view of the business.

Question 8

These days,almost every large company and many small ones distribute through multiple channels.

Question 9

A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

Question 10

When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity,they are forming a horizontal marketing system.

Question 11

Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

Question 12

It is safe to say that distribution channels are fairly simple behavioural systems in which people and companies interact to accomplish individual company and channel goals.

Question 13

Imaginative distribution systems can be used to gain a competitive advantage.

Question 14

Always Fresh Produce Company has a route selling to more than 100 groceries,schools,and restaurants at wholesale prices.Last week the owners opened up a walk-in discounted consumer produce outlet.Always is now using a multichannel distribution system.

Question 15

Producing a product or service and making it available to buyers requires building relationships not just with customers,but also with key suppliers and resellers in the company's supply chain.

Question 16

In a conventional distribution channel,no channel member has much control over the other members,and no formal means exists for assigning roles and resolving channel conflict.

Question 17

Fender's direct marketing helps both the company and its channel partners.

Question 18

When Sherwin Williams Paint Company has single ownership of integrated,successive stages of production and distribution,it has created a corporate VMS.

Question 19

Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers.

Question 20

One major trend is towards disintermediation.

Question 21

Because distribution activities involve strong trade-offs,decisions by different functions must be coordinated to achieve better overall logistics performance.

Question 22

Supply chain management is managing upstream and downstream value-added flows of materials,final goods,and related information among suppliers,the company,resellers,and final consumers.

Question 23

Most companies see their intermediaries as first-line customers and partners.They practise strong partner relationship management (PRM)to forge long-term partnerships with channel members.

Question 24

The producer and intermediaries need to agree on the terms and responsibilities of each member,including price policies,conditions of sale,territorial rights,and specific services to be performed by each party.

Question 25

Intermodal transportation is combining two or more modes of transportation; there is only a limited number of combinations.

Question 26

In designing its marketing channel,Chairs for Every Occasion has moved from a make-and-sell view of its business,which focused on productive inputs and factory capacity as a starting point for marketing planning,to a sense-and respond view,which begins instead with the needs of target customers.With this new view,Chairs for Every Occasion is developing its ________.

Question 27

The choice of transportation carriers affects the pricing of products,delivery performance,and condition of the goods when they arrive-none of which will affect customer satisfaction.

Question 28

_______________ purchase most of the goods sold by producers.

Question 29

A growing number of firms now outsource some or all of their logistics to third-party logistics (3PL)providers.

Question 30

A ___________________ is when suppliers,distributors,and customers partner with each other to improve the performance of the entire system.

Question 31

The set of firms that supply the raw materials,components,parts,information,finances,and expertise needed to create a product or service are called _______________.

Question 32

Distribution systems are relatively consistent from country to country,making it easy for international marketers to design channels.

Question 33

____________ are often involved in distribution channel decisions with other firms.Examples include contracts or relationships with channel partners.

Question 34

In managing inventory,firms must balance the costs of carrying larger inventories against resulting sales and profits.

Question 35

The supply chain that suggests a sense and respond view of the market is also called the________.

Question 36

Under the strategy of exclusive distribution,a seller allows only certain retail outlets to carry its products.

Question 37

Generally speaking,a company's marketing channel objectives are influenced by the level of customer service sought,the nature of the company,its products,its marketing intermediaries,its competitors,and the environment.

Question 38

Every ____________ is affected by a company's channel decisions.

Question 39

Canadian Tire Corporation Limited knows that supply chain management with a focus on sustainability is key to the company's long-term success.

Question 40

Intensive distribution seeks many outlets in a market,while selective distribution seeks only one outlet in a given market area.

Question 41

In marketing terms,the ___________ of a channel is indicated by the number of intermediary levels.

Question 42

Steve's Physco Skates sells its products to Walmart,who then sells them to the consumer.This is an example of a(n)________.

Question 43

_____________ are matched by intermediaries.

Question 44

A distribution channel is more than a collection of firms connected by various flows; it is a(n)________ in which people and companies interact to accomplish individual,company,and channel goals.

Question 45

When one or more ________ producers,wholesalers,and retailers are linked,it is an example of a conventional distribution channel.

Question 46

When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band,they are in a ________ conflict.

Question 47

Which of the following is an example of horizontal channel conflict?

