MAR CH 10

BizCo is a B2B firm specializing in selling highly complex computer networking systems and software that allow clients to work more efficiently. Mark is the VP of Sales at BizCo and is concerned about some of the complaints he's received from customers and prospective customers. Which of the following is one of the complaints Mark is MOST likely to hear?

"The salesperson isn't following my company's buying process."

Buyers and sellers usually come to the table as equals when bargaining.

False

Foluke and Rachael need to buy appliances for a restaurant that they will open in a few months. To save money, they can purchase the appliances through intensive distribution channels.

False

Most buyers wish to purchase a larger quantity of a wider variety of goods.

False

Transaction cost analysis is a model that does not consider channel members' marketing costs and governance costs because they are ideally minimized.

False

When a retailer is planning for its sales force, it starts with the question, "How many salespeople should we have?" What is the next question it should ask?

How should salespeople be compensated for their efforts?

Top managers at S & A, Inc. believe that their staff needs some help understanding the perspectives and needs of the distributors they work with. It could be a good idea for them to exchange some personnel with these distributors for a short time in order to achieve this.

True

Wanting to please the customer but being unable to do so is an example of role conflict.

True

When power is used to resolve conflict, the less powerful player can feel resentful and look to leave the channel arrangement as soon as another opportunity becomes available.

True

In push marketing, the manufacturer targets __________ rather than __________.

channel members, consumers

When the decisions seem overwhelming, we should simplify and remember that the key to marketing is to think about the

customer.

Apple used to be in the business of manufacturing only, but then it opened Apple stores. This is an example of which of the following?

forward integration

Sheila owns a small boutique. She wants to move on to other things. She thinks she might be comfortable giving up complete ownership of the business but would still like to maintain some control over it. Which of these is she considering?

franchising

Costs of __________ are the relational issues incurred by trying to coordinate the enterprise and control one's partners.

governance

ABC Uniforms currently buys uniforms and customizes them for specific teams. The uniform manufacturer is hard to deal with and has refused to negotiate a reasonable price. ABC Uniforms already has the equipment to customize the uniforms. Perhaps the company should begin to make the basic uniforms in-house. What term refers to this type of decision?

make vs. buy

What phrase refers to the fact that conflict can be squashed if one player is inherently more powerful than another?

might makes right

A perspective by which the benefits a company brings to its partners (beyond cost reductions) are emphasized is referred to as

transaction value analysis.

ABC Groceries sells private label pastries and pastries made by a local bakery that is a channel partner. This is an example of __________ competition.

vertical

The determination of the size of a sales force is usually done via some estimation of expected

workload.

BrainTrust Company produces and sells educational toys for children. In pricing its product, the company needs to make sure it properly estimates its costs. The company can safely estimate that transportation is what percentage of total distribution cost?

50%

ABC Groceries has established private labels in several categories, including locally grown canned fruits and vegetables. This is an example of backward integration.

True

Arbitration is when the third party makes a binding decision for the two conflicting parties.

True

Archie and Betty are examining how their firm manages the sales process, and they are considering selling directly to consumers without maintaining a sales force. In making their decision, they should consider the complexity of their product.

True

Channel experts speak of trust as both the willingness and ability to deliver on promises.

True

Channel members frequently bicker over prices and margins.

True

Company ABC is trying to determine which products it should introduce. It is more efficient for Company ABC to produce a large quantity of a limited number of goods.

True

Executives at Inspiron Company disagree as to which channel partners are the best fit for their business. One executive says that a particular channel partner's interactions with customers are not in sync with Inspiron Company's vision and mission statement. When channel partners differ in their opinions on how to please customers and maximize profit, such as the case between Inspiron Company and its channel partner, conflict can arise.

True

If Tara wants to open her own ABC franchise, she will have to pay an upfront fee as well as royalties to the franchisor.

True

Network Supplies, Inc. manufactures and sells an undifferentiated product line. Its products are very similar to others available in the marketplace. Thus, the quality of the company's sales force is likely to be the most significant means of differentiation for the firm.

True

Some cost is associated with each link in a distribution channel so all links should contribute value.

True

The extensiveness of distribution channels is related to the brand's life cycle or the company's maturity in the marketplace.

True

The system with an intermediary channel member is more efficient than all firms going direct to consumers.

True

There's a markup (profit to be made) when the manufacturer yields product to the retailer, and there's a second markup (more to be made) when the retailer makes the product available to the consumer.

True

Which of the following identifies a major class of franchising?

product franchising

Tech Gadgets Co. distributes complex and relatively expensive goods, with customers typically requiring assistance before purchasing. The channels for these types of products are often structured to be

selective.