Marketing, Chapter 15, Exam 1

True
True or False: You are more likely to switch your order when the relative savings are higher, even if the savings are the same dollar amount
marketing channel
a set of interdependent organizations involved in the process of making a product available to the final consumer
False

Without proper distribution, a product is almost guaranteed to fail

True or False: Even without proper distribution, a really good product is most likely to succeed
intermediaries
anything between the manufacturer and the customer; includes wholesalers, retailers
1. Less contacts, so it is more efficient for the customer
2. Less contacts, but the company still has the same amount of customers. Allows the company to train less people and the manufacturers can focus on manufacturing instead of customer service
What are 2 benefits of using intermediaries to reach customers, as opposed to directly linking the customer with the manufacturer? (1 consumer focused, 1 producer focused)
1. intensive distribution
2. exclusive distribution
3. selective distribution
What are three techniques in determines how many stores to put in a geographic area?
intensive distribution
when a firm tries to place its product in as many outlets as possible
Red box
What is an example of intensive distribution?
exclusive distribution
when there is only one retailer in a specified geographical area that carries the firm’s product
Game of Thrones only on HBO
What is one example of exclusive distribution?
1. provides (distinction) points of difference for the retailer
2. No competition for your product within the store because there are often exclusive arrangement such that the retailer carries no competing brands, limiting head to head competition
2 advantages of exclusive distribution
scarcity
In exclusive distribution, retailers can team up with brands to create a sense of quality based on _________
selective distribution
when a firm selects a few retailers in a specific geographical area to carry its products; in between the two extremes, what most companies do
The firm can target different demographics/different target markets
What is an advantage of selective distribution
selective
Which form of distribution density is most common?