Marketing Chapter 10

Phoenix Corporation is a manufacturer of leather goods. Its current product categories include belts, wallets, and bags. The company is now planning to extend its product category by producing a range of leather shoes for both men and women. Phoenix's marketing managers are finalizing the best distribution strategy for this product category. Which of the following, if true, would STRENGTHEN the argument for intensive distribution?

Consumers treat the kinds of shoes that Phoenix will produce as commodities.

Which of the following involves managing the upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers?

supply chain management

Which of the following would NOT be a consideration when selecting a channel member?

the company's corporate structure

Which of the following is most important to remember when developing a distribution channel?

the needs of the consumer

Which of the following best describes the term disintermediation?

the removal or replacement of intermediaries in a marketing channel

Which of the following is NOT a reason that companies develop marketing channels?

to assist in the development of new products

Make That Quota is a company that has partnered with One More Sprocket to create machine parts for use in factories. Make That Quota has noticed that One More Sprocket is not performing well as an intermediary: the company repeatedly misses sales quotas, fails to deliver product to customers in a timely manner, and has a record of abysmal customer service. This is not a recent phenomenon, but has continued over a number of years without change despite efforts from Make That Quota to retrain company workers and motivate the company. Which of the following is the best decision for Make That Quota to make?

Terminate the relationship with One More Sprocket and find a better intermediary.

Individual Touch is a company that sells trial-size travel products, such as soap, lotion, and mouthwash. The company has a distributor responsible for selling its products. How does this affect the number and complexity of contacts required by Individual Touch?

The company has fewer contacts than if there were no distributor.

Phoenix Corporation is a manufacturer of leather goods. Its current product categories include belts, wallets, and bags. The company is now planning to extend its product category by producing a range of leather shoes for both men and women. Phoenix's marketing managers are finalizing the best distribution strategy for this product category. Which of the following, if true, would WEAKEN the argument for intensive distribution?

The company plans to market the shoes as a high-end luxury brand.

Which of the following best describes a marketing channel?

a set of interdependent organizations that help make a product

Ready to Grow is a company that produces clothing for infants and toddlers. For many years, it was a small company with only a local market, but in recent years, the company has grown and expanded. It is now looking for intermediaries to help with production and distribution of its products. What is the first thing that the company should do in order to prepare to create new marketing channels?

analyze the needs of its customers

Mark is responsible for creating and maintaining a logistics system for his company. Which of the following would Mark NOT be likely to do as a function of his job?

assist in the development of new products and product lines

Which of the following is NOT considered when a company sets channel objectives?

company location

Just the Music, Inc. is a company that produces for several musicians and singers. In times past, the company focused on producing tapes, records, and CDs for sale in retail music stores. However, with the advent of MP3s and other digital forms of music distribution, the company has abandoned its retail stores and has moved its operations entirely online. Now, you can purchase MP3s from Just the Music from its online website. Which of the following best describes what Just the Music has done?

conducted disintermediation

Which of the following is NOT an integral part of marketing channel management?

control of channel members