CHAPTER 12

corporate vertical

Estee Lauder both manufactures MAC cosmetic products and owns the MAC retail stores. A manufacturer that also owns distribution centers and retail outlets is an example of a _______ marketing system

franchising.

A contractual arrangement between a parent company and an individual or firm that allows them to operate a certain type of business under an established name and according to specific rules Ford licenses its dealers to sell cars subject to specific sales and service conditions under its _____________ agreement

Which of the following are intermediaries that have legal authority to act on behalf of a manufacturer? (Check all that apply.)

Agent Broker

Dual Distribution.

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is known as GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as

The factors affecting channel choices and management include which two of the following

Buyer requirements Target market coverage

In which way do intermediaries in the marketing channel enhance the value of a product for consumers?

Intermediaries provide various forms of utility: time, place, form, and possession.

Which of the following is characteristic of a business channel?

It tends to be shorter than consumer channels

Intensive

The 1 million ATM machines owned by Visa are an example of Visa's strategy to provide a(n) _______ distribution of cash.

Indirect Channel

The presence of intermediaries suggests.. has intermediaries between the producer and consumers that perform various channel functions.

Which of the following are true of wholesalers?

They share risk with the producers when they stock merchandise in anticipation of sales.

contractual vertical

Under a ________ marketing system, independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

Backward integration

a retailer that owns the manufacturing plant making the products it sells. Kroger supermarkets owns facilities that manufacturer many of the Kroger-branded products it sells in its stores,

Intermediary

add value by performing transactional, logistical, and facilitating functions. Manufacturers often use _____ to distribute products because of the functions they perform and the value they create for buyers.

Direct Channel

allows ultimate consumers to deal with producers instead of intermediaries for purchases. one that moves a product from the manufacturer to a consumer without a retailer. allow consumers to buy products by interacting with advertising media instead of a face-to-face meeting with a salesperson. Ex: Harry and David food and gift catalog Home Shopping Network

Marketing Channel

consists of those individuals or firms involved in the process of making products available to consumers or industrial users. help CREATE VALUE for consumers through the four utilities: time, place, form, and possession. Each intermediary in the marketing channel adds value in terms of the functions it performs. Indirect channels are longer than direct ones. a critical decision for a producer because not only does it provide a link to its buyers but also the means through which it implements various elements of its marketing strategy.

Ralph Lauren manufactures clothes and now also owns retail stores selling these clothes. This is an example of Apple has opened many retail stores to sell the various technology products it produces

forward integration.

The marketing channel for business products sometimes features a(n) ________, which in many ways is like a wholesaler in consumer channels.

industrial distributor

Wholesale

intermediaries who sell to other intermediaries A firm that would typically be called a(n) ________ in consumer markets would perform the same functions as a distributor in business markets.

Vertical Marketing Systems

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact. professionally managed and centrally coordinated marketing channels. Types: Wholesaler-sponsored voluntary chains Retailer-sponsored cooperatives Franchising

Multichannel Marketing

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. marketing that exploits opportunities with both traditional intermediaries and online

One or more intermediaries between ________ defines an indirect channel of distribution.

the manufacturer and the consumer