Marketing Channels & Distribution Exam 1 Ch. 1

Which term refers to a set of independent organizations involved in the process of making a product or service available for use or consumption?
Marketing Channel
A Marketing channel strategy is a set of activities focused on designing and managing a marketing channel for the purpose of _________?
Improving a firm’s sustainable competitive advantage
A _______ is a channel member that takes the primary role of establishing and maintaining channel links.
Channel Captain
What should most likely be the goal of all marketing channel members?
Satisfying end-users
Which statement is most likely true about a marketing channel system?
Efficient marketing channels reduce distribution costs and increase customer satisfaction
What is the most likely outcome of an ineffective marketing channel strategy?
Limited product reach
Sony produces televisions and computers and sells them through electronics stores. In a marketing channel, Sony would best be described as a _____?
Manufacturer
ElectroInc produces cell phone accessories and sells them to firms such as Apple and Samsung. Apple and Samsung put their own brand names on ElectroInc products before selling them to end-users. Which term best describes ElectroInc?
Private-label manufacturer
What risk does a branded manufacturer most likely face by allocating part of its production capacity to private-label products?
Creating a future competitor
Manufacturers are LEAST likely to use intermediaries to:
Manage production levels
What general term refers to middle channel members in the marketing channel?
Intermediaries
Which of the following tasks would LEAST likely be conducted by a merchant wholesaler?
Producing private-label goods
Audrey works as a manufacturers’ representative for an athletic shoe company. In her position, Audrey is most likely responsible for _____.
Negotiating terms of trade with shoe retailers
Department stores, convenience stores, and warehouse clubs are best categorized as _______.
Retail Intermediaries
According tot he text, what is a new trend taking place among retail intermediaries?
Selling products and services to businesses
Comps-Tech is an information technology firm that handles customer orders and payments for a variety of online retailers. Comps-Tech is most likely a(n) ________.
Specialized intermediary
Tanya recently purchased paper towels, sodas and frozen pizzas at Sam’s Club, a hypermarket. In the marketing channel system, Tanya is best described as a(n)_____.
Downstream Channel Member
All of the following are sorting functions performed by intermediaries EXCEPT________.
Matching buyer product needs to retailer stocks
How do intermediaries most likely create utility for end-users?
Ensuring product availability and assortment
Valu-Mart wants to ensure that its stores are never under- or overstocked with certain products, such as paper towels, sodas, and cereal. Which tool would most likely help Valu-Mart solve this problem?
CRP
Which term refers to reducing the use of intermediaries?
Disintermediation
Which of the following is most likely an example of a firm engaging in disintermediation?
Selling products directly online
The greatest number of contact lines most likely involves manufacturers selling products __________.
Directly to retailers
Which term refers to activities such as physically distributing products, engaging in after-sales service, and handling customer payments?
Channel Functions
Which channel function almost always moves forward from the producer to the consumer?
Promotion
Which channel function almost always moves up the channel from the end-user to the producer?
Payment
All of the following channel functions can move either upward or downward in the marketing channel EXCEPT __________.
Ordering
Which of the following is most likely a true statement about channel functions?
The performance of certain channel functions correlates with other channel functions correlates with other channel functions.
Which of the following is LEAST likely a carrying cost associated with a retailer taking title of a manufacturer’s products?
Integration
Which channel function most likely plays a role in all value-added activities of a marketing channel system?
Information Sharing
Which of the following most likely occurs in the first stage of the marketing channel strategy framework?
Segmenting the market based on end-user’s needs
The benchmarking stage of the marketing channel strategy framework focuses on ________.
Identifying best practices in well-developed systems
Which factor would LEAST likely be considered in the implementation stage of the marketing channel strategy framework?
End-User Segmentation
Which term refers to splitting a market into groups of end-users?
Segmentation
Which term refers to value-added services and products created by channel members and consumed by end-users?
Service Outputs
Martin, a channel manager for an appliance manufacturer, needs to evaluate the importance of each channel function in terms of cost and value. Martin also needs to determine the proportion of each channel function performed by each channel member. Which of the following should Martin most likely use for this task?
Efficiency Template
Which of the following indicates the proportional value added to the total channel’s performance by each channel member?
Normative Profit Share
Katherine, a channel manager with a shoe manufacturer, recently learned that prices in the channel are higher than desired by end-users. Katherine most likely used a(n) ________ to determine this information.
Gap analysis template
All of the following are key channel elements that must be managed to ensure that a channel system runs smoothly EXCEPT ________.
Segments
Which of the following would be the best method for reducing channel conflict?
Applying Channel Power
In the context of a marketing channel, the relationship with an end-user is considered finished once a product or service has been distributed.
False
Channel captains are typically manufacturers of branded products.
True
Since intermediaries usually increase costs for producers and lower value for consumers, a decentralized system of exchange is more efficient than a centralized network.
False
Specialization increases channel efficiency, but it also requires close cooperation and coordination in channel operations.
True
Channel logistics relates to processing and tracking factory goods throughout the marketing channel.
True
Differentiate the 3 general types of intermediaries.
Wholesale, retail, specialized

Wholesale = (distributors, agents, and brokers), sells to channel members such as retailer but not directly to end-users

Retail= (department stores, specialty stores, online, franchises), sell directly to end-users

Specialized= (an advertising agency providing promotion), perform specific functions within channel, not associated with actually selling products

What are the nine universal channel functions? What direction does each function move? Why do some channel functions move in both directions?
functions that move down:
– physical possession
– ownership
– promotion

functions that move up:
– ordering
– payment

functions that move both:
– negotiation
– financing
– risk
– information sharing

Some move both directions because they can benefit both the channel members in being more efficient as a channel to handle consumer demand, and help consumers express their demands in a way that the channel members can improve their ability to supply desired services