How Marketing Channels and Supply Chains Create Value Quiz Questions

What is the reason behind the growing complexity of marketing channels?

Because consumers expect to get a product when, where, and how they want it

Choose the reason why marketing channels are becoming more critical.

Because consumers have become more demanding

Tim, a wholesaler, is involved in the local milk distribution network. He does not actually purchase milk to sell to consumers but rather negotiates sales contracts for three producers of milk in his locality. Tim receives a commission from the milk producers for his services. Which of the following wholesaler categories does Tim belong to?

Broker

Which term can be best described as the process of product creation from the raw materials to the finished good, and, finally, to the customer?

A Marketing Channel

Pick the term that can be best described as the process of product creation from the raw materials to the finished good, and, finally, to the customer

A marketing channel EXPLANATION A marketing channel is the way in which a product moves from the raw materials, to the finished good, and, finally, to the customer. As consumers have become more demanding, marketing channels have become more critical.

Which among the given stakeholders constitute the most basic marketing channel?

A producer and a consumer

Choose the stakeholders that constitute the most basic marketing channel

A producer and a consumer EXPLANATION The most basic marketing channel is simply a producer and a consumer. In more complex marketing channels there are one or more intermediaries.

What is most important for companies selecting channel partners to help them sell products?

Companies select partners who they believe will be able to put their product when, where, and how consumers want it.

Choose the intermediary that performs services such as stocking inventory, operating warehouses, supplying credit, employing salespeople, and delivering goods.

Full-service wholesalers

Which of the following perform services such as stocking inventory, operating warehouses, supplying credit, employing salespeople, and delivering goods?

Full-service wholesalers EXPLANATION Merchant wholesalers, sometimes called distributors, purchase (take title to) the products from the producer. They can be full-service wholesalers, meaning they perform services such as stocking inventory, operating warehouses, supplying credit, employing salespeople, and delivering goods

Graphica Inc., a tiles manufacturer company, has implemented a plan to remove the additional partners in its supply chain by eliminating the packaging partner and the grading partner of its tiles and ceramic sales. This also implies that Graphica has chosen to minimize the services in the value chain. Which trend has been adopted by Graphica Inc.?

Go direct

Select the term that describes using fewer supply chain members and minimizing the services that have to be done throughout the supply chain.

Go direct

What is an important characteristic of marketing channels?

Marketing channels were traditionally viewed as the way in which a company promotes and sells a product.

Which category of intermediaries purchase products from the wholesalers and then sells them to customers?

Retailers

Which statement best describes intermediaries?

They are organizations through which products pass on their way from producer to consumer

What are the four forms of utility that marketing channels offer?

Time, form, place and ownership

Identify the four forms of utility that marketing channels offer.

Time, form, place, and ownership

What is supply chain also known as?

Value chain