Question 1

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

Accepted Answer

A)  corporate 
B)  administered 
C)  contractual 
D)  regulatory 
E)  controlled 
A)  corporate 
B)  administered 
C)  contractual 
D)  regulatory 
E)  controlled

Question 2

A producer must modify its channel design and arrangements if ________.

Accepted Answer

A)  consumer buying patterns change 
B)  the competition in the market stabilizes 
C)  the product is in the growth stage of its life cycle 
D)  the market size remains unchanged for a particular period 
E)  the firm's profits stabilize 
A)  consumer buying patterns change 
B)  the competition in the market stabilizes 
C)  the product is in the growth stage of its life cycle 
D)  the market size remains unchanged for a particular period 
E)  the firm's profits stabilize

Question 3

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of ________ distribution.

Accepted Answer

A)  selective 
B)  intensive 
C)  exclusive 
D)  internal 
E)  passive 
A)  selective 
B)  intensive 
C)  exclusive 
D)  internal 
E)  passive

Question 4

The Norticon Group provides and manages computers and network systems for businesses and communities. Norticon sells its products through various means. It uses its sales force to sell to large customers and telemarketing to sell to smaller customers. The company also sells its products via the Internet. Briefly explain the marketing approach being used by the company.

Accepted Answer

The company is using hybrid channels or

Question 5

Using the push strategy is most appropriate when ________.

Accepted Answer

A)  consumers are able to perceive differences between brands 
B)  the product being sold is an impulse item 
C)  there is high brand loyalty for the product 
D)  the product is a high involvement purchase 
E)  consumers choose the brand before they go to the store 
A)  consumers are able to perceive differences between brands 
B)  the product being sold is an impulse item 
C)  there is high brand loyalty for the product 
D)  the product is a high involvement purchase 
E)  consumers choose the brand before they go to the store

Question 6

Which of the following problems is most likely when a company chooses to use a sales agency instead of company salespeople?

Accepted Answer

A)  The company will find it difficult to control the sales process. 
B)  They do not take title to goods or negotiate purchases or sales. 
C)  The value-added per sale is the lowest for sales agencies. 
D)  Agencies will pay less attention to customers who buy the most or in large volumes. 
E)  Sales agencies are often difficult to access due to strict contractual obligations. 
A)  The company will find it difficult to control the sales process. 
B)  They do not take title to goods or negotiate purchases or sales. 
C)  The value-added per sale is the lowest for sales agencies. 
D)  Agencies will pay less attention to customers who buy the most or in large volumes. 
E)  Sales agencies are often difficult to access due to strict contractual obligations.

Question 7

Selective distribution severely limits the number of intermediaries and is appropriate when the producer wants to maintain control over the service level and outputs offered by the resellers.

Accepted Answer

A) True 
 B)False

Question 8

Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners.

Accepted Answer

The company is using a zero-le

Question 9

A manufacturer obtains referent power when it has special knowledge that intermediaries value.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following channel conflict resolution techniques is used only if everything else proves ineffective?

Accepted Answer

A)  legal recourse 
B)  mediation 
C)  arbitration 
D)  co-optation 
E)  superordinate goals 
A)  legal recourse 
B)  mediation 
C)  arbitration 
D)  co-optation 
E)  superordinate goals

Question 11

A marketing channel overcomes the time, place, and possession gaps that separate goods and services from those who need or want them.

Accepted Answer

A) True 
 B)False

Question 12

A corporate vertical marketing system combines successive stages of production and distribution under single ownership.

Accepted Answer

A) True 
 B)False

Question 13

Members of a marketing channel perform three types of functions. Provide examples of these three functions in the context of a publishing company that publishes books and magazines.

Accepted Answer

The storage and movement of books from t

Question 14

Intensive distribution is becoming a mainstay for specialists looking for an edge in markets increasingly driven by price.

Accepted Answer

A) True 
 B)False

Question 15

All functions in a marketing channel use up scarce resources and can be shifted among channel members.

Accepted Answer

A) True 
 B)False

Question 16

The flow of materials to refurbish products for resale constitutes a reverse flow.

Accepted Answer

A) True 
 B)False

Question 17

Coercive and referent power are subjective and depend on the ability and willingness of parties to recognize them.

Accepted Answer

A) True 
 B)False

Question 18

After a company has chosen a channel system, it must select, train, motivate, and evaluate individual intermediaries for each channel.

Accepted Answer

A) True 
 B)False

Question 19

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

Accepted Answer

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

Question 20

Which of the following allows a firm to maintain control over service level and obtain more dedicated and knowledgeable selling?

Accepted Answer

A)  selective distribution 
B)  intensive distribution 
C)  push strategy 
D)  exclusive distribution 
E)  pull strategy 
A)  selective distribution 
B)  intensive distribution 
C)  push strategy 
D)  exclusive distribution 
E)  pull strategy

Exam 17: Designing and Managing Integrated Marketing Channels

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming.

A producer must modify its channel design and arrangements if ________.

Using the push strategy is most appropriate when ________.

Which of the following problems is most likely when a company chooses to use a sales agency instead of company salespeople?

Selective distribution severely limits the number of intermediaries and is appropriate when the producer wants to maintain control over the service level and outputs offered by the resellers.

Eureka Forbes, an Asian consumer appliances company, sells its vacuum cleaners through door-to door sales. This allows the company to obtain a high conversion ratio. Comment on the length of the channel in the case of Eureka Forbes' vacuum cleaners.

A manufacturer obtains referent power when it has special knowledge that intermediaries value.

Which of the following channel conflict resolution techniques is used only if everything else proves ineffective?

A marketing channel overcomes the time, place, and possession gaps that separate goods and services from those who need or want them.

A corporate vertical marketing system combines successive stages of production and distribution under single ownership.

Members of a marketing channel perform three types of functions. Provide examples of these three functions in the context of a publishing company that publishes books and magazines.

Intensive distribution is becoming a mainstay for specialists looking for an edge in markets increasingly driven by price.

All functions in a marketing channel use up scarce resources and can be shifted among channel members.

The flow of materials to refurbish products for resale constitutes a reverse flow.

Coercive and referent power are subjective and depend on the ability and willingness of parties to recognize them.

After a company has chosen a channel system, it must select, train, motivate, and evaluate individual intermediaries for each channel.

A manufacturer offers its intermediaries an extra benefit for performing a promotional activity. This is an example of the use of ________ power.

Which of the following allows a firm to maintain control over service level and obtain more dedicated and knowledgeable selling?

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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