MKT 300 Chapter 16

Which statement about marketing channels is true? The structure of a marketing channel is solely up to the goods manufacturer. A direct marketing channel is generally the best channel choice for large retailers. A marketing channel may be a combination of a direct channel and an indirect channel. Firms have the best opportunity to design the best marketing channel within their first year.

A marketing channel may be a combination of a direct channel and an indirect channel.

Which of the following refers to the controllable characteristics of a store related to presentation? M-commerce Co-op advertising Atmospherics Promotion

Atmospherics

Manufacturers will work with specific retailers depending on where their target consumers expect to find their products. What does this process refer to? Customer expectations Manufacturer aspirations Retailer expectations Consumer aspirations

Customer expectations

When a customer purchases merchandise, it triggers a flow of information that will eventually reach which elements of the supply chain? (Select all that apply.) Distribution centers Suppliers of raw materials Product manufacturers Competing stores Tax auditors

Distribution centers Suppliers of raw materials Product manufacturers

Which of the following occurs in a conventional marketing channel? The channel includes just three members: a manufacturer, a wholesaler, and a retailer. Channel members coordinate to achieve a set of shared goals and improve the overall profitability of the channel. Each channel member pursues its own objectives independently, with little care about other channel members. All channel members are managed centrally by the same corporation.

Each channel member pursues its own objectives independently, with little care about other channel members.

Which of the following statements about service retailers are true? (Select all that apply.) Examples include health clubs and dry cleaners. They form a shrinking part of the retail industry. They are largely self-serve offering limited service They primarily sell services rather than merchandise. They are a large part of the retail industry.

Examples include health clubs and dry cleaners. They primarily sell services rather than merchandise. They are a large part of the retail industry.

True or false: A direct, manufacturer-to-consumer supply chain is a poor choice in a simple economy.

False

True or false: Franchisors agree to operate outlets in accordance with procedures prescribed by its franchisees.

False

True or false: Omnichannel retailers price items the same regardless of channel.

False

True or false: Service retailers, who sell services rather than merchandise, are a small and shrinking retail sector.

False

True or false: The important characteristics of retailers are the same in every industry.

False

Full-line discount, specialty, department, and off-price are all types of retailers that fall under which broad retailing category? Sports and athletics Food and dining General merchandise Electronics and software

General merchandise

Amazon.com is an Internet channel that consumers use to purchase a wide variety of products. Which of the following aspects of Amazon.com are advantages it has over the store channel? (Select all that apply.) Greater ability for consumers to touch and try the merchandise Greater ability to collect information about consumer shopping behavior Greater personalized information Greater selection of products

Greater ability to collect information about consumer shopping behavior Greater personalized information Greater selection of products

Which of the following is true of the Internet channel compared to the store and catalog channels? It makes it more difficult to collect information about consumer behavior. It makes it more difficult to personalize products and services. It makes it more difficult to enter new markets. It helps retailers offer a greater variety of products.

It helps retailers offer a greater variety of products

Which of the following businesses would have the easiest time introducing a new product line in stores? Fruit of the Loom, which sells its products in Walmart and Macys' Milwaukee Tool, which sells its products at Home Depot Cal-Organic Farms, which partners with several grocery store chains MAC Cosmetics, which operates its own retailers

MAC Cosmetics, which operates its own retailers

Which of the following are part of the atmosphere of a store? (Select all that apply.) Prices Buyers Music Lighting

Music Lighting

To stay competitive with other types of food retailers, conventional supermarkets have employed a number of different strategies. Which of the following is not a common strategy that many conventional supermarkets have adopted? Offering cafés Offering health care clinics Offering an athletic shoe department Offering banks

Offering an athletic shoe department

Which of the following is NOT one of the six Ps? Promotion Price Partnerships Place Product

Partnerships

______ is a major benefit to using the Internet channel and refers to the ability to tailor the information for each customer economically. Micro-marketing Target positioning Standardization Personalization

Personalization

If a manufacturer instructs a retailer on how to use a newly released product, this would be an example of the manufacturer getting involved with which of the following six Ps? Personnel Price Place Presentation

Personnel

Brookstone is a retailer known for opening stores in airports, where they have a captive market. This is an example of employing which of the following six Ps to one's competitive advantage? Place Presentation Price Product Promotion

Place

______ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use. Wholesaling Value marketing Retailing Distribution

Retailing

Which of the following is NOT an actual distribution intensity level considered by manufacturers? Exclusive Retentive Intensive Selective

Retentive

Marketing channels include which of the following? (Select all that apply.) Environmental agencies Government agencies Stores Legal practice centers Warehouses

Stores Warehouses

To determine how much integration is best, each retailer must address issues such as which of the following? (Select all that apply.) Pricing Supply chain Sales tax Integrated CRM Brand image

Supply chain Pricing Integrated CRM Brand image

Which of the following does an integrated CRM facilitate? (Select all that apply.) Targeting future promotions Moving goods from the distribution center faster Isolating customer experiences on different channels Expediting returns Handling customer complaints

Targeting future promotions Expediting returns Handling customer complaints

Distribution intensity is typically divided into how many levels?

Three

True or false: The general price range of the products offered by a retailer helps define its image.

