Assignment: Exercise 14.1 (Practice)

One type of conflict that presents unique challenges results from activities in the gray market. Goods are produced for overseas markets but find their way into the domestic marketplace at reduced prices, or unlicensed goods are sold overseas by unauthorized foreign distributors. Which of the statements below is true of the gray market? Select the best answer. Gray markets are unique to the United States' marketplace. Gray markets are limited by product licensing agreements. Other countries aside from the United States also have gray markets.

Other countries aside from the United States also have gray markets. Gray markets are not unique to the United States; many American electronic products not yet licensed for sale in some Asian countries are currently being sold by unauthorized foreign distributors.

Marketers have developed three categories of vertical marketing systems: --contractual systems, --corporate systems, and --administered systems. Match the description of the vertical marketing system (VMS) with its identifier. a dominant channel member is powerful enough to influence and coordinate operation of the marketing channel even though it has no ownership at stake

administered market system

Marketers have developed three categories of vertical marketing systems: --contractual systems, --corporate systems, and --administered systems. Match the description of the vertical marketing system (VMS) with its identifier. marketing channel activities are coordinated through formal agreements among participants, for the mutual benefit of each

contractural marketing system

A marketing channel, also called a ____ channel, is one critical component of a distribution strategy.

distribution

Marketers are concerned with intensity of distribution; that is, how many intermediaries will distribute the goods in a particular market. marketing costs are limited because the manufacturer deals with a smaller number of accounts, but the manufacturer must be careful of potential legal implications --intensive distribution --selective distribution --exclusive distribution

exclusive distribution

Marketers are concerned with intensity of distribution; that is, how many intermediaries will distribute the goods in a particular market. items with wide appeal are distributed through as many channels as are available in a trade area --intensive distribution --selective distribution --exclusive distribution

intensive distribution

Most marketing channels involve at least one ____ or middleman, but the simplest marketing channel is a direct channel.

intermediary

Marketing channels provide the means by which goods and services flow from the ____ to the consumer or business user.

producer

Marketers are concerned with intensity of distribution; that is, how many intermediaries will distribute the goods in a particular market. the manufacturer will often provide training and assistance to the limited number of dealers it chooses to distribute its product --intensive distribution --selective distribution --exclusive distribution

selective distribution

As a member of the marketing team for a manufacturing company, you need to be familiar with methods that are available to your company to facilitate communication about and movement of your products and goods. Your company is facing some logistics and supply chain challenges and you have been asked to help find solutions for them. Fill in the table below by dragging and dropping the logistics or supply chain management approach to the problem that it can help to solve. your company wants to improve and streamline transportation an warehousing functions, but does not yet possess the specialized knowledge and expertise needed to do that

third party logistics firms (3PL)

Unit 4: Marketing Products, Services, and Distribution Competency 3061.1.4: The graduate develops marketing strategies for products, services, and marketing channels.

Chapter 14 Learning Objectives 1. Describe the role of the marketing channels in marketing strategy. 2. Describe the types of channels that use marketing intermediaries. 3. Describe the types of distribution intensity. 4. Describe the concepts of channel management, conflict, and cooperation. 5. Describe a vertical management system. 6. Identify the major elements of a physical distribution system.

You are one member of the marketing team for a wine distributor who sells exclusively through your own chain of high-volume shops. Your team wants to explore other available marketing channels, including sales over the Internet and product placement in specialty retailers. In order to come to a consensus, you want to outline some basic questions regarding distribution channels and present them to the team for discussion. Select all of the questions that should be included in this discussion. Will selling at other retail outlets diminish control over marketing the product? How will exploring new distribution channels affect relationships with current intermediaries? What restrictions exist for shipping to communities that ban the sale of alcohol? How many intermediaries are necessary for adequate market coverage?

How many intermediaries are necessary for adequate market coverage? Your choice of market channel strategy will be influenced by the desired distribution intensity, that is, how intensely you want to distribute your product or are able to distribute a product with limited appeal, such as, alcoholic beverages.

You want to be your own boss but you are not willing to risk starting your own business from scratch. You are considering becoming a franchisee and you sit down to determine if franchising would be more of a risk for you or a benefit to you. Decide if each of the characteristics below is a risk or benefit of franchising. you do not have expertise operating business, but you have a good work ethic and determination to make a business operation work

benefit

You want to be your own boss but you are not willing to risk starting your own business from scratch. You are considering becoming a franchisee and you sit down to determine if franchising would be more of a risk for you or a benefit to you. Decide if each of the characteristics below is a risk or benefit of franchising. you do not have much money to invest upfront but you have a very good credit rating

