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