Marketing Channels & Distribution Exam 1 Ch. 1

Which of the following would be the best method for reducing channel conflict?

Applying Channel Power

Valu-Mart wants to ensure that its stores are never under- or overstocked with certain products, such as paper towels, sodas, and cereal. Which tool would most likely help Valu-Mart solve this problem?

CRP

A _______ is a channel member that takes the primary role of establishing and maintaining channel links.

Channel Captain

Which term refers to activities such as physically distributing products, engaging in after-sales service, and handling customer payments?

Channel Functions

What risk does a branded manufacturer most likely face by allocating part of its production capacity to private-label products?

Creating a future competitor

The greatest number of contact lines most likely involves manufacturers selling products __________.

Directly to retailers

Which term refers to reducing the use of intermediaries?

Disintermediation

Tanya recently purchased paper towels, sodas and frozen pizzas at Sam's Club, a hypermarket. In the marketing channel system, Tanya is best described as a(n)_____.

Downstream Channel Member

Martin, a channel manager for an appliance manufacturer, needs to evaluate the importance of each channel function in terms of cost and value. Martin also needs to determine the proportion of each channel function performed by each channel member. Which of the following should Martin most likely use for this task?

Efficiency Template

Which statement is most likely true about a marketing channel system?

Efficient marketing channels reduce distribution costs and increase customer satisfaction

Which factor would LEAST likely be considered in the implementation stage of the marketing channel strategy framework?

End-User Segmentation

How do intermediaries most likely create utility for end-users?

Ensuring product availability and assortment

In the context of a marketing channel, the relationship with an end-user is considered finished once a product or service has been distributed.

False

Since intermediaries usually increase costs for producers and lower value for consumers, a decentralized system of exchange is more efficient than a centralized network.

False

Katherine, a channel manager with a shoe manufacturer, recently learned that prices in the channel are higher than desired by end-users. Katherine most likely used a(n) ________ to determine this information.

Gap analysis template

The benchmarking stage of the marketing channel strategy framework focuses on ________.

Identifying best practices in well-developed systems

A Marketing channel strategy is a set of activities focused on designing and managing a marketing channel for the purpose of _________?

Improving a firm's sustainable competitive advantage

Which channel function most likely plays a role in all value-added activities of a marketing channel system?

Information Sharing

Which of the following is LEAST likely a carrying cost associated with a retailer taking title of a manufacturer's products?

Integration

What general term refers to middle channel members in the marketing channel?

Intermediaries

What is the most likely outcome of an ineffective marketing channel strategy?

Limited product reach

Manufacturers are LEAST likely to use intermediaries to:

Manage production levels

Sony produces televisions and computers and sells them through electronics stores. In a marketing channel, Sony would best be described as a _____?

Manufacturer

Which term refers to a set of independent organizations involved in the process of making a product or service available for use or consumption?

Marketing Channel

All of the following are sorting functions performed by intermediaries EXCEPT________.

Matching buyer product needs to retailer stocks

Audrey works as a manufacturers' representative for an athletic shoe company. In her position, Audrey is most likely responsible for _____.

Negotiating terms of trade with shoe retailers

Which of the following indicates the proportional value added to the total channel's performance by each channel member?

Normative Profit Share

All of the following channel functions can move either upward or downward in the marketing channel EXCEPT __________.

Ordering

Which channel function almost always moves up the channel from the end-user to the producer?

Payment

ElectroInc produces cell phone accessories and sells them to firms such as Apple and Samsung. Apple and Samsung put their own brand names on ElectroInc products before selling them to end-users. Which term best describes ElectroInc?

Private-label manufacturer

Which of the following tasks would LEAST likely be conducted by a merchant wholesaler?

Producing private-label goods

Which channel function almost always moves forward from the producer to the consumer?

Promotion

Department stores, convenience stores, and warehouse clubs are best categorized as _______.

Retail Intermediaries

What should most likely be the goal of all marketing channel members?

Satisfying end-users

Which term refers to splitting a market into groups of end-users?

Segmentation

Which of the following most likely occurs in the first stage of the marketing channel strategy framework?

Segmenting the market based on end-user's needs

All of the following are key channel elements that must be managed to ensure that a channel system runs smoothly EXCEPT ________.

Segments

According tot he text, what is a new trend taking place among retail intermediaries?

Selling products and services to businesses

Which of the following is most likely an example of a firm engaging in disintermediation?

Selling products directly online

Which term refers to value-added services and products created by channel members and consumed by end-users?

Service Outputs

Comps-Tech is an information technology firm that handles customer orders and payments for a variety of online retailers. Comps-Tech is most likely a(n) ________.

Specialized intermediary

Which of the following is most likely a true statement about channel functions?

The performance of certain channel functions correlates with other channel functions correlates with other channel functions.

Channel captains are typically manufacturers of branded products.

True

Channel logistics relates to processing and tracking factory goods throughout the marketing channel.

True

Specialization increases channel efficiency, but it also requires close cooperation and coordination in channel operations.

True

Differentiate the 3 general types of intermediaries.

Wholesale, retail, specialized Wholesale = (distributors, agents, and brokers), sells to channel members such as retailer but not directly to end-users Retail= (department stores, specialty stores, online, franchises), sell directly to end-users Specialized= (an advertising agency providing promotion), perform specific functions within channel, not associated with actually selling products

What are the nine universal channel functions? What direction does each function move? Why do some channel functions move in both directions?

functions that move down: - physical possession - ownership - promotion functions that move up: - ordering - payment functions that move both: - negotiation - financing - risk - information sharing Some move both directions because they can benefit both the channel members in being more efficient as a channel to handle consumer demand, and help consumers express their demands in a way that the channel members can improve their ability to supply desired services