MKT 210 Ch. 12

Which of the following is an example of horizontal channel conflict?

A Ford dealer complaining that another Ford dealer is advertising in its territory

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?

An administered VMS

What is the first step in marketing channel design?

Analyzing consumer needs

Which of the following statements is correct regarding the functions channel members perform?

Channel members create greater efficiencies than manufacturers could achieve on their own.

_______________ is a strategy in which the seller requires that dealers not handle competitors' products.

Exclusive dealing

Which of the following is a reason that producers use marketing channels and channel intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) _____________ vertical marketing system (VMS).

administered

The franchise organization is the most common type of _______________ VMS (vertical marketing system).

contractual

Producers of _____________ typically use intensive distribution for their products.

convenience goods

Historically, ____________ have lacked leadership and power, often resulting in damaging conflict and poor performance.

conventional distribution channels

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) ______________.

corporate VMS

A ___________ has no intermediary levels

direct marketing channel

Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of _____________.

disintermediation

The length of a channel is indicated by the number of _____________.

intermediary levels

From the producer's point of view, a greater number of levels of marketing channel means _____________.

less control and greater channel complexity

One key function performed by channel members is ___________, shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

matching

When a single firm sets up two or more marketing channels to reach on or more customer segments, it is using a(n) _____________.

multichannel distribution system

Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products ______________.

selectively

The company, suppliers, distributors, and customers who "partner" with one another to improve the performance of the entire system make up the ____________.

value delivery network

Using _____________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.

vendor-managed inventory