benefit

You want to be your own boss but you are not willing to risk starting your own business from scratch. You are considering becoming a franchisee and you sit down to determine if franchising would be more of a risk for you or a benefit to you. Decide if each of the characteristics below is a risk or benefit of franchising. you have a connection to a particular franchise, based on good family experiences there

benefit

Marketers have developed three categories of vertical marketing systems: --contractual systems, --corporate systems, and --administered systems. Match the description of the vertical marketing system (VMS) with its identifier. a simple business manufacturers the product and owns the retail centers that sell the product to the public. it does not have to depend on anyone else to produce or sell its goods

corporate marketing system

As a member of the marketing team for a manufacturing company, you need to be familiar with methods that are available to your company to facilitate communication about and movement of your products and goods. Your company is facing some logistics and supply chain challenges and you have been asked to help find solutions for them. Fill in the table below by dragging and dropping the logistics or supply chain management approach to the problem that it can help to solve. the manufacturing company for which you work want to automate management so that it is accessible by all the organization's business functions

enterprise resource planning system (ERP)

You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You are concerned, however, that the negative aspects of direct selling outweigh the positive. Which of the following is a negative aspect of direct selling that you must mitigate in some way to be successful? products are presented at convenient times for customers products are presented at convenient locations for customers direct selling is a less expensive form of retailing customers get personal attention may be more expensive and time-consuming than using an intermediary

may be more expensive and time-consuming than using an intermediary Direct channels are not always practical or efficient; they are often more expensive and time-consuming than using a marketing intermediary.

You work for a food processing plant that manufactures corn tortillas. You have been asked to review the activities of upstream management to determine if costs can be cut in that area. Which activities listed below will be your concern? Select all that apply. monitoring the percentage of waste of dehusked corn in the warehouse and storage silos checking the feasibility of raising the price at which corn tortillas are sold to your business customers investigating the possibility of diversifying into producing not only corn tortillas but flour tortillas as well. contacting the farming cooperative to negotiate the price of corn for your upcoming contract decreasing the cost resulting from returns due to improper handling and packaging of corn tortillas

monitoring the percentage of waste of dehusked corn in the warehouse and storage silos How much of your raw material (the dehusked corn that is stored in anticipation of production) is lost to waste is something you will be concerned with as part of the upstream management of the supply chain. Upstream management is concerned with procuring and managing raw materials, inbound logistics, and warehousing and storing raw materials to be used for production

As a member of the marketing team for a manufacturing company, you need to be familiar with methods that are available to your company to facilitate communication about and movement of your products and goods. Your company is facing some logistics and supply chain challenges and you have been asked to help find solutions for them. Fill in the table below by dragging and dropping the logistics or supply chain management approach to the problem that it can help to solve. the business is growing so quickly that your company needs to reduce the human effort and error involved in managing inventory (uncaring theft and breakage) and keeping track of fixed assets

radio frequency identification (RFID)

Reverse channels involve the return of goods to their producers, for example, by ____ or recall.

recycling

You want to be your own boss but you are not willing to risk starting your own business from scratch. You are considering becoming a franchisee and you sit down to determine if franchising would be more of a risk for you or a benefit to you. Decide if each of the characteristics below is a risk or benefit of franchising. you like the feeling of being a business owner, independently making the decisions you think are best

risk

You want to be your own boss but you are not willing to risk starting your own business from scratch. You are considering becoming a franchisee and you sit down to determine if franchising would be more of a risk for you or a benefit to you. Decide if each of the characteristics below is a risk or benefit of franchising. you like the idea of passing down a family owned business to your children and grandchildren

risk

Read the following excerpt from the article "Lines separating sales channels blur: Manufacturers, direct sellers, retailers, invade each other's turf", and then choose the best answer to the question posed below."... Conflict in the channels has produced a total blurring of the lines that once separated them. First, there's the blur between manufacturers and retailers.Then there's the explosion of discount outlet malls, which proudly expose the highest image-oriented brand names to the consumer -- direct from the manufacturers ... And because of the proliferation of these malls as legitimate channels, sales for the brands in this channel are in the multimillion-dollar range. Finally, there is the manufacturer and direct-seller blur caused by those manufacturers that recognize the need to gain back some of the control they have lost to retailers...Some manufacturers have mined niches in the market where they believe direct selling is somehow less objectionable to their retail partners. ..Access to the consumer through the Internet will only continue to blur the manufacturer/direct-seller lines, altering the fundamental selling proposition for manufacturers forever." What type of marketing channel conflict is being discussed in the above article? gray market conflict horizontal conflict vertical marketing system vertical conflict channel management

vertical conflict Vertical conflict results from disputes between channel members at different levels, such as, producers who establish their own retail stores or create mail-order operations that compete with retailers, or retailers whose private brands compete with producers' brands, as is discussed in the article above.