Chapter 10
To help complete transactions, channel members perform these functions:
contact work, matching work, and negotiations
To ensure channel success, all channel firms should understand and accept their roles, coordinate their goals and activities, and _______________________________________.
cooperate to attain overall channel goals
contact work
finding and communicating with prospective buyers
begins with analyzing consumer needs and setting channel objectives.
Marketing channel design
matching work
shaping and fitting the offer to the buyer's needs
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered Vertical Marketing System (VMS)
What are the four steps to designing marketing channels, in the correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives
Which of the following statements is true regarding channel organization? A. Once a channel is organized and set, it rarely changes. B. In a well-organized channel, conflicts rarely occur. C. Channel organization is always based on formal interactions guided by strong organizational structures. D. Channel members should act alone in their own short-run best interests before considering the interests of other channel members. E. Channel members are dependent on each other for the overall success of the channel.
Channel members are dependent on each other for the overall success of the channel
Which of the following is an example of horizontal channel conflict? A. A consumer complaining to a producer about the quality of a product B. A retailer complaining about a producer's pricing C. A consumer complaining to a retailer about the service they received D. A retailer complaining about receiving damaged goods from a wholesaler E. A Ford dealer complaining that another Ford dealer is advertising in its territory
E
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.
Which of the following is TRUE regarding new types of channel organizations? A. They provide improved performance for small firms. B. They provide stronger leadership and improved performance. C. They provide improved leadership, but performance is unstable. D. They provide improved performance but lack leadership. E. They provide stronger leadership for larger-scale companies.
They provide stronger leadership and improved performance
Distribution channels are complex ______________ in which people and companies interact to accomplish individual, company, and channel goals
behavioral systems
Channels often involve long-term commitments, and companies have many alternatives. Each alternative should be evaluated against three general criteria. What are these?
economic, control, and adaptability criteria
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.
intensive, exclusive, and selective
In determining the number of channel intermediaries, there are three strategies available. These are _________________.
intensive, exclusive, and selective distribution
Marketing channels perform many key functions. Which of the following is NOT one of those key functions? A. Fulfilling completed transactions B. Helping to complete transactions C. Manufacturing D. Assuming risks of carrying out channel work E. Contact work
manufacturing
Intermediaries are used by most producers to bring products to market. These intermediaries are known as
marketing channels
Other functions of marketing channel members include helping to fulfill the completed transactions by offering
physical distribution, financing, and risk taking
Most producers use intermediaries by forging a marketing channel (or distribution channel) to bring products and services to the consumer or business user. They do this because of _________, specialization, and scale of operation
the intermediaries' contacts and experience
The second step of channel design is the identification of the major channel alternatives in terms of the _________________
types of intermediaries, number of intermediaries, and the channel responsibilities of each member
