Exam 15: Designing and Managing Marketing Channels and Value Networks

What is a vertical marketing system (VMS)? What are the various types VMSs?

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

Co-optation is an effort by one organization to win the support of the leaders of another by ________.

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

JSE Securities Exchange is the largest stock exchange in Asia.The JSE provides a market where securities can be traded freely under a regulated procedure.The company acts as an intermediary between the traders.JSE is an example of a(n)________.

Ravake is a manufacturer of high-end designer apparel.Competition in the apparel industry is very severe and the market is driven by price.What distribution strategy would be best suited to help Ravake obtain an edge over its competitors?

A group of entrepreneurs is planning to start a food processing company.Comment on the likely evolution of the company's marketing channels.

A franchisee owner is unsatisfied because the manufacturer provides more benefits to a wholesaler.This conflict is an example of a(n)________ conflict.

Asian Garder Inc.is a large-scale paint manufacturer and is known for its wide range of decorative paint products and industrial coatings.In addition to making paints,the company also owns and operates the retail stores which sell its products.This is an example of a(n)________ vertical marketing system.

Products such as heating and cooling systems are usually sold and maintained by the company or by franchised dealers.

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.

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.

Which marketing channel is associated with the highest value added per sale?

Dell computers is a manufacturer of computers.Dell accepts orders for computers online and ships the products to the customer.Depict the likely physical flow of materials in this case.

Broomer manufactures fashion apparel for women, men, and children. Its products are in high demand and apparel stores are more than willing to carry and sell Broomer's garments. The company recently introduced a new clothing line named “Inducer”, targeted at the youth. However, the new line is not well-received by the market, and sales fail to take off even three months after its launch -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.

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

A pull strategy is particularly appropriate when there is low brand loyalty in a category,brand choice is made in the store,the product is an impulse item,and product benefits are well understood.

________ channel conflict occurs between channel members at the same level.

Apple Inc. ,together with subsidiaries,designs,manufactures,and markets personal computers,mobile phones and media devices.It also sells software,services,and third-party digital content.Apple is a highly respected brand across the globe.What kind of channel power does this respect give Apple?

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