Principles of Marketing: Ch. 10

Which of the following statements is true regarding marketing channels and channel intermediaries? (define marketing channel and channel intermediaries) A. Marketing channel decisions have no effect on other marketing decisions. B. Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products. C. Very few producers use marketing channel intermediaries. D. Distribution channel decisions involve only​ short-term commitments to other firms. E. Distribution systems cannot be used to give a company a competitive advantage.

B. Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products Definitions: - A set of interdependent organization that come together to make a product or service available for use or consumption by the business user or consumer - Retailers and wholesalers (those that come together during the product development cycle)

Which of the following statements is true regarding channel organization? A. Channel organization is always based on formal interactions guided by strong organizational structures. B. In a​ well-organized channel, conflicts rarely occur. C. Channel members are dependent on each other for the overall success of the channel. D. Once a channel is organized and​ set, it rarely changes. E. Channel members should act alone in their own​ short-run best interests before considering the interests of other channel members.

C. Channel members are dependent on each other for the overall success of the channel

Which of the following statements regarding marketing logistics is true? A. Marketing logistics involve outbound movement of products. B. Marketing logistics have no effect on the environment and a​ firm's environmental sustainability efforts. C. Marketing logistics involve inbound​ logistics, outbound​ logistics, and reverse logistics. D. Marketing logistics are not involved with the physical distribution of goods. E. Companies today are placing less emphasis on marketing logistics.

C. Marketing logistics involve inbound logistics, outbound logistics, and reverse logistics

Differentiate between intensive​ distribution, exclusive​ distribution, and selective distribution strategies. Provide examples of products that would be appropriate for each.

Companies must determine the number of channel members to use at each level of the marketing channel. They do so using three strategies: intensive distribution, exclusive distribution, and selective distribution. Producers of convenience products typically use intensive distribution: a strategy in which they stock products in as many outlets as possible. By contrast, some producers purposely limit the number of intermediaries handling their products. The extreme form of this is exclusive distribution in which producers only give a limited number of dealers the exclusive right to distribute its products in their territories. This type of distribution is common for luxury products. In between intensive and exclusive distribution is selective distribution, in which produces use more than one but fewer than all dealers who are willing to carry the company's product. Most television, furniture, and home appliance brands are distributed in this manner.

A ______ consists of producers, wholesalers, and retailers acting as a unified system (define all answers) A. conventional marketing system B. horizontal marketing system C. multichannel marketing system D. vertical marketing system E. closed marketing system

D. Vertical marketing system - Conventional marketing system: when producers, wholesalers, and retailers act as separate businesses, seeking to maximize their own profits even at the expense of the system as a whole - Vertical marketing system: when producers, wholesalers, and retailers act as one unified system - Horizontal marketing system: when two or more companies at one level join together - Multichannel marketing system: a single firm sets up multiple marketing channels to reach one or more customer segments

What is disintermediation? With a suitable​ example, explain the opportunities and problems that disintermediation presents for producers and resellers.

Disintermediation occurs when producers cut out intermediaries and go straight to final buyers or when radical new types of channel intermediaries replace traditional ones. For example, online music download services such as iTunes have displaced traditional music store retailers. In term, as digital music downloads peak, streaming services are on the rise. While traditional channel members are given the opportunity to innovate and find new ways to add value, those who do not run the risk of being forgotten.

Most companies today see their intermediaries as first-line customers and focus on _______ to forge long-term relationships with channel members (considering the definitions of the above terms, only a few answers make sense) A. government assistance B. partner relationship management C. legal contracts D. promotional incentives E. discounted prices

B. Partner relationship management

5. What are the four steps to designing marketing channels in their correct​ order? A. Identifying the design of​ competitors' channels, analyzing consumer​ needs, setting channel​ objectives, and evaluating channel alternatives B. Setting channel​ objectives, analyzing consumer​ needs, identifying major channel​ alternatives, and evaluating the alternatives C. Analyzing consumer​ needs, setting channel​ objectives, identifying major channel​ alternatives, and evaluating the alternatives. D. Analyzing consumer​ needs, setting channel​ objectives, identifying the design of​ competitors' channels, and evaluating the alternatives E. Identifying the design of​ competitors' channels, setting channel​ objectives, analyzing consumer​ needs, and evaluating channel alternatives

C. Analyzing consumer needs, setting channel objectives, identifying major channel objectives, and evaluating the alternatives

What are the four major functions of marketing logistics? (define marketing logistics) A. Warehousing, inventory​ management, shipping, and receiving B. Warehousing, inventory​ management, transportation, and retailing C. Warehousing, inventory​ management, transportation, and logistics information management D. Warehousing, transportation,​ wholesaling, and retailing E. Forecasting, order​ processing, transportation, and inventory management

C. Warehousing, inventory management, transportation, and logistics information - Marketing logistics: physical distribution

When assigning functions to channel members, it is important for producers to _______. A. assign functions to channel members not used by competitors B. assign functions to firms they have worked with in the past C. assign functions to channel members who guarantee to lower the​ producers' costs D. assign functions to channel members who do not take risks E. assign functions to the channel members that can add the most value for the cost

E. Assign functions to the channel members that can add the most value for the cost

Which of the following statements is true regarding the selection of qualified channel members?A. To find and select qualified channel​ members, firms simply refer to a national online database. B. Selecting qualified channel members is largely controlled by government regulation. C. Firms select only qualified channel members in their immediate geographical area. D. Established brands have no trouble finding and keeping qualified channel members. E. Producers vary in their ability to attract qualified marketing intermediaries.

E. Producers vary in their ability to attract qualified

When designing marketing channels, companies must determine the number of channel members to use at each level. the three strategies that are available to do this are _____ distribution (what acronym did you use?) A. ​intensive, exclusive, and global B. ​intensive, selective, and targeted C. ​targeted, segmented, and global D. ​intensive, selective, and exclusive E. ​open, closed, and franchise

ISE D. Intensive, selective, and exclusive