Question 1

A direct marketing channel is a ________ channel.

Accepted Answer

A)  one-level 
B)  two-level 
C)  zero-level 
D)  three-level 
E)  reverse-flow 
A)  one-level 
B)  two-level 
C)  zero-level 
D)  three-level 
E)  reverse-flow C

Question 2

Atronix Solutions is a major manufacturer of electronic measuring devices in the United States. The company often threatens to terminate its relationship with its intermediaries if they do not agree with its terms and conditions. What channel power does Atronix use? What are its effects?

Accepted Answer

Here, the manufacturer is using coercive power. This power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power.

Question 3

A large retail chain in the United States decides to expand its operations by adding an online site for e-commerce. This is called a(n) ________ company.

Accepted Answer

A)  B2B 
B)  brick-and-mortar 
C)  m-commerce 
D)  pure-click 
E)  brick-and-click 
A)  B2B 
B)  brick-and-mortar 
C)  m-commerce 
D)  pure-click 
E)  brick-and-click E

Question 4

Orion Airlines is an American airline that provides domestic and international air transport services. Explain the five service outputs provided by marketing channels with reference to Orion.

Accepted Answer

• Lot size - Customers may be allowed to

Question 5

Advanced supply-distributor arrangements for administered vertical marketing systems do not rely on distribution programming.

Accepted Answer

A) True 
 B)False

Question 6

A manufacturer is using reward power when it offers intermediaries an extra benefit for performing specific acts or functions.

Accepted Answer

A) True 
 B)False

Question 7

Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

Accepted Answer

A)  spatial convenience 
B)  service backup 
C)  lot size 
D)  waiting time 
E)  delivery time 
A)  spatial convenience 
B)  service backup 
C)  lot size 
D)  waiting time 
E)  delivery time

Question 8

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

Accepted Answer

A)  coercive 
B)  reward 
C)  passive 
D)  expert 
E)  referent 
A)  coercive 
B)  reward 
C)  passive 
D)  expert 
E)  referent

Question 9

A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

Accepted Answer

A)  administered 
B)  contractual 
C)  corporate 
D)  regulated 
E)  referent 
A)  administered 
B)  contractual 
C)  corporate 
D)  regulated 
E)  referent

Question 10

Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of ________.

Accepted Answer

A)  zero-level channels 
B)  jobbers 
C)  wholesalers 
D)  manufacturer's representatives 
E)  consumers 
A)  zero-level channels 
B)  jobbers 
C)  wholesalers 
D)  manufacturer's representatives 
E)  consumers

Question 11

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

Accepted Answer

A)  reverse flow 
B)  vertical 
C)  horizontal 
D)  lateral 
E)  forward flow 
A)  reverse flow 
B)  vertical 
C)  horizontal 
D)  lateral 
E)  forward flow

Question 12

STIHL, which manufactures handheld outdoor power equipment sold to six independent US distributors and six STIHL-owned marketing and distribution centers who sell to a nationwide network of more than 8,000 servicing retail detailers, is a good example of intensive distribution.

Accepted Answer

A) True 
 B)False

Question 13

Identify the channel function that constitutes both backward and forward flow.

Accepted Answer

A)  obtaining funds for financing 
B)  storage of physical goods 
C)  persuasive communication 
D)  movement of physical goods 
E)  overseeing actual transfer of ownership 
A)  obtaining funds for financing 
B)  storage of physical goods 
C)  persuasive communication 
D)  movement of physical goods 
E)  overseeing actual transfer of ownership

Question 14

Intensive distribution relies on only some of the intermediaries willing to carry a particular product.

Accepted Answer

A) True 
 B)False

Question 15

Price pressure will increase for undifferentiated products than differentiated products.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following activities is a reverse-flow channel of marketing?

Accepted Answer

A)  raw materials movement 
B)  product recycling 
C)  materials ordering 
D)  finished goods storage 
E)  customer order placement 
A)  raw materials movement 
B)  product recycling 
C)  materials ordering 
D)  finished goods storage 
E)  customer order placement

Question 17

As a service output produced by marketing channels, product variety refers to the ________.

Accepted Answer

A)  units the channel permits a customer to purchase at once 
B)  assortment provided by the marketing channel 
C)  add-on services provided by the channel 
D)  ability of a product to provide incremental value 
E)  degree to which the channel makes it easy for customers to purchase a product 
A)  units the channel permits a customer to purchase at once 
B)  assortment provided by the marketing channel 
C)  add-on services provided by the channel 
D)  ability of a product to provide incremental value 
E)  degree to which the channel makes it easy for customers to purchase a product

Question 18

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning.

Accepted Answer

A)  demand chain 
B)  resource 
C)  external channel 
D)  materials 
E)  strategic business 
A)  demand chain 
B)  resource 
C)  external channel 
D)  materials 
E)  strategic business

Question 19

Which of the following channels is associated with the lowest cost per transaction?

Accepted Answer

A)  Internet 
B)  telemarketing 
C)  retail stores 
D)  distributor 
E)  sales force 
A)  Internet 
B)  telemarketing 
C)  retail stores 
D)  distributor 
E)  sales force

Question 20

________ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.

Accepted Answer

A)  Exclusive dealings 
B)  Mutual services 
C)  Territorial rights 
D)  Price policy 
E)  Tying agreements 
A)  Exclusive dealings 
B)  Mutual services 
C)  Territorial rights 
D)  Price policy 
E)  Tying agreements

Exam 17: Designing and Managing Integrated Marketing Channels

A direct marketing channel is a ________ channel.

Atronix Solutions is a major manufacturer of electronic measuring devices in the United States. The company often threatens to terminate its relationship with its intermediaries if they do not agree with its terms and conditions. What channel power does Atronix use? What are its effects?

A large retail chain in the United States decides to expand its operations by adding an online site for e-commerce. This is called a(n) ________ company.

Orion Airlines is an American airline that provides domestic and international air transport services. Explain the five service outputs provided by marketing channels with reference to Orion.

Advanced supply-distributor arrangements for administered vertical marketing systems do not rely on distribution programming.

A manufacturer is using reward power when it offers intermediaries an extra benefit for performing specific acts or functions.

Toyota has an advantage over Lexus due to the fact that there are more Toyota dealers, which helps customers save on transportation and search costs in buying and repairing an automobile. Which of the following service outputs relates to this competitive advantage?

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power.

A(n) ________ VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.

Door-to-door sales, home parties, mail order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores are examples of ________.

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.

STIHL, which manufactures handheld outdoor power equipment sold to six independent US distributors and six STIHL-owned marketing and distribution centers who sell to a nationwide network of more than 8,000 servicing retail detailers, is a good example of intensive distribution.

Identify the channel function that constitutes both backward and forward flow.

Intensive distribution relies on only some of the intermediaries willing to carry a particular product.

Price pressure will increase for undifferentiated products than differentiated products.

Which of the following activities is a reverse-flow channel of marketing?

As a service output produced by marketing channels, product variety refers to the ________.

Companies should first think about the target market and then design the supply chain backward from that point. This strategy is called ________ planning.

Which of the following channels is associated with the lowest cost per transaction?

________ call(s) for the producer to establish a schedule of discounts and allowances that intermediaries see as equitable and sufficient.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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