True

Retailers help satisfy customers' needs regarding product by providing which of the following? a mix of services relating to the products they sell limited service since consumers would rather wait on themselves restricted and reduced product access an assortment of products geared toward their target market products in the quantities their customers wish to buy

a mix of services relating to the products they sell an assortment of products geared toward their target market products in the quantities their customers wish to buy

Relationships in supply chains ______. must be between independent entities are always close working partnerships must be between divisions of the same firm are based on meeting each other's needs

are based on meeting each other's needs

It is very important for the retailer to provide a consistent ______ across all channels. distribution system supply chain brand image advertising mix

brand image

Which of the following are advantages that online shopping has over traditional store channels? Faster delivery More trustworthy More helpful employees Broader selection

broader selection

The competition in food retailing could best be characterized as which of the following? Unimportant Average Not at all competitive Highly competitive

highly competitive

Generally, the ______ and more sophisticated a firm is, the ______ likely it will be to use supply chain intermediaries.

larger; less

Imagine that Apple conducts a seminar with Best Buy employees on new features in Apple's latest iPhone. This would be an example of the ______ educating the ______ on how to use and consequently sell its new product. retailer; consumer consumer; retailer manufacturer; retailer retailer; manufacturer

manufacturer; retailer

The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called ______ management. inventory marketing channel systems value delivery

marketing channel

Getting customers into the stores by using newspapers, magazines, television, and social media refers to advertising in the ______, whereas displays and signs placed at the point of purchase or in aisles is advertising in the ______. store; media media; store warehouse; media public; private

media; store

One of retailers' most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of ______ and ______.

merchandise; service

When customer service or product offerings are individually tailored to the consumer shopping on an Internet channel, they are said to be ______. personalized micro-targeted nonspecific PR mass marketed

personalized

A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of ______. direct store delivery a short supply chain power within a marketing channel marketing through a fulfillment center

power within a marketing channel

When a retailer advertises using newspapers, magazines, television, and social media, the retailer is using ___________, one of the six Ps.

promotion

A manufacturer will seek out partnerships with ____________ who will sell the manufacturer's products and/or services to the final consumers.

retailers

Adding value to products and services sold to consumers in households for their personal or family use is known as ______________.

retailing

Generally, relationships in supply chains exist because the parties ______. are in a vertical contractual arrangement are horizontal equals already have close working partnerships want or need something from one another

want or need something from one another

Manufacturers make products and sell them to ______, who resell the merchandise to retailers. manufacturer's representatives independent salespeople distribution centers wholesalers

wholsalers

Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of _____________________ power.

reward

The role of the retailer is to help ______. the manufacturer only the competitors in the industry the consumer only the consumer and manufacturer

the consumer and manufacturer

A direct marketing channel sells a product from a manufacturer to a consumer ______. via a wholesaler without a retailer via a retailer without an exchange of money

without a retailer

Which of the following is true of the supply chain of an omnichannel retailer? It usually involves a single distribution center. It usually involves decentralized inventory. It often includes multiple distribution centers. It eliminates the need to provide an integrated shopping experience.

It often includes multiple distribution centers.

______ is important for the manufacturer and retailer to consider when determining how to position a brand and the products that fall under the brand.

Price

What are three of the six Ps that marketers often rely on to facilitate retailing strategy? Price Private Personnel Promotion

Price Personnel Promotion

Unlike Estée Lauder, which is a large and established firm with the resources to provide itself with its own sales force to sell its products, smaller firms will probably need to rely on which of the following to help to distribute its products? Larger manufacturing firms Demand chain intermediaries Supply chain intermediaries Larger retailing firms

Supply chain intermediaries

MAC, a brand of makeup produced by Estée Lauder, sells through the company's retail outlets. Therefore, whenever a new MAC product is made, it is automatically brought into Estée Lauder retailing outlets. Which type of channel structure does this setup represent? Horizontal marketing system Vertical production setup Vertical marketing system Horizontal production setup

Vertical marketing system

Guitar Center reinforces its image of selling high-quality musical equipment in its stores and catalogs and on its website. This is an example of providing a consistent ______ across all channels. brand image CRM supply chain retail partner

brand image

Because each of the channels is somewhat ______, a critical decision facing multichannel retailers is the degree to which they should or are able to integrate the operations of the channels. profitable inexpensive lengthy different

different

A manufacturer of clothing apparel currently sells its products at Neiman Marcus and Dillard's. A new survey shows that a majority of its customers now expect to find its products at Neiman Marcus, Macy's, and Saks Fifth Avenue, but relatively few customers expect to find the products at Dillard's or Marshalls. If the manufacturer acts on its customers' expectations, what action would it take in regard to its retail partnerships? drop Dillard's and add Marshalls and Macy's drop Dillard's and add Macy's and Saks Fifth Avenue add Marshalls, Macy's, and Saks Fifth Avenue drop Neiman Marcus and add Macy's.

drop Dillard's and add Macy's and Saks Fifth Avenue

The best way to avoid vertical channel conflict is to ______. keep supply chains to no more than three participants ensure that communication between channel partners is honest and open insist that all retailers sell a manufacturer's products at the same prices ensure that manufacturers deal with only one retailer for each product line

ensure that communication between channel partners is honest and open

Manufacturers need to understand the ______ of different types of retailers to determine the best channels for their products marketing spending geographic locations general characteristics corporate history

general characteristics

Effective omnichannel operations need a(n) ______, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer.

integrated CRM system

One strategy that Starbucks uses is opening stores in areas where competing coffee shops would have little chance of staying competitive with Starbucks. What Starbucks is essentially doing is saturating the market, a strategy that falls under ______ within the six Ps framework.

place

In omnichannel marketing, customers expect ______ consistency for the same SKU across channels. delivery schedule shipping fee sales tax pricing

pricing

Omnichannel retailers ______ provide an integrated shopping experience across all their channels. find it impossible to automatically struggle to easily

struggle to

Which of the following is not a type of retailer that falls under the general merchandise retailing category? Specialty stores Department stores Wholesalers Off-price retailers

wholesalers