A) Managers of two separate Holiday Inns disagreeing over what constitutes poor service
B) United Airlines competing with Northwest Airlines for customers
C) Disgruntled factory workers complaining about a small pay raise
D) The BMW dealership in Fort Wayne complaining that the automaker is behind schedule
E) Shoppers Drug Mart competing with Pharmaplus for seniors

Question 48

Gaps in _______________ are bridged by channel members,and this is the value these members provide.These gaps separate goods and services from those who would use them.

Question 49

Many experts agree that marketing intermediaries need to change the assortment of products made by producers into the assortment of products wanted by ________.

Question 50

The ________ conflict occurs among firms at the same level of the channel.It is rarer than the _____________ conflict,which occurs between different levels of the same channel.

Question 51

From a producer's perspective,________ and greater channel complexity results from a greater number of channel levels.

Question 52

In fulfilling a completed transaction,which of the following is a key function that intermediaries play?

A) Physical distribution
B) Promotion
C) Production
D) Risk avoidance
E) Good disposal

Question 53

Intermediaries ___________________.

Question 54

The various flows that connect institutions include physical flow,flow of ownership,payment flow,information flow,and ________ flow.

Question 55

Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards.Joanie is experiencing ________.

Question 56

A(n)_____________ consists of one or more independent producers,wholesalers,or retailers that seek to maximize their own profits-even at the expense of profits for the channel as a whole.

Question 57

An advantage of a channel of distribution over selling directly to consumers is that each channel member plays a(n)________ in the channel.

Question 58

By working with intermediaries,some firm have discovered that they can offer more to customers than they can achieve on their own.This advantage is called ______________.

Question 59

Staples Office Supply opened an online store that created competition with many of its dealers.The corporate office created a ________ conflict.

Question 60

Conventional channels have lacked the leadership to ________.This is true from a historical perspective at least.

Question 61

An example of a ________ system is a vertical marketing system (VMS).

Question 62

In many industries,traditional intermediaries are dropping by the wayside.Which of the following represents an innovative new type of channel intermediary?

A) Intermodal transportation
B) Super warehouses
C) Brick-and-mortar retailers
D) Online music download services
E) Voluntary franchises

Question 63

Which of the following is an example of a multichannel distribution system?

A) WalMart locating to several countries
B) Mountain Equipment Co-op's catalogue and retail store sales
C) Avon's door-to-door distribution
D) Starbucks' location inside book stores
E) A hotel providing guest privileges at a health spa across the street

Question 64

Designing a channel system calls for analyzing consumer needs,setting channel objectives,________,and evaluation.

Question 65

Companies using a VMS can integrate the entire distribution chain under ________.

Question 66

Due in a large part to advances in technology,________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers,or radically new types of channel intermediaries are emerging to displace traditional ones.

Question 67

When McDonald's offers its products inside a Walmart store,it is following a(n)________.

Question 68

Companies should state their channel objectives in terms of targeted levels of ________.

Question 69

Hybrid marketing systems are also called ________.

Question 70

Which of the following are the three major types of vertical marketing systems?

A) Corporate, contractual, and chain
B) Contractual, corporate, and independent
C) Contractual, corporate, and administered
D) Administered, independent, and franchised
E) Contractual, corporate, and task

Question 71

Which of the following is an example of a manufacturer-sponsored retailer franchise system?

A) Fast-food restaurants, such as McDonald's and Burger King
B) Starbucks operating within Target stores
C) Ford and its network of independent franchised dealers
D) Licensed bottlers that bottle and sell Coca-Cola to retailers
E) Motels, such as Holiday Inn and Ramada Inn

Question 72

When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system,Netflix was following the trend of ________.

Question 73

The coordination and conflict management among the independent members of the channel are attained through ________ with a contractual VMS.

Question 74

When two or more companies at one level join together to develop a new marketing opportunity,we call this a _____________

Question 75

To increase a channel's service level,it must provide a greater assortment of products,more add-on services,and ________.

Question 76

Which of the following should be the first step in designing a marketing channel?

A) Identifying channel objectives
B) Identifying what consumers want from the channel
C) Analyzing channel alternatives
D) Evaluating intermediaries
E) Exploring international opportunities

Question 77

A(n)_________ is the most common type of contractual agreement in business

Question 78

Channel members should be evaluated using all of the following criteria except __________.

Question 79

Leadership is assumed through the size and power of one or a few dominant channel members in a(n)___________ rather than common ownership or contractual ties.

Question 80

The major disadvantage of a multichannel system is that it is harder to control and it can generate